HF 224

as introduced - 89th Legislature (2015 - 2016) Posted on 01/20/2015 11:05am

A bill for an act
relating to education finance; allowing school boards to elect to levy debt service
against an alternative tax base; amending Minnesota Statutes 2014, sections
123B.53, subdivision 4, by adding a subdivision; 123B.55; 123B.71, subdivision
9; 126C.01, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 123B.53, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Debt service levies; choice of tax base. new text end

new text begin (a) A school board may by
resolution elect to levy the debt service for a bond against:
new text end

new text begin (1) the net tax capacity of the district;
new text end

new text begin (2) the referendum market value of the district according to section 126C.01,
subdivision 3; or
new text end

new text begin (3) the alternative referendum market value of the district, according to section
126C.01, subdivision 3a.
new text end

new text begin (b) A resolution to levy against the referendum market value or alternative
referendum market value must be passed at an open meeting of the board, at least 60 days
prior to the referendum election for the sale of building bonds. If a resolution is not passed
by the board, the levy must continue to be spread against the district's net tax capacity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to bonds issued after July 1, 2015.
new text end

Sec. 2.

Minnesota Statutes 2014, section 123B.53, subdivision 4, is amended to read:

Subd. 4.

Debt service equalization revenue.

(a) The debt service equalization
revenue of a district equals the sum of the first tier debt service equalization revenue and
the second tier debt service equalization revenue.

(b) The first tier debt service equalization revenue of a district equals the greater
of zero or the eligible debt service revenue minus the amount raised by a levy of 15.74
percent times the adjusted net tax capacity of the district minus the second tier debt service
equalization revenue of the district.

(c) The second tier debt service equalization revenue of a district equals the greater
of zero or the eligible debt service revenue, excluding alternative facilities levies under
section 123B.59, subdivision 5, minus the amount raised by a levy of 26.24 percent times
the adjusted net tax capacity of the district.

new text begin (d) Debt service equalization revenue is determined as provided under this
subdivision regardless of whether the debt service is being levied against net tax capacity,
referendum market value, or the alternative referendum market value.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 3.

Minnesota Statutes 2014, section 123B.55, is amended to read:

123B.55 DEBT SERVICE LEVY.

new text begin Subdivision 1. new text end

new text begin Levy amount. new text end

A district may levy the amounts necessary to make
payments for bonds issued and for interest on them, including the bonds and interest on
them, issued as authorized by Minnesota Statutes 1974, section 275.125, subdivision 3,
clause (7)(C); and the amounts necessary for repayment of debt service loans and capital
loans, minus the amount of debt service equalization revenue of the district.

new text begin Subd. 2. new text end

new text begin Aid apportionment. new text end

new text begin A district's debt service equalization aid must be
apportioned among the net tax capacity debt service levy, referendum market value, debt
service levy, and the alternative referendum market value debt service levy in the same
proportions as eligible debt service revenues resulting from bonds issued against the
various tax bases.
new text end

new text begin Subd. 3. new text end

new text begin Net tax capacity debt service levy. new text end

new text begin The levy amount determined under
subdivision 1, plus the eligible debt service revenues resulting from bonds issued against
net tax capacity, minus the debt service equalization aid apportioned to the net tax capacity
debt service levy, must be levied against the net tax capacity of the district as determined
under section 273.13 and must be included with the other net tax capacity levies certified
to the county auditor under section 275.07.
new text end

new text begin Subd. 4. new text end

new text begin Referendum market value debt service levy. new text end

new text begin The eligible debt service
revenues resulting from bonds issued against the referendum market value, minus the debt
service equalization aid apportioned to the referendum market value debt service levy, must
be levied against the referendum market value of the district as defined in section 126C.01,
subdivision 3, and must be separately certified to the county auditor under section 275.07.
new text end

new text begin Subd. 5. new text end

new text begin Alternative referendum market value debt service levy. new text end

new text begin The eligible
debt service revenues resulting from bonds issued against the alternative referendum
market value, minus the debt service equalization aid apportioned to the alternative
referendum market value debt service levy, must be levied against the alternative
referendum market value of the district as defined in section 126C.01, subdivision 3a, and
must be separately certified to the county auditor under section 275.07.
new text end

new text begin Subd. 6. new text end

new text begin Refinancing. new text end

new text begin If a school district chooses to refinance its outstanding debt,
the debt service levy on the refinanced bonds must be apportioned against the three tax
bases in proportion to each tax base's debt service levy for the previous year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2016.
new text end

Sec. 4.

Minnesota Statutes 2014, section 123B.71, subdivision 9, is amended to read:

Subd. 9.

Information required.

A school board proposing to construct, expand, or
remodel a facility that requires a review and comment under subdivision 8 shall submit to
the commissioner a proposal containing information including at least the following:

(1) the geographic area and population to be served, preschool through grade 12
student enrollments for the past five years, and student enrollment projections for the
next five years;

(2) a list of existing facilities by year constructed, their uses, and an assessment of
the extent to which alternate facilities are available within the school district boundaries
and in adjacent school districts;

(3) a list of the specific deficiencies of the facility that demonstrate the need for a
new or renovated facility to be provided, the process used to determine the deficiencies, a
list of those deficiencies that will and will not be addressed by the proposed project, and a
list of the specific benefits that the new or renovated facility will provide to the students,
teachers, and community users served by the facility;

(4) a description of the project, including the specification of site and outdoor space
acreage and square footage allocations for classrooms, laboratories, and support spaces;
estimated expenditures for the major portions of the project; and the dates the project will
begin and be completed;

(5) a specification of the source of financing the project, including applicable
statutory citations; the scheduled date for a bond issue or school board action; a schedule of
payments, including debt service equalization aid; new text begin whether the debt service will be levied
against net tax capacity, referendum market value, or alternative referendum market value; new text end
and the effect of a bond issue on local property taxes by the property class and valuation; and

(6) documents obligating the school district and contractors to comply with items (i)
to (vii) in planning and executing the project:

(i) section 471.345 governing municipal contracts;

(ii) sustainable design;

(iii) school facility commissioning under section 123B.72 certifying the plans and
designs for the heating, ventilating, air conditioning, and air filtration for an extensively
renovated or new facility meet or exceed current code standards, including the ASHRAE
air filtration standard 52.1;

(iv) American National Standards Institute Acoustical Performance Criteria, Design
Requirements and Guidelines for Schools on maximum background noise level and
reverberation times;

(v) State Fire Code;

(vi) chapter 326B governing building codes; and

(vii) consultation with affected government units about the impact of the project
on utilities, roads, sewers, sidewalks, retention ponds, school bus and automobile traffic,
access to mass transit, and safe access for pedestrians and cyclists.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 5.

Minnesota Statutes 2014, section 126C.01, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Alternative referendum market value. new text end

new text begin "Alternative referendum market
value" means the referendum market value of all taxable property in a district, except
class 3 property has an alternative referendum market value determined by adding to its
market value an amount equal to 50 percent of the difference between its market value
and its net tax capacity multiplied by 100.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end