Agenda - Economic Development Authority - 04/14/2003 - Memo

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February '12, 2003 The HRA levy that the EDA is utilizing is a "Market Value" based levy that is limited to 0.0144%. For 2002 the Taxable Market Value available for this levy was $1,223,060,900. The maximum HRA levy the .City could fmplement, using cun'ent market value estimates, would mount to $176,120. This would amount to $0.000I 44 per Anoka County assessed market value dollar. Instead of utilizing the entire levy the City chose to levy $.70,448 to fund a redevelopment project located adjacent to public works. This amount is levied over the entire City of Ramsey and. is in addition to the General Levy. This City HR& levy is outside of levy limits.and '.enables the City to fund projects that it could not previously, due to the lack of resources. COUNTY HRA LEVY In addition to the City HRA levy, the City of Ramsey Council has also chosen to participate in the County HRA Levy. The City allows Anoka County to levy over the City of Ramsey's entire tax base. This allows for the generation of funds for joint projects between the County and City and creates a good working relationship between local units of government. Savannah Oaks, the Senior Housing project success on Dysprosium St., is a project that receives funding through the Anoka County HRA. PROPOSED CDA LEVY Anoka County is currently proposing creating a Community Development Authority (CDA) that would.replace the Anoka County HR.A. This body would have powers statutor/ly granted to an EDA and a HRA which is outlined in the attached exhibit A. The taxing authority would replace the current Anoka County HR& and utilize the same tax base. The maximum tax rate would be increased from 0.0144 percent to 0.01813 percent to incorporate some the current EDA statute. The proposed new levy could 'increase the property taxes for Ramsey residents due to the fact that the Anoka County HRA already levies within our taxing jurisdiction but is only limited to 0.0144 percent. The increase could only be 0.0037 percent spread over the entire taxing jurisdiction. This change would allow the new authority to have more freedom in the scope of the projects it would like to undertake. DISCUSSION It is not unique to tax the same Taxing Jurisdiction for different levies. The utilization of the City and County HR& levies allows both units of government to fund meaningful projects together and gives the City the autonomy to do projects without a partnership with Anoka County. Anoka County has the authority to levy over the City of Ramsey regardless of City Council permission. It has been the