DATE: November 6, 2024
For Immediate Release
CONTACT: Stephanie Trottier
(763) 271-3202 | Stephanie.Trottier@ci.monticello.mn.us
Community Votes on Local Option Sales Tax
Monticello, MN – On November 5, our community actively participated in the local decision-making process by casting their votes on the proposed local sales tax. Residents approved the 0.5% sales tax to fund the Bertram Chain of Lakes Regional Athletic Park, one of two projects on the ballot. The tax will be in effect for 20 years or until the funding limit of $15 million is met, whichever comes first. The sales tax was not approved for The Pointes at Cedar Recreation Area.
The Monticello City Council is dedicated to the phased development of both projects, with a goal to align each project with the best funding source to ensure lasting community benefits. For these reasons, the Monticello City Council initiated the process to seek a local option sales tax. A local sales tax is only available for specific types of projects, of which the Bertram Chain of Lakes Regional Athletic Park and The Pointes at Cedar Recreation Area qualify. The sales tax allows our City to collect revenue from non-residents shopping in our community, distributing project costs regionally, and reducing the impact on residents’ property taxes. Local option sales taxes apply to the same items and services as the general state sales tax. Items exempt from the local sales tax include many essential items such as groceries, prescription and over-the-counter medications, baby products and clothing. According to a tax analysis study conducted by the University of Minnesota Extension Office, an estimated 70% of the expected revenue will come from non-residents, with the average person paying $30 per year in sales tax.
To propose this funding option on voters’ ballots, the City Council passed a resolution in January 2023 and the City submitted it to the Minnesota Legislature for authorization. The resolution outlined a 0.5% sales tax to be in place for a maximum of 20 years to generate $30 million for both projects, or $15 million each. State law requires the tax to automatically end once the funding limit or time limit is reached – whichever comes first. The Minnesota Legislature authorized the City to hold a referendum to impose the tax, which was held at this year’s General Election. Each project required a separate question on the ballot.
The Bertram Chain of Lakes Regional Athletic Park is already recognized as a regional destination and will continue to shape Monticello’s recreational future. While the larger regional park is co-owned by the City and Wright County, the 118-acre Athletic Park is operated by the city and provides active recreation opportunities to complement the passive recreation within the larger 1,200-acre park. The first improvements to the Athletic Park were completed in 2017. Today, thousands of athletes compete at the park with available fields booked seven days a week, May through October. It accommodates soccer, lacrosse, football, baseball and cross-country events, playing host to numerous large tournaments that drive local economic activity. Recent data shows over 50,000 people visited Bertram in the past year. Proposed improvements to the park include multipurpose recreational fields, a picnic shelter, pickleball courts, additional parking, and irrigation and landscaping. The park’s improvements are guided by the Athletic Park Master Plan, approved in 2016 after a year-long community engagement process.
The Pointes at Cedar Recreation Area is intended to be an urban public park with a mix of views, activities, and events, positioned as an all-season destination that blends residential, commercial, and public amenities. The Pointes is located between Chelsea Road on the north, School Boulevard to the south, Edmonson Avenue to the west, and Cedar Street to the east. Filling a critical gap in the City’s park system, this space is designed to offer residents and visitors the experience of three distinct Minnesota biomes right in the center of town. In September 2022, City Council adopted a Master Plan for The Pointes after soliciting community feedback through public engagement events and surveys. A volunteer committee, the Compass Committee, was formed to ensure community input was integrated into the planning process. Proposed improvements for The Pointes at Cedar Recreation Area include a lake that also serves as a regional stormwater pond, a one-mile lighted pathway, gathering and event spaces, shelters and seating, native landscaping, and restrooms and parking.
The sales tax will be implemented no earlier than April 1, 2025, with the Minnesota Department of Revenue overseeing the collection and administration for the city. The Department of Revenue will register all businesses located in Monticello for the new local tax. In addition, local businesses will receive a letter from the Department of Revenue to notify them to begin collecting the tax, at least 60 days before the start date. Updated information about the local sales tax will be available on the City of Monticello and Department of Revenue websites prior to the start date.
The sales tax revenue is designated solely for the specific project approved by voters. Additionally, the tax does not renew automatically.
The City values transparency and responsible stewardship of the funds raised through this local sales tax. This funding source will support the development of the Bertram Chain of Lakes Regional Athletic Park, with improvements that will expand our recreational offerings, attract visitors and events, and encourage economic growth. Although the Pointes at Cedar Recreation Area did not secure the sales tax approval, it continues to be an important part of Monticello’s vision for a strong and resilient community that has regional attractions for recreation, connection, and economic development. We are committed to seeking alternative funding sources, such as grants, and considering a phased development approach to minimize any financial impact on residents’ property taxes. We will continue to communicate about the projects as updates become available.
We would like to thank all community members who participated in this vote and engaged in discussions about the sales tax. Your involvement is crucial to our community’s development, and we appreciate your willingness to consider this alternative funding source. As always, we remain committed to prioritizing projects that enhance our community and align with Monticello’s Comprehensive 2040 Vision Plan, developed through community input during the collaborative planning process. The input gathered from you – our residents – is invaluable in creating a shared vision for what our city can become.
We encourage all residents to continue participating in community engagement opportunities. Your attendance is welcome at any of the city’s public meetings. For those unable to attend, City Council, Planning Commission and Economic Development Authority meetings are broadcast on cable and available to stream online. Please visit the City website for more information.