HomeMy WebLinkAbout1981-239 CCR Member Gene Lhotka introduced the following resolution
and moved its adoption:
RESOLUTION NO. 81 -239
RESOLUTION URGING THE ELIMINATION OF STATUTORY INTEREST RATE LIMITATIONS
WHEREAS, the 1980 Minnesota Legislature, in response to urging by many
groups, including the League of Minnesota Cities, raised the maximum permitted
interest rate on bonds issued by Cities from 7% to 12% and special assessments
collected by cities from 8% to 13 and
WHEREAS, said legislation increasing the rate provided that after December
31, 1982, the maximum permitted rate would be reduced to 9% for bonds issued and
10% for special assessments; and
WHEREAS, this sunset provision is creating uncertainty on the part of
both bond issuers and investors on the issuance and purchase of short -term bonds
because both parties are concerned with not knowing whether the short -term obligations
can be refinanced in the future at a rate less than 9 and
WHEREAS, except for this uncertainty, short -term bonds could otherwise
be utilized to reduce the impact of current high interest rates; and
WHEREAS, local governments should be able to decide for themselves whether
a particular interest rate can be afforded:
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL of the City of Brooklyn
Center to urgently request that the Legislature pass legislation which would eliminate
all interest rate limitations currently imposed upon local governments; and
BE IT FURTHER RESOLVED that this resolution be sent to area legislators,
appropriate legislative committees, and the League of Minnesota Cities.
November 23 981 r
Date Mayor
ATTEST: k;'
rk
The motion for the adoption of the foregoing resolution was duly seconded by
member Celia Scott and upon vote being taken thereon, the following
voted in favor thereof: Dean Nyquist, Tony Kuefler, Bill Fignar, Gene Lhotka,
and Celia Scott;
and the following voted against the same: none,
whereupon said resolution was declared duly passed and adopted.