CR 99-129 Revisition Of City Charter
O,JUly 12, 1999 ~ Council Report 99-129
REVISION OF CITY CHARTER
Proposed Action
Staff recommends that the Council approve the following motion: Approve Ordinance 99-825 for first reading.
This action will continue the process of amending the City Charter.
Overview
The Hopkins City Charter was adopted in 1947. It was last updated in 1998. The Hopkins Charter
Commission met in April and June ofthis year and voted to make a number of changes in the City Charter.
Ordinance 99-825 was drafted by city staff and distributed to the Charter Commission. The Commission met
on June 8, 1998 and voted to recommend the adoption of Ordinance 99-825 by the Hopkins City Council.
The City Council, at its July 6 meeting, ordered a public hearing for July 20.
Oprimarv Issues to Consider
0 What changes are being recommended in the Charter?
What is the process for amending the City Charter?
Supporting Information
0 Analysis of the issues.
0 Alternatives
0 Ordinance 99-825
0 Me jdum to the Charter Commission from Lori Yager
c,
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OCouncil Report 99-129
Page 2
Analysis of the Issues
What changes are being recommended in the Charter?
Ordinance 99-825 would make the following changes to the City Charter:
Bring the definition of debt into conformance with state law
Allow the city to issue bonds for a longer period than 20 years
What is the process for amending the City Charter?
The City Charter may be amended by Ordinance using the following procedure:
Upon recommendation of the Charter Commission, the City Council may enact a Charter Amendment
by Ordinance. Such an ordinance, if enacted, shall be adopted by the Council by an affirmative vote of
all its members after a public hearing upon two weeks published notice containing the text of the
proposed amendment and shall be approved by the Mayor and published as in the case of other
ordinances. The City Council must adopt or reject the proposed ordinance in total. It cannot amend the
ordinance. An ordinance amending a City Charter shall not become effective until 90 days after
passage and publication or at such later date as is fixed in the ordinance.
0 Within 60 days after passage and publication of such an ordinance, a petition requesting a referendum
on the ordinance may be filed with the City Clerk. Such petition shall be signed by qualified voters
equal in number to 2% of the total number of votes cast in the City at the last date general election or
2,000, whichever is less. If the requisite petition is filed within the prescribed period, the ordinance
shall not become effective until it is approved by the voters as in the case of charter amendments
submitted by the Charter Commission, the Council, or by petition of the voters, except that the Council
may submit the ordinance at any general or special election held at least 60 days after submission of
the petition, or it may reconsider its action in adopting the ordinance.
Alternatives
1. Approve Ordinance 99-825 for first reading.
2. Do not approve Ordinance 99-825 for first reading and send the proposed ordinance back to the Charter
Commission for further action.
Staff recommends Alternative 1.
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CITY OF HOPKINS
O HENNEPIN COUNTY, MINNESOTA
ORDINANCE NO. 99-825
AN ORDINANCE AMENDING THE CHARTER OF THE CITY OF HOPKINS
UPON RECOMMENDATION OF THE HOPKINS CHARTER COMMISSION
PURSUANT TO M.S.A. CHAPTER 410.12, SUBD. 7
The City Council of the City of Hopkins, upon recommendation of and
from the Hopkins City Charter Commission does hereby ordain and
thus amend and adopt the following changes, deletions, and
amendments of or from the following chapters and sections of the
Hopkins City Charter:
Section 1. Section 7.14, Subdivision 4 is amended as follows:
Subdivision 4. The tot~l bonded debt of the City shall never not
exceed the limitations imposed by state law. ouch percent ~o the
legiol~ture ffi~Y determine for citieo of the O~ffie cl~oo aD Hopkino,
of the l~ot ~ooeooed v~lu~tion of the t~1table property therein, but
in computing the tot~l bonded debt, certifie~teo of indebtedneDD or
bondo iODued before or ~fter the ~doption of thio Ch~rter oh~ll not
be included or counted if (1) held in ~ oinking fund m~int~ined by
ouch City; or (2) iooued for ~ny public convenience or oervice from
Hhich ~ revenue to the City io to be derived; or (3) iooued to p~y
O for ~ny improvement the coot of \Jhich h~o been or io to be ~ooeooed
~g~inot the benefited property; or (4) iooued for the cre~tion or
m~inten~nce of ~ rerm~nent Improvement Revolving Fund; or (5) for
the purpooe of ~nticip~ting the collection of gener~l t~1~eo for the
ye~r in ~hich iooued.
Section 2. Section 7.15 is amended as follows:
Section 7.15. FORM AND REPAYMENT OF BONDS. All bonds iooued by of
the City shall be in regul~r numbered oerieo. In no c~oe oh~ll
bondo be issued to run for more th~n 20 ye~ro ~nd ~ll bondo oh~ll
m~ture oeri~lly ~o provided by pursuant to Minnesota Statutes,
Chapter 475 and other applicable provisions of State Law. ~
purpooeo for ,Jhich bondo are ~uthorized oh~ll be oet forth in the
ordin~nce or reoolution ~uthorizing them, and the proceedo from
ouch bondo oh~ll not be diverted to ~ny other purpooe.
o
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Section 3. The effective date of this ordinance shall be ninety
0 days after publication.
First Reading: July 20, 1999
Second Reading: August 3, 1999
Date of Publication: August 11, 1999
Date Ordinance Takes Effect: November 10, 1999
By
Charles D. Redepenning, Mayor
ATTEST:
Terry Obermaier, City Clerk
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APPROVED AS TO FORM AND LEGALITY:
City Attorney Signature Date
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April 14,1999 City Charter Report
0 AMEND CHAPTER SEVEN OF THE CITY CHARTER REGARDING DEBT
Proposed Action
Staff recommends adoption of the following: Move to amend the City Charter, chapter seven, sections 7.14 and 7.15
to provide clear and concise debt limitations and debt issuance provisions.
Adoption of this motion will result in staff eliminating a large section of 7.14, subdivision 4 and 7.15 and replacing it
with simplified criteria.
Overview
In Section 7.14, Subdivision 4 the City of Hopkins establishes the debt limit for itself. In reviewing this section it has
been determined that this language is confusing and makes it very difficult to determine how one would calculate our debt
limit under these criteria. In Section 7.15 the City of Hopkins requires bonds issued to be serial bonds and also limits the
maximum term to 20 years. It is appropriate that the City of Hopkins operate under the same rules and criteria as other
cities.
Primary Issues to Consider
The sole purpose of modifying Section 7.14, Subdivision 4 is to simplify and clarify the debt limit calculation for the
City of Hopkins (see section 7.14, subdivision 4 of the city charter). Very simply stated "the bonded debt of the City
shall not exceed the limitations imposed by State Law. This is defined in the Chapter 475 of the State Statutes. This
0 Chapter is attached for your brief review.
The purpose of modifying Section 7.15 is to allow the City of Hopkins to operate under the same rules and criteria as
other cities so as to not limit our options too severely when pertaining to debt issuance. The new Section will read
"All bonds of the City shall be issued pursuant to Minnesota Statutes, Chapter 475 and other applicable provisions of
State Law."
Recently, the City of Hopkins was rated by Moodys Investors Service and Standard & Poor's. The agencies
understand the prudent use of debt to address community development needs and to continue the growth of the City.
Those rating agencies indicated that the debt level in the City of Hopkins was at a manageable level. This means that
the debt is viewed as manageable given the revenues pledged to pay debt service and the "wealth" ofthe community.
The current analysis also accounted for additional housing and improvement debt planned to be issued in 1999.
Recommendation
Finance is recommending these changes in order to simplify the existing charter and to correct the charter to reflect past
practices.
Supportine Information
Chapter 475, Minnesota Statutes
Secti n 7.14 and 7 15 ofthe City Charter (amended)
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FUNDS
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Section 7.11. FUNDS. Subdivision 1. There shall be maintained in the City treasury a general fund
for the payment of such expenses as the Council may deem proper. Into this fund shall be paid all
moneys levied for this fund and all moneys not required to be placed in some other fund.
Subdivision 2. There shall also be maintained in the City treasury such other funds, or divisions of
funds, as the budget shall require or the City Manager and Council shall direct.
Subdivision 3. INVESTMENT OF CITY FUNDS. Any money in any fund belonging to the City, or
any branch thereof, may be invested by the City Manager according to policies adopted by the City
Council by the purchase of any bonds or other obligations authorized by State Statute in the case of
municipalities, and in addition thereto, by the purchase of bonds or other obligations issued by any
Housing or other Public Authority for the City of Hopkins created by or pursuant to Federal or State
Statutes.
Section 7.12. ALL MONEY BELONGING TO THE CITY. All money belonging to the City, or any
branch thereof, excepting only those funds collected by the County Treasurer, shall be paid to the City
Manager by the person authorized to receive the same, without unnecessary delay. All such money,
and also all money received upon tax settlements from the County Treasurer, shall be deposited as
soon as received by the City Manager in a bank or banks approved by the City Council.
0 Section 7.13. ACCOUNTS AND REPORTS. The City Manager shall be the chief accounting officer
of the City and shall submit to the Council a statement each month containing information relative to
the finances of the City as the Council may require. Each year the City Manager shall submit a report
to the Council, no later than June 30, covering the entire financial operations of the City for the past
year. This report shall follow the style and form, as far as practicable, prescribed for annual City
financial reports and copies will be made available to interested parties.
DEBT
Section 7.14. BONDED DEBT AND DEBT LIMIT. Subdivision 1. In addition to all the powers in
respect to borrowing and the issuance of bonds and certificates of indebtedness specifically or implied
granted by this Charter, and any amendments thereto, the City shall have all the powers with reference
to these matters authorized for cities ofthe same class by the laws ofthe State of Minnesota. The City
shall also have the power to issue and sell its bonds to the State of Minnesota or the United States.
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23
Subdivision 2. Without submitting the issue to a vote of the voters, the Council by a four-fifths vote
0 may authorize the issuance of Permanent Improvement Revolving Fund Bonds (PIR Bonds); and
Bonds to pay for any improvement the cost of which is to be assessed against benefited property; and
Bonds for any purpose which will produce revenue to the City; and Bonds for any other purpose
authorized to be issued by this Charter or the Laws of Minnesota without such vote. The Council shall
maintain the integrity of the Principal received from the sale of PIR Bonds creating the Permanent
Revolving Food by appropriations from other funds, if necessary. All improvement projects financed
through the Permanent Improvement Revolving Fund shall upon completion be certified by the City
Manager as to total cost, which shall thereupon be apportioned by the Council, either as assessments
against benefited property or as amounts due from other City funds. Amounts apportioned against
other City funds shall be due not later than the dates of adoption of the corresponding assessment rolls
and shall be paid into the Permanent Improvement Revolving Fund not later than the dates of
installment provided in such assessment rolls. Upon approval by the voters, the Principal of the
Permanent Improvement Revolving Fund may be transferred at interest by the City Council for any
use or purpose for which General Obligation Bonds can be issued, provided the Principal of the PIR
Fund thus transferred, together with interest, is repaid in annual installments of not more than thirty
years. Monies in such Permanent Improvement Revolving Fund which have accumulated therein
from any source, in excess of the Principal, may be transferred from such PIR Fund by the City
Council for any City purposes by proper resolution of the Council stating such purposes.
Subdivision 3. The Council may by a majority vote of all of its members submit to the voters
propositions for the issuance of bonds for any public purpose not prohibited by law, and no such
bonds so voted on shall be issued except pursuant to a favorable vote of a maj ority of those voters who
0 vote on the proposition of their issuance.
Subdivision 4. The ffital. bonded debt of the City shall ~ not exceed sl:loh peroeRt as the legislamre
may determiRe for cities of the same dass as HopkiRS, of the last assessed ya:luation of the taxable
property therein, but in oomputing the total bonded debt, oertifioates of iRdebtedness or bonds issued
before or after the adoption of this Charter shall Rot be inoluded or oOlHlted if (1) held in a sinking
food maintained by suoR City; Elr (2) issl:led f-or any public convenience Elr seryioe from which a
re'leRl:le to the City is to be derived; or (3) issued to pay for any improvement the oost of whieh has
been or is to be assessed against the benefited property; or (1) issl:led f-or the ereatioR or maintenanoe
of a Permanent Improvement Reyolving Fund; or (5) for the purpose of antioipating the oollection of
general taxes for the year iR whioh issued the limitations imposed by State Law.
Section 7.15. FORM AND REPAYMENT OF BONDS. All bonds issued by of the City shall be ffi
regl:llar FH:HI1bered series. In FlO oase shall bonds be issued to fUR for more than 20 years afld all bORds
shall mature serially as provided by pursuant to Minnesota Statutes, Chapter 475 and other
applicable provisions of State Law. The purposes for '.vhioh bonds are authorized shall be set f-orth
in the ordimmoe or resolution al:lthorizing them, and the prooeeds from suoh bonds shall not be
diverted to any other pl:lfPose.
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==475.38
475.38 Superseded
0 ==475.39
475.39 Repealed, 1949 c 682 s 26
==475.40
475.40 Repealed, 1949 c 682 s 26
==475.41
475.41 Renumbered 475.68
==475.42
475.42 Repealed, 1949 c 682 s 26
==475.43
475.43 Repealed, 1949 c 682 s 26
==475.51
475.51 Definitions.
Subdivision 1. Terms. For the purposes of this
chapter, the terms defined in this section shall have the
meanings given them.
Subd. 2. Municipali ty. "Municipality" means a city
of any class, county, town, or school district.
Subd. 3. Obligation. "Obligation" means any promise
0 to pay a stated amount of money at a fixed future date or upon
demand of the obligee, regardless of the source of funds to be
used for its payment, made for the purpose of incurring debt,
including the purchase of property through an installment
purchase contract or any other deferred payment agreement, for
which funds are not appropriated in the current year's budget.
Subd. 4. Net debt. "Net debt" means the amount
remaining after deducting from its gross debt the amount of
current revenues which are applicable within the current fiscal
year to the payment of any debt and the aggregate of the
principal of the following:
(1) Obligations issued for improvements which are payable
wholly or partly from the proceeds of special assessments levied
upon property specially benefited thereby, including those which
are general obligations of the municipality issuing them, if the
municipality is entitled to reimbursement in whole or in part
from the proceeds of the special assessments.
(2) Warrants or orders having no definite or fixed maturity.
(3) Obligations payable wholly from the income from revenue
producing conveniences.
(4) Obligations issued to create or maintain a permanent
improvement revolving fund.
0 (5) Obligations issued for the acquisition, and betterment
of public waterworks systems, and public lighting, heating or
power systems, and of any combination thereof or for any other
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public convenience from which a revenue is or may be derived.
0 (6) Debt service loans and capital loans made to a school
district under the provisions of sections 126C.68 and 126C.69.
(7) Amount of all money and the face value of all
securities held as a debt service fund for the extinguishment of
obligations other than those deductible.under this subdivision.
(8) Obligations to repay loans made under section 216C.37.
(9) Obligations to repay loans made from money received
from litigation or settlement of alleged violations of federal
petroleum pricing regulations.
(10) Obligations issued to pay pension fund liabilities
under section 475.52, subdivision 6, or any charter authority.
(11) All other obligations which under the provisions of
law authorizing their issuance are not to be included in
computing the net debt of the municipality.
Subd. 5. Net tax capacity. "Net tax capacity" means
the latest valuation for purposes of taxation, as finally
equalized, of all property taxable within the municipality.
Subd. 6. Debt service fund. "Debt service fund"
means any money and investments in the treasury of a
municipality appropriated to pay the principal, interest, or
0 premiums for the redemption of any of its obligations. "Sinking
fund" means debt service fund. A separate balance sheet need
not be maintained for any debt service fund, and the fund need
not be segregated from other funds of the municipality in a
separate bank deposit account or in a separate investment fund
or account, unless so provided in a resolution or other
instrument securing obligations payable from the debt service
fund; but a separate bookkeeping account or accounts shall be
maintained in the official financial records of the municipality
reflecting all receipts and disbursements of money and
investments of principal and income appropriated for the
purposes of each debt service fund.
Subd. 7. Acquisition. "Acquisition" includes
purchase, condemnation, construction, and acquisition of
necessary land, easements, buildings, structures, machinery or
equipment.
Subd. 8. Betterment. "Betterment" includes
reconstruction, extension, improvement, repair, remodeling,
lighting, equipping, and furnishing.
Subd. 9. Governing body. "Governing body" means the
board, council, commission, or other body of the municipality
charged with the general control of its financial affairs;
provided, that where any charter or law confers bond issuing
power on a particular board or body of a municipality, such
0 board or body is the governing body under the provisions of
sections 475.51 to 475.74.
Subd. 10. General obligations. "General obligations"
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means any obligations which pledge the full faith and credit of
the municipality to their payment.
0 Subd. 11. Reporting dealer to the Federal Reserve Bank
of New York. "Reporting dealer to the Federal Reserve Bank of
New York" means a securities broker-dealer licensed pursuant to
chapter 80A, or an affiliate thereof, which makes primary
markets in United States government securities and reports daily
to the federal reserve bank of New York its position with
respect to such securities held by it and amounts borrowed
thereon.
Subd. 12. Reverse repurchase agreement. "Reverse
repurchase agreement" means an obligation incurred by a
municipality to repurchase at a fixed future date and price a
security sold by it to a financial institution on the date of
the agreement, or another security identical as to the issuer,
source of payment, principal amount, interest rate, maturity,
and redemption provisions. The principal amount of the
obligation is the sale price of the security, excluding any
accrued interest thereon paid to the municipality. The interest
payable by the municipality on the obligation is the difference
between the sale price and the repurchase price of the security,
excluding any accrued interest thereon received by the financial
institution.
Subd. 13. Other governmental unit. "Other
governmental unit" means any public corporation, authority,
governmental unit, or other political subdivision of the state
0 of Minnesota that is not a municipality.
Subd. 14. Bond reinvestment program. "Bond
reinvestment program" means a program under which a
municipality, either directly or through an agent employed for
the purpose, offers and sells its obligations to the holders of
other obligations of the municipality. These offers and sales
are directed at the reinvestment in new obligations of funds
derived from maturing principal and interest and may also
include offers and sales of additional newly issued obligations
in addition to the reinvestment of principal and interest paid
or to be paid on outstanding obligations and provision for the
temporary investment of funds received for the purchase of new
obligations in tax-exempt securities pending the issuance of the
new obligations.
HIST: (1936) RL s 778; 1943 c 656 s 30 subd 3; 1947 c 296 s 2;
1949 c 682 s 1; 1951 c 422 s 1; 1961 c 752 s 8; 1971 c 903 s 1;
1973 c 123 art 5 s 7; 1974 c 380 s 1; 1976 c 324 s 1,2,26; 1977
c 259 s 1; 1978 c 674 s 41; 1987 c 289 s 4; 1987 c 312 art 1 s
10; 1987 c 344 s 17; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s
20 ; 1989 c 355 s 15,16; 1990 c 562 art 11 s 6; 1995 c 256 s 24;
1996 c 399 art 2 s 11; 1997 c 7 art 1 s 158; 1998 c 397 art 11 s
3
==475.52
475.52 Bond issues; purposes.
0 Subdivision 1. Statutory cities. Any statutory city
may issue bonds or other obligations for the acquisition or
betterment of public buildings, means of garbage disposal,
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hospitals, nursing homes, homes for the aged, schools,
libraries, museums, art galleries, parks, playgrounds, stadia,
0 sewers, sewage disposal plants, subways, streets, sidewalks,
warning systems; for any utility or other public convenience
from which a revenue is or may be derived; for a permanent
improvement revolving fund; for changing, controlling or
bridging streams and other waterways; for the acquisition and
betterment of bridges and roads within two miles of the
corporate limits; and for acquisition of equipment for snow
removal, street construction and maintenance, or fire fighting.
Without limitation by the foregoing the city may issue bonds to
provide money for any authorized corporate purpose except
current expenses.
Subd. 2. Home rule charter cities. Any city
governed by a home rule charter may issue bonds for any purpose
enumerated in subdivision 1 unless forbidden by its charter,
except that any such city may issue bonds for the acquisition of
ambulances and related equipment notwithstanding the provisions
of its charter; and for other purposes as authorized by its
charter.
Subd. 3. Counties. Any county may issue bonds for
the acquisition or betterment of courthouses, county
administrative buildings, health or social service facilities,
correctional facilities, law enforcement centers, jails,
morgues, libraries, parks, and hospitals, for roads and bridges
within the county or bordering thereon and for road equipment
and machinery and for ambulances and related equipment, and for
0 capital equipment for the administration and conduct of
elections providing the equipment is uniform countywide, except
that the power of counties to issue bonds in connection with a
library shall not exist in Hennepin county.
Subd. 4. Towns. Any town may issue bonds for the
acquisition and betterment of town halls, town roads and
bridges, nursing homes and homes for the aged, and for
acquisition of equipment for snow removal, road construction or
maintenance, and fire fighting and for the acquisition and
betterment of any buildings to house and maintain town equipment.
Subd. 5. School districts. For capital improvements
any school district may issue bonds for the acquisition or
betterment of school facilities, including gymnasiums, athletic
fields, stadia, teacherages, school garages, school buses, and
all other facilities for administration, academic instruction,
and physical and vocational education.
Subd. 6. Certain purposes. Any municipality may
issue bonds for paying judgments against it; for refunding
outstanding bonds; for funding floating indebtedness; or for
funding all or part of the municipality's current and future
unfunded liability for a pension or retirement fund or plan
referred to in section 356.20, subdivision 2, as those
liabilities are most recently computed pursuant to sections
356.215 and 356.216. The board of trustees or directors of a
0 pension fund or relief association referred to in section 69.77
or chapter 422A must consent and must be a party to any contract
made under this section with respect to the fund held by it for
the benefit of and in trust for its members.
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==475.53
475.53 Limit on net debt.
0 Subdivision 1. Generally. Except as otherwise
provided in sections 475.51 to 475.74, no municipality, except a
school district or a city of the first class, shall incur or be
subject to a net debt in excess of two percent of the market
value of taxable property in the municipality.
Subd. 2. Repealed, lSp1981 c 4 art 1 s 193
Subd. 3. Cities first class. Unless its charter
permits a greater net debt a city of the first class may not
incur a net debt in excess of two percent of the market value of
all taxable property therein. If the charter of the city
permits a net debt of the city in excess of two percent of its
valuation, it may not incur a net debt in excess of 3-2/3
percent of the market value of the taxable property therein.
The county auditor, at the time of preparing the tax list
of the city, shall compile a statement setting forth the total
net tax capacity and the total market value of each class of
taxable property in such city for such year.
Subd. 4. School districts. Except as otherwise
provided by law, no school district shall be subject to a net
debt in excess of ten percent of the actual market value of all
taxable property situated within its corporate limits, as
computed in accordance with this subdivision. The county
auditor of each county containing taxable real or personal
0 property situated within any school district shall certify to
the district upon request the market value of all such
property. Whenever the commissioner of revenue, in accordance
with section 127A.48, subdivisions 1 to 6, has determined that
the net tax capacity of any district furnished by county
auditors is not based upon the market value of taxable property
in the district, the commissioner of revenue shall certify to
the district upon request the ratio most recently ascertained to
exist between such value and the actual market value of property
within the district. The actual market value of property within
a district, on which its debt limit under this subdivision is
based, is (a) the value certified by the county auditors, or (b)
this value divided by the ratio certified by the commissioner of
revenue, whichever results in a higher value.
Subd. 5. Certain independent school districts. No
independent school district located wholly or partly within a
city of the first class shall issue obligations with a term of
more than two years, whenever the aggregate of the outstanding
obligations of the district equals or exceeds 0.7 percent of the
market value of the taxable property within the school district.
Subd. 6. Portion of expenditure for technical college. i
Only that proportion of the principal amount of obligations J
issued by a school district or districts for the acquisition or
betterment of a technical college equal to the percentage of the
total principal amount of the obligations which is or would be
0 currently borne by the district, shall be included in
calculating the district's net debt. The commissioner of
children, families, and learning shall certify to each district
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upon request the current percentage of the total principal
amount of the obligations which is or would be borne by the
,0 district, which certification shall be conclusive in favor of
the holders of the obligations as against the district.
Subd. 7. Adjustment of debt limits. If the amount of
debt a municipality may incur is limited by special law or city
charter to a stated p~rcentage or proportion of assessed value,
the limit must be calculated as a percentage or proportion of
tax capacity. The percentage or proportion provided in the
special law or charter provision must be multiplied by 8.2 to
determine the applicable percentage or proportion of gross tax
capacity and must be multiplied by 10:2 to determine the
applicable percentage or proportion of net tax capacity.
Subd. 8. Debt limit reservation. A municipality may,
by ordinance, reserve a portion of its unencumbered debt limit
for the purpose of providing proof of financial responsibility
for the contingency action portion of the response costs at a
solid waste disposal facility, subject to the rules adopted by
the pollution control agency under section 116.07, subdivision
4h. Reservation of a portion of a municipality's debt limit
under this subdivision may not be revoked by the municipality
until the expiration of the required time period for maintaining
proof of financial responsibility or the municipality adopts and
adequately funds, as of the date of implementation, an alternate
method of financial responsibility under the rules of the
agency, whichever occurs earlier. If the municipality reserves
its debt limit under this subdivision, the debt limit is
0 computed as if the municipality had issued obligations, subject
to the limit, in the amount of the reservation specified in the
ordinance. Notwithstanding the amount of market value in the
municipality, the reserved amount of the limit is available for
issuance of bonds to pay the municipality's response costs.
HIST: (1938-4) 1927 c 131 s 2; 1935 c 256; 1937 c 285 s 1;
1943 c 480 s 1; 1945 c 549 s 1; 1947 c 296 s 5; 1949 c 682 s 3;
1955 c 304 s 1; 1955 c 356 s 1; 1955 c 656 s 1; 1957 c 879 s 1;
1961 c 560 s 37; 1965 c 875 s 11j 1969 c 6 s 46; 1969 c 1056 s
10j 1971 c 480 s 1; 1973 c 582 s 3; 1974 c 380 s 2-6; 1979 c 303
art 7 s 14; 1981 c 358 art 1 s 48j 1984 c 593 s 42-44; 1987 c
258 s 12; 1987 c 268 art 7 s 54; 1988 c 719 art 5 s 65,84; 1989
c 1 s 7-9; 1989 c 246 s 2j 1989 c 277 art 2 s 65; 1989 c 329 art
15 s 20; 1990 c 604 art 10 s 21; 1994 c 614 s 16; lSp1995 c 3
art 16 s 13; 1997 c 7 art 1 s 159j 1998 c 397 art 11 s 3
==475.533
475.533 Repealed, 1969 c 1056 s 11
==475.54
475.54 Maturities; redemption.
Subdivision 1. In installments; exception; annual
limit. Except as provided in subdivision 3, 5a, 15, or 17, or
as expressly authorized in another law, all obligations of each
issue shall mature or be subject to mandatory sinking fund
redemption in installments, the first not later than three years
0 and the last not later than 30 years from the date of the issue;
or 40 years or the useful life of the asset, whichever is less,
for municipal water and wastewater treatment systems and
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essential community facilities financed or guaranteed by the
United States Department of Agriculture. No amount of principal
0 of the issue payable in any calendar year shall exceed five
times the amount of the smallest amount payable in any preceding
calendar year ending three years or more after the issue date.
Subd. 2. Schedule; refunding. A serial maturity
schedule conforming to subdivision 1 may be established for each
new issue of obligations of a municipality, or the governing
body may in its discretion adjust such schedule so that the
combined maturities of the new issue and any other designated
issue or issues will conform to subdivision 1, provided that all
such issues are general obligations or all are payable from a
common fund. Notwithstanding the provisions of any other
general or special law, any school district having an
outstanding state loan or loans, if it issues and sells bonds on
the public market for any purpose other than refunding such
loans, or refunding outstanding bonds as provided in this
subdivision shall adjust the schedule of the maturities thereof
so that the total amount of principal and interest to become due
on these bonds and on all other bonds of the school district,
during each of the 30 fiscal or calendar years next following,
will be as nearly equal as practicable, provided that the annual
amounts of maturing principal may be fixed at multiples of
$5,000. A school district which has an outstanding state loan
or loans may refund outstanding bonds, provided that the school
loan committee established in section 126C.67 approves such
refunding. The committee shall approve refunding outstanding
bonds only if such refunding results in lower annual debt
0 service payments than the district made prior to the refunding.
Subd. 3. Maturities if paid from special fund.
Obligations payable solely from a special fund, for payment of
which the full faith and credit of the issuer is not pledged,
may mature at any time or times within 30 years from date of
, . (40 years or the useful life of the asset, whichever is
~ssue,
less, if for municipal water and wastewater treatment systems
and essential community facilities financed or guaranteed by the
United States Department of Agriculture) if the receipts pledged
to the fund are estimated by the governing body to be sufficient
and are irrevocably appropriated first to pay annual or
semiannual interest on all obligations payable from the fund and
to provide such reserve as may be agreed upon for the security
of interest payments, and then to retire a specified portion of
the principal in each year according to a schedule of redemption
and prepayment which conforms to the requirements for the
maturity schedule of other obligations in subdivision 1.
Subd. 4. Redemption. Any obligation may be issued
reserving the right of redemption and payment thereof prior to
maturity, at par and accrued interest or at such premium and at
such time or times as shall be determined by the governing
body. Notice of the call of any prepayable obligation shall be
published in a daily or weekly periodical published in a
Minnesota city of the first class, or its metropolitan area,
which circulates throughout the state and furnishes financial
0 news as a part of its service; provided that published notice of
the call need not be given if the obligation is in registered
form and notice has been mailed to the registered holder of the
obligation. When any such obligation has been validly called
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