With one quarter of a billion dollars in transportation projects looming, Cook County commissioners have been looking for creative ways to finance them without laying the entire burden on local taxpayers.
Currently, the state and federal government pays much of the cost to improve roads and bridges for projects submitted by the county engineer, but bridging the funding gap falls on the local taxpayers.
Discussed at the county board workshop in June was a plan to establish a transportation tax that would generate about three quarters of a million dollars per year for the county.
Minnesota statute 297A.993 allows the county board to enact a transportation sales tax at a rate of up to one-half of one percent on retail sales and uses, and also establish an excise tax of $20 per motor vehicle purchased or acquired from any person engaged in the business of selling motor vehicles at retail.
Collection of this tax must be dedicated exclusively to payment of the capital costs of specified projects or improvements; payment of the costs, which may include both capital and operating costs, of a specific transit project or improvement; and payment of the capital costs of a Safe Routes to School program.
County Administrator Jeff Cadwell said a list of projects must be assembled and once the work has been done to complete them, the tax would end. Typically, he said, that would take about 20 years; however, he added the county board had the authority to end the tax any time it chooses to do so.
Commissioner Garry Gamble said if the county adopted this tax it would make Cook County the highest taxed county in the state, tied with Bemidji and St. Louis County at 8.38 percent. Gamble noted that Lake County also had a high sales tax rate of 6.87 cents per one dollar spent, and he wondered if that would affect tourists’ decision to come to Cook County.
Following up at the July 26 county board meeting, Commissioner Frank Moe said he was not in favor of the tax because he believed that not much of the money gained from it would go to fixing roads and bridges in his district.
Commissioner Jan Sivertson said she was in favor of the tax and in favor of holding a public meeting and Commissioner Ginny Storlie said she thought the tax sounded like a good idea but it needed to be explored further.
A public meeting will be held August 15 at 6 p.m. in the commissioner’ room at the Cook County courthouse to discuss implementing the sales and use tax for the county.
Road & Bridge sand and radios
At the request of Highway Engineer David Betts, commissioners awarded Isak Hansen & Sons the contract to furnish 2,500 cubic yards of sand to the county for its winter stockpiles at a price of $82,250. The expense is about the same as the county paid last year, Betts said.
Betts also requested permission to purchase four ARMER radios for $9,032.02 from Motorola Solutions, Inc. Betts said his department was short on hand-held radios, and he talked about the “dead spots” between Colvill and Croftville, places on the Pike Lake Road, spots on the Sawbill Trail and places on the Gunflint Trail that affected communications between his workers. He said until the communication towers were all erected in the county, the new radios would help fill those gaps.
Funds to pay for the radios would come from $12,000 in savings the county experienced in its last striping project, Betts said. The board unanimously approved the request for the highway department to purchase the radios.
Revolving Loan Fund to help renovate former Fenstad Motel
With the recommendation of the Cook County Revolving Loan Fund Committee the county board granted a $50,000 revolving loan to Keith Bergeron who will rehabilitate the former Fenstad Motel in Grand Marais.
Bergeron also applied for $25,000 more in revolving loan funds that he has qualified for and been approved for, but said he would not use that unless he absolutely had to.
Bergeron said he plans to live in one unit and rent three other units. When asked if he would be creating jobs, Bergeron replied that the first year he probably would not create any jobs but the following year he felt there would be a part-time snowplowing job and a part-time cleaning position to fill.
Karen Blackburn, who works in the Auditor’s Office and manages the revolving loan fund accounts, reminded commissioners that part of the mission of the revolving loan was to provide housing for area workers.
In other business
. The board approved a motion for the 2016 Emergency Management performance grant in the amount of $15,770, payable in 2017. This is an annual grant that is matched by the county. When the funds become available they will be used to purchase a command trailer for the local search and rescue squads.
EMS Director Jim Wiinanen said Search and Rescue now uses the hood of vehicle as a command center. He also said the sheriff told him that some of the matching funds for the grant could come from the sheriff’s department budget.
. The board approved a motion to allow a raffle to be held by the Mid-Trail Property Owners Association on August 10, 2016.
. A satisfaction and release of a septic system loan for Karlo and Betty Schultz was approved.
. Also approved was a motion to have the Government Management Group prepare Cook County’s Cost Allocation Plan for the years ending 2016 through 2020 at an annual cost of $3,600. The agreement allows Cook County to receive reimbursements from the federal government for the required administrative support the county provides for federal programs offered here.
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