06-27-2016 Council Work Session Packet

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RELEVANT LINKS: C. Culture -recreation Document all expenditures for city organized cultural and recreational activities. Examples include city expenditures for libraries, lifeguards, community centers, senior citizen centers, park supervision, park lighting and trails. Minn. Stat. § 475.755. Cities may budget for the use of certificates of indebtedness in a variety of Minn. stat. § 475.61. circumstances. If the income of a city is reasonably expected to be reduced Handbook Chapter 24. below the amount anticipated in its budget when the final property tax levy was certified, and those receipts are insufficient to meet the expenses incurred or to be incurred during the fiscal year, a city can issue certificates of indebtedness to mature within two years or less from the end of that fiscal year. The certificates must be repaid by a levy that, according to the Department of Revenue, is not subject to or included in a city's levy limit (if any levy limits are in place). The maximum amount the certificates may be issued for in a fiscal year is the expected reduction and the costs of issuance. Minn. Stat. §475.58, subd. I D. Conservation of natural resources 1(11). Minn. Stat. § 275.70, subd. 5 This category covers all expenditures for the conservation and development (2)- of natural resources, for example shade tree programs and the staff time Minn. Stat. §475.61. taken to provide such programs. I E. Debt service M::m Stat. § 471.70. Cities have no authority to borrow money from banks or financial Office of the State Auditor: Report ofoutsta,iding institutions. Instead, cities issue debt, or bonds, to finance public (Excel I infrastructure improvements. Each year, councils and staff must keep track spreaadshesheet format or Adobe spreadsheet Acrobat form). I of the amount of debt issued, and payments of bond principal, interest and Minn. stat. § 475.755. all associated costs. Cities must also document costs of issuing bonds and M:nn. Stat. § 475,754. Minn. Stat. § 4:2.301. payments to fiscal agents working with a city on bonds in this category. Minn. Stat. § 410.32. Minn. Stat. § 475.755. Cities may budget for the use of certificates of indebtedness in a variety of Minn. stat. § 475.61. circumstances. If the income of a city is reasonably expected to be reduced Handbook Chapter 24. below the amount anticipated in its budget when the final property tax levy was certified, and those receipts are insufficient to meet the expenses incurred or to be incurred during the fiscal year, a city can issue certificates of indebtedness to mature within two years or less from the end of that fiscal year. The certificates must be repaid by a levy that, according to the Department of Revenue, is not subject to or included in a city's levy limit (if any levy limits are in place). The maximum amount the certificates may be issued for in a fiscal year is the expected reduction and the costs of issuance. Minn. Stat. §475.58, subd. I Cities may issue short-term certificates of indebtedness to make up for an 1(11). Minn. Stat. § 275.70, subd. 5 expected reduction in revenue from the amount the city was scheduled to (2)- receive when it certified and budgeted for its levy. Minn. Stat. §475.61. Min::. stat. § 412.301. Cities may issue certificates of indebtedness for capital equipment. These Minn. Stat. § 410.32. Handbook chaAter24, certificates are general obligations requiring the 105 percent over -levy and are subject to the debt limit, but none of the other provisions of bonding law applies. A reverse referendum procedure is contained in the statute if the amount of the certificates exceeds 0.025 percent (one-quarter of 1 percent) of the estimated market value of taxable property in the city. League of Minnesota Cities Handbook for Minnesota Cities 1011512015 Municipal Budgeting Chapter 211 Page 21