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City ~ <br /> PAver <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br /> MEMORANDUM <br /> <br />Mayor and City Council <br /> <br />Lori Johnson, Finance Director <br /> <br />April 14, 2003 <br /> <br />2003 Pavement Rehabilitation Improvement Project <br /> <br />Item # 6.2. <br /> <br />The House of Representatives has proposed in House File No. 751 a change to levy limits that <br />severely impacts bonded indebtedness levies. In the past, bond levies have been considered "special <br />levies" which are exempt from the levy limit. The proposal currently being considered by the <br />Legislature would wrap bond levies into the city's limited levy. Attached is a memo from the <br />Minnesota Institute of Public Finance to the Minnesota House of Representatives that provides a <br />more in depth analysis of the proposed legislation. <br /> <br />Until the Legislature acts on HF 751 or approves a levy limit bill, the city should not proceed with <br />any bonding projects that require a tax levy. The 2003 pavement rehabilitation project is one such <br />project. As you may recall, this project is only partially funded by special assessments and other non- <br />tax funds and relies on a tax levy for the balance. At this time, staff is suggesting that the City <br />Council proceed with requesting bids (with a 90 day award clause) and even holding a special <br />assessment hearing, but not awarding bids or adopting the final assessment roll until the Legislature <br />has adopted a levy limit bill. This should still leave enough time for the project to be completed this <br />year. However, if HF 751 does become law, the city may need to identify alternative funding. <br /> <br />S: ~COUN CIL~Lori\pavcmentlewlimits. doc <br /> <br /> <br />