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486850v2 AMB MU205-13 Item No: 7.A.2. Meeting Date: December 12, 2016 Type of Business: Council Business City Administrator Review: ______ City of Mounds View Staff Report To: City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 8674 Approving the EDA Property Tax Levy Request for Fiscal Year 2017 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. At the September 12 EDA meeting the EDA adopted an HRA levy of $100,000. There was discussion at that meeting and additional questions arose regarding the end uses of the HRA levy. In consultation with the City’s attorney, to provide the EDA with maximum flexibility in fulfilling the EDA’s desired objectives it has been recommended that the EDA also request the City adopt an EDA levy of $60,000. The HRA levy would be reduced when final certification occurs in December such that the total of both the EDA and HRA levies do not exceed $100,000 in total. Respectfully submitted, ___________________________ Mark Beer, Finance Director