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FC# Oq. ADOPT RESOLUTION APPROVING PROPOSED 2005 EDA & HRA LEVY By: Diana Lund, Finance Officer Background: 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. It was this statutory power that allowed the EDA to levy an HRA levy in prior years when levy limits were in place. An HRA levy falls outside of levy limits, whereas, an EDA levy is included in a City's levy limit total. 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 2005, the City would be allowed to levy $233,306. The levy would be used to fund the third year of a three-year pay-back to the City for the purchase of Alloy Recovery, and for land purchases, staff time and consulting services needed to market and develop industrial sites At the EDA's monthly meeting on Wednesday, September 8, 2004, the EDA authorized a levy of $233,306. The EDA chose to levy $200,306 through the EDA with $33,000 via the HRA levy. The HRA levy will remain in place so that the City will be able to collect $33,000 in fiscal disparities from the 2004 pool. If the City did not issue any portion through the HRA, the $33,000 in fiscal disparities would be redistributed to other communities. As this being a non-levy limit year, by levying through the EDA, the EDA levy will be added to the General Fund levy in creating the City's starting levy limit if levy limitations are placed on the City in succeeding years. 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. Recommendation: Based on the recommendation of the EDA to recommend Council approval of the EDA Levy for payable 2005 in the amount of $200,306 and a HRA levy in the amount of $33,000. Committee Action: Motion to recommend Council Adopt Resolution #04-09-XXX approving the recommendation of the EDA and approve the Proposed EDA Levy for Payable 2005 in the amount of $200,306. And Motion to recommend Council Adopt Resolution #04-09-XXX approving the recommendation of the EDA and approve the Proposed HRA levy for Payable 2005 in the amount of $33,000. Review Checklist: