CCMin_82Jul22_Special/Public_Hearing

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J :it'UTES SP~'CIAL CITY CCt?TdCII~ '.'~L'TIi~'G~PliBLIC 'rTA_"Ii';G JULY 22, 1982 PACT 1~ :^.Tayor 'sarkentien -;ade a mot~.cn, seconded by Councilmember Larson, that the Public Fearing be cancelled but al1_ovt :~~iscal Corsul_+ant Cheno?veth tc brief the CotLncs_l on `pax Increment Fs.nancirg. Ph lip ~'. Cheno?~reth, ~~iscal Cansultart,, explained the alternative financing plan for storm sewer construction and connection to ~t. Paul plus financing the necessary utilit~.es to the City :ia11 site. He presented several. exhibits as follovrs: Exi?i.bit 1.00 reflected only the connectiior. costs to the City of St. Paul (:345,000 of the :5750,000 bond issue v;ould be used for this pu_rpose); exhibit 2.00 listed the items totaling :~~632,41~7, vrnich arrives at a :750,000 bond issue--assuming the city ~vould a~.:thorize the issue under ~,.5. Chapter 429, at least ?_0' of the cost must be assessed to berefitting rroperty owners and tv:enty percent of X750, 000 is 5>150, 000 which herropused be assessed over tern years at tv;elve percent; exhibit 2.01 indicated a possible maturity of the bond issue, the assessments at 12~; and the resul-+„ing mill levy needed to meet the debt ser~Tice rec,uiremen±as. Tr;e highest ]_evy indi-cated was 3.47 mi~.1s ar?d 3.4 mills was used to shovr the tax impact; Exhibits 3.00 and z~.00 shoti^~ed t he t ax impact of a 3.!~ mi1.1 cit~~ra;_de levy on homestead property f or citizens 65 years (Exhibit 3.00) and. those over 65 or 'r'rho are disabled (Exhibit 1.00); and Exhibits 5.00 a,nd 6.00 showed t'_~e tax impact for the connection to the City o.f St. Paul. PUBLIC HEc"~RI~?G CAidC~? ~~"D Pi'_ILIP?. FISCAi r* n- n~~T.r- T ~~..,.5u ~ n1v ~ E~PLA1~;] ALTE.R'`,'ATF r I~?ATCI2~G ~LAP~ I''OR STOR,i SF:"~ COnrSTI?'?CTTOn? Attorney Swanson advised that if the project were financed by general obligation bonds, under state lav: i.f 20 percent is assessed of the cost, i_t would. be necessary to levy a ta.x for the bal.a.nce of the debt sezYvi ce on the bonds. AT The special assessment income plus the tax levy e ach year should amount to S~~'•` 105 percent of the debt service each year. In levying a tax levy for the ~'I- issuance of the bonds, under state l.aw the tax levy ca.n be cancelled if' at C1E any time ad.~iti.c.;nal spocial assessments should be levied. If 20 percent OB of the total costs are levied up front, the balance could be deferrad as BO to other parcels that are benefitted. These sr~ecial assessments could be levs_ed at a later date either during the term of the bond issue er beyond if the bonds are retired. The reason for the tax levy throughout the City is that it is required by 1_avr if the bonds are issued in the manner suggested; that is, the general obligation bonds. Councilmember Cierni.a asked if the `":.350,000 connection costs to the City of St. Paul ?~:rould be reduced if only the City mall. and I~ewlett-Packard were connected. Engineer ~chunicht advised that it could ,e anproximatoly half the proposed crarges anc? that 'ne would contact St. "au1 regarding t he matter. Ciernia asked if the 13.567 mill is expected to remain unchanged for several years and Clerk Administrator Barnes advised that i_t would. he also asked if Hewlett-Packard w ould receive ary benefit from the storm sewer connection and he was advised that them vrould be a positive benef.i.t. Hewlett-Packard is in agreement with the project. T()?l,jG ~r :A'.SO` J ,,-AT.,TC.,,S BY T~RAL LIGATION i~S