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She explained the determination of property tax includes a formula with a current cap of 15% on the increase in the taxable value. The taxable value was supposed to equal the estimated market value by 2006, but that has been extended to 2008. Councilmember Elvig stated he is delighted with this budget. The personnel that staff felt was necessary has been added to the budget, and the City is overcoming some capital losses of the last few years. Capacity is being added to the City at 15% with only an 8% cost to the residents. Motion by Councilmember Elvig, seconded by Councilmember Strommen, to recommend that the City Council adopt the resolution Adopting the 2005, Payable 2006 Municipal Tax Levy, and adopt the resolution Adopting the 2006 City of Ramsey General Fund Operating Budget. Further discussion: Chairperson Strommen indicated she agrees a good job was done of adding what was necessary to the budget while keeping the taxes at a rate that is generally acceptable. Councilmember Elvig commented on the amount of infrastructure being put in the ground, as well as a municipal center and parking ramps, while the taxes are being held at this level. He stated he appreciates the efforts that were made to hold the budget down. Motion carried. Voting Yes: Chairperson Strommen, Councilmembers Elvig and Mayor Gamec. Voting No: None. Absent: Councilmember Olson. Case #2: Review and Adopt 2006 EDA Levy Finance Officer Lund explained the EDA levy is based on the City's taxable market value, and for payable 2006, the City would be allowed to levy $341,624. The majority of the levy would be used to pumhase properties that are targeted for 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. Ms. Lund advised at the EDA's monthly meeting on Wednesday, September 7, 2005, the EDA authorized a levy of $341,624. The Council accepted the EDA's recommendation and adopted the $341,624 levy at its regular meeting of September 13, 2005. Mayor Gamec asked if the EDA levy is included in levy limits. Finance Officer Lund replied the $341,624 and the amount included in the general levy becomes the beginning number if there are levy limits in place. Chairperson Strommen stated the EDA has been aggressive about purchasing and redeveloping property. There have been a lot of new businesses utilizing the redeveloped land. It is important to have funds reserved for these types of projects. Motion by Councilmember Elvig, seconded by Mayor Gamec, to recommend that the City Council adopt the resolution adopting the 2005, payable 2006 EDA tax levy. Finance Committee / December 13, 2005 Page 2 of 6