09.02 Old Highway 371 Improvement Project

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Springsted 4. Street Reconstruction Plan Bonds (M.S. 475.58 Subd. 3) • Purpose: Utility replacement and relocation,turn lanes and other improvements having a substantial public safety function, realignments and other modifications to intersect with state and county roads, and the local share of state and county roads. Does not include widening streets or adding curb and gutter. • Voter Approval: No; subject to reverse referendum if 5%of electorate in last general election sign petition • Board Approval: Unanimous approval of the members present • Subject to Statutory Debt Limit: Yes • Other Statutory Limitations: No • Cities must establish five-year plan that describes the street reconstruction to be financed,estimated costs and any planned reconstruction of other streets in the municipality • Cities must hold public hearing on the plan and intent to issue bonds • Public hearing notification must be in the official newspaper at least 10 days but no more than 28 days prior to the hearing • Reverse referendum period begins the day after the public hearing 5. Utility Revenue Bonds (M.S. 444) • Purpose: Build,construct, reconstruct, repair, enlarge and maintain waterworks, sanitary sewer and storm sewer systems, or any portion of the systems. • Voter Approval: No • Board Approval: Majority vote of the governing body • Subject to Statutory Debt Limit: No • Other Statutory Limitations: No • Net revenue of the utilities are pledged to the repayment of the bonds • Utilities must maintain net revenues adequate to pay all principal and interest when due and maintain reserves securing the payment of the bonds • Real estate taxes(levy) may only be used on a temporary basis when net revenues are not sufficient 6. Abatement Bonds (M.S. 469.1813 and 469.1814) • Purpose: Finance or construct public improvements that increase or preserve the tax base,to help acquire or construct public facilities, to acquire or convey land for economic development purposes, to provide employment opportunities, or to help provide services to city residents • Voter Approval: No • Board Approval: Majority vote of the governing body • Subject to Statutory Debt Limit: No • Other Statutory Limitations: Maximum principal amount of bonds issued under the abatement authority cannot exceed the estimated sum of the abatements for the years authorized. • Cities must hold public hearing to establish the abatement • Public hearing notification must be in the official newspaper at least 10 days but no more than 30 days prior to the hearing. The notice must identify the property(s) abated and specify the total estimated amount to be abated. • Cities may grant an abatement for up to 15 years(20 years if either the County or School District participate) • Maximum amount of abatement in any given year cannot exceed the greater of 10%of the net tax capacity of the city or$200,000. 2014 Public Sector Advisors