4.k) Staff Report-Discuss Wheelage Tax Resolution �� � �
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Staff Revort
Date of Meeting: Apri19, 2013
To: City Council
From: Kristina Handt, Administrator
Re: Discuss Wheelage Tax Resolution
Agenda Item #: 4.k)
Background:
Commissioner Fran Miron attended the March 19, 2013 Council meeting and asked the Council to
consider adopting a resolution supporting an increase in the wheelage tax. A copy of that resolution
is included in your packet.
Issue:
Should the Scandia City Council support increasing the wheelage tax in an amount to be determined
by the Washington County Board?
Proposal Details:
See attached resolution.
Fiscal Impact:
NA-this would increase funding to the county for roads, not the city.
Options:
]) Direct staff to place the resolution on the next Council agenda, either consent or general
business agenda.
2) Amend and then direct staff to place the resolution on the next Council agenda, either consent
or general business agenda.
3) Take no action on the resolution.
Resolution of Support
Wheelage Tax
WHEREAS,well maintained roads provide safe routes for travel and access to our community,and
WHEREAS,well maintained roads provide a strong foundation for economic vitaiity and growth,and
WHEREAS,County Highways are an important component of our transportation system, providing
regional access to and from communities and are the identified regional truck routes,and
WHEREAS, increasing costs of road construction and maintenance are placing a greater pressure on our
governments to find revenues to continue to maintain valuable transportation infrastructure,and
WHEREAS,Washington County highway needs continue to increase and currently outpace funding by
$7,000,000 annually,and
WHEREAS, increasing property taxes to fund highways is the only revenue source currently available to
the county,and
WHEREAS,County Governments in the Twin Cities Metro area have the option to levy a Wheelage Tax,
under Minnesota Statute 163.051,capped at$5.00 per vehicle,and
WHEREAS, in Washington County,this tax provides approximately$1,000,000 of funding annually,
specifically directed towards maintaining and improving county highways,and
WHEREAS,since 2007,the Wheelage Tax has helped to fund over 20 miles of road improvements in the
County,and
WHEREAS, a Wheelage Tax reduces the pressure on the property tax,and acts as a user fee for
transportation,and
WHEREAS,the ability to increase the amount charged per vehicle,will directly increase the funds
availabie for the county to maintain and improve its county highway system.
NOW,THEREFORE BE IT RESOLVED,the City of Scandia supports Washington County's 2013 Legislative
Platform that supports an increase in the wheelage tax cap and supports continuing local decision
making authority to implement a wheelage tax and the amount to charge with the County Board.