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• Item No. 5H Meeting Date: June 22nd, 2000 Type of Business: IN • EB: EDC Business IN: Informational Item City of Mounds View Staff Report To: Economic Development Commission From: Aaron Parrish, Economic Development Coordinator Item Title/Subject: Charter Commission Resolution 2000-09 Date of Report: June 15, 2000 Background: The City of Mounds View is governed under a charter form of government. Accordingly, the Charter has provisions relating to form of government, council procedure, elections; initiative, referendum,and recall; city administration; taxation and finance; public improvements and special assessments; and a variety of other provisions. On May 31st, 2000 the Charter Commission passed Resolution No. 2000-09 which adds section 7.13 to Chapter 7: Taxation and Finances of the Mounds View Charter. The resolution has been included for your information. Charter Commission Resolution No. 2000-09 essentially places limits the city's ability to utilize tax increment financing, and attempts to limit other business incentives. However, the emphasis is on tax • increment finance. In essence, the city would not be able use TIF if the captured tax capacity for Mounds View's TIF districts (the amount of TIF dollars generated)was more than 10% of the city's total tax capacity. For taxes payable in 1998, 1999, and 2000, the percentage is 22 percent. The following table is illustrative: PAY YEAR TOTAL TAX CAPACITY TIF TAX CAPACITY PERCENTAGE OF 11F TO TOTAL TAX CAPACITY 1998 $7,065,449 $1,533,128 22% 1999 $6,933,389 $1,502,950 22% 2000 $7,403,151 $1,645,539 22% From a procedural perspective,the Council will review and then subsequently consider the amendment. If the Council votes unanimously to approve the amendment, it will be adopted and incorporated into the Charter. If it is not approved unanimously, it will then be placed before the residents of Mounds View for consideration during a general or special election. Necessary Actions: None. This has been provided for informational purposes. Aaron Parrish, Economic Development Coordinator • (763) 717-4029