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The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community <br />engagement that encourages and inspires prosperity <br /> <br />Request for Action <br /> <br />To <br />City Council <br />Item Number <br />3.1 <br /> <br />Meeting Date <br />January 28, 2026 <br />Prepared By <br />Cal Portner, City Administrator <br /> <br />Item Description <br />Consider local option for sales tax amendment <br />Reviewed by <br />Cal Portner <br />Jolene Richter <br /> <br />Action Requested <br />Approve, by motion, Resolution 26-07, amending Minnesota laws 2019, First Special Session, Chapter 6, <br />Article 6, Section 17 to broaden the uses of the tax to include a fire station. <br /> <br />Designate, by motion, Calvin P. Portner to be a signatory for official City of Elk River documents as Interim <br />Deputy City Clerk. <br /> <br /> <br />Background/Discussion <br />In 2019, the City of Elk River received legislative approval to adopt a Local Option Sales Tax (LOST) of 0.5 <br />percent for up to 25 years to fund the construction of a community center, meeting space, senior center, ice <br />arenas, park improvements at Lion John Weicht Park, Orono Park, and the Youth Athletic Complex, trail <br />connections, and dredging of Lake Orono. <br /> <br />Proceeds of the 2019 LOST have exceeded the initial revenue estimates, thus enabling the termination of the <br />LOST well before the 25-year term. <br /> <br />Fire Station #1 has neared the end of its expected lifecycle and will require major renovations to continue in <br />its current operational capacity. Multiple studies have indicated improved value in replacing the building rather <br />than making major improvements. <br /> <br />The City Council has expressed consensus to fund the construction of the building. Amending the existing <br />state law to include these new items would continue the existing term without increasing the tax. If the bonds <br />for the fire station are paid for before the end of the original term, the LOST would terminate at that time. <br /> <br />Per Minnesota Statute, the respective tax chairs in the House and Senate must receive an approved resolution <br />by January 31 of their session. <br /> <br />Financial Impact <br />N/A <br /> <br />Mission/Policy/Goal <br />Elk River Mission Statement <br />Page 2 of 6