Rochester leaders map out city sales tax spending

ROCHESTER, Minn. (KTTC) – It's been almost one year since Rochester voters approved a more than $200 million sales tax. City leaders sat down Monday to determine how the funds will be spent.

The city says the collected money will go toward four areas: economic vitality, street reconstruction, flood control and a regional sports complex.

City leaders are looking to make sure the investments can have a bigger impact instead of spreading smaller investments out over time.

"Each specific investment can have a better impact than just spreading small investments out over time, we're able to leverage more goals quicker," Public Works Director Tyler Niemeyer said.

The city proposes a pool fund, allocating more investments toward economic vitality in the first five years.

"Identify whether it be a street project or potentially a sewer project to be able to expand capacity within that system, be able to create more additional housing," Irene Woodward said.

With funds collected, the city plans to incentivize housing creation for an estimated 500 units. The city will also contribute toward public infrastructure all with the goal of increasing available land for housing.

The city will collect approximately $15 million every year. Planners say the pool concept will limit the need to borrow funds for projects. However, the city still expects the need to borrow funds for the regional sports complex that has a price tag of $65 million.

"We have a west site, a southeast site and then a centrally located site that all meet the criteria that we're looking for in a sports complex," Assistant City Administrator Ryan Yetzer said.

City council is being asked to decide on a site this December.

Sales tax funds will also be used to use road reconstruction. According to Rochester Public Works, almost a quarter of city roads are rated to be in poor condition. Funds will be used to for pavement preservation and reconstruction of the poorly rated roads.

The sales tax will continue funding flood control. Public works estimated the current flood control system protects $1.5 billion in assets. With continued funding, the city will reinvest and enhance existing floodwalls and bank stabilization.

The sales tax was extended for a maximum of 24 years or until the projects are repaid, whichever comes first.