01-13-2014 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, January 13, 2014 7:00 o’clock p.m. _____________________________________________________________________________________ Page 6 of 17 (LMCD REPORT – ANDREW MCDERMOTT, REPRESENTATIVE, Continued) McMillan commented she understands the LMCD is working on the LMCC with televising their meetings. McDermott stated the LMCC has informed the LMCD that there will be an expense associated with taping each of their meetings as well as live streaming them. Levang asked if the LMCD would still be utilizing the Wayzata chambers. McDermott indicated they will be for at least the next year. PUBLIC COMMENTS Jerry Hertaus, State Representative, stated the MN Legislature will be convening again at the end of February in approximately 50 days. Hertaug stated he would encourage the members of the Orono City Council and public to contact him if they have concerns about any upcoming issues. Hertaus stated during the last session, one of the pieces of legislation that was passed affecting cities makes it easier for organized trash collection. It was also determined that the Metropolitan Council will be redistricted in years ending in three. The next redistricting will occur in 2023. In addition, there was legislation passed with regard to Metropolitan Council wastewater treatment services that gives cities the ability to have some deferment of the costs, which would also include interest. Hertaus stated he currently serves on the education finance, housing, and property tax committees. Hertaus stated some of the things that happened in this last legislative session resulted in a fair increase in taxes and spending, such as increasing the State’s investments in infrastructure and education. Hertaus noted there was approximately a 10 percent increase in all funds spending. Hertaus stated the generally reported $2 billion increase is just referring to the increase in general fund revenues, but what are typically not mentioned are all the extra fees and increases that were also passed for the all funds budget. In actuality there was a $6.12 billion dollar increase, with fees being raised on real estate license renewals as well as an increase for attorney, dentist and nursing licenses. A fourth tier of income tax bracket was created from 7.85 percent to 9.85 percent, which means that single filers over $145,000 will be subjected to that highest rate and married couples filing jointly with income over $250,000 will also be subject to that new rate. In addition, the MN Legislature passed new cigarette taxes, new gift taxes. Hertaus noted one of the provisions of that legislation was a claw back provision to allow the state to go back on inheritances for two years and tax some of that. Hertaus stated he has co-authored legislation that will be discussed this next session proposing to bring the Minnesota inheritance tax exemption into conformity with the federal exemption. Currently in Minnesota anything over $1 million is taxable and at the federal level it is $5 million.