2020_0427_CCPacket - Laserfiche WebLink

Home

REQUEST FOR COUNCIL ACTION Date:January 10, 2022 Item No.: 7.c Department Approval City Manager Approval Item Description: Local Option Sales Tax Discussion 1 B ACKGROUND 2 At itsOctober 25, 2021 meeting, the City Council adopted its 2022 Legislative Priorities which 3 included pursuing approval of a local option sales tax for Roseville with the Minnesota Legislature. 4 (Attachment A). At this point, it is planned to ask the Legislature for a 0.5% local sales tax to fund 5 regional transportation infrastructure, including roadway and pedestrian facility improvements. 6 7 On December 6, 2021, the City Council authorized the hiring of SRF Consultants and the 8 Transportation Collaborative and Consultants (TC2) to prepare a proposal for the development the 9 transportation infrastructure. A preliminary cost estimate of the improvements isup to$76.4 10 million. A preliminary report of the consultant’s findings to-date is included as Attachment B. 11 According the Minnesota Department of Revenue, it is estimated that a 0.5% sales tax in Roseville 12 will generate $5.4 million annually. It will take approximately 15years to pay for the transportation 13 infrastructure costs. 14 For your information, Attachment C shows a listing of the local sales tax rates within the Twin Cities 15 metro area and selected cities in Minnesota. 16 As a refresher, the sales tax approval process at the Legislature is as follows: 17 1. City must pass a resolution that includes: 18 a. Proposed tax rate 19 b. Detailed description of up to five capital projects to be funded with the tax 20 c. Documentation of how each project will provide an economic benefit to residents, 21 businesses, and visitors from outside their jurisdiction 22 d. Amount of revenue to be raised for each project and the estimated time needed to 23 raise funds 24 e. Total amount of revenue to be raised for all projects 25 f.Estimated length of time the tax will be in effect if all proposed projects are approved 26 2. City must submit the approved resolution and supporting documentation to the senate and 27 house tax committee chairs by January 31 28 3. Once legislative approval is given, the City shall revise and reaffirm its resolution. The 29 resolution must be passed at least 90 days before a general election 30 4. The City shall hold a referendum vote at a general election within two years of legislative 31 approval. If there are multiple projects, each project must have a separate question for 32 approval 33 5. If sales tax referendum is approved, the City shall create and pass an ordinance imposing the 34 tax Page 1 of 2