Minnesota Legislature
HF 659
as introduced - 90th Legislature (2017 - 2018) Posted on 01/30/2017 01:27pm
Current Version - as introduced
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A bill for an act
relating to taxation; allowing the city of New Ulm to extend local excise and sales
and use taxes; modifying the use of revenues from the taxes; amending Laws 1999,
chapter 243, article 4, section 17, subdivisions 3, 5, by adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Laws 1999, chapter 243, article 4, section 17, subdivision 3, is amended to
read:
Subd. 3.
Use of revenues.
new text begin (a) new text end Revenues received from taxes authorized by subdivisions
1 and 2 must be used by the city to pay the cost of collecting the taxes and to pay for
construction and improvement of a civic and community center and recreational facilities
to serve all ages, including seniors and youth. Authorized expenses include, but are not
limited to, acquiring property, paying construction and operating expenses related to the
development of an authorized facility, funding facilities replacement reserves, and paying
debt service on bonds or other obligations issued to finance the construction or expansion
of an authorized facility. The capital expenses for all projects authorized under this
subdivision that may be paid with these taxes are limited to $9,000,000, plus an amount
equal to the costs related to issuance of the bonds and funding facilities replacement reserves.
new text begin
(b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
by the voters at the November 8, 2016, general election, the city of New Ulm may by
ordinance also use revenues from taxes authorized under subdivisions 1 and 2, up to a
maximum of $14,800,000, plus associated bond costs, to pay all or a portion of the expenses
of the following capital projects:
new text end
new text begin
(1) constructing an indoor water park and making safety improvements to the existing
recreational center pool;
new text end
new text begin
(2) constructing an indoor playground, a wellness center, and a gymnastics facility;
new text end
new text begin
(3) constructing a winter multipurpose dome;
new text end
new text begin
(4) making improvements to Johnson Park Grandstand; and
new text end
new text begin
(5) making improvements to the entrance road and parking at Hermann Heights Park.
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 New Ulm and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 2.
Laws 1999, chapter 243, article 4, section 17, is amended by adding a subdivision
to read:
new text begin Subd. 4a. new text end
new text begin Bonding authority; additional use and extension of tax. new text end
new text begin
As approved by
the voters at the November 8, 2016, general election, and in addition to the bonds issued
under subdivision 4, the city of New Ulm may issue general obligation bonds of the city in
an amount not to exceed $14,800,000 for the projects listed in subdivision 3, paragraph (b).
The debt represented by bonds under this subdivision shall not be included in computing
any debt limitations applicable to the city of New Ulm, and the levy of taxes required by
Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds, and shall
not be subject to any levy limitation or be included in computing or applying any levy
limitation applicable to the city.
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 New Ulm and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 3.
Laws 1999, chapter 243, article 4, section 17, subdivision 5, is amended to read:
Subd. 5.
Termination of taxes.
The taxes imposed under subdivisions 1 and 2 expire
when the city council determines that sufficient funds have been received from the taxes to
finance the capital and administrative costs for the acquisition, construction, and improvement
of facilities described in subdivision 3new text begin , including the additional use of revenues under
subdivision 3, paragraph (b), as approved by the voters at the November 8, 2016, general
electionnew text end , and to prepay or retire at maturity the principal, interest, and premium due on any
bonds issued for the facilities under deleted text begin subdivision 4deleted text end new text begin subdivisions 4 and 4anew text end . Any funds remaining
after completion of the project and retirement or redemption of the bonds may be placed in
the general fund of the city. The taxes imposed under subdivisions 1 and 2 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 the governing body of the
city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end