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REQUEST FOR COUNCIL ACTION Date: February 28, 2011 Item No.: 12 . f 'a Department Approval- ACity Ian r Approval Item Description: Resolution Supporting Local Option Sales Tax =1L 11 2 At the January 24, 2011 City Council meeting, Roseville's legislative delegation suggested that 3 it may be a good time for Roseville to ask the Legislature for the authority to seek approval of a 4, local option sales tax for capital investments through a voter referendum. 5 Like most cities, Roseville has substantial capital investment needs. This is due, in part, to, the 6 economic downturn, minimal capital investment over the years, and the age of our City's "7 infrastructure. The City is facing two particular needs — investment in a new fire station and 8 investment in the parks system. 9 The City currently has three fire stations, each in substantial disrepair. A Fire Department 110 Building Facilities Needs Committee has evaluated the City's fire station needs and estimate that 11 it would cost about $,7.2 million to build a new fire station. 12 A Parks and Recreation Community Advisory Team conducted a community-wide assessment of 13 the City's parks and recreation. The planning committee engaged thousands of residents in 14, conversations and identified the wants and needs of the community. They estimate that it will 15 cost about $,89 million to meet those needs. 116 Roseville currently has a 7.125% sales tax. A half-cent sales tax increase would generate 1 7 approximately $,6.4 million year. The City would have to collect the tax for approximately 15 11 111",,'1�111 years to raise the $,96.2 million. 119 State Statute §297A.99 states "1before the governing body of a political subdivision requests 20 legislative approval of a special law for a local sales tax that is administered under this section, it 2 1 shall adopt a resolution indicating its approval of the tax. The resolution must include, at a 22 minimum, information on the proposed tax rate, how the revenues will be used, the total revenue 23 that will be raised before the tax expires, and the estimated length of time that the tax will be in 24, effect 25 POLICY OBJECTIVE 26 To effectively fund the needs of the community. � I WMI TOG UI 0 Eff W., XW_ 28 Depending upon timing of referendum - election costs associated with an odd year election. The 29 two schools districts in Roseville will hold elections in November, so if the City conducted the 3o referendum in conjunction with the school district elections, the City's share of the costs would 3 i be minimal. Page I of 2