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HomeMy WebLinkAboutResolution No. 006-11 • RESOLUTION A RESOLUTION IN SUPPORT OF EXTENDING THE, OR IN THE ALTERNATIVE, REAUTHORIZING A, HALF CENT SALES AND USE TAX TO FUND CITY PROJECTS WHEREAS, the City of Rochester currently imposes a half cent sales and use tax under Minnesota Laws 1998, Chapter 389, Article 8, Section 43; WHEREAS, the City of Rochester Common Council will seek legislative authorization from the State of Minnesota Legislature to extend the duration and amount authorized for project improvements of the City of Rochester one-half percent sales and use tax currently in effect; and, WHEREAS, alternatively, the City of Rochester Common Council will seek legislative authorization from the State of Minnesota Legislature to reauthorize a one-half percent sales and use tax for the City of Rochester; and, WHEREAS, Minnesota Statutes Section 297A.99, subd. 2, states that, before a 00cal governing body requests legislative approval of a special law for a local sales tax, it must adopt a resolution indicating its approval of the tax and providing information on the proposed tax rate, the manner in which the tax revenues will be spent, the total tax revenue that will be raised before the tax expires and the estimated length of time the tax will be in effect. NOW, THEREFORE, BE IT RESOLVED by the City of Rochester Common Council that it requests that the Legislature extend the duration and approve an increase in the amount authorized in the 1998 City of Rochester sales and use tax currently in effect for project improvements and for the purposes listed below. BE IT FURTHER RESOLVED, that, alternatively, the City of Rochester Common Council requests that the Legislature reauthorize a one-half percent sales and use tax for the City of Rochester for the purposes listed below; and, BE IT FURTHER RESOLVED that the City of Rochester Common Council provides the following additional information as required by Minn. Stat. Section 297A.99, r subd. 2: 1. The proposed tax rate is to remain at one-half of one percent and an excise tax in the amount of$20.00 per vehicle purchased. 2. The total tax revenue to be raised from the extension of this sales and use tax is estimated to be $160,000,000 in project improvements with an estimated additional $45,344,076 million in cost of issuance, intere t thereon, and premium to retire the bonds for a total of$205,344,076. 3. The tax revenues will be used for five categories of improvements: Higher Education; Transportation, including airport, roadways and mass transit; Economic Development; Public Safety; and Regional/Community Facilities, with specific projects for each category as shown on the attached summary. 4. The estimated termination date of the City of Rochester sales and use tax would be extended from 2011 to 2029. PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF ROCHESTER, MINNESOTA, THIS RJ DA CT2 X 0 _, 2011. PRESIDENT OF SAID COMMON COUNCIL ATTEST: ITY CLERK APPROVED THIS 16�h DAY OF , 2011. MAYOR OF SAID CITY (Seal of the City of Rochester, Minnesota) Rest O\Support.SalesTaxl f