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—I <br />i <br />¥ <br />I <br />f; <br />JV- <br />fe*E <br />t- <br />?■ <br />I <br />^h <br />t <br />f <br />f!'"f.- <br />i-. <br />itJ.: <br />/ — <br />To: <br />From: <br />Date: <br />Mayor Peterson and City Council <br />Mark E. Bernhardson, City Ad.Tinistrator <br />May 31, 1991 <br />91.3 <br />?% <br />0 % <br />Subject: Optional Sales Tax <br />%-o <br />Attachments - <br />A) Hennepin County Commission Chair Derus' Letter Dated <br />5/28/91 <br />B) State of Minnesota Letter Dated 5/30/91 <br />C) Association of Metropolitan Municipalities Information <br />Dated 5/28/91 <br />D) Draft Resolution <br />ISSUE - Determine if Council desires at this juncture to indicate <br />its support, if any, to the County Board relating to the half <br />cent optional sales tax. <br />INTRODUCTION - In the recently concluded Legislative Session, <br />part of the omnibus tax bill was an optional half cent sales tax <br />by County. Commencing July 1, 1991, a 6 1/2 cent sales tax will <br />go into effect State-wide and remain in effect until at least <br />December 31, 1991. <br />Each county has until July 1, 1991 to adopt a resolution as <br />to whether it desires that half cent to continue beyond December <br />31, 1991. The cities then have until August 1, 1991 to determine <br />whether they want to reverse the County's decision. If the <br />cities representing a majority of the population in the county <br />adopt resolutions reversing the County's decision, then it stands <br />reversed. <br />DISCUSSION - <br />The adoption on the local level of the half cent sales tax <br />would continue the City's access to what is entitled local <br />government trust fund. This "pot of money" which is now set <br />aside from the State's general budget is used to help fund among <br />others the following: <br />- Local government aids <br />- Homestead and agricultural credit <br />- Buy down other percentage on high-valued homes <br />- Selected county aids.