06-11-1991 Council Agenda - Laserfiche WebLink

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c(JG 6 Gz� 994074 Cea/ZCak 515 Little Canada Road, Little Canada, MN 55117 -1600 (612) 484 -2177 / FAX: (612) 484 -4538 MEMORANDUM TO: Mayor Hanson and Members of the-City Council FROM: Joel Hanson, City Administrator DATE: June 7, 1991 RE: S41es Tax Resolution MAYOR Raymond G. Hanson COUNCIL Beverly Scalze Bill Biesener Rick Collova Jim LaValle ADMINISTRATOR Joel R. Hanson Attached is information relative to the implementation of the "optional" 1/2 percent sales tax add on. The Ramsey County Board of Commissioners is asking for City input in making this decision. Based on the information I have received and reviewed, there is no option in imposing the sales tax if we are to be financially prudent. The tax increase must be imposed in order to collect various state aides. By not imposing the tax, aids would not be received and those monies could be made up by increasing levies which would be absorbed by property tax payers. It should also be noted that the 1/2 percent increase in the tax rate takes effect on July 1, 1991 irrespective of any position taken by the County Board. Therefore, if we do not participate, the money collected during this period will go into the pool to be distributed to those counties which do participate in the increase. Therefore, it is my recommendation that we adopt some form of the enclosed resolution endorsing the imposition of this increase in the sales tax rate. It should be noted that some communities contemplated modifying the language to communicate their opinion regarding the true nature of this "optional" tax. That type of modification should be done at the discretion of the Council. Please let me know of any comments or questions you may have regarding this matter prior to Tuesday's meeting. JRH:kpv Enclosures P'a'ge 41