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<br />the limit, so it is not likely to be a limiting factor in the City of <br />Lino Lakes.) <br /> <br /> 6. In citie s that operate under Chapter 429, it is possible to combine <br />special assessments with street reconstruction bonds. For example <br />a city might specially assess 10% of the cost of a street <br />reconstruction project, which is not enough to allow issuance of <br />impro vement bonds without election. But the City could hold a <br />hearing on street reconstruction bonds, and if no petition is filed, <br />issue the bonds without election and use the special assessments to <br />pay 10% of the debt service (with a tax levy covering the res t.) <br /> <br /> 6. Lino Lakes does not have this combined -financing option, because <br />if any portion of the street reconstruction cost is specially assessed <br />(even 1%), the project itself must go to the voters under the <br />Charter. The result is that Lino Lakes has only these options to <br />issue bonds for street reconstruction without election : <br /> <br /> If 100% of the cost is paid from special assessments (or <br />other revenues)—in which case the bonds are <br />“improvement bonds;” or <br /> <br /> If the city does not specially assess at all, but inste ad issues <br />street reconstruction bonds paid entirely with a tax levy <br />(assuming no petition is received that triggers an election). <br /> <br /> See below for other options that involve combinations with <br />utility bonds. <br /> <br /> E. Utility Bonds <br /> <br /> 1. Utility revenue general obligation bonds (or “utility bonds”) are <br />issued in part under either Minnesota Statutes, Chapter 444 (in the <br />case of water, sewer and storm sewer improvements), or Section <br />115.46 (in the case of wastewater treatment improvements). The <br />bond proceeds may b e used only to finance one of those utilities — <br />so these bonds are not an option for general street reconstruction, <br />though they can be used to finance just the utility portion of a <br />street reconstruction project. <br /> <br /> 2. The bonds must be payable primarily from net revenues of the <br />water, sewer, and/or storm sewer utility. That is, the city must <br />expect that net utility revenues will be sufficient to pay the bonds, <br />but if revenues ever fall short, the City still promises to levy an ad <br />valorem tax to cover any sho rtfalls. <br /> <br /> 3. One exception to the above rule is for wastewater treatment <br />facilities (which include all types of sewer improvements). For