Cottage Grove has two methods for raising funds for a backlog of street repairs
Measure 20-365: authorizes the city to issue a bond for street repairs
Measure 20-366: raises the gas tax
Measure 20-365: City of Cottage Grove General obligation bonds to fix streets.
Report Title: Measure 20-365: City of Cottage Grove General obligation bonds to fix streets. Official Title: General Obligations Bonds to Fix Streets.
Referral: The measure was referred from the City of Cottage Grove.
Financial impact: The measure would authorize the City of Cottage Grove to issue $2,500,000 of general obligation bonds to fix streets. If the bonds are approved, they will be payable from taxes on property or property ownership. The City would levy taxes on property ownership to repay the bonds for five years. The estimated annual tax rate would be $0.05 per $1,000 of assessed value.
Yes” vote: A “yes” vote supports the issuance of $2,500,000 of general obligation bonds to fix streets. If this measure is approved, it will authorize the City of Cottage Grove to issue the bonds.
“No” vote: A “no” vote opposes the issuance of the bonds. If the measure is not approved, the City will not be authorized to issue the bonds.
Background: The City of Cottage Grove has a backlog of $35,000,000 in needed street repairs and maintenance. In 2023, the Cottage Grove City Council formed an Ad Hoc Street Improvement and Funding Committee to review needed street improvements and investigate potential funding mechanisms to finance those needs. The Committee concluded that no one funding mechanism could meet the total needs and ultimately recommended utilizing a number of funding mechanisms, including a five-year bond measure dedicated to street repairs. Some of the other recommended funding mechanisms included an increase to the gas tax, Limited Improvement Districts for local residential street improvements, a Transportation Utility Fee for certain roads, continued pursuit of grants, and a partnership with LTD to improve roads or offset wear from LTD buses. Based on the Committee’s recommendation, the City Council referred this measure to the voters asking for approval of the proposed issuance of $2,500,000 in general obligation bonds. Proceeds from the proposed bonds would be used to fund repairs to the following streets: Row River Road from Thornton to Currin Connector; Taylor Ave from Gateway to 6th Street; and Harrison Ave from Hwy 99 to R Street. If the bonds are issued, the City will establish a citizen oversight committee to ensure proceeds are used for the purposes indicated.
Supporters say:
The City of Cottage Grove has a backlog of $35,000,000 in street repairs and maintenance. Approval of the proposed bonds will provide funds to the City of Cottage Grove to undertake some of those needed street repairs.
Opponents say:
The community is small and includes residents on fixed incomes. The additional tax would place a burden on them.
Measure 20-366: Increase of City of Cottage Grove gas tax to $.09 per gallon.
Report Title: Measure 20-366: Increase of City of Cottage Grove gas tax to $.09 per gallon.
Official Title: Increase City Gas Tax to $.09 per Gallon. Referral: The measure was referred from the City of Cottage Grove.
Financial impact: The City of Cottage Grove currently imposes a gas tax of $.03 per gallon. If this measure is passed the City’s gas tax would increase to $.09 per gallon. The increased tax rate would go into effect January 1, 2025.
“Yes” vote: A “yes” supports the proposed increase of the City of Cottage of Grove gas tax from $.03 per gallon to $.09 per gallon. If the measure is approved the City’s gas tax will increase from $.03 per gallon to $.09 per gallon.
“No” vote: A “no” vote opposes the proposed increase in the City of Cottage Grove gas tax. If the measure is not approved, the City of Cottage Grove gas tax will not be increased and will remain at $.03 per gallon.
Background: The City of Cottage Grove has a backlog of $35,000,000 in needed street repairs and maintenance. In 2023, the Cottage Grove City Council formed an Ad Hoc Street Improvement and Funding Committee to review needed street improvements and investigate potential funding mechanisms to finance those needs. The Committee concluded that no one funding mechanism could meet the total needs and ultimately recommended the utilization of a number of funding mechanisms, including an increase to the City’s gas tax from $.03 per gallon to $.09 per gallon. Some of the other recommended funding mechanisms included a five-year bond measure dedicated to street repairs, Limited Improvement Districts for local residential street improvements, a Transportation Utility Fee for certain roads, continued pursuit of grants, and a partnership with LTD to improve roads or offset wear from LTD buses. The City of Cottage Grove currently imposes a gas tax of $.03 per gallon. The City’s gas tax is used exclusively to construct, reconstruct, improve, repair, maintain, and operate public highways, roads, and streets within the City. Based on the Committee’s recommendation, the City Council referred this measure to the voters asking for approval to raise the gas tax from $.03 per gallon to $.09 per gallon. It is anticipated that the proposed measure will generate approximately $750,000 per year to be dedicated to street repair and maintenance.
Supporters say: The measure will provide an on-going source of additional funds to the City of Cottage Grove to be used for needed street repairs and maintenance.
Opponents say: The community is small and includes residents on fixed incomes. The additional tax would place a burden on them.