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HomeMy WebLinkAboutCC AGENDA 12221970 Meeting Sheet IIIIIIVIIIVIIIVIIIVIIIVIII IIIIIIII 106161 Box: 36 Folder: CC MINUTES AND AGENDAS 1970 Document: CC AGENDA 12221970 VILLAGE OF ST. ANTHONY If COUNCIL AGENDA December 22, 1970 1. Call to Order 2. Roll Call 3. Minutes a. Regular meeting, December 8, 1970 4. Council Roards a. Planning Board meeting, December 15, 1970 5. Resolutions, Ordinances a. Resolution parking restrictions b. Resolution transfer of funds c. Amendment personnel ordinance reelongevity-discussion 6. Bids-None 7. Correspondence, Reports a. Village Attorney 1. Motion to dismiss-election contest 2. Former Village Volunteer Firemen Suit 3. Report false arrest insurance b. Public Safety Report c. Letter-City of Crystal re: Homestead classification d. 3rd Quarter liquor report e. Ballot League of Municipalities-legislative policy f. Report-Street lites installed-N.S.P. 8. Old Business-None 9. Miscellaneous a. Guidelines-Human Relations Committee b. Appointment-Acting Manager, Clerk c. Statement legal services-$1,447.50 d. Statement-Courtylegal services $166.25 & 241.35 e. Statement-Minnesota Hwy. Dept. 1. Discussion-Temporary finance projects 1970-1 and 1970-1A f. Engineers Estimate 1 . Improvement 1970-1 $280.54 2. Village Engineer services-$525.43 3. Improvement 1968-4 $501.38 10. Verified Claims 11. Contract Payments-None 12. Adjournment AEAGUE OF MINNESOTA MUNICIPALITIES 3300 University Avenue S.E. Minneapolis, Minn., 55414 November 18, 1970 Phone: Area 612/373.9992 T0: Mayors and Councilmen in Member Municipalities (c/o the Manager or Clerk) Since the close of the Legislative Conference in June, two significant items have been proposed as additions to the League's Legislative Policy. Following consideration and approval by the Revenues Committee, the Executive Committee of the League has authorized submitting these proposals for member consideration through the mail ballot provision of the League Constitution. Article VI, Section 2 of the Constitution provides that: In lieu of approval at a business meeting or legislative conference an official commitment may be made by mail ballot on any subject of legislation when authorized by the executive committee. No commitments shall be made by mail 10 ballot unless ballots are cast on the question by at least 20 per cent of the member municipalities through their legislative bodies and at least two-thirds of the munici- palities voting approve the commitment. At least ten days shall elapse between the mailing of the blank ballots and the counting of the marked ballots. The two proposed policy additions, and background information on them, are , included with this letter. We are asking clerks and managers to circulate this information to their mayor and council members, and place the question on an early meeting agenda. A single ballot for your municipality is enclosed, and it is important that this be returned to the League with your municipality clearly identified. To allow sufficient time for council to act and for votes to be returned, we plan to make the canvass on December 30, 1970. If there are any questions either about the proposals or the procedure to be followed, please contact me or a member of the staff. Sincerely yours, P", 6. f,,4 Dean A. Lund Executive Secretary iCGW:ral Encl. ' Comments on Proposed Policy Additions State Guarantee of Local Bond Issueso The irst proposal is a recommendation that the state place the full faith and credit of its taxing powers behind the general obligation bond issues of local government units. In the past year and a half, some municipalities both outstate and in the Twin Cities area have found that money for their capital needs has been both difficult and expensive to obtain. It seems probable that the state guarantee would improve substantially the bond ratings for these municipalities, resulting both in improved marketability of their bonds and in considerable interest rate savings. While there is no history of defaults on Minnesota municipal general obligation issues, the insurance fund included in the proposal will serve as an additional safeguard against delinquencies or defaults, so that the credit of the state in no case would be impaired. An important feature of this proposal is its voluntary nature, Participation in the state guarantee program would be at the discretion of the municipality. Each local unit would continue to have, within its statutory limit, the freedom to undertake its own financing, and in no case would review by a state agency be made under this proposal. Short-term Financing, The second proposal would give municipalities additional flexibility in short-term financing, allowing them to establish limited lines of credit with banks. Apart from the discretion which a prospective lender may be expected to exercise, the proposed authority would be restricted in two ways. First, a three-year time limit is proposed. Second, instead of specifying a dollar limitation, the proposal includes an alternative which allows for the differing financial conditions of municipalities. Similar safeguards have proved very workable, as in M.S.A, 412.221 Subd. 2 (conditional sale contracts, contracts for deed) and M.S,A, 412.301 (certificates for indebtedness for purchase of emergency equipment) . Both statutes provide that where the amounts involved exceed one per cent of the assessed valuation, the municipality must publish a resolution determining to proceed with the proposal and an election is required if within 10 days after publication a petition signed by voters equal to 10 per cent of the number of votes at the last regular municipal election is filed with the clerk, Of course, if the voters then reject the proposal, the community cannot proceed, On the other hand, if no such petition is filed, the municipality is free to make the contract, etc. As you are probably aware, the practice of issuing warrants - the one really useful short-term financing alternative available to most municipalities - has been criticized in recent years by the Public Examiner and the Minnesota Bankers Association. In 1969, a bill was introduced in the legislature to prohibit the issuance of warrants and it is possible that a similar bill will be introduced in 1971. If warrants are to be outlawed, then a satisfactory substitute must be provided. Discussions with the above groups have indicated that they would favor the proposed short-term borrowing authority. ral 11/18/70 40 Proposed Additions to Municipal Policy and Legislative Proposals of the League of Minnesota Municipalities Each item should be voted on separately on the enclosed postcard ballot. • State Guarantee of Local Bond Issues, An unduly large percentage of Minnesota municipalities have bond ratings which result in interest rates approaching legal limits and which make their obligations generally ineligible for the portfolios of banking institutions. The League recommends legislation which would place the full faith and credit of the state behind the general obligation bond issues of all local government units. Such a program would be an effective and immediate means of alleviating the situation. In order to pay any delinquencies or defaults, an insurance fund should be created and financed by a uniform assessment not to exceed 1% of the particular bond issue, against those issuers of bonds, who wish the state to guarantee their obligations. Short-term Financing. Minnesota municipalities are severely hampered by limited means of short-term borrowing. Presently available alternatives lack flexibility and are otherwise restricted as to use and manner of issue. The League recommends legislation which would authorize municipalities to establish limited lines of credit with banks whereby local units could directly borrow amounts for a period of up to three years without voter approval, except where the amount exceeds one per cent of the assessed valuation of the municipality, in which case a referendum would be required upon filing of a requisite petition. ral 11/18/70