02-07-2006 Special City Council Minutes

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SPECIAL MEETING OF THE PEQUOT LAKES CITY COUNCIL TUESDAY, FEBRUARY 7, 2006 PEQUOT LAKES CITY HALL Members Present: Mayor C. Malecha, Council Members Bolz-Andolshek, Sjoblad, Pfeiffer, and Ryan Members Absent: Council Members Greer and Nagel Staff Present: Sandra Peine, City Clerk; Tim Houle, City Engineer Also Present: Senator Carrie Ruud 1. Discussion on Local Option Sales Tax Mayor Malecha noted that the purpose of this meeting is to discuss the possibility of going to the voters and legislature with a request to implement a local option sales tax of 0.5%. She indicated that the money would be used to fund the City's portion of the Highway 371 improvements. The City's portion of funding is estimated at $7,000,000. The Mayor noted that a great portion of the sales comes from tourists. The Mayor reviewed statistical data that had been compiled regarding sales tax. Mark Jurchen, resident and representative of PLADO, indicated that he had a letter of support of the sales tax from PLADO. Council Member Ryan indicated that a sales tax places a higher burden on the local residents. Mayor Malecha indicated that the cities of Baxter, Brainerd, and Nisswa will also be requesting special legislation to implement the sales tax. Terry Curtis, representing PLADO indicated that he is in favor of the tax if it is a county-wide, or regional tax and not just a tax for Pequot Lakes residents. Council Member Bolz-Andolshek indicated that if the residents will have the final say in this through a vote and vote in favor, he would also be in favor of the sales tax. Council Member Sjoblad stated that according to the study done in Baxter and the information Mayor Malecha compiled, a resident would pay a much higher increase in real estate taxes than in the cost for the 0.5% sales tax.