79-031 RES RESOLUTION 79-31
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RESOLUTION DESIGNATING THE METHOD OF
REPAYMENT OF A GENERAL FUND BUDGET DEFICIT
WHEREAS, prior to the consolidation of the old City of Elk River and
the old Elk River Township, the old City of Elk River had ac-
cumulated a deficit in the general fund by allowing expendi-
tures to exceed revenues for a period of years; and,
WHEREAS, the Minnesota Municipal Board Consolidation Order states that
all debts, with the exception of a Fire Station G.O. bond,
incurred previous to the effective date of the consolidation
of the old Elk River Township and the old City of Elk River
must be borne by the residents within the boundaries of pre-
vious respective government entities; and,
WHEREAS, the City Council, elected to office effective January 1, 1978,
as a requirement and a result of the Municipal Board Consoli-
dation Order, has recognized that a budget deficit exists in
the general fund as a result of debt accumulated by the old
City of Elk River; and,
WHEREAS, it is the expressed intention of the City Council of the City
of Elk River to repay the budget deficit in the most expedient
and equitable manner for residents in the old City of Elk River.
• NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River
that the general fund budget deficit of $144,509.00 as of 12/31/78
be repaid by an annual general fund property tax levy of a mini-
mum of $30,000.00 on the old City of Elk River until such time
as the budget deficit has been eliminated,with the intention of
increasing revenue generated by said levy annually by using a
constant mill rate of approximately 3.8 mills so that the bud-
get deficit is eliminated as quickly as is practical.
Adopted this 4th day of September, 1979, by the Elk River City Council.
'Trani( Madsen, Mayor
ATTEST:
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* Ro•ert C. i;.aug ,
City Administrator/Clerk
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