HF 2081

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to education finance; specifying the 
  1.3             calculation to determine an excess in the debt 
  1.4             redemption fund; authorizing certain fund transfers; 
  1.5             amending Minnesota Statutes 2000, sections 123B.80, 
  1.6             subdivision 1; 475.61, subdivision 3.  
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 123B.80, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [COMMISSIONER'S AUTHORIZATION.] The 
  1.11  commissioner may authorize a board to transfer money from any 
  1.12  fund or account other than the debt redemption fund to another 
  1.13  fund or account according to this section. 
  1.14     Sec. 2.  Minnesota Statutes 2000, section 475.61, 
  1.15  subdivision 3, is amended to read: 
  1.16     Subd. 3.  [IRREVOCABILITY.] (a) Tax levies so made and 
  1.17  filed shall be irrevocable, except as provided in this 
  1.18  subdivision. 
  1.19     (b) For purposes of this subdivision, "excess debt 
  1.20  redemption fund balance" means the greater of zero or the 
  1.21  balance in the district's debt redemption fund as of June 30 of 
  1.22  the fiscal year ending in the year before the year the levy is 
  1.23  certified, minus any debt redemption fund balance attributable 
  1.24  to refunding of existing bonds, minus the amount of the levy 
  1.25  reduction for the current year and the prior year under 
  1.26  paragraphs (e) and (f), minus five percent of the district's 
  2.1   required debt service levy for the next year. 
  2.2      (c) By July 15 each year, a district shall report to the 
  2.3   commissioner of children, families, and learning the amount of 
  2.4   the districts' debt redemption fund balance as of June 30 of the 
  2.5   prior year attributable to refunding of existing bonds.  
  2.6      (d) By August 15 each year, the commissioner shall 
  2.7   determine the excess debt redemption fund balance for each 
  2.8   school district, and shall certify the amount of the excess 
  2.9   balance to the school district superintendent.  
  2.10     (e) In each year when there is on hand any a district has 
  2.11  an excess amount in the debt redemption fund of a school 
  2.12  district at the time the district makes its property tax levies, 
  2.13  the amount of the excess shall be certified by the school board 
  2.14  to the commissioner. balance, the commissioner shall report the 
  2.15  amount of the excess to the county auditor and the auditor shall 
  2.16  reduce the tax levy otherwise to be included in the rolls next 
  2.17  prepared by the amount certified.  The commissioner shall 
  2.18  prescribe the form and calculation to be used in computing the 
  2.19  excess amount.  
  2.20     (f) The school board may, with the approval of the 
  2.21  commissioner, retain all or part of the excess amount balance if 
  2.22  it is necessary to ensure the prompt and full payment of the 
  2.23  obligations and any call premium on the obligations, or will be 
  2.24  used for redemption of the obligations in accordance with their 
  2.25  terms.  A school district requesting authority to retain all or 
  2.26  part of the excess balance shall provide written documentation 
  2.27  to the commissioner describing the rationale for its request by 
  2.28  September 15.  A school district that retains an excess may 
  2.29  request to transfer the excess to its operating capital account 
  2.30  in the general fund under section 123B.80.  The school board 
  2.31  may, with the approval of the commissioner, specify a tax levy 
  2.32  in a higher amount if necessary because of anticipated tax 
  2.33  delinquency or for cash flow needs to meet the required payments 
  2.34  from the debt redemption fund.  
  2.35     (g) If the governing body, including the governing body of 
  2.36  a school district, in any year makes an irrevocable 
  3.1   appropriation to the debt service fund of money actually on hand 
  3.2   or if there is on hand any excess amount in the debt service 
  3.3   fund, the recording officer may certify to the county auditor 
  3.4   the fact and amount thereof and the auditor shall reduce by the 
  3.5   amount so certified the amount otherwise to be included in the 
  3.6   rolls next thereafter prepared.