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485712v2 AMB MU205-13 Item No: 7.B. Meeting Date: September 12, 2016 Type of Business: Council Business City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 8623 Approving the Mounds View Economic Development Authority’s Preliminary Special Benefits Tax for Fiscal Year 2017 The City Council is considering establishing a property tax levy to continue to promote economic development activity within the City. Previously the City’s economic development activities were funded with tax increment revenues. These tax increment revenues were discontinued as required by state statute. This left the City with limited resources to continue existing business outreach, marketing, advertising, small scale incentives, property acquisitions, professional services, and staff training and development. The City Council has discussed establishing a levy of $100,000 for these purposes. The City’s EDA has been authorized with joint powers of an Economic Development Authority (EDA) and a Housing and Redevelopment Authority (HRA). The EDA may choose to establish either an EDA levy or an HRA levy, or both, to fund the above activities. The HRA levy provides the greatest flexibility in accomplishing the above activities and is administratively more efficient. The City Attorney has opined that neither levy would be subject to the charter levy limitations as each is considered a distinct corporate entity with individual powers from the City as outlined in State law. The proposed levy would represent a 2.26% increase in the City’s property taxes. State law requires that a “special taxing district” certify a preliminary property tax levy to Ramsey County by September 15. Once this amount is set, the levy cannot be increased but can be lowered. A Truth-In-Taxation meeting will be held December 5, 2016 at 6pm at City Hall. The final levy will be adopted on or about December 12, 2016 Respectfully submitted, ___________________________ Mark Beer, Finance Director