HF 999

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to the city of Rochester; providing for
additional uses for the city sales and use tax
revenues; increasing bonding authorization; amending
Laws 1998, chapter 389, article 8, section 43,
subdivisions 3, 4.

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

Section 1.

Laws 1998, chapter 389, article 8, section 43,
subdivision 3, is amended to read:

Subd. 3.

Use of revenues.

Revenues received from the
taxes authorized by subdivisions 1 and 2 must be used by the
city to pay for the cost of collecting and administering the
taxes and to pay for the following projects:

(1) transportation infrastructure improvements including
both highway and airport improvements;

(2) improvements to the civic center complex;

(3) a municipal water, sewer, and storm sewer project
necessary to improve regional ground water quality; and

(4) construction of a regional recreation and sports center
and deleted text begin associated deleted text end new text begin other higher education new text end facilities available for
both community and student use deleted text begin , located at or adjacent to the
Rochester center deleted text end .

The total amount of capital expenditures or bonds for these
projects that may be paid from the revenues raised from the
taxes authorized in this section may not exceed
deleted text begin $71,500,000 deleted text end new text begin $111,500,000 new text end . The total amount of capital
expenditures or bonds for the project in clause (4) that may be
paid from the revenues raised from the taxes authorized in this
section may not exceed deleted text begin $20,000,000 deleted text end new text begin $28,000,000 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 Rochester and its chief clerical officer
timely comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 2.

Laws 1998, chapter 389, article 8, section 43,
subdivision 4, is amended to read:

Subd. 4.

Bonding authority.

(a) The city may issue bonds
under Minnesota Statutes, chapter 475, to finance the capital
expenditure and improvement projects. An election to approve
the bonds under Minnesota Statutes, section 475.58, may be held
in combination with the election to authorize imposition of the
tax under subdivision 1. Whether to permit imposition of the
tax and issuance of bonds may be posed to the voters as a single
question. The question must state that the sales tax revenues
are pledged to pay the bonds, but that the bonds are general
obligations and will be guaranteed by the city's property taxes.

(b) The issuance of bonds under this subdivision is not
subject to Minnesota Statutes, section 275.60.

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

The aggregate principal amount of bonds, plus the aggregate of
the taxes used directly to pay eligible capital expenditures and
improvements may not exceed deleted text begin $71,500,000 deleted text end new text begin $111,500,000 new text end , plus an
amount equal to the costs related to issuance of the bonds.

(d) The taxes may be pledged to and used for the payment of
the bonds and any bonds issued to refund them, only if the bonds
and any refunding bonds are general obligations of the city.

new text begin EFFECTIVE DATE. new text end

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