What happens if the referendum does not pass?

The City’s 2023 legislation authorizing the sales tax will expire after 2024.  Minnesota Statute requires the election to be conducted within two years after the governing body of the political subdivision has received the authority to impose the sales tax.  Therefore, the City would need to obtain new legislative authorization if the City were to seek a new referendum beyond 2024. 

Any new authorization is further complicated by a temporary moratorium the Legislature enacted in 2023 prohibiting any new local sales taxes until after May 31, 2025.  This means that the earliest the City could seek new legislative approval for a sales tax request would be the 2026 legislative session.  Any new request would be subject to Legislative approval and would need to meet any new requirements imposed by the Legislature.

If the local sales tax is not approved, the City will need to continue to maintain and repair the existing facility.  The ongoing maintenance items and any more expensive capital repairs would need to be funded by the City budget.