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485711v2 AMB MU205-13 Item No: 7.A. Meeting Date: December 12, 2016 Type of Business: EDA Business City Administrator Review: ______ City of Mounds View Staff Report To: Economic Development Authority From: Mark Beer, Finance Director Item Title/Subject: Resolution 16-EDA-295 Approving the Special Benefit Tax Levy for the Purpose of Defraying the Costs Incurred by the Mounds View Economic Development Authority for Fiscal Year 2017 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. The City Council adopted a preliminary HRA property tax levy to continue to promote economic development and housing activities within the City. Previously the City’s economic development and housing 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. Because of the different limitations on how an HRA levy and an EDA levy can be used, the City Council and EDA adopted an HRA levy of $100,000 and an EDA levy of $60,000 to provide flexibility during the development of the 2017 EDA budget. The intent was to have no more than $100,000 in total between the two levies. Based on the current EDA budget, the HRA levy should be approved at $40,000 and the EDA levy at $60,000. Respectfully submitted, ___________________________ Mark Beer, Finance Director