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270479 WHITE - CiTV GLERK C011RC1I F' � ��` � PINK•,.) - FINANCE G I TY OF SA I NT 1 AU L � �' CANA.�Y - DEPARTMENT BL41L' - MAVOR File �Q. ♦ /� ' � , C ncil Resolution Presented B "� - Y Referred To Committee: Date Out of Committee By Date WHEREAS, the Ma.yor and City Council have placed high priority on controlling Saint Paul' s general obligation debt in a responsible matter while providing for the future physical development of the city; and WHEREAS, the Mayor has proposed a strategy for reducing the overall amount of general obligation debt placed on the Sai�t Paul tax base by local governmental units, which could be implemented with the cooperation of Ramsey County, the Independent School District ��625, the Port Authority, and the Civic Center Authority, if the city develops a hold-the-line policy on the issuance of future general obligation bonds; and WHEREAS, the Ma.yor has proposed that the city request permanent CIB authority, with an annual limit of $8,000,000 beginning in 1980 until such time as the local general obligation debt as a percentage of the cit�r' s Estimated Taxable Market Valuation (Minnesota Revenue Department s certified sales ratio applied to the Rat�sey Gounty Assessor s Limited Maxket Value for Saint Paul) i,s less than six percent (6%) ; at which time the annua.l limit of $8,000,000 would be repla�.ed by a formula which provides that the annual bonding authori� would not exceed one-fourth of one percent (� of 1%) of the Estima.ted Tax�ble Market Value; and WHEREAS, the City Council has taken action within the last two years to provide for more responsible city government bys 1. Demonstrating improved fiscal control by holding the line on city expenditures to the point that with the help of increased state aids the city property tax levy high of $35,052,504 in 1975 was significantly lowerec� in the last three years: � COUNCILMEN Yeas Nays Requested by Department of: Butler Hozza • [n Favor Hunt Levine _ __ Against BY — Roedler S ylvester Tedesco Form Approved by City Attorney Adopted by Council: Date — Certified Passed by Council Secretary By- sy Approved by ;Vlayoc Date Approved by Mayor for Submission to Council By BY . , . s(��:'f/y r,i�f� F'; p �. Page 2. 1976 = $28, 846, 166 1977 = $30,957, 803 1978 = $30, 867, 164 2. Demonstrating concern for controlling the debt burden placed on the Saint Paul tax base: A. The City provided the ma.jor impetus in creating the Joint Debt Advisory Committee which provides a mechanism for developing inter-governmental policy communication for debt-related ma.tters. B. The cit y has used constraint when issuing CIB bonds as demonstrated by the fact that only $6,000,000 in bonds were issued in both 1976 and 1977 when authority existed for $6,500,000 for both years C. The city has taken a lead role in emphasizing joint- use projects with other governmental units so that less capital (and operating) monies are spent on financing duplicate facilities. 3. Demonstrating improved capital improvement budgeting. A. The city has implemented the "Unified Capital Improve- ment Program and Budget Process" which budgets all capital monies in one coordinated process which in addition to programming capital expenditures, identi- fies future operating costs and effect on revenues. The appropriations budgeted in this process are based on the sound recommendations and funding priorities of the CIB Committee and its task forces. B. The City Council is providing annual policy direction in using capital funds to finance both the residential and economic development of Saint Paul. The policy statements are based on sound planning goals and are governed by limiting fiscal constraints. 4. Taking decisive action to reorganize the Housing and Redevelop- ment Authority as provided by legislative authority. This action has already produced dollar savings by reducing personnel eosts and will have a significant affect on controlling future bonding and debt; and , r-{' y ,:. ' Jg5 /,� '{1 tl .: .�', � .. .. _� Page 3. WHEREAS, the city can justify the amount of bonding requested based on the identification of needed capital improvements and their corresponding costs ; and WHEREAS, the matters of developing a debt policy and requesting CIB bonding legislation have been submitted for review to the follow- ing committees for the purpose of identifying their concerns to the City Council: 1. Joint Debt Advisory Committee 2. CIB Committee and Task Forces 3. Planning Commission 4. District Councils 5. Ramsey County Legislative Delegation now, therefore, be it RESOLVED, that the City Council of the City of Saint Paul does hereby adopt the following goals for reducing the amount of local general obligation debt placed on the Saint Paul tax base: 1. Reduce by 1985 Saint Paul' s general obligation debt per capita for the local government units from the current $1,005 to $9Q0 or less. 2. Reduce by 1985 Saint Paul' s general obligation debt as a per- centage of estima.ted market value for the local government units from the current 8.5% to 6% or less ; and, be it � WHITE - CITV CLERK COUflCll � /�� � / PINK - FINANCE �7 � ;:/ry; BLI�E�v - MAYORTMENT GITY OF SAINT PAV L File NO. � D�� '� 'S� ' Council Resolution Presented By Referred To Committee: Date Out of Committee By Date Page 4. FURTHER RESOLVED, that the City Council supports the CIB bonding bill and recommends its passage to the Minnesota State Legislature. COUNCILMEN Yeas Nays Requested by Department of: Bte�e� / Hozza � In Favor Hunt Levine 0 __ Against BY �Keed�s� Sylvester Tedesco ,}t�� 3 0 1978 Form Appr ed by City tto ey Adopted by Coun� � Date . Certified,l�as� y Counc Secretaty BY- ` B; �'ES � 1978 Approved by Mayor for Submission to Council Appr ve by �blavoc D �a By BY FUBLiS��v ��� 1 1 197$ � � ' , Rev. 1/20�78 � . ���C� � � . �, - ; �,���•,`�� A bill for an act relating to the city of St. Paul; providing , ior and authori2ing issuance of general obligation bonds for capital improvement � budget purposes; amending Laws 1971, Chapter 773, Section 1, as amended. BE IT E1�IACTED BY `�HE LEGISLATURE OF THE STPiTE OF i�SIi�TtiESOTA: Section 1. Lazvs 1971, Chapter 773, Section 1, as amended by LasJS 1974, Chapter 351, Sectian 5, Subdivision 1 and LazJS �97b, Chapter 234, Section 1, is amended to read: Section 1. Subdivision 1. �T. PAUL, CITY OF; CAPiTAL IrIPROV�i�iTS PROGRA�'�I] Notwithstanding any provision of the charter of the city of St. Paul, the council of said city . shall have power by a resolution adopted by five affirmative ' votes of all its members to authorize the issuance and sale of general obligation boncls of the city in an amount o� �6,500,000 for each calendar year for a four year period commencing with the year 1976, an.d thereafter in aQgregate annual amou.nts not to exceed �8,000,000 or an annual limit to be determined by an "incentive provision formula'� as defined in this section, for the payment of which the full faitli and creclit of the city is irrevocably pledged. Subd. 2. �NCENTIVE PROVISION FOR�tiILiLA] In ortler to account for the continuin� inflation which ciiminishes tlie purchasin� pol�er of boiidin� ichere the annual amount aut�iorized is �ranted at a constant level and in order to limit the � amount of �eneral obli�ation clebt pled�;ed T"� •• �s� 1 � • + • , " - anainst the St. Paul propertv ta� base. at such time zs St._ Pd.t11tS local aeneral obli�ation debt as a percenta�e of St. Paul 's esti�ated marbet value is less than sis percent as_ calculated on December 31 of any veaz-, tiie bondinff for the � followin� year shall be limited to an amount determined bY an incentive provisio� �formula tiYhich shall be one-fourth of one percent of St. Paul ' s estimatecl market value. � Sub�l. j. �T. PAUL'S LOCAL G�NERAL OBLIGATION DEBT] St. Paul ' s local �eneral oblihatioii debt is the ag�re�ate � �eneral obli�ation debt incurrecl by irrevocably pled�ina the full faith and credit of the St. Paul property ta_� base to secure the bonds issued by the city of St. Paul , the Housin� • and Rede��elopment Authorityr of Saint Paui, the Civic Center AuthoritY o� Saint Paul, the Port Authority oP Saint Paul, Independent School District No. 625, and the County of Ramsey ad,justed to inclucle the county-issued �eneral obligation debt as a St. Paul property ta� liability proportionate to the assessed valuation of St. Paul as a percenta�e of the assessed valuation of Ramsey County, and not includin� any refunded bond issues. - � Subd. 4, �T. PAUL'S ESTI1IATED Ti.4RIiET �Tf1Lli�,J St. Patil ' s estimated marbet �ralue shall be determined Uy . cliz�idin� the eountv assessor' s limi-ted marlcet value of St. Paul bv the most ct�rrent salas ratio value certi�ied Uv the Minnesota state revenue department. Sec. 2. This act shall becone effective only after � its approval by a r�a.j ority of the �overnin� bod,y of the citv of Saint Paul and u on compliance z►ith the provisions of �iinnesota Statutes, Section 645.021. 3 �'`N"1 `a��,y 6�',`� �� ��'" . _ _. January 9, 1978 Rose Mix, City Clerk 386 City Hall St. Paul, Minnesota Dear Rose: Please be notified that I have called a special meeting of the City Council for Monday, January 30, 1978, at 7:30 P.M. in the City Council Chambers to hold a public hearing to consider proposed Capital Improvement Bond Legislation. ��'�- . Council President ; We, the undersigned Councilmen, do hereby waive written notice requirements for a special meeting of the C'ty Council on Monday, January 30, 1978, at 7:30 P.M. in the City C uncil Chamb s for reasons stated e. � T; ^ � � � , , _ � :) �, � , � T".�A � / • ♦ � �� ' CI�TY� OF S.2sINT PAUL (...���� OFFICE OF THE CITY COIINCIL i caaa�±uaa �ws�oas. . � . rorae�.�� Janua.ry 10, 1978 DAVID H. HOZZA Councilman �`��`�': '° ,?' � y PUBLIC IiEARL'�G NOTICE The St. Paul City Council will hold a public hearing on the praposed permanent Capital Tmprovement Bonding authority and policies for reducing over- lapping debt in St. Paul. The hearing will be held on: _ Monday, January 30, 1978 7:30 p.m. City Council Chambers (3rd floor, City Hall) All persons with an interest in the CIB program and indebtedness are encouraged to attend. Follow- ing the hearing and approval by the City Council, a bill will be drafted for presentation to the 1978 Legislature. - � . CITY fIALL SEVENTH FLOOR SAINT PAUL, MINNESOTA 55102 bI2f298-464b �J , � , . 1r� � , � , � �� � � �. ' : ' � ' r . � ' � ! � � ,� , ` t � ' . ; � � � ��� � � :, } - , . /. • i ' • .. . .. � � , � . � .. . � 1 . � . . � . . � .. � .. . . . . _ . .. . .. , . . . . . � � , . � . . � . - . . , . . . . . � , : . . � .. , � ' r ' ' � i ' � i r � ' 1, ' _ ' ! , , �ii�r','j,� 3�� ' • . , , : ,, , - ��� /, . , . , �Daaar �s , . , . . - , 1�+� iM► �la,� � #���Ca��. ri�, iro�l a �ys �q�t +aa J�'��s �, > : ���0 P.l�. �r � �1pr �a �.�,� ,�e�i �� 3�irr��� - ' '��',M' �'�► �'��-. . � , - ; . ! . , ; 4!,#i7 C�slt; . � ` , r , - ; 1mt� iM. �ie�� , � . � ' , � . � 0!l�0� � , A�I/a* , �, � . . . ' , . . , � ; _ � _ � , , , . . , � . , - _ - . , ; . � . � . � , , _ : . , . _ _ . , . . � . . . , � , . , ., , . . . . . , . �. . � ' � � . . � - . .. �� �. - . " � . � . . � � . .. ��� . . . . . . . . . � .������.,9 ; ' .. city of saint pau! . planning commission resolution file number »-41 . date December 16, 1977 � WHEREAS, the City Council of St. Paul resolved on December 1 , 1977 (Council File 270159) to adopt goals far reducing tMe amount of local general obligation debt and to support in concept the Mayor's CIB bonding propasal; and WHEREAS, City Council requested that the Planning Comnission review these matters of debt policy and CIB bonding authorization; NOW, BE IT THEREFORE RESOLVED, that the Planning Corr�nission endorses debt policy proposed by Mayor Latimer, and adopted by City Council , and supports the city`s initiatives in evaluation and management of local general obligation debt; and be it FURTHER RESOLVED, that the Planning Commission endorses. subject to recommendations below, the concept of permanent bonding authorization for the City of St. Paul ; Recommendations . 1 . That the proposal to the State Legislature continue to incorporate language which �restricts the use of bond proceeds; further that such langu:age effectively discourage capitalization of maintenance through deferral of annual upkeep; 2. That the proposal to the State Legislature incorporate language establishing a Joint Debt Advisory Committee, similar in concept to that currently in operat9on and comprising the C9ty of St. Paul , Port Authority of St. Paul , the 'Ramsey County Board and Independent Schoo1 District 625; further, that such language empow�r a Joint Debt Advisory Committee to determine each year each member agency's usage of author.ized general obligation bonding. 3. That the proposal to the State Legislature incorporate language limiting the term of each bond issued under permanent bonding authorization to • not longer than ten years; and be it � FURTHER RESOLVED, that the Mayor's Office explore, with such assistance of the Planning Division as the Mayor`s Office may request, the benefits and disadvantages of indexing permanent bonding authorization to income rather than to Estimated Market Value. ` maved by Davi d McDonel l 5���� by Robert Van Hoef in favor 15 against � � . . . • . . � , . .. . .� . ` . . . . � . . - ' r . . . , �i . . r . .. . � . ' . . . . � � ' . PLANNING COMMISSION RESOLUTION 77-41 Page 2 � and be it FURTHER RESOLVED, That the capital needs list transmitted as part of the Mayor's debt policy letter of November 4, 1977, be returned to the Department of Community Services and the Depart- ment of Public Works for evaluation, with such assistance of the Division of Planning as either of these departments may request, of the necessity to show future capital outlay for multi-service centers and for major transportation projects which implement the Street and Hi hwa Component of ihe Transportation Plan (e.g, , Pleasant Avenue Corridor`projects). • � : ' O � � � � I � � . , � 588 MIDWEST F�NILDING • SAINT PAUL; MINNESOTA 55101 . 224-5776 � � • � `��� � ��►�Q a December 14 , 1977 � .,\.��` 1��' r;,. � �'��� �,� ��, q""e.°.���y D,C`�('J,t�,l, �'' �'� �t� � - �,�� 6���' r ;' MEETING NuTICE � ; ` /�j,l m � Planning and Development Committee: The City' s proposal for future capital improvement bonding �, authority� and goals for reducing future overlapping debt . have been formalized for review prior to approval and presentation to the legislature . Greg Blees of the Mayor' s budget staff will explain this interesting program which � promises to have a long-term impact on the City' s development program. The meeting will be held at 7 :45 A. M. Tuesday , December 20 , in the Communications Center of the First National Bank. This is the last meeting of the year for the Planning and Development Committee. Our regular meeting dates follow . ' ' holidays ; therefore , the next meeting will be Tuesday , January 10. You will receive a notice. � HAPPY HOLIDAYS TO ALL . �lr�-� � . � , � � 1 � - CITY OF SAtNT PAUL - ' - � - � � OFFICE OF THE MAYOR Long-Range Capital I mprovement Budget Commit#ee . December 28, 1977 Robert Sylvester, President David H. Hozza, Chairman, Council Legislation Committee, and ' City Council Members Dear Council :�Iembers: In response to Council Resolution 270159 which requested Saint Paul's �Lonq-Range Ca�itaZ Improvement Budget �ommittee to identify its recommendations relating to Mayor Lati.mer's proposed City debt policy and CIB bonding legislation, the CIB Committee recommendations are as follows: PRUPOSED CITY DEBT POLICY. The CIB Coam►ittee strongly supports the City debt policy proposed by Mayor Latimer, and realizes that the identified goals for reducing the general obligation debt placed on the Saint Paul tax base will only be met if the four local governmental units represented • on the Joint Debt Advisory Coma�►ittee take responsible action to control the amount of bonds issued during the next seven years. While the debt policy proposed is a positive step in the proper direction, its implementation rests with the concept of voluntary cooperation. Therefore, the CIB Committee recommends that the Mayor's proposal be modified to incor- porate the following concerns: 1) That a third goal be adonted for reducing the amount of local qeneral obligation debt placed on the Saint Paul tax base: Reduce by 1985 Saint Paul's general obligation debt from approximately 5281,000,000 ta less than $250,000.000. 2� To better insure that goals for reducing general obligation debt will be met, legal authority to regulate the amaunts of general obligation bonds issued in the future should be granted to the Joint Debt Advisozy Coaunittee. PROPOSED CIB BONDING LEGISLATION. The CIB Committee strongly supports the CIB bonding legislation proposed bv Mayor Latimer. The Committee endorses the concept of having the annual amount of permanent ?�onding authority based on the growth of Saint Paul's tax base. The Co�ittee also supports the idea of incentive legislation which incorporates the goals for reducing debt. The CIB Committee recommends that requested CIB bonding legislation continue to incor- porate language which limits the terms of the bonds authorized to be a maximum of ten years. While capital maintenance is an eligible use for bond proceeds, excessive use of CIB bond monies for capital maintenance encourages deferral of annual upkeep; therefore, the CIB Committe recommends that the Mayor and City Council recognize the need to finance - annual maintenance. costs when considering appropriations for the dspartments' annual operating budgets. , .. . City Council Members Page 2 December 28, 1977 ' The CIB Committee realizes that with less reliance on future bonding, the City will only be able to effectively address its capital needs with a more aggressive Pay-As-You-Go financing program. The Committee recommends that the Mayor and City Council take action to begin to emphasize Pay-As-You-Go financing while decreasing the reliance on future bonding by: 1) Increasing annually the direct levy for capital improvements: The City shouTd begin to significantly increase the direct levy for Public Improvem�nt Aid. • The Committee recommends that the 1979 levy for Public Improvement Aid be no less than $900,000 as compaxed to the 1978 tax levy of $600,000 and that future years' levies be increased annually. 2) While the CIB Committee recognizes that long-term bonding allows the City ta take advantage of paying for construction over a period of time with future dollars that have less purchasing power, some shortening of the term of bonds issued (from ten to eight years as an example) could lower the total debt outstanding while still allowing the City to take advantage of the purchasi.ng value of using inflated dollars for future debt service. • Thank you for the opportunity ta express our recommendations. The CIB Commi.ttee. commends the Mayor and City Council of Saint Paul. for their leadership in responsibly addressing Saint Paul's high debt burden while providing for future financing to � meet the City's capital needs. Respectfully submitted, � QU�4� �vl C y� David Mc�onell Vice-Chairaian CIB Committee DM:kh . cc: Mayor George Latimer Richard E. Schroeder � Richard Broeker Bernard J. Carlson CIB Committee Members John W. Connelly JOINT DEBT ADVISORY COMMITTEE . 113 City Hall • Saint Paut,Minnesota 55102 . Mayor George Latimer,Convener CITY OF INDEPENDENT SCHOOL COUNTY OF PORT AUTHORITY S aItiT PAL L DISTRICT#625 RAMSEY OF SAINT PAUL P,obert$yIcester.Council President Eleanor E.Weber,Board Chair Warren W.Schaber.Board Chairman George W.Winter,Board President Rwalie L. Butler.Council blember Catherine B.Hartnett.Clerk John T.Finley.Commissioner Louis H.bteyers,Commissioner Pa�•id H.F{ozZa.Cuuncil :Ifember William btagnuson.Vice Chair Robert J.Orth.Commissioner G.Richard Slade.Commissioner JOINT DEBT ADVISORY COMMITTEE Minutes of Meeting of December 22, 1977 � Room 707 City Hall JDAC Members Present: George Lati.mer, Mayor David H. Hozza, City Council Member , Eleanor E. Weber, School Board Member George W. Winter, President, Port Authority ' G. Richard Sl.ade, Port Authority Member Also Present: Kenneth Berg, Independent School District � 625 � Gregory N. Blees, Mayor's Office - Budget Section Kaymond F. Browne, Independent School District # 62S Bernard J. Carlson, Department of Finance and Mgmt. Services Joseph Hannasch, Council Research � Marion Holly, Ramsey County Budgeting and Accounting Peter S. Popovich, Peterson, Popovich, Knutson & Flynn Richard E. Schroeder, City Budget Director � Osmon R. Springsted, Springsted Incorporated Pat Westhoff, Minnesota Taxpayers Mrs. Weber moved that the Minutes of the June 22, 1977, JDAC meeting, as corrected to delete Bernard J. Carlson as present, be approved. The motion was seconded by bir. Winter. The minutes, as corrected, were then approved. Gregory Blees presented the Mayor's proposal for a debt poli.cy and for Capital Improvement Budget (CIB) bonding legislation. The debt policy would be enacted voluntarily with the cooperation of the other governmental entities that sell bonds. The CIB legislation is a proposal for the City to have future bonding authority. In presenting debt policy, Mr. Blees summarized the history of recent bond issues on the Saint Paul tax base. He discussed the various issues by the different gov- ernmental entities since 1969 and what is proposed in the future. The proposal is , for substantially fewer bonds in the future than in the past. In terms of buyi.ng � power, it will be significantly less. Additionally, he explained some of the calculations that were done regarding bonds to be retired within the next ld years, � estimated projections of future general obligation bonds by the various governmental • units and esti.mated local general obligation debt projections through 1987. I TECH\1CAL AC�CISURI'tiTAFF Pxrr.ard J.Carlsnn,Staff Ca,rdinator fta�mnnd F.Brow•ne. Jame+H.�'•rn H��udt. f.uytrne A.Araut. Grex�r}�\.Rlors. Dirrcwr.Drpartment ot Finance Executice Directur uf Bu.iness Direetor.Rud�n�t and Accountiny[ ps.istant Ext�auti�•e Vice Prr�ident. Executi�e�rrtary, and SfanaXement$en•ices and Financial Affain. County of Ramscy purt Authurity of the lunK-lt�nKa Cryital C�t�of Saint Paut (ndepri�drnt�hou1 Ui:�trict•6YS Ifil'tl?!Itt-;191� ('it�of Sain4('aul . Imprwemre[$udRrt Catnmittee , �h1Yi 29tf•�63i (F1Y)29N-S91S (til'tl'L'1a�il:liti (61Y)'39N-J3S3 � � ���.����9 �2" . __ � . 2•Iinutes of JDAC Meeting, December 22, 1977 • The present per capita debt is $1,005, while debt as a percentage of market value is 8_50. The Mayor proposes to reduce the per capita debt to $900 and debt as a percentage of market value to less than 6o by 1985. The present per capi.ta debt i� based on the 1977 estimated population by the Metropolitan Council. By the goal year, the popuZation is expected to be less, so even if the debt remained at a constant Ievel, the debt per capita would continue to rise. A decrease in the per caoita debt is therefore significant. Tne estir,ated market value i� the anount certified by the Minnesota State Department of Revenue on September 7, for equalizing the value of State Aid to schools. An estimated growth rate of 3�% for market value was used to project future market values_ ' The biayor's CIB bonding proposal is for an eight million dollar authority, until such tirme as the general obligation debt is reduced to less than 6% of estimated market value. After this goal .is met, the annual limit would be replaced by an amount r_ot to exceed one-four of one;percent of the estimated taxable market - value. ' Mr. Blees indicated also that the Planning Commi.ssion had reviewed the proposals and took unanimous action to support them,with the following recommendations: 1. Limit maturity schedule of bonds to 10 years. . 2. Legislature should continue to have specific language limiting the use of bonds, not for operating or maintenance,' - but capita2 impravement. . 3. Legislation should be requested to give JDAC some Iega1 powers ' by which it could li.mit the amount of bonds. l�ir. _Blees indicated that the CIB Committee had discussed the proposal at length and would be �aking its recammendations shortly_ He stated they would probably recor.uaend that the Council utilize direct levy more -- pay as you go. The rlayor then taok up the third item on the agenda which was the resoonss to JDAC's inquiry of the University of Chicago regarding discrepancies in debt informafiion for Saint Paul in the report, "How Many New Yorks: The New York Fiscal Crisis in Com- parative Perspective." The University referred JDAC's letter to the U.S. Census Bureau. � The Census Bureau respon3ed that the problem developed because the long-term debt for R�nsey County was presented differently by the Census Bureau and the Minnesota State Auditor. The Auditor's report excluded all revenue. special assessment and refunding bonds, whereas the Census report included alI long-terridebt issued by alI local govern.ments within Ramsey County, regardless of whether the debt�as guaranteed by property tax levies or by specified nontax revenue sources. The Cor�nittee discussed setting another JDAC meeting prior to the City•s meeting with the P.z,-nsey County legislative delegation, possibly the second or third week of January_ T"ne r;ayor indicated that the Committee would be asked to then take a position on his . , proposal.s_ There being no further business, the meeting adjourned at 4:50 p.m. � Res ectfully submitted, ., /' . :'^ r •�A ��r t ta t-�'�'� 'Bernard J.� Carlson � Staff Coordinator � � . � JOiIoTT DE�3T �►.DVI��R,� COMI�IT'TEE 113 City Hall • Saint Paul,Minnesata 55102 Mayor George Latimer,Convener CITY OF IAIDEPENDENT SCHOOL COUNTY OF PORT AUTHORITY S�INT PAUL AISTRICT kE;25 RAMSEY OF SAINT PAUL R�bert Sy�ke�ter.Counci! President Eleanar E.Weber,P.oard Chair VVarren�V.Schaber,Board Chairman Ceorge�5'.Winter.Board President P.usalie L Buder.Council�iember Catherine B.Hartnett.Clerk John T. Finley,Commissioner Louis H.14feyers,Commissioner Da�-id FI. Hozza Council �Iem6er William hlagnuson,Vice Chair Robert J.Orth.Commissioner G.Riehard Slzde.Commissioner \ _ JOINT DEBT P.DVISORY COMhtITTEE (JDAC) JANUARY 19, 1978 MEETING 707 CITY tiALL , 3 : 00 - 5 :00 P.M. A G E N D A - 1 . Approval of hiinutes of last meeting. 2. Joint Debt Advisory Committee approval of a. Goals for reducing by 1985 the debt placed on the Saint Paul tax base ; b. Capital Improvement Sudget (CIB} Bonding Legislation proposal . 3. Discussion and coardination of proposed legislation . . D M, �`�� l'�'7'� �Q..� � �tsra�•A.. � i � `,�� �ia- � ��''� ' �' � ,�,,,r, ( , � �. �� � . . � � ,�� M I � --- `�r/tr�� • TECEiKICAI.AUC(SORI'STAF'F' I Pxrnerd J.Car{v�n.�talf Ca�rdinator k:s.mord F.P.rowne. Jamr>Ft.�'an H��wlt. Euycrnr A.Kraut. Cregur��\.Rlrr._ . i D:r�•tnr.Ihpartmrnt o(E�inance E;xrcuti.r DirrcWr uf FSusina�s D�rectur.Etudyet and AcawntinK A:si.tant F.xrcuti�e�'ier Prc�:idrnt. F.xecutivr Secmtary. r.�d J1ana;rrment 4ccices and Finaneial AfSain. Cnunt}'o!E�•�m;ec Purt AutFu+riq•of thr InnF-FwnKr Cxpet�I ' Gc}'of�aint Paul � Indrprndent khwl Ui>trict rf;.: �filL1-�9:5-a1`�f Cit�•o(Saint F'au! Imyrwrment QudRrt Conmitter ,Z,i 2yr-l��i; 161'lI Y9is;vt� �1:1�!1 YYa�Srirn �6tY129&4:ti{ � � * * * PUBLIC MEETING NOTICE * * * • Citywide District Council Forum on Saint Paul's Proposed Debt Policy and CIB Bonding Legislation When: Monday, January 23, 1977 - 7:30 p.m. Where: Civic Center Meeting Rooms (in the basement of the Concourse which connects the old auditorium to the new arena) - the 3M Room (C-15) . Purpose: To provide interested persons from the city an opportunity to become more knowledgeable on the subjects of bonding and debt. The Saint Paul City Council has requested that district councils identify their concerns relating to Mayor Latimer's proposed CIB legislation. This meeting will e�lain the City's current debt position and Mayor Latimer's proposed debt policy and CIB legislation, and will provide a panel discussion of the topics as well as an opportunity for a question-and-answer period from the audience. AGENDA 1) City's Current Debt Situation (Greg Blees-�0 minutes) . 2) Proposed City Debt Policy (Blees-15 minutes) . 3) Proposed CIB Bonding Legislation (Blees-15 minutes) . 4) Panel Discussion: (40 minutes, approximate�y) Alice Willman, District 6 General District Planning Council, Panel Moderator George Latimer, Mayor Robert Sylvester, City Council President Osmon Springsted, Bond Consultant Sa11y Patterson, League of Women Voters Don Paterick, Minnesota Tax Payers Association Andrew Lindberg, Citizens League A: Ken� Shamblin, Chamber of Commerce . 5) Audience Questions and Opinions. cc: City Clerk ' City Council Members Panel Members SPECIAL NOTE: City Council has set a public hearing on Saint Paul's Capital Improvement Bonding legislative proposal for 7:30 p.m. , Monday, January ,�; 1978, in the Council Chambers, third floor, City Hall. 3� , . ! Re��. 1/20/78 . �I '�..�'..�J - � ,;.ti i . �/ A bill for an act relating to the city of St. Paul; providing , ior and authorizing issuance of general obligation bonds for capi-tal improvement � buddet purposes; amending Laz,rs 1971, Chapter 77j, Section 1, as amendeel. � BE IT E�.�TACTED BY �HE LEGISL�ITURE OF THE ST�Z'E OF AiI�'�ESO?A: Section i. Laws 1971, Chapter 773, Section 1, as amended by Laiss 1974, Chapter 351, Sectian 5, Subdivision 1 and La��s �976, Chapter 234, Section 1, is amenaecl to read: Section 1. Subdivision 1. �T. PAUL, CITY OF; CAPITAL I�IPROVFryi�:YTS PROGRA:'�i, Notz�iths�anding a.nyr provision of the charter of the city of St. Paul, the council of said city . shall have poirer by a resolution adopted bp fizre affirwati��e votes of all its members to authorize the issuance and sale of general obligation boncls of the city in an amount of �6,500,000 for each ca3endar year for a four year period commencins with the year Z976, and thereafter in a��re¢ate annttal amounts not to exceed �8,000,000 or an annual limit to be deterninecl by an "incentive provision for�ula" as defined in this seetion, for the payment of itihich the full fait�i and credit of tlie city is irrevocably plec�ged. - Subd. 2. �NCE�VTIVE PROVISIO� FOR�IULAJ In orcter to accolint for t�ie continiiina inflation �.Iiich diminishes tlie purchasin� potcer of Uozidin� i;liere the annual amount aut�iorized is �ranted at a constant le�el aiid in order to lic�it the �1 amount of �eneral obli�ation ctebt pled7ed 1 _ � : _ _ .. _ _ _ . ^� . , .� . anainst the St. Paul property ta�: base. at such time as St i � ' Paul ' s local eeneral obli�ation debt as a percenti��e of St. Paul 's estic►ated garket value is less than si�: perceiit as calculatecl an December ji of any vear, tiie bondin; for the � � �olloz�in� year shall be limited to an a�oimt determined bv �. an -incentive provisio� formula zYhich shall be one-fo.ux-th of one percent vf St. Paul 's estimated m�.rbe� value Subcl, j. �T. PAUL�S LOCAL GE\TERAL OBLIGATIO�T DEBTJ St. Pattl 's local �eneral .oblinatioii debt is the aa�re�ate �eneral obli�ation debt incurred bv irrevocabl�T pled�in� the fu?1 fai-th and credit of the 5t. Paul propertv �a� base to � secure the bonds issiied by the city of S�. Paul, the Housi2i� . and Recle�'elopment Au�Ehority of Saint Paul, the Ci��ic Center Authorit,v of Saint Paul, the Port Authority o� Saint Paul, Inctependent School Distric�t No. 6�7, and the County of R�msey adjustecl to include the countv-isstted aeneral obli:�ation clebt as a St. Paul propert.y tax liabilit�T proportionate to the assessed valuation of St. Paul as a percenta�e of the assessed valuatzon of Ramsey County, and not inc2udin� anZ� refunded bond issues. - • Subd. 4. �T. PAITL'S ESTIlIATED I�I.AR�T ZTALUE] St. Paul 's estimatect market value slzall be cletermi.ned �j- . di�cridin� the count;� assessor�s Iimi-ted nar3iet value of 5t. Paul by the most curre�it salas ratio value cert�:fied bv the Minnesota state revenue departr�ent. Sec. 2. This act shall becone effective onl�- after � its approval by a r�ajority of t�ie aot�ernin�- bodv of the citv of Saint Paul and upon coM liance z:ith the provisions - of �iinnesota Statutes. Section 645.021. � S m Z f"� p i o+ aoinn n �o �n .aro cvaoMOU� mr+ romv mvor+ m no V M O O N �n .a c� o er m c �c r r c �n m o+ r M n ui .-� o cv M �o o w t!] Ft � rnr oo+ v� orr � mr� vr� r� in �nc �'+ �o ino� �orr �co � � m � . . . . . . . . . . . . . . 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THE TASK FORCE SUPPORTS: --- Goals as proposed by the Mayor rather than strict limitations which do not work. --- An increase in the CIB Authorization to $8 million if it is accompanied by a corresponding pledge to keep the City bonding ' total at no more than $10.5 million. --- Permanent bonding authority if flexibility is givei� the City or if it is understood the City may have to seek revision of its authority. --- The Incentive Provision Formula which gives the City an incentive to control bonding and provides a means of affordable growth to meet the demands of inflation. THE TASK FORCE SUG�ESTS: --- The City meet with the County �nd the school district to develop joint '�� goals and a joint �lan for debt control. THE TASK FORCE SUGGESTS: (continued) --- Consideration be given to adding another goal to take into account the ability of our citizens to pay for debts. Such a goal. might be to reduce debt per capita to a percent of disgosable personal income per capita. --- Consideration be given to eliminating sales ratio as a factor in arriving at assessed valuation since sales ratio can fluctuate con- siderably from year to year and its accuracy is often challenged. � . � �r����w�'� , �:. District 6 Planning Council 1060 Park Street St. Paul , Minnesota 55117 January 27 , 1978 St. Paul City Council City Hall St. Paul , Minnesota 55102 Re: Bonding Resolution Council File No . 270159 Dear Council Members : The District 6 Planning Council wishes to go on record in support of the concept of increased fiscal responsi- bility. We additionally feel the Mayor and City Council have rightly placed high priority in controlling St. Paul ' s general obligation debt. We do , however, have certain reservations concerning the above ordinance which should be addressed. We are specially concerned regarding the statutory limits which would be placed upon the City while other units which compete for citizens ' tax dollars , such as the District 625 School Board and Ramsey County Board, are not under any such limitation. We feel this is significant since the bond ordinance assumes a reduction of capital spending by both of these units . We see the development of the Joint Debt Advisory Committee as an excellent first step in coordinated planning, but only a first step. Unless some guarantees are forthcoming from the other units as to their future spending and fiscal responsibility, we cannot support the legislative strictures being placed upon the City. In addition, we feel that placing such tight limitations may in fact prevent the City from exercising flexibility in taking advantage of new opportunities or adjusting to future situations . We also support the concept of a reduction of the general obligation debt per capita, but feel that the ordinance may cause unnecessary hardship in reaching goals too quicklv, City Staff' s projections comparing expected spending needs over the next 15 years with expected revenues over the same period indi- cate a deficit of about $106, 000,000 . 00, which Staff admits is only an estimate. The deficit is in 1977 dollars and, considering expected inflationary trends , would mean an actual deficit of as much as $400,000,000 . 00 . If revenues are expected to be somewhat less than $700,000,000 .00, this looks like a reduction in City service and spending by as much as 35 percent. This is an enormous reduction to citizens who have come to expect a government responsive to their community problems . We feel that adequate investigation of the long-range prospect of such . - �'/�,��� St. Paul City Council -2- January 27 , 1978 reduction has not been made. Also, we have not received any information as to why goals set for 1985 could not be extended to 1990, or beyond. The District Council does not believe that a public referendum on the bonding ordinance is necessary, provided that a full and conscientious discussion takes place in regard to the above-indicated concerns . If, however, the City Council does not fully address our concerns , there appears to be no recourse but to support a referendum in hopes that this may engender a full discussion of the issues . Sincerely, 1.�� l�V -�-�--e�-,-�-�,.�-.� Alice Willma.n, President District 6 Planning Council N N� �� O O O� �'1 S 0� S �O � O�C O O N eV � t0 m 1V N T � P O � r 1p N O�� '1 'I N r4 �i .d •i N N�0 O O O N Iff Y1 N O N NtV 01 p '1 O N N fV N hl � YI� N 1�N CG P � r~r n rl . b 80 S(D ON� O � oa omm o ml � �.�i nu�i Nb� N ti .� � �o 0 00 N �R N go $� 8° 8m� o NI . . . m �� °� om ��ry �° a �n r r .r m M1 � � O N og opo go 00 $,00 e ' 8m O� Ovf O b Ob�p N ml N'�-1 V�i N O T �0 H N��0 N � V �0 1� �0'I fV 1� �O N � O N 00 �O SN O� O.i ONU�i O ml O N S d O N O O� O O N 1�1� N m 00� ON OI'1 O W OGD O N0� O . m �fl N r1 vl m N V wl O m m m a a �0 r N �ti O��'1N m � 0 08 8� 88 80 0� 8r a�� ° ml oa oa 6d 6� d� dd �oo c m in �n eV in in in r� � m m e e e �o.+ �o �D N in a �n H O N O O O O O� v� O rv O m O� O O O � m l O0� Nn OO� ON Ot0 yOn `T ��D , O � O V� O a O n b.+�i �0 ti �1�1� �0 b 1�'1 � - 1f�1 N I1�1 U�l . 8 T G O O n O� O N O O O N O O O m< �I N N O 1� N O O O� N M O O O N p O^ m � N Y1 N d �0 O� �l1 m Y1 rv v e e a v �o �o n �m m a n Q N � 8�`�i O N OM OO�i O.i O V 00� O N ON Orn m n p�'1 ON ' 00 O N 00� Om O.� O in Ou� 00 V � � S 1`! 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