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Nyle Mmund From: Nyle Zikmund Sent: Thursday, April 15, 2021 5:08 AM To: Russell Warren Cc: Nyle Zikmund Subject: Charter Commission Chair Warren; 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 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 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 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 5% of the previous year and up to 8% with a 4/5 vote of council. 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. Neither of these enable current services to continue into the future without the layoff of employees. 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 reference to inflation (which would effectively take the cap to 5%). The Fridley cap is a third option which is up to 5% and with a 4/5 majority; up to 8%. Happy to visit with you prior to our meeting, let me know if you so desire and when a good time is for you. Nyle Zikmund City Administrator 763.717.4001 w 1763.717.4019 f 1612.860.7442 c 2401 Mounds View Boulevard Mounds View I MN 155112 www. m oundsviewm n.or� MO rNDS EW 91 '`'