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competitive position has changed over time or if they still need to give the same incentives they did some years ago. There are a lot of policy aspects that come up with this, but the bottom line is without this levy the EDA does not have a budget or tools at its discretion to use. Finance Officer Lund advised previously TIF interest earnings were used to fund the EDA, and that ability was taken away. Regarding the discussion of land sales, she does not believe the City gives away the land; they have done pay-as-you-go. Councilmember Look stated he will likely abstain from ~his vote. He would like the EDA levy to be kept as commercial and away from the residential portion. He understands the $35 is nothing to be exceptionally concerned over from an annual tax statement standpoint. However, his concern, which he does not know is resolvable this year or with this levy, is to look at the imbalance and start weighting the scales the other way. They are heavily paying for it from a tax standpoint residentially. Motion by Councilmember Elvig, seconded by Chairperson Strommen, to recommend that the City Council adopt a resolution approving the recommendation of the EDA and approve the Proposed Levy for Payable 2008 in the amount of $393,375. Motion carried. Voting Yes: Chairperson Strommen and Councilmembers Elvig. Voting No: None. Abstain: Councilmember Look. Case #2: Adopt Resolution Approving Proposed 2008 Payable Tax Levy Finance Officer Lund stated the proposed resolution reflects a levy of $9,059,173. This levy keeps the rate approximately the same as 2007, with 39.42% for 2008 versus 39.44% for 2007. This number is an estimate, as the County's numbers are not currently set. Last year the City levied about $8,600,000 at the final adoption after a preliminary levy of $9,039,000. Councilmember Elvig asked if it is anticipated that this levy could be reduced. Finance Officer Lund replied not unless Council is looking at cutting services, which is the biggest portion of the budget. As of now this includes the transfer from the Equipment FlIDd at about $1,000,000. Councilmember Elvig asked if the levy and budget includes the $90,000 in either a change in the sealcoat policy or an additional police officer. Finance Officer Lund explained the $90,000 is included in the budget as a contingency. At the last work session there was a 3/2 discussion in favor of keeping the sealcoat assessment as it is. Councilmember Elvig verified with Finance Officer Lund that the levy cannot be increased once the preliminary levy is adopted. He stated he is not up for either the change in the sea1coat policy or the additional police officer. That being said, it is not the right format to fight it here with only three of the councilmembers present. Finance Committee / September 11, 2007 Page 4 of6