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Washington County elections: Four cities seek a combined $100M bump in local sales taxes

By Mary Divine

Washington County elections: Four cities seek a combined $100M bump in local sales taxes

Voters in four Washington County cities will decide Nov. 5 whether they want to levy local sales taxes to pay for municipal projects ranging from parks to public safety improvements to a new public works building.

City officials say enacting a local-option sales tax is a way to capture some of the dollars spent by out-of-towners to help pay for needed improvements.

Local-option sales taxes apply to the same items and services as the general state sales tax. Items exempt from regular state sales tax also are exempt from the local-option sales tax including groceries, clothing, prescription and over-the-counter drugs, feminine-hygiene products and baby products. Each ballot question needs a majority of votes to prevail.

Here's a look at which cities have sales tax ballot questions and how they would use the money raised:

City officials in Cottage Grove are hoping voters will approve a 0.5% sales tax to help fund $36 million in improvements to Mississippi Dunes Reserve, Hamlet Park and the River Oaks Golf Course. Money from the local-option sales tax is expected to generate about $1.2 million a year, City Administrator Jennifer Levitt said.

A University of Minnesota Extension study predicted 31 percent of the money raised by the sales tax would be paid by nonresidents, Levitt said. Residents are expected to pay an additional $1.92 per month in sales tax.

"It's a great opportunity for us to bring these projects to the community faster, and the burden is shared by nonresidents," she said.

Each of the three projects will be a separate question on the ballot, but whether one passes or all three, taxpayers would see only a 0.5% increase, Levitt said. The Minnesota Legislature mandates that the projects be listed separately on the ballot. "You have to be project-specific," she said. "Since they are in three different locations, we had to list them separately."

The sales tax will expire when enough revenue has been raised to pay for the projects or 25 years, whichever comes first, Levitt said.

Question 1 covers a potential $17 million in improvements to Hamlet Park, which could include a new amphitheater, skateboard park, play equipment, sports complex, splash pad, park building and other updates.

Question 2 covers a potential $13 million in improvements at Mississippi Dunes Park. Improvements at the 33-acre site - once part of the Mississippi Dunes Golf Course - could include a year-round, four-season interpretive center, habitat restoration; a kayak, canoe and small-boat launch; outdoor educational spaces; walking and hiking trails, and a nature-themed playground.

"We're really excited about it," Levitt said. "We bought the land, and now we now want to actually be able to develop it."

Question 3 covers a potential $6 million in improvements at River Oaks Golf Course and Event Center. The improvements could include the construction of premier pickleball courts with event seating, indoor multi-sports simulators, a winter mountain biking course, upgrades to the building and patio, and a nine-hole putting green course. "We are looking to make that a year-round facility for our residents, so it's not just about golf," Levitt said.

Levitt said she expects the pickleball courts - which could be used for tournament play - to be a selling point. "We can't get enough pickleball in," she said.

City officials surveyed residents to determine what improvements were most desired. "We spent a lot of time engaging with our community re-imagining recreation," Levitt said. "These are the projects we narrowed it down to that had the highest interest."

If the measure passes, city officials would work on designs in 2025 and begin construction on elements of all three in 2026, she said.

Voters in Oakdale two years ago approved a 0.5% local sales tax to fund a $15 million expansion and renovation of the city's police station and a new $22 million public works facility. The sales tax was implemented on April 1, 2023, and will remain in place until 2048 or until the funds have been collected, whichever is sooner.

But city officials say that since the two construction projects were proposed, back in 2021, construction costs have risen significantly due to inflation.

Now, voters in Oakdale are being asked to vote on two questions related to the extension of the local sales tax to extend the sunset date by five years - from 2048 to 2053 - to raise an additional $9 million to close the funding gap.

The first question covers the $3 million that would be raised to cover the funding gap for the work at the police station; the second question covers the $6 million that would be raised to cover the funding gap for the new public works facility.

About half of the local sales tax collected in Oakdale comes from people outside of Oakdale who shop in the community, said City Administrator Christina Volkers.

If both questions are approved, the total funds raised would increase from $37 million to $46 million, she said.

Voters in Stillwater this fall will be asked to support a 0.5% sales tax on general purchases to pay for improvements at parks along the St. Croix River. If approved, the sales tax is expected to raise up to $6.2 million over a 10-year period starting next year, city officials said.

The tax would sunset once funds required for the projects are collected, or in 10 years, whichever occurs first.

If approved, about $3.1 million, or 50.4% percent, of the half-percent sales tax would come from nonresidents, according to a University of Minnesota Extension study on the city's sales tax statistics

The sales tax would help pay for projects along the city's riverfront including renovation of the Aiple house and construction of a parking lot at Lumberjack Landing Park, a new park north of downtown Stillwater; picnic shelter, turf, irrigation and signage at Bridgeview Park, a new park south of downtown Stillwater; and riverbank stabilization.

"These riverfront improvements provide more public access, amenities, public gathering and open space to ensure the river's scenic views can be responsibly used and preserved for generations," the ballot language states.

Woodbury voters are being asked this fall to support a 0.5% sales tax for up to 20 years to raise $50 million for the construction of an expanded public safety campus for EMS, police and fire services.

City officials have already approved the renovation plans, which includes a makeover of the city's current Public Safety Building, which was built in 1975, and the purchase of the nearby Washington County Service Center, built in 1986, to make room for a new fire station.

The campus expansion has already been approved, so a "no" vote would mean Woodbury officials "would need to fund renovation and construction of Woodbury's Public Safety Campus from other tax sources," according to city officials.

If the sales tax is approved, a shopper spending $100 on taxable goods in Woodbury would see their bill increase 50 cents, city officials said.

The tax may be imposed for only 20 years "unless terminated sooner if the City Council determines all costs have been paid," the ballot language states.

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