CHAPTER 34: TAX; FINANCE
Section
34.01 Revolving loan fund
34.02 Permanent improvement revolving fund
34.03 Economic Development Authority
34.04 Deferral of special assessments
§ 34.01 REVOLVING LOAN FUND.
(A) Purpose. This section establishes a revolving loan fund for the City of Madelia in an effort to promote the growth and development of the city's economic climate, and in accordance with the following purposes:
(1) To provide loans for new and existing business entities that create new jobs or retain old jobs for the community;
(2) To assist new or existing commercial and retail businesses to improve or expand their operations;
(3) To assist new or established manufacturing and industrial businesses to become established or to expand;
(4) To provide funds for economic development that would be used to assist in obtaining other funds, such as Small Business Administration loans, federal or state grants; and
(5) To provide assistance for downtown revitalization.
(B) Procedure. All applications for revolving loan funds shall be submitted to the office of the Madelia City Administrator for review by the Madelia Economic Development Authority (EDA). The EDA shall establish written revolving loan fund and application criteria, which criteria shall be approved by the Madelia City Council prior to implementation. The EDA shall review each application and make recommendations to the Madelia City Council in making loans to applicants out of the revolving loan fund.
(C) Loan guidelines. All loans prior to approval shall be reviewed by the EDA and shall be subject to the following guidelines:
(1) All loans shall carry a negotiated interest rate to provide an incentive to locate and/or develop or improve a business in the City of Madelia; and
(2) The City Administrator shall be the servicing agent for all loans made out of the revolving loan fund. The Assistant City Administrator shall disburse loan funds and record loan payments, keep accurate records of outstanding balances, and deposit payments to designated accounts.
(D) Discretion of City Council. It is understood that final approval for the disbursement of revolving loan funds is strictly within the discretion of City Council.
(Ord. 1.81, passed 2-23-1987)
§ 34.02 PERMANENT IMPROVEMENT REVOLVING FUND
(A) Revolving fund created. It is hereby found, determined and declared that it is necessary and expedient to create, and there is hereby created a permanent improvement revolving fund of the city, to be held and administered by the Assistant City Administrator separate and apart from all other funds of the city, for the purpose of financing local improvement for which assessments are to be levied.
(B) Source of funds. The funds shall be a permanent fund of the city, and the moneys necessary for the maintenance thereof shall be provided by taxation, by the appropriation of available moneys from other funds of the city, or by the issuance and sale of general obligation permanent improvement revolving fund bonds of the city, as determined by the Council from time to time.
(C) Use of funds. The moneys in the fund shall be used only as directed by resolution of the City Council, and solely for the purpose of advancing to local improvement funds the cost of improvements for which assessments are to be levied, and all such moneys so furnished shall be restored when and as sufficient moneys are received in the improvement funds, with interest at a rate of not less than 3% per annum during the time for which the moneys have been so furnished. Further, the interest rate shall be set by the City Council
(D) Investment of funds. When and as there shall be moneys in the fund not immediately needed for local improvements, the moneys may be invested under the direction of the Council in any securities authorized for the investment of municipal sinking funds under the provisions of state law.
(Ord. 9.10, passed 9-20-1948)
§ 34.03 ECONOMIC DEVELOPMENT AUTHORITY.
(A) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
AUTHORITY. The Madelia Economic Development Authority.
CITY. The City of Madelia, Minnesota.
COUNCIL. The duly elected governing body of the city.
ENABLING RESOLUTION. The resolution of the Council establishing the Madelia Economic Development Authority pursuant to the Act, and all amendments thereto.
THE ACT. Minn. Stat. §§ 469.090 through 469.108, as they may be amended from time to time.
(B) Establishment. There is hereby created in the City an Economic Development Authority which, subject to the provisions of the enabling resolution, shall have all of the powers, duties and responsibilities of an Economic Development Authority created pursuant to Minn. Stat. §§ 469.090 through 469.108, as they may be amended from time to time. It shall be the role and responsibility of the Economic Development Authority to carry out economic and industrial development and redevelopment within the city in accordance with the general policies as may from time to time be established by the Council and pursuant to the by-laws as may be adopted by the authority with approval of the Council.
(C) Name. The Economic Development Authority created by the enabling resolution shall be known as the Madelia Economic Development Authority.
(D) Members. The Authority shall be comprised of all five members of the Madelia City Council who shall serve as Commissioners.
(E) Administration. The administration of the Authority shall be as determined in the by-laws of the Authority, which by-laws to be effective shall require approval of the Council.
(F) Powers. The Authority shall have such powers as may be mandated by the Act and other powers as may be permitted by the Act and conferred by the Council.
(Ord. 1.82, passed 7-25-1988)
§ 34.04 DEFERRAL OF SPECIAL ASSESSMENTS.
(A) Providing for deferral of assessments. The City Council of the City of Madelia may in its discretion defer the payment of any special assessment heretofore or hereafter made for local improvements constructed by the city within the City of Madelia when in its discretion it determines by a majority vote of the Council that:
(1) The property upon which the assessment is to be levied is homestead property;
(2) One or more of the owners of property is either 65 years of age or older, or retired by virtue of a permanent and total disability; and
(3) Payment of the assessment would be a hardship for the owner of the property.
(B) Application for deferral of assessments. Applications for deferral of special assessments shall be made on a form available at City Hall which has been prescribed by the Watonwan County Auditor. In addition to the form, the applicant shall furnish the City Council of the City of Madelia a statement signed under oath setting forth the applicant's income at the time of the making of the application. In the event the City Council grants the deferment, the City Administrator shall notify the Watonwan County Auditor who shall record a notice of the deferment with the Watonwan County Recorder setting forth the amount of the assessment and applicable interest rate thereon.
(C) Renewal. The deferral shall exist only as long as the applicant continues to qualify for the deferral, but not to exceed five years. A deferral may be renewed for additional five-year terms upon the filing of a similar application prior to the end of the previous five-year term. The procedure for renewal shall be the same as for the initial application.
(D) Hardship defined.
(1) A hardship shall be deemed to prima facie exist when:
(a) The total adjusted gross income of all members of the household for which application is sought does not exceed $15,000;
(b) The average annual payment due for all assessments levied against the property exceeds 1% of the applicant household's adjusted gross income for that year; and
(c) The total special assessment to be deferred exceeds $500.
(2) Notwithstanding the foregoing provisions, the City Council may consider exceptional and unusual circumstances pertaining to an applicant who is not covered by the above standards, but any determination shall be made in a nondiscriminatory manner and shall not give the applicant an unreasonable preference or advantage over other applicants.
(E) Interest rate. Interest on the deferred special assessment shall accrue during the deferral period at the rate established by the Madelia City Council in the resolution adopting the assessment roll. The City Council shall require current payment of interest as a condition of deferral.
(F) Termination of right of deferred payment.
(1) It shall be the duty of the applicant or his or her heirs to notify the Madelia City Administrator of any event that may affect eligibility for deferment. The option to defer the payment of special assessments shall terminate and all amounts accumulated plus applicable interest shall become due upon the occurrence of any of the following events:
(a) The death of the owner, provided that the spouse is otherwise not eligible for the benefits hereunder;
(b) The sale, transfer or subdivision of the property or any part thereof;
(c) If the property should for any reason lose its homestead status; or
(d) If for any reason, the City Council determines that there would be no hardship to require immediate or partial payment.
(2) At the time of the termination of the deferral, the City Council may in its discretion provide for payment of the deferred sum in installment payments in accordance with the terms of the original assessment.
(Ord. 9.31, passed 12-20-1990)
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