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Motion by Mayor Gamec, seconded by Councilmember Zimrnerman, to recommend that the City Council adopt the resolution approving the Proposed Maximum 2002, Payable 2003, Tax Levy in the amount of $4,835,508 and to schedule the City of Ramsey's initial budget public hearing on Monday, December 2, 2002 at 6:00 p.m. and a reconvene date (if necessary) on Monday, December 9, 2002 at 6:00 p.m. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Zimmerman, Anderson, Hendriksen, and Kurak. Voting No: None. Case #la: Adopt Resolution Approving Proposed 2003 HRA Levy by EDA Finance Officer Lund stated that on November 28, 1998, the City Council approved a resolution creating the EDA for the City of Ramsey. The resolution gives all the statutory powers of an Economic Development Authority (EDA) and Housing and Redevelopment Authority (HRA) to the Ramsey EDA. The EDA budget has been funded primarily through three sources: 1) the City General Fund, 2) proceeds from the sale of City owned property and 3) monies from the Landfill Closure Statement. Property tax reform implemented for taxes payable in 2002, along with levy limits, have limited the amount of funding necessary for land acquisition for redevelopment projects. A possible funding mechanism for the EDA is the passing of a levy. The levy is based on the City's taxable market value and for payable 2003, the City would be allowed to levy $176,121. At the EDA's monthly meeting on Monday, September 9, 2002, they authorized a levy to be issued at 40 percent of the total possible levy, or $70,448. This levy could be used to pay the City back for the purchase of Alloy Recovery. The enabling resolution adopted in 1998 requires that all recommendations by the EDA be sent to the City Council for approval before any action is taken. Motion by Mayor Gamec, seconded by Councilmember Kurak, to recommend that the City Council adopt the resolution approving the recommendation of the EDA and approve the proposed HRA Levy for Payable 2003. Further discussion: Councilmember Zimmerman inquired as to how much the levy would cost each individual household. Finance Officer Lund replied that for a $200,000 home the cost would be approximately $11.50. Councilmember Hendriksen inquired what they would do if the resolutions were not adopted. Finance Officer Lund explained that the Public Improvement Fund has been used in the past and would be used to pay the fund back for the Alloy Recover site. Councilmember Hendriksen stated that he did not agree with adding a tax burden onto the City to pay back City funds. Mayor Gamec replied that if they keep on pulling out of the Public Improvement Fund they could be in trouble. He felt that. it was important to keep replenishing the funds. Councilmember Hendriksen stated that his concern is that they continually add taxes to the citizens to replenish City funds. It is not that they are raising taxes to pay a debt the City has. City Administrator Norman stated that the policy is to replenish the funds and they are allowed to bond to replenish the funds, but presently the City has passed the time frame to bond this year but they could do it next year. Councilmember Hendriksen inquired if there was a time limit to replenish the funds. Finance Officer Lund replied no, explaining that even if the HRA Finance Committee/September 11, 2002 Page 3 of 7