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Mr. McCarty - If you are referring to citizens setting a tax limit, you are <br />protected by State levy laws. Recommend researching whether or not budget <br />by ordinance is legal; don't think you want to tie you municipality up in <br />that manner becauSe unless you are capable of going to you voters and carefully <br />and in detail, explaining a municipal need you may tie yourselves up where <br />you can't get what you need. Mounds View did not go so far as to m~quire <br />budgets by ordinance, but we made resolutions, as well as ordinances, subject <br />to referendum. <br /> <br />Chairman Heitman inquired if it is legal to submit resolutions to referendum. <br /> <br />Mr. Doty - It probably could be stopped, but it is not something that is <br />likely to be abused. <br /> <br />Commissioner Sieber referred to information received to the effect that if <br />even one item in a charter is found to be not legal, it invalidates the entire <br />charter. <br /> <br />Mr. McCarty - No. Not winning one item in court does not preclude putting it <br />in the charter. Referring back to budget and fear of City overspending, it <br />would be impossible for the city to fund public improvements through the <br />city's general fund, they would have to suspend city operation to do so. <br /> <br />Chairman Heitman inquired as to city's spending monies on projects the people <br />do not want. <br /> <br />Mr. McCarty - The only way a city this size could do so is through the bonding <br />process. Mounds View charter has a petition process for those who are proposed <br />to be assessed; that is where your real handle is rather than general fund <br />budget. <br /> <br />Mr. Loeding - To build in protection for smaller dollar amounts, go with <br />something like a 4/5 vote of council for non-assessed projects. <br /> <br />Chairman Heitman inquired as to how to protect against Council spending <br />monies on projects other than what the money was originally intended for. <br /> <br />Mr. McCarty and Mr. Doty replied that the city could not do that. <br /> <br />Commissioner Gamec commented that in a case like that, the State Auditors <br />would consider it a defraud of the budget. <br /> <br />Mr. Loeding stated that any damage that can be done to a city budget is very <br />limited. Mr. Loeding referred to Ramsey charter proposing a 30 day waiting <br />period on ordinances and stated that it could get the city into a bind. There <br />are deadlines that have to be m~t and the city can't afford a situation where <br />it's budget is challenged. Mounds View recognizes there are areas that are <br />very questionable where initiative and referendum refer to resolutions, and <br />in the area of budgets it would be doubly questionable, we subject resolutions <br />to initiative and referendum in order to have some flexibility. <br /> <br />Chairman Heitman pointed out that if one chapter of the charter fails, it does <br />not invalidate the entire charter, but if the charter is so interrelated, all <br />those that related to the chapter that failed will also fail. <br /> <br />Commissioner Data pointed out that the Mounds View charter was reviewed by the <br />Attorney General. <br /> <br />CC/October 20, 1983 <br /> Page 2 of 8 <br /> <br /> <br />