Laserfiche WebLink
April 18, 2021 <br />Chair Warren; <br />Following up on the discussion between the Commission and staff regarding Chapter 7, we want to provide this correspondence to further ensure clarity on the discussion.  We are looking <br /> for the Charters Commission’s recommendation on changes to Chapter 7 providing/enabling the City/Council to address responsible fiscal operation of the city.  Research shared with the <br /> Commission at their request revealed Mounds View is one of only two cities in the State of Minnesota (Fridley being the other) that has a levy restriction in their charter.  The Current <br /> language in the charter, as you know; caps the levy at 2% plus inflation or 5% whichever is less.  The other city with a Charter levy provision is Fridley.  Their provision is up to <br /> 5% of the previous year and up to 8% with a 4/5 vote of council. <br />The current levy provision in our charter effectively prohibits hiring of additional employees without going to a voter approved referendum as well as using reserves to balance the budget.  <br /> Neither of these enable current services to continue into the future without the layoff of employees. <br />Options may including easing of the levy cap from the current 2% plus inflation or 5% whichever is less to 8% or inflation whichever is greater.  Another option would be to remove the <br /> reference to inflation (which would effectively take the cap to 5%).  The Fridley cap provides a third option which is up to 5% and with a 4/5 majority; up to 8%. <br /> Nyle Zikmund <br />City Administrator