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WS — Item 5 <br />WORK SESSION STAFF REPORT <br />Work Session Item No. 5 <br />Date: February 1, 2021 <br />To: City Council <br />From: Sarah Cotton, City Administrator <br />Re: Charter Commission Expenditures <br />Background <br />Minnesota Statutes § 410.06 provides that cities shall pay for reasonable and necessary <br />charter commission expenses. <br />The 2021 City of Lino Lakes adopted budget includes line items of $1,500 for charter <br />commission direct expenses and $1,000 for expenses related to minute taking for <br />commissions meetings. <br />Effective August 1, 2020, Minnesota Statutes § 410.06 was amended to increase the limit <br />on annual charter commission expenses required to be reimbursed by the city. Under the <br />new law, the charter commission reimbursable expense limit is a sliding schedule <br />calculated as .07% of the city's current certified general property tax levy with a <br />minimum of $1,500 and a maximum of $20,000. Prior to this law change the limit was <br />set at $1,500. <br />Under the new law and based on a 2021 General Operating Levy of $9,232,367, the <br />amount of charter commission expenses that would be required to be reimbursed by the <br />city is $6,462.66 <br />The Lino Lakes Charter Commission is requesting council consideration of a budget <br />amendment to allocate $4,962.66 of contingency funds towards charter commission <br />direct expenditures. It should be noted that any funds allocated and not expended would <br />but reflected in the city's General Fund fund balance at year-end. <br />Requested Council Direction <br />Staff is seeking Council direction regarding the Charter Commission request. <br />Attachments <br />Minnesota Statutes § 410.06 <br />Summary of MN Statutes, § 410.05 and § 410.06 amendment <br />2021 Charter Commission Budget <br />