EGF mayor rejects 30 year sales tax plan

The size and length of a local sales tax is still up for debate after East Grand Forks Mayor Steve Gander vetoed a pay plan for Park and Rec improvement projects.

The council voted 5-2 last week to seek legislative support in floating a 1.25% tax over 30 years before voters in November.  Mayor Gander says he supports the project but the tax plan asks too much and extends out too long for businesses.  “And so it opens a conversation to see how close we can get to 1% and 20 (years).  It’s not a line in the sand that says if it’s not 1% and 20 that I’ll veto it again.”

The tax would have generated $28.9 million dollars to renovate ice arenas and baseball facilities.

Council President Mark Olstad says lowering the length of term to 20 years may be an option – but he’s not in favor of dropping the tax rate.  “My preference would be that we do whatever we can to the Civic Center area and baseball field and turf.”

The 1% option over 20 years generates 16.18 million in project funds.  In order to reach an estimated $20 million dollar funding goal it would take a 1.1% tax rate 24 years…and a 1.125% plan 23 years…to hit that mark.

Parks Superintendent Reid Huttunen says he’ll sit down with consultants and members of the building committee later this week to see how the revised budget numbers impact the project.

The council needs to notify the legislature of its intent by the end of the month.