HF 1414

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

A bill for an act
relating to education finance; allowing school boards
to elect to levy debt service against referendum
market value; amending Minnesota Statutes 2004,
sections 123B.53, subdivision 4, by adding a
subdivision; 123B.55; 123B.71, subdivision 9; 126C.01,
by adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 123B.53, is
amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Debt service levies; choice of tax base. new text end

new text begin A
school board may by resolution elect to levy the debt service
for a bond issued after July 1, 2005, against the alternative
referendum market value of the district, as defined under
section 126C.01, subdivision 3a, rather than the net tax
capacity of the district. A resolution to levy against the
alternative referendum market value must be passed at an open
meeting of the board, at least 60 days prior to the referendum
election.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2004, section 123B.53,
subdivision 4, is amended to read:

Subd. 4.

Debt service equalization revenue.

(a) The debt
service equalization revenue of a district equals the sum of the
first tier debt service equalization revenue and the second tier
debt service equalization revenue.

(b) The first tier debt service equalization revenue of a
district equals the greater of zero or the eligible debt service
revenue minus the amount raised by a levy of 15 percent times
the adjusted net tax capacity of the district minus the second
tier debt service equalization revenue of the district.

(c) The second tier debt service equalization revenue of a
district equals the greater of zero or the eligible debt service
revenue, excluding alternative facilities levies under section
123B.59, subdivision 5, minus the amount raised by a levy of 25
percent times the adjusted net tax capacity of the district.

new text begin (d) Debt service equalization revenue is determined as
provided under this subdivision regardless of whether the debt
service is being levied against net tax capacity or the
alternative referendum market value.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 3.

Minnesota Statutes 2004, section 123B.55, is
amended to read:

123B.55 DEBT SERVICE LEVY.

new text begin Subdivision 1. new text end

new text begin Levy amount. new text end

A district may levy the
amounts necessary to make payments for bonds issued and for
interest on them, including the bonds and interest on them,
issued as authorized by Minnesota Statutes 1974, section
275.125, subdivision 3, clause (7)(C); and the amounts necessary
for repayment of debt service loans and capital loans, minus the
amount of debt service equalization revenue of the district.

new text begin Subd. 2. new text end

new text begin Aid apportionment. new text end

new text begin A district's debt service
equalization aid must be apportioned between the net tax
capacity debt service levy and the alternative referendum market
value debt service levy in the same proportions as eligible debt
service revenues resulting from bonds issued against net tax
capacity are to eligible debt service revenues resulting from
bonds issued against the alternative referendum market value.
new text end

new text begin Subd. 3. new text end

new text begin Net tax capacity debt service levy. new text end

new text begin The levy
amount determined under subdivision 1, plus the eligible debt
service revenues resulting from bonds issued against net tax
capacity, minus the debt service equalization aid apportioned to
the net tax capacity debt service levy, must be levied against
the net tax capacity of the district as determined under section
273.13 and must be included with the other net tax capacity
levies certified to the county auditor under section 275.07.
new text end

new text begin Subd. 4. new text end

new text begin Alternative referendum market value debt service
levy. new text end

new text begin The eligible debt service revenues resulting from bonds
issued against the alternative referendum market value, minus
the debt service equalization aid apportioned to the alternative
referendum market value debt service levy, must be levied
against the alternative referendum market value of the district
as defined in section 126C.01, subdivision 3a, and must be
separately certified to the county auditor under section 275.07.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with
taxes payable in 2006.
new text end

Sec. 4.

Minnesota Statutes 2004, section 123B.71,
subdivision 9, is amended to read:

Subd. 9.

Information required.

A school board proposing
to construct a facility described in subdivision 8 shall submit
to the commissioner a proposal containing information including
at least the following:

(1) the geographic area and population to be served,
preschool through grade 12 student enrollments for the past five
years, and student enrollment projections for the next five
years;

(2) a list of existing facilities by year constructed,
their uses, and an assessment of the extent to which alternate
facilities are available within the school district boundaries
and in adjacent school districts;

(3) a list of the specific deficiencies of the facility
that demonstrate the need for a new or renovated facility to be
provided, and a list of the specific benefits that the new or
renovated facility will provide to the students, teachers, and
community users served by the facility;

(4) the relationship of the project to any priorities
established by the school district, educational cooperatives
that provide support services, or other public bodies in the
service area;

(5) a specification of how the project will increase
community use of the facility and whether and how the project
will increase collaboration with other governmental or nonprofit
entities;

(6) a description of the project, including the
specification of site and outdoor space acreage and square
footage allocations for classrooms, laboratories, and support
spaces; estimated expenditures for the major portions of the
project; and the dates the project will begin and be completed;

(7) a specification of the source of financing the project;
the scheduled date for a bond issue or school board action; a
schedule of payments, including debt service equalization aid;
new text begin whether the debt service will be levied against net tax capacity
or the alternative referendum market value; new text end and the effect of a
bond issue on local property taxes by the property class and
valuation;

(8) an analysis of how the proposed new or remodeled
facility will affect school district operational or
administrative staffing costs, and how the district's operating
budget will cover any increased operational or administrative
staffing costs;

(9) a description of the consultation with local or state
road and transportation officials on school site access and
safety issues, and the ways that the project will address those
issues;

(10) a description of how indoor air quality issues have
been considered and a certification that the architects and
engineers designing the facility will have professional
liability insurance;

(11) as required under section 123B.72, for buildings
coming into service after July 1, 2002, a certification that the
plans and designs for the extensively renovated or new
facility's heating, ventilation, and air conditioning systems
will meet or exceed code standards; will provide for the
monitoring of outdoor airflow and total airflow of ventilation
systems; and will provide an indoor air quality filtration
system that meets ASHRAE standard 52.1;

(12) a specification of any desegregation requirements that
cannot be met by any other reasonable means; and

(13) a specification, if applicable, of how the facility
will utilize environmentally sustainable school facility design
concepts.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 5.

Minnesota Statutes 2004, section 126C.01, is
amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Alternative referendum market
value. new text end

new text begin "Alternative referendum market value" means the market
value of all taxable property in a district, except:
new text end

new text begin (1) class 2 property is excluded, other than the portion of
class 2a property consisting of the house, garage, and
surrounding one acre of land of an agricultural homestead; and
new text end

new text begin (2) class 3 property has an alternative referendum market
value determined by adding to its market value an amount equal
to 50 percent of the difference between its market value and its
net tax capacity multiplied by 100.
new text end