Laserfiche WebLink
The Minnesota Department of Revenue provides specific guidelines for components of the <br />resolution. Councils must adopt a specific resolution and submit to senate and house tax <br />chairs by January 31 along with supporting documentation. Staff also obtained resolutions <br />from Roseville and Maple Grove, both which have or will be implementing (if approved by <br />voters) local option sales tax. <br />Council can establish the high end ($33 Million) if they so choose, the state bonding covers <br />half of what is actually spent, thus, if the project comes in at $28 million, the state will provide <br />$14 million. If it comes higher, and the bonding request was only for $14 million, the city <br />covers the entire cost difference between $28 million and $33 million. <br />According to the Minnesota Department of Revenue searchable website, Mounds View has <br />just under $80 million of taxable sales (Calendar year 2020 most recent available). <br />(Attachment 2) <br />A '/2 percent sales tax would generate about $400,000 per year, a 1 % would generate <br />$800,000 per year and a 1.5% (maximum allowed) would generate $1.2 million based on the <br />2020 numbers. It is probable that the current sales tax numbers are higher than the 2020 <br />numbers. Staff will continue their research. <br />Director Beer provided funding needs, based on industry standard bond rates at 3%,for the <br />maximum bonding request of $16.5 million. To generate sufficient revenue for the <br />corresponding city share we would need to generate $1.1 million a year, thus; a 1.5% sales <br />tax. This would put the rate in Mounds View at 8.875% which is the current cap in statute. <br />(Attachments 3 & 4) <br />It is probable, that with receipt of more current numbers; the rate could be lowered. <br />NOTE — Attachment 5 is a general/one page summary of the project <br />Strategic Plan Strategy/Goal: <br />Diverse livable community <br />Financial Impact: <br />None for this resolution. <br />Recommendation: <br />Adopt resolutions 9684 and submit to Senate and House Tax Chairs by the January 31, 2023 <br />deadline. <br />Respectfully submitted, <br />Nyle Zikmund, City Administrator <br />