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Item No: 7I Meeting Date: 07/10/06 Type of Business: CB City of Mounds View Staff Report To: Honorable Mayor and City Council From: Kurt Ulrich, City Administrator Item Title/Subject: Resolution 6884 Adopting the Recommendations of the Charter Commission for a Charter Language Amendment to Chapter 7 of the Mounds View Charter and Authorizing a Ballot Referendum at the Next General Election Background: During the past several years, the Mounds View Charter Commission has been reviewing the lists of past requests for housekeeping and clarification updates to sections of the Mounds View Charter that have caused confusion or seem to be semantically incorrect. A number of these changes have been processed by ordinance by the City Council. However, if changes are deemed to be more substantive in nature, the Charter Commission may recommend that these amendments be put to a ballot referendum. The Mounds View Charter Commission has requested that the City Council prepare the following Charter language amendment for a ballot and have it placed before the voters at the next general election. The amendment is dealing with Section 7.03 of the Charter in regard to the City’s system of taxation. The concepts that are proposed were discussed at the joint Council/Charter Commission work session held earlier this year. Discussion: The Charter Commission has requested the City Council’s response within 30 days on any questions or clarification to any item as presented in the modification of language for Chapter 7, Section 7.03. The Mounds View Charter Commission acting under Minnesota Statute 410.12 Subdivision 1, has recommended the attached amendments by the addition of the bold and double underlined language and by deletion of the language. In summary, the objectives for the proposed amendment to this section, as stated by the Charter Commission, are twofold: 1) To update and correct language in 7.03 for system of taxation. 2) In 7.03 to limit the annual tax levy and certain fee increases, but to provide a process to obtain voter referendum approval for needs beyond the limits. The Charter Commission has worked with staff, the City Attorney and the Council to develop the proposed amendment to Chapter 7. The proposed amendments appear workable from an administrative standpoint and allow flexibility for inflationary adjustments, routine fees, and enterprise operations. The City Attorney has requested