Councilors Talk City Aid, Sales Taxes With Legislators

Saint Paul came to the Northfield City Hall on Tuesday night as councilors discussed with Northfield's representatives about Local Government Aid and potential bonding for the planned .

LGA was the foremost item discussed. Northfield gets about $2.3 million in LGA funding each year but, in response to likely cuts from the state, has planned to phase it out within four years, said Mayor Mary Rossing.

State Sen. Al DeKruif (R-Madison Lake) applauded that policy, joined by State Rep. Kelby Woodard (R-Belle Plaine), who represents the bulk of Northfield at the state Legislature, as well as State Sen. Dave Thompson, who represents the northern edge of the city in Dakota County.

"I really compliment you on facing that reality," Thompson (R-Lakeville) said.

The Republican-controlled legislature voted last month to freeze LGA funding at 2010 levels in a bill that was vetoed by Gov. Mark Dayton. Woodard said while LGA would not be gutted, the city would be wise to keep on its current path of budgeting out the funding.

"Plan for it to go away and you'll be pleasantly surprised," he said.

Councilors and legislators also found common ground on exempting the city from paying sales taxes to the state.

City Finance Director Kathleen McBride said that the city pays about $250,000 in state sales taxes, which Woodard called unacceptable. DeKruif said he has signed off on supporting a bill——that would exempt local governments from paying sales taxes except for areas like liquor stores and golf courses, where municipal businesses might get an unfair advantage from tax exemption.

Legislators expressed little appetite for supporting bonding funds to help pay for a planned safety center.

That project met a stumbling block in the meeting afterward when councilors voted 5-2 against the planning of a bond sale to finance the project; they will take up a spate of alternative options at a work session mid-month. The $10.9 million building was approved in November.

IN OTHER NEWS

• Councilors also requested the removal of a gag order on planning for a far-off Dan Patch rail line. The corridor, which would connect Northfield to Minneapolis over existing rail running through suburbs including Lakeville, Edina and Bloomington was halted in 2002 and blocked from removal in in the 2008 legislative session. The legislators said they were largely unfamiliar with the issue but expressed support for allowing discussion on the project’s future.

• Councilors approved a $60,000 forgivable loan to the the Northfield Historical Society for its "Taking it to the Next Level" renovation campaign.

• Tim Madigan was approved as the full-time administrator.