HomeMy WebLinkAbout6804 - ADMIN Resolution - City Council - 1981/04/06April 6, 1981
RESOLUTION NO. 6804
RESOLUTION STATING POLICY FOR INTEREST
RATE ON SPECIAL ASSESSMENTS
WHEREAS, the City has experienced a significant expenditure of
property tax revenues for special assessment projects due to the in-
flationary trend of interest rates over the past several years, and
WHEREAS, this expenditure of funds has severely limited the pos-
sible services which can be provided from property tax revenue due to
its diversion to finance special assessment projects, and
WHEREAS, it is necessary to maintain the integrity of the Special
Assessment Debt Service Fund by levying interest charges sufficient to
adequately finance the debt service costs on the City's special assess-
ment bonds, and
WHEREAS, it is deemed desirable to increase the interest rates
for special assessment projects to help reduce this diversion of funds
and finance debt service costs, therefore
BE IT RESOLVED, by the City Council of the City of St. Louis Park
that, in the absence of other instructions by the City Council on spec-
ific projects, for the purpose of preparation of reports, assessment
proceedings, and other administrative and financial matters, the inter-
est rate for special assessment improvement projects is hereby fixed at
one percent (1.0%) above the average interest rates payable on the 1981
bond issues, but not to exceed nine percent (9.0%) per annum.
BE IT FURTHER RESOLVED, that the above interest rate applies to
all improvement projects wherein the special assessment improvement
hearings are held subsequent to April 1, 1981.
Adopted by the City Council April 6, 1981.
Reviewed for administration:
Mayor V
C, 5/22e[le.(7,447
Approved as to form and legality:
City Atte ney