Minnesota Legislature
HF 890
as introduced - 87th Legislature (2011 - 2012) Posted on 03/07/2011 09:13am
Bill Text Versions
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| Introduction | Posted on 03/07/2011 |
Current Version - as introduced
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A bill for an act
relating to the city of Rochester; modifying its local sales and use tax authority;
amending Laws 1998, chapter 389, article 8, section 43, subdivisions 3, as
amended, 4, as amended, 5, as amended.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by
Laws 2005, First Special Session chapter 3, article 5, section 28, is amended to read:
Subd. 3.
Use of revenues.
new text begin (a) new text end Revenues received from the taxes authorized by
subdivisions 1 and 2 must be used by the city to pay for the cost of collecting and
administering the taxes and to pay for the following projects:
(1) transportation infrastructure improvements including regional highway and
airport improvements;
(2) improvements to the civic center complex;
(3) a municipal water, sewer, and storm sewer project necessary to improve regional
ground water quality; and
(4) construction of a regional recreation and sports center and other higher education
facilities available for both community and student use.
new text begin (b) new text end The total amount of capital expenditures or bonds for deleted text begin thesedeleted text end projectsnew text begin listed in
paragraph (a)new text end that may be paid from the revenues raised from the taxes authorized in this
section may not exceed $111,500,000. The total amount of capital expenditures or bonds
for the project in clause (4) that may be paid from the revenues raised from the taxes
authorized in this section may not exceed $28,000,000.
new text begin
(c) In addition to the projects authorized in paragraph (a) and not subject to the
amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an
election under subdivision 5, paragraph (c), use the revenues received from the taxes and
bonds authorized in this section to pay the costs of or bonds for the following purposes:
new text end
new text begin
(1) $47,000,000 for capital expenditures and bonds for transportation infrastructure
improvements including regional highway and airport improvements, but excluding any
transportation improvements related to a railroad bypass that would divert rail traffic
from the city of Rochester;
new text end
new text begin
(2) $26,500,000 for capital expenditures and bonds for higher education facilities in
the city;
new text end
new text begin
(3) $40,500,000 for capital expenditures and bonds for improvements to regional
youth and elder community facilities;
new text end
new text begin
(4) $8,000,000 for capital expenditures and bonds for construction of regional public
safety facilities; and
new text end
new text begin
(5) $38,000,000 for project expenditures and bonds for any economic development
purposes authorized under Minnesota Statutes, chapter 469.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Laws 1998, chapter 389, article 8, section 43, subdivision 4, as amended by
Laws 2005, First Special Session chapter 3, article 5, section 29, is amended to read:
Subd. 4.
Bonding authority.
(a) The city may issue bonds under Minnesota
Statutes, chapter 475, to finance the capital expenditure and improvement projects.
An election to approve up to $71,500,000 in bonds under Minnesota Statutes, section
475.58, may be held in combination with the election to authorize imposition of the tax
under subdivision 1. Whether to permit imposition of the tax and issuance of bonds
may be posed to the voters as a single question. The question must state that the sales
tax revenues are pledged to pay the bonds, but that the bonds are general obligations
and will be guaranteed by the city's property taxes. An election to approve up to an
additional $40,000,000 of bonds under Minnesota Statutes, section 475.58, may be held
in combination with the election to authorize extension of the tax under subdivision 5,
paragraph (b).new text begin An election to approve bonds under Minnesota Statutes, section 475.58,
in an amount not to exceed $160,000,000 plus an amount equal to the costs of issuance
of the bonds, may be held in combination with the election to authorize the extension of
the tax under subdivision 5, paragraph (c).
new text end
new text begin (b) new text end The city deleted text begin maydeleted text end new text begin shallnew text end enter into an agreement with Olmsted County under which the
city and the county agree to jointly undertake and finance certain roadway infrastructure
improvements. The agreement deleted text begin maydeleted text end new text begin shallnew text end provide that the city will make available to the
county a portion of the sales tax revenues collected pursuant to the authority granted in
this section and the bonding authority provided in this subdivision. The county may,
pursuant to the agreement, issue its general obligation bonds in a principal amount not
exceeding the amount authorized by its agreement with the city payable primarily from
the sales tax revenues from the city under the agreement. The county's bonds must be
issued in accordance with the provisions of Minnesota Statutes, chapter 475, except that
no election is required for the issuance of the bonds and the bonds are not included in
the net debt of the county.
deleted text begin (b)deleted text end new text begin (c)new text end The issuance of bonds under this subdivision is not subject to Minnesota
Statutes, section 275.60.
deleted text begin (c)deleted text end new text begin (d) new text end The bonds are not included in computing any debt limitation applicable to the
city, and the levy of taxes under Minnesota Statutes, section 475.61, to pay principal of
and interest on the bonds is not subject to any levy limitation.
new text begin (e) new text end The aggregate principal amount of bonds, plus the aggregate of the taxes used
directly to pay eligible capital expenditures and improvementsnew text begin for projects listed in
subdivision 3, paragraph (a),new text end may not exceed new text begin new text end $111,500,000, plus an amount equal to the
costs related to issuance of the bonds.new text begin The aggregate principal amount of bonds plus the
aggregate of the taxes used directly to pay the costs of eligible projects under subdivision
3, paragraph (c), may not exceed $160,000,000 plus an amount equal to the costs of
issuance of the bonds.
new text end
deleted text begin (d)deleted text end new text begin (f)new text end The taxes may be pledged to and used for the payment of the bonds and
any bonds issued to refund them, only if the bonds and any refunding bonds are general
obligations of the city.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by
Laws 2005, First Special Session chapter 3, article 5, section 30, is amended to read:
Subd. 5.
Termination of taxes.
(a) The taxes imposed under subdivisions 1 and
2 expire at the later of (1) December 31, 2009, or (2) when the city council determines
that sufficient funds have been received from the taxes to finance the first $71,500,000
of capital expenditures and bonds for the projects authorized in subdivision 3, including
the amount to prepay or retire at maturity the principal, interest, and premium due on any
bonds issued for the projects under subdivision 4, unless the taxes are extended as allowed
in paragraph (b). Any funds remaining after completion of the project and retirement or
redemption of the bonds shall also be used to fund the projects under subdivision 3. The
taxes imposed under subdivisions 1 and 2 may expire at an earlier time if the city so
determines by ordinance.
(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any
other contrary provision of law, ordinance, or city charter, the city of Rochester may, by
ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009,
if approved by the voters of the city at a special election in 2005 or the general election in
2006. The question put to the voters must indicate that an affirmative vote would allow
up to an additional $40,000,000 of sales tax revenues be raised and up to $40,000,000
of bonds to be issued above the amount authorized in the June 23, 1998, referendum for
the projects specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are
extended under this paragraph, the taxes expire when the city council determines that
sufficient funds have been received from the taxes to finance the projects and to prepay
or retire at maturity the principal, interest, and premium due on any bonds issued for the
projects under subdivision 4. Any funds remaining after completion of the project and
retirement or redemption of the bonds may be placed in the general fund of the city.
new text begin
(c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any
other contrary provision of law, ordinance, or city charter, the city of Rochester may, by
ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond the date the city
council determines that sufficient funds have been received from the taxes to finance
$111,500,000 of expenditures and bonds for the projects authorized in subdivision 3,
paragraph (a), plus an amount equal to the costs of issuance of the bonds and including
the amount to prepay or retire at maturity the principal, interest, and premiums due on
any bonds issued for the projects under subdivision 4, paragraph (a), if approved by the
voters of the city at an election to be held on November 8, 2011, or the general election in
2012. If the election to authorize the additional $160,000,000 of bonds plus an amount
equal to the costs of the issuance of the bonds is placed on the general election ballot in
2012, the city may continue to collect the taxes authorized in subdivisions 1 and 2 until
December 31, 2012. The question put to the voters must indicate that an affirmative vote
would allow sales tax revenues be raised for an extended period of time and an additional
$160,000,000 of bonds plus an amount equal to the costs of issuance of the bonds, to be
issued above the amount authorized in the previous elections required under paragraphs
(a) and (b) for the projects and amounts specified in subdivision 3. If the taxes authorized
in subdivisions 1 and 2 are extended under this paragraph, the taxes expire when the city
council determines that sufficient funds have been received from the taxes to finance the
projects and to prepay or retire at maturity the principal, interest, and premium due on any
bonds issued for the projects under subdivision 4, including any bonds issued to refund the
bonds. Any funds remaining after completion of the projects and retirement or redemption
of the bonds may be placed in the general fund of the city.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after compliance by the
governing body of the city of Rochester with Minnesota Statutes, section 645.021,
subdivision 3.
new text end