Agenda Packets - 1985/01/02 - Laserfiche WebLink

Home Browse Search

RS-5. LICENSE FEES (R) makes no sense to grant that power and then to deny them the power to set off -sale liquor and on -sale wine license fees as well as Sunday liquor and bottle club fees. There is no evidence to show that litting the statutory cap would lead to unjustified fee increases. Some sort of reasonable increases in off -sale license fees could he expected in light of the fact that the statutory maximum fee hasn't been increased for over 30 years, RS-6. SPECIAL ASSESSMENT FINANCING (8) t charges on special assessments an interest rate that more full SS2ecial assessments financed by bonds. In 1982 the legislature changed the law governing the statutory interest ceiling for municipal bonds. The new law, which provides for a floating monthly maximum interest rate, creates a problem concerning the interest rate which a municipality may charge on special assessments. The interest rate which may be charged is determined according to the maximum rate allowed to be paid on municipal bonds for the month in which the resolution authorizing the special assessment is adopted. If a city sells the assessment bonds in a later month, the interest rate payable on the bonds may be greater than that allowed to be charged for the special assessment. The city is left having to absorb extra costs. The League recommends that the law be changed to ensure that a city may charge an interest rate on special assessments at least one percentage point higher than the rate payable on the bonds which finance the assessment. Special assessments financed internally by a city.. M.S. 429.061, subd. 2, restricts to I. percent the interest rate a city may charge on internally financed special assessments. The League recommends that the allowable interest rate be increased to more accurately reflect the cost to the city of internally financing assessments. M.S. 412.32 should be amended so that all Minnesota cities are issue .five-year equipment certificates' in an amount not to exceed of the cit s assessed valuation in anv eiveu veer. No reverse ref Statutory cities in Minnesota have the power to issue certificates of indebtedness, payable in not more than five years, to purchase fire, police, ambulance, street construction, or maintenance equipment. (M.S. 412.301.) If the amount of the certificates exceeds one percent of the city's assessed valuation, a reverse referendum provision applies. In 1983, the Legislature granted similar financing powers to Minnesota's home rule charter cities (M.S. 412.32), without any reverse referendum provision. However, the total principal amount of the certificates (or "capital notes") issued in a fiscal year is limited to no more than one -tenth of one percent of the city's assessed value that year. In many cities, this limit is prohibitively low, and effectively prevents the city from making use of the authority granted in this statute. -44-