Council votes to investigate sales tax

The University of Minnesota Extension office approached the City of Waseca the morning of the Tuesday, May 2 city council meeting with the idea of adding a city sales tax to purchases within city limits.

The possibility led to an energetic discussion, eventually leading to instructions from the council to have city staff research the possibility of implementing the tax.

According to some research, a city sales tax would help speed up the process for some very desirable developments, including a community center and some road improvements.

While city council representative Jeremy Conrath consented that such growth would be beneficial, he said, “”You know what else I hear in the community? ‘We’re taxed too much.’

“I don’t think we’re looking at a very good tax levy for 2024,” continued Conrath.

Council member John Mansfield agreed. “As a small business owner, I’m not enthusiastic about adding any more taxes.” Mansfield pointed out that sales paid for using cards are not as profitable as those where cash is offered, forcing him to raise prices. “I’m wary about adding another sales tax,” he said. “I would have to adjust my prices for that.” He also stated that, thanks to inflation, people seem to be spending less.

Council member Stacey Schroeder pointed out that any additional tax would be levied on visitors as well as residents.  “This is a tax on anybody coming through the city,” she said. “People coming to softball tournaments, hockey tournaments…anybody spending money here would get taxed, and it benefits us.”

Mayor Randy Zimmerman added to her point by saying that many other cities around Waseca have already implemented a sales tax. 

He also pointed out that last week’s action was only the start of any process that might lead to a sales tax. City staff was authorized to spend up to $3,000 acquiring information about the costs and potential benefits of adding the tax. 

“It’s all community driven,” he said. “We’ll have community meetings to decide what the money will be used for. This tax has to go on the ballot to even be approved.”

Council member James Ebertowski, who initially seemed to be siding against the idea of researching the sales tax, changed his mind. “At least if we do the research, this goes to the polls and there’s no taxation without representation,” he said.

Also part of the discussion was the possibility of having the local economic development agency (EDA) help cover the $3,000 cost. This was made part of the motion with the understanding that if the EDA did not assist, the research would still take place. 

The motion in support of spending money to research the tax was approved 6-1, with Conrath opposing.

Reports and presentations

Jeremiah Miller, a Waseca resident and leader of non-profit Free Flags for Vets, notified the council about an event coming up on May 11 to spread awareness on mental health.

Waseca High School will be hosting a speaker from Florida, Jeff Yelden, to speak about suicide awareness. “He will speak to the high school faculty early in the morning and to the high school students before lunch,” Miller said. “We will open it up to the public in the evening.”

Many other organizations will be there to be part of a panel discussing mental health awareness and invites anyone that may be interested to have a table at the event to contact him.

It is encouraged to also wear green on May 11 as part of a “green out” to spread mental health awareness.

“You may not be personally dealing with mental health issues, but you’ll run into somebody that might,” he said. “It’s good to have a background to know what to do.”

City manager Carl Sonnenburg had plenty of items to report to the council. The main one was about three city parks being vandalized; an aside on this issue will be in this week’s paper.

He also reported that the council didn’t receive any bids on the Gaiter Lake request for proposals (RFP). The city is looking for direction on the next steps concerning the project.

The council did discuss the Gaiter Lake project concern as the meeting was about to conclude due to Sonnenburg asking again for direction. Ten minutes of discussion ensued during which Mansfield said that it wasn’t the job of the city council to develop land or housing and council member Mark Christiansen again raised concerns that Waseca already has little to no housing available.

“People want to move to Waseca,” Christiansen said. “We only have a few lots left to develop. When they’re gone, they’re gone.”

“How many times have we heard that the city isn’t doing anything to increase the tax base, to grow the city?” Schroeder asked. “We’re a bedroom community about to be put to bed. We need to bring this to a work session and figure out an efficient way to do something about this.”

When Sonnenburg asked if the city would have the appetite to become the land developers of Gaiter Lake, Schroeder said yes while Mansfield simultaneously said no.

“Carl, we do this at the end of every meeting,” Mansfield said. “We need this discussion at the beginning of the meeting. We don’t even have the information to have this discussion. This question doesn’t need to be answered right now.”

The meeting adjourned at 8:12 p.m.