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3 <br />MEMO TO: Mayor and City Council <br />FROM: Clerk-Administra <br />DATE: October 6, 1982 <br />SUBJECT: ORDINANCE NO. 320 - AMENDING THE MUNICIPAL CODE OF <br />MOUNDS VIEW BY AMENDING CHAPTER 26 ENTITLED "PUBLIC <br />IMPROVEMENTS" <br />At the time the special assessments were levied in the Silver <br />Lake Woods Subdivision for the public improvements installed by <br />the City in that Subdivision, Mayor McCarty raised a question <br />regarding the interest rate limits established by Chapter 26 of <br />the Municipal Code versus the statutory limitations and the <br />interest rate stipulated in our bond sale papers. <br />Discussions of this item with our bond counsel, as well as <br />City Attorney Meyers, revealed that Chapter 26 was written at <br />a time when the interest rates on special assessments were limited <br />to 8% and several changes over the past years in State statutes <br />have allowed cities to establish interest rates at or one percent <br />above the average interest at which the bonds were sold or the <br />interest rate established by an index computed by the Minnesota <br />Department of Revenues. It was the recommendation of City <br />Attorney Meyers in a letter dated September 22, 1982, a copy <br />attached, that Chapter 26.10, Subdivision 2, be amended to provide <br />that the interest rate on special assessments not exceed the <br />maximum permitted by law in order that our interest rate level <br />might be compatible with whatever statutory requirements exist. <br />With that in mind, staff has prepared Ordinance No. 320 for <br />your review and consideration containing the amendment recommended <br />by City Attorney Meyers. <br />DFP/pf <br />Attachment <br />