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