Item Coversheet

*5.B.1.


Shakopee City Council
September 5, 2023


FROM:Jay Tobin, Parks and Recreation Director
TO:Mayor and Council Members
Subject:
Community Center Fee Update for Sales Tax Increase
Policy/Action Requested:
Request that the Mayor and Council approve the updated Community Cetner Pricing plan to reflect tax increases. 
Recommendation:
Recommend that the Mayor and Council approve the updated Pricing Plan to start October 1st when new tax rate starts. 
Discussion:

Effective October 1, 2023, the seven-county metro will see 1% sales and use tax rate increase.  Staff has updated all the Community Center membership, daily admission and point of sale items account for the sales tax increase. Daily admission is rounded to the nearest dollar to capture the sales tax increase while offering smooth customer experience as primarily cash transactions occur at the point of sale.  All other transactions will be advertised as "unit price" "plus tax" (the taxes have historically been included in the unit price, breaking it out as a "plus tax" provides stability, predictability, and transparency). 

 

Staff recommend that the Mayor and Council approve the updated Pricing Plan to start October 1st when new tax rate starts. 

Budget Impact:
Budget neutral changes with minor increase in revenue expected in daily admissions
ATTACHMENTS:
Description
Community Center Pricing with Sales Tax Increase (effective 10/1/23)