Legal Compliance Audit Guide -- Section 3

PUBLIC INDEBTEDNESS LEGAL COMPLIANCE MANUAL PUBLIC INDEBTEDNESS Introduction The power of a government unit to incur indebtedness is governed by statutory and home rule charter provisions. Statutory provisions vary depending on the type of government unit involved. Each type of borrowing instrument may also be governed by different statutes. Therefore, it is essential that the auditor examine the specific statutes or charter provisions that are applicable to the particular borrowing transaction. This questionnaire is intended only to highlight certain general provisions of the Minnesota statutes relating to indebtedness and is not intended to cover all questions that may be pertinent. Which of the following types of borrowing has the municipality been involved with during the past year? Please check all forms of borrowing that have either been issued or redeemed during the past year or which are currently outstanding at year-end. During the Year LONG-TERM BORROWING: Issued Outstanding General Obligation Bonds (Minn. Stat. ch. 475) Revenue Bonds (Minn. Stat. ch. 475) General Obligation Revenue Bonds (Minn. Stat. ch. 475 Capital Notes Home Charter Cities (Minn. Stat. § 410.32) County Capital Improvement Bonds (Minn. Stat. § 373.40) During the Year SHORT-TERM BORROWING: Issued Outstanding Aid Anticipation Certificates (Minn. Stat. §§ 126C.52, 126C.53) Tax ...