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Bonds by Referendum <br />When residents approve bonding authority through a referendum, the city <br />benefits by the lowest available interest rate, an option of a longer repayment <br />term of up to 30 year O's well as the increased transparency. The bonds are <br />counted against a city's net debt limit and the levy to support them is outside of <br />typical legislated levy limits. Property taxes are an authorized means of support <br />for General Obligation Bonds, but do not have to be used if alternative revenue <br />sources are available. For example, rental revenues or local sales tax can be used <br />to pay general obligation bonds and offset some or all of the property taxes that <br />would otherwise be required. <br />Local Sales Tax Option <br />Minnesota Statutes 297A.99 provides the authority to levy a local sales tax <br />with special legislation of a dedicated tax. The statute requires that a resolution <br />also be passed by the jurisdiction including, at minimum, information on the <br />proposed tax rate, how the revenues will be used,*><the total revenue that will <br />be raised before the tax expires and the estimated length of time the tax will be in <br />effect. Once legal authority has been granted, an election must be held prior to a <br />jurisdiction actually levying the sales tax. The election will permit the use of the <br />sales tax for specific capital improvements. <br />Liquor Store Revenue <br />The City of Elk River may utilize up to 45% of operating income less budgeted <br />transfers from its municipal liquor stores to fund a Park Improvement Fund. <br />The Park Improvement Fund will be used for further build -out of our current <br />parks, replacement and maintenance of capital assets, and the beautification of <br />city parks. <br />Franchise Fees <br />Franchise fees are a charge listed on the monthly bill that customers receive from <br />a utility, such as natural gas, electricity or cable. This can be a flat amount each <br />month or a percentage of the monthly bill. A franchise fee can be implemented <br />with an ordinance which must be approved by the City Council. The City of Elk <br />River currently uses franchise fees for the pavement management program. <br />I <br />................................................................................ ............................... ................. <br />Chapter 6: Implementation 80 <br />