Ballot Question For Rochester Sales Tax Extension Approved, Mayor Threatens Veto

Rochester, MN (KROC-AM News)- The Rochester City Council approved a resolution Monday night to task voters with deciding on an extension of the city’s local half-cent sales tax. 

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The City won approval from the state legislature earlier this year to hold a special election in November to task voters with deciding whether or not to continue the extension until $205 million in revenue is raised or for the next 24 years, whichever comes first. The money raised by the local sales tax would only be allowed to be spent on four major initiatives: an economic vitality fund, street reconstruction, flood control and water quality, and a sports and recreation complex. 

Despite the resolution passing it may not be a done deal. Mayor Kim Norton said the city asked for part of the sales tax revenue to be used to fund a sports complex that does not have a set cost or location. She called for the sales tax revenue being used for the economic vitality fund, street reconstruction, flood control and water quality initiatives to be put together on the ballot question and the sports complex funding from sales tax dollars to be separate question but was told by attorneys the city could only package all four initiatives together or put all of the projects on the ballot as separate items. 

The Mayor, who said she supported the overall idea of the sales tax extension,  expressed uncertainty of whether or not the community would support funding for a sports complex and said she’s been frustrated with the process saying it lacked adequate community engagement. She said the proposed sports complex funding could put community approval for funding of the three other initiatives in jeopardy. 

Norton said she told city administration “If [the ballot question] comes to me as a single question without any modifications or concern at all for my thoughts throughout this whole process that I will veto it, which I will.” 

Councilmember Shaun Palmer says all four of the items are needs in the community. He is skeptical that the community would support the items Norton classified as city needs if all of the proposed projects were separated on the ballot. 

If voters reject the sales tax extension, then the funding for the initiatives will likely have to come from a property tax increase, city officials say. In a news release issued Tuesday, officials cited a recent study conducted by the University of Minnesota that found nonresidents contribute approximately 43% of the funds collected by Rochester’s sales tax, which would equate to $88 over the course of the proposed extension.

City officials estimate the local sales tax could reach its revenue raising goal within 17 years. The special election regarding the ballot question is set for November 7.

The Rochester School Board is also considering scheduling a special election on the same date. School District Superintendent Kent Pekel is currently working on his recommendations for a potential increase in the public school systems existing $17 million operating levy and/or a new levy to fund technology infrastructure needs. A decision by the school board is expected next month.