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Local Option Sales Tax
Both City Questions Approved on November 8, 2022
Thank you to all Oakdale residents who voted and made their voice heard on this important community decision!
Question 1 was approved with 52% of the vote. (Sales tax for the construction of a new Public Works facility.)
- YES 5,766
- NO 5,425
Question 2 was approved with 55% of the vote. (Sales tax for the expansion and remodel of the Police facility.)
- YES 6,213
- NO 4,992
The one-half of one percent (0.5%) sales tax will take effect on April 1, 2023.
Summary (Prior to Election Day)
The City of Oakdale will have two questions on the November 8, 2022 general election ballot related to a Local Option Sales Tax (L.O.S.T.) to help remodel and expand the current Police facility and fund a new Public Works facility. This page will provide resources for voters about the local option sales tax.
Quick Facts
- The local option sales tax will be decided by the voters on Election Day – November 8, 2022.
- The total sales tax, if approved by voters to finance one or both projects, will not exceed one-half of one percent (0.5%).
- With sales tax, non-residents would share the cost with residents.
- The maximum length of the sales tax is 25 years.
- The current tax rate is 7.375 percent. If approved by voters, the tax rate will be 7.875 percent.
Background
Since Oakdale became a city in 1974, the City’s population has nearly tripled. Throughout that time, City services have continued to evolve, responding to the needs of our growing city. Oakdale’s population is expected to grow by an additional 20 percent to reach up to 35,000 upon completion of planned development. As Oakdale experiences its final growth spurt, planning is underway to position these critical public services for long-term success in our growing community.
Perhaps the largest challenge facing the Police and Public Works departments remains space constraints in their current facilities. Operational inefficiencies created by the building layouts and changes to staffing models present challenges to operating a 21st-century workforce. The need for improvements to both facilities is clear.
- Police: Plans call for the expansion and remodel of the existing building at Hadley Ave N and 15th St N for $15 million in sales tax.
- Public Works: Plans call for a new facility at 32nd St N and Granada Ave N for $22 million in sales tax.
Police Facility
The Police Department has occupied its current facility, connected to City Hall at 1584 Hadley Avenue N, since 1992. During that time, its sworn officer staff increased by 70 percent while complaint reports have increased 65 percent. Our police department needs more space to deal with the increased need for services due to a wide range of societal and caseload changes, including catalytic converter thefts and human trafficking, not envisioned when the current facility was built. Keeping Oakdale safe and offering the quality of life our residents and visitors deserve requires a modern police force operating out of modern facilities. Issues with the current Police facility include:
- More space is needed to accommodate workstations. Currently, 24 staff members share four computer workstations.
- No indoor parking for police vehicles. With Minnesota’s cold winters and hot summers, many of our squad cars stay running to protect sensitive computer equipment inside. This cuts the useful life of the vehicle down by up to 50 percent, while also burning a lot of gasoline.
- Space constraints require different types of police equipment to be stored throughout the facility, which wastes valuable time at the beginning and end of each shift.
- Records and evidence are stored in four separate locations, only two of which are in the current police station. Additional records storage is located off-site.
- Locker rooms where officers store equipment is at maximum capacity. Equipment lockers are often shared as there is no space to add additional lockers.
Police Facility Video Tour
If you missed our Walk with the Mayor at the Police facility on October 29, watch this video recap of the event as Chief Nick Newton explains and shows the current challenges of the building.
Public Works Facility
The Public Works Department, located north of City Hall at 1900 Hadley Avenue N, has occupied its current facility for 37 years. Since 1985, Oakdale has added 27 miles of streets, created eight new parks, and increased staffing levels 65 percent to handle it all. Perhaps the facility’s stiffest challenge is its close proximity to a wetland. Surrounded by a wetland on three sides, the Public Works site lacks any ability to expand or evolve to meet Oakdale’s needs. Issues with the current Public Works facility include:
- Heating and ventilation systems have reached their useful life, causing air quality concerns.
- City equipment being exposed to weather outside year-round due to insufficient storage space. Constant exposure to the elements significantly shortens the useful life of the equipment.
- The men’s locker room is on the second floor (no elevator), which is not ADA-compliant. The women’s locker room has space for four lockers and lacks gender equity.
- Due to a lack of storage, vehicle parts are stored on the second floor. With no elevator, mechanics carry parts, which are often bulky and heavy, up and down stairs, causing safety concerns.
Public Works Facility Video Tour
If you missed our Walk with the Mayor at the Public Works facility on October 18, watch this video tour with Oakdale Public Works Manager Jim Romanik as he explains and shows the current challenges of the building.
Funding Considerations
- The City Council considered several options including property taxes and concluded it was fairest to have everyone who benefitted from the services provided by the Police and Public Works departments pay their part for those services.
- Without a sales tax, 100 percent of the burden falls on Oakdale property owners through property taxes.
- With a sales tax, the burden is shared by residents and non-residents.
Ballot Questions
Below voters will find the language as it will appear on the November 8 ballot for each of the two questions regarding the local option sales tax.
Question 1: Considering Sales Tax for Construction of New Public Works Facility
Shall the City of Oakdale be authorized to impose a temporary sales and use tax to finance all or a portion of the cost of constructing a new Public Works Facility, in an amount equal to one-half of one percent (0.5%) for a period of twenty-five (25) years or until $22,000,000 plus the costs of collecting and administering the tax and the costs of issuing any bonds including interest is collected, provided that such tax shall terminate sooner if the City Council determines that all such costs have been paid?
The total sales and use tax approved by voters at this election to finance this project and any other project will not exceed one-half of one percent (0.5%).
Question 2: Considering Sales Tax for Expansion and Remodel of Police Facility
Shall the City of Oakdale be authorized to impose a temporary sales and use tax to finance all or a portion of the cost of construction and rehabilitation and associated building costs of the Oakdale Police Department Facility, in an amount equal to one-half of one percent (0.5%) for a period of twenty-five (25) years or until $15,000,000 plus the costs of collecting and administering the tax and the costs of issuing any bonds including interest is collected, provided that such tax shall terminate sooner if the City Council determines that all such costs have been paid?
The total sales and use tax approved by voters at this election to finance this project and any other project will not exceed one-half of one percent (0.5%).
- What is a local option sales tax?
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A local option sales tax (L.O.S.T.) is simply a sales tax that is collected within the geographic boundaries of a city or county. Local option sales taxes apply to the same items and services as the general state sales tax. Items exempt from regular state sales tax are also exempt from the local option sales tax including many essential items such as groceries, prescription and over-the-counter medications, baby products and clothing.
Complete list of non-taxable items from Minnesota Department of Revenue - What can receipt of local option sales tax funds be used for?
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Local governments in Minnesota use the local option sales tax to fund capital projects such as public buildings, libraries, parks, and other amenities.
- Can any city create a local option sales tax?
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Yes and no. Cities can explore creating and collecting L.O.S.T. but the process to do so is defined by state law. Before L.O.S.T. can be collected, it must receive approval from the state legislature, the local governing body (i.e. the City Council or County Board of Commissioners), AND the voters via a ballot referendum.
- What does Oakdale want to fund using a sales tax?
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Oakdale’s City Council has identified two large-scale building projects and identified the local option sales tax as the preferred funding source. Oakdale’s Police and Public Works facilities – built in 1992 and 1985, respectively – were constructed when Oakdale had a smaller population and the need for services was vastly different. These facilities need to be updated and/or replaced to meet the needs of a growing community.
- Were other funding sources considered?
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Yes, the City Council considered several options, including property taxes, and concluded L.O.S.T. made the most sense for Oakdale residents because the cost would be born not only among Oakdale residents. The benefit of the new Police Department and Public Works facilities and the services these departments provide will be felt by not only Oakdale residents but by anyone that works, shops, or visits the City of Oakdale. In an independent study conducted by the University of Minnesota Extension office that analyzed general state sales tax collected in Oakdale, the data showed that 50 percent of all sales tax collected comes from non-Oakdale residents.
- How much would the local option sales tax be and how long would it be in effect?
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The proposed L.O.S.T would be one-half of one percent (0.5%), or $.50 on every $100 of taxable purchases. State law requires the tax to automatically sunset once funds required for the projects are collected, or 25 years per approved legislation, whichever occurs first.
- Did the City Council approve putting the local option sales tax before voters?
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Yes, on August 8, 2022, the City Council voted unanimously to put the local option sales tax to voters on the November 8, 2022 ballot.
- What will the local option sales tax look like on my ballot?
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Voters will have two questions to respond either YES or NO to for the local option sales tax. The ballot language is as follows for both questions:
Question 1: Considering Sales Tax for Construction of New Public Works Facility
Shall the City of Oakdale be authorized to impose a temporary sales and use tax to finance all or a portion of the cost of constructing a new Public Works Facility, in an amount equal to one-half of one percent (0.5%) for a period of twenty-five (25) years or until $22,000,000 plus the costs of collecting and administering the tax and the costs of issuing any bonds including interest is collected, provided that such tax shall terminate sooner if the City Council determines that all such costs have been paid?
The total sales and use tax approved by voters at this election to finance this project and any other project will not exceed one-half of one percent (0.5%).
Question 2: Considering Sales Tax for Expansion and Remodel of Police Facility
Shall the City of Oakdale be authorized to impose a temporary sales and use tax to finance all or a portion of the cost of construction and rehabilitation and associated building costs of the Oakdale Police Department Facility, in an amount equal to one-half of one percent (0.5%) for a period of twenty-five (25) years or until $15,000,000 plus the costs of collecting and administering the tax and the costs of issuing any bonds including interest is collected, provided that such tax shall terminate sooner if the City Council determines that all such costs have been paid?
The total sales and use tax approved by voters at this election to finance this project and any other project will not exceed one-half of one percent (0.5%).
- Do businesses need to report the local option sales tax separately to the state when submitting all sales taxes?
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This is already done for Washington County’s Transit sales and use tax, which is at the same percentage as the city’s proposal of one-half of one percent (0.5%). Yes, L.O.S.T. would require two additional lines of reporting.
- What happens if the local option sales tax is not supported by voters?
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If the voters do not support the local option sales tax, it will be up to the City Council to determine how to fund the two proposed projects. Before putting the local option sales tax before voters, the City Council considered several funding options including property tax increases. The City Council felt a local option sales tax would be fairest because the burden would be shared by residents and non-residents.