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<br /> <br />METRO CITIES <br /> <br />Association of Metropolitan Municipalities <br /> <br />. <br /> <br />RECEIVal-- <br />MAY 0 " 2008 <br /> <br />April 29, 2008 <br /> <br />Ms. Mary Capra <br />1810 Fox Run <br />Centerville, MN 55038 <br /> <br />CENTERVILLE, MN <br /> <br />RE: Metro Sales Tax for Transit <br /> <br />Dear Mayor Capra, <br /> <br />We have been receiving many inquiries into how cities will be participating in the new ~~ sales <br />tax for transit in the metropolitan area. Many of the details surrounding the Grant Evaluation and <br />Ranking System (GEARS) board have yet to be determined but the following is a general outline <br />of how the process is moving ahead. <br /> <br />A comprehensive transportation bill was passed into law during the 2008 legislative session - HF <br />2800/ SF 2521. Contained in that bill was a provision for a ~ ~ metro sales tax. The choice to levy <br />that sales tax fell to the seven metropolitan counties - Anoka, Carver, Dakota, Hennepin, Ramsey, <br />Scott and Washington. To date five of the seven - Anoka, Dakota, Hennepin, Ramsey and <br />Washington Counties have voted to levy the tax dedicated for transit. The first day of collection <br />will be on July 1 st, 2008, with the counties not beginning to receive the proceeds of the tax until <br />September. The legislation also called for $30.8 million of the proceeds to be paid to the Met <br />Council to fund its operating deficit by June 30, 2009, a payment schedule of which will need to <br />be worked out. <br /> <br />. <br /> <br />The legislation called for a tiered system of committees, much like the T AB/T AC process at the <br />Metropolitan Council, to prioritize the estimated $100 million in annual revenue. The joint powers <br />board, made up of elected county officials will have the ultimate say on how and where the money <br />is spent. Working closely with the joint powers board will be the GEARS committee. This <br />committee will be made up of one county commissioner from each county and elected city <br />officials from participating counties. The GEARS board will be responsible for evaluating <br />applications and prioritizing projects to be funded by the joint powers board. <br /> <br />The city participation on the GEARS committee is based on population. For each participating <br />county one elected city official is guaranteed. For each increment of 400,000 persons in a <br />participating county, an additional city elected official will be placed on the GEARS board. Metro <br /> <br />. <br /> <br />145 University Ave W . St. Paul, MN 55103-2044 c Phone (651) 215-4000 III Fax (651) 281-1299 . www.ammI45.org <br /> <br />1~~~' <br />