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league of minnesota cities <br /> <br />March 3, 1980 <br /> <br />TO: <br /> <br />FROM: <br /> <br />RE: <br /> <br />Mayors, Managers, Administrators and Clerks <br /> <br />Arlin Waelti, Legislative Representative <br /> <br />Municipal Bond Interest Rate Bill <br /> <br />THE MUNICIPAL BOND MARKET IS SHUT DOWN IN MINNESOTA. Due to escalating interest rates, <br />municipal general obligation and municipal revenue bonds, both subject to a seven per- <br />cent interest limitation, are not salable in Minnesota. <br /> <br />The League of Cities municipal bond interest rate bill was introduced.last week and:is <br />recorded as House File 2214 and Senate File 2227. SENATOR MARV HANSON, Hallock is the <br />chief author in the Senate and REP. WILLIAM SCHREIBER, Brooklyn Park, is the chief <br />author in the House. This bill is considered to be a priority item and will have <br />preference on the House Tax Committee hearing agenda. PLEASE CALL YOUR LEGISLATOR <br />IMMEDIATELY AND ASK THEM TO SUPPORT THE HANSON-SCHREIBER MUNICIPAL BOND INTEREST RATE <br />BILL. The authors on the bill that your legislators should be supporting are: <br /> <br />Senate House <br /> <br />SEN2.TOR HANSON, Chief Author <br />Senator Steve Keefe, Minneapolis <br />Senator Doug Johnson, Cook <br />Senator John Keefe, Hopkins <br />Senator Ron Sieloff, St. Paul <br /> <br />REP. SCHREIBER, Chief Author <br />Rep. Harry "Tex" Sieben, Hastings <br />Rep. Jim Casserly, Minneapolis <br />Rep. Carl Johnson, St. Peter <br />Rep. Terry Dempsey, New Ulm <br /> <br />The bill covers the five basic areas summarized below. A more detailed explanation of <br />the provisions anJ their underlying rationale will be explained in next week's League <br />Segislative Bulletin. The areas covered include (1) raising the allowable bond interest <br />rates, (2) increasing the dollar limitation on negotiated issues, (3) raising the <br />permissible assessment interest rate for special assessments, (4)raising the allowable <br />interest rate on debt instruments, including tax anticipation certificates, and (5) <br />providing a revision to the present limitations in July, 1981 to allow legislators to <br />study the issue more thoroughly in the. interim to assure that the above provisions are <br />appropriate in view of the present market conditions. <br /> <br /> AW:cmt <br /> 3/3/80 <br /> <br />s~o© I, an~]ver' bmildin~, 4.~0 cedar street, saint paul, minnesota 55101 <br /> <br />[612] 2~!2-2881 <br /> <br /> <br />