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league of minnesota cities <br /> <br />April 23, 1980 <br /> <br />TO: Mayors, Managers and Clerks <br /> <br />F~',(.".'~'q: ~)on Slater, Executive DirectdCZ~_) <br /> <br />RE: <br /> <br />Raising of Bond Interest Rates <br /> <br />Today, April 23, Governor Quie signed the 1980 Omnibus Tax Bill which included legislation <br />raising the allowable interest rate on municipal general obligation and revenue bonds from <br />7% to 12%, effective the day after enactment. <br /> <br />Included within the municipal interest rate provisions are the following: <br /> <br />The interest rate on special assessments pledged to the payment of bonds may be <br />1% above the maximum interest rate allowable on the bonds. <br /> <br />The allowable amount for negotiable sale Of bonds is raised from $100,000 to <br />$2o0,o0o. <br /> <br />The 12% limitation on municipal bonds will be reduced to 9% on January l, 1983 <br />with a 9% limitation being imposed on industrial revenue bonds (presently <br />without limitation) as of the same date. <br /> <br />Other debt instruments, including tax anticipation certificates are included <br />within adjusted interest rate limitations. <br /> <br />An interim study on the entire bonding issue is expected to be conducted by the <br />Legislature prior to the 1981 legislative session... <br /> <br />DAS: cmt <br />4/23/80 /~_~.v ~_.~ <br /> <br />300 hanover building, 480 cedar street, saint paul, minnesota 55101 <br /> <br />(812) 222-288 <br /> <br /> <br />