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EHLERS AND ASSOCIATES, INC. <br /> FINANCIAL SPECIALISTS <br /> FIRST NATIONAL-SOD LINE CONCOURSE 507 MARQUETTE AVE. MINNEAPOLIS, MINNESOTA 55402 339-8291 (AREA CODE 612) <br /> i <br /> fr <br /> November 5, 1979 ' ..qv /'J <br /> X 4 0,1S <br /> Np <br /> rp' <br /> Mr. Duane McCarty g, 1. "- <br /> Mayor, City of Mounds View t�I tt <br /> City Hall `E'' �,�et�,- 'fit'' . <br /> 2401 Highway 10 —s.:5 www' <br /> St. Paul , Minnesota 55112 Y' 'L)ERZ <br /> RE: Proposed Charter; Financing <br /> We have been asked to comment on the proposed city charter, particularly with <br /> reference to financing measures. <br /> Referendum: Under Chapter 5, fifteen percent of the electors (last presidential <br /> election) may petition for a referendum of any council adopted measure. As to <br /> financing local improvements, which typically involve a number of council <br /> resolutions, the procedure could become very cumbersome if each resolution is <br /> subject to, and must wait 30 days for a possible challenge. Referenda, coupled <br /> with the delays and counter petition measures provided in Section 8, could mean <br /> that a majority of those voting could deny vitally needed local (special assess- <br /> ment) improvements to areas of the city. If local improvements are to be subject <br /> to challenge (referenda) we suggest that such challenges apply only to the <br /> resolution ordering the improvement. <br /> One hundred and twenty days, four months, to the next election, on top of a 30 day <br /> referenda petition period, on top of 60 days after a preliminary hearing for <br /> petitions in opposition may cause a vital local improvement to lose a whole <br /> construction season. No financing could take place until all the times for <br /> petitions, for referenda, referenda themselves and times for counter petitions <br /> against improvements have been exhausted. <br /> Long-Term Financial Plan; Section 7.05: Good, if it is assumed that new facts <br /> and needs may dictate modifications and that added local improvements may be <br /> undertaken after the required hearings under Minnesota Statutes, Chapter 429 <br /> (or under Section 8 of the draft charter, should that section be adopted) . <br /> Budget Enforcement; Section 7.07: As to debt service on bonds, it must be <br /> assumed that these payments would be legitimate obligations whether or not included <br /> in the budget. Otherwise, the city could suffer a bond default, lowered bond <br /> ratings and higher interest cost. <br />