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Motion by Councilm6~ber Reimann and seconded by Mayor Hei~man to introduce <br />Ordinance #86-5 establishing the West Drainage Storm Sewer Taxing District. <br /> <br />Motion carried. Voting Yes: Mayor Heitman, Councilmembers Sorteberg, Cox and <br />Reimann. Voting No: None. Absent: Councilmember Schlueter. <br /> <br />Mr. Hartley stated that House Rule 3838 deals with the authority of cities to <br />issue tax exempt bonds and Congress has been changing that rule almost daily by <br />their proposed legislation. Because this legislation has certain effective <br />dates the bond market has almost halted issuance of tax exempt bonds and <br />Ramsey's bond counsel and financial advisors will only allow for very <br />specialized types of bonds. Recently, Congress proposed legislation with an <br />effective date of September, 1986 and Ramsey has until then to sell tax <br />increment bonds. If Ramsey intends to use tax increment bonds to assist with <br />improvements in the Industrial area, the process needs to begin now. Council <br />does have the authority to cease the project up until the bidding process. <br />project is not to be paid for through tax increment funds but through special <br />assessments. ~he purpose of the tax increment financing is to be able to defer <br />those special assessments so properties can be developed. <br /> <br />Councilmember Cox stated that he doesn't like the idea of taking tax increments <br />from one district to develop another district that will compete with the <br />district that paid for their development. <br /> <br />Mr. Hartley replied that he believes if the City acts in good faith and tries <br />to develop a uniform application of these funds, those kinds of accusations can <br />be avoided. <br /> <br />Mr. Raatikka pointed out that the new project area being developed with tax <br />increment will be assessed 100% just as the area from which the tax increments <br />came from is being assessed. <br /> <br />Motion by Councilmember Reimann and seconded by Councilmember Cox to adopt <br />Resolution ~86-57 accepting the feasibility report for storm sewer and <br />utilities for the City's Industrial Area and calling for a public hearing at <br />7:30 p.m. on April 22, 1986. (Please refer to resolution file for Resolution <br />~86-57). <br /> <br />Motion carried. Voting Yes: Mayor Heitman, Councilmembers Sorteberg, Cox and <br />Reimann. Voting No: None. Absent: Councilmember Schlueter. <br /> <br />Motion by Councilmember Reimann and seconded by Councilmember Sorteberg to <br />adopt Resolution #86-58 setting a public hearing date of April 15, 1986 at 7:30 <br />p.m. to discuss establishment of the South-Central Drainage Taxing District and <br />introduced Ordinance #86-6 establishing South-Central Drainage Taxing District. <br /> <br />Motion carried. Voting Yes: Mayor Heitman, Councilmembers Sorteberg, Cox and <br /> March 25, 1986 <br /> <br />Page 11 of 15 <br /> <br /> <br />