Local sales-tax proposal back on the table

Published 12:00 am Tuesday, April 29, 2003

If there is one thing Randy Erdman knows, it is how local option sales tax proposals work &045; something that he has pushed for Albert Lea for the past few years.

As president of Destination: Albert Lea, Erdman headed an effort all the way to St. Paul to get a proposal passed, but the bill sank to the bottom of the legislative barrel and was never voted upon.

Now, from a different vantage point, as a city councilor, Erdman is urging the city to take a look at bringing another half-percent sales tax proposal to the Capitol.

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The proposal would differ from one proposed by DAL; instead of dedicating some of the money for downtown redevelopment, Erdman said all tax money generated would go to lake restoration &045; something he thinks finally needs to get done.

&uot;Are we really going to get somewhere with this lake deal, or just give it lip service, as usual?&uot; Erdman said.

He authored a resolution to hold a public hearing on the proposal; it passed 5-1, with councilor Warren Amundson voting against. Amundson was unavailable for comment after the meeting.

Erdman pointed out that on July 1, all Iowa counties will have a 7 percent sales tax, compared to Minnesota’s 6.5 percent, and that cities like Mankato and Rochester already have local-option sales taxes. He said he thinks people would be willing to pay it, but also pointed out that the community would get to vote on the proposal in a referendum*.

The city would apply to the state legislature in order to get permission to, if voters approve, levy the sales tax.

As a bill, it would likely not see the legislature until next year’s session, according to former representative and Albert Lea mayor Bob Haukoos. But Erdman thinks the city should get a plan in order now.

&uot;We should take care of it now so we’ll be ready,&uot; he said.

The DAL proposal would have given 75 percent of the earnings to lake projects and 25 percent to downtown revitalization.

&uot;Right now there is no funding source for this project,&uot; Erdman said. &uot;The way the federal government looks at it, ‘if you don’t want to pay for it, why should we? It’s your lake and your community.’&uot;

The tax could raise $15 million over 10 years, Erdman said.

One issue that might stand in the way of the sales tax would be the creation of a watershed district. While that offers no immediate threat, one possible area of contention would be using funds raised by the city for project which might overlap in jurisdictions. The watershed district would be an independent local governing body, appointed by the Minnesota Board of Water and Soil Resources (BWSR).

BWSR is expected to decide whether to create a watershed district this spring.

Don Sorenson of Albert Lea, who could be considered for a position on the watershed board, said he thinks Erdman’s proposal offers more opportunity than friction.

&uot;(The lake issue) is something we should have been on top of,&uot; he said. &uot;Maybe this year is the year to do (a sales tax).&uot;

Sorenson stressed that in order for the lake issues to be solved, it will take cooperation between the city, the county and the watershed board, if one is appointed.

Erdman hopes the main issue will be solved. &uot;We just need to do something about our lakes,&uot; he said.

The hearing on the sales tax will likely be held in May.