Council asks for input on local sales tax

Published 10:34 am Wednesday, February 26, 2014

Albert Lea officials are asking the public to weigh in on whether the city’s local-option sales tax should be extended another five years.

The Albert Lea City Council on Monday voted 6-1 to table a decision of support for the extension, noting they still had unanswered questions and thought there needed to be more public input before making a decision.

“It is important for us to have public input,” said Albert Lea Mayor Vern Rasmussen. “I think as a council we see that as an important part of our job.”

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The half-cent sales tax, approved by more than 80 percent of voters in 2005, is used for lake improvements under the Shell Rock River Watershed District. One of the main goals is to dredge Fountain Lake.

Lakes Foundation President Laura Lunde said when the tax was initially approved, it was slated to last 10 years or until it had collected $15 million. However, by the end of the 10 years — in March 2016 — the tax is projected to have generated between $12 million and $12.5 million.

The proposal calls for the tax to expire once the $15 million threshold is met — or at the end of five years, whichever comes first — at which time organizers may call for a formal referendum to renew the tax. Lunde said the extension is supported by the state revisor’s office, and a bill is ready to be introduced to both the state House and Senate.

“It’s pretty important and crucial that we move forward with this,” Lunde said.

Susie Petersen, executive director of the Albert Lea Convention and Visitors Bureau, said people frequently come up to her and ask her when Fountain Lake will be dredged.

“If we can get dredging and clean up our lakes, we are going to get thousands of jobs and people will come here,” Petersen said.

The request comes as watershed district officials and the community are waiting to see whether the state will approve $7.5 million in state bonding funds to go toward the $15 million dredging project.

The district in 2012 purchased a 2010 IMS 7012 HP 51-foot Versi hydraulic dredge for $340,000, along with the pipes, pumping and other equipment necessary to pump the dredge material away from the lake for $435,000. It has also purchased land that will be used as a staging area for the project and has contracted out for preliminary engineering.

Former Mayor Randy Erdman, who worked to get the tax approved in 2005, said though he supports the extension, there are questions in the community about some of the decisions made by the district’s board.

He said the district can move ahead on projects without city approval, and he thinks there should be more city involvement.

Erdman also questioned some of the district’s purchases — including the dredge.

“This is a great funding source, but it’s tax money, and it needs to be spent accordingly, with respect,” he said.

Second Ward Councilor Larry Baker asked how much of the sales tax has been set aside to be used as matching money if the state awards $7.5 million in bonding funds.

Matt Benda, supporter of the Lakes Foundation and lawyer for the watershed district, said the money spent on preliminary engineering and the dredge goes toward that match, but he was unsure what other money might have been set aside.

Baker said it seems as if the communication has disappeared between the watershed’s board and the City Council.

“I think that’s one of the most important things we need to have back again,” Baker said.

Lunde said a group from Albert Lea is meeting with legislators March 13 to discuss the sales tax, among other issues. She said they hope to have the council’s vote of support by that date.

“We need to keep moving forward with the momentum that we have right now and start to make everything happen,” she said.

Fourth Ward Councilor Reid Olson voted against tabling the issue and said he was willing to support it Monday night.