RES 2007-15 - 00014302RESOLUTION NO. 2007 — 15
A RESOLUTION OF THE CITY OF FRIDLEY, MINNESOTA, DIRECTING ITS
ATTORNEY TO OBTAIN A LEGAL OPINION FROM THE MINNESOTA ATTORNEY
GENERAL PURSUANT TO MINNESOTA STATUTES, CHAPTER 8.07
WHEREAS, the City of Fridley, Minnesota, is a Charter City organized under the laws of the
State of Minnesota; and
WHEREAS, as part of its duties and obligations under Minnesota law, it operates utilities for
sewer and storm water collection, as well as the distribution of water to the residents and
businesses in the City; and
WHEREAS, the City is authorized by law to collect a fee for the purpose of meeting the cost of
providing the aforesaid utility services; and
WHEREAS, many of the key costs for providing those services to its residents are outside of the
management and control of the City, but are, rather, costs and fees imposed by outside
governmental agencies; and
WHEREAS, the actual cost to the City of providing the aforesaid services has been well in
excess of five percent (5 %); and
WHEREAS, in 2001, the citizens of the City of Fridley amended their Charter to include a
restriction limiting any increase in fees imposed by the City, including for the foregoing utility
services, to the lesser of the rate of inflation or five percent (5 %); and
WHEREAS, as the result of the Charter restriction, the utility funds of the City of Fridley, which
are based on fee collections for those services, have been running at deficits which will be in
excess of $600,000 for the year 2007 and are projected to be in excess of $800,000 annually by
the year 2011; and
WHEREAS, the current deficits have created a very significant hardship for the City of Fridley
in the form of significant use of utility fund cash reserves; and
WHEREAS, a serious legal issue has been raised by the City's former outside bond counsel and
financial advisors as to whether the imposition of such restrictions by the City in its Charter
represents a direct conflict with the provision of Minnesota law as it applies to the obligations of
cities to provide such services; and
WHEREAS, the City has determined that it is essential that, prior to taking any other action, it
obtains a binding legal opinion as to whether the restrictive provisions of its Charter are beyond
the scope of authority authorized under Minnesota law; and
Resolution No. 2007 - 15
Page 2
WHEREAS, Minnesota law, under Minnesota Statutes Section 8.07, provides a procedure for
obtaining a legal opinion from the Minnesota Attorney General on important legal matters for
Minnesota cities.
NOW, THEREFORE, BE IT RESOLVED, that the City Manager is hereby directed to seek and
obtain, through legal counsel or any other appropriate means, a legal opinion from the Minnesota
Attorney General to determine whether the current restrictions contained in the City Charter are
authorized by law, and, if not, the extent to which any such restrictions may properly be imposed
in the Charter.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS
26TH DAY OF FEBRUARY, 2007.
SCOrrT f LUND — MAYOR
ATTEST:
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DEBRA A. SKOGEN, CI& CLERK