City Council Resolution 2019-07CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
RESOLUTION 2019-07
IN SUPPORT OF UTILITY VALUATION REFORM
WHEREAS, the Monticello Nuclear Generating Plant (the "Facility") is located in
Monticello, MN (the "City"); and
WHEREAS, the current valuation of the energy producing equipment (the "Equipment")
of the Facility significantly contributes to the tax base of the City; and
WHEREAS, the valuation of this Equipment varies according to its upgrade and
depreciation schedule; and
WHEREAS, the Minnesota Legislature has recently considered legislation, such as a bill
introduced in 2015 as SF 1636, and later introduced in 2017 as HF 1985, that would change the
system by which the state assesses the value of the Facility, eliminate the personal property tax
on the Equipment, and replace it with a new method of determining market value based on
energy capacity, energy production, and spent nuclear fuel storage where relevant; and
WHEREAS, the proposed legislation provides a more stable tax base over time,
eliminating the volatility caused by the upgrade/depreciation cycle; and
WHEREAS, the legislation provides for an increase in value over time based on
increases in value tied to an inflationary adjustment (the "Inflationary Adjustment"); and
WHEREAS, the legislation provides for year-to-year stability by including a "rolling
average" of production value (the "Rolling Average"); and
WHEREAS, for those cities whose tax base decreases as a result of the new energy tax
base valuation, the state provides transition aid to hold local property taxpayers harmless; and
WHEREAS, the legislation includes transition aid to provide predictability and a smooth
transition in their tax base at the time of eventual plant retirement; and
THEREFORE BE IT RESOLVED, the Monticello City Council supports the proposed
legislation changing the process of valuing electric generating property, provided: (1) the
legislation continues to include inflationary adjustment, rolling average, or other similar
measures to stabilize and increase value over time; (2) the legislation includes Transition Aid
that will hold host communities and local property taxpayers harmless in the transition to the
new system; (3) the legislation includes aid that will provide a smooth transition for city
revenues and property tax payments at the time of plant retirement. Moreover, the City of
Monticello authorizes the Coalition of Utility Cities and that group's representatives at Flaherty
& Hood, PA, to represent the City in this matter and asks that the Investor Owned Utilities and
state policymakers work with them to achieve passage of this legislation.
ADOPTED, this 28th day of January, 2019, by the City Council of Monticello, Minnesota.
CITY OF MONTICELLO
BY:
Mayor Brian tumpf
ATTEST:
BY:
City A inistrator Jeff O'Neill