HF 1390

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to local government; authorizing local
governments to issue certificates of indebtedness with
ten-year terms to purchase aerial platform fire
trucks; amending Minnesota Statutes 2004, sections
373.01, subdivision 3; 410.32; 412.301.

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

Section 1.

Minnesota Statutes 2004, section 373.01,
subdivision 3, is amended to read:

Subd. 3.

Capital notes.

new text begin (a) new text end A county board may, by
resolution and without referendum, issue capital notes subject
to the county debt limit to purchase capital equipment useful
for county purposes that has an expected useful life at least
equal to the term of the notes. new text begin Except as provided in paragraph
(b), new text end the notes shall be payable in not more than five years and
shall be issued on terms and in a manner the board determines.
A tax levy shall be made for payment of the principal and
interest on the notes, in accordance with section 475.61, as in
the case of bonds. For purposes of this subdivision, "capital
equipment" means public safety, ambulance, road construction or
maintenance, and medical equipment, and computer hardware and
original operating system software. The authority to issue
capital notes for original operating systems software expires on
July 1, 2005.

new text begin (b) Capital notes issued for the purchase of aerial
platform fire trucks may be payable in not more than ten years.
new text end

Sec. 2.

Minnesota Statutes 2004, section 410.32, is
amended to read:

410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL
EQUIPMENT.

new text begin (a) new text end Notwithstanding any contrary provision of other law or
charter, a home rule charter city may, by resolution and without
public referendum, issue capital notes subject to the city debt
limit to purchase public safety equipment, ambulance and other
medical equipment, road construction and maintenance equipment,
and other capital equipment and computer hardware and original
operating system software, provided the equipment or software
has an expected useful life at least as long as the term of the
notes. The authority to issue capital notes for original
operating system software expires on July 1, 2005. new text begin Except as
provided in paragraph (b), new text end the notes shall be payable in not
more than five years and be issued on terms and in the manner
the city determines. The total principal amount of the capital
notes issued in a fiscal year shall not exceed 0.03 percent of
the market value of taxable property in the city for that year.
A tax levy shall be made for the payment of the principal and
interest on the notes, in accordance with section 475.61, as in
the case of bonds. Notes issued under this section shall
require an affirmative vote of two-thirds of the governing body
of the city. Notwithstanding a contrary provision of other law
or charter, a home rule charter city may also issue capital
notes subject to its debt limit in the manner and subject to the
limitations applicable to statutory cities pursuant to section
412.301.

new text begin (b) Capital notes issued for the purchase of aerial
platform fire trucks may be payable in not more than ten years.
new text end

Sec. 3.

Minnesota Statutes 2004, section 412.301, is
amended to read:

412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.

new text begin (a) new text end The council may issue certificates of indebtedness or
capital notes subject to the city debt limits to purchase public
safety equipment, ambulance equipment, road construction or
maintenance equipment, and other capital equipment and computer
hardware and original operating system software, provided the
equipment or software has an expected useful life at least as
long as the terms of the certificates or notes. The authority
to issue capital notes for original operating system software
expires on July 1, 2005. new text begin Except as provided in paragraph (b),
new text end such certificates or notes shall be payable in not more than
five years and shall be issued on such terms and in such manner
as the council may determine. If the amount of the certificates
or notes to be issued to finance any such purchase exceeds 0.25
percent of the market value of taxable property in the city,
they shall not be issued for at least ten days after publication
in the official newspaper of a council resolution determining to
issue them; and if before the end of that time, a petition
asking for an election on the proposition signed by voters equal
to ten percent of the number of voters at the last regular
municipal election is filed with the clerk, such certificates or
notes shall not be issued until the proposition of their
issuance has been approved by a majority of the votes cast on
the question at a regular or special election. A tax levy shall
be made for the payment of the principal and interest on such
certificates or notes, in accordance with section 475.61, as in
the case of bonds.

new text begin (b) Capital notes issued for the purchase of aerial
platform fire trucks may be payable in not more than ten years.
new text end