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I <br />I <br /> <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br />i <br />! <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />Chairman Heitman called the meeting back to order at 9:58 p.m. <br /> <br />Case #3: Discussion and Review of Charter Cha~ter 7: <br /> <br />Discussion ensued regarding General Obligation Bonds and Industrial Revenue <br />Bonds. <br /> <br />Commissioner Gamec confirmed to Chairman Heitman that the City can issu~ as <br />much in General Obligations bonds as they want if it is for projects that <br />are 100% assessed out. <br /> <br />Commissioner Bauerkemper stated that it would be possible for one person to <br />petition for General Obligation Bonds for improvements and the bonds would <br />be the responsibility of the entire City. <br /> <br />Commissioner Gamec replied that bonding agents won't let the City do it if <br />there is an indebetedness danger. <br /> <br />Commissioner Lichter stated that GO bonds should be subject to a referendum <br />of the people and Industrial Revenue bonds should be exempt from referendum. <br /> <br />Commissioner Gamec noted that in the next two years there will be a whole new <br />legislation on financing. In the metro area, there will be a strong influx <br />of Metro Council backing and financing. <br /> <br />Commissioner Lichter suggested adding to the last sentence of Section 7.10.01: <br />'with the exception of Industrial Revenue Bonds, which shall not be subjectable <br />to a vote of the people.' <br /> <br />Commissioner Gamec inquired as to how this would affect street projects. <br /> <br />Commissioner Lichter replied that if the project is 100% assessed out, it <br />does not go to a vote of the people. <br /> <br />Commissioner Gamec replied that street projects are with General Obligation <br />bonds and this charter is proposing to subject General Obligations bonds to <br />referendum. GO bonds are less expensive, we would have to hold an election <br />for every little project and it would probably get turned down. <br /> <br />Commissioner Lichter agreed that this could lead to a gray area. <br /> <br />Commissioner Gamec stated that he doesn't think Industrial Revenue bonds can <br />be used for street projects. <br /> <br />Commission conclusion is that this discussion cannot be resolved without further <br />research. <br /> <br />Commissioner Lichter volunteered to contact Mounds View to find out how they <br />handle street projects. <br /> <br />Chairman Heitman requested C~mmissioner Gamec research the possibility of using <br />Industrial Revenue Bonds for street projects. <br /> <br />Chairman Heitman then turned the discussion to Long Term Financial Plans. <br /> <br />Commissioner Game~ stated that after discussions with three people from three <br />different communities, he is no longer in favor of adopting the Long Term <br />Financial Plan b~- ordinance. <br /> <br />CD/November 17, 1983 <br /> Page 4 of 5 <br /> <br /> <br />