Frequently Asked Questions
To find specific questions about each facility project, check out each of their FAQ pages.
About the Plan
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In 2021, the City completed a comprehensive Municipal Facilities Study, which revealed that the existing Public Works, Police, and Fire Department facilities are outdated and no longer able to support the efficient and effective delivery of city services. The study also found that City Hall no longer meets the City's operational needs, space requirements, or goals for community engagement.
To continue providing safe, reliable, and high-quality services, the City plans to modernize its core service facilities. This includes updating or replacing aging buildings to meet both current demands and future needs.
This effort is designed to enhance public safety, improve emergency response capabilities, and ensure that City operations remain adaptive, inclusive, and sustainable for years to come. The investment plan is informed by a combination of internal evaluations, independent expert analysis, and extensive community feedback.
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From community meetings to survey responses, and a community task force representing residents, businesses, and City staff, residents have helped the City identify its top priorities for improving public services.
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When built, the Public Works and Public Safety buildings were not designed with gender diversity in mind and were exclusively built for the use of men. The new facilities provide an opportunity to remove barriers and create a more inclusive physical workspace, specifically restrooms and locker rooms, that help to meet needs of the City’s current and future workforce.
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The planning and design processes will lay out the City’s redevelopment, and once the Building Forward process is further along, the City will need to decide the viability of reuse. The City will continue to work with residents to identify opportunities and priorities for new investments.
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In addition to contracts related to each facility, the City has hired Tegra Group, Inc. as an Owner’s Representative. You can see their contract and information here (PDF).
How Cities Acquire Property in Minnesota
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There are several legal methods a City can use to acquire property. Each approach depends on the situation, the property owner’s willingness, and the City’s goals.
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Some of the most common methods include:
Direct Negotiation – The City and the property owner agree on terms, and the property is sold voluntarily.
Friendly Condemnation – The City uses its legal authority to acquire the property, but the property owner is cooperative, and both sides work together to reach an agreement.
Full Condemnation – When an agreement can’t be reached, the City may proceed through the full eminent domain process, which includes a legal proceeding to determine fair compensation.
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Yes! Cities have a range of tools available for property acquisition, depending on the need. These may include tax-forfeited land transfers, donations, or property exchanges. The right approach depends on the unique circumstances of each property.
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Friendly condemnation allows the City to move forward with the project while still collaborating with the property owner and ensuring they receive fair compensation. It also helps streamline legal processes that may be necessary for project timelines.
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If you’d like to learn more about the statutory authority of Cities when it comes to acquiring real estate, take a look at League of Minnesota Cities’ information memo on the Purchase and Sale of Real Property.
About Project Costs
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If the City waited to fund construction until the revenue came in from sales tax collections, the projects would cost several times more than today’s amount and take much longer to complete.
Much like a family that uses a mortgage to purchase a house, the City will use bonds to finance the construction and pay them back over 20 to 30 years. More importantly, Golden Valley residents will start to benefit from the investment over the next two to three years, instead of many years down the road.
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Property taxes help fund local services such as school districts, libraries, and city operations. The portion allocated to the City of Golden Valley primarily goes into its General Fund budget to support the operation of core public services, such as police and fire service, street and park maintenance, engineering, and community development, to name a few. Major capital improvements are financed through either bonds funded by property taxes (debt levy) or bonds funded through alternative financing sources such as local sales tax.
Occasionally, cities experience infrastructure challenges that require additional investments beyond what property tax collections can provide. The City Council chose a local sales tax over increasing property taxes to support these projects so the cost will be spread among residents and nonresidents who benefit from Golden Valley’s public services.
About 61.6 percent of the funds collected from the sales tax will come from nonresidents who purchase goods and services in the city, according to a study by the University of Minnesota. That means $64.7 million of the $105 million cost for the projects will be paid by nonresidents. If the City were to fund the new buildings with a property tax increase, the cost would be approximately an additional $514 per year on a median-valued $400,000 home.
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Every year the City pays off bonds and issues new bonds. All of the City’s long-term bonding liabilities and final maturity dates are listed in the City’s Annual Comprehensive Financial Reports, which are available online. To see a list of the City’s long-term liabilities as of December 31 of each year, go to the Annual Comprehensive financial report and look for Note 6 Long-Term Liabilities. There you’ll find detailed information on the outstanding debt for the City. The City, along with its municipal adviser, continuously reviews long-term liabilities for potential savings through refinancing and early payoff.
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The bonds for Brookview Golden Valley will be paid off in 2037.
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Property taxes help fund local services such as school districts, libraries, and city operations. The portion allocated to the City of Golden Valley primarily goes into its General Fund budget to support the operation of core public services, such as police and fire service, street and park maintenance, engineering, and community development, to name a few. Major capital improvements are financed through either bonds funded by property taxes (debt levy) or bonds funded through alternative financing sources such as local sales tax.
Occasionally, cities experience infrastructure challenges that require additional investments beyond what property tax collections can provide. The City Council chose a local sales tax over increasing property taxes to support these projects so the cost would be spread among residents and nonresidents who benefit from Golden Valley’s public services.
About 61.6 percent of the funds collected from the sales tax would come from nonresidents who purchase goods and services in the city, according to a study by the University of Minnesota. That means $64.7 million of the $105 million cost for the projects would be paid by nonresidents. If the City were to fund the new buildings with a property tax increase, the cost would be approximately an additional $514 per year on a median-valued $400,000 home.
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When consumers go to purchase a car, the price of the car is listed first, plus notations for additional costs such as taxes or financing costs. For clarity, the City has taken the same approach with the Building Forward projects. That is why the City starts with $105 million for the cost of the new buildings ($45 million each) and land for a new Public Works building ($15 million). Then, the City notes there will be additional financing costs that includes interest and bond issuance expenses.
Currently, the City projects that interest and financing costs for 30-year issuance could total $85 million, though that estimate could be lower if interest rates decline or if the City repays the bonds faster.
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Yes. If funding for the projects is approved, the City will explore ways to reduce costs and improve efficiency throughout the construction process. Further, the City will take advantage of better financing terms when such opportunities present themselves.
About the Sales Tax
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The City Council chose a local sales tax over a property tax increase so the cost of the projects will be spread among residents and nonresidents who benefit from Golden Valley’s public services.
About 61.6 percent of the funds collected from the sales tax will come from nonresidents who purchase goods and services in the city, according to a study by the University of Minnesota. That means $64.7 million of the cost of the investment plan would be paid by nonresidents.
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If approved by voters, the 1.25 percent local sales tax will generate 1¼ cents for every dollar spent — that is, an additional 10 cents for every $8 spent.
For Golden Valley residents, the cost of the local sales tax is estimated to be $118.65 a year per resident, or about $9.83 a month, according to research by the University of Minnesota. In contrast, if the city pursued a property tax increase to fund the plan, owners of a $400,000 home would pay an additional $514 per year in property taxes, or $42.83 per month.
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Funds generated by the local sales tax can only support the projects approved by Golden Valley voters on November 7, 2023. That is state law. Dedicating the funds toward other priorities would require separate authorization from the Minnesota State Legislature and Golden Valley voters.
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No. The 1.25 percent local sales tax will be in place for up to 30 years or until its funding obligations are fulfilled, whichever comes first. For it to be renewed, the State Legislature and Golden Valley voters would need to approve its extension.
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The local sales tax includes the same exemptions as the state sales tax, including clothing, groceries, baby products, and feminine hygiene products. The Minnesota Department of Revenue outlines a full list of nontaxable items, here.
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After studying the economic effects of a local sales tax in several cities across the state, the University of Minnesota found little evidence that overall sales growth for businesses was impacted.
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Dozens of cities and counties across Minnesota have turned to a local sales tax to invest in public projects that benefit communities. Recent examples include Edina (for parks and recreation improvements), Maple Grove (for a new community center), Grand Rapids (civic center investments), and Itasca County (new Justice Center).
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In general, Amazon applies the combined state and local sales tax rates of the address where the order is delivered to or fulfilled from.
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No. The local sales tax would not apply to the sale of motorized vehicles such as cars, motorcycles, motor homes, trucks, tractors, and vans. The local sales tax will be collected on the same types of purchases as the state sales tax and follow the same exemptions. Instead of imposing a state sales tax on most vehicle purchases, the State of Minnesota collects a separate Motor Vehicle Sales Tax (6.875 percent).
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The total sales tax in Golden Valley will be 9.775 percent, beginning April 1, 2024. The following is a review of how the sales tax collection would be divided:
MN State Sales Tax: 6.875%
Hennepin County: .150%
Hennepin County Transit: .500%
Metro Area Transportation: .750%
Metro Area Tax for Housing: .250%
City of Golden Valley: .1250% (On the Nov 7, 2023 ballot.)
TOTAL: 9.775
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Sales tax information for all Minnesota cities and counties can be found on the Minnesota Department of Revenue website.
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The City commissioned the University of Minnesota Extension Center for Community Vitality to provide an analysis of the local option sales tax to estimate contributions that would be made by both residents and nonresidents. Researchers used sales data from 2011-2021 provided by the Minnesota Department of Revenue.
As part of its analysis, the University reviewed the City’s retail and service sales in various merchandise categories, including furniture, electronics/appliances, and gas/convenience stores, among others. In 2021, Golden Valley saw total taxable sales reach $571 million.