Purpose

• Authorizes the city of St. Cloud to impose a local sales and use tax of 0.25% (one-quarter percent) to fund a specific project and cover related costs, subject to voter approval.

What the bill would do

• Allow, by ordinance and with voter approval, a new local sales and use tax in St. Cloud for the stated purposes.
• The new tax would be in addition to any existing local sales taxes the city already imposes.

How the tax would work

• Rate: 0.25% local sales and use tax.
• Use of revenue: Revenue from the tax would be used to pay the costs of collecting and administering the tax and to finance up to $7,000,000 for an outdoor water park adjacent to the St. Cloud Aquatics Center (or to otherwise fund up to $7,000,000 for that water park).
• Bonding option: The city could issue bonds (up to $7,000,000 plus costs of issuing bonds) to finance the project, with debt service supported by the tax revenue or other available funds. These bonds would not be counted toward city debt limits, and any levy to pay debt would not be subject to levy limitations.
• Financing details: The city may use state bond provisions (Minnesota Statutes chapter 475) to issue the bonds. A separate election to approve the bonds is not required. Voter approval is still required under Minnesota Statutes section 297A.99 subdivision 2 when applicable to the project.

Funding and project scope

• Project financed: An outdoor water park adjacent to the St. Cloud Aquatics Center.
• Funding approach: The tax revenue can cover project costs and related bond costs; the city may also fund the project using the bonds or other funds as allowed.
• Revenue use if not bonding: If bonds are not issued, revenues would still be used for project costs and administration.

Oversight, approvals, and legal context

• Voter approval: Required for the tax under the process in Minnesota Statutes section 297A.99, subdivision 3, paragraph a (as applicable to the project and bonding).
• Legal framework: The tax is authorized to operate “Notwithstanding” certain existing statutes and would run under the normal rules for local taxes unless otherwise stated.
• Relationship to existing laws: The new tax is in addition to any other local sales tax already in place.

Sunset and termination

• Termination: The tax would end at the earlier of:
  • Three years after the tax is first imposed, or
  • When the city determines the tax proceeds are sufficient to pay the project costs (and any related bond costs, including interest) as approved.
• Post-termination: Any remaining money after paying eligible costs would go to the city’s general fund.
• Early termination: The city may terminate the tax earlier by ordinance.

Significant changes to existing law

• Introduces a new local sales and use tax for St. Cloud at 0.25% with a dedicated purpose (outdoor water park).
• Creates a bonding framework to finance up to $7,000,000 for the water park, with debt and levy provisions designed to bypass some standard debt limits.
• Provides a sunset mechanism and requires voter approval for the tax and, where applicable, for the bonds.

Implications for residents and businesses

• If enacted, purchases in St. Cloud could incur an additional 0.25% sales tax, funding a public recreation project.
• Tax proceeds would primarily finance the water park project and related administration, potentially affecting city finances and debt planning.

Relevant Terms - St. Cloud - local sales and use tax - one-quarter percent (0.25%) - outdoor water park - St. Cloud Aquatics Center - Minnesota Statutes section 297A.99 - bonding / bonds - Minnesota Statutes chapter 475 - debt limits / levy limitations - voter approval - sunset / termination - general fund - tax administration costs - project costs - capital costs - issuance costs