Minnesota Legal Compliance Audit Guide for Local Government - Section 3

LEGAL COMPLIANCE MANUALPUBLIC INDEBTEDNESSIntroductionThe pow er of a government unit to incur indebtedness is governed by statutory andhome rule charter provisions. Statutory provisions vary depending on the type ofgovernment 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 charterprovisions that are applicable to the particular borrowing transaction.This questionnaire is intended only to highlight certain general provisions of theMinnesota statutes relating to indebtedness and is not intended to cover all questionsthat may be pertinent.Which of the following types of borrowing has the municipality been involved withduring the past year? Please check all forms of borrowing that have either been issuedor redeemed during the past year or which are currently outstanding at year-end. During the Year Issued Outstanding LONG-TERM BORROWING: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) SHORT-TERM BORROWING:Aid Anticipation Certificates (Minn. Stat. §§ 126C.52, 126C.53) ...