2001_1126_packet - Laserfiche WebLink

Home

BItIGGS �hv MORGAN Transfer of Future Receipts and Excess Debt Service Fund Balances to General Fund. Minnesota law and the resolution authorizing the issuance of the Bonds do not directly authorize ..,.� ,7.� rL,._. ...�,.L:L:a aL.. .]..C_..__,.__ ._C..L., D_....i_ L-' `L— "__ —f ___t_�7_._ J_L� __�.:�,. L..�.� i►vi uV 111Gy �J1V111U11 L11G UGLG2lJ2Li1GG Vl L11G DU11US Uy t11C U�G Vl CX15L111� UGUL �C1Y1tiG lUl1LL balances. It is clear, however, that under state law, if the proceeds of refundin� bonds had been used to effect the defeasance, such excess debt service fund balances and future tax increment could be redirected to the payment of the refunding bonds. Under the circumstances it therefore appears reasonable that, upon establishment of the escrow account, the Bonds should be considered to be "paid" within the meaning of Minnesota Statutes, Section 475.61, Subdivision 4. Under that provision of state law, upon payment of bonds from a debt service fund, the remaining proceeds may be transferred to the general fund and used for any general purpose. Since, however, the surplus sums in the Debt Service Fund are derived from tax increments, the specific law set forth in Minnesota Statutes, Section 469.176, Subdivision 4 would require that such surplus be deposited in a tax increment account and used only for the purposes set forth in said special law. Your attention is also directed to Minnesota Statutes, Section 435.203, which provides explicit authority for transferring moneys to the general fund which remain on hand or are thereafter receivable in a debt service fund created for the makin� of one ar more oroiects after all ., . , obligations of the fund have been satisfied. Very truly yours, /s/ � k� M�dvt�l�h Prnfetci�nal As�nciatinn