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258913 oR,�,N,;�To�,n��K 258913 ., CITY OF ST. PAUL FIOENCIL NO. OFFICE OF THE CITY CLERK UNCIL RESOLUTION—GENERAL FORM PRESENTED BY COMMISSIONE DATF WHEREAS, Charter Section 203.3 provides for increases in the adopted budget, and WHEREAS, By letter dated May 25, 1972 (copy attached) the Comptroller did report that additional funds are available, therefore be it RESOLVED, There is hereby appropriated from the debt fund balance to operating fund the sum of $500,000.00 to be credited to a new item in the "Revenue Summary" - namely Interest - Bond Fund Investments; and be it FURTHER RESCILVED, That the sum of $500,000.00 is hereby appropriated to Activity 0963 - 460, Civic Center Expense in Charter Fund 35, and be it FINALLY RESOLVED, That this resolution shall not be adopted by this Council until after a public hearing has been held for which five (5) days public notice shall have been given once in the official newspaper of the City and the approval of the Comptroller is endorsed on this resolution. Approved: Approved: ___ , ,_ . . /,��l�-C�d4—� Y : '1 r.r �.��ratiot� Counsel Chief Aecoun nt - `Com troller ' �� °�1�, ,�, .,'v;i:�'' �� —.— ... .•��4E;:•i-4- :eCw . . , �� , . . . .i^+�` . , t.::v.:.. , �'� . -�`^,�„n••3".. q� �. �� Y �� COUNCILMEN Adopted by the Council 19— Yeas Nays JUN 2197Z _. Butler H;�i33� Conway 9` T __ • LG V 111G� _ n Favor Meredith r Sprafka � A gainst Tedesco Mr. President, McCarty �� . RUBLISHED JUL 2 91972 4 �j ,j�f� . �,� �� - OFFICE OF TH COMPTROLLER SAINT PAUL MINNESOTA 55102 1 ALL ... .■■ CLEMENS J. SCHLECK ROBERT W. TRUDEAU Chief Accountant Asst. Chief Accountant Comptroller Deputy Comptroller May 25, 1972 Honorable Mayor Charles P. McCarty and Members of the City Council At the request of Ma.yor Charles P. McCarty I have prepared a proposed 1972 Budget Revision. This budget revision proposes that the City Council appropriate to Activity 0963 - Civic Center Expense $500,000.00 from the Debt Fund Balance. A request to the Corporation Counsel for a legal opinion as to whether there is any legal statute or opinion which in any way would permit or prohibit the use of interest earned on the investment of Civic Center Bond Funds to offset escalating cost increases has been presented to him by me. As of the date of this letter I have not received a written reply to my written request. However, informal discussions to date appear to indicate that such a policy could be a determination by the City Council. Subject to the receipt of an approving opinion from the Corporation Counsel on this matter, I hereby report to you in accordance with section 75 and 203.3 of the Charter that additional revenues may be made available to finance the attached budget revision from Debt Fund Balance. If a favorable opinion is not received by the time the public hearing on this matter is concluded, my approving signature will not be endorsed on this resolution and as you know, without such endorsement the resolution is not effective. Sincerely, , � Clemens J. Sc eck Chief Accountant - Comptroller ., � � . � ��y� � . ;� � � ` -�� t ,., ,�.-, m �+� � :'�,�sY�"`�".,;� ; �ti. ��, �.. � -;-.�; � IC 1� _ �� ;'; � Y, � �. � DQt`��'` '�, '.��, � ' ( .�1979) - � �1�� Area Code 612 �`� � THOMns �. srenwrvs 22$-5121 f� � - � ARTHUR M. NELSON � 1� PAUL F. MC GLOSKEV, JR. ' , R. SCOTT DAVIES �y, � — - / PIERRE N. REGNIER �----' DANIEL L. FICKEI7 JOHN C. MC LAUGHL.IN KENNEP�r��`C��q��S.RICK CITY OF SAINT PAUL ROBERT C. HOENE 1L A. KEITH HANZEI l� tr.T X TERRV F. SULLIVAN C Z .y orney L E G A L D E P A R T M E N T Assistants JEROME J. SEGAL ROBERT W. MATTSON Special Assistant 647 City Hall, St. Paul, M innesota 55102 investigator �{} } � ti # July 21, 1972 Mr. Clemens J. Schleck Finance Department City o � Saint Paul Dear Mr. Schleck: Re: Transfer of bond fund interest to Civic Center Construction Fund You are hereby advised that you may execute the necessary documents to transfer the accrued bond fund interest on the Civic Center Construction Bonds to th^ Civic Center Construction Fund Account on the basis of the previously issued legal opinion of our office, copy of whi^h is attached hereto. Very truly yours, �� --- � ��`��.._,_._„_._,� R. SCOTT DAVIES Deputy City Attorney RSD:bl . � � � , �� . •• - ClTS' ii�, � v �/ � 'Area Code 612 .� ,�1 , TMOMAS J. ST[ARNS � „ 223-5121 � �---;;Z- v. ARTMUR M. N[LSON � `�`,'� - � � PAUL F. MC CLOSKlY, JR. . � _ ��'�,,:�_.. � \f\ R. SCOTT DAVI6S 'r v.+��`` rtERRE N. REGNIER � DANIEL L. RICK6R JOHN C. MC I.AUGMLIN CITY OF SAINT PAUL ROBERT C. MOENE KENNETH J. FITZPATRICK A. KEITM MANZEL FIKiL.�LlibliEiflt - - TERRV F. SULLIVAN City Attorney LEGAL DEPARTMENT Ass�stants JEROME J. SEGAL ROBERT W. MATTSON SpeCiaLAss►staat 647 City Hall, St. Paul, Minnesota 55102 ��vestigator DANIEL A. KLAS July 3� 1972 Carpvratfivn�,bansel Mr. Clea�ens J. Schleck Chief Accountant � Department of Finance City of Saint Paul Dear Sir: T'his letter is in response to your request for opinion of the City Attorn�y as to whether there are any provi�ions in law that would permit or prohibit the use of earnings on bond fund investments to offset inflationary costs incurred during the construetion of the Civic Center. T'he City Cotincil, pursuant to special State legi�lation, authorized the is�uanee of $19,000,000 in general obligation bonds. T'he resolutians authorizing the bond issue and fixing the fgra of bc�nds, together with the form of bonds, specified that tlle bonds were issued to procure funds to be used by the City to eonstruct, reconstruct, remodel an d equip a civic center exhibition hall and auditorium and to acquire land necessary therefor and irrevocably pledged the full faith and credit of the City to starid behind repayment of these bonds. Pursuant to Chapter 475, Minnesota Statutes, the Council levied a tax for 100% of the debt and interest and al,so a 5% shrinkage. �'he bond fund proceeds have been deposited into a special account and invested from time to time in short and long-term notes. T'hese bc�nd proceeds earned interest in the amount of $290, 533.05 in the year 1970 and $728, 235.52 in the year 1971. The City Council, in adopting the budget for 1972, appropriated $456, 122.00 of this earned interest to be applied against debt retirement due and payable in 1972, leaving an unappropriated balance of $562,646, 57. �'he City Council proposes to appropriate $500,000 of this earned intere:t to offset iaflationary costs incurred in the con- �4 struction of the new Civic Center. � �� . - _— -- -. , .. ._ �� - �- . �� . • . � , . ' Mr. Clemens J. Schleck 2 July 3, 1972 Chapter 475, Minnesota Statutes, does not prohibit the use of earnings on bond fund investments for the same purposes for which the bonds were issued; provided, however, that if such interest earnings are irrevocably pledged or appropriated for debt retirement of if such interest earnings are placed into the Sinking Fund, then the interest earnings may only be used for purposes of debt retirement. In the present case only a portion of the intere st earnings were allocated for debt retirement, which allocation was made when the City Council adopted the budget for 1972. There being no law prohibiting the proposed use of such interest earnings, it is therefore our opinion that these unappropriated earnings may be expended for the same purposes for which the bonds were issued. Very truly yours, �,,% —�, � � -�-� ; J ',��.�1�..u�,��_.}.� �,;r��,,�'� I� TH J. FITZPATRICK Cit i Atto ey f / JE �J�. G t�As stan City Attorney JJS:ja cc: Mr. John Friedmann Managing Director Civic Center y:' . f.S o�.��T�,��,� �9�3 , � CITY OF ST. PAUL ��WNCIL NO , OFFICE OF THE CITY CLERK COUNCIL RESOLUTION-GENERAL FORM PRiS��lf COMMISSIONE� DATE W�ABA$, Charter Section 203.3 provides for increuaes in the adopted budget, and W�BBAS, By letter dstad �lty 2S. 1972 (copy attached) the Qa�r�trollsr did nport t�at additional funds arn available, therefore be it �SSa.VBD, Thsre i• bsraby appropriatad froa4 ths dabt �ad b�laaca to operating fund the �nm of $500,000.00 to be credited to a asw item in the "Rev�nue Sua�ssy" - nsmely inters�t - 3ond Fuad Iavastments; and bQ it FII�� jtBSQ.VBD, That the tum of $500,000.00 ia hereby appropriaEed to Aativity 63 - 460. Civic Center Bxpawe ia Cbarter Fund 35, aad be it FIHALLY RBSQ.VBD, That this resolution shall aot bs adopt�d by this Council until sft�r a �blic hearing haa been held� for Which five (S) day� public aotice sUall tuve b�aa giwn onca in ths official newrpaper of tha City aad the approval o! th� Carptrollar ia �ndorr�d on this re«olution. Approveds Approvad: � Corporation Coanaei Chief Ac nt - Co�p rollar JUN 81972 COUNCII.MEN Adopted by the Co��ci� 19_ Y� xa� JUN � 19T2 Bu�� Approve� 19� � Favor Meredith � Sprafka � Mayor A gainst Tedesco Mr. President, McCarty ��