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Home My WebLink About07-20-2006 Mounds View Charter Commission Minutes Meeting July 20, 2006 • 1. Call to order - The meeting came to order at 7:01 PM 2. Roll Call— Present- B. Amundsen, B. Doty, C. Mueller, J. Miller. B. Thomas. J. Thomas, William Werner, Sr Absent— Excused- M. Eenigenburg Also Present: Scott Riggs (City Attorney) and Kurt Ulrich (Clerk Administrator) 3. Approval of Agenda and Minutes Motion by C. Mueller, second by B. Doty,to approve the Agenda as presented APPROVED 4. Citizens Comments None 5. Reports of the Chair None 6. Reports of Members None 7. Unfinished Business a. Discussion of Chapter 7.03.and Resolution 2006-06 . Chair J. Thomas reported to the Commission the Council's status of the Resolution and the report from the Legal Counsel. Consensus was to review Legal Counsel's report point by point and determine if language changes are required. Following are language changes by line: Line 5 -9 : Keep the introductory language paragraph. Line 10 to 13: Remove the first sentence after Subdivision 1. Line 13: Replace"resolution"with"annual resolution to levy ad valorem taxes". Line 14: Change "raise"to "raising" and place parenthesis around "raising money against real and personal property". Line 15: Change"6%"to "5%"per previously agreed to changes. Line 16: Change"3%"to "2%"per previously agreed to changes. Line 20-21: Remove "within the City". Line 26: Change"with a"to "upon at least 10 day posted and". Line 31: Remove"by a lay citizen"and insert after"and""a summary of such resolution". Line 39: Remove"special" . Line 42: Remove"sales and use taxes". Line 44: Remove"Valuation Table"and insert after"and" "shall also include". Line 45: Change"to a majority"to "to a simple majority". Line 66 -73: Remove whole paragraph and renumber "E"to "D" Line 76: Add at end of sentence "or MN Statutes Section 475.754, as amended." Line 78: Replace"raise city money"to "levy" and add at end of line"an average of Line 79: Insert after "previous"the words "five year" Line 102 - 105: Remove entire Subdivision 6. • Page 1 of 2 Mounds View Charter Commission Minutes Meeting July 20, 2006 • Motion by B. Thomas, second by B. Doty,to amend Resolution 2006-06 with the changes as agreed to this evening and to send to the Council as Resolution 2006-06a to supersede Resolution 2006-06 APPROVED 8. Adjournment -Motion by J. Miller to adjourned. APPROVED Meeting adjourned at 8:45 Respectfully submitted, Brian Amundsen, Secretary --i3fA`o.i.,tgw•AL°4/A4' 0014* • • Page 2 of 2 City of CHARTER COMMISSION SPECIAL MEETING Mounds • 7:00 PM Thursday, Jul 20, 2006 • View Mounds View City Hall Charter Commission y' Preliminary AGENDA Chair 1. Call to Order Jonathan J Thomas 763.784.5205 • 2. Roll Call Vice Chair Bill Doty Jonathan J Thomas Matthew Eenigenburg 763.786.3421 Bill Doty Carol Mueller 2°d Vice Chair _ Jean Miller _ Barbara Thomas Jean Miller _ Brian Amundsen _ William Werner. Sr 763.786.3453 3. Approval of agenda and minutes Secretary Brian Amundsen 763.786.5699 Review and approve agenda Matthew Eenigenburg 4. Citizens comments from the floor 763.783.7216 Carol Mueller 5. Reports of the Chair 763.780.1251 �arbara Thomas 763.780.6226 6. Reports of members William Werner Sr 763.784.3603 7. Unfinished Business 60 min. Discussion of 7.03 8. Adjournment • . MEMORANDUM TO: Scott Riggs FROM: Dave Kennedy DA11,: July 14, 2006 SUBJECT: Mounds View Charter: Proposed New Chapter 7 You've asked for my comments on the proposal being developed by the City Charter Commission to amend Section 7.03 of the Charter relating to taxation. The amendment is so extensive that I can only offer some general comments at this time. The amendment must be studied and analyzed much more thoroughly before submission to the voters for approval or to the Council for adoption by ordinance. I will point out some technical problems in the amendment below that will correspond to the numbers marked on the text itself. General Comments • I don't think it advisable to repeal the present text of 7.03 which is a general grant of authority to set up any kind of taxing system not otherwise prohibited. Granted there are precious few such local taxes still available, but a Charter looks to the future and such authority might come in handy someday. Retaining the language does no violence to the rest of the proposal. The substance of the amendment is a system of levy limits for ad valorem taxes and, presumably, a number of fees and fund reserves. The state does not presently impose levy limits on cities but it has in the past and may in the future. It is probable, but not certain, that state imposed levy limits would pre-empt the limits proposed and they surely would if the Charter permitted higher limits than the statute. The amendment should probably state clearly that it applies only in the absence of state limits. (Levy limits could conceivably apply to the fees in Subdivision 2 since the 2006 tax legislation now treats"fees"as "taxes". Article 13, Section 15,Laws 2006;Chapter 259) If this proposal is to be submitted to the voters, the Commission should be aware that the City Council must fix the form of the ballot question in language "... sufficient to identify the amendment clearly". I think framing the ballot question for this complex amendment will be quite difficult. As a general matter the text of the proposal is quite long and should be edited accordingly. Many provisions may be dropped entirely as pointed out below. • 293823v1 DJKMU210-4 • Specific Comments (See numbers on text). 1. This first sentence is unclear and unnecessary. The City has the powers described and its class is set by law. 2. The "resolution" is the annual tax resolution sent to the County in the manner prescribed by law. It should say "The City's annual resolution to levy ad valorem taxes ..." 3. Suppose the CPI + 3% is 10%. I assume the limit would still be 6%. This could be crippling to the City in inflationary times. 4. I assume "Said index"refers back to the CPI. But is the 6%index based on the same CPI or a 12 month average? This should be clarified (unless I'm reading it incorrectly). 5. "Within the City"is superfluous. 6. When is notice given? Two days? Two weeks? 7. As pointed out above,framing a ballot question will be a formidable task. • 8. What is a lay citizen? 9. Is the resolution the ballot question? 10. How does this tie in with the truth in taxation schedule? 11. What is a"special levy"? 12. Sales and use taxes are authorized by a general law that requires a special law and voter approval. At present they can't be modified locally. 13. What is a"valuation table"? 14. How is this "majority"calculated? 15. I think, given the language of this subdivision it will be extremely difficult to determine what fees are limited by this amendment. 16. This last sentence is superfluous. 17. This paragraph D is superfluous. I don't think there's any doubt about the meaning of the term"City"under the Charter and this language does nothing to clarify it, if clarification were needed. • 293823v1 DJK MU210-4 . 18. This paragraph E is superfluous. Section 7.12 refers to emergency debt certificates the issuance of which are totally governed by statute. See Minn. Stats., Sec.475.754. 19. This limitation on reserves should be considered most carefully. Neither statute nor this Charter authorize them but they are commonly created and maintained and Moody's (and to some degree Standard & Poor's) place great weight on a City's reserves in assigning credit ratings. My feeling is that Moody's would not look favorably on this provision (or indeed on the whole proposed amendment). 20. The first two sentences are superfluous. There can be no reserves of tax increment and nothing here affects development agreements. 21. This subdivision is superflouous. Bond obligations may not be impaired under any circumstances, and bonds may not be issued for current expenses. See Minn. Stats., Section 475.52, Subdivision 1. 22. This subdivision merely states a fact and is superfluous. Also, the term "referendum" should be "initiative". In addition, this whole amendment contradicts Chapter Section 5.01 which precludes the use of initiative and referendum in matters involving levy of taxes. 411 23. There should be an effective date that allows the City administration enough time to adapt to these new limitations if adopted. I hope this is helpful. Please excuse the extraneous marks on the draft. • 293823v1 03K MU210-4 Mounds View Charter Commission Resolution 2006-06 l2j ( Dated June 13,2006 - /((17;2 CHAP I'hR 7 TAXATION AND FINANCES Section 7.03. System of Taxation,. •• . . r, • : . -, ;, . - „ ; ; ; -- ; .•• .. ;;•-- •r • i - -ca •. • • i s - r• - • Subdivision 1. The City of Mounds View shall have. in addition to th- powers granted by this C arte. . 1 t e 'owe s to aise mone b taxation .0 suant to the laws o_ the State o M'nnesota e' 1 . - see • ,• - • •••- t: 1.r- ' sell • ,S '. - a I. 1 Mou ds Vie 'to:e a e .e i the ear of the •ro.osed le , or fee ad'ust e t resoluti.P e • .•, ,. - 11.1 _,.• ,,• . • . . .•.-• 1 • --. , •- fa • .'n• form 1. • eith-rt e ...r -•.,. . - .•l ar .m• n 'nc ea e. • .n in . '• • in.- maxi •f.°. o •I • °AWs de all .e tie 12 • onth avera•e of the u• t recent v published data of the Consumer Price Index for ail Urban Consumers in the Minneapolis. St. Paul - r•. Ii . . e, . .-fine• • th- s-•.•e1•- t • . •r B r-. • ..•r ,ti • Subdivision 2. The City Council may le 'v a tax .eainst real and p-- •,. •. ,', .- Ci 717 excess of the limit set in Subdivision I provided the Council shall: • A) Ado.t a resolution declar'ne the neces itv for an additional tax levy and specif the purposes for which such additional tax Iew is required B) • . • • IIi 1-, ••• wit, . • _.I' -. • ' '• - is ' • ', - sate ,7 s-w -s- ,.s '. . .'1 , e h- '-• 'te - i • •t1 tie cost- ._ h- r- .1 is• described in Subdivision 2A, C) : e' • • .• ' ,-. '17 .... •v ., .• •1, . '- is : • • . 4 11-11•" • 1- •_• hr- • '•, .•. ' 1 ..' s. ,•••• - • ' I. 't' - .1. . ' •- th- •.l • : - ••.a�'• h- -I-c • - . - - r-.0 .r ' is. - -c i• 1-1 1 1, • 11• //"1 "• 1 1 • • . '1• st . • • •s specified in the resolution .. a, as d 1 ' • 1- - i • _• • 1 • • e" '•1• 1- • . - ••• • . .•• • ••• 1. "• . • _e• • s _ 'e • :• ', •!'v' •• • ! '•1 A) • •- •r.• - • 1 - '•1 " --" ' - -`� ' water. sanitary sewer, • n - •• -- '••_ - •. '-- ,s 1' - -- f. • se _ . • d- • •'r- e.1 ', •• 1'. '•1 , ,'• '\ • • •- w - s • . residents of Mounds View. I 10 City of Mounds View I, ity Mounds View Charter Commission ��' Resolution 2006-06 Dated June 13, 2006 • B) . . •- •_.s - • ,' - •• i- tem " -e" s.- n. '• . _•-: ' ' • • e a c- f-- ., . • - , 's1, .,r' '•. 's1 -- •, • s •10 •- fa _1• - • $. 1' 's• •• _s • - products. Building and Zoning Permit or Inspection and.Planning fees. or civil. criminal and banking fines and other charges collected in cases of restitution or violation of law or contract. The term "fee" does not include charges collected by the direction of the State. • _1s • s - •• , ••.'s • _ • r- _1 •f's' . . -. .a --11-_ _ - - "f--" Also does not include rental housing fees, liquor license fees. cable television service fees. annual license fees for the operation of a regulated business, and any miscellaneous fees for 1►i d'n• -.1 • • if-i r-1-t-d •.- -n.• c-.•-• an. • -r !sod - 'i -. sr materials routinely provid-d by the City to its citizens or other members of the public which. I'n' -. • •- , s ,l • • h- -1► i - •-ink are i.-. Th- -us " --" ,I1 of i elude an ' special assessments ade under ••esota Statutes Section 429 as amended.Q? t.- . .... - s .' - '.i " -- - -" 1 _.- _ - . _ ._ - Hof- - -a - in a -xi i • . • -- • ta� •r f-- r. - in re, -. .n ex..n is i th- le•,l definition of a tax or fee base. and an extension of an expiring tax or fee, D th- •u.•.. - . hi -c i• " ' 'ncl the s . 1-9ally and geographically l/ defined by the State. all its departments, personnel. Commissions an. ,overning bodies ' adopted by Ordinance. appointment. or proclamation and are organized to exercise the "Powers of the City" as defined by the State or this Charter. " i " shall not i dude an governing body solely owing its existence to separate constitutional or statutory authority • outside of the Charter and not as a result of Council action, Ordinance, appointment or 'reclamation re•ardle s • whethe that • •- rive nip• ..d has ' iri d'ction or .erf.rms duties and services within the boundaries of the City. E)�i - Ise .s- •• .0111V t• ••v .- e.1- e, i - a_ .• 'z-. '. h,• e Section 7.12, .s. .•1 ' ■ - it •. .s .. q•1 • •I is - -11 • I. 1. + • s , ,1 ., - .-/t' _ - i- •_ni - , un.' r- - - •- • s 1°. . •v'•-•• /t 1. •- • • .- i•1. - . - .1. 'on .nd isls . ._.•i •-, '1• - • h- D. - • _•- reserve increase and the City follows such proposed increase with the steps outlined in Subdivision 2 of this Section the year prior to the collection of such increased taxation or fee 2. the Council modifies and adopts by resolution the Five Year Financial Plan. as defined in 1,. - Si• i s- 'p'' • •- 1. -g- - ._•• ,•. •_ 'I • s . • •r•s•, increase with the steps outlined in Subdivision 2 of this Section the year prior to the collection of such increased taxation or fee. Moneys raised by Tax Increment Financing shall not be included in the calculation of reserve limit. This Subdivision and Section shall not limit or impair the City's ability to create Tax Increment v •.• ••• or enter into Development Agreements s ecified b MN Statutes 469.174 to 469.1799 as arrmende•. This Subdivision shall not require the City to divest or expend any excess of any reserve l.•' __ ■ "$ -i •• •- • -s •••• s sy'.-. 1- s • ' 11.11 •i s. • •••• '1• I. • City of Mounds View Mounds View Charter Commission Resolution 2006-06 Dated June 13,2006 • Section. designates by resolution the purpose of the reserve or adopts a modified Five Year Financial Plan reflecting the reserve purpose. Subdivision 5, Nothing in this Section shall be construed to impair any general obligation h- i • • . .•.v- 'a •.• • •t.- - , i d . -••- • '. il. •• ire '• ..• -. . h- full faith and credit of the City, provided.however.that long-term.general obligation indebtedness shall not be used for the purpose of funding the routine and daily business operations of the City, Subdivision 6.Nothing in this Secfion shall be construed to limit or impair the voters of Mounds V' fr.u. . i '.ni •r. r-f- -nd_ 'II a . •, ith m- ... in h..ter te . •.•_1 •_ the following for levy or fees: new, increase or decrease an existing,or request an elimination of any tax levy fee or other method a ed by the City for raising money II • • City of Mounds View