Laserfiche WebLink
429.091 LOCAL IMPROVEMENTS, SPECIAL ASSESSMENTS <br />658 <br />429.091 FINANCING. <br />Subdivision 1. Authority. At any time after one or more improvements are ordered <br />as contemplated in section 429.031, the council may issue obligations in such amount <br />as it deems necessary to defray in whole or in part the expense incurred and estimated <br />to be incurred in making the improvement or improvements, including every item of <br />cost of the kinds authorized in section 475.65. In the event of any omission, error, or <br />mistake in any of the proceedings required precedent to the ordering of any improve_ <br />ment, the validity of the obligations shall not be affected thereby. The council shall <br />cause all further actions and proceedings to be taken with due diligence that are <br />required for the construction of each improvement financed wholly or partly from the <br />proceeds of obligations issued hereunder, and for the final and valid levy of special <br />assessments and the appropriation of any other funds needed to pay the obligations and <br />interest thereon when due. <br />Subd. 2. Types of obligations permitted. The council may by resolution adopted <br />prior to the sale of obligations pledge the full faith, credit, and taxing power of the <br />municipality for the payment of the principal and interest. Such obligations shall be <br />called improvement bonds and the council shall pay the principal and interest out of <br />any fund of the municipality when the amount credited to the specified fund is insuffi- <br />cient for the purpose and shall each year levy a sufficient amount to take care of accu- <br />mulated or anticipated deficiencies, which levy shall not be subject to any statutory or <br />charter tax limitation. Obligations for the payment of which the full faith and credit <br />of the municipality is not pledged shall be called assessment revenue notes or, in the <br />case of bonds for fire protection, revenue bonds and shall contain a promise to pay <br />solely out of the proper special fund or funds pledged to their payment. It shall be the <br />duty of the municipal treasurer to pay maturing principal and interest on warrants or <br />revenue bonds out of funds on hand in the proper funds and not otherwise. <br />Subd. 3. Method of issuance. All obligations shall be issued in accordance with the <br />provisions of chapter 475, except as provided in this subdivision. <br />An election shall be required for bonds if less than 20 percent of the cost of the <br />improvement to the municipality is to be assessed against benefited property. <br />If the full faith, credit, and taxing power of the municipality is not pledged and the <br />bonds are issued to finance a fire protection system, a public sale shall not be required <br />and the obligations may <br />(a) mature at any time or times within 30 years from date of issue, <br />(b) mature in the amount or amounts, <br />(c) be sold at a price equal to the percentage of their par value, plus accrued inter- <br />est, and <br />(d) bear interest at the rate or rates, <br />as agreed by the purchaser and the municipality, notwithstanding any limitation of <br />interest rate or cost or of the amounts of annual maturities contained in any other law. <br />The maturities shall be such as in the opinion of the council are warranted by the <br />anticipated collections of assessments and ad valorem levies for the municipality's <br />share of the cost; except that the council may in its discretion issue and sell temporary <br />improvement bonds maturing and subject to further conditions as set forth in subdivi- <br />sion 5. All obligations shall state upon their face the purpose of the issue and the fund <br />from which they are payable. The amount of any obligations issued hereunder shall not <br />be included in determining the net indebtedness of any municipality under the provi- <br />sions of any law limiting such indebtedness. <br />Subd. 4. Funds. The proceeds from the sale of each issue of obligations and from <br />collections of special assessments levied and other moneys appropriated for each <br />improvement to be financed wholly or partly from such proceeds shall be credited to <br />a separate construction fund which shall be used solely to defray expenses of such <br />improvements and payment of principal and interest due upon the obligations prior <br />to completion and payment of all costs of the improvements so financed. Any balance <br />of the proceeds of bonds remaining therein may be used to pay the cost, in whole or <br />659 <br />in Pa <br />ascot <br />impr <br />of sP <br />debt <br />in Se <br />tiorr <br />imp <br />met <br />anY <br />of <br />rec <br />sha <br />im <br />bu <br />exi <br />ye: <br />sh <br />re. <br />cc <br />it <br />Ir <br />a <br />tl <br />e <br />