HF 2198

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/27/2023 03:05pm

A bill for an act
relating to local taxes; modifying the local sales and use tax for the city of Fergus
Falls; amending Laws 2021, First Special Session chapter 14, article 8, section 6,
subdivisions 2, 3.

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

Section 1.

Laws 2021, First Special Session chapter 14, article 8, section 6, subdivision
2, is amended to read:

Subd. 2.

Use of sales and use tax revenues.

new text begin (a) new text end The revenues derived from the tax
authorized under subdivision 1 must be used by the city of Fergus Falls to pay the costs of
collecting and administering the tax and for the following projects in the city, including
securing and paying debt service, on bonds issued to finance all or part of the following
projects:

(1) $7,800,000 for an aquatics center; and

(2) $5,200,000 for the DeLagoon Improvement Project.

new text begin (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
by the voters at the November 8, 2022, general election, the city of Fergus Falls may by
ordinance increase the cost for the project in paragraph (a), clause (1), by up to $3,000,000,
without holding another local election.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Fergus Falls and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 2.

Laws 2021, First Special Session chapter 14, article 8, section 6, subdivision 3, is
amended to read:

Subd. 3.

Bonding authority.

(a) The city of Fergus Falls may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
authorized in subdivision 2, and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed:

(1) $7,800,000 for the project listed in subdivision 2, clause (1), plus an amount needed
to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
the bonds; and

(2) $5,200,000 for the project listed in subdivision 2, clause (2), plus an amount needed
to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
the bonds.

(b) The bonds may be paid from or secured by any funds available to the city of Fergus
Falls, including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

(c) The bonds are not included in computing any debt limitation applicable to the city
of Fergus Falls, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.

new text begin (d) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
by the voters at the November 8, 2022, general election, the city of Fergus Falls may by
ordinance increase the amount of bonding for the project in paragraph (a), clause (1), by up
to $3,000,000, without holding another local election.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Fergus Falls and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end