11-08-2012 Charter Packet - Laserfiche WebLink

Home Search

Mr. Jeff Karlson July 25, 2012 Page 2 For the purpose of determining the maximum levy, the original net tax capacity shall be used for all property which is both (a) placed in a tax increment financing district after 2011 and (b) being taxed on the basis of its original net tax capacity. The Commission is authorized to propose amendments to the City Charter under Minnesota Statutes, Section 410.12, subdivision 1. Any amendment proposed by the Commission must be submitted at least 17 weeks before the general election. Id. Minnesota Statutes, Section 410.12, subd. 4 provides that amendments so submitted by the Commission "shall be submitted to the qualified voters at a general or special election and published as in the case of the original charter." Section 410.12, subd. 4 goes on to state that "the form of the ballot shall be fixed by the governing body" and that the "statement of the question on the ballot shall be sufficient to identify the amendment clearly and to distinguish the question from very other question on the ballot." While Section 410.12, subd. 4 states the general rule—that charter -commission proposed amendments "shall" be submitted to the voters—Minnesota courts have long held that a city council may refuse to place on the ballot any proposed charter amendment that is manifestly unconstitutional, contravenes public policy of the State, or is preempted by State law. Minneapolis Term Limits Coalition v. Keefe, 535 N.W. 2d 306, 310 (Minn. 1995); Haumant v. Griffin, 699 N.W. 2d 774, 779-81 (Minn. App. 2005) The question is whether the so-called "tax cap" amendment exhibits the deficiencies referenced above. In my view, there is a strong argument that the amendment is unconstitutional and contravenes State public policy for the following reasons. The proposed levy limit is so ambiguous and vague that it is impossible to determine how the limit would be calculated—it simply cannot be implemented without making assumptions and judgments that go beyond the language in the amendment itself. The first problem is that the amendment states the "maximum levy shall be calculated in accordance with the provisions of Minn. Stat., Sections 275.50 to 275.54 (2010)," as modified elsewhere in the amendment. One of the modifications is "the City's levy for year 2012 shall be used as the starting point for calculating all subsequent levy adjustments." It is not possible to reconcile this language with the actual text of Minnesota Statutes, Sections 275.70 to 275.74. Section 275.71, subdivision 5 states the general rule: "For taxes levied in 2008 through 2010, the property tax limit for a local government unit is equal to its adjusted levy limit base determined under subdivision 4," plus any voter approved additional levies, and less state aid under Minnesota Statutes, Section 477A.011 to 477A.014 and certain other aids and adjustments. The "levy limit base" in turn is determined by starting with the "levy aid base" as defined in Section 275.70, subd. 6, 408003v1 LN140-86