SF5065

Purpose

This bill changes how the City of Edina can use local sales tax revenues. It directs the revenues to pay the costs of collecting and administering the tax and to finance specific projects in Edina, mainly through bonding. Some projects can proceed without a voter vote, while others must be approved by voters.

Main Provisions

• Use of revenues
  • Revenues from Edina’s local sales tax must be used to cover:
  • Costs to collect and administer the tax.
  • Debt service and bonding costs for listed projects in Edina.
• Projects and funding (with estimated ranges)
  • Fred Richards Park development (per Master Plan): $17,700,000 to $18,700,000, plus bonding costs.
  • Braemar Park improvements (per Master Plan): $53,300,000 to $56,300,000, plus bonding costs.
  • Design and construction of new public safety facilities: $35,000,000, plus bonding costs.
  • Edina Art Center tenant improvements: $6,000,000, plus bonding costs.
  • Capital improvement plan for the Edina Aquatic Center: $8,000,000, plus bonding costs.
  • Design of the Braemar Golf Course Clubhouse: $4,000,000, plus bonding costs.
• Oversight and approval
  • For the projects listed in the above categories, the bill includes a provision that requires voter approval for certain items.
  • Specifically, the projects in the categories for public safety facilities, Edina Art Center improvements, the Aquatic Center plan, and the Braemar Golf Course Clubhouse require voter approval at the November 3, 2026 general election.

Notable Changes to Law

• Introduces a broader set of allowable uses for Edina’s local sales tax revenues focused on specific park, public safety, arts, and recreation facilities, financed by bonds.
• Adds a mandatory voter approval requirement (November 3, 2026 general election) for several of the listed projects, limiting these uses unless approved by voters.
• References to “notwithstanding” Minnesota Statutes provisions indicate these uses can proceed outside certain standard statutory limits (with regard to bond expenditures and approvals).

Timeline and Elections

• Voter approval required for certain projects at the November 3, 2026 general election.

Stakeholders and Impact

• City of Edina and its residents will be affected, as local tax revenue will be earmarked for specific capital projects and debt service, with some projects requiring voter consent before funds are spent.

Summary of Intent

• The bill aims to certify how Edina’s local sales tax revenue is spent (administration plus specified capital projects) and to set a voter-approval hurdle for several major projects, aligning budgeting with community input through the 2026 election.

Relevant Terms - Edina - local sales tax revenues - sales and use tax - bonding costs - debt service - Fred Richards Park - Braemar Park - Master Plan - public safety facilities - Edina Art Center - Edina Aquatic Center - Braemar Golf Course Clubhouse - voter approval - November 3, 2026 - general election - Minnesota Statutes 297A.99