8.4. SR 07-16-2018 City of
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To Item Number
Mayor and City Council 8.4
Agenda Section Meeting Date Prepared by
General Business July 16, 2018 Tina Allard, City Clerk
Item Description Reviewed by
Resolution: Local Option Sales Tax Referendum Cal Portner, City Administrator
Reviewed by
Action Requested
Adopt,by motion, a resolution relating to imposition of a sales and use tax and the issuance of bonds for
purposes of making$35,000,000 in certain park improvements and recreational facility improvements; or
Adopt,by motion, a resolution relating to imposition of a sales and use tax and the issuance of bonds for
purposes of making$25,000,000 in certain park improvements and recreational facility improvements
Background/Discussion
As Council is aware, the city has many facilities in substantial disrepair with minimal capital investment in
them over the years. Further, after many community meetings over the last four years, the city has
identified several needs and wants for our park system.
The Council,via a Sales Tax Study and Council-led Listening Sessions,identified the implementation of a
0.5% sales tax as the best means to pay for the needed infrastructure and most accepted by community
members.
Per Minnesota State Statute §297A.99,before Council can request special legislation approval of a special
law for implementation of a local sales tax, the Council must adopt a resolution indicating its approval of
a sales tax. The resolution must include information on the proposed tax rate,how the revenues will be
used, the total tax revenue that will be raised before the tax expires, and the estimated length of time the
tax will be in effect.
Financial Impact
N/A
Attachments
■ Resolution for$35,000,000 Local Option Sales Tax Referendum
■ Resolution for$25,000,000 Local Option Sales Tax Referendum
The Elk River Vision
A PehoMing community Pitb revolutionary and spirited resourcefulness, exceptional P,`01 W E H E 8 6 T
service, and community engagement that encourages and inspires prosperity INAWRE1
City of
Elk City of Elk River
Wver City Council
Resolution 18-
A Resolution of the City Council of the City of Elk River Relating to the
Imposition of a Sales and Use Tax and the Issuance of Bonds for Purposes of
Certain Park Improvements and Recreational Facility Improvements
WHEREAS, Minnesota Statutes, Section 297A.99 (the "Local Tax Act"),provides the City
of Elk River (the "City") with authority to impose a local sales tax if the tax is approved by
voters at a general election and the state legislature approves the local sale tax through
creation of a special law; and
WHEREAS, the Local Tax Act also requires the City Council (the "Council") of the city
adopt a resolution indicating its approval of the tax and outlining the details of the proposed
local sales tax; and
WHEREAS, the City is a regional center for employment,retail trade, and recreational
opportunities as determined by a 2018 University of Minnesota Extension Service Sales Tax
Study; and
WHEREAS, the age of city infrastructure has led to the City needing substantial capital
investment in its parks and recreational facilities in order to maintain current and future uses;
and
WHEREAS, numerous meetings were held over the last four years to identify community
needs via the Arena Design Team (Recreational Facility Improvements),Multipurpose
Facility Task Force, the Parks and Recreation Commission (Master Park Planning),The Elk
River Ice Arena Commission, and the Elk River City Council, (Listening Sessions); and
WHEREAS, through these outreach efforts and master planning processes the City
Council has identified the need to make certain park improvements and recreational facility
improvements; and
WHEREAS, through the University of Minnesota Extension Service Sales Tax Study the
Council has determined a local option sales and use tax could generate revenue and is the
fairest way to cover the needed expenditures to repair and expand city parks and recreational
facilities.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, NATUREJ
1. To facilitate strategic investment in the region and community, the City proposes to
submit to electors the question of whether to impose a local sales and use tax of one-half of
one percent (0.5%) on items that are taxable by the State of Minnesota in order to raise
revenue of$35,000,000 to fund the acquisition and betterment of Recreational Facility
Improvements and certain park improvements,including the senior activity services,Lake
Orono dredging, trails, Lake Orono Park improvements, and Youth Athletic Complex
improvements as identified in park master plans.
The question of imposing the taxes shall be submitted to the qualified electors of the City as
city ballot question.
2. The tax would expire at the earlier of(1) 25 years after the tax is first imposed, or (2) when
the City Council determines that the amount of revenues received from the taxes to finance
the improvement equals or exceed $35,000,000,plus the additional amount needed to pay
the costs related to the issuance of the bonds,including interest on the bonds.
3. The Council further finds it is in the best interest of the health,welfare, and safety of the
City and its residents and it is necessary and expedient to the sound financial management of
the affairs of the City that the acquisition and betterment of the facilities identified in Section
1 hereof, or any part thereof,be financed in whole or in part by the issuance and sale of the
City's general obligation bonds pursuant to Minnesota Statutes, Chapter 475, as amended
(the "Bond Act") in one or more series in an aggregate principal amount not to exceed
$35,000,000 plus an amount equal to interest and the costs of the issuance of any bonds.
Passed and adopted this 161h day of July 2018.
John J. Dietz,Mayor
ATTEST:
Tina Allard, City NATUREJ
City of
Elk City of Elk River
Wver City Council
Resolution 18-
A Resolution of the City Council of the City of Elk River Relating to the
Imposition of a Sales and Use Tax and the Issuance of Bonds for Purposes of
Certain Park Improvements and Recreational Facility Improvements
WHEREAS, Minnesota Statutes, Section 297A.99 (the "Local Tax Act"),provides the City
of Elk River (the "City") with authority to impose a local sales tax if the tax is approved by
voters at a general election and the state legislature approves the local sale tax through
creation of a special law; and
WHEREAS, the Local Tax Act also requires the City Council (the "Council") of the city
adopt a resolution indicating its approval of the tax and outlining the details of the proposed
local sales tax; and
WHEREAS, the City is a regional center for employment,retail trade, and recreational
opportunities as determined by a 2018 University of Minnesota Extension Service Sales Tax
Study; and
WHEREAS, the age of city infrastructure has led to the City needing substantial capital
investment in its parks and recreational facilities in order to maintain current and future uses;
and
WHEREAS, numerous meetings were held over the last four years to identify community
needs via the Arena Design Team (Recreational Facility Improvements),Multipurpose
Facility Task Force, the Parks and Recreation Commission (Master Park Planning),The Elk
River Ice Arena Commission, and the Elk River City Council, (Listening Sessions); and
WHEREAS, through these outreach efforts and master planning processes the City
Council has identified the need to make certain park improvements and recreational facility
improvements; and
WHEREAS, through the University of Minnesota Extension Service Sales Tax Study the
Council has determined a local option sales and use tax could generate revenue and is the
fairest way to cover the needed expenditures to repair and expand city parks and recreational
facilities.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, NATUREJ
1. To facilitate strategic investment in the region and community, the City proposes to
submit to electors the question of whether to impose a local sales and use tax of one-half of
one percent (0.5%) on items that are taxable by the State of Minnesota in order to raise
revenue of$25,000,000 to fund the acquisition and betterment of Recreational Facility
Improvements and certain park improvements,including the senior activity services,Lake
Orono dredging, trails, Lake Orono Park improvements, and Youth Athletic Complex
improvements as identified in park master plans.
The question of imposing the taxes shall be submitted to the qualified electors of the City as
city ballot question.
2. The tax would expire at the earlier of(1) 25 years after the tax is first imposed, or (2) when
the City Council determines that the amount of revenues received from the taxes to finance
the improvement equals or exceed $25,000,000,plus the additional amount needed to pay
the costs related to the issuance of the bonds,including interest on the bonds.
3. The Council further finds it is in the best interest of the health,welfare, and safety of the
City and its residents and it is necessary and expedient to the sound financial management of
the affairs of the City that the acquisition and betterment of the facilities identified in Section
1 hereof, or any part thereof,be financed in whole or in part by the issuance and sale of the
City's general obligation bonds pursuant to Minnesota Statutes, Chapter 475, as amended
(the "Bond Act") in one or more series in an aggregate principal amount not to exceed
$25,000,000 plus an amount equal to interest and the costs of the issuance of any bonds.
Passed and adopted this 161h day of July 2018.
John J. Dietz,Mayor
ATTEST:
Tina Allard, City NATUREJ