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City Council Minutes Page 4 <br /> February 8,2018 <br /> ----------------------------- <br /> Councilmember Ovall questioned Mayor Dietz if he is linking the repayment with <br /> the sales tax. He questioned if he is saying he doesn't want to move forward with the <br /> project until Council definitively knows it is moving forward with sales tax funding. <br /> Mayor Dietz stated no. He stated he wanted a special election for the sales tax but <br /> found it is required to be on the November ballot. He stated the majority of Council <br /> voted to move forward with this project but he still needs to participate in the <br /> discussions and vote on project details as they happen. He stated it could be <br /> explained to the public how a sales tax option would work versus a property tax <br /> option. <br /> Councilmember Ovall stated he wanted to clarify whether one drove the other or if <br /> the mayor were recommending moving forward with bonding and if it fails Council <br /> is stuck with the property tax option. It sounded to him like Mayor Dietz didn't want <br /> to wait for a conclusion on the sales tax referendum to move forward with the arena. <br /> Mayor Dietz noted this was a good point and he needs to think about it. <br /> Councilmember Westgaard stated Council had this discussion when talking about the <br /> community center. He noted the city has three failing facilities and questioned if <br /> Council is willing to replace them. He questioned what the plan would be if voters <br /> say no to the referendum. He stated this was laid out very clearly in the literature to <br /> the community. He stated the sales tax seems like a good funding option to help <br /> spread the tax burden beyond the local tax base but asks what happens if it fails. He <br /> noted the city has gotten benefit in its building fund from the landfill and been able <br /> to construct a lot of buildings and deferred and paid for a lot of bond payments and <br /> as a result hasn't been a burden on taxpayers. He stated Council wouldn't be having <br /> this discussion if talking about a police/fire station,but are now because the arena is <br /> more controversial. He stated it is a quality of life issue. He questioned if Council <br /> should replace the arena to maintain current service levels. He agrees combining all <br /> three facilities was a better dollar value,but it was voted down and he questioned <br /> how many times the city should go back to voters. He stated this community has <br /> looked at community centers for 16 years. He stated as policy makers Council has <br /> the ability to build and bond for a community center if they feel it is a better project. <br /> Councilmember Ovall stated a lot of issues need to be broken down for him. He <br /> questioned how many times a sales tax has been turned down by the state or <br /> governor. <br /> Mr. Portner stated he is not sure it has been turned down but wants Council to <br /> know;per a consultant, Elk River is closest to the metro and these are different <br /> political times. He stated most of the sales tax allowances have been for regional <br /> centers or out state communities. <br /> Councilmember Ovall stated there are a number of other cities and counties around <br /> us utilizing sales tax. <br /> POWERED 9r <br /> UREJ <br />