Grand Forks City Council member Doug Christensen is a brave one. To suggest a new city sales tax at a time when taxpayers seem to be in such a restive mood, a politician has to be either brave or crazy, especially when a new sales tax would do little to reduce the burden of property taxes.
But propose it he did at today’s quarterly meeting of local government leaders, which also included leaders from the county, the school and park districts.
The context was the county’s proposed sales tax hike to pay for the jail. Voters, it seems, have not been pleased with the county raising their property taxes by 8.26 mills because the county miscalculated jail finances.
But if the county did this, Doug figured, it would put Grand Forks’ Industrial Park in a pickle. The city has to expand the park because there’s no room for new factories. There’s not much money available either and Doug had been thinking about paying for it with a sales tax.
Since the city’s got its needs and the county’s got its needs and the Park District is dreaming of a new fitness center, he figured a shared sales tax could give everyone what they need.
Council President Hal Gershman and Council member Curt Kreun were at the meeting also and they seemed to agree with Doug but they didn’t really make their own case for it.
The county people seemed unenthused. I think they know they’ve upset the voters and feel that this sales tax is a way out. All they’ve gotta do is put it in place, wait four years, and then cut it and the jail problem goes away. They probably don’t need a simple plan like that complicated by Doug’s creativity.
John Staley, the Park District chief, however, was quite pleased to hear the city wants to give him money.
Doug asked me later what I thought of his plan and I said I thought his reasoning was sound. However, I said, a less charitable interpretation is that Doug threw it out there to pre-empt the county since, as he noted, if the county passed its sales tax the city will have little chance of passing a sales tax on top of that. I’ve not known city officials to be so willing to share revenue.
Doug said that that was no the case. He wants what’s best for the community so a sales tax that helps all is a good idea. Besides, he said, it’s time the local government entities coordinate more.
I really don’t see how he can sell this proposal, though.
Look at this state document and see what other cities statewide are doing. A majority are at 1 percent and some at 2 percent. We’re now at 1 3/4 percent.
If we add 1 percent as the county and Doug apparently wants, that would be 2 3/4 percent, the highest sales tax rate in the state. It’s even higher than Medora, which has 2 1/2 percent. Medora can pull that off because it’s the state’s most popular tourist destination. Grand Forks ain’t nothing like that and we gotta compete with Fargo for the shoppers.
Hal, who has a couple of liquor stores and a hotel, said he’s only gonna go as high as 1/4 percent. Retailers like him are well aware of how price and tax conscious shoppers are.
Doug said 1/4 percent would pay only for the Industrial Park and no more.
History also suggests Doug might have trouble.
Remember Mayor Mike Brown‘s state of the city address in 2003? He suggested a 1 1/4 percent sales tax for a water park, economic development and street and dike maintenance. The council pretty much reamed him a new one. Some council members then pushed the proposal down to 1/4 percent. The voters still rejected it.
Has anything changed since then?
Voters, I think, are angrier about taxes. They’re certainly more organized. Former Council member Terry Bjerke, for instance, has organized some sort of anti-tax group. Last I heard, he was trying to start some protest against the school district.
The 2003 fear that regional and Canadian shoppers will bypass Grand Forks to shop in Fargo due to high taxes are a little less credible these days since gas costs so much more. This logic may not apply to Canadians, though, since they’re used to high gas prices.
What do you all think? Out of all the uses for the sales tax, I thought the Industrial Park expansion was the best since more jobs is pretty much at the top of the agenda for local government.
Well I don’t think this tax idea will fly. My opinion is that area residents are fed up with taxes, and will not accept any more. In fact many feel we should repeal som e of the current ones. Yes Terry B has a state wide group that will attack every tax attempt made by local and state groups. Tax revolt building ? Hope so. Lets spend down the reserves, cut services, etc. NO NEW TAXES ! Thanks. greenglass4.
NO MORE TAXES!!! What is wrong with Doug?? There is absolutely no logic to raising the sales tax, this city needs a finanical overhaul, how can other cities like Minot and Bismarck make it and we can’t? With a higher non discriminating tax like sales tax, we will drive not only canadians away but area shoppers as well! Unbelievible, the city and county are on a uncontrolled spending spree and need to be voted out or start taking control!
Hmmm … Xcel Energy gets another $90/year … Gas tax is going up … The Alerus “sunset” tax …. $5 to park at the Alerus, which we are paying for … If a business wants in, let them pay for the land and get a short-term tax break. Where does it end for the average citizen who is literally being nickeled-and-dimed to death. And let’s not forget what the county wants. Ouch – Enough is enough! Perhpas we should rename out city GRANT Forks.
I’ve heard rumor that Doug wants to run for Mayor.
This sure isn’t a way to round up support.
I fear that if the count get their “home rule” charter, that they will be able to implement another tax at any time. I have a tough time thinking that they can manage themsleves.
I guess I will vote no on any tax that comes up.
I’m fed up with Grand Forks, I’ve lived here all my life, I’m 52 and I think its time to move on. My kids have moved away and they say dad how can you stand it. Well I can’t. Between the property taxes constantly going up and the mismanage of this city its time to say good by.
Here’s a quote from the Herald article:
“But county leaders say they have little choice. Voters have told them a sales tax is preferable to the 8.26 mills in property taxes now going to the jail. At any rate, county projections show that a 1 percent sales tax could pay off the jail in four years.
The voters have not told the county a sales tax is preferable to anything. A few people were polled by phone and asked loaded questions practically guaranteeing the county would get the answers they were seeking.
As for a sales tax being in place for four years and being dedicated to pay off the jail, don’t be fooled into believing that. County commission chair Triplett stated in a Herald article that a portion would be used to pay off the jail and indicated she thought the county should have an economic development fund.
The park board stated that membership fees would pay for a new building but they are now lining up for sales tax receipts.
When the city council decided to build the public safety building, that was a want and not a need, I asked council members about upcoming financial needs. The ones I spoke to said there was no problem with upcoming projects.
I think the solution to this is clear. We need to reject all tax increases at the ballot box and throw out all the politicians that are advocating the increases. The taxpayers in this city and county can’t take anymore of this type of government mismanagement.
Christianson says we need to increase taxes to support economic development. Our industrial park is now full.
Don’t you expect economic development to lower taxes? After all more businesses mean more workers. They as well as the business will all pay taxes.
What we’ve seen is the exact opposite. The more the city grows the more they want to raise taxes.
What a bunch of worthless jerks we have running the various taxing entities in this area. And shame on the Herald for promoting their screwy ideas.
I read the Herald story which I thought was all one-sided in favor of the tax increase.
Thank you for putting the other considerations on your Blog Tu Uyen.
PB gets it ..if the various govermental entites want big projects such as a Wellness Center the proponent(Park Board) should identify a source of revenue to pay for the same other than property taxes.
As the Project now stand the Park Board would like to approve the construction of a a Wellness Center without a vote of the people.
One way to insure that the Project is put to a vote of the people voted is to suggest that the same be paid for by a sales tax.. If the Project is to be paid for by a sales tax any increase in the existing city sales tax will have to be approved by a vote of the people..
If the Project is to be fund in part by a sales tax the matter will have to be voted on which will give the people the right decide if the Project is a “want” or a “need”.
There’s no way a “wellness center” should be paid by a tax.
If someone wants to build it they should risk their own money.
“Worthless jerks?” Where do you come up with this crap? I keep telling ya, if you’re so smart, run for public office. Otherwise, show a little respect, if not for the people, at least for the office and the responsibilities that come with it. What kind of worthless jerk calls people names while protected by anonymity?
Anyway, I agree there should be a vote on all these sales taxes. Voters deserve that much.
I know many of the guys on the city council. I can respect them for their day jobs, but they’ve been royally screwing up the city, school districts, park board and county.
As far as running for office I do not believe a person should do that while they have children at home.
Don’t you think that the increase revenue from the new businesses (and their employees) in the Industrial park should fund expansion of the Industrial Park? If it actually costs us money why should we have it?
Alerus, wellness center, golf course, industrial park, et al. These are all projects that should have been developed by the private sector, or not developed at all.
Speaking of the county has the Herald run any stories documenting the plethora of ways the county has attempted to cut spending before they jacked up property taxes (and proposed a new sales tax?)
When I first heard about this idea earlier today, I just about fell out of my chair. Are you kidding me? The taxes are too high in this city to begin with, now you want to tax us some more? What part of the message are the council members not getting?
I’ve lived here almost my whole life, I’m 39, and even the talk of this is driving me to look elsewhere. I love this place, but enough is enough.
Raising our tax bills (faster than inflation) is not OK!
I had yet to read the paper today, and was talking to a friend who mentioned this tax hike idea. I interupted him and said “oh, for the Landfill, new water plant, and the Jail”. He said no for a fitness center & Industrial park. I was speechless! I am confused now to what a want and need are. Could anyone explain this to me?
Furstrated homeowner
Frustrated Homeowner – Here’s your answer:
WANT – What Doug Christenson knows he wants.
NEED – What Dough Christenson knows you need because he wants it.
pretty frustrating talk when I just got a notice yesterday from my bank saying my property tax increase caused an $85.00 increase in my monthly house payment. Apparently my valuation went up $21,000…for no apparent reason. Again, to echo other sentiments, I love living in this town, but when is enough enough??
Ben first of all property taxes don’t go up because of housing valuations assuming everyone’s valuation goes up about the same.
The reason it’s gone up is because the various taxing entities are increasing spending a multiples of the rate of inflation.
In short they are greedy and thoughtless.
In fact the Herald gave a platform for a school board member to lie and say that per pupil spending has stayed in line with inflation. What we’ve seen in the last several years is that they’ve increase spending at twice the rate of inflation.
They blame the state for somehow giving them less, when they are increasing spending.
http://sayanythingblog.com/entry/grand_forks_school_board_member_lies_about_grand_forks_school_funding/
And they’ve been getting away with it because an uninformed public is easily misled. I’m not saying you but the majority of GF citizens haven’t been told the truth.
What is the total local city sales tax in Grand Forks? When I lived there 7 months ago, I believe it was at 6.75%/dollar. Alcohol was obviously higher. Now they want to bump it another 1% correct?
That’s still less than what I pay in Duluth, MN. Right now, the local city sales tax is 9%, and that’s with a city that is running a $300+ Million debt right now.
Go Figure.
To answer the “Whistler’s” questions :there has been increasing spending by the city, the county, the park board, and the school board. We need to CUT SERVICES ! and decrease spending, unless the leaders pay more on their taxes. Yes the uninformed public has been misled by the fast talkers on the city council and county. Please tell the truth, you guys. And call Terry B to question any and all new taxes in this city/county. greenglass4.
I don’t know that we have to cut services as much as be careful with our money. We’ve seen a 28% increase in city taxation, a 39% increase in school taxation (with declining enrollments), a 72% increase in parks taxation,a 74% increase in county taxation.
Those figures are since 1997, adjusted for inflation and property taxes only.
My question is are the services we are receiving really worth that increase in taxation. My response wouldn’t merely be no, but HECK NO.
We need to demand the services we were happy with in 1997 for the price (adjusted for inflation) that we paid in 1997.
Source: http://afpnd.info/gf_report.pdf
School enrollment went down 21% over that time according to the same source.
Doug should push this sales tax as hard as he can…Then we won’t have to campaign for his challenger when he is up for re-election. He will oust himself!!!
Go Doug Go!!!
Obviously the tax idea is a dead fish! Tu – where is Doug’s stance on this? Is he ignorent of the people of this city? Can he justicify raising a non discriminating tax, sales tax, that unfairly taxes the poor and middleclasses and is less of a burden on the rich? I understand that other cities nationwide like Duluth have higher taxes, but their property taxes are no where close to what a citizen in GFK, ND pays. He has obviously a lot of angery and upset citizens to answer to just on this blog alone…. Where is his justicification? And it better not be for a public wellness center (which is over priced to be a member of) that only a few attend….