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2003-01-27 Agenda~...: MEETING pF THE RICHFIELD CHARTER COMMISSION MONDAY, 27.IANVARY2003 EXECUTIVE CONFERENCE ROOM RICHFIELD CITYHALL 6:30 PM AGENDA Call to Order Roll Call Approval of Minutes Review Charter Concept and Role of the Charter Commission Report of Committees By Law Revision Committee Charter Revision Committee New Business Discussion of possible changes to the Richfield City Charter. Ms. Corrine Thomson, Richfield City Attorney, will be present to present information on proposed. changes to the city charter. This discussion will be in addition to and supplemental to any proposals-brought" to the Commission by the Revision Committee. No vote. will be taken at this meeting. ':'Materials for discussion are provided with this agenda. Other material for discussion wi11 be supplied to Commission members in advance of the meeting if they. are available, before that time. ,Otherwise, the materials will be supplied on the 27tH Questions and comments may be directed to Commission President, John L. Easterwood, 612-869-0509; email captin@att.net Adjournment 'BILL 1VQ. ~-AN ORDINANCE RE'LATINC TO CITY 'GOVERNMENT;.. AMENDING SECTIONS 2.03° AND 3:.0'F{ OF THE RICHFIELD GITI( CHARTER THE CITY OF RICFtFIELD DOES ORDAI-Nr Suction 1. Background; findings; autlority: 1.01. Trte City of ~~tidhfield (City is governed' by.. horns rule. btiarter adopted= pursuant to the constitution: of the State of ~Minneso#a.anc~ Minnesota Statutes, Cl~apt~r~ 4,10 (Act).' 1.02: The Charter Commission of tte City has proposed the-adoption of an Amendment to remove the residency requirement for the= .city manag~r< ancf~ Mas recommended; ta' tlie~ City Council that-#he~ Amendment be-.adopted by City CoLncik ordinanoe§ in tt-~e manner prescribed: by Section 41 p.12, Subdivision ~; of the Act.. Th`e form of the' Amendment> is set ouf in section 2,02: 1.03. Apublic hearing on the Amendment wvas. held an by the City Council. -after two weeks'- published notice• containirtg„ the tent Uf` the- Amendment: as•- required by the Act: The notice contained a br"ref description` of the nature and. scope of- the Ameridri7e`nt. All persons desiring to be' heard with reference; to; the Amendment were heard atthe public .hearing. 1:04: The Council finds and determines that- it is: in the best> interests of tfie City and its::. inhabitants. that the Amendment be adopted:: ~Sectian. 2 Adoption; effective dateL filing_ 2.01. The Amendment as proposed by the Charter Gommissiora is adopted: 2A2. Section 2.03 of the Richfield City Cfiarter is amended to read as follows: section 2.03. Elective Officers. The Coi.inail shall be composed of a Mayor. and four Council Members, all of whom shail_be i-egistered voters. The offices of Mayor and at=large Council Member shall be .filled by election at large.. The offices of the three d.i$ti'ict- Council Members shall be elected ffrorn apportioned- Council :districts in which they reside. The;:Mayor and the "'Council Members shall each be elected to a four-year-term with Mayor and` :~ fhe Council Member at-large in 1994 and each succeed.irag four years and rthe district Council Members elected in 1992 and each succeeding four years. The ;regular term of an office commences ee at the first regUiar or .special. counci# meeting in January ~ next following; the general election: at which balloting for the full term of office occurs. and office ,holders shall serve.. un#il their successors are elected and :qualified. ` A candidate for the office of CAH-223896v1 RCd4S-17 .district Council Member must reside while seeking. election and while serving in office within the district from which he or she is elected. Within two years: after each United. States Census ~ the City Council: shall by ordinance establish. compact: and contiguous districts to be apportioned by population as nearly equal as practicable: The. three Districts shall be Eastern, CentraF and Western .Richfield with dividing lines generally north and south. 2.03 Section 3.01 of the Richfield City. Charter is amended to read as follows: Section 3.01. Council Meetings. rnh^~ •h°. h°Irlinn nf' L'`°r~n^if rri°c}innc~ D4 chic ~ ~im° +R° n°~~ihc = Newly elected: members ofithe CounciP s wily assume their. duties at they first. regular or special meeting of the Council in: January following. a regular ~. municipal election. Thereafter, the Council s wily meet- at s~# the times each month as ebe-pressFibee established by ordinance:, or resolution. The Mayor. or any two members: of the Council may calf special meetings of the Council: upon. at least twelve hours< notice to each member of: the Council. ~sl} The. notice shall must be de ivered personally to each member or be left" at the Member's :usual: place of residence with some - responsible person: °1 ^~°°*~^^°: Meetings; of the Council shall--be are public, except: as otherwise permitted or-required by law., ~^^' ~^~~ ^~~~~°^ s#al} °~ ~^^°^^ *^ Any person. may inspect: the minutes and- records:. #~gereef of the meetings at all reasonable times. 2.04. This: ordinance is effective,ninety (90) days after its publication,. except that if within sixty (60) days after publication a petition requesting a referendum on this ordinance, signed by the number of registered' voters of the City required by the Act is filed with the City Clerk, this ordinancewill not be effective until approved by 51% ofthe voters voting on the question of its adoption at the special election called by the Council for-that purpose: 2.05. On the effective date of the Amendment, the City Clerk is authorized and directed to file copies of the Amendment with the Secretary of State of the State of Minnesota, the Hennepin County Recorder, and the City Clerk's office together with the certificate required by Section 41.0,11 of the Act. Passed by the- City Council of the City of Richfield, Minnesota this day of .2003. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk CAH-223896v1 RC145-17 DISCUSSION DRAFT CHAPTER 5 INITIATIVE. REf=ERENDUM:AND RECALL Section 5.01. 'Powers Reserved by the: Peot~le. The people of Richfield reserve. to themselves. tMe powers. of initiative, referendum and recall, to be exercised;- irr accordance -wi#h; the provisions .of this Charter, NOTE: The only substantiiVe :change- is to add "land use or zoning" ordinances to the list of ordinances for which initiajive and referendum is not available. That is a .codification of the. Court of Appeals decision in IVordmarken v. City of Richfield. 1 reworded the section to make it more. concise and reader-friendly. Section 5.02.. , ,. , NOTE The U:S. Supreme Court ruled in Buckley v. American Constitutional Law Foundation, Inc. j9999) that a prohibition on the use of paid circulators is unconstitutional: The.prohibition on paying for signatures has been moved to section 5.22. Section 5.03. Further 'Regulations. The Council may provide by ordinance such further regulations for the initiative, referendum or recall, not consistent with this Charter, as it deems necessary. {Amended Bill 1982-20) Section 5:=04. Initiation of Measures. Any five residents of the City who are- registered voters may form themselves into a sponsoring committee for the initiafton of a~}~ ,. an> ordinance as permitted by section 5.01 of this Charter. Before circulating any petition- shall the committee must file an affidavit and its proposed petition ° ~~°r~fi°,~ nn n., of +t,°ir with the City Clerk;. The affidavit must state that a committee has CAH-226414v1 j RC145-17 ~d.._must contain, +^~°+h°r 'uii+t, +t,°;r the. names =and addresses as of the- members ^{ °~ ~^" ^^:Y,.,-:y++°° ,and must be signed by -.each member of the:. cornrnittee, whose. signatures must be verified by a :notary- public., fey mall The ':committee rnust,r also- attach a verifed copy of the proposed: ordinance to each of the sigr>~ure papers herein. described; together with the committee members'- names' and addresses. as sponsors #~ereef: Tl1e: ordinance. must: rely#e to only .one subiect whicfY.'is: N©TE.~ This section has been modified to., (1) clarify that the sponsoring` cammi#ee mush be composed of residents of the, Ciiy;~ (2) refer ta'section. 5.01 rather than,re-lisf the types: of ordinances for which; initiative is not available; ~(3): requires: the sponsoring comrr-ittee.-#o submit= an affidavit with their signat~rres (You may .want to consider addingi the form of that affidavit in the charter); ~(4) add an. express requiremenf° thaf the ordinance' must relate to= .only one subject (which court decisions already require); (5) -add a. requirement== that cir~euletors must be- he idents of` the- stafie' of Minnesofa. The "eighth Circuit Court: has <- upheld a simifar residency requirement in Ini#iative & Referendum /nstitutea v.. Jaeger (20p1). ADDED NC~FE: At (east' `two cifies add a 'requirement that the proposed ordinances be reviewed by the .city. atfomey before the committee may circulate the petition. Another requires the city clerk to apprgve the petition- before it can be circulated: I have some concerns about that type of provision and would prefer to discuss the concept with and receive direction from the commission. Section 5.05. Form -of Petition and of. Signature Papers. The petition for the adoption: of any ordinance must consist: of the ordinance, together with all the signature papers and affidavits a attached: ~sf~ A petition: shall is not be complete° unless signed' by a number of registered voters.-equal to at least five percent of the total.: .number: of registered voters a# the time of the last regular .municipal election. Alt the; -signatures need n`ot be on one signature .paper,. but the circulator of every s signature ;,paper sMaN must make an affidavit that- each- signature appended- to the paper: is thee, :genuine signature. of :the .person whose name it purports #o be. Each signature paper sl}all must be in substantially the following form: INITIRTIVE PETITION Proposing an ordinance to 'the Purpose of the Ordinance). A certified a copy l~erete attached. (Stating; Sponsoring Committee of wl~iE# the proposed ordinance is This .ordinance is .sponsored by the following committee of City of Richfield residents who are. registered voters: CAH-226414v1 2 RC145-17 Name 1, 2. 3. Address 4. 5. The undersigned registered voters, understanding the terms.. and nature of the ordinance: attached,. ;petition; the Council for its adoption, or, in lieu thereof, for its submission to the voters #or their approval.. Date Legal. Signature 1. 2. 3. Name ;(print legibly) Address sprint legibly) ( At tqe-°^~' ^{ *"~ ~~~-ef-sic~a~te~es-sha: "° ^^^°^~'°~' *"° The afFdavifi of the circulator must be attached at the end of each signature paper.) NOfE.~ Many of the changes are for clarification or simpler wording. I presumed that by last ""regular election" -what was intended was the last regular municipal election. Thee substantive change was to require a date and the printed name of each signer. The commission may want to consider adding a form fior the circulator affidavit. l also added the headings in ahe form and the instructions to signers. Section 5.06. Flling of Petition. and Action Thereon. All the signature .papers sail must be filed in the office of the City Clerk as one instrument. Within #~FVe-(5~ ten 10 workin ;days after the filing of that petition, the .City Clerk s#~all must:- ascertain by examination, the number of registered voters in the City whose signatures are aprye~ed CAH-226414v1 3 RC145-17 fnstructions to Petition Sinners #herete attached and -whether this number is at least five percent (5%) of the total number of registered- voters at ahe time of the last regular municipal: election. The vatidit~of the:. signatures must- be judc}ed as of the day- the petition was .filed, if the City Clerk finds he .petition is ~eufl~ to be insufficient or irregular,; the City- Glerk: shall must at once notify one or more of the sponsoring; committee. of that fact, certifying-the reasons for the finding: They committee shall thdrr-be~ given thirty (30) days in which to file additional signature papers:. and to .correct: the.petition in alt other particulars. If at the enct of that: period the petition is - found; to be stiA~ insufficient or irregular, °" "°=;led-by the City Clerk: shall file the tition in th'e City Clerk's. office and ~noti each member of the committee.°"~" h° ^^*~~°~' of that fact:e~'~, The final finding of the insufficiency or irregularity of a petition, st~aall does not.prejudice the: filing of a~ new petition,for th'e same purpose,. nor shall does it prevent the Council from referring the ordinance to the voters at the nett. ragular or special. election at its option: NOTE: This section has been modified to give the clerk :10 working. days instead of 5` days- to complete review, of.thee petition. Also,: the charter specifies the date as of which the signatures must be determined to be valid. 1. e., every signer must be a' -~egisterec~- voter and, resident of the city as of thee. date'the petition is submitted: The other changes are for. sirr-pLer wording: Section 5.07: Action. of Council on: Petition. When. the. petition is found to be: sufficient, the City-Clerk ~+all must so certify to the Council at its. next meeting; stating the number of p°*~*s valid. signatures on the. petition and the- percentage.. of the total number of registered voters at the time of the. last regu.lar municipal .election which hey constitut°,~-~„~.~: The Council shall at once read the: ordinance and may--refer it to an appropriate: committee. The committee or Council must hold a public ~s_., hearinct: upon the ordinanc , ' . After the public hearing; but note later than sixty-five.. (65) days after the Ci ~ Clerk> submitted the ordinance to the Council e~~ the. Council: must take final:: action. on the ordinance. If -the- Council fails to pass the proposed ordinance, or passes it in a form different from that set forth in the petition end unsatisfactory to the sponsors, the- proposed ordinance must be submitted by the Council to a vote at the next- regular municipal election, but if the M~Qers-of-t~~g„°~-of number of valid signatures on the petition-is equal- #o at least. fifteen percent- ('l5%) of the total number of registered-voters at the time of the last regular municipal election,. the: Council skiaall must call a special election upon the measure. Such special election ~a~l must- be held not less than #fA} f 50 nor more than #erty-fwe -{~-? sixty-five (65) days fr©m date of final action on the ordinance by the Council or, if there 'has been no finch. action, from a#teF the expiration of sixty=five (65) days from. the date of submissionto the Councif ~•~"°^ +"°r° "^° "°°^ ^° ~^°' ^^~;^^; butif a regular election is to occur within three months, the Council must- submit the ordinance at that election. If the .Council passes the proposed ordinance with amendments and at least four-fifths (4/5) of the sponsoring- committee do not express their dissatisfaction with such amended form by a statement filed with the City Clerk, within ten (10) days of the passage thereof by the Council, the ordinance need not be submitted to the voters. CAH-226414v 1 q RC 145-17 NOTE.• -.Most of the -changes are #o simplify the wording. The deadlines for holding the election have been modified to avoid conflict with state law, which requires -that notice of a special municipal election be given to the county auditor at least 49 days before the election. Section 5.08. Initiative Ballots: The ballots used .when- voting upon arry such proposed ordinance. shall must state the substance of the ordinance. and sf}all must give the voters the opportunity to- vote"- either"-"yes'' or "no" on the question of adoption. if a majority: of the votes on any such ordinance are in favor of it, it becornes an ordinance of the City. Any number of proposed- ordinances- may..:: be voted' upon at he same election, but the voter sk-all~ must be allowed to .vote. for or against each separately. In case of~._inconsistency~ between two initiated" ordinances approved at one elution, the one. approved;. by the: higher percentage of voters- voting on the question shall" ~evail revails to the extenfi of the inconsistency. NOTE:. The changes are for simplification of wording. Section 5.09: Amendment,or Repeal. Any ordinance adopted: by the vote of the people cannot be repealed" or amended= except by the vote of the people. or by the unanimous vote of all members of the: Council. Section 5.1.0. Initiation of Charter Amendments.. Nothing in this Charter shall be construed as in any way affecting the right of the registered.: voters under the constitution and statutes of Minnesota to propose amendments to this Charter. Section 5.11. The Referendum. If prior to the :date when an ordinance takes effect a -petition. signed by qualified registered.. voters of the City equal in number to ten percent (1.0%)';. of the- total= number of registered voters at the time. of the- last regular municipal' election ~ is filed with the City Clerk requesting that ;any such ordinance be repealed or submitted to a vote of the registered voters, the ordinance faereby-fie is:prevented:- firom going,. into operation. All. he signature paces must be filed as one instrument.: The City Clerk must ascertain by examination the sufficiency of the petition within ten:. (10): ...~._!_~~~ J.. ... _~J. ~_._._1"_~.J _._..1'L-_lt__ ~____Il_ .l 1L .l _._______'~_l:_~ 1. 1L_ /'~___.___I .l _l. __-_1 regular. meeting: The Cotancil wall must thereupon reconsider the ordinance °* ~*~,~-he~"~:` °^, !'°r .,,°°+;^^ and-by majority. vote either repeal or affirm the ordinance as passed. "If "the ordinance is afFrmed, the Councikswall must immediately order a special election t0 be -`held thereon, or submit the ordinance at the next regular municipal election, pending which the ordinance. ~"°" .°~<,;~ rernairYS suspended. If a majority of the voters voting on the ordinance "is opposed to the. ordinance, it shall does not become effective; but if a majority of the: voters favor the .ordinance, it takes: effect immediately or on the date therein specifed. NOTE.• This section has- been changed to simplify wording. Relevant requirements from 5.06-have been incorporated.. Section b:.12. Referendum Petition. The requirements laid down in Sections 5.04 and 5.05 above as to the formation of committees, the form of petitions and signature CAH-226414v1 RC145-17 papers, and residency requirements for committee members "and- circulators, for the initiation. of ordinances shall apply to the. referendum but with such changes as may be necessary. A referendum petition shall read substantially as follows: R'EFEREND-UM PETITi:Q,N Proposing the.. repeal. of an ordinance to (stating the purpose. ofthe ordinance. A cert~ed copy of wl~is# the ordinance is ire attached. Sponsoring Committee The proposed= repeal is sponsored by the following committee of City of l~ichfield residents who are registered voters: Name 1. 2. 3. 4, 5. Address Instructions. to Petition Signers The .undersigned qualified registered .voters, understanding the nature of the- drdinance hereto attached and° believing it to be detrimental to the welfare of the City,:: petition- the- Council for its submission to a vote of the voters for their approval or disapproval. Date 1. 2. 3. Legal Si nc~ attire Name (print iegibly~ Address sprint legibly CAH-226414v1 RC145-17 (^,-~#e=ead-a#~e-tis#-ef~+gAa#t~es-s#a11-be-app°~ed *"° e~~'~•~°+ The. affidavit of the circulator must be attached at the end of the list of signatures.) NOTE: Most of the changes are to simplify wording: One substantive change is to add the date and panted name of each signer to the form of petition. It also incorporates the residency requirements added fore committee members and circulators. I added- the . instructions to signers in the petition form. ..Section 5.13. Referendum Ballots: The ballots used. in any referendum- election . shall conform to the rules laid down in Section 5:08 of this Charter for initiative. ballots. `Section 5:14. The e Recall. No less than 25~ registered voters may form themselves in a committee for the purpose~~ of ~ bringing- about the recap of` any -Council :Member including:-the: Mayor. If the committee seeks° the recall of a districts Council Member; the registered voters cort~tituting the committees shal# must be fromr the Council-. Member's; district. The. committee: sbatl must .certify<to the. City: Glerk the name':of the Council Member whose` removal. is-sought, a- statement: of thee. grounds for removal in°< not more than 250 words,:: and the committee's intention. to bring about his or her recall. A copy, of this certificate: swan must be attached to each; signature paper and no signature paper: sbal# may be puts int© circulation previous to such certification. The, .grounds as set forth in the- recall .petition must be predicated on one or more charges of malfeasance,. nonfeasance or both: For this purpose the word''malfeasance" means. the performance. of an act by, a Council Member in his or her official capacity that is- wholly illegal and wrongful- and' the word- "nonfeasance" means the neglect or 'refusal, without sufficient excuse, to do that which it is the Council Member's legal duty to do so. NOTE: Changes one to simplify wording. Section 5:15,. Recall Petitions. The: petition for the recall of any Council- Member egaN must .consist of a certificate identical to that filed with the City Clerk together with alt the signature papers and affidavits thereto attached. All the signatures need not be on one signature-:paper, but the circulator of every signature paper s#~all must make an affidavit that-each- signature: appended to the paper is-the genuine signature of the person whose name it purports to be. Every circulator of a signature gaper must be a resident of the.: state. of Minnesota. Each signature paper atiall-must be in substantially the following.: form: :RECALL PETITION Proposing the recall of from the office as which recall is sought for the reasons set forth in the attached certificate.. Sponsoring Committee This movement is sponsored by the following committee of registered voters eligible to vote on candidates for that office. CAH-226414v1 ~ RC145-17 ,Name 1. 2. 3. (listing alGmembers of the committeel -Instructions to Petition Signers Date: Legal Signature 1. 2. 3. Address Name sprint legibly) Address (print legibly). A~ ~4re Dr~iJ ~,F +he tin nn+~ ~rec~ c•h }4» A~rl.~~ii~ ,~-z,-,~ ~+~;c~,~~-~„aN-be-appepded-R,~~n The a ~dav~t o t e circulator must be attached at the end of the list of signatures. NOTE: Mary changes are to simplify wording: The. changes to the form of petition (adding. a date. and printed name of each signer and instructions to signers) are also added here. It also adds a requirement that circulators be residents of the state. Section 5.16. :Filing of Petition. Within thirty (30) days after the filing: ofi the original. certificate, the committee- must file the completed petition in the office of the City Clerk. The City Clerk stiaN must examine the petition within the next ~e-E~} ten: 1 Q working days and ~f the clerk finds it irregular in any way, or finds #hat the: number of signers is less than twenty-five. percent (25%) of the total number of registered voters eligible to vote on candidates for that office at the last preceding regular municipal election,. the City Clerk sf~allmust so notify one or more members of the committee. The committee shall then be given#en (10) days in which to file additional signature papers and to correct the petition in all other respects, but the committee may not change. the statement of the grounds upon which the recall is sought. If at fihe end of that time the City Clerk finds the petition still insufficient or irregular, the clerk mall must notify all the members of the CAH-226414v1 g RC145-17 The undersigned. registered voters, aIF being. eligible to vote on candidates for that office, understanding:. the nature of the. charges. against the Council Member herein sought to be recalled, desire the holding of a recall .election for that purpose: committee to that effect and .shall file the ....petition in the City Clerk's office. No further action shall be taken thereon. NOTE: This section has been changed to give the clerk 7Q working days instead of 5 days to review the petition. The other changes are to simplify wording. Section 5.17. Recall Election. If the petition or amended petition is found sufficient, the City Clerk. musttransmit if to the Council without delay, and shall must. alscs officially- notify the person sought to be recalled of the sufficiency of the; petition andk of: the: ..pending.: action. If the Council- Member sought o bey recalled does note resign withirn ten: (1Q) days afterhaving been givem such notice;. the Council shall; .:at' its next meefrnga; occurring mgre than: ten= (1'0) days. after the receipf by the Council° of the: recall-petition, by resolution, provide fore the holding. of a special recall election not less than 38 50' nor more than 45 75 days- after. such meeting, but if any other election .is to.occur within sixfy (60) - .:days after- such.: meeting,: the Council may in its. discretion provide for the holdingx of the recall: election at that timer If the; special recap election involves. a district, Council:: Member; they recall election ~all° musfi be conducted only,. within the district of such Council'-Member.. If it involves several'district-Council Members, the election sfaall° must "be conducted only within. the districts of such Council Members.. If it involves: a Council Member who is elected at large, the election shall` must be a City-wide election. NOTE: Minor wording changes. Section 5.18. Procedure at Recall Election. The City Clerk shall -must .include with the published notice. of the: election the statement: of the grounds for recall and also, in not more than 500 words,.. the. answer. of the Council Member. concerned in justification. of his or her course: in office. The election shall must. be- conducted as far as possible, in accordance with the usual procedure in municipal elections. NOTE: Minor wording changes. Section 5.19: Fom~ of Recall Ballot. The form of the ballot at such election shall be: "Shall be recalled?" The name of the Councih Member. whose recall- is sought. and his or her office shall be inserted in the blank. The electors shall be permitted to; vote separately "Yes" or "No" uporf this question. If a majority. of those voting an the question of recall vote in favor of recall, the official shall be thereby 'removed from office: NOTE: The change inserts omitted words. This change can be made administratively, if review of the. original charter or amending ordinance shows that the omission of the words was simply aclerical-error. Section 5.20. Procedure to Fill Vacancy. In .the event that a Council Member is ...recalled by the electors or resigns after a petition has been filed for his or' her .recall, the vacancy sf-iaall-must be filled in the following manner: CAH-226414v 1 9 RC145-17 if less than six months remain in the. Council Member's term of office at the time of the recall election or at the time of resignation in response to a recall petition, as the case may be, the vacancy sly must be fi11ed by the remaining members of the City Council for the unexpired term pursuant. to Section 2.05. If six months or more remain in the Council Member's term. at the time of such recall or resignation, the Council shall m'iast~:call a special election to fill the vacancy: f©r the- 'balance of the Council Member's term. Such election shai4: mush be called` within ten- (10), days= after such recall or resignation; and. the; special election. shall must be held°-not ;less: -than tk~~y=(3A3~ fi ~0 nor- more than-sixty,: (60) days after. the meeting at which the elections is called.... Candidates; to fill the unexpired term. shall must: be nominated in theH usual: way. and the election mush be conducted as far as possible- in accordance with, procedures ire municipal elections except that there shall be no :primary, election and the: candidate; receiving the. highest number of votes. for-the office shall be elected, to fill the, unexpired'..term. NOTE: Most- of the changes are wording changes. The 30-dad minimum deadline for holding a special election was changed to 50 days in order to conform to state law. Section 5.21, The term of the candidate selected by the voters at the regular or. special- election. to fill the unexpired:. term- shall- start as soon as the- declaration of the results has been filed with the City Clerk, and the person has qualified for office. Section 5 22 OfFenses• Penalty It is unlawful for a person to: a sign a Warne other than that person's own name to an initiative, referendum or recall petition; b circulate an initiative or referendum petition without reauired attachments; c circulate an initiative referendum or recall petition when unqualified to do so; e make a false affidavit in connection with an initiative, referendum, or recall etp ition; f pay or offer to pay a person or receive payment or agree to receive ~ayment for signing an initiative referendum or recall petition;. circulating an initiative referendum or recall. petition. This subsection does not prohibit the payment of salary and expenses for circulation of the petition CAH-226414v1 10 RC145-17 on a basis not related`- to the number of signatures obtained, as long as-the circulators fiully disclose ` alf con#ributions receFVed' to the city clerk upon submission of the petitions. A violation of this section is a misdemeanor punishable in accordance with state law. NQTE.• This section identifies offenses that are punishable as a misdemeanor offense:: It is intended: to: prevent fraud.- Paragraph. (fJ is taken: from the: repealed section 5:02.. Paragraph ~ (g) is a, modified .form of the..:::prohibition. on paying .circulators. The Eighth Circuit-Courf of Appeals has upheld the constitutions{ity of a requirement that circulators> not be paid on aper-signature- basis. `Initiative & Referendum Institute v. Jaeger {2001). CAH-226414v1 11 RC145-17 DJK: 12/14%2002 GHAPTt=R 7 TAXATION ANQ FINANCES TAXATION AND FINANCE Section 7.01. Council to Control `Finances. The Council shalt .have full authority: over the financial affairs; of the 'City; and-shall provide f~r~the collection of all ~reuenues -and°-other assets, the auditing and settlement of accounts and the afekeeping and :disbursements 'of public monies. .Section 7..02.., .Fiscal Year.. The fiscal year of the .City.. is the calendar year. Section 7.03. Svstem of Taxation; Subject to the state constitution,. and except' as #orbidden by it or by state: legislation, the Council shall have-full power to provide by ordinance for a system of location taxation. In the taxation of real and- personak property as such; the City; shat( conform as fully as passible to the general state law as to the. assessment of such property.. and the collection of such taxes. NOTE: Notice and hearing before the adoption of a tax. ordinance .would ;probably take place' anyway since it is probably constitutionally required: lt~ seems desirable to include that requirement here. The commission should be .aware- that the :possibility of the City being able to use this provision in the foreseeable future and beyond is-about zero. Section 7.04. Board. of Eaualization. The Board of Equalization shall consist of the members of the Council and two residents of the City appointed for a one year term- by the_ City Manager and approved by the Council. The two resident members shall be experienced in real estate matters and shall receive such compensation as the Council may determine. The Board of Equalization shall equalize assessments of .property for taxation :purposes according to aw. DJK-224351v1 RC145-17 1 Section 7.02. fiscal Year. The fiscal year, of the City shall be the calendar year. collection of the taxes. As soon as arty real estate-has been reassessed; the effected property owrter°-shall be notified by the assessor of the amount of the change and the "reasons therefor: NOTE: `the final sentence of existing section 7.04 is outdated.` -State law .(Minn: Stat Chapter 274) provides. that no one's property valuation:. may, be raised by the board without prior notification. There `seems to be no:goad reason to notify a property owner of a reduction ; n-, valuation; and under they existing - . language; a wholesale ~-e~luction ~n valuation would require notice: to a/l pr©perty` owners:`- It should be noted that:~the, ;valuations approved by the Board are' all: subject to review by the County Board of Equalization. The. requirement for two"resident members is probably unique. It is doubtful that shch members are required since almost all of the technical.data on valuation is supplied by the City and County Assessors: If the members are retained, a term should be specified. Staff Note: This process is one that is nateustomer-friendly or helpful- to the public. Most Metro. area counties: conduct assessment review -cities are not involved: Since I'.ve-been here (3 years) and I :guess for several years prior to my arrival; the meeting of the Board of Equalization was: atte>~ded by o~te ar twa people. Securing qualified people in the future may be problematic. It would be far .better public policy to eliminate the Local Board of Equalization and have people go directly to the County -.they do that now anyway.. It would seem far more service friendly to have an informal informational meeting where residents and business owners can have time to talk one on. one with the assessor, have their questions answered and receive infoxmation that mightbe helpful to them at the County meeting. That is generally what people what anyway -just their questions answered. This is simply good public policy and one that does not and should-not be formalized. Section 7.05. Preparation and Submission of Annual Budget. The City Mahager shall,.. at a special. budget meeting of the CounciF on or before the first Tuesday in September; submit to the Councit a budget and:. an explanatory. budget message in a form and manner- as~ ::prescribed in Sectiork 7.06.; For such purpose and at such date as he or she shall determine, the .City Manager shall- obtain froirr the head- of each- department the character, object and details of proposed expenditures together wi#h such other supporting data as he or she may request, including. an estima"te of aH capital projects or capital expenditures which each department head considers should be undertaken in his or her department for the budget year and the next five years. In :preparing: the budget the City Manager shall review the estimates, DJK-224351v2 RC 145-17 2 the procedures specified by state aaw. shall ;hold hearings ~thereo'n arad may revise .estimates, as he or she Finay deem advisable. ~Amerlded sBill ~ 990-~ 3) NOTE: The projection of capita! projects is changed from the existing five: years to four. Four plus the present fiscal year makes for a more standard five- year capital. improvement program: Thee September deadline is .effectively. superseded by the new subdivision 2 added at section 7.07. Staff Note: There are several issues in the old and in Dave's new language. First. of all, the department heads do not submit "reports" to me regarding proposed expenditures/revenues. Developing a budget means multiple rounds of draft. documents and these documents certainly da not come in any "report" :form. Date has; in his revision; formalized an informal. process and made it far mhre cumbersome. I think the mention of "reports" is'misleading and inconsistent with: a process that;produces very accurate and understandable results. It is also important to address the mention of one or more "public. hearings". Public hearings are expensive - tt means that a notice must be published in the newspaper. We have tried to reduce the number of public hearings to .those that are required by ~iaw and. have instead moved to "public meetings". Public meeting means just that - a meeting of the City Council held in a .public forum. I have added language that would require the meeting to provide for public comment, but reduces the cost of such a formal meeting. Dave's note at the end of his revised Section 7.05 is critically important. There is an archaic k~im.position of the first Tuesday in September that makes absolutely no sense in today's envaronme>at. All of .the relevant data from the County and the State are not available to cities until the end of August and sometimes later as was the case in 2001. We are at the mercy of the Legislature whose actions impact the tmeframe for the distribution of the data without which we .can. not set a realistic ;preliminary evy. .State law requires that the City submit a~preliminary levy no later than September 15. By that time, we generally have the required data, but not always. As Dave states, the September date is DJK-224351v2 RC145-17 3 superseded byttie new subdivision that essentia)Ely says. that- state law- prevails. If 1t is important to have a date, make lit no later than S~epternber 15 or• the date, by which State-law requires cities to submit. preliminary levies. Preparing. a budget message with -all. the requiredinformation and comparative analysis is~ almost. impossible to accompli~hn the forced timeframe of the~first Tuesday in September. Staff has tnsnfficient time between late August.when-:all the data is r+ecelyed and the.Charter imposed timeframe: It~is questionable towhat:extent the Budget messoge has any value soearly.in the process alit :represents a summary and many times, the mQSSage is changed. as we go tl~-ough. Council revisions ~'he $udget Message has value ins the final document as it pulls it allaogether after all the analysis, revisions :and new information -has-been completed, - up tP thot ,point; I question why it. is necessary to have completed so early in the process. Section_7.06. 'Fgrrrr bf AnnuaE l3udaet:' The: budget shall provide a complete finarcial° plan of ;all funds for the budget year, vvhieti shalk inclr~cie: -(a} a budget message, (b}; a general" summary,, (c) detailed estimaties of- all an#icip~ted revenues applicable #o prapased expenditures,: and, (d) a8 proposed- expenditures. The proposed expenditures shall not exceed the proposed revenues. 1`he expenditures-for general and' special revenue funds: shall be by organization unit. or activity and shall be in parallel columns, opposite the character and ~rtajbr or minor ob}ect of~ expe.nditure showing the- amount of such expenditure:-.for the last completed fiscal year; the amount estimated for the current: budget year- and heproposed expenditures for::. the- ensuing budget year: In funds other- than general and special~:revenue, the: proposed expenditures shall be presented in an understandable manner according to the discretion of the `City Manager.. The. City Manager shahsubmit a detailed statement of revenues in columns for the general anct special revenue funds for the last completed. fiscal year; the arriount established!; for the current budget year. and the amount estimated for the next budget year: Such;detail shall: include the source of miscellaneous revenues, the. amount of surplus of prior year revenues and the amount raised by property taxes. Revenues for self-supporting and other funds shalt be presen#ed in an understandable manner according to. the discretion. of the-City Manager. The explanatory, budget message may be separate buf still accompanying the budget, and 'be in the form and with contents as follows: .:(Amended Bill 1990-13) DJK-224351v2 RC145-17 4 revenues- the. amount of surplus of prior tiscal year revenues; ana me :amount or Dave's revision again ~mentious "reports" of the deportment heads -there are no such "reports" and to require that such documentation be prepared is adding a; great deal of time and. expense for what value. It is :recommended- that. the last two sentences in Dave's revision draft 6e eliminated. Budget Message -Current Operations: Tfae budget message subrnitted~ by the. City Manager for the CounciF shall bey explanatory.: of the- budget, shall contain-an ol~tlfne of the proposed- financial policies of the City' for tf1e:- budget year and:: shall, describe. in caa~necton 'therewitfT'Ftlie important-features: of the budget plan.. It shall set forth= the reasons fior imajor changes from the previous year in cost and revenue items and shall explain ariy major changes in fi~lancial .policy. Budget Me-sage. -Capital Irnpravernents: As a part pf the budget message with relation- to the proposed:.-expenditures°:for capital projects stated- in the budget; the `City Manager shall fncfude a staterrient of pending capital projects and proposed new capital projects, relating to the. respective:.amounts proposed #o: be raised therefor by appropriations. in the budget and t#le respective :amounts,.- if- any, proposed to'be raised therefor by the .issuance. of bonds during t~ha' °budget year.... Budget: Message -Capital Program: The C'tty Manager shall< also include in the message, or attach°~ thereto,.: a capital program:. of proposed capitat projects for the> five: fiscal. years next suGCeeding; fihe budget year,; prepared by: the planning commission, if such there be, together with the 'City Manager's comments thereon and any estimates of costs: prepared by the:... departrrient of public works or other office or department.- For the< use- ofi the- planning commission° in preparing such: capital. program; copies: of departmental estimates of capital projects,: filed with the City: fVlanager pursuant to Section 7.05 of this article, shall be filed with' the commission. (Amended Bill 1990-13) Attached to the bud et message shall be such supporting: schedules, exhibits and other explanatory material,. ih respect to both current operations and capital improvements as the- City 'Manager shall believe useful to the CQUncit. Staff Note: (ii) Capital Improvements DJK-224351v2 RC145-17 5 important features of° ttae tinanciaf plan or the city. i ne message.. must- give reasons for maior changes in expenditures and .revenues from the-:prior fiscaf year and' explain the rationale for °maior changes ifi anV. from previous- financial policies of the City. sources of funds to be used to pay for them. Capital improvements. included for-the: budget year are all proposed,.. not pending, :until approved. The use of the word` pending seems inappropriate, -- --- -- -------- -y--- NOTE: The present>- language- requires that .the Capital Protect Rlan -be prepared by the Planning Commission. There rs° no legal; requirement for this and it is doubtful that this is in fact the case: (The City staff should be consulted on this point). (iii) Capital Program Dave's note about the use of the Planning Commission in reviewing the Capital Program is worthy of additional comments. The role of Planning Commission is land-use planning. The Capital Program and Capital Budget rarely involves land-use planning. The Community Services Commission also reviews the Capital: Program and Budget. What is the value added by the, Planning. Commission's role? And. again, what value is there in including the Planning Commissions comments (via the meeting. minutes) in the Capital Program. document? It is an added expense for the number of documents prepared. Once again in the revised language is the mention of "reports" which is an inaccurate characterization of the draft budget process. It is my suggestion that the Commission re-examine how they wish the proposed capital. program to: be reviewed: At the very. least, the last two sentences of the revised language under iii Capital Program should be eliminated. Section 7.07.Passage of Annual- Budget. At the special budget meeting; the Council shall determine the place an:d time of the public hearing. on the budget, and shall cause to be :published a notice of the time and- place of the public hearing to be held >not less -than seven days nor more than fourteen. days. after publication. The budget shall: be a public record in the. DJK-224351v2 RC145-17 6 office of the City Clerk open to public inspection .by anyone. The City.' Manager. shall cause sufficient: copies to be prepared for distribution to inter-ested persons and- civic groups. The budget meeting as advertised shall be held. and= adjourned from tune to time arlct conducted so. as to give interes#ed citizens. a .reasonable- opportunity to be heard: The -budget estimates. sY~alf be read in full'and ~he~ City IVfanager shalF explain the various items thereof as fully as may.: be deemed necessary by the Council: The 'Council shall adopt the budget na later than tfle Gast date established by law for the County, Auditor fa levy taxes. The budget reSol~tibn shall:, set forth the total: for each budgeted fund and each department with such segregation as to objects and purposes of ~expedditures as the Council deems necessary.. for purposes- of budget control Such resolution shall also state the amount~of taxes to be levied: NOTE: This subdivision recognizes that the budget adoption ,and tax levying procedures in the Charter must- conform to the State "truth in taxation laws': If these laws are repealed; the Charter procedure would control: To minimize confusion in this. working- draft; subdivision 2 has been- included' as a subdivision to this section: In the final draft, subdivision 2 should probably be a separate section. Section 7.'08.. Enforcement of the Budget. The City Manager shall strictly enforce the :provisions of the budget as specified in the resolution. The City Manager shall not authorize or approve any :expenditure unless an appropriation Jas been .made in the .budget res0lutlOn anal +DJK-224351v2 RC145-17 7 Staff Note:. The revised. language could be construed to mean a copy for every- member of the. public. I believe current practice of providing three public copies is consistent with common practice throughout Minnesota. there. isan availableunencumbered" balance of the appropriation-:sufficient to pay-the affability to be= incurred. No officer or employee. of the Gity shalt place..-any- orders or make any purchase= except for~the purposes,authorizect:~in the: budget. Any" obligation incurred- by<any persori "in the employ of. the City for any purpose not: in the 'approved budget of for any amount in excess of the amount appropriated- in the. budget resolution or in excess of available monies in any fund of: the City; naay be cor7sidered a personal obligation upon the person. incurring the~.expenditure. (Amended Bill 1990-13) Section. 7.09. Altering or Adiusting the- Budget. After the budget shall have beers- duly:,. adopted,. the council shall Have no power to increase .the .amounts fixed in-the budget " resolution;. by the. insertion off"-new: items: or otherwise, beyond the: estimated. revenues, unless° the actual receipts exceedthe estimates and then nofi beyond the actual receipts. The CouncN may at any time, by resolufron approved by a four-fifths majority of its members; reduce the sums appropriated for any purpose by the budget. resolution. At the request of the Manager, within.. the "last- three' months- of the- fiscal year,. the Council .may transfer unencumbered appropriation balances from one office,:. departmenf or agency to another within the same- fund: All appropriations shall lapse at the end of the .budget year to the extent that they shall not have been expended or lawfully encumbered. Staff Note: DJK-224351v2 RC I45-1 T g Like mpst cpmpanies, we`~lo nbt close out our~fiscel year right`on December 31st: We may reconcile accounts into FebruarywHen marry year end e~per~diture billings cpme irttothe • City. The. old language. is incpnsistent with actual' stand~rds~ of practice- here acid in most.' organizations. Note; The requirement of a fqur-fifths.. ma}ority of the Council to reduce budget allocations ~is removed. there: seems to: be no good reason for this ~~ requiremennt. The budget' itself is adopted by a simple majority and-extraordinary ` majority vote' requirements promote rn`inority rule by. giving extraordinary weight to the one additional vote needed for passage; It should be noted that this 4/5th's rule is a~`comrnon ,requirement in ~ city charters and.~:is tlYe-:rule iri"statutory; (non=charter} cifies. = But the rule has been included in the league of Cities Model Charter since it was first prepared so-ri~ , ~6¢ years ago when- reasons for it may have been-.more:-evident. l~he=rule, is 'somewhat like; the.. "QWERTY" phenomenon =on° the•° typewriter keyboard which everyone agrees is cumbersome =but `repeated attempts to rearrange the .keys:` have not been sdcoessfuL Section 7.1.0. Emergency Appropriation in Budget. The Council-: may =include an: ernergenCy appropriation as a part of the budget but nofi exceed three. per- centum of the total; operating appropriations: made `in the budget for that year. A #ransfer frorrl~ the emergency appropria~~iorr to any other appropration~> shall be made only. upon: recommendation of the. City Manager ctr a member of the Council and° by a majority:. vote of the Council: The. funds thus appropriated shall be used--only for the purposes designa#ed by the Council. Section 7.11<. Disbursements. -How Made. No disbursement:-of City funds shalt .be made except by check bearing `the actual or facsimile. signature'- of the City Manager and- the 'treasurer. No such: check shall: be issued unless the claim to which it relates specifies. the. purpose for which the- disbursement is made and the fund upon which it is drawn, and fias been supported by=an itemized bill; :payroll, or time sheet approved and signed by the responsible City officer who:. vouches: for. the correctness and reasonableness thereof. The> Council may by ordinance-. make: further regulations for the safe-keeping :and disbursement of the funds of the: City. Section 7 11 Disbursements. -Hove Made. Except as otherwise provided in this section disbursements of Citesfunds may be made only by check bearing: the actual or facsimile signature of the Manager and :the treasurer. A check maw- -not be issued unless the claim to which it relates specifies the purpose for which- the disbursement is made and-the fund upon which it is drawn -and the claim- has, ::been supported by an itemized bill payroll or time sheet approved and signed by the responsible City officer who vouches for the correctness and- reasonableness of the claim The Council may by ordinance make further regulations fore the DJK-224351v2 RC145-17 9 Section:., 7.1:0. Emergency Appropriation in Budget. The Council may .+~.-.i.. L.~.~L+an..~~ :ear! •'71i~hG~r~ar5nct'~#- of = fhC, f~ ~nrlc -.rif" #~a- ~ ~itv~ ~ inrln~linn '~th means. , , NOTE: Strictly. read, the existing language does not permit payments by ,.credit card or. wire transfer;- an increasingly corrtrnon practice: The new language:; assumes ~ that the City Eauncil will carefully circumscribe the practice: while.. permitting its: use where essential: Section .?.12: Funds.. to bT a Kept: There shall be maintained, ins the City treasury. the funds .provided far in the .following. subdivisions: 'Section:? 12 Funds to be Kept.:Section 1. There'rnust be maintained~n; the City treasury_the funds provided for in-#his "section: Sub: 1: General Fund: The General Fund is established- f©r the payment. of all general ..government- expenses and. obligations of=the City as the Cauncit may- deem proper.. Into ;this fund. shall be paid all`.monies not otherwise provided herein,. or by statute or by ordinance to be paid into any other fund. Sub. 2. Special Revenue Fund: A Special Revenue Fund is established and into which shall bepaid the profits from public service- enterprises, including the profits from.. the liquor store, proceeds: from special: tax levies and other special revenues. There shall be paid out of?- this'fund monies:. for such purposes as authorized; by the budget resolution; provided,. however, that such monies may: be used for capital, improvements of the #ype for which the City would he authorized to issue general of3ligatian bonds only by ordinance. N(3TE: The. term "profits" is not appropriate for municipal enterprises. The new :definition of "net .revenues" is uniformly recognized in governmental accounting. DJK-224351v2 RC145-17 i0 It is doubtful that ill "profits" (i.e., net revenues) of.t~e water,. sewer and storm. sewer utilities are presently paid into #his -fund. If this is desirable; it may be done by the Council under (iii) "other .special :revenues ; or by the budget resolution: -The "provided" language is not helpful. The City is authorized bylaw (and'- thin Charter); to issue general obligation bonds. for any capital purpose:. ahe requirement for an ordinance seems unnecessary since. the ordinance: wo"uld not be subject to referendum: Staff No#e: The City, has several sub. classes of Special Revenue"Funds, that are not<. and should not be treated- as the Liquor Contribution Special. Revenue. Fund. For' example,. the funds, involved in the operation of the City's first half marathon. event;, has been set up as a Special Revenue Fond and there° are instances where state or .federal grant funds- are- processed= as Special' Revenue: Funds as theix' purpose., is dictated by state oG federal: law. It seems ill advised and impractical to lump all such funds together when ahe intent of the original language. was. to frame. an accountable: ...process -that is exactly what happens naw. ` Sub. 3. Utility or Other Public .Service Enterprise. Funds: .One or more utility Qr other public service enterprise funds into: which shall be paid all money derived from. the sale of bonds issued on• account of any municipally owned utility or enterprise: and all- money. derived from the sale of utility or other public enterprise. services and from the sale of any property acquired-for or used in connection with any such- utility or enterprise. There shall be paid out of this fund: the- cost. of the purchase, construction, operation, maintenance and repair of such utility or enterprise; including the prirtcipal of and interest- upon. obligation which have been. or shall be ; issued on its account. Separate fonds shall 6e kept for all utilities or public service.:enterprises> which are operated separately. NOTE: The .present language does not require revenues of utilities .and enterprises to be paid to an appropriate fund. Sub. 4. Trust. and Aaency Funds: One or more trust and agency funds for the care and disbursement of money received. and held by the City as trustee or custodian or in the capacity.. of an agent for individuals or other governmental units. DJK-224351x2 RC145-17 11 `Sub: 5. Discretionary Fund: "A ©iscretionary Fund :is established far payment-> of reasonable and necessary expenses,. not otherwise payable by the .City,,:. incurred by the Mayon and' Council Members for the benefit- of~~the. City and its people. Appropriations to- and expenditures-:from this fund, shall not=exceeds $500 per year. The Council may;by~resolutiorn•° establish. the`putposes and procedures„for~~the making of disbursements from.-this fund; but disbursements made without previous- Council- authorization shall be; slagject..to;audif ands allowance by tfie Council. (Amended Bill 1968-16, Bi11 1990-13)~ NOTE: It is probably not a good idea to include a dollar figure for this fund: $500 in 2010 is a good deal different than $500 in 1990. It is possible. to set a figure with a cost of living. adjustment;. but that seems unnecessary. for such a small item-that most city councils police with great attention. Sub. fi. In addition to the foregoingfunds, there may be: maintained in the. City treasury,. whenever the Council deems. it advisable; f 1 }one or more working capital or revolving. funds, fore financing self-sustaining activities: nat accounted for through other funds; and (2) such other: funds as may be required by statute or ocdinanee. Sub. 7. The Council may make interfund loans by resolution where permitted by law except from: Trust and Agency funds. NOTE: No changes made in Sub. 7. Section 7.13. Accounts and Reports. The accounts of the City shall be maintained on an :accrual or modified accrual .basis in accordance with generally accep#ed governmental DJK-224351v2 RC145-17 12 accounting standards and procedures. The->City Manager' shall submifi such reports as will be, necessary in order to 'keep the Council fully infar-med of the financial -condition of the City, .Once`: each year on or before the 30th cfay- of .#une; the City. Manager shah submit a~;comptetq financial: <report~ of the~.City for the preceding.-fiscaF:year ending-©ecember 31, a summary of>which shalF be .published-~in-the official newspaper. ° -Thee City Manager;; underahe direction. of the Council; on: or before: June- 3f) of each year; shall prepare.- at least one. comprehensive public information: report~~of the financial affairs- of the. City: Said: report shall be an informative type, and shall be- distrbuted Citywide.: (Amended, Bill No. 2002-2j NOTE: This section was recently amended to extend the dafe of thee. Manager's report. But what. happens if for whatever. reason the City's. auditors don't complete their work by-that date? Would it be better to leave the. date of reporting and publication to the Manager?. What- is the difference between "a complete ;financial report" and a "comprehensive public information report"7 Are two reports necessary.? if one is published is the further distribution required by> the last sentence necessary? Section 7.1:4. City: Indebtedness. Except as provided_ in Sections 7.15 and 7:16, no obligations shalt be issued to pay current expenses, but-the Council may issue and sell obligations. #ar any other municipal purpose in accordance with law and' within- the- limitations prescribed'by law. Except-in-the case of obligations for which an election is not required by this Charter or by state law, no such obligations shall be issued and sold without the approval of the majerity of the registered voters of the City voting- on the question at a general or special election. Before submitting a question to the voters: under this Section; the Council must conduct- at least- one public hearing: on the question preceded by notice published in a newspaper(s); selected- by the Council not more than. 28 days nor less than- 14 days prior to the hearing. (Amended Bill No. 1993-7 Section: 7.14. Citv Indebtedness. Except as provided in Sections 7.15:.. and 7.16. obligations may not be issued to pav current expenses. but the Council may issue anct sell obligations for any other municipal purpose in accordance with- law and within the limitations prescribed. by law. Except in the. case of obligations for which an-election is not reauired by this Charter or by state law obligations may not be issued. and sold without the approval of he majority of the. voters of :the City voting- on the auestion at a general or special election. Before submitting a auestion to the voters under this Section, the. Council must conduct D3K-224351v2 1X145-17 13 NOTE: Thee public hearing requirement of fhe last sentence` is rare in charters if not: unique: fn the normaF. case, there is-extensive public discussion: antl input to the Council before such an election. „.There Is no similar requirement in state'law- _ ., Section 7.15. Tax Anticipation Certificates. At anytime .after January. 1, following:: the making of an annual: tax levy; the Council may issue certificates of indebtedness- in- anticipation of the collection» of taxes; -evied for any fund and°~ not yet collected: The total amount- of= certificates issued= against ~ any -fund for any year with.: interest: thereon until.:. maturity shall not exceed 9Q% pf the total; current taxes f©r-the fund uncollected~~at the~time of issuance. Such '; certificates: shall be issued on such terms and conditions as the Council may determine but_they shall: become due and payable not• later, hari the<first day. of April of the year following their issuance:. The proceeds of the tax levied for the fund against which tax anticipation certificates are issued and the full faith and credif of the City;ahall be irrevocably. pledged, for the redemption of the certifrcate in the order of their issuance against the fund. Section.. 7.16. Emergency Debt Certificates. If in any year the receipts from taxes or other sources should from. -some unforeseen cause become insufficient fQr the- ordinary expenses of the Cify, or if any calamity or other public emergency should subject the Oity to the =-necessity of making extraordinary expenditures, the Council may by resolution issue and sell: on ouch terms and in such:: manner as; the Council determines emergency debt' certificates to run not to exceed twa years. A tax sufficient to pay principal and interest on such certificates with the margin required by law shall be levied as required by law. The resolution authorizing an issue of such emergency debt- certificates shall state the nature of the emergency and- be approved by a majority of the Council Section 7.16. 'Emergency Debt Certificates. If in any year the receipts. from .taxes- or other sources should from some unforeseen cause become within.. three years. A tax sufficient to pay principal- and' interest- on such DJK-224351v2 RC145-17 i4 NOTE: This section duplicates existing law in 'Minnesota Statutes;. Sec#ion 47`5.754; ~ except for. (i) fhe ;two year maturity;. and (ii) the . fac~> that certificates issued underthe Charter are within the City's debt limit. .There is r~o- harm in: leaving the sec#ion (as revised) but it could ,be removed without- doing: violence. fo the Charter DJK-224351v2 RC145-17 IS