EGF still looking at sales tax plan

East Grand Forks residents could learn as soon as next week what type of sales tax ask could be on a future ballot for park and rec facility needs.

The city council discussed both a one-percent and three-quarter percent tax to fund improvements to ice arenas and baseball facilities during last night’s (Tuesday) work session.

According to the latest financial estimates a one-percent bump over 20 years would generate $22.4 million dollars – with $14.7 million going towards the project. A three-quarter percent tax would raise $16.8 million – with just over $11 million dollars targeting upgrades.

Mayor Steve Gander says given the need he can support the one-percent plan.  “What I needed to see from my comfort level was to see what’s coming out of there…fluff or really essential programs.  I don’t see any fluff in there.”

Council member Clarence Vetter says after looking at the responses from a business survey he favors a smaller tax burden.  “22% favor a 1% sales tax….77.8% favor a 3/4% sales tax.  So even those businesses that favor a sales tax they favor a 3/4%.

The city is facing an end of the month deadline to submit the tax plan to the Minnesota Legislature. If lawmakers concur it would likely be on the November 2024 ballot.