87-1634 WHITE - CiTV CIERK
PINK - FINANCE CO�l�1C1I � �
CANARV -OEPARTMENT GITY OF SAINT PALTL � �����L�
BI.UE - MAVOR File �O.
�
Co ncil Resolution
Presented By
,�� �j , -o t
Referred To Committee: -- Date
Out of Committee By Date
WHEREAS, Saint Paul' s authority to issue and sell Capital
Improvement Bonds expires at the e d of 1988; and
WHEREAS, in Laws 1983, Chapter 302 , the Minnesota Legislature
granted Saint Paul authority to is ue Capital Improvement Bonds
for a five year period; and
WEiEREAS, continued CIB issuance a thority is necessary to the
City' � Capital Improvement Progra ; and
WHEREAS, Saint Paul' s urban renew 1 bond authority maximum will
be reached in either 1989 or 1990 ; and
WHEREAS, the City could avoid the costs associated with selling
separate bond issues for economic development activities and
capital improvement activities by using a specified amount of
authorized capital improvement bo ding authority for economic
development activities;
THEREFORE, BE IT RESOLVED, that t e City Council of the City
of Saint Paul support legislation renewing the City' s authority
to issue and sell Capital Improve ent Bonds; and
BE IT FURTHER RESOLVED, that the ity Council of the City of
Saint Paul support legislation th t would authorize the City
to use up to a specified annual a ount of its Capital Improvement
Bonding authority for economic de elopment activities.
COUIVCILMEN
Yeas .��. Nays Requested by Department of:
Nicosia _�� in Favor
Rettrt[�an
Scheib�l �__ Against BY
�
Weida
WilsOn �QV � � �87 Form Ap ro y City Att y
Adopted by Council: Date
Certified Passed y Council Secret BY
By �
A►pproved b or: Date �V � E � Approve by Mayo f u ion to Council
�
By 1 1987
Pl98ii�� �'�u V �
_ � �G F�/6�'� .
1V° 011041 �
MAYQR�$ p�'�'�C�^IG�t DEPARTMENT � - - - - - -
DfiAIQE T,YNCH CONTACT NAME ,
298�4163 PHONE � ..
Noy�ember 5., 19 8 7 DATE
�
ASSIGN NUMBER FOR xOUTING ORDER: (See reverse si e.)
_ Department Director 1 Maqor (or Assistant)
_ Finance and �Ma�agement Services Director � City Clerk
Budget Director � Cou�,r- a ,� e �,
? City Attomey _ �'����� ��'�l���
TOTAL NiJKBER OF SIGNATIIRE PAC�ES: (Clip all ocations for si,gnature.)
W B V 0 C ? (Purpose/Rationale)
i
�h� Cit��s authA9��;�x tp ���ue �aQ�.�a�, xmpX �e�te.�;t �3pAd� ex��.��5 a� t,h.e
end, o� 1988. �fi.�.� �.ec�i.��,atipr�, �`.� �����v'ed, hr}`,��, exteris� �nd. ���xe,�se
our author•�,ty� .th�ough 1��3, �•n addita;c?�► , �t��.� a�,�,�� u� �kQ �Qnd �:� .
one issue, urban :�en�¢a1 k�ond�, u� �Q $6�Q,QQa �.�, 199�. . U�T�� �ex����,
author�,ty maxiinum wi11 �e reacfied in 1489/ 94�, �r�d. �& �x�e.nfi��.x a�flund
$500,Q00 annually. ��e. ���„� ���� . �,h.� �:o �e Iaut nR� fiY�� se�,�..�� �� 1q87�
COST B N U 0 L IMP C
Cur�;e�t� �,a�Ht ��,�.t?�t� u� tc� .�s��ate ��� bc�nd� u . tQ $12,.QQ0 f O.OQ �� 1488;�_ '���
a,dd�.�kiQn.�1 ��.V'�' Y'��� �u�ra";ty w3�.�, a�-�Aw� � t(� ���ue I�z�d� �:�. th;e. �A�,7.QW�.��
manner: �
1984-$13�3 �i�.zion 1992 $15.7 ��,�.�,�;�an
199Q�$I4.0 m�;�,�,�;o#� i993 $16.6 �#��,�.iQn
1�91�$14 .8 �i.�,�ion ,
f G S C VI R CHARG T
(Mayor's signature not required if under $10,000.
Total Amount of Transsction: Activitq Number:
Funding Source: .
ATTACHMENTS; (List and number all attachments.) ,
ADMINISTRATIVE P&OCEDURES '
_Yes _iQo Rules, Regulations, Procedures, r Budget Amendmant required?
_Yes _No If yes, are they or timetable at ached?
DEPARTMENT REVIEW. CITY ATTORNEYs�tEVZEW
_Yes _No Council resolution required? Resoiution �equired? _Yes _No
_Yes _No Insurance required? . Insurance s�,fficient? _Yes No
Yes No Insurance attached4 � �
.~� . ..�( s'.l.7.
J
BRIEFING PAPER•
CAPITAL IMPROVEMENT BOND A THORITY REAUTHORIZATION
BACKGROUND
In Laws of Minnesota 1983 , Chapte 302, the Minnesota
Legislature granted the City of S int Paul authority to issue
and sell general obligation bonds for capital improvement
projects for the years 1983 throu h 1988. The Legislature set
specific limits on the aggregate rinciple amount or bonds to
be authorized in each year and re uired that before the
proceeds of any bond issue could e expended, the projects be
reviewed and receive a priority r ting from an 18-member
capital improvements committee re resenting each of the
state's senatorial district locat d within or partly within
the city.
The five-year bonding authority g anted under Laws 1983,
Chapter 302, has contributed sign ficantly to the ability of
the City to conduct long-range pl nning for its capital
improvements program and will exp re the end of 1988. Current
law allows us to issue CIB bonds p to $12 million in 1988.
The maximum extension will allow s to issue bonds up to $16. 6
million by 1993.
In addition, Saint Paul 's urban r newal bond authority maximum
will be reached in 1989 or 1990. Both the need to request an
increase in urban renewal bonding authority and the costs
• associated with selling a separat bond issue for economic
development activities could be a oided if Saint Paul could
use a specified annual amount of its capital improvement
bonding authority for economic dev lopment activities. The
current amount of urban renewal bo ds issued is $500, 000
annually. The recommended amount y 1993 is up to $690, 000.
This is included in the total CIB 'ssuance authority.
STATUS
H.F. 289/S.F. 510. H.F. 289 passe the House. S.F. 510 (now
H.F.289) is in the Senate Tax Comm ttee.
THE SAINT PAUL POSITION
The City of Saint Paul supports pa sage of City-initiated
legislation to renew the City's au hority to issue and sell
capital bonds for the period 1989 hrough 1993, which includes
authority to issue a specified ann al amount of its capital
improvement bonding authority for conomic development
activities.
Al'L87 FL![D"1 LLVbKVr'�7P'1P+iV�l' �i[l+Vl.7VlC J `7D nrv�v�-i�
i
� . �-� �-�-1 �'3'� 19
4
State f Minnesota
HOUSE OF PRESENTATIVES .
� sEVEx�rY-F�-rH N
SE33ION • �• 1 , �� ���
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�_
Introduced by Kelly,Vellenga, renstein,Trimble and Norton.
Read First Time Feb. 5, 198?a d Referred to the Committee on
Local and Urban Affairs.
, Committee Recommendation a d Adoption of Report:
To Pass as Amended Feb. , 1987.
Read Second Time Feb.23, 198 .
1 A bil far an act
2 relating to the city of St. Paul; setting the maximum
3 amounts and other condi ions for the issuance of
, 4 capital improvement bon s; amending Laws 1971, chapter
5 773, section 1, subdivi ion 2, as amended; and section
6 2, as amended'; repealin Laws 1963, chapter 881, as
. 7 amended.
8
9 HE IT ENACTED HY THE LEGISLA URE OF THE STATE OF MINNESOTA:
10 Section 1. Laws 1971, hapter 773, section 1, subdivision
11 2, as amended by Laws 1974, hapter 351, section 5, Laws 1976,
12 chapter 234, section 7, Laws 1978, chapter 788, section 1, Laws
13 1981, chapter 369, section , and Laws 1983, chapter 302,
14 section 1, is amended to re d:
15 Subd. 2. For each of he years �98�T-�984z-�995T-�986?
C 16 �98�T-end-�988 throu h 1993 inclusive, the city of St. Paul is
17 authorized to issue bonds i the aggregate principal amount of
� ,; 18 $8,000,000 for each year; o in an amount equal to one-fourth of
19 one percent of the assessor estimated. market value of taxable
20 property in St. Paul, which ver is greater, provided that no
21 more than $8,000,000 of bon s is authorized tc be issued in any
22 year, unless St. Paul's l0 1 general obligation debt. as defined
23 in this section is less th n six percent of market value
24 calculated as of December 1 of the preceding year; but at no
25 time shall the aggregate p incipal amount of bonds authorized
' 26 exceed $9TA99TA99-in-�983T ti49TS88TAA9-ire-�984T-��AT�eATBAB-ire
. 1
HF289 FIRST ENGROSSMENT [REVISOR ] SS. HF0289-1E r
1 �ggST-g�gT�g8y999-in-�986T $11,300,000 in 1987, and $12,000,000 �
2 in 1988, $13,300,000 in 1989, $14,000,000 in 1990, $14,800,000
3 in 1991, $15,700,000 in 1992, and $16,600,000 in 1993.
4 Sec. 2. Laws 1971, chapter 773, section 2, as amended by .
5 Laws 1978, chapter 788, section 2, and Laws 1983, chapter 302,
6 section 2, is amended to read:
7 Sec. 2. The proceeds • of all bonds issued pursuant to
8 section 1 hereof shall be used exclusively for the acquisition,
9 construc�tion, and repair of capital improvements and, commencing
10 in the year 1989 and notwithstanding any provision in Laws 1978,
11 chapter 788, section 5, as amended, for redevelopment project
12 activities as defined in Minnesota Statutes, section 462.421,
13 subdivision 13 in accordance with Minnesota Statutes, section
14 462.581, clause (6) . The amount of Droceeds of bonds authorized
15 b section 1 used for redevelopment project activities shall not
� 16 exceed $530,000 in 1988, $560,000 in 19�89, $590,000 in 1990,
17 $620,000 in 1991, $655,000 in 1992, and $690,000 in 1993.
18 None of the proceeds of any bonds so issued shall be
19 expended except upon projects which have been reviewed, and have
20 received a priority rating, from a capital improvements
21 committee consisting of 18 members, of whom a majority shall not
22 hold any paid office or position under the city of St. Paul.
23 The members shall be appointed by the mayor, with at least four
24 members from each Minnesota senate district located entirely
25 within the city and at least two members from each senate
26 district located partly within the city. Prior to making an
27 appointment to a vacancy on the capital improvement budget
28 committee, the mayor shall consult the legislators of the senate
29 district in which the vacancy occurs. The priorities and
30 recommendations of the committee shall be purely advisory, and
31 no buyer of any bonds shall be required to see to the
32 application of the proceeds.
33 Sec. 3. [REPEALER. ]
34 Laws 1963, chapter 881, as amended by Laws 1967, chapter
35 499, Laws 1969, chapter 923, Laws 1971, chapter 321, Laws 1973,
36 chapter 395, and Laws 1975, chapter 260, is repealed.
� 2
. HF289 FIRST ENGROSSMENT [REVISOR ] SS HF0289-1E
, AL . � � J ( �1�.
� 1 Sec. 4. [LOCAL APPROV .
2 This act is effective the da after cocn liance with
3 Minnesota Statutes, section 64 .021, subdivision 3, b the
4 overnin bod of the cit of t. Paul.
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