01-13-2011 Charter Packet - Laserfiche WebLink

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Tax Cap Amendment Section 7.13. Levy Limitations. The levy limitations imposed on the City by Minn. Stat. Sections 275.70 through 275.77 (2010) shall remain in effect even if the statutes are amended or repealed. The references in Minn. Stat. Sec. 275.71 to taxes levied in specific years shall be interpreted to refer to taxes levied in the year this amendment passes and each subsequent year. Comments: There are a number of ways to impose a tax cap. Mounds View and Fridley adopted detailed charter provisions, attempting to classify each fee or charge as included or excluded from the limit. Probably as a result, those provisions of their charters have been amended repeatedly. Lino Lakes could follow their model, but would have to figure out precisely which taxes and fees to include in the levy limits, and which to exclude. Those decisions would almost certainly become political, and take a great deal of time to complete. Instead of opening the floodgates that way, the language proposed above simply adopts the provisions currently in effect in state law. The City is already living with these limits. These state laws do allow the voters to approve increases, and so provide an option for the City to increase its levy. These state laws also contain provision which will allow the City to deal with emergencies, thus providing the necessary safety net. The language proposed above will keep these same limitations in place indefinitely. Draft Ballot Language: Should the City Charter be amended to permanently adopt the levy limits that are currently imposed by state law?