Share your opinion about sales tax use

Share on Facebook Share on Twitter Share on Linkedin Email this link

Consultation has concluded. Thank you for providing feedback. Results will be considered to help inform decisions.

Through voter approval, the city of Mankato has been authorized to extend the existing one-half of one percent (0.5%) local sales tax until 2038 to finance $47 million in construction and improvement of public safety emergency communications, flood control and levee system improvements, regional water quality, expansion of multi-model transit facilities, existing and new recreational facilities, matching grants for publicly owned historic museum, supportive housing, senior citizen center, and improvements to governmental entities outside the city of Mankato.

The real picture
While $47 million is a lot of money, when leveraging new and maintaining large community projects, it depletes quickly because bond interest is paid from this money too.

Because significant projects require large financial investment and there are limited funds, careful planning and the right timing is key to moving an appropriate number of projects forward. It helps ensure interest payments don't overly burden the funding source.

A good example
Consider a home purchase. Although the house may cost $200,000 to finance, homeowners will pay more than that because of interest. In addition, homeowners typically need funds for maintenance and repairs, such as roof, siding, or window replacement.

Note: Existing debt obligations for the Grand Hall (financed with sales tax) and other eligible financed projects limits significant new project spending by council before 2023, when the existing financial obligations expire.

Here is an opportunity to provide input on Mankato's city service delivery. We're interested in your ideas where money should be spent. Budgeted amounts are examples and should be considered an estimate for actual, future costs. Share feedback using Mankato's budget allocator.

Through voter approval, the city of Mankato has been authorized to extend the existing one-half of one percent (0.5%) local sales tax until 2038 to finance $47 million in construction and improvement of public safety emergency communications, flood control and levee system improvements, regional water quality, expansion of multi-model transit facilities, existing and new recreational facilities, matching grants for publicly owned historic museum, supportive housing, senior citizen center, and improvements to governmental entities outside the city of Mankato.

The real picture
While $47 million is a lot of money, when leveraging new and maintaining large community projects, it depletes quickly because bond interest is paid from this money too.

Because significant projects require large financial investment and there are limited funds, careful planning and the right timing is key to moving an appropriate number of projects forward. It helps ensure interest payments don't overly burden the funding source.

A good example
Consider a home purchase. Although the house may cost $200,000 to finance, homeowners will pay more than that because of interest. In addition, homeowners typically need funds for maintenance and repairs, such as roof, siding, or window replacement.

Note: Existing debt obligations for the Grand Hall (financed with sales tax) and other eligible financed projects limits significant new project spending by council before 2023, when the existing financial obligations expire.

Here is an opportunity to provide input on Mankato's city service delivery. We're interested in your ideas where money should be spent. Budgeted amounts are examples and should be considered an estimate for actual, future costs. Share feedback using Mankato's budget allocator.