1.1 	A bill for an act
1.2 	relating to St. Cloud area cities; authorizing local
1.3 	option sales taxes; modifying the use of revenues;
1.4 	authorizing the cities to impose a sales tax.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. ST. CLOUD AREA CITIES; SALES AND USE TAX
1.7 	AUTHORIZED.
 1.8 		Subdivision 1.Sales and use tax authorized. (a)
1.9 	Notwithstanding Minnesota Statutes, sections 297A.99,
1.10 	subdivision 3, paragraph (d), and 477A.016, or any other
1.11 	provision of law, ordinance, or city charter, the following
1.12 	cities may, by ordinance, impose a sales and use tax of one half
1.13 	of one percent for the purposes specified in subdivision 2:
1.14 	(1) the city of St. Cloud, pursuant to the approval of the
1.15 	city voters at the general election held on November 2, 2004:
1.16 	(2) the city of St. Joseph, pursuant to the approval of the
1.17 	city voters at the general election on November 2, 2004;
1.18 	(3) the city of Waite Park, pursuant to the approval of the
1.19 	city voters at the general election held on November 4, 2003,
1.20 	and any additional approval by the voters of that city at the
1.21 	next general election;
1.22 	(4) the city of Sartell, pursuant to the approval of the
1.23 	city voters at the general election held on November 2, 1999,
1.24 	and any additional approval at the next general election; and 
1.25 	(5) the cities of Sauk Rapids and St. Augusta, pursuant to
2.1 	the approval of the voters of that city at the next general
2.2 	election.
2.3 	(b) The provisions of Minnesota Statutes, section 297A.99,
2.4 	except subdivision 3, paragraph (d), govern the imposition,
2.5 	administration, collection, and enforcement of the tax
2.6 	authorized under this subdivision.
2.7 		Subd. 2.Use of revenues. (a) Revenues received from the
2.8 	tax authorized under subdivision 1 must be used for collecting
2.9 	and administering the taxes and to pay all or part of the
2.10 	capital and administrative costs of the acquisition,
2.11 	construction, and improvement of a new regional library located
2.12 	in the city of St. Cloud.  Authorized expenses include, but are
2.13 	not limited to, acquiring property, paying construction expenses
2.14 	related to the development of the library, and securing and
2.15 	paying debt service issued to finance construction or
2.16 	improvement of the authorized facility.  The total amount that
2.17 	may be spent on this project may not exceed $30,000,000 plus any
2.18 	debt service costs.
2.19 	(b) If revenues collected from the taxes imposed under
2.20 	subdivision 1 are greater than the amount needed to meet
2.21 	obligations under paragraph (a) in any year, the surplus may be
2.22 	returned to the cities in a manner agreed upon by the
2.23 	participating cities under an applicable joint powers
2.24 	agreement.  Cities must use revenues received under this
2.25 	paragraph to fund projects that have been approved by the voters
2.26 	at the referendum authorizing the tax.  Authorized expenses
2.27 	include, but are not limited to, acquiring property, paying
2.28 	construction expenses related to the development of the
2.29 	authorized facility, and securing and paying debt service issued
2.30 	to finance construction or improvement of the authorized
2.31 	facility.
2.32 	(c) Notwithstanding any provisions to the contrary
2.33 	contained in a referendum authorizing the imposition of the tax,
2.34 	projects that may be funded from revenues distributed under
2.35 	paragraph (b) are limited to the following:
2.36 	(1) the St. Cloud Regional Airport;
3.1 	(2) regional transportation improvements;
3.2 	(3) community and aquatics centers;
3.3 	(4) regional public libraries; and 
3.4 	(5) acquisition and improvement of regional park land,
3.5 	trails, and open space.
3.6 	(d) The cities of Waite Park and Sartell may use revenues
3.7 	from the tax imposed in subdivision 1 to fund the library under
3.8 	paragraph (a) without additional approval by city voters;
3.9 	however, each city must seek approval of its voters to fund any
3.10 	other project not approved by the voters at the referendum held
3.11 	on November 4, 2003, and November 2, 1999, respectively.
3.12 		Subd. 3.Allocation of sales and use tax revenues to
3.13 	cities. Revenues collected from the taxes authorized by
3.14 	subdivision 1, after paying the cost of collecting and
3.15 	administering the tax, shall be allocated to cities imposing the
3.16 	tax as follows:
3.17 	(1) the first $900,000 of revenues collected annually,
3.18 	indexed annually to the Consumer Price Index, to the city of St.
3.19 	Cloud for the construction and relocation of a regional library
3.20 	located in the city; and 
3.21 	(2) the revenues collected from the taxes imposed under
3.22 	subdivision 1 that exceed the amount needed to meet the
3.23 	obligations under clause (1) in any year shall be returned to
3.24 	the cities pursuant to a joint powers agreement allocating sales
3.25 	tax revenues among the cities.
3.26 		Subd. 4.City bonding authorized. The city imposing a
3.27 	tax under subdivision 1 may issue general obligation bonds to
3.28 	pay the costs of the projects specified in subdivision 2,
3.29 	pursuant to the approval of the projects by the city voters at
3.30 	the election authorizing the imposition of the tax.  The bonds
3.31 	issued for each project are limited to the amount authorized to
3.32 	be spent on the project in the referendum.  The debt represented
3.33 	by the bonds must not be included in computing any debt
3.34 	limitations applicable to the city, and the levy of taxes
3.35 	required by Minnesota Statutes, section 475.61, to pay the
3.36 	principal or any interest on the bonds must not be subject to
4.1 	any levy limitations or be included in computing or applying any
4.2 	levy limitation applicable to the city.
4.3 		Subd. 5.Termination of tax. The tax imposed in a city
4.4 	under subdivision 1 expires when the city council determines
4.5 	that sufficient funds have been collected from the tax to retire
4.6 	or redeem the bonds and obligations authorized under subdivision
4.7 	2, but no later than 17 years after the date the tax is first
4.8 	imposed.  Any funds remaining after completion of the projects
4.9 	specified in subdivision 2 and retirement or redemption of the
4.10 	bonds may be placed in the general fund of the city.  The tax
4.11 	imposed under subdivision 1 may expire at an earlier time if the
4.12 	city so determines by ordinance.
4.13 	
EFFECTIVE DATE. This section is effective the day after
4.14 	compliance by the governing body of the city with Minnesota
4.15 	Statutes, section 645.021, subdivision 3, for sales and
4.16 	purchases made on and after January 1, 2006.