CC 09-06-1972 - Laserfiche WebLink

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. .--4-. ... . . I Page 2- be issued for at least ten days after publication in the official nm-Jspapcr of a Council resolution determining to issue said certific~tes..lf before the end of that time ~ a petition ror an election on the proposition signed. by voters equal to ten percent of the voters at the last m~nicipal electiOl: is filed ~Jith the clerk, a referendum is necessary prior to issuance ef the certificates. '[.'lUS it is possible that a 1,,"Cfere;1uum would be ncccss(:o.ry even if certificates of indebte~1ess are used to obtain funds to purchas~ fire equipment. The amount of such certificates vloald be included. in. tho if11ct debtH of the Village, as defined in "llnn. Stat. Section 475.51, subd. 4. Therefore ~ the prohibition of incurring 'a net debt' in excess of twenty percent of the assessed valuation of tho Village would apply, as set forth in Minn. Stat. Section 475.53. Minn. Stat. Section 275.51, subd.. 1, provides that llspeciul levies'; are not subject to the tax le\"/ limitation. "Special levies" includes Ilthose portions of ad valorem taxes levied by govern:acntal subdivisions to: (h) pay the costs of principal and interest on bonded indebtedness." 111US, it appears that the certificates issued would fall within the meaning of "bonded indcbtednessil and would be excluded from the 1971 levy limitations. If the Village vlCTe to purchase the fire equipment by this method otherl.<lise, it should be possible to negotiate an appropriate lease arrar"ge- mcnt with the Lake Johanna Fire Department. Please review this matter m.d submit the sanle to the Council for their consideration. If you have any other questions please contact the undersigned. Yours very truly, DOUGLASS, BELL, DONLIN, SHULTZ & PETERSEN J2-- A ~.. Thomas M. Sweeney ~ TMS : spd ~--"-'----