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REVIEW AND ADOPT 2006 HRA LEVY By: Diana Lund, Finance Officer Background: On March 8, 2005, the City Council adopted the enabling resolution to establish a Housing and Redevelopment Authority (I-IRA). On March 22, 2005, the by-laws (under Minnesota Statute Chapter 469) were established for the HRA. Included in these bylaws are that the Ramsey City Council will serve as the HRA Board of Commissioners. As 2006 will be the first complete year of the City having an HRA, a funding source needs to be established that would offset the expenditures of staff time, consultants, and the purchase of redevelopment property/properties.. A copy of the proposed 2006 expenditures is attached. As like the EDA, the HRA is allowed to pass a Levy on the taxable market value in the City. For year 2006, the HRA would be allowed to pass a total levy of $271,339 which represents .0144% (Statutory Maximum Levy Rate) of the City's total taxable market value of $1,884,300. An example of the effect of a property taxpayer would be: $28.80 on a homeowner with a market value of $200,000. Unlike the EDA levy, the HRA levy falls outside of levy limits. Thus, if levy limits were imposed in 2007, the lIRA would not be included in the overall total that the City may levy. At the HRA's monthly meeting of September 13, 2005, the HRA authorized a levy of $271,339. Council accepted the HRA's recommendation and adopted the $271,339 at its regular meeting of September 13, 2005. Recommendation: Motion to recommend that City Council adopt Resolution #05-12-XXX adopting the 2005, payable 2006 HRA tax levy. Committee Action: Motion to adopt Resolution #05-12-XXX adopting the 2005, payable 2006 HRA tax levy in the amount of $271,339. Review Checklist: City Administrator FC: 12/13/05