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GOVERNMENT <br /> <br />Au mr <br /> <br />MichaelMontphisir, CPA <br /> 701-241-5601 <br /> <br />Treasurer <br /> <br />Charlotte Sandvik <br />70t-241-56ll <br /> <br /> Director of <br />Equaliza on <br /> <br /> Frank Klein <br /> 701.241-5616 <br /> <br />Box 2806 <br />211 Ninth Str L~t South <br />Fargo, North I)akota 58103 <br /> <br />October 24, 2002 <br /> <br />Board of County Commissioners <br />Cass County Government <br />211 9th St. S <br />Fargo ND 58103 <br /> <br />Re: Cass County Sales Tax <br /> <br />Dear Commissioners: <br /> <br />When we were looking at financing a new jail for Cass County, two financing <br />options property tax and sales tax werc considered. Within each of those two <br />options, the board considered what tax rate would bc needed to raise the funds for <br />"retirement of the general obligation debt, construction, maintenance, mid operation <br />ora county jail." The method the county eventually asked the voters to approve was <br />a one-half cent sales tax for a fottr-year period. The voters approved a one-half cant <br />sales tax to run from October 1, 1999 through September 30, 2003. The tax was <br />actually implemented through an ordinance passed by the Board of County <br />Commissioners and a contract signed with the North Dakota State Tax Department. <br /> <br /> It was hoped that a one-half cent tax for four years would allow the county to <br /> pumhase land, build and equip a jail, pay for the necessary transition and training <br /> costs, and set aside enough funds to construct the first addition to the jail when that <br /> became necessary. Commissioners made the commitment in numerous meetings <br /> throughout the county that once the funds were raised to meet all these needs, <br /> estimated at approximately $24 million, the county would stop collecting fue sales <br /> tax. The county board made provisions for just that type of action when they <br /> adopted Ordinance #1999-1 implementing the sales tax collections. <br /> At this time, the new jail is operational. The county has invested a little over $21 <br /> million to get the jail to this point, and no debt is connected with the jail; in fact, the <br /> county has not dunc any borrowing from outside sources during the jail project. Wc <br /> have collected a little over $21 million in sales taxes and have collected total <br /> revenues of just over $22 million. The additional revenues are from grants, cost <br /> share with the U.S. Marshal's Service, and interest income. <br /> It is estimated that by thc end of the first quarter of 2003, the county will have <br /> collected almost $25 million in sales tax revenue. The balance in the construction <br /> fund at that time should total approximately $3.5 million. When the county took <br /> bids on the jail project, an alternale bid was included for the addition of another <br /> general population pod. The bid result on the additional general population pod was <br /> $1.24 million - leading me to believe the $3.5 millfun would be sufficient to add two <br /> general population pods when the need arises for additional space. I ~nention two <br /> pods because it would seem more logical to construct two pods at the same time <br /> when jail cxpansion becomes necessary. <br /> <br />FAX701~241-5728 <br /> <br /> <br />