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<br />485711v2 AMB MU205-13 <br />Item No: 7.A. <br />Meeting Date: September 12, 2016 <br />Type of Business: EDA Business <br />City Administrator Review: ______ <br />City of Mounds View Staff Report <br />To: Economic Development Authority <br />From: Mark Beer, Finance Director <br />Item Title/Subject: Resolution 16-EDA-293 Approving the Special Benefit Tax Levy <br />for the Purpose of Defraying the Costs Incurred by the Mounds <br />View Economic Development Authority for Fiscal Year 2017 <br /> <br /> <br />The City Council is considering establishing a property tax levy to continue to promote economic <br />development activity within the City. Previously the City’s economic development activities were <br />funded with tax increment revenues. These tax increment revenues were discontinued as <br />required by state statute. This left the City with limited resources to continue existing business <br />outreach, marketing, advertising, small scale incentives, property acquisitions, professional <br />services, and staff training and development. The City Council has discussed establishing a levy <br />of $100,000 for these purposes. <br /> <br />The City’s EDA has been authorized with joint powers of an Economic Development Authority <br />(EDA) and a Housing and Redevelopment Authority (HRA). The EDA may choose to establish <br />either an EDA levy or an HRA levy, or both, to fund the above activities. The HRA levy provides <br />the greatest flexibility in accomplishing the above activities and is administratively more efficient. <br />The City Attorney has opined that neither levy would be subject to the charter levy limitations as <br />each is considered a distinct corporate entity with individual powers from the City as outlined in <br />State law. The proposed levy would represent a 2.26% increase in the City’s property taxes. <br /> <br />State law requires that a “special taxing district” certify a preliminary property tax levy to Ramsey <br />County by September 15. Once this amount is set, the levy cannot be increased but can be <br />lowered. A Truth-In-Taxation meeting will be held December 5, 2016 at 6pm at City Hall. The <br />final levy will be adopted on or about December 12, 2016 <br /> <br />Respectfully submitted, <br /> <br /> <br />___________________________ <br />Mark Beer, Finance Director <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />