6.3. SR 03-06-2006
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
En ineerin March 6, 2006
Item Description
Resolution Supporting Passage of Proposed Amendment to the
Minnesota Constitution Dedicating All of the Motor Vehicle
Sales Tax Revenue to Trans ortation
Introduction
The 2005 State Legislature approved a ballot initiative to require all of the motor vehicle sales tax to be
used for transportation.
Discussion
The ballot initiative will ask if all of the motor vehicle sales tax should be used for transportation with at
least 40% of the revenue for public transit assistance and not more than 60% of the revenue for highway
purposes. The League of Minnesota Gties, the Association of Metropolitan Gties, and the Municipal
Legislative Commission all support an improved revenue collection system that would allow more
financial support for highway, bridge, and transit funding. This resolution would encourage voter
approval of the constitutional change.
Financial Impact
It is estimated that if this ballot initiative is passed, when fully implemented in 2011 the Gty of Elk River
could see an increase of approximately $100,000 annually in their Municipal State Aid allotment. This
would represent an approximate 13% increase over the 2006 allotment.
Attachments
. Resolution Supporting Passage of the Proposed Amendment to the Minnesota Constitution
Dedicating All of the Motor Vehicle Sales Tax Revenue to Transportation
Action Requested
Consider adoption of the attached resolution supporting passage of the ballot initiative requiring all
motor vehicle sales tax to be used for transportation.
Council Action
Motion by _
Second by _
Vote
Follow Up
S:\Engineer\2006 a; memos\MN Olnsitution Amend.doc
RESOLUTION 06-_
A RESOLUTION OF THE CITY OF ELK RIVER
A RESOLUTION SUPPORTING PASSAGE OF THE PROPOSED AMENDMENT
TO THE MINNESOTA CONSTITUTION DEDICATING ALL OF THE MOTOR
VEHICLE SALES TAX REVENUE TO TRANSPORTATION WITH AT LEAST 40
PERCENT OF THE REVENUE FOR PUBLIC TRANSIT ASSISTANCE AND NOT
MORE THAN 60 PERCENT OF THE REVENUE FOR HIGHWAY PURPOSES
WHEREAS, Minnesota's transportation infrastructure fonns the backbone of the state's economy
and has a direct impact on future economic development; and
WHEREAS, too many Minnesotans are being killed in traffic crashes on dangerous roadways; and
WHEREAS, funding for highway and transit systems in Minnesota has remained stagnant and is
failing to keep pace with growing population and growing demands; and
WHEREAS, local governments throughout the state are struggling to maintain local transportation
systems while the state's gas tax has not been increased since 1988 and transit budgets have been cut
in recent years; and
WHEREAS, the Minnesota Legislature has repeatedly turned to revenue from the motor vehicle
sales tax, which has been viewed as a user fee revenue, in order to fund both highway and transit
systems including the current dedication of 54 percent of motor vehicle sales tax for transportation
pwposes; and
WHEREAS, the legislature passed a proposed constitutional amendment during the 2005
Legislative Session that would appear on the ballot November 7, 2006 asking voters IF the
remaining 46 percent of motor vehicle sales tax revenue currently used for other purposes should be
used for highways and transit systems, and
WHEREAS, passage of this amendment would mean an increase in stable revenue for highway and
transit systems throughout the state that would rise to approximately $300 million per year once the
transfer of revenue is fully phased in by2011.
NOW, THEREFORE, BE IT RESOLVED, by the Gtyo:>uncil of the Gtyof Elk River,
Minnesota, strongly supports passage of the proposed amendment to the Minnesota O:>nstitution
dedicating all of the motor vehicle sales tax revenue to transportation with at least 40 percent of the
revenue for public transit assistance and not more than 60 percent of the revenue for highway
purposes.
Passed and adopted this 6th day of March, 2006.
Stephanie A Klinzing, Mayor
ATTEST:
Joan M. Schmidt, Gty Oerk
S:\Engineer\Resolutions\MN Const Amend for Funding.doc