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Fc#3 ADOPT RESOLUTION APPROVING PROPOSED 2007 EDA 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. The EDA budget has been funded primarily through two sources: 1) the HRA/EDA Levy and 2) proceeds from the sale of City/EDA owned property. As mentioned above, 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 2007, the City would be allowed to levy $393,375. The majority of the levy would be used to purchase 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. At the EDA's monthly meeting on Thursday, September 7,2006, the EDA authorized a levy of $393,375. 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 2007 in the amount of$393,375. Committee Action: Motion to recommend Council Adopt Resolution #06-09-XXX approving the recommendation of the EDA and approve the Proposed EDA Levy for Payable 2007 in the amount of$393,375. Review Checklist: City Administrator Fe: 09/11/06