9.5. SR 03-05-2018 - Laserfiche WebLink

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E04y1� ,.,�� Request for Action River To Item Number Mayor and City Council 9.5 Agenda Section Meeting Date Prepared by General Business March 5, 2018 Cal Portner, City Administrator Item Description Reviewed by Local Option Sales Tax Study Reviewed by Action Requested Direct,by motion, staff to engage the University of Minnesota Extension to complete a Local Option Sales Tax and Ground-truth Study for the City of Elk River. Background/Discussion Mayor Dietz spoke with Sherburne County Public Works Director Andrew Witter and University of Minnesota Extension Service Community Economics Educator Neil Linscheid regarding Local Option Sales Tax (LOST) and ground-truth study. The ground-truth of the data includes analysis of local retail market interviews to find who will be paying the tax (local vs. non-locals). County leaders are exploring a LOST for transportation programs and projects which is allowed by state law by Greater Minnesota counties. The UM will conduct a LOST study producing a) an overview of the city economy,b) a trend analysis of taxable sales in the city from 1990 to 2015, c) estimates of tax proceeds generated at different levels of taxation, and d) an estimate of what proportion of the tax proceeds may be paid by permanent,year- round residents vs visitors, travelers and seasonal residents. The study findings will be presented in a concise report. An Extension educator will be available for a public presentation and Q&A about the study. Financial Impact A study with ground-truthing typically costs $1,500. Because the county is also doing a study, the UM has agreed to charge each $1,250. Attachments ■ Contract The Elk River Vision A PehoMing community Pitb revolutionary and spirited resourcefulness, exceptional P,`01 W E H E 8 6 T service, and community engagement that encourages and inspires prosperity INAMIRE1