87-08 WMITE - CITV CIERK
PINK - FINANCE G I TY OF SA I NT PA U L Council
CANARV - DEPARTMENT h�/
BLUE - MAVOR File NO. �/
Council Resol ion � '�;�°
� . ; ! �3
Presente y -
Referred To _��v'/S�-���1� Committee: Date �� '��3'a h
Out of Committee By Date
WHEREAS, the Minnesota Bonding Allocation Act was enacted by the 1986 state legis-
lature to establish a procedure to allocate bonding issuance authority until June
30, 1987, and
WHEREAS, the federal Tax Reform Act of 1986 establishes a "unified volume cap"
for almost all tax exempt private activity bonds, and,
WHEREAS, the "unified volume cap" for the State of Minnesota reduces our state's
annual volume cap from $728 million to $314 million in 1987, which is reduced
to $210 million in 1988, and,
WHEREAS, the Minnesota Bonding Allocation Act of 1986 provided a competitive pool
for non-entitlement cities for bonding on projects in the following order of pri-
ority: Manufacturing, Pollution Control or Waste Management and Commercial Re-
development and,
WHEREAS, the new bonding allocation system to be established by the Minnesota
State Legislature should recognize the very limited nature of the bonding tool,
THEREFORE, BE IT RESOLVED THAT oYie°half of the bonding pool should be allocated
for housing and redevelopment, and oi�e-half for manufacturing; the housing pool
should be allocated 1/3 to cities of the first class, 1/3 to the state, and the
remaining 1/3 to a pool for other cities; and that safeguards should be built
into the process to protect the bonding resource, and reserve it for only the
most valuable projects.
COUNCILME(V Requested by Department of:
Yeas p�eW Nays
Nicosia _'__! /(
Rettman f-- in Favor
Scheibel
sor,�e� �__ Against BY
Tedesco
W'��°� JAN - 6 1987
Form Approved by City Attorney
Adopted by Council: Date
Certified Y•s Council Secret BY
Bs�
A►ppro Ylavor: Date _ AN �' 7 +�� Appro y Mayor for Submis ' n � 1
BY - - — 8
�ED JAN 17 1987