08/24/2009 Council Packet - Laserfiche WebLink

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• Limitations The Lino Lakes Gty Charter makes it significantly more difficult to use special assessments as an economic development tool than in other communities. The Clty Charter contains a process to allow property owners to use petitions to protest a special assessment project prevent from occurring if the is sufficient opposition. In addition, if the proposed special assessment is for less than 100% of the cost of the improvement, the City Charter requires a citywide vote on the Project- Special Service District A special service district is a tool for financing the construction and maintenance of public improvements within a defined area. Minnesota Statutes, Sections 428A.01 through 428A.10 govern the creation and use of special service districts. This legislation is currently scheduled to sunset in 2009. A special service district provides a means to levy taxes (service charge) and provide improvements and service to a commerdal area. Housing Improvement Area The City has the power to establish a special tmdng district to make improvements in areas of o wneromupied housing (Minnesota Statutes, Sections 428A.11 through 428A21). The housing improvement area is similar in concept to the special service district It is a special taxing district that can be used to finance a variety of improvements. Utility Revenues The city operates three municipal utilities: water, sanitary sewer and storm water. The revenues from the operation of these utilities are available to pay for capital improvements in support of community development initiatives. State Law (Minnesota Statutes, Section 444.075) gives the authority to pledge these revenues to general obriigation bonds for utility system improvements. Street State Aid The city receives state aid for the construction and maintenance of the local streets. This aid can only be used for streets designated for inclusion in the local state aid street system. These revenues can also be pledged to pay debt service on bonds issued for the aonstrudion and maintenance of state aid streets (M.S. 162.18). Street Reconstruction A relatively new municipal power is the ability to issue bonds to finance street reconstruction projects (M.S. 47558). To use this authority, the streets to be reconstrucbed must be part of a "street reconstruction plan' that describes the streets to be reconstructed, the estimated ate, and any planned recorstruction of other city streets over the new fire years. The issuance of the bonds must be approved by a vote of all of the members of the governing body following a public hearing. The issuance is subject to a reverse referendum provision. The city must hold an election prior to issuance if petitioned by voters within 30 days of the public hearing. Unlike most municipal debt, these bonds are subject to the debt limit. Lease Revenue Bonds Public buildings can be financed through the issuance of lease revenue bonds. This tool combines taro pieces of statutory authority. A housing and redevelopment authority (or ®A using these powers) has the ability to issue revenue bonds to finance projects pursuant to a redevelopment plan. These projeds can include the construction of public buildings. Most HRAs do not, however, have sufficient revenues to severe these bonds. A city can provide this revenue through a lease