HomeMy WebLinkAboutApril 19 Correspondence NZ to CC Russ WarrenApril 18, 2021
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 provides
a third option which is up to 5% and with a 4/5 majority; up to 8%.
Nyle Zikmund
City Administrator