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RESOLUTION 79-31 0 RESOLUTION DESIGNATING THE METHOD OF REPAYMENT OF A GENERAL FUND BUDGET DEFICIT WHEREAS, prior to the consolidation of the old City of Elk River and the old Elk River Township, the old City of Elk River had ac- cumulated a deficit in the general fund by allowing expendi- tures to exceed revenues for a period of years; and, WHEREAS, the Minnesota Municipal Board Consolidation Order states that all debts, with the exception of a Fire Station G.O. bond, incurred previous to the effective date of the consolidation of the old Elk River Township and the old City of Elk River must be borne by the residents within the boundaries of pre- vious respective government entities; and, WHEREAS, the City Council, elected to office effective January 1, 1978, as a requirement and a result of the Municipal Board Consoli- dation Order, has recognized that a budget deficit exists in the general fund as a result of debt accumulated by the old City of Elk River; and, WHEREAS, it is the expressed intention of the City Council of the City of Elk River to repay the budget deficit in the most expedient and equitable manner for residents in the old City of Elk River. • NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River that the general fund budget deficit of $144,509.00 as of 12/31/78 be repaid by an annual general fund property tax levy of a mini- mum of $30,000.00 on the old City of Elk River until such time as the budget deficit has been eliminated,with the intention of increasing revenue generated by said levy annually by using a constant mill rate of approximately 3.8 mills so that the bud- get deficit is eliminated as quickly as is practical. Adopted this 4th day of September, 1979, by the Elk River City Council. 'Trani( Madsen, Mayor ATTEST: — C —At , ,...„016,0‘,.„ 0; * Ro•ert C. i;.aug , City Administrator/Clerk I .