1.1 	A bill for an act
1.2 	relating to the city of Rochester; modifying its local sales and use tax authority;
1.3 	amending Laws 1998, chapter 389, article 8, section 43, subdivisions 3, as 
1.4 	amended, 4, as amended, 5, as amended.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by 
1.7 	Laws 2005, First Special Session chapter 3, article 5, section 28, is amended to read:
1.8 		Subd. 3.Use of revenues. (a) Revenues received from the taxes authorized by 
1.9 	subdivisions 1 and 2 must be used by the city to pay for the cost of collecting and 
1.10 	administering the taxes and to pay for the following projects:
1.11 	(1) transportation infrastructure improvements including regional highway and 
1.12 	airport improvements;
1.13 	(2) improvements to the civic center complex;
1.14 	(3) a municipal water, sewer, and storm sewer project necessary to improve regional 
1.15 	ground water quality; and
1.16 	(4) construction of a regional recreation and sports center and other higher education 
1.17 	facilities available for both community and student use.
1.18 	(b) The total amount of capital expenditures or bonds for these projects listed in 
1.19 	paragraph (a) that may be paid from the revenues raised from the taxes authorized in this 
1.20 	section may not exceed $111,500,000. The total amount of capital expenditures or bonds 
1.21 	for the project in clause (4) that may be paid from the revenues raised from the taxes 
1.22 	authorized in this section may not exceed $28,000,000.
1.23 	(c) In addition to the projects authorized in paragraph (a) and not subject to the 
1.24 	amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an 
2.1 	election under subdivision 5, paragraph (c), use the revenues received from the taxes and 
2.2 	bonds authorized in this section to pay the costs of or bonds for the following purposes:
2.3 	(1) $47,000,000 for capital expenditures and bonds for transportation infrastructure 
2.4 	improvements including regional highway and airport improvements, but excluding any 
2.5 	transportation improvements related to a railroad bypass that would divert rail traffic 
2.6 	from the city of Rochester;
2.7 	(2) $26,500,000 for capital expenditures and bonds for higher education facilities in 
2.8 	the city;
2.9 	(3) $40,500,000 for capital expenditures and bonds for improvements to regional 
2.10 	youth and elder community facilities;
2.11 	(4) $8,000,000 for capital expenditures and bonds for construction of regional public 
2.12 	safety facilities; and 
2.13 	(5) $38,000,000 for project expenditures and bonds for any economic development 
2.14 	purposes authorized under Minnesota Statutes, chapter 469.

2.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

2.16 	Sec. 2. Laws 1998, chapter 389, article 8, section 43, subdivision 4, as amended by 
2.17 	Laws 2005, First Special Session chapter 3, article 5, section 29, is amended to read:
2.18 		Subd. 4.Bonding authority. (a) The city may issue bonds under Minnesota 
2.19 	Statutes, chapter 475, to finance the capital expenditure and improvement projects. 
2.20 	An election to approve up to $71,500,000 in bonds under Minnesota Statutes, section 
2.21 	475.58, may be held in combination with the election to authorize imposition of the tax 
2.22 	under subdivision 1. Whether to permit imposition of the tax and issuance of bonds 
2.23 	may be posed to the voters as a single question. The question must state that the sales 
2.24 	tax revenues are pledged to pay the bonds, but that the bonds are general obligations 
2.25 	and will be guaranteed by the city's property taxes. An election to approve up to an 
2.26 	additional $40,000,000 of bonds under Minnesota Statutes, section 475.58, may be held 
2.27 	in combination with the election to authorize extension of the tax under subdivision 5, 
2.28 	paragraph (b). An election to approve bonds under Minnesota Statutes, section 475.58, 
2.29 	in an amount not to exceed $160,000,000 plus an amount equal to the costs of issuance 
2.30 	of the bonds, may be held in combination with the election to authorize the extension of 
2.31 	the tax under subdivision 5, paragraph (c).
2.32 	(b) The city may shall enter into an agreement with Olmsted County under which the 
2.33 	city and the county agree to jointly undertake and finance certain roadway infrastructure 
2.34 	improvements. The agreement may shall provide that the city will make available to the 
2.35 	county a portion of the sales tax revenues collected pursuant to the authority granted in 
3.1 	this section and the bonding authority provided in this subdivision. The county may, 
3.2 	pursuant to the agreement, issue its general obligation bonds in a principal amount not 
3.3 	exceeding the amount authorized by its agreement with the city payable primarily from 
3.4 	the sales tax revenues from the city under the agreement. The county's bonds must be 
3.5 	issued in accordance with the provisions of Minnesota Statutes, chapter 475, except that 
3.6 	no election is required for the issuance of the bonds and the bonds are not included in 
3.7 	the net debt of the county.
3.8 	(b) (c) The issuance of bonds under this subdivision is not subject to Minnesota 
3.9 	Statutes, section 275.60.
3.10 	(c) (d)  The bonds are not included in computing any debt limitation applicable to the 
3.11 	city, and the levy of taxes under Minnesota Statutes, section 475.61, to pay principal of 
3.12 	and interest on the bonds is not subject to any levy limitation.
3.13 	(e) The aggregate principal amount of bonds, plus the aggregate of the taxes used 
3.14 	directly to pay eligible capital expenditures and improvements for projects listed in 
3.15 	subdivision 3, paragraph (a), may not exceed $111,500,000, plus an amount equal to the 
3.16 	costs related to issuance of the bonds. The aggregate principal amount of bonds plus the 
3.17 	aggregate of the taxes used directly to pay the costs of eligible projects under subdivision 
3.18 	3, paragraph (c), may not exceed $160,000,000 plus an amount equal to the costs of 
3.19 	issuance of the bonds.
3.20 	(d) (f) The taxes may be pledged to and used for the payment of the bonds and 
3.21 	any bonds issued to refund them, only if the bonds and any refunding bonds are general 
3.22 	obligations of the city.

3.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

3.24 	Sec. 3. Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by 
3.25 	Laws 2005, First Special Session chapter 3, article 5, section 30, is amended to read:
3.26 		Subd. 5.Termination of taxes. (a) The taxes imposed under subdivisions 1 and 
3.27 	2 expire at the later of (1) December 31, 2009, or (2) when the city council determines 
3.28 	that sufficient funds have been received from the taxes to finance the first $71,500,000 
3.29 	of capital expenditures and bonds for the projects authorized in subdivision 3, including 
3.30 	the amount to prepay or retire at maturity the principal, interest, and premium due on any 
3.31 	bonds issued for the projects under subdivision 4, unless the taxes are extended as allowed 
3.32 	in paragraph (b). Any funds remaining after completion of the project and retirement or 
3.33 	redemption of the bonds shall also be used to fund the projects under subdivision 3. The 
3.34 	taxes imposed under subdivisions 1 and 2 may expire at an earlier time if the city so 
3.35 	determines by ordinance.
4.1 	(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any 
4.2 	other contrary provision of law, ordinance, or city charter, the city of Rochester may, by 
4.3 	ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009, 
4.4 	if approved by the voters of the city at a special election in 2005 or the general election in 
4.5 	2006. The question put to the voters must indicate that an affirmative vote would allow 
4.6 	up to an additional $40,000,000 of sales tax revenues be raised and up to $40,000,000 
4.7 	of bonds to be issued above the amount authorized in the June 23, 1998, referendum for 
4.8 	the projects specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are 
4.9 	extended under this paragraph, the taxes expire when the city council determines that 
4.10 	sufficient funds have been received from the taxes to finance the projects and to prepay 
4.11 	or retire at maturity the principal, interest, and premium due on any bonds issued for the 
4.12 	projects under subdivision 4. Any funds remaining after completion of the project and 
4.13 	retirement or redemption of the bonds may be placed in the general fund of the city.
4.14 	(c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any 
4.15 	other contrary provision of law, ordinance, or city charter, the city of Rochester may, by 
4.16 	ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond the date the city 
4.17 	council determines that sufficient funds have been received from the taxes to finance 
4.18 	$111,500,000 of expenditures and bonds for the projects authorized in subdivision 3, 
4.19 	paragraph (a), plus an amount equal to the costs of issuance of the bonds and including 
4.20 	the amount to prepay or retire at maturity the principal, interest, and premiums due on 
4.21 	any bonds issued for the projects under subdivision 4, paragraph (a), if approved by the 
4.22 	voters of the city at an election to be held on November 8, 2011, or the general election in 
4.23 	2012. If the election to authorize the additional $160,000,000 of bonds plus an amount 
4.24 	equal to the costs of the issuance of the bonds is placed on the general election ballot in 
4.25 	2012, the city may continue to collect the taxes authorized in subdivisions 1 and 2 until 
4.26 	December 31, 2012. The question put to the voters must indicate that an affirmative vote 
4.27 	would allow sales tax revenues be raised for an extended period of time and an additional 
4.28 	$160,000,000 of bonds plus an amount equal to the costs of issuance of the bonds, to be 
4.29 	issued above the amount authorized in the previous elections required under paragraphs 
4.30 	(a) and (b) for the projects and amounts specified in subdivision 3. If the taxes authorized 
4.31 	in subdivisions 1 and 2 are extended under this paragraph, the taxes expire when the city 
4.32 	council determines that sufficient funds have been received from the taxes to finance the 
4.33 	projects and to prepay or retire at maturity the principal, interest, and premium due on any 
4.34 	bonds issued for the projects under subdivision 4, including any bonds issued to refund the 
4.35 	bonds. Any funds remaining after completion of the projects and retirement or redemption 
4.36 	of the bonds may be placed in the general fund of the city.

5.1 	EFFECTIVE DATE. This section is effective the day after compliance by the 
5.2 	governing body of the city of Rochester with Minnesota Statutes, section 645.021, 
5.3 	subdivision 3.