Frequently Asked Questions

About the Plan

  • Golden Valley residents rely on the City to provide a wide range of essential services, such as maintaining streets, parks, and water and sewer systems and providing emergency response and public safety.

    Over the past several years, the City has been assessing its aging public buildings to determine where improvements are needed. It concluded that the buildings that house the Police, Fire, and Public Works Departments can no longer adequately support the efficient delivery of City services.

    That is why the City has put forward a new long-term plan, called Building Forward, that will invest $105 million for the land and construction of a new Public Works building and a new Public Safety building that will serve as the headquarters for the Police and Fire Departments.

  • The City’s Public Works operations would be relocated outside of downtown Golden Valley where a new Public Works building will be built. Then, a new Public Safety building will be constructed near the site of the current Public Works buildings and serve as Police and Fire headquarters.

    The new Public Safety building will create more functional work and training spaces. It would modernize and streamline emergency response and public safety systems. The new Public Works building will consolidate operations and provide more efficient storage and work spaces. This would improve overall operational efficiencies for a variety of Public Works services, including water, sewer, and stormwater systems; road maintenance and snow removal; park and trail maintenance; and more.

  • The new 1.25 percent local sales tax over a 30-year period will cover the cost of the projects as listed:

    • $15 million to acquire land outside of downtown Golden Valley for a new Public Works building

    • $45 million to build the new Public Works building

    • $45 million to build a new Police and Fire headquarters building

  • Over the last seven years, the City has pursued an extensive facility needs review process to gain a better understanding of the challenges at its aging buildings.

    During that time, residents played an important role in helping identify top priorities for new investments through community meetings, surveys, and a task force. The City then developed an investment plan that State lawmakers reviewed during the 2023 legislative session and authorized it to present a 1.25 percent local sales tax option to voters on November 7, 2023.

  • 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.

  • The Fire Department headquarters in the new Public Safety building will continue to provide comprehensive services to the central and western parts of Golden Valley.

    Meanwhile, the City is consolidating Stations 2 and 3 into a new East Fire Station along the Hwy 100 corridor. As the roads surrounding Golden Valley have changed over time, the location of Stations 2 and 3 no longer support an optimal four-minute response time. Relocating into the new East Fire Station will provide better coverage for the east side of the city. The consolidation is being funded by state bonding dollars.

  • More details of the building and design plans will come forward in 2024 when the city will move forward with a design and development phase with input from property owners and residents.

  • The City is committed to helping residents get the information they need about the Building Forward plan. The Building Forward website was created to help ensure that residents have an easy-to-use resource that explains the projects, the long-term challenges they address, the cost, and tax impact, as well as various reports and other background materials.

    All residents are encouraged to learn more about the plan at BuildingForwardGV.org.

  • The City Hall campus plan lays out redevelopment options, and once the Building Forward process is further along, the City will need to decide the viability of reuse.

  • 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.

  • The new Public Works building will be located outside of downtown, but a location has not been selected. In 2024, City officials will work to find the best location that can accommodate the size of the building, provide adequate access to roadways, and fall within the expected budget.

    The new Public Safety building wil be located at the site of the current Public Works buildings.

  • No. The Building Forward plan focuses solely on investments in new Public Works and Public Safety buildings to improve the delivery of essential city services. The City’s long-term plan for other City facilities can be found in the Municipal Facilities Master Plan Study that was completed in 2021.

Our Challenges

  • The Public Works Department is responsible for managing a wide range of essential public infrastructure and services, such as water, sanitary sewer, and storm water systems; road maintenance and snow removal; park and trail maintenance; and more. These operations are spread across three different buildings, meaning staff often must travel between buildings to carry out their essential jobs, leading to lag times in services and increased labor costs.

    Inadequate space at these buildings also means they cannot accommodate today’s larger vehicles and equipment, equitable and inclusive accommodations for staff, and are not fully ADA compliant.

  • The Public Safety building does not provide adequate space for modern Fire Department and Police Department operations, specifically for training, equipment storage, and equitable and inclusive restrooms and locker rooms.

    Additionally, the configurations of the City’s fire stations do not meet today’s standards for protecting firefighters’ health and safety. Because they do not allow for living accommodations that would support a 24-hour firefighter duty crew, the City has faced challenges in retaining and attracting firefighters.

  • Currently, Golden Valley’s fire stations only support an on-call staffing model because their configurations do not allow for living and eating quarters. Because today’s workers juggle more family and job obligations and need regular shifts, this staffing model has posed challenges in retaining and recruiting firefighting staff.

    The new Public Safety building will include adequate sleeping quarters and a kitchen, allowing the City to transition to a 24-hour firefighter duty crew and provide firefighters with the regular shifts they need.

About the Sales Tax and Cost

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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).

  • 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 both principal and interest each month. 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.

  • In general, Amazon applies the combined state and local sales tax rates of the address where the order is delivered to or fulfilled from. 

  • 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).

  • 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.

  • 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

  • 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, 2022, go to the 2022 Annual Comprehensive Financial Report and search for page 77 of 190 (actual page number is 48). The City, along with its municipal financial adviser, continuously reviews long-term liabilities for potential savings through refinancing and early payoff.

  • Sales tax information for all Minnesota cities and counties can be found on the Minnesota Department of Revenue website.

  • The bonds for Brookview Golden Valley will be paid off in 2037.

  • 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.

  • 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.

  • Moving the Public Works building will create new opportunities for private redevelopment in downtown Golden Valley. The City will continue to work with residents to identify opportunities and priorities for new investments.

    In December 2021, the City collaborated with technical experts to develop its Municipal Facilities Master Plan Study. The study combined the City’s long-term goals and needs assessments to create plans for the future of downtown Golden Valley and its facilities.

  • 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.

  • 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.

To learn more, visit our resources page.