HomeMy WebLinkAbout[11a] Sales Tax ExtensionMEETING DATE:
AGENDA ITEM:
SUBMITTED BY:
Council Agenda Item 11 a
July 18, 2013
Administrator Reports — Sales Tax Extension
Administration
BOARD /COMMISSION /COMMITTEE RECOMMENDATION:
PREVIOUS COUNCIL ACTION: The City Council completed the appropriate actions to
establish the one -half percent sales which in 2005. The vote on the ballot allowed for
collection through 2018, but the legislative action did not end up with the same time frame.
BACKGROUND INFORMATION: There are several actions that must occur to authorize the
collection of the local option sales and use tax. First, the State must approve legislation to
authorize the tax. Second, the City Council of St. Cloud and each city involved must approve
that special legislation by resolution. That resolution then must be filed with the Secretary of
State. Third, the voters of each community must approve the imposition of the tax. Fourth, an
ordinance must be enacted by each city to enact the tax. Finally, the cities must enter into a
Joint Powers Agreement about the primary project(s) and the distribution of the tax.
The State has approved the tax, extending the ability to collect through 2023 with the
approval of the voters. Now, each city needs to adopt resolutions similar to the one
provided for your action herein. Cities must take this action before the next legislative
session begins.
The area cities will begin a discussion about the primary projects and the Joint Powers
Agreement at the Joint Cities Meeting on July 30th.
BUDGET /FISCAL IMPACT:
ATTACHMENTS: Resolution 2013 -028
REQUESTED COUNCIL ACTION: Authorize the Mayor and Administrator to execute Resolution
2013 -028 to approve a Special Law Authorizing a One -Half Percent Local Option Sales and Use
Tax for St. Cloud and the St. Cloud Area Cities of Sartell, Sauk Rapids, Waite Park, St. Joseph,
and St. Augusta
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CITY OF ST. JOSEPH
RESOLUTION NO. 2013 -028
Approving a Special Law Authorizing a One -Half Percent
Local Option sales and Use Tax for St. Cloud Area Cities
Whereas, the Cities of St. Cloud, Sartell, Sauk Rapids, Waite Park, St. Joseph, and St. Augusta
sought authority to impose a one -half percent sales and use tax to assist in funding projects of
regional significance within the communities; and
Whereas, Laws of Minnesota 2005, First Special Session chapter 3, article 5, section 37,
subdivision 2 and subdivision 3 authorize the cities to impose a sales and use tax for the purposes
set forth in that law; and
Whereas, the revenues collected must be used in accordance with the law and each city's voter
approval; and
Whereas, revenues collected under the law will first be used by a project(s) that is agreed upon by
each city, and
Whereas, use of surplus funds is limited to projects of regional significance, limited to: Regional
transportation improvements; Regional community facilities; and acquisition and improvement of
regional parkland and open space; and for debt service on bonds issued for these purposes, and
Whereas, the State Legislature during the 2013 Legislative Session amended Laws 2005, First
Special Session chapter 3, article 5, section 37, subdivision 3 and subdivision 4 to authorize
extension of the one -half percent sales and use tax through December 31, 2038, if approved by
voters of the city no later than November 17, 2017, and
Whereas, the special law is effective, for the city that approves it, the day after compliance by the
governing body of that city with Minnesota Statutes, Section 645.021, Subdivision 2 & 3 which
requires a resolution of approval of the special law by the governing body to be filed with the
Secretary of State, and,
Now therefore, it is hereby resolved by the Council of the City of St. Joseph, Minnesota:
That Laws of Minnesota 2005, First Special Session chapter 3, article 5, section 37 subdivision 3
and 4, as amended, authorizing extension of the one -half percent sales and use tax is approved.
Adopted by the St. Joseph City Council on , 2013
Rick Schultz, Mayor
Judy Weyrens, Administrator
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