SF 1093

Introduction - 85th Legislature (2007 - 2008)

Posted on 12/15/2009 12:00 a.m.

A bill for an act
relating to the city of Bemidji; extending its local sales and use tax; amending
Laws 2005, First Special Session chapter 3, article 5, section 39.

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

Section 1.

Laws 2005, First Special Session chapter 3, article 5, section 39, is amended
to read:

Sec. 39. CITY OF BEMIDJI.

Subdivision 1.

Sales and use tax authorized.

Notwithstanding Minnesota Statutes,
section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the
approval of the city voters at the general election held on November 5, 2002, new text begin and at the
general election held November 7, 2006, new text end the city of Bemidji may impose by ordinance
a sales and use tax of one-half of one percent for the purposes specified in subdivision
2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.

Subd. 2.

Use of revenues.

Revenues received from the tax authorized by
subdivision 1 must be used for the cost of collecting and administering the tax and to pay
new text begin for the projects listed in this subdivision:
new text end

new text begin (1) To pay new text end all or part of the capital or administrative costs of the acquisition,
construction, and improvement of parks and trails within the city, as provided for in the
city of Bemidji's parks, open space, and trail system plan, adopted by the Bemidji City
Council on November 21, 2001. Authorized expenses include, but are not limited to,
acquiring property, paying construction expenses related to the development of these
facilities and improvements, and securing and paying debt service on bonds or other
obligations issued to finance acquisition, construction, improvement, or development of
parks and trails within the city of Bemidji.

new text begin (2) To pay all or part of the city's share of costs for acquisition, design, and
construction of a regional event center, not to exceed $50,000,000 plus any associated
bond costs. Authorized expenses include, but are not limited to, acquiring property,
paying demolition and construction expenses, improving associated infrastructure, and
purchasing furniture, fixtures, and equipment for the regional event center, and securing
and paying debt service on bonds or other obligations issued to finance the regional event
center project.
new text end

Subd. 3.

Bonds.

new text begin (a) new text end Pursuant to the approval of the city voters at the general
election held on November 5, 2002, the city of Bemidji may issue, without an additional
election, general obligation bonds of the city in an amount not to exceed $9,826,000 to
pay capital and administrative expenses for the acquisition, construction, improvement,
and development of parks and trails as specified in subdivision 2. The debt represented by
the bonds must not be included in computing any debt limitations applicable to the city,
and the levy of taxes required by Minnesota Statutes, section 475.61, to pay the principal
of any interest on the bonds must not be subject to any levy limitations or be included in
computing or applying any levy limitation applicable to the city.

new text begin (b) Pursuant to the approval of the city voters at the general election held on
November 7, 2006, the city of Bemidji may issue, without an additional election, general
obligation bonds of the city in an amount not to exceed $50,000,000 to pay capital and
administrative expenses for the acquisition, construction, improvement, and development
of the regional event center specified in subdivision 2. The debt represented by the bonds
must not be included in computing any debt limitations applicable to the city, and the levy
of taxes required by Minnesota Statutes, section , to pay the principal of any interest
on the bonds must not be subject to any levy limitations or be included in computing or
applying any levy limitation applicable to the city.
new text end

Subd. 4.

Termination of tax.

The tax imposed under subdivision 1 expires
when the Bemidji City Council determines that the amount described in subdivision 3 new text begin ,
paragraph (a), new text end has been received from the tax to finance the capital and administrative
costs for acquisition, construction, improvement, and development of parks and trails and
to repay or retire at maturity the principal, interest, and premium due on any bonds issued
for the park and trail improvements under subdivision 3 new text begin , paragraph (a), plus the earlier
of (1) 30 years, or (2) when the city council first determines that the additional revenues
received from the extension of the tax equals or exceeds the amount authorized to be spent
for the regional event center under subdivision 2, clause (2) new text end . Any funds remaining after
completion of the deleted text begin park and trail improvements deleted text end new text begin authorized projects new text end and retirement or
redemption of the bonds may be placed in the general fund of the city. The tax imposed
under subdivision 1 may expire at an earlier time if the city so determines by ordinance.

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 Bemidji and its chief clerical officer with Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end