HomeMy WebLinkAbout6.h. Resolution supporting a metro-wide sales tax proposal for transit�ROSEMOUI�*4T EXECUTIVE SUMMARY
CITY COUNCIL
City Council Regular Meeting: March 19, 2013
AGENDA ITEM: Resolution supporting a metro -wide sales
AGENDA SECTION:
tax proposal for transit
PREPARED BY: Dwight Johnson, City Administrator
AGENDA NO.
ATTACHMENTS: Proposed resolution; Letter from
APPROVED BY:
Regional Council of Mayors
RECOMMENDED ACTION: Motion to approve the attached resolution supporting a metro -
wide sales tax for transit purposes
BACKGROUND
Mayor Droste received the attached letter and resolution from the Regional Council of Mayors
recommending its adoption. The Regional Council of Mayors is a group of Mayors throughout the Twin
Cities metro area that meets regularly on topics of common interest. One ongoing area of interest is
regional economic development. The Regional Council of Mayors generally believes that ongoing
development of the region's transit systems by means of a dedicated funding source is very important for
future economic development, and encourages each local jurisdiction to support the proposal.
DISCUSSION
This item was discussed briefly at the March 13`" work session and council members present agreed that
the resolution should be presented for action at this meeting. The current proposal would add 0.25% to
the existing county transit sales tax rate of 0.25% for a total new sales tax rate of 0.50 %. However,
because the initial recommendation for a 0.25% increase was based on a much larger sales tax base that
included services, there is some discussion that the rate will be further increased to provide the same
revenue originally intended. The Governor recently dropped his plan to extend the sales tax to many
services.
RECOMMENDATION
If the Council agrees with the position of the Regional Council of Mayors, then a motion should be
approved to adopt the attached resolution supporting a metro -wide sales tax for transit purposes.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2013 -
RESOLUTION IN SUPPORT OF A
METROPOLITAN AREA DEDICATED TRANSIT SALES TAX
WHEREAS, the Seven County Metropolitan Area ( "Metro ") is the economic engine for the State
of Minnesota producing approximately 75% of the state's domestic gross product; and
WHEREAS, the Metro is expected to grow by approximately 600,000 people by 2030; and
WHEREAS, the Metro has been working diligently to grow, retain and attract jobs for our state
economy; and
WHEREAS, an effective and efficient transportation system is critical to be able to economically
compete with other regions in the country and to attract new companies and employees to our
Metro region; and
WHEREAS, an effective and efficient transit system relieves congestion for highway and roadway
users, attracts new economic investments, provides an essential mobility infrastructure for workers,
businesses and students; and
WHEREAS, approximately 79% of Minnesotans believe our state would benefit from having an
expanded and improved public transit system; and 65% of Minnesotans support an increase in the
Metro area sales tax to fund transit.
NOW, THEREFORE, THE CITY COUNCIL of the City of Rosemount does hereby
encourage all Minnesota legislators to support the passage of a bill providing for a Metro wide
increase in the sales tax in order to create a reliable and sufficient transit funding source that not
only keeps the Twin Cities Metropolitan Region highly competitive with other regions but helps
Minnesota create a world class transportation system that will allow our state to compete more
effectively on a global scale and reach our full economic development potential.
ADOPTED this 19th day of March, 2013 by the City Council of the City of Rosemount.
William H. Droste, Mayor
ATTEST:
Jeffrey A. May, Deputy City Clerk
J
M
Majority Leader Thomas Bakk
75 Rev. Dr. Martin Luther King Jr. Blvd.
Capitol, Room 226
St. Paul, MN 55155 -1606
Speaker Paul Thissen
463 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
Saint Paul, Minnesota 55155
RE: Proposed regional sales tax for transit
Dear Majority Leader Bakk and Speaker Thissen:
Please see the attached list of members of the Regional Council of Mayors who are in support of a sales
tax increase to support sustained investment to build out and operate the metropolitan region's transit
system as defined by the Governor's Transportation Finance Advisory Committee.
The Regional Council of Mayors was formed in 2005 and provides a non - partisan platform focused on
building action strategies to raise the region's overall economic competitiveness and quality of life.
The Regional Council of Mayors believes that the development of a competitive regional transit system
is key to our region's long -term economic competitiveness and vitality. The development of a complete
and multi -modal transit system is necessary for all of our communities to provide essential mobility,
relieve congestion, attract new investment, and create jobs for all Minnesotans.
We represent a diverse set of municipalities from across the region, each with its own character and
needs. Across that diversity, we understand that the health and prosperity of our communities is linked
to that of the region. By investing in our regional transit infrastructure, the Governor's plan will help
maintain our region's economic competitiveness and allow our towns and cities to thrive. Indeed, a
recent study by the Itasca Project, an organization led by some of the region's leading CEOs, confirms
the importance of investing in transit to the region's economy. It found that building out the region's
transit network would create a return on investment of between $6.5 and $13.9 billion, or between
7.8% and 20.9%x.
We believe the Governor's proposal represents an opportunity that our region cannot afford to pass up.
We urge you to join us in supporting that proposal to help fund the investments that our region needs
to thrive.
Cc: Representative Hornstein, Representative Erhardt, Senator Dibble