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Home My WebLink AboutCC 09-06-1972 . /Jlfl-!:,,/!$ ... , Mi illites Q1' Sp.oc~ a) CounG~ ~ ~'leo'(I og V ~ ~ ~ ! go Co .;. i\ r de n H! : ; s V0dnssd",y, September 6. 1972 V. i I age H~:I I fs< I L'to_.o rdo.[ The meeting was cal led to order at 7:50 p.m. by Mayor Crepeau. Roll Co! I Present: Mayor Crepeau, Councilmen Olman and Henderson Absent: Coun<ellmen rlollennerst and Herrick . Also Prosent: Lske Johanna Volunteer Fire DepsrtmBnt: Fire Department Chief Harold Fischer Fire Department Treasurer Gus Johnson Village of North Oaks: Councl !man Robert Wolfe Clerk-Treasurer Nancy RozyckI VIllage of Shorevlew: Councilman Richard Wedell Clerk Administrator Richard Hogan Village of Arden Hi lIs: Public Safety Committee Members - Wm. Ruppel - Don Charlas Clerk Administrator Lorraine stromquist ,," P~rpose of MeaJir~ Meyor Crepeau 8xp~alnBd that the meaflop was eal led for the purpose of discussl";! flnanc!.d needs of th3 "Ire department for the future five to six years. Figures from an earlier long range financial plan from 1967 thru 1975 wers reviewed. letters from Treasurer Gus Johnson, dated June 15, 1972 llnd July 25, 1972, were noted. The ,8tt.:;;,S detailed Increased "nanclel n9\,ds for the department's continuing operation because of area growth. Ql~S'_~l~ Coundiman Henderson explained the ,~rden Hills tax levy lImit problem, st1?lflng "i-hat ~'e Clra belnq ,'orcea to use Vlllag0 stlrp;\ls fttnds this year to reduce our tax levy In order to comply with levy limitations. He) ,,"skeel consideration fC;r 0 delay 'lor Fl"den Hills added financial ob~lg8tlon to i"he f~re department, if possible. Treasurer Gus JohnSC!l st~ted he felt the mat~er shou~d and couid be haildled in two parts: I. Normal budget needs. (This includes 50me capital outfay.) /1 2. Futut"'e nheds 5uch as snorke~, bui~din~s and ()ther ~)quip- t'nDnt# etc~ll O~- i"h(~ SD eel led .:~,~}pl~h~) budget" Counc~~man Wede~~ reported that -flrB department offlc!als have baan d{l}Tai i tng QxfstJnp and 'hd'ur-e pr'obiems "fa the varlous councils fol" tha past two years. Siloreview'~ f&ced wJth three story rnuitip;e dt"-,l0~ ~ :nr1s; North Oak;,;~ wi! ~ hu'-to Cl nO\<J jnniGf' high school; and l\;~'dan H~~15 has its cOilHnen;la1 and ;ndus~t'?'iai at'Ga~ Inciudlng a four story mJ~-e~ tddit!cm bolng bul I;' onTo McG'Jlrs'" StJpp.sr Club. He sa~d that Shorcv[ewts C~erlt Administr~~or and VI~lage Attorney have dene SOI~e worle on the financfel problem as It reietes to e ir:.:vy ~~m~tat~on and 'they hove como up 'ftJi"fl ~)n(1 sclui~5on, which an- ab~az tlla vi 1 ;aQ~5 to go lnto debt on tempora~y ~oans to l% of current ~ss.z$sed ve~t~at;on to 1ine)~~ce fire depar~~hn{Jnt needs. COHnci&rn~)'n ~'10j-r9 s'~~:d'Gd we ar0i getting into a. subs"{'c)ntial Investmont f~p rgp. I~.I nn"l~~~~~ ~,~ ",.-;.,-I"'la~ 'I~.)t~er -,.h'la S'lcl"IA Deft p-Id ,I,~-, ....-." ,.,l.af ~""il... 1-..lh...",J L r..... ~uv:::. . "." ,-"", , 11'\:), 11'" I <0.11 'U v u by genera! tax levy or by bonded indebtedness. He did not question the stated noeds, but only the method for financIng. There was genenli agn,emoflt by the group preSL'flt on -rhis poln-t. - . .. , . I SD8c;e~ Counci! ~~88tlnu -2- Sept. 6, 1972 C13r~ Administrator Hognn rovle,od hIs proposed method tor purchas- ing fire uquipment by II&UanCa of C.rtlflcBt~ af lndebtadhess, and prasarted . nrltten opinlonl.ttmchedl on the matter from Shorovlew's. Attorney Thomal M. Sws8nay, dated August 24, 1972. Mr, Hogan oxp'alned that undsr this p~Bn each wiling. might conceivably Issue certificates to u~y different plac.~ of fJr. equipment, end laese them back to the 11re department. Thoy, In turn, could leese beck to any of the three vi 8laQas; thUI, the vl~!agG$ with levy limit problems could pay the costs to snother 'Ill lags cs en oper.tlng cast. There was egreoment th at "i! i'iH'e>:> v H I !\g~s hca tel;' III vy H ml t p rob hlll'lS . Further dIscussion reBulted in the following: 1. Bath the lire dmpertmont End ths three concerned villages tent~t~v8Iy _greed to the fDI~a~ing overat! budget 'or 1973: Former budgeted emCcfnt Addsd ~mC~nt due to growth 'ector Added ~mcunt 10r Coc~1 p~r+lcl:~tlon rcg8rdlng p~nslon$ Totlll $38,000 3,000 3,000 $44,000 2. All presGnt t.ntatlveey agreed to ~pport!Dn the 1973 budget ~caordlng ta '973 GSSOS3sd wo!uatlcn. 3. That Trsazurur Gus JDh~SDn will Investlaete bulldlnc sites for:;: 1ut'Jrc bul icllng ;:md "rrovl de lI,tormu)'lon on 1utur6 llelHls rS!j<1rdltlg by! ailIng lociOtlon and rO';'$OIlS for such ~ocatforl.. 4. Thot edmlnlstratorl fram Shorevlew, North Oaks alld Arden Hills act ~s ~ study lubcammltt.a on the long range financial propDsa~. ~nd the, thay develop passlbl& alternatives and proposals for thalr counlls' consideratIon. Local public satety committoes to k~Bp clase !lalson with this subcommittoe Olm. Ruppel fwd Don Chllrlss In Al"d.;;n Hillsl. First meeting of s~bCOmmltt0e set tor Friday, Septomber a, ct 12:00 noon ~t North Oeks' o1flco. 5. Thnt the president of the 11re depertmQnt's benefit association provide Information to th. thre3 vl91ages regardIng the pur- pose and prov~slon& of the flromen's relief association. 6, T11I"t the nBW fl"B '1""'1(" [llan bo 5t<:>r-red In /974; March 31, 197;; sat as "h}il'h~l~l!va d~;Gdl~110 fcr~ ad~i)inJsi"retors end fIre depart- ment proposals regmrdlng th~ flv. yamr p!mn. tf.JolJrnm8f'i The meeting was adjourned at 9:00 p,m. MtSyor I~~~ o l"i:;:ii'i n fj.-S:t"FCinq II i s or Cjerk Admin~stratQr ., .... ?r:i:DERICK C. DOUGLASS JAMES R. BELL PAUL G. DONLIN JI.MES M. SHuLTZ JOHN W. PETE?SEN I'}lOMAS M. SWEENi:Y THOMAS 1. LYONS ! AMES J. GALMAN I. DIXON TEWS RODGER D. SQUIRES JEROME P. F:Ul.. -\ilARREN M. HORNER JOHN C. WALLRAfF L'i.MES R. GovnWG l/tA:in: M. NOL,\N \7 _ TIMOTHY' MALCHOW JORN H. LEMAY copy to: Counci I Hogan Rozycki Ruppel Char les 9/22/72 \ \ 1,1 I' '<:y~)-;)~~~~..:~ -(// , ~ DCl.jJG,LAS~.:p~~J..\ DONLIN. :SHULTZ &.:: PETERSEN ,.::, ~i{j0 '-, .,-,~'/; '-'ATTORNEYS AT LAW i@ ~f");~!r~~~~ ~<9...:",) '::0.52ti OSBORN BUlL-CliNG \ -. r,,-., , '.... >~.i.h~. .... .t:WAaASHA AT 5TH STIu.:r::T \,-;~ :/,;'.L.G/!~~,-~;;.'Y /i~~ PAUL. MINNESOTA tiS102 , 6 '-C /,0- '0'\" f?, " August 24, 1972 T~l.E?HONe: (AREA COOE 61~) 224.53::) 1 B. H. LOl'TSCAARDEN O~~ COUNSEL TO: RIQMRD B. HOGfu~, CLERK ADMINISTRATOR . FROM: DOUGLASS, BELL, DONLIN, SHULTZ & PETERSEN, VILLAGE ATrORNEYS , SUBJECT: CERTIFICATES OF INDEBTEDNESS FOR PURCHASING FIRE EQUIP~lliNT Sill,P.~RY k~D CONCLUSION: In response to your inquiry of August 24, 1972, Minn. Stat. Section 412.301, entitled "Fina..""1cil1g Purchase of Certai:1 Equipment" provides as follows: The village cou~1.cil may issue certificates .of indebtedness within existing debt limits fOT the purpose of purchasing fire or police equipment or a~bul~~cB equipment or street construction OT uain- tenance equip~cnt. Such certificates shall be payable in net DOTe than five years and shall be issued Oll. such terms and in such manner as the council may determine. If th6 amount of tneccrtificat:es to be issued to finance any such purchase exceeds one percent of the assessed valuation of the Village", excluding money @l.d credits, they shall not be issued for at least ten days after publication in the official newspaper of a council rcsolutio~l determining to issue them; and if before the end of that time a petition asking for an election on the preposition signed by voters equal to ten percent of the number of voters at the last regular municipal election is filed with the clerk~ such cGrtifi- cates shall not be issued until the proposition of their iSSUa21Ce has been approved by a majority of the votes cast on the question at a regular or special election. A tax levy shall be made fer the payment of the principal and interest on such certificates as in the case of bonds. As set forth above~ the Village may issue certificates of indebtedness, without a referendum, to purchase fire equipment, payable in not more than five years, if the ~"OWlt of the certificates does not exceed one percent of the assessed valuation of the Village, If the amount of the certificates exceeds one percent of the assessed valuation, these certificates shall not I . .--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 ~--"-'----