City Council Resolution 1980-09RES~UTION ADOPTING GUIDELINES FOR B013~US
ISSUED UNDER THE AUTHORITY OF THE
P1UNICIPAL INDUSTRIAL DEVELOPMENT ACT
WHEREAS, Minnesota State Statutes, Chapter 474, Municipal Industrial
Development Act, authorizes municipalities to issue Industrial/Commercial
Development Revenue Bonds; and
WHEREAS, the intent of the Municipal Industrial Development Act is to promote,
attract, encourage and develop economically sound industry and commerce; and
WHEREAS, the City of Monticello, Minnesota desires to preserve and expand
the quality of commercial and industrial development in the community and make
financing available under the Municipal Industrial Development Act; and
WHEREAS, the City of Monticello, Minnesota desires to establish minimum
guidelines to insure, to a reasonable degree, that the intent of the Municipal
Industrial Development Act is fulfilled;
NOW THEREFORE, BE IT RESOLVED BY THE CITY OF MONTICELLO, MINNESOTA, to
establish the following guidelines:
A. Copy of the last five certified annual audits, if available, should
be provided. If a company has not previously had a certified audit,
a copy of the unaudited financial statements should be made available.
B. Realistic financial forecast for the next three years prepared by a
public accountant.
C. Ratio of long term debt to equity after issuance of proposed bonds
should not exceed 2-to-1. (This ratio should be 4-to-1 in case of
tax exempt mortgages).
D. Net earnings before taxes and depreciation should cover long term
requirements by 2-to-1, including long term lease commitments that
are not capitalized. (This ratio should be 1.25-to-1 in case of tax
exempt mortgages.
E. An applicant shall supply information requested on the City's appli-
cation form and any other information as required by the City. Appli-
cant to pay costs incurred by the City for consulting legal services,
consulting professional services, publication costs, etc. Deposit
of $500 required at time of application with balance to be returned
or billed and paid before approval is final.
Application for Industrial/Commercial Revenue Bonds shall be considered by
the City Council within three weeks after filing of application and providing
necessary information. Basis for approval shall be the applicant's demonstrated
ability to meet the above-referenced guidelines. However, the City Council of
Monticello reserves the right to reject any application or waive any of the
guidelines referenced above. Such rejection or waiver of criteria shall be
documented in the official Minutes of the City Council.
by
RESOLUTION ADOPTED on a motion by Ken ^laus seconded
Phil White dated April 28, 1980.
VOTING IN FAVOR: Arve Grimsmo, Dan Blonigen, Fran Fair, Ken Maus, Phil White.
OPPOSED: None.
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G ieber City Administrator
(Resolution 4/28/80 #9)