HF 2268

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to public finance; providing terms and conditions related to the issuance
of obligations and the financing of public improvements and services; extending
the time for certain publications of notices; amending Minnesota Statutes 2006,
sections 118A.03, subdivision 3; 123B.61; 204B.46; 331A.05, subdivision
2; 365A.02; 365A.04; 365A.08; 365A.095; 373.01, subdivision 3; 375B.09;
383B.117, subdivision 2; 410.32; 412.301; 428A.02, subdivision 1; 453A.02,
subdivision 3; 473.39, by adding a subdivision; 475.58, subdivision 3b;
proposing coding for new law in Minnesota Statutes, chapter 475.

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

Section 1.

Minnesota Statutes 2006, section 118A.03, subdivision 3, is amended to read:

Subd. 3.

Amount.

The total amount of the collateral computed at its market value
shall be at least ten percent more than the amount on deposit deleted text begin plus accrued interest deleted text end at
the close of the financial institution's banking day, except that where the collateral is
irrevocable standby letters of credit issued by Federal Home Loan Banks, the amount of
collateral shall be at least equal to the amount on deposit deleted text begin plus accrued interest deleted text end at the close
of the financial institution's banking day. The financial institution may furnish both a
surety bond and collateral aggregating the required amount.

Sec. 2.

Minnesota Statutes 2006, section 123B.61, is amended to read:

123B.61 PURCHASE OF CERTAIN EQUIPMENT.

The board of a district may issue general obligation certificates of indebtedness
or capital notes subject to the district debt limits to: (a) purchase vehicles, computers,
telephone systems, cable equipment, photocopy and office equipment, technological
equipment for instruction, and other capital equipment having an expected useful life at
least as long as the terms of the certificates or notes; (b) purchase computer hardware and
software, without regard to its expected useful life, whether bundled with machinery or
equipment or unbundled, together with application development services and training
related to the use of the computer; and (c) prepay special assessments. The certificates or
notes must be payable in not more than deleted text begin five deleted text end new text begin ten new text end years and must be issued on the terms
and in the manner determined by the board, except that certificates or notes issued to
prepay special assessments must be payable in not more than 20 years. The certificates
or notes may be issued by resolution and without the requirement for an election. The
certificates or notes are general obligation bonds for purposes of section 126C.55. A tax
levy must be made for the payment of the principal and interest on the certificates or
notes, in accordance with section 475.61, as in the case of bonds. The sum of the tax
levies under this section and section 123B.62 for each year must not exceed the lesser
of the amount of the district's total operating capital revenue or the sum of the district's
levy in the general and community service funds excluding the adjustments under this
section for the year preceding the year the initial debt service levies are certified. The
district's general fund levy for each year must be reduced by the sum of (1) the amount
of the tax levies for debt service certified for each year for payment of the principal and
interest on the certificates or notes issued under this section as required by section 475.61,
(2) the amount of the tax levies for debt service certified for each year for payment of the
principal and interest on bonds issued under section 123B.62, and (3) any excess amount
in the debt redemption fund used to retire bonds, certificates, or notes issued under this
section or section 123B.62 after April 1, 1997, other than amounts used to pay capitalized
interest. If the district's general fund levy is less than the amount of the reduction, the
balance shall be deducted first from the district's community service fund levy, and next
from the district's general fund or community service fund levies for the following year. A
district using an excess amount in the debt redemption fund to retire the certificates or
notes shall report the amount used for this purpose to the commissioner by July 15 of the
following fiscal year. A district having an outstanding capital loan under section 126C.69
or an outstanding debt service loan under section 126C.68 must not use an excess amount
in the debt redemption fund to retire the certificates or notes.

Sec. 3.

Minnesota Statutes 2006, section 204B.46, is amended to read:

204B.46 MAIL ELECTIONS; QUESTIONS.

A county, municipality, or school district submitting questions to the voters at a
special election may apply to the county auditor for approval of an election by mail with
no polling place other than the office of the auditor or clerk. No deleted text begin more than two questions
may be submitted at a mail election and no deleted text end offices may be voted on new text begin at a mail election new text end .
Notice of the election and the special mail procedure must be given at least six weeks prior
to the election. No earlier than 20 or later than 14 days prior to the election, the auditor
or clerk shall mail ballots by nonforwardable mail to all voters registered in the county,
municipality, or school district. Eligible voters not registered at the time the ballots are
mailed may apply for ballots pursuant to chapter 203B.

Sec. 4.

Minnesota Statutes 2006, section 331A.05, subdivision 2, is amended to read:

Subd. 2.

Time of notice.

Unless otherwise specified by deleted text begin a particular statute deleted text end new text begin law new text end , or
by order of a court, publication of a public notice shall be as follows:

(a) the notice shall be published once;

(b) if the notice is intended to inform the public about a future event, the last
publication shall occur not more than deleted text begin 14 deleted text end new text begin 30 new text end days and not less than seven days before
the event;

(c) if the notice is intended to inform the public about a past action or event, the last
publication shall occur not more than 45 days after occurrence of the action or event.

Sec. 5.

Minnesota Statutes 2006, section 365A.02, is amended to read:

365A.02 deleted text begin DEFINITION deleted text end new text begin DEFINITIONS new text end .

new text begin Subdivision 1. new text end

new text begin Subordinate service district. new text end

"Subordinate service district" means a
defined area within the town in which deleted text begin one or more governmental services or additions to
townwide deleted text end new text begin special new text end services are provided deleted text begin by the town specially for the area and financed
from revenues from the area deleted text end . The boundaries of a single subordinate service district
may not embrace an entire town.

new text begin Subd. 2. new text end

new text begin Special services. new text end

new text begin "Special services" means one or more governmental
services or additions to townwide services provided by the town specially for the area
and financed from revenues from the area.
new text end

Sec. 6.

Minnesota Statutes 2006, section 365A.04, is amended to read:

365A.04 CREATION deleted text begin BY PETITION deleted text end .

Subdivision 1.

Petition.

A petition signed by at least 50 percent of the property
owners in the part of the town proposed for the subordinate service district may be
submitted to the town board requesting the establishment of a subordinate service district
to provide a service that the town is otherwise authorized by law to provide. The petition
must include the territorial boundaries of the proposed district and specify the kinds of
services to be provided within the district.

new text begin Subd. 1a. new text end

new text begin Creation by town board. new text end

new text begin The town board may establish a subordinate
service district in a portion of the town by adoption of a resolution, subject to the
requirements of subdivision 2.
new text end

Subd. 2.

Public hearing.

Upon receipt of the petition, and the verification of the
signatures by the town clerk new text begin or prior to adoption of the resolution specified in subdivision
1a new text end , the town board shall, within 30 days following verification new text begin or prior to adoption of the
resolution specified in subdivision 1a new text end , hold a public hearing on the question of whether or
not the requested district shall be established. new text begin The notice of public hearing must specify
the special services to be provided within the subordinate service district and must specify
the territorial boundaries of the requested district. The notice of public hearing must be
published once in a newspaper of general circulation in the town at least 14 days prior
to the date of the public hearing.
new text end

Subd. 3.

Approval; disapproval.

Within 30 days after the public hearing, the
town board by resolution shall approve or disapprove the establishment of the requested
district. new text begin An approving resolution must specify the special services to be provided within
the subordinate service district and must specify the territorial boundaries of the district.
new text end A resolution approving the establishment of the district may contain amendments or
modifications of the district's boundaries or functions as set forth in the petition new text begin or the
resolution specified in subdivision 1a new text end .

Sec. 7.

Minnesota Statutes 2006, section 365A.08, is amended to read:

365A.08 FINANCING.

new text begin Subdivision 1. new text end

new text begin Budget. new text end

new text begin (a) new text end Upon adoption of the next annual budget following
the creation of a subordinate service district the town board shall include in the budget
appropriate provisions for the operation of the district including either a property tax
levied only on property deleted text begin of the users of the service deleted text end within the boundaries of the district
or a levy of a service charge against the users of the service within the district, or a
combination of a property tax and a service charge on the users of the service.

new text begin (b) new text end A tax or service charge or a combination of them may be imposed to finance a
function or service in the district that the town ordinarily provides throughout the town
only to the extent that there is an increase in the level of the function or service provided
in the service district over that provided throughout the town. In that case, in addition
to the townwide tax levy, an amount necessary to pay for the increase in the level of the
function or service may be imposed in the district.

new text begin Subd. 2. new text end

new text begin Bonds. new text end

new text begin At any time after the requirements of section 356A.06 have been
met and the subordinate service district created, the town board may issue obligations
in an amount it deems necessary to defray in whole or in part the expense incurred
and estimated to be incurred in making capital improvements necessary to operate the
subordinate service district and provide the special services in the district, including every
item of cost from inception to completion and all fees and expenses incurred in connection
with the capital improvements or the financing. The obligations are payable primarily
out of the proceeds of the taxes and service charges imposed under subdivision 1, net
revenues as described in section 444.075, and special assessments under chapter 429. The
town board may by resolution pledge the full faith credit and taxing power of the town
to ensure payment of the principal and interest on the obligations if the proceeds of the
taxes and service charges are insufficient to pay the principal and interest. Obligations
must be issued in accordance with chapter 475, except that an election is not required, and
the amount of the obligations is not included in determining the net indebtedness of the
town under the provisions of any law limiting indebtedness.
new text end

new text begin Subd. 3. new text end

new text begin Covenants to secure obligations. new text end

new text begin In resolutions authorizing the issuance
of general or special obligations and pledging taxes and service charges imposed under
subdivision 1, net revenues, or special assessments to their payment, the town board
may make covenants for the protection of holders of the obligations and taxpayers of the
town as it deems necessary, including a covenant that the town will impose and collect
charges of the nature authorized by this chapter at the time and in the amounts required to
produce, together with any taxes or special assessments designated as a primary source
of payment of the obligations, funds adequate to pay all principal and interest when due
on the obligations, and to create and maintain reserves securing the payments as may be
provided in the resolutions.
new text end

Sec. 8.

Minnesota Statutes 2006, section 365A.095, is amended to read:

365A.095 PETITION FOR REMOVAL OF DISTRICT; PROCEDURE.

new text begin Subdivision 1. new text end

new text begin Petition. new text end

A petition signed by at least 75 percent of the property
owners in the territory of the subordinate service district requesting the removal of the
district may be presented to the town board. Within 30 days after the town board receives
the petition, the town clerk shall determine the validity of the signatures on the petition. If
the requisite number of signatures are certified as valid, the town board must hold a public
hearing on the petitioned matter. Within 30 days after the end of the hearing, the town
board must decide whether to discontinue the subordinate service district, continue as it is,
or take some other action with respect to it.

new text begin Subd. 2. new text end

new text begin Bonds. new text end

new text begin If obligations have been issued for the benefit of the subordinate
service district, the rates, charges, and tax levies, if any, shall continue until the obligations
and any obligations issued to refund them have been paid in full.
new text end

Sec. 9.

Minnesota Statutes 2006, section 373.01, subdivision 3, is amended to read:

Subd. 3.

Capital notes.

(a) A county board may, by resolution and without
referendum, issue capital notes subject to the county debt limit to purchase capital
equipment useful for county purposes that has an expected useful life at least equal to the
term of the notes. The notes shall be payable in not more than ten years and shall be
issued on terms and in a manner the board determines. A tax levy shall be made for
payment of the principal and interest on the notes, in accordance with section 475.61,
as in the case of bonds.

(b) For purposes of this subdivision, "capital equipment" means:

(1) public safety, ambulance, road construction or maintenance, and medical
equipment; and

(2) computer hardware and software, whether bundled with machinery or equipment
or unbundled. deleted text begin The authority to issue capital notes for software expires on July 1, 2007.
deleted text end

Sec. 10.

Minnesota Statutes 2006, section 375B.09, is amended to read:

375B.09 FINANCING.

new text begin Subdivision 1. new text end

new text begin Budget. new text end

new text begin (a) new text end Upon adoption of the next annual budget following the
creation of a subordinate service district the county board shall include in the budget
appropriate provisions for the operation of the district including, as appropriate, either a
property tax levied only on property within the boundaries of the district or a levy of a
service charge against the users of the service within the district, or any combination of a
property tax and a service charge.

new text begin (b) new text end A tax or service charge or a combination thereof shall not be imposed to finance a
function or service in the new text begin subordinate new text end service district which the county generally provides
throughout the county unless an increase in the level of the service is to be supplied in the
new text begin subordinate new text end service district in which case, in addition to the countywide tax levy, only an
amount necessary to pay for the increased level of service may be imposed.

new text begin Subd. 2. new text end

new text begin Bonds. new text end

new text begin At any time after the requirements of section 375B.07 have been
met and the subordinate service district created, the county board may issue obligations
in an amount it deems necessary to defray in whole or in part the expense incurred
and estimated to be incurred in making capital improvements necessary to operate the
subordinate service district and provide the special services in the district, including every
item of cost from inception to completion and all fees and expenses incurred in connection
with the capital improvements or the financing. The obligations shall be payable primarily
out of the proceeds of the taxes and service charges imposed pursuant to subdivision 1, net
revenues as described in section 444.075, and special assessments under chapter 429. The
county board may by resolution pledge the full faith credit and taxing power of the county
to ensure payment of the principal and interest on the obligations if the proceeds of the
taxes and service charges are insufficient to pay the principal and interest. Obligations
must be issued in accordance with chapter 475, except that an election is not required, and
the amount of the obligations is not included in determining the net indebtedness of the
county under the provisions of any law limiting indebtedness.
new text end

new text begin Subd. 3. new text end

new text begin Covenants to secure obligations. new text end

new text begin In resolutions authorizing the issuance
of general or special obligations and pledging taxes and service charges imposed under
subdivision 1, net revenues, or special assessments to their payment, the county board
may make covenants for the protection of holders of the obligations and taxpayers of the
county as it deems necessary, including a covenant that the county will impose and collect
charges of the nature authorized by this chapter at the time and in the amounts required to
produce, together with any taxes or special assessments designated as a primary source
of payment of the obligations, funds adequate to pay all principal and interest when due
on the obligations and to create and maintain reserves securing the payments as may be
provided in the resolutions.
new text end

new text begin Subd. 4. new text end

new text begin Continuance in the event of withdrawal. new text end

new text begin If obligations have been issued
for the benefit of the subordinate service district, and the district is withdrawn or removed
pursuant to either section 375B.10 or 375B.11, the rates, charges, and tax levies, if any, in
the withdrawn or removed district must continue until the obligations and any obligations
issued to refund them have been paid in full.
new text end

Sec. 11.

Minnesota Statutes 2006, section 383B.117, subdivision 2, is amended to read:

Subd. 2.

Equipment acquisition; capital notes.

The board may, by resolution and
without public referendum, issue capital notes within existing debt limits for the purpose
of purchasing ambulance and other medical equipment, road construction or maintenance
equipment, public safety equipment and other capital equipment having an expected
useful life at least equal to the term of the notes issued. The notes shall be payable in
not more than deleted text begin five deleted text end new text begin ten new text end years and shall be issued on terms and in a manner as the board
determines. The total principal amount of the notes issued for any fiscal year shall not
exceed one percent of the total annual budget for that year and shall be issued solely for
the purchases authorized in this subdivision. A tax levy shall be made for the payment
of the principal and interest on such notes as in the case of bonds. new text begin For purposes of this
subdivision, "equipment" includes computer hardware and software, whether bundled with
machinery or equipment or unbundled. new text end For purposes of this subdivision, the term "medical
equipment" includes computer hardware and software and other intellectual property for
use in medical diagnosis, medical procedures, research, record keeping, billing, and other
hospital applications, together with application development services and training related
to the use of the computer hardware and software and other intellectual property, all
without regard to their useful life. For purposes of determining the amount of capital notes
which the county may issue in any year, the budget of the county and Hennepin Healthcare
System, Inc. shall be combined and the notes issuable under this subdivision shall be in
addition to obligations issuable under section 373.01, subdivision 3.

Sec. 12.

Minnesota Statutes 2006, section 410.32, is amended to read:

410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.

(a) Notwithstanding any contrary provision of other law or charter, a home rule
charter city may, by resolution and without public referendum, issue capital notes subject
to the city debt limit to purchase capital equipment.

(b) For purposes of this section, "capital equipment" means:

(1) public safety equipment, ambulance and other medical equipment, road
construction and maintenance equipment, and other capital equipment; and

(2) computer hardware and software, whether bundled with machinery or equipment
or unbundled.

(c) The equipment or software must have an expected useful life at least as long as the
term of the notes. deleted text begin The authority to issue capital notes for software expires on July 1, 2007.
deleted text end

(d) The notes shall be payable in not more than ten years and be issued on terms and
in the manner the city determines. The total principal amount of the capital notes issued
in a fiscal year shall not exceed 0.03 percent of the market value of taxable property
in the city for that year.

(e) A tax levy shall be made for the payment of the principal and interest on the
notes, in accordance with section 475.61, as in the case of bonds.

(f) Notes issued under this section shall require an affirmative vote of two-thirds of
the governing body of the city.

(g) Notwithstanding a contrary provision of other law or charter, a home rule charter
city may also issue capital notes subject to its debt limit in the manner and subject to the
limitations applicable to statutory cities pursuant to section 412.301.

Sec. 13.

Minnesota Statutes 2006, section 412.301, is amended to read:

412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.

(a) The council may issue certificates of indebtedness or capital notes subject to the
city debt limits to purchase capital equipment.

(b) For purposes of this section, "capital equipment" means:

(1) public safety equipment, ambulance and other medical equipment, road
construction and maintenance equipment, and other capital equipment; and

(2) computer hardware and software, whether bundled with machinery or equipment
or unbundled.

(c) The equipment or software must have an expected useful life at least as long as
the terms of the certificates or notes. deleted text begin The authority to issue capital notes for software
expires on July 1, 2007.
deleted text end

(d) Such certificates or notes shall be payable in not more than ten years and shall be
issued on such terms and in such manner as the council may determine.

(e) If the amount of the certificates or notes to be issued to finance any such purchase
exceeds 0.25 percent of the market value of taxable property in the city, they shall not
be issued for at least ten days after publication in the official newspaper of a council
resolution determining to issue them; and if before the end of that time, a petition asking
for an election on the proposition signed by voters equal to ten percent of the number of
voters at the last regular municipal election is filed with the clerk, such certificates or notes
shall not be issued until the proposition of their issuance has been approved by a majority
of the votes cast on the question at a regular or special election.

(f) A tax levy shall be made for the payment of the principal and interest on such
certificates or notes, in accordance with section 475.61, as in the case of bonds.

Sec. 14.

Minnesota Statutes 2006, section 428A.02, subdivision 1, is amended to read:

Subdivision 1.

Ordinance.

The governing body of a city may adopt an ordinance
establishing a special service district. Only property that is classified under section 273.13
and used for new text begin residential, new text end commercial, industrial, or public utility purposes, or is vacant
land zoned or designated on a land use plan for commercial or industrial use and located
in the special service district, may be subject to the charges imposed by the city on the
special service district. Other types of property may be included within the boundaries of
the special service district but are not subject to the levies or charges imposed by the city
on the special service district. If 50 percent or more of the market value of a parcel of
property is classified under section 273.13 as new text begin residential, new text end commercial, industrial, or vacant
land zoned or designated on a land use plan for commercial or industrial use, or public
utility for the current assessment year, then the entire market value of the property is
subject to a service charge based on net tax capacity for purposes of sections 428A.01
to 428A.10. The ordinance shall describe with particularity the area within the city to
be included in the district and the special services to be furnished in the district. The
ordinance may not be adopted until after a public hearing has been held on the question.
Notice of the hearing shall include the time and place of hearing, a map showing the
boundaries of the proposed district, and a statement that all persons owning property in the
proposed district that would be subject to a service charge will be given opportunity to be
heard at the hearing. Within 30 days after adoption of the ordinance under this subdivision,
the governing body shall send a copy of the ordinance to the commissioner of revenue.

Sec. 15.

Minnesota Statutes 2006, section 453A.02, subdivision 3, is amended to read:

Subd. 3.

City.

"City" means a city organized and existing under the laws of
Minnesota or a city charter adopted pursuant thereto, and authorized by such laws or
charter to engage in the local distribution and sale of gas, provided that any city so
engaged on January 1, 1979 is authorized to continue such distribution and sale, and every
city now or hereafter so authorized may exercise, either individually or as a member of a
municipal gas agency, all of the powers granted in sections 453A.01 to 453A.12.

new text begin City also includes a city organized and existing under the laws of another state or
a city charter adopted pursuant thereto which participates in a municipal gas agency
with Minnesota cities.
new text end

Sec. 16.

Minnesota Statutes 2006, section 473.39, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Anticipation of grants. new text end

new text begin In addition to other authority granted in this
section, the council may exercise the authority granted to an issuing political subdivision
by section 475.522.
new text end

Sec. 17.

new text begin [475.522] GRANT ANTICIPATION FINANCING OF
TRANSPORTATION OR TRANSIT PROJECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the term "political
subdivision" means a county or a statutory or home rule charter city, and the term
"issuing political subdivision" means a political subdivision that issues obligations under
subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Authorization. new text end

new text begin An issuing political subdivision may enter into agreements
with any other political subdivision of the state, within or without its jurisdiction, and any
state agency, with respect to federal grants for transportation or transit projects to be
received directly or indirectly by or on behalf of the political subdivision or agency,
under an executed grant agreement with the relevant federal agency. The agreements
may provide that the political subdivision or agency will pledge to the issuing political
subdivision all or a specified portion of the federal grants received by or on behalf of the
political subdivision or agency for a specified period of years, or until all obligations issued
by the issuing political subdivision under subdivision 3 with respect to those federal grants
have been paid or legally defeased. If the issuing political subdivision issues obligations
under subdivision 3, the agreements must provide the method by which the proceeds of
the obligations will be used to pay or reimburse the costs of the transportation or transit
projects relating to the federal grants described in the executed federal grant agreement.
new text end

new text begin Subd. 3. new text end

new text begin Issuance of obligations. new text end

new text begin In anticipation of any federal grants for
transportation or transit projects to be received directly or indirectly by any political
subdivision or agency as specified in subdivision 1, or by an issuing political subdivision
with respect to any transportation or transit projects within its jurisdiction, an issuing
political subdivision may issue its obligations payable from the collections of those
federal grants. The obligations may be issued in the principal amount the issuing political
subdivision determines provided that the estimated collections of the federal grants under
the relevant executed federal grant agreement in each year in which the obligations will
be outstanding must be at least equal to:
new text end

new text begin (1) if the obligations are to be issued as revenue obligations, 150 percent of the
maximum annual debt service on the obligations; or
new text end

new text begin (2) if the obligations are to be issued as general obligations, 110 percent of the
maximum annual debt service on the obligations.
new text end

new text begin Except as otherwise provided in this section, the issuing political subdivision shall
provide for the issuance, sale, and security of the obligations as provided in chapter 475,
and has the same powers and duties as a municipality issuing bonds under that law, except
that no election is required and the net debt limitations in chapter 475 do not apply to the
obligations. The issuing political subdivision may determine to issue the obligations as
revenue obligations, payable solely from the collections of the federal grants anticipated,
or may pledge its full faith and credit to the payment of the obligations.
new text end

new text begin Subd. 4. new text end

new text begin Use of proceeds. new text end

new text begin The proceeds of the obligations must be used:
new text end

new text begin (1) to pay or reimburse the costs of the transportation or transit projects relating to
the federal grants being anticipated;
new text end

new text begin (2) to pay the costs of issuance of the obligations, including credit enhancement;
new text end

new text begin (3) to pay interest on the obligations for a period not exceeding three years from
their date of issue; and
new text end

new text begin (4) if the full faith and credit of the issuing political subdivision is not pledged to the
payment of the obligations, to fund a debt service reserve fund for the obligations.
new text end

Sec. 18.

Minnesota Statutes 2006, section 475.58, subdivision 3b, is amended to read:

Subd. 3b.

Street reconstruction.

(a) A municipality may, without regard to
the election requirement under subdivision 1, issue and sell obligations for street
reconstruction, if the following conditions are met:

(1) the streets are reconstructed under a street reconstruction plan that describes the
deleted text begin streets to be reconstructed deleted text end new text begin street reconstruction to be financed new text end , the estimated costs, and
any planned reconstruction of other streets in the municipality over the next five years,
and the plan and issuance of the obligations has been approved by a vote of all of the
members of the governing body new text begin present at the meeting new text end following a public hearing for
which notice has been published in the official newspaper at least ten days but not more
than 28 days prior to the hearing; and

(2) if a petition requesting a vote on the issuance is signed by voters equal to
five percent of the votes cast in the last municipal general election and is filed with the
municipal clerk within 30 days of the public hearing, the municipality may issue the bonds
only after obtaining the approval of a majority of the voters voting on the question of
the issuance of the obligations.

(b) Obligations issued under this subdivision are subject to the debt limit of the
municipality and are not excluded from net debt under section 475.51, subdivision 4.

(c) For purposes of this subdivision, street reconstruction includes utility
replacement and relocation and other activities incidental to the street reconstruction, turn
lanes and other improvements having a substantial public safety function, realignments,
other modifications to intersect with state and county roads, and the local share of state
and county road projects.

(d) Except in the case of turn lanes, safety improvements, realignments, intersection
modifications, and the local share of state and county road projects, street reconstruction
does not include the portion of project cost allocable to widening a street or adding curbs
and gutters where none previously existed.