(A) Purpose. The city has the authority to issue tax-exempt revenue bonds on behalf of certain types of development. This enables the development to secure favorable financing, and promotes housing, commercial and industrial development. The city does incur some cost in issuing these bonds, in terms of staff time and legal expenses in reviewing the proposal. This cost should not be born by the general taxpayers of the city. An administrative fee shall be charged to the development requesting the tax-exempt revenue bonds to cover these costs. The fee shall be on a sliding scale to address the potential cost to the issue in very large bond requests.
(B) Policy.
(1) In consideration of the city making tax- exempt revenue bond financing available for private development, and to assist the city in defraying its present and future administrative expenses, the applicant shall, subject to applicable federal arbitrage regulations, pay to the city an administrative fee of 1% of the first $10 million in requested financing, with a ½% fee being charged on the remaining issue. No annual administrative fee shall be charged.
(2) The city shall review these fees from time to time and may adjust the fees by ordinance.
(Ord. 640, passed 8-19-2003)