BAXTER - Voters will have a ballot question to decide whether the city of Baxter extends its sales tax at the Nov. 4 election.
Baxter City Council members Tuesday adopted a resolution approving the ballot question.
It will now be forwarded to the Crow Wing County Auditor-Treasurer's office to meet an Aug. 22 deadline to be included in the ballot.
Earlier the state Legislature granted Baxter the authority to put the question to the public with requirements.
The extension of the half-percent sales tax is through 2037 or when $40 million is generated for the approved projects and costs. With the extension, $32 million is earmarked to cover costs with the sanitary sewer, storm sewer, water projects and transportation safety improvements. In addition, $8 million is for improvements at the Brainerd Lakes Regional Airport.
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Council member Jim Klein questioned the ballot language that says voters are voting for a property tax increase if they say yes. The vote extends the sales tax not a property tax increase, Klein said.
Because the city is issuing bonds that will be backed by the city's taxing authority, the language about the property tax increase is required by state law.
The city noted the required language does note the property tax increase is only if sales tax revenues are not sufficient to pay the bonds. To date, the city noted, a property tax levy has not been necessary to pay the bonds and isn't expected if the sales tax extension is approved.
The ballot question is:
Shall the city of Baxter be authorized to extend an existing sales and use tax of one-half of one percent (0.5 percent) and a motor excise tax of up to $20 per motor vehicle and issue its general obligation bonds in an aggregate principal amount not to exceed $40 million plus the cost of issuing the bonds, to finance the acquisition and betterment of sanitary sewer, storm sewer and water projects, and transportation safety improvements and improvements to the Brainerd Lakes Area (Regional) Airport?
Polls will be open from 7 a.m. to 8 p.m. Nov. 4 at Lord of Life Church, Baxter City Hall, Assembly of God Youth Building and Forestview Middle School.
