Choices for Change: A Guide to Local Government Cooperation and Restructuring in Minnesota

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How to Begin

Deciding whether a city, township, group of residents, or a resident should pursue one option over another is not always a clear or straightforward job. A careful look at the economics and politics of a community and its surrounding area is necessary before starting any type of agreement or restructuring initiative.

For example, a city and township whose governments do not have a friendly relationship may have a hard time keeping annexation discussions on track. Such arrangements are possible, but may take a lot of patience, compromise, and diplomacy.

By the same token, a city and township that do not see each other as a threat and share compatible visions of growth may easily reach agreement on development and environmental needs, as well as service-sharing contracts.

To begin pursuing any of these agreements, it is important to think about any sensitive issues that might stop a city, township, or group of residents from achieving a cooperative arrangement or government or boundary restructuring. Anticipate problems before they begin.

Questions to Answer

The following is a list of questions that should be answered as completely as possible before or during the early stages of restructuring a boundary or sharing responsibility for services. In fact, it may be helpful to know the answers before suggesting publicly that a change be started or even studied.

These questions will help communities and individuals define their needs, collect necessary information, and decide whether the change is politically, economically, and environmentally suitable. The questions may also identify appropriate options for particular situations.

These questions can be answered without hiring outside consultants. However, they will take research, effort, and time. The answers will help you decide whether or not restructuring or cooperation is the best idea, and identify potential supporters and critics. Eventually, professionals may be required for legal, engineering, environmental, and other technical advice.

Q.     What are the specific reasons for pursuing an intergovernmental cooperative arrangement or boundary restructuring?

• Financial: Lower taxes? More efficient use of tax dollars? Expand tax base?
• Extended services: Need for sewer or water services? Need for police and fire protection?
• Expand or secure development: New development requires both land and services? Room for existing firms to expand?
• Regional development: Would the area as a whole benefit from more comprehensive planning and decision making?

• Previous research within the community about this or a similar question: What did an existing study on the role of annexation in furthering city development objectives find?

  Complete and full answers to these questions will help you: Define your needs Collect necessary information Decide whether the change is politically, economically, and environmentally suitable. Identify potential supporters and critics Identify appropriate options

• Similar agreements for other types of shared services: Would an agreement on fire protection serve as a good example for a cooperative arrangement on police protection?
• Experience of other communities with similar concerns and community makeup: What benefits and problems did other cities experience as a result of their consolidation? How did annexation affect a township's development and a city's expenditures on services? How much money have a city and township saved as a result of their police and fire protection cooperative agreement?

• Tax base: How would our township's tax base and annual collections be affected by annexation of my neighbors' and my property to the city?
• State aids: Would the population increase enough under annexation or consolidation to qualify the city for state highway assistance? Would the population increase or reduce some forms of state aid?
• Licensing fees and fines: How much revenue can the township expect from licensing and other fees if it incorporates?
• County revenues: How would a township incorporation affect county revenues?

• Residents: Do they desire services currently not provided? Do they feel overburdened by local taxes?
• City officials: Would they significantly expand the city's tax base through this annexation?
• Township officials: Would the township gain significant resources through a detachment?
• Local business: Would a change result in lower taxes or better services? Could the change bring more traffic to the area, thus helping retail businesses? How would insurance rates be affected?
• County officials: Is the change in line with county development objectives?

• Residents: Will sharing services with a neighboring city save tax dollars but seriously limit services? Will there be an increase in the level of services and taxes? Will consolidation or annexation destroy the small town community spirit of the city?
• City officials: Will they lose power as a result of a service-sharing agreement, consolidation, annexation, or detachment? Will they feel the city's growth potential is seriously restricted by an incorporation of a surrounding township?
• Township officials: How much of the township's tax base will be lost as a result of the change?
• Local businesses: Will the intergovernmental agreement make services less reliable?

• Legal fees: How much time does a lawyer need to draw up a service agreement? Can it be accomplished in-house?
• Consultant fees: How much have cities of a similar size and makeup paid for consolidation or annexation studies? How have those costs been minimized?
• Administrative costs: How much of the city administrator or town clerk's time will working on such an agreement take? What are the likely ongoing costs of administering and monitoring contracts?
• Volunteers: Do you have a pool of volunteers with the skills and time to conduct a study?

Sample Situations and Possible Options

The following are examples of problems a community, resident, group of residents, city council, or town board might have, or a situation they may wish to change. Each is followed by diagrams of options that might address the problem. The diagrams point to the sections of this guidebook that discuss those situations.

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