06-10-1991 Council Packet - Laserfiche WebLink

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fTT ]OHN E.CHAlR-'t-xN r- j.. '•, : ■ I- V ' . py Hp. P-rPLi"W0m ' ■,r. y 0 ;•■ 4p[ 'p:>\ §y V' 'i'"'m- j, ■w •” V'--. P -vV;v Boarx ) of H ennepin Count ':' C0MMis5icNERi> 2400 GOVER-NMENT center Minneapolis . Minnesota 354AT May 28, 1991 The Honorable Barbara A. Petersen Mayor of Orono P. 0. Box 66 Crystal Bay, Minnesota 55323 Dear Mayor Peterson: Governor Carlson is expected to approve an "optional" one-half cent be implemented at the county level to partially offset reductions in stace aids to local governments. This optional sales tax is to be implemented on a countv-wide basis, depending on the wishes of cities whose residents constitute a majority of the county's population. No city will be eligible to receive local government aids (LGA) if the county or the majority of the cities within the county fail to implement the local option sales tax. Within Hennepin County, cities are the primary beneficiaries of the local government and pronerty tax relief aids. Of the local government aid °»^iginally scheduled to be paid during 1991, cities were to receive ^84 2 million, and ^ County was to receive $33,500. Of the original Homestead and Agricultural Cr^it Aids (HACA) sheduled to be paid in 1991, cities within Hennepin Co^ty would have received $46 million and the County $29.2 million. Approximately 80 percent of the LGA and HACA distributed to non-school local governments in Hennepin County goes to its cities. Should Hennepin County and/c- a majority of its cities tail to enact the local option sales tax, those aids would have to be replaced with an increased property tax levy. Enclosed is Resolution 91-5-501, *vhich *^s adopted by the Hennepin County Board of Comnissioners on May 21, 1991. In this resolution, we request ^at city councils express their preference on the local option sales tax and forward a resolution to the County Board by June 11, 1991. The County imst approve or reject the one-half cent sales tax by July 1, 1991, in order .or it to take effect on January 1, 1992. If the city councils of cities in Hennepin uouncy representing a majority of the population of the County disagree with the County's position, they may, by August 1, 1991, overturn ^at decision. for the County's initial decision to reflect the wishes of the tna^ori^ of its cities, please inform us by resolution as to the wishes of your city by June 11. we look forward to working with you as efficiently as possible to resolve this issue in the best interests of the majority of our residents. ncerely, ^hn E. Derus, Chair [ennepin County Board of Commissioners Enclosure