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is al}owed to pass a levy on the taxable market value in the City. For year 2006, the HRA would bc all{~wcd to pass a total levy of $271,339, which represents .0144% of the City's total taxable market value of $1,884,300. Unlike the EDA levy, the HRA levy falls outside of levy limits. '['hus, il' levy limits were imposed in 2007, the HRA would not be included in the overall total that thc City may levy. She advised the members of the HRA met before tonight's City Council meeting and agreed to accept the levying of an HRA levy for 2006 taxes payable in the amount ~t'$271 ~339. Motion by Councilmember Olson, seconded by Councilmember Elvig, to recommend the City Council adopt thc resolution approving the recommendation of the HRA and approve the l'roposcd I IRA I~evy for Payable 2006 in the amount of $271,339. Further discussion: Councilmember Elvig stated there are two things that concern him regarding this levy. First is that a fair amount of the budget is in wages and salaries. He does ~tot have a real disagreement in the salaries, but he would like that amount pulled off of the general I'und ledger. Finance Officer Lund explained the salaries are for 50% of HRA Executive l)ircctor's salary and 50% of the Associate Planner's salary, with the remaining portion of the salaries included in the General Fund. Councilmember Elvig stated there is more discussion to have regarding the General Fund budget, because it is creeping higher and higher, and the HRA tmdgct includes $80,000 in salaries that can be removed from the General Fund budget. He requested in the future the numbers included in the staff report be more relative to the fair market value, as $250,000 to $300,000 is more realistic than the $200,000 presented in the staff report. ! lc stated hc agrees this is an investment in the City's future. Motion carried. Voting Yes: Chairperson Strommen, Councilmembers Olson and Elvig. Voting No: None. Case/44: Adopt Resolution Approving Proposed 2006 Payable Tax Levy lqnancc Ol'ficer Lund explained the resolution before the Council reflects a 2006 Payable Tax l,cvy ol' $7,287,486. Of this amount, $6,311,701 is for the General Fund Levy. Included in the total proposed levy is the debt service levy for the Municipal Center in the amount of $114,362. She advised while the proposed levy can always be reduced, it cannot be increased. The proposed levy must be certified to Anoka County by Thursday, September 15, 2005. (~hairpcrson Strommen requested clarification that this levy does not take into account the EDA lc~vy. t.' inancc ()l'ficcr Lund responded in the affirmative. ('ouncihncmber Elvig expressed concern with raising this levy, as well as imposing a stiffer EDA and a brand new HRA levy. He stated he is anxious to do some cutting on the General Budgcl. Itc stated he would like the record to show that he very strongly disapproves of the p~'oposcd tax capacity rate. He understands the need to approve this levy with this higher rate, and that Ibc intentions are to cut the rate back. He will go as hard as he can to go after a tax capacity rate o1'39% or less. He understands that some costs have gone up, and that needs to be Finance Committee / September 13, 2005 Page 3 of 6