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CITY OF LITTLE CANADA <br />RESOLUTION NO. 2006 -2- <br />A RESOLUTION SUPPORTING THE CONSTITUTIONAL AMENDMENT FOR <br />MOTOR VEHICLE SALES TAX DEDICATION TO TRANSPORTATION <br />WHEREAS, the City Council of the City of Little Canada is the official governing body <br />of the City of Little Canada; and <br />WHEREAS, Minnesota's transportation infrastructure forms the backbone of the State's <br />economy and has a direct impact on future economic development; and <br />WHEREAS, funding for highway and transit systems in Minnesota has remained <br />stagnant and is failing to keep pace with its growing population and growing demands; <br />and <br />WHEREAS, local governments throughout the State struggle to maintain local <br />transportation systems while the State's gas tax has not been increased since 1988 and <br />transit budgets have been cut in recent years; and <br />WHEREAS, the Minnesota Legislature has repeatedly turned to revenue from the motor <br />vehicle sales tax, which has been viewed as user fee revenue, in order to fund highway <br />and transit systems including the current dedication of 54% of motor vehicle sales tax for <br />transportation purposes; and <br />WHEREAS, the Legislature passed a proposed constitutional amendment during the <br />2005 Legislative Session that would appear on the November 7, 2006 ballot asking voters <br />if the remaining 46% of motor vehicle sales tax revenue currently used for other purposes <br />should be used for highways and transit systems; and <br />WHEREAS, passage of this amendment would mean an increase in more stable revenue <br />for highway and transit systems throughout the State and would raise approximately $300 <br />million per year once the transfer of revenue is fully phased in by 2011. <br />NOW, THEREFORE, BE IT RESOLVED, that the City of Little Canada strongly <br />supports passage of the proposed amendment to the Minnesota Constitution dedicating all <br />of the motor vehicle sales tax revenue to transportation with at least 40% of the revenue <br />for public transit assistance and not more then 60% of the revenue for highway purposes. <br />Passed and adopted this 8th day of March, 2006. <br />ATTEST: <br />Joel Hanson, City Administrator <br />William.Blesener, Mayor <br />3 <br />