Golden Valley proposes local sales tax

The Golden Valley City Council hopes to win approval for a new local sales tax, as the city drives toward two major new buildings to replace what staff say are antiquated facilities used by police, firefighters and public works staff.

The council on Tuesday approved a resolution supporting a 1.25% local sales tax, meant to fund a new public works building and a new public safety building that will serve as a central fire station and police headquarters.

The city will now have to persuade state legislators to introduce a bill to allow the tax in Golden Valley. If the proposal gets legislative approval, the tax will go before Golden Valley voters in November.

To make the case to legislators, said Cherie Shoquist, the city's housing and economic development manager, Golden Valley officials plan to explain that the city is a critical connection between Minneapolis and corporate headquarters in the western suburbs, so police, fire and public works serve people well beyond the city's bounds.

Mayor Shep Harris said Tuesday that because Golden Valley already has a high property tax rate — the state's sixth highest — he was reluctant to vote for a property tax increase to fund the new projects. But he said he believes the new buildings are sorely needed.

If approved, Golden Valley would have one of the highest local sales tax rates in the state, though the tax would not apply to groceries, clothing or anything else exempt from state and local sales taxes.

Rising construction costs have pushed the cost of building both projects above $100 million, city staff said, and paying interest on 30-year bonds to finance construction would bring the total amount to more than $190 million.

City staff estimate a 1.25% sales tax could get the city within a few million dollars of what's needed for the new buildings and the interest.