HF 2054

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

A bill for an act
relating to St. Cloud area cities; authorizing local
option sales taxes; modifying the use of revenues.

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

Section 1. new text begin ST. CLOUD AREA CITIES; SALES AND USE TAX
AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorized. new text end

new text begin (a)
Notwithstanding Minnesota Statutes, sections 297A.99,
subdivision 3, paragraph (d), and 477A.016, or any other
provision of law, ordinance, or city charter, the following
cities may, by ordinance, impose a sales and use tax of one half
of one percent for the purposes specified in subdivision 2:
new text end

new text begin (1) the city of St. Cloud, pursuant to the approval of the
city voters at the general election held on November 2, 2004:
new text end

new text begin (2) the city of St. Joseph, pursuant to the approval of the
city voters at the general election on November 2, 2004;
new text end

new text begin (3) the city of Waite Park, pursuant to the approval of the
city voters at the general election held on November 4, 2003,
and any additional approval by the voters of that city at the
next general election;
new text end

new text begin (4) the city of Sartell, pursuant to the approval of the
city voters at the general election held on November 2, 1999,
and any additional approval at the next general election; and
new text end

new text begin (5) the cities of Sauk Rapids and St. Augusta, pursuant to
the approval of the voters of that city at the next general
election.
new text end

new text begin (b) The provisions of Minnesota Statutes, section 297A.99,
except subdivision 3, paragraph (d), govern the imposition,
administration, collection, and enforcement of the tax
authorized under this subdivision, except as specifically
provided otherwise in this section.
new text end

new text begin Subd. 2. new text end

new text begin Use of revenues. new text end

new text begin (a) Revenues received from the
tax authorized under subdivision 1 must be used for collecting
and administering the taxes and to pay all or part of the
capital and administrative costs of the acquisition,
construction, and improvement of a new regional library located
in the city of St. Cloud. Authorized expenses include, but are
not limited to, acquiring property, paying construction expenses
related to the development of the library, and securing and
paying debt service issued to finance construction or
improvement of the authorized facility. The total amount that
may be spent on this project may not exceed $30,000,000 plus any
debt service costs.
new text end

new text begin (b) If revenues collected from the taxes imposed under
subdivision 1 are greater than the amount needed to meet
obligations under paragraph (a) in any year, the surplus may be
returned to the cities in a manner agreed upon by the
participating cities under an applicable joint powers
agreement. Cities must use revenues received under this
paragraph to fund projects that have been approved by the voters
at the referendum authorizing the tax. Authorized expenses
include, but are not limited to, acquiring property, paying
construction expenses related to the development of the
authorized facility, and securing and paying debt service issued
to finance construction or improvement of the authorized
facility.
new text end

new text begin (c) Notwithstanding any provisions to the contrary
contained in a referendum authorizing the imposition of the tax,
projects that may be funded from revenues distributed under
paragraph (b) are limited to the following:
new text end

new text begin (1) the St. Cloud Regional Airport;
new text end

new text begin (2) regional transportation improvements;
new text end

new text begin (3) community and aquatics centers;
new text end

new text begin (4) regional public libraries; and
new text end

new text begin (5) acquisition and improvement of regional park land,
trails, and open space.
new text end

new text begin (d) The cities of Waite Park and Sartell may use revenues
from the tax imposed in subdivision 1 to fund the library under
paragraph (a) without additional approval by city voters;
however, each city must seek approval of its voters to fund any
other project not approved by the voters at the referendum held
on November 4, 2003, and November 2, 1999, respectively.
new text end

new text begin Subd. 3. new text end

new text begin Allocation of sales and use tax revenues to
cities. new text end

new text begin Revenues collected from the taxes authorized by
subdivision 1, after paying the cost of collecting and
administering the tax, shall be allocated to cities imposing the
tax as follows:
new text end

new text begin (1) the first $900,000 of revenues collected annually,
indexed annually to the Consumer Price Index, to the city of St.
Cloud for the construction and relocation of a regional library
located in the city; and
new text end

new text begin (2) the revenues collected from the taxes imposed under
subdivision 1 that exceed the amount needed to meet the
obligations under clause (1) in any year shall be returned to
the cities pursuant to a joint powers agreement allocating sales
tax revenues among the cities.
new text end

new text begin Subd. 4. new text end

new text begin City bonding authorized. new text end

new text begin The city imposing a
tax under subdivision 1 may issue general obligation bonds to
pay the costs of the projects specified in subdivision 2,
pursuant to the approval of the projects by the city voters at
the election authorizing the imposition of the tax. The bonds
issued for each project are limited to the amount authorized to
be spent on the project in the referendum. 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 or 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

new text begin Subd. 5. new text end

new text begin Termination of tax. new text end

new text begin The tax imposed in a city
under subdivision 1 expires when the city council determines
that sufficient funds have been collected from the tax to retire
or redeem the bonds and obligations authorized under subdivision
2, but no later than .. years after the date the tax is first
imposed. Any funds remaining after completion of the projects
specified in subdivision 2 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 end

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 with Minnesota
Statutes, section 645.021, subdivision 3, for sales and
purchases made on and after January 1, 2006.
new text end