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City Council Regular Meeting —12/OS/OS DRAFT Minutes � Page 3 Mr. Miller provided comparisons for budget and levy impacts based on typical home values, as well as incorporating a 15% increase in property valuation based on State legislation and restructuring and revising property values and class changes for commercial and residential properties throughout Ramsey County and the State of Minnesota. Mr. Miller provided a seven-year cumulative percentage increase comparison (as adjusted for lost state aid) with inflation; as well as a 2005 city tax comparison for metro-area cities with populations of 25,000 — 45,000; based on an average home valuation of $185,000. Mayor Klausing invited public comment following Mr. Miller's presentation. Councilmember Ihlan provided clarification of the proposed 7.5% proposed Levy increase as a"not to exceed" figure, with the City Council continuing their discussions and negotiations for a smaller Levy increase. Councilmember Ihlan also clarified that the figures presented by staff didn't include the proposed increase in the Housing and Redevelopment Authority (HRA) Levy, and asked staff to respond with the total proposed Levy increase for the General Fund and HRA Levies. Mr. Miller concurred that the General Fund Levy didn't include the HR.A's proposed Levy increase; and that the proposed HRA levy increase represented approximately $6-7 annually on a residential property. Councilmember Ihlan clarified further that the City Council was the approval body for the HRA Levy; and that it was not a separate taxing jurisdiction. Councilmember Kough sought clarification from staff on the City's identified "Tax Reduction Fund," its purpose and amount. Mr. Miller clarified that the City Council, in approximately 1997 or 1998, had established the Tax Reduction Fund, currently amounting to approximately $2.5 million in principal, as a type