Mark your calendars.
Almost a year to the day after the last vote on a sales tax hike, Grand Forks will head to the polls once again-this time, to vote on a more modest increase, but one city leaders still say is sorely needed for local streets and water projects.
The Grand Forks City Council unanimously approved both a Nov. 7 date for the election as well as a resolution outlining the proposal's particulars. If approved, the local sales tax would increase by 0.5 percent, last for 20 years, and include a purchase cap of $2,500-- like the rest of the local sales tax in place. Budget projections indicate it would generate $5 million annually for street construction and repair as well as water projects-like the new water treatment plant currently under construction on the west side of the city.
The result would be a local sales tax of 2.25 percent, which complements a state sales tax of 5 percent.
City Finance Director Maureen Storstad noted that the council still needs to set voting locations and approve final ballot language.
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Setting the vote is the culmination of a monthslong push championed by Mayor Mike Brown to get a sales tax proposal back to voters as soon as possible. State aid to the city has lagged in recent years amid a sluggish regional economy, and Brown-and other leaders-have argued that the city's well-being lies in self-reliance.
"We're burning daylight, as Gil Favor used to say on 'Rawhide,' because we're burning money," Brown quipped in June.
It's unclear if his pitch will succeed. The last sales tax vote, which came on Nov. 8, saw a proposal to hike the local tax .75 percent for 50 years go down after it only garnered 44 percent of the vote. Though City Council member Jeannie Mock voted in favor of Monday evening's resolution and polling date, she has previously worried about going back to the polls so soon after the last proposal failed.
Will the city have the political capital for another vote, she's wondered?
City Council member Ken Vein pointed out that this sales tax, besides lasting for less time and raising less revenue, is also only for streets and water projects-not a large capital road project like an Interstate-29 interchange.
"I think my pitch so far is we did have an election earlier that failed. We listened to the voters, listened to some information that came from the Chamber and made some fairly significant changes to it," Vein said.
Mayor's budget
The Council also heard a presentation on the mayor's budget, though they did not take action on Monday. A preliminary vote is expected on Aug. 28, and final approval on Sept. 18.
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The plan would shift the general fund budget, which pays for the city's main services, from this year's level of $38.6 million up to $38.9 million. The mill levy would stay the same, but is projected to collect more money for next year's entire budget, which extends beyond the general fund-moving up from $20.8 million to $21.8 million.
