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3.9 Extension of Wright County Local Option Sales Tax (LOST) Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Administration City Administrator/Finance Director Flaherty October 25, 2021 PRESENTER(s) REVIEWED BY: ITEM #: Consent 3.9 – LOST Support Resolution STRATEGIC VISION MEETS: THE CITY OF OTSEGO: X Is a strong organization that is committed to leading the community through innovative communication. Has proactively expanded infrastructure to responsibly provide core services. Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. Is a social community with diverse housing, service options, and employment opportunities. Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff is recommending the City Council approve a resolution supporting the extension of the Wright County local option sales tax (LOST). ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No No BACKGROUND/JUSTIFICATION: In 2017, the Wright County Board of Commissioners approved a one-half of one percent sales tax on retail sales for the purpose of financing transportation improvement projects County wide. The current LOST authorization expires as of December 31, 2022. Without the revenue from the LOST, the County will face a transportation funding gap of almost $10 million per year. Since implementation, the County has used the LOST revenue to fund eight highway projects, including two projects in Otsego; 1) CSAH 38 from CSAH 19 to Maciver Avenue; and 2) CSAH 39 from Odean Avenue to CSAH 42. If extended, the LOST revenues would help fund more than 30 future highway projects in the County, including approximately $50 million of projects within or on the border of the City of Otsego. The funding will ensure that Wright County highways are able to handle local, commuter, business and agricultural needs in one of the top growth counties in the State. SUPPORTING DOCUMENTS ATTACHED: • LOST Candidate Project Maps (DRAFT) • Resolution 2021-84 POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to approve Resolution 2021-84 supporting the extension of the Wright County local option sales tax. 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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA: 1. The City Council supports the extension of the LOST as a proven, reliable and fair revenue source for transportation infrastructure projects. 2. The City Council further encourages the Wright County Board of Commissioners and Wright County Staff to make necessary approvals to continue the LOST. 2 ADOPTED by the Otsego City Council this 25th day of October, 2021. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk