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that are outstanding at the time the advances are made. <br />Advances made to acquire land and to construct facilities <br />for recreation purposes, if authorized by law, need not <br />be reimbursed. Minn. Stat. S469.106. The repayment <br />provisions of this section imply that advances can only <br />be made by way of an installment sale or financing lease, <br />which necessarily limits the type of costs which can be <br />financed under this provision to property susceptible of <br />being leased or sold. <br />3. Issuance of Obligations. <br />(a) Issuance of General Obligation Bonds. <br />The Authority may issue general obligation bonds in <br />anticipation of income from any source, in the principal <br />amount authorized by a two thirds vote of the City <br />Council, for the purpose of acquiring property or for any <br />other purpose set forth in the Act. The bonds must be <br />sold by public sale, and the form and interest rate must <br />be set by the City Council. The issuance of the bonds is <br />governed by the Act, except for matters that are not <br />covered in the Act, which are governed by Chapter 475 <br />(Public Indebtedness). An election is required for the <br />issuance of the general obligation bonds unless the bonds <br />otherwise qualify for an exception from the election <br />requirement under the provisions of Chapter 475. The <br />election requirement may only be avoided for general <br />obligation bonds if at least 20% of the debt service will <br />be paid from tax increments, in which case the procedures <br />of the Tax Increment Financing Law must be followed. The <br />bonds must mature within 20 years from the date of <br />issuance. The City Council must, by ordinance, give <br />specific consent to the pledge of its full faith and <br />credit to the bonds. The bonds are payable from taxes <br />levied by the Authority on all taxable property in the <br />city, which taxes must be in an annual amount at least 5% <br />in excess of the annual principal and interest on the <br />bonds. Minn. Stat. 5469.102. <br />(b) Issuance of Revenue Bonds. <br />Revenue Bonds may be issued by the Authority to <br />acquire land, to purchase or construct facilities, to <br />purchase, install or furnish capital equipment, or to <br />extend, improve, or enlarge a project under its control. <br />The bonds issue may also include a reserve to secure the <br />payment of principal and interest on the bonds. The <br />12 <br />Page 14 <br />