Agenda - Planning Commission - 10/06/2005

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development/redevelopment and to fund consulting services such as appraisal services attributed to the desired property. The EDA levy is not limited to housing and/or redevelopment, but can be spent on such items as vacant land, monument signs and other economic development related activities. F'inancc Officer Lund stated at the EDA's monthly meeting on Wednesday, September 7, 2005, the [iDA authorized a levy of $341,624. 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. The recommendation of the Finance Committee was that the Council adopt the resolution approving the recommendation of the EDA and approve the proposed EDA levy for payable 2006 in the amount of $341,624. Motion by Councihnember Strommen, seconded by Councilmember Jeffrey, to ratify the recommendation of the Finance Committee for Case No. 2 and to adopt Resolution #05-09-312 approving the recommendation of the EDA and approve the Proposed EDA Levy for Payable 2006 in the amount of $341,624. Further discussion: Councilmember Elvig indicated part of the discussion at the Finance. Committee was that this is an investment in what the City can do for public purpose and redevcl(~pment. This will provide a better tax base that will freeze taxes in years to come. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Strommen, Jeffrey, Elvig, Olson, and Pearson. Voting No: None. Absent: CouncilmemberCook. · 3) Adopt Resolution Approving Proposed 2006 HRA Levy t:inancc Officer Lund reviewed that the proposed HRA levy was approved at the HRA meeting prior to this Council meeting. The difference between the HRA levy and the EDA levy is that thc HRA funds are used more for housing and redevelopment and the EDA funds are used for economic development. She explained as 2006 will be the first complete year of the City having an HRA, a funding sources needs to be established that would Sffset the expenditures of staff time, consultants, and the purchase of redevelopment property/pr6perties. As with the EDA, the IdRA is allowed to pass a levy on the taxable market value in the City. For the year 2006, the EIRA would be allowed to pass a total levy of $271,339, which represents .0144% of the City's total taxable market value. An example of the effect of a property taxpayer would be $28.80 on a homeowner with a market value of $200,000. Finance Officer Lund advised the Finance Committee recommended the Council adopt the resolution approving the recommendation of the HRA and approve the proposed HRA lew payable for 2006 in the amount of $271,339. C~mncilmcmber Elvig stated this is also an investment in the City's future. City Council / September 13, 2005 Page 29 of 33 P73