HomeMy WebLinkAboutResolution 9694RESOLUTION 9694
RESOLUTION SUPPORTING THE AUTHORITY TO IMPOSE A LOCAL SALES TAX
TO FUND SPECIFIC CAPITAL IMPROVEMENTS PROVIDING REGIONAL
BENEFIT, TO ESTABLISH THE DURATION OF THE TAX AND THE REVENUE TO
BE RAISED BY THE TAX, AND TO AUTHORIZE THE CITY TO ISSUE BONDS
SUPPORTED BY THE SALES TAX REVENUE
WHEREAS, the City of Mounds View has engaged community residents and businesses
regarding a regional youth/amateur sports & recreation expansion to our existing community
center to be funded by local sales tax:
Regional Youth/Amateur Sports and Recreation Venue: This project involves the
construction of 72,000 additional square feet to the city's existing Community Center.
The additional space includes three gymnasiums, supporting locker rooms, fitness
center, indoor play area, as well as meeting/office space and concession area. The
total cost of $33,000,000 includes planning, design, additional storm water and
parking infrastructure, building construction and related costs.
WHEREAS, the projects will result in benefits to both the residents and businesses of the City of
Mounds View and to non-resident visitors and businesses and documentation of the regional
significance of each project, including the share of the economic benefit to or use of each project
by persons residing, or businesses located, outside of the jurisdiction are set forth in the Case
Report prepared for this resolution and are incorporated herein by reference; and,
WHEREAS, the project is estimated to cost approximately $33,000,000; of which the city is
seeking $16.5 million from the State of Minnesota (bonding) and,
WHEREAS, the city estimates that a local sales tax of 1.5 (One and one-half) percent would
generate approximately $24 million over 20 years which is sufficient to cover the project costs
plus interest and other associated debt costs; and,
WHEREAS, funding the project with a local sales tax will most closely distribute the cost borne
by Mounds View taxpayers for supporting the Mounds View business community; and
WHEREAS, Minn. Stat. § 297A.99 authorizes the imposition of a general sales tax if permitted
by special law of the Minnesota Legislature; and
WHEREAS, the City of Mounds View agrees to comply with Minn. Stat. § 297A.99 relating to
the process of enacting, implementing, and collecting the local tax; and
WHEREAS, Minn. Stat. § 297A.99 requires the city to pass a resolution authorizing such a local
tax and to obtain Legislative approval prior to approval by the local voters to enact the local tax.
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NOW, THEREFORE, BE IT RESOLVED;
1. The Mounds View City Council supports the authority to impose a general local sales tax
of 1.5% for a period of the lesser of 20 years or the retirement of the debt (and all related
issuance and interest costs) to fund the aforementioned projects.
2. Upon approval of this resolution, the city will submit the adopted resolution and
documentation of regional significance to the chairs and ranking minority members of the
House and Senate Tax committees for approval and passage of a special law authorizing
the tax, by January 31 of the year that it is seeking the special law.
3. Upon Legislative approval and passage of the special law authorizing the tax, the city
will adopt a resolution accepting the new law, which will be filed with the local approval
certificate to the Office of the Secretary of State before the following Legislative session.
4. The city will put a detailed ballot question which includes separate questions for each
project on a general election ballot for local voter approval. This will be done within two
years of receiving legislative authority.
5. If one or more ballot questions pass, the city will also pass an ordinance imposing the tax
and notify the commissioner of Revenue at least 90 days before the first of the calendar
quarter that the tax will be imposed.
6. Upon completion of the aforementioned requirements, the local sales tax will commence
and run for a duration of 20 years or until a sum sufficient to fund the voter approved
projects, including related issuance and interest costs, is raised, whichever comes first.
Adopted this 231d Day of January, 2023
Al 4611, Mayor
ATTEST: c
Ny ZikrrfidKd, City Administrator
(SEAL)