HomeMy WebLinkAbout81-102 CITY OF LAICEVIL~,E
RESOLUTION
Date December. 7, 1981 Resolution No, 81-102
Motion by Zaun Seconded. by Nelson
RESOLUTION PRESENTING THE LAKEVILLE. CITY. COUNCIL°S POSITION
REGARDING STATE STATUTORY LIMITS ON THE MAXI~`~"UM
PERMITTED INTEREST RATE ON MUNICIPAL BONDS SUNS;Em
PROVISIONS REQUIRING A REDUCTION ICI THE D~lA~ITjIiTM
PERMIT~'ED RATE ON ;DECEMBER 31, 1982
WHEREAS, the 1980 legislature enacted a law setting a 12~
maximum permitted interest rate on municipal bonde throtx~h December 1,
1982; and
WHEREAS, the 1980 legislature enacted a law that wi11 require
the maximum permitted rate to be reduced to 9o after December 31, 1982; and
WHEREAS, the .maximum limits and sunset ~?rovision cause uncertainty
for the effective planning and marketing of municipal bonds and the
financing of City. improvements; and
WHEREAS, studies have indicated. no discernable affect on interest
rates in other areas .and jurisdictions where no state imposed limits
ex1St; and
h~IEREAS, the current limits impose restrictions or even eliminate'
local elected. officials :from making improvements that .may be desired by
their constituents.
NOW., THEREFORE, BE IT RESOLVED that the Lakeville City, Council
requests. the state legislature and Governor-:
1. Eliminate the imposing of maximum. permitted interest rate
limits on municipal bonds.
2. Requests the League of_ Minnesota Cities to deve~.op appropriate
legislation which addresses these problems and the removal
of the maximum. permitted interest rate limits.
APPROVED AID ADOPTED by the City Counci of the City of Lakeville,
Minnesota, this 7th day of Decembers 1981...
CITY OF LAKEVILLE
BY:
Ro ert Jens favor
.ATTEST:
atrick E. McGarvev, City C k