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Mr. Michael Grochala <br />April 25, 2005 <br />Page Two <br />This provision indicates that the City cannot utilize monies from the City general fund <br />for construction of a local improvement. It would seem upon the first reading that <br />since the feasibility report is a part of the local improvement process under the City <br />Charter and Minn. Stat. §429 that an expenditure of City general funds would be <br />prohibited. Nevertheless, the Charter does require that if you are going to use the City <br />general funds, you have to hold an election and submit to the voters the associated <br />assessment formula. Without a feasibility report, there is no way that the City would <br />.know the costs of the improvement and the potential assessment and the formula for <br />levying them. This would result in the City never being dhle . to commence a local <br />improvement project and submit this to the voters for approval. It is my opinion that <br />such an interpretation prohibiting use of general funds for the feasibility report would <br />make the process impossible to institute and not a reasonable interpretation. <br />Accordingly, my opinion is that the City can use general funds for the cost of the local <br />improvement since it is obligated under the Charter to provide this information to the <br />voters on election. Even though this is an essential step of the local improvement <br />itself and the costs would be included in the local improvement, I believe the other <br />requirements of the Charter to develop a formula for an election would make it <br />reasonable to use funds in this manner. Since this is the only cost that would be <br />necessary- for an election, 1 do not believe other local improvement expenditures, such <br />as preparation of plans and specifications, costs of soliciting bids and costs of the <br />actual improvements could be paid for by the general fund unless there is <br />authorization by the voters as provided in subdivision 2. <br />If you or the Council have any further questions, please feel free to contact me. <br />Sincerely, <br />William G. Hawkins <br />WGH /hgp <br />