Item 5.1 Resolution introduced by Council Member DunlapCity of Otsego
County of Wright
State of Minnesota
Resolution No:
Placing the Bond for the New Fire Station on
the November Ballot
Whereas, the City of Otsego is currently planning to build a new fire
station at an estimated cost of $21MM and does not have the funds
necessary to cover this expense; and
Whereas, cities have the option under Minnesota law of taking on debt
in the form of a General Obligation Capital Improvement Plan (CIP)
Bond, or an Economic Development Authority (EDA) Lease Revenue
Bond in order to fund projects of this size; and
Whereas, Minnesota state law provides a mechanism for residents to
challenge increases in their property taxes from a CIP bond known
as a "reverse referendum"; and
Whereas, the City of Otsego recognizes that an EDA Lease Revenue
Bond presents more risk, is more expensive, and does not allow the
citizens of Otsego to provide a petition to initiate a reverse
referendum; and
Whereas, the City of Otsego respects the hard-earned money of its
citizens, and seeks to protect their rights and their voice in all
matters; and
Whereas, a CIP Bond is likely to initiate a reverse referendum with the
citizens of Otsego which would either cancel the project for one year,
or place the issue on the ballot.
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Now, therefore, be it resolved by the City Council of the City of
Otsego, Minnesota:
1. The City Council will not seek to fund the new fire station using an
EDA bond mechanism.
2. The City Administrator is hereby authorized and directed to place
the issue of bond funding for the new fire station on the November
2024 ballot with specific language to be determined at a later time
in accordance with all applicable State laws.
Adopted bytheOtsegoCityCouncilthis dayof
Motion By:
Seconded By:
In Favor:
Opposed:
CITY OF OTSEGO
Jessica L. Stockamp, Mayor
ATTEST:
Audra Etzel, City Clerk
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