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HomeMy WebLinkAbout93-14 - ADMIN Resolution - City Council - 1993/03/011 f l RESOLUTION NO. 93-14 RESOLUTION ESTABLISHING GUIDELINES FOR USE OF MATURED OR INACTIVE SPECIAL ASSESSMENT DEBT SERVICE FUND ASSETS WHEREAS, The City Council of St. Louis Park has recognized the need of a funding source for construction of or improvements to City buildings and structures and WHEREAS, the City has monies available in matured or inactive special assessment debt service funds to provide for construction of or improvements to City buildings, structures, and capital improvements WHEREAS, the City has obtained a legal opinion authorizing the City to transfer the balance of monies from the inactive accounts(s) and to use the balance for any authorized corporate purpose. NOW THEREFORE BE IT RESOLVED, by the City Council that the following guidelines be created and maintained - 1. The matured, inactive special assessment debt service funds shall be maintained in the official city records and administered by the City Manager in accordance with the following provisions. All surplus moneys in each separate Special Assessment Debt Service Fund which remain after all debt service costs have been paid shall be subject to the following guidelines. In addition, the following shall be deposited in this fund: (a) Investment earnings generated by the moneys in the Fund, and (b) Any other moneys appropriated by the Council or donated for the purposes of the Fund. 2. The principal of the Fund shall consist of all assets of the Special Assessment Debt Service Fund which remain after all debt service costs have been paid, and other moneys appropriated or donated to the Fund. In addition, the principal shall be increased annually by an amount equal to ten percent of the investment earnings generated by the Fund in each year. The remaining investment earnings shall not accrue to the principal and shall forever be treated as investment earnings available for expenditure in accordance with this section. 3. Purpose of Fund. This Fund shall be used solely to pay the capital costs of projects of general benefit to the City of St. Louis Park through transfers to funds incurring the capital project costs. 4. Expenditure Limitations. Expenditures may be made from principal, but must be structured as a loan to repay the principal, and no further expenditures of any kind may be made from the Fund until investment earnings and/or loan repayments have re- established the principal at an amount equal to that existing before the principal loan expenditures plus ten percent of the investment earnings that would have been earned per year if the principal had not been reduced. 5. Funding Preference. Expenditures from the Fund that may be granted for competing projects shall use the following order of preference: (a) First Priority: Projects which can be funded within the amount of the available investment earnings. (b) Second Priority: Projects requiring expenditures from principal funds which have the capacity to repay the principal amount borrowed.' (c) Third Priority: Projects requiring expenditures from principal funds which have no reasonable funding source other than City bond proceeds, are non -revenue producing, require significant funding, and will provide an otherwise unattainable community benefit. 6. Funding Procedure. Expenditures from the Fund may be made only after compliance with the following procedure: (a) The projects to be funded must have been included in the City's formally -adopted capital improvement program. (b) The City Council must hold a public hearing on whether the proposed projects should be funded. Notice specifying the date, time'and place of the hearing, the projects to be -funded,- and the amount of funding must be published at least fifteen days before the hearing in the City's official newspaper. In addition, efforts shall be made to give notice to the community through other reasonable means, such as press releases, cable television and other City publications. (c) The City Council must make the following project findings which shall be incorporated into an adopted resolution: (1) The project has sufficient community -wide benefit as determined by a review of its intended users, the degree to which it addresses a community -wide need or problem, and its consistency with other city goals, programs or policies. (2) The project to be funded could not occur but for the use of the matured special assessment debt service fund assets. (3) The matured special assessment debt service fund assets are not replacing funding from another previously programmed or available source. (4) The project has been included in the City's formally - approved capital improvement program. (5) If principal is used, the project has the funding source(s) with potential to reasonably repay the funds. 1 (6) An estimate of the ongoing annual operating and maintenance costs resulting from the capital project has been made and the source(s) for paying such costs identified. (d) If any of the findings in Section 6. (c) cannot be made and the project meets the expenditure limitations imposed in Section 4., expenditures may be made from the Fund only after the affirmative vote of at least five Council members. 7. Administrative Expenditures. The limitations imposed in the sections above shall not apply to reasonable expenses necessary for the administration of the Fund. 8. Amendments. No amendments may be made to Section 4 except upon the affirmative vote of at least six members of the Council. No other amendments to the Fund guidelines may be made except upon the affirmative vote of at least five members of the Council. Attest: City C e k Adopted y the City Council March 1, 1993 ii, U./. Maor i Reck. for administration: Approved as to form and execution: SwAu,cc`ktet. -5-diviA&) City Attorney City Manager