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279154A P!:JK£ - FI�IANCE RK � � [����� .�CANARV - DEPARTMENT GITY OF SAINT PAUL COIlI1C11 ��� �± BLUE- - MAVOR File NO. Ordin�nce Ordinance N0. � Presented By -�? Referred To Committee: Date Out of Committee By Date An Administrative Ordinance estab- lishing a Special Assessment Revolving Fund. THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN: Section 1. Fund Established. There is hereby established a Special Assessment Revolving Fund (hereinafter called "Revolving Fund") to be administered by the Department of Finance and Manageinent Services in accordance with the provisions of this chapter and generally accepted accounting princi- ples. The director of the department shall provide the Council with annual statements of the Revolving Fund, which statements shall be presented at the same time as is the mayor's proposed budgets. Section 2 . Purpose of Fund. The Revolving Fund shall be used to pay the expenses of that portion of improvements which consti- tute local improvements within the meaning of Minnesota Constitution, Article X, Section l, and for which special assessments are to be levied pursuant to the City Charter or State law, and shall be used for no other purpose except that the Revolving Fund may be used to pay the principal of and interest on obligations issued to finance the Revolving Fund. The local improvements to be financed by the Revolving Fund and the amount of advances shall be designated by resolution of the Council . COUIVCILME[V Yeas Nays Request d by Department of: � � � � ��� Fletcher �evine In Favor — Masanz �� Nicosia Against BY -� `�"" ' ' Scheibel Tedesco Wilson Form Approve by C ty Atto ey Adopted by Council: Date Certified Passed by Council Secretary BY By � Approved by Mayor: Date Appro e o for Su 's nd" Council BY BK. PUBLISHED 0 C T 2 1gg2 M�H17E - CITV CLERK COUI1C11 � "J1�� �} � B`NU�ARYy EPAOR�MENT GITY OF SAINT PAUL File NO. � � � � • r in�nce Ordinance N 0. S Presented By Referred To Committee: Date Out of Committee By Date Section 3. Interest. Each local improvement shall pay interest to the Revolving Fund on the advances at the rate of interest set by the Director of Finance. Section 4 . Repayment to Fund. The City shall credit to the Re- volving Fund when received all payments of special assessments levied for projects, the expenses of which are paid from the Revolving Fund. The amounts credited to the Revolving Fund shall include any interest pay- ments received by the City in connection with the pay- ment of such special assessments. Section 5. Funding Source. The sources of funds for the Revolving Fun s a include, but not be limited to, annual budget appropriations, obligations issued for the purpose of creating or preserving the Revolving Fund, special assess- ments, interest on advances and investment earnings on Revolving Fund balances. Section 6 . Effective Date. This ordinance shall take effect and be in force thirty days from and after its passage, approval and publication. -2- COU[�1CILMEN Requested by Department of: � Yeas Nays ,/ Fletcher � 7 Levine In Favor Masanz Nicosia �_ Against BY Scheibel -�edeS�d` Wilson 1982 Adopted by Council: Date SEP 2 1 For Approved Attorney Certified P e b Counc� Se tar BY � By A by Mayor: D e 2 3 198Z Appr y Mayor for Sub ' si n tb Council g B P H � 1 `� F'�.�-. �. LITV 01 CITY OF SAINT PAUL �� ����I� � i ;� '; OFFICE OF THE MAYOR a uuum ". � {" t� ; � A ���� 347 CITY HALL SAINT PAUL, MINNESOTA 55102 GEORGE LATIMER (612) 298-4323 MAYOR ,August 23 , .1982 Cauncilman James Scheibel Seventh k'loor City Hall Saint Paul , Minnesota 55102 Dear Councilman Scheibel : Attached is an administrative ordinance establishing a special assessment revolving fund. This step is being taken because of the potential need to borrow money to solve the casfi flow problems in our assessment funds . Historically, these assessment funds , including street maintenance , tree maintenance , and Town 5quare maintenance , have operated with cash deficits . These deficits are caused by a number of factors , including th.e lack of sufficient start-up cash and the fact that the payments to the funds for the provision of services do not take place until eighteen months after the service is provided. Lengthy meetings have been held with our accountants , City Attorney and bond counsel (Briggs and Morgan) , regarding solving the cash flow problems . This ordinance is the first step to be taken. This step simply creates a special assessment revolving fund, which is consistent with the City Charter. A report is being prepared for presentation to the City Council . This report will prapose permanent solutions to the chronic cash flow problems in the assessment funds . The report will be ready within the next month. It is necessary to adopt this ordinance now, because the greatest cash deficit occurs during the month of November and the revolving fund needs to be established prior to then. Peter Hames , Director of Finance and Management Services , is ready to make a presentation in support of the proposed ordinance . Xour approval of this ordinance is res�ectfully requested. incer • O LATIMER May cc : Council Members Jerome Segal Greg Blees Gerald Swanson (Briggs & Morgan) Jim Hart Bob Trudeau A1 Olson �� Gary Norstzem �.-- l �r � .� lst �� ' � 2nd — — � — 3rd �-J� -'_ f� —(l� Adopted �^ �j � — �� {i__ Yeas Nays FLETCHER � LEVINE � ` c��� / �` MASANZ � , �. NICOSIA ������ A � SCHEIBEL C WILSON � MR. PRESIDENT TEDESCO t . _ % �