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Honorable Mayor and City Council Members July 21, 2023 Page 3 The Legislature could have chosen to provide that local sales tax could be approved at the local unit of government's general election, but choose not to do so. November 7, 2023 is the date of the school district for the Mounds View Public School District and is a "general election" for the public officials elected to the Mounds View Public School District. If all City of Mounds View voters are also included in the Mounds View School District elections, then November 7, 2023 is a "general election" date for all voters in the City of Mounds View. The legislative intent of Minn. Stat. 297.99 is unclear. The Legislature could have required an election approving a local sales tax only be held at the same time the City's general election is held, but did not do so. The Legislature could have provided additional guidance clarifying that in addition to the City's general election another eligible election is any general election in an event numbered year, but chose not to do so.5 One argument made in favor of only allowing local sales tax to be confirmed at a City's general election or an even -year general election is the difference in voter turnout. However, if maximum voter turnout were truly the reason for not allowing a city to approve a local sales tax at an odd -year election at which no city general election occurs then the Legislature should have only allowed even -year elections since voter turnout is generally high in even -numbered years regardless of whether a city election is held. However, if voter turnout is an issue considered when interpreting the statute or legislative intent, the City's argument is strengthened because the city is already holding a special election on November 7, 2023, to fill the open vacancy left in the Mayor's seat. IV. Risk If the City moves forward with an election in 2023 it could be challenged. While we believe that the interpretation discussed above is reasonable, the lack of clarity in the statute means that there remains a risk that a court will not agree. We were unable to locate any caselaw addressing this topic. Additionally, a couple of potential outcomes include: 1) Referendum is unsuccessful. 2) Referendum is successful but is challenged. a. City election is upheld. b. City election is voided. i. City must bring the approval back at the 2024 election. ii. City must re -obtain approval from the legislature. The Legislature has a current moratorium on issuing new sales tax legislation for two years. V. Process6 MMinnesota Statutes, section 205.10 & Minnesota Statutes, section 205.16 MU210\315\886618.v5