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<br /> <br />City of Elk River <br />REQUEST FOR COUNCIL ACTION <br />Agenda Section Meeting Date <br />En ineerin March 6, 2006 <br />Item Description <br />Resolution Supporting Passage of Proposed Amendment to the <br />Minnesota Constitution Dedicating All of the Motor Vehicle <br />Sales Tax Revenue to Trans ortation <br /> <br /> <br />Introduction <br />The 2005 State Legislature approved a ballot initiative to require all of the motor vehicle sales tax to be <br />used for transportation. <br /> <br />Discussion <br />The ballot initiative will ask if all of the motor vehicle sales tax should be used for transportation with at <br />least 40% of the revenue for public transit assistance and not more than 60% of the revenue for highway <br />purposes. The League of Minnesota Gties, the Association of Metropolitan Gties, and the Municipal <br />Legislative Commission all support an improved revenue collection system that would allow more <br />financial support for highway, bridge, and transit funding. This resolution would encourage voter <br />approval of the constitutional change. <br /> <br />Financial Impact <br />It is estimated that if this ballot initiative is passed, when fully implemented in 2011 the Gty of Elk River <br />could see an increase of approximately $100,000 annually in their Municipal State Aid allotment. This <br />would represent an approximate 13% increase over the 2006 allotment. <br /> <br />Attachments <br /> <br />. Resolution Supporting Passage of the Proposed Amendment to the Minnesota Constitution <br />Dedicating All of the Motor Vehicle Sales Tax Revenue to Transportation <br /> <br />Action Requested <br />Consider adoption of the attached resolution supporting passage of the ballot initiative requiring all <br />motor vehicle sales tax to be used for transportation. <br /> <br />Council Action <br /> <br />Motion by _ <br /> <br />Second by _ <br /> <br />Vote <br /> <br />Follow Up <br /> <br />S:\Engineer\2006 a; memos\MN Olnsitution Amend.doc <br />