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01-11-2007 Charter Packet
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01-11-2007 Charter Packet
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1/11/2007
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Posted on Thu, Aug. 24, 2006 <br />Measure would cap tax increases <br />If voters approve, suburb would be one of the few Minnesota cities to limit leaders' ability to <br />increase levy <br />BY DAVE ORRICK <br />Pioneer Press <br />Surprise double-digit tax hikes could be a thing of the past if enough Mounds View voters want it <br />that way. <br />The suburb is poised to become one of a handful of Minnesota communities to tie the hands of its <br />elected leaders when it comes to raising local property taxes from year to year — if a majority of <br />voters say "yes" to a ballot question in the general election. <br />The ballot question seeks to amend the city's charter to limit the annual percentage increase in <br />the city property tax levy to 5 percent, or the rate of inflation plus 2 percent, whichever is Tess. <br />Stiffer tax hikes could still happen, but voters would need to approve each in a ballot question. <br />Fridley has a similar measure, which proved highly divisive after the state several years ago <br />slashed the funds it distributes to local governments. <br />"The Fridley charter never anticipated that those (state) funds would dry up," says Gary Carlson, <br />a lobbyist with the League of Minnesota Cities, which monitors such policies. "It was an <br />unintended consequence that Fridley was facing steep cuts in service because they couldn't <br />make up the lost revenue." <br />In an interview earlier this month, Fridley Mayor Scott Lund complained that his city's tax cap was <br />so narrowly worded that leaders were hamstrung from even maintaining the city's infrastructure <br />without voter approval. <br />But Mounds View leaders say they've learned from Fridley's mistakes. <br />Charter Commission Chairman Jonathan Thomas says Mounds View's plan, eight years in the <br />making, has been patiently crafted. The exact wording of the Nov. 7 ballot question was still being <br />ironed out Wednesday, but Thomas said the measure contains exceptions for funds not tied <br />directly to local property taxes, such as those backed by the state. <br />"Everybody supported putting it on the ballot, the Charter Commission and the City Council," he <br />says. "If there's any serious opposition out there, they certainly haven't come forward." <br />Although Minnesota imposes tax caps on certain school funds and has limited municipal tax hikes <br />in the past, no statewide city tax cap currently exists. <br />Thomas said the impetus for Mounds View residents wanting to lock in their elected leaders was <br />simple. <br />"Looking at 14 and 16 and 22 percent increases in the last few years, a very, very large group of <br />citizens feels you can't trust the City Council," he says. "Its membership changes every year, and <br />even though this might be the greatest City Council, you can't know that about the future City <br />Council. A significant number of citizens feel like the city has to be given guidelines." <br />Dave Orrick can be reached at dorrick@pioneerpress.com or 651-228-2171. <br />© 2006 St. Paul Pioneer Press and wire service sources. All Rights Reserved. <br />http://www.twincities.com <br />
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