04/15/86 - Laserfiche WebLink

Home

. street improvements and are now receiving another assessment for sealocating maintenance. Once a storm sewer system is created, will the properties in the district be assessed again for maintenance of it. Mr. Hartley replied that the law enabling the establishment of storm sewer taxing districts says that you can construct and maintain storm drainage systems. Major maintenance can be financed through the taxing district. If the City provides a service, there will be a cost and there will be an ongoing cost. Mr. Hartley referred to Commissioner Vevea's earlier comment regarding tax increment financing and stated that there is current and proposed legislation that allows establishing tax increment districts to pay for improvements. What we have today and until September of 1986 is that you cannot sell or borrow money and pledge tax increments for the repayment of that money if you benefit an individual property or an individual area differently than other areas. The kind of legislation being proposed says that if you ever borrowed money in the past with a tax exempt status to it, those bonds would not be valid if the new law being established is abused. This new law (House Rule 3838) has not been adopted yet but it determines exactly what we can do when it comes to financing with tax exempt bonds because of the retroactive impact of it. One of the ways in which we can assist the properties in the Industrial area for sewer and water improvements is to provide a 10 year assessment deferment to undeveloped properties and properties not requiring the service; payment of the assessment will be required at the time of connection or at the end of the 10 year period. . Commissioner Wagner stated that according to this proposed legislation, it would seem that a storm sewer system to benefit an entire area seems to be more appropriate than the use of tax increment funds currently being done in Ramsey. Ramsey is now accumulating tax increment funds and very limited in ways to spend it. Mr. Hartley stated that Staff is research creative ways to spend those tax increment funds that will be within the law. The City has until September, 1986 to sell tax exempt bonds to provide for deferred assessments on sewer and water improvements in the Industrial area. Commissioner Wagner stated that deferred assessments doesn't seem to be an appropriate use of tax increment because it benefits a select few. Mr. Hartley stated that Ramsey's bonding attorney says that using tax increments for deferred assessments will pass. Chairman Greenberg inquired if it would be appropriate for EDC to take a position on the establishment of storm sewer taxing districts. Mr. Hartley replied that an EDC position statement would be appropriate after the public hearing has been conducted. Chairman Greenberg dismissed himself from the meeting at 9:10 a.m. Commissioner Vevea inquired if it wouldn't be advantageous to explore the possibility of installing sewer and water at the same time the ground is dug up for storm sewer installation. . April 15, 1986 Page 4 of 5