The City of St. Paul is seeking approval of a local option tax that would impose an increase in tax of $2.50 per $1,000 of assessed value for two years beginning in Fiscal year 1999-2000. This tax revenue would go into St. Pauls General Fund.

Q. Why does St. Paul need additional General Fund revenue?

A.

The City of St. Paul is facing a variety of very complex issues relating to such matters as development, police services, long range planning, and management of public works facilities and resources. The City is legally required to carry out these functions. The City is presently addressing these issues with three part time employees, limited contracted services, and citizen volunteer contributions. The Citys current Permanent Tax Rate under Measure 50 provides insufficient resources to adequately address these issues and run the day to day business of the City.

Q. How much tax revenue does St. Paul currently receive?

A.

Currently, St. Paul collects yearly taxes of approximately $36,897. Of that total, $26,346 comes from two temporary bond levies. The proposed local option tax would impose an additional tax of approximately $35,359 each year for two years.

Q. What is the General Fund?

A.

The General Fund pays all city expenditures not covered by the Citys Sewer, Water, or Streets Funds, including such services as police, administration, finance and payroll, land use planning, and growth management. Sewer, Water, and Street Funds may only be used to pay for projects or services related to providing sewer, water, and streets for St. Paul. Anything else must be paid for out of the General Fund.

Submitted by:

Barbara Boedigheimer, City Recorder

No arguments in favor of or opposed to this measure were filed.