Minnesota Legislature
HF 4114
as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 04/06/2006 |
Current Version - as introduced
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A bill for an act
relating to public finance; providing terms and conditions related to the issuance
of obligations; defining terms; providing for authorization of interfund loans;
amending Minnesota Statutes 2004, sections 103E.635, subdivision 7; 162.18,
subdivision 1; 162.181, subdivision 1; 273.032; 365A.08; 365A.095; 373.45,
subdivision 1; 469.035; 469.103, subdivision 2; Minnesota Statutes 2005
Supplement, sections 469.178, subdivision 7; 475.521, subdivision 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2004, section 103E.635, subdivision 7, is amended to
read:
Subd. 7.
Sale of definitive drainage bonds.
The board must sell and negotiate the
definitive drainage bonds deleted text begin for at least their par value. The definitive bonds must be solddeleted text end
deleted text begin in accordance with deleted text end deleted text begin sectiondeleted text end new text begin according to sections 475.56 and new text end 475.60.
Sec. 2.
Minnesota Statutes 2004, section 162.18, subdivision 1, is amended to read:
Subdivision 1.
Limitation on amount.
Any city having a population of 5,000 or
more may in accordance with chapter 475, except as otherwise provided herein, issue and
sell its obligations for the purpose of establishing, locating, relocating, constructing,
reconstructing, and improving municipal state-aid streets therein. In the resolution
providing for the issuance of the obligations, the governing body of the municipality
shall irrevocably pledge and appropriate to the sinking fund from which the obligations
are payable, an amount of the moneys allotted or to be allotted to the municipality from
its account in the municipal state-aid street fund sufficient to pay the principal of and the
interest on the obligations as they respectively come due. The obligations shall be issued
in amounts and on terms such that the average annual amount of principal and interest due
in all subsequent calendar years on the obligations, including any similar obligations of
the municipality which are outstanding, shall not exceed deleted text begin 50deleted text end new text begin 90 new text end percent of the amount of
deleted text begin the last annual allotment preceding the bond issue received by the municipality from the
construction account in the municipal state-aid street fund; except that the municipality
may issue general obligation bonds for said purpose, to be purchased by it for the account
of any one or more of its own funds, including debt redemption funds, in which case such
bonds shall mature in not exceeding five years from their respective dates of issue, in
principal amounts not exceeding in any calendar year, with the principal amount of all
other municipal state-aid street obligations maturing in such year, the total amount ofdeleted text end the
last annual allotment preceding the bond issue received by the municipality from the
construction account in the municipal state-aid street fund. All interest on the obligations
shall be paid out of the municipality's normal maintenance account in the municipal
state-aid street fund. Any such obligations may be made general obligations, but if
moneys of the municipality other than moneys received from the municipal state-aid street
fund, are used for payment of the obligations, the moneys so used shall be restored to the
appropriate fund from the moneys next received by the municipality from the construction
or maintenance account in the municipal state-aid street fund which are not required to be
paid into a sinking fund for obligations.
Sec. 3.
Minnesota Statutes 2004, section 162.181, subdivision 1, is amended to read:
Subdivision 1.
Limitation on amount.
Except as otherwise provided herein, any
county may, in accordance with chapter 475, issue and sell its obligations, the total
amount thereof not to exceed the total of the preceding two years state-aid allotments,
for the purpose of establishing, locating, relocating, constructing, reconstructing, and
improving county state-aid highways and constructing buildings and other facilities for
maintaining county state-aid highways. In the resolution providing for the issuance of the
obligations, the county board of the county shall irrevocably pledge and appropriate to the
sinking fund from which the obligations are payable, an amount of the money allotted
or to be allotted to the county from its account in the county state-aid highway fund
sufficient to pay the principal of and the interest on the obligations as they respectively
come due. The obligations shall be issued in the amounts and on terms such that the
amount of principal and interest due in any calendar year on the obligations, including
any similar obligations of the county which are outstanding, shall not exceed deleted text begin 50deleted text end new text begin 90
new text end percent of the amount of the last annual allotment preceding the bond issue received
by the county from the construction account in the county state-aid highway fund. All
interest on the obligations shall be paid out of the county's normal maintenance account
in the county state-aid highway fund. The obligations may be made general obligations,
but if money of the county other than money received from the county state-aid highway
fund, is used for payment of the obligations, the money so used shall be restored to the
appropriate fund from the money next received by the county from the construction or
maintenance account in the county state-aid highway fund which is not required to be
paid into a sinking fund for obligations.
Sec. 4.
Minnesota Statutes 2004, section 273.032, is amended to read:
273.032 MARKET VALUE DEFINITION.
For the purpose of determining any property tax levy limitation based on market
value, any net debt limit based on market value, any limit on the issuance of bonds,
certificates of indebtedness, or capital notes based on market value, any qualification
to receive state aid based on market value, or any state aid amount based on market
value, the terms "market value," "taxable market value," and "market valuation," whether
equalized or unequalized, mean the total taxable market value of property within the local
unit of government before any adjustments for tax increment, fiscal disparity, powerline
credit, or wind energy values, but after the limited market adjustments under section
273.11, subdivision 1a, and after the market value exclusions of certain improvements to
homestead property under section 273.11, subdivision 16. Unless otherwise provided,
"market value," "taxable market value," and "market valuation" deleted text begin refer todeleted text end new text begin mean new text end the taxable
market value deleted text begin for the previous assessment yeardeleted text end new text begin as last finally equalizednew text end .
Sec. 5.
Minnesota Statutes 2004, section 365A.08, is amended to read:
365A.08 FINANCING.
new text begin Following the creation of a subordinate service district, a town may, without
regard to the election requirement under section 475.58, subdivision 1, issue and sell
general obligations for street reconstruction as defined in section 475.58, subdivision 3b.
Obligations issued under this section are subject to the debt limit of the town and are not
excluded from net debt under section 475.51, subdivision 4. 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 of the users of the service 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.
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.
Sec. 6.
Minnesota Statutes 2004, section 365A.095, is amended to read:
365A.095 PETITION FOR REMOVAL OF DISTRICT; PROCEDURE.
new text begin Except when obligations are outstanding under section 365A.08, 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.
Sec. 7.
Minnesota Statutes 2004, section 373.45, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) As used in this section, the following terms have
the meanings given.
(b) "Authority" means the Minnesota Public Facilities Authority.
(c) "Commissioner" means the commissioner of finance.
(d) "Debt obligation" means a general obligation bond issued by a county, new text begin a bond to
which the general obligation of a county is pledged under section 469.034, subdivision 2,
new text end or a bond payable from a county lease obligation under section 641.24, to provide funds
for the construction of:
(1) jails;
(2) correctional facilities;
(3) law enforcement facilities;
(4) social services and human services facilities; deleted text begin or
deleted text end
(5) solid waste facilitiesnew text begin ; or
new text end
new text begin (6) qualified housing development projects as defined in section 469.034, subdivision
2new text end .
Sec. 8.
Minnesota Statutes 2004, section 469.035, is amended to read:
469.035 MANNER OF BOND ISSUANCE; SALE.
Bonds of an authority shall be authorized by its resolution. They may be issued in
one or more series and shall bear the date or dates, mature at the time or times, bear interest
at the rate or rates, be in the denomination or denominations, be in the form either coupon
or registered, carry the conversion or registration privileges, have the rank or priority, be
executed in the manner, be payable in the medium of payment at the place or places, and
be subject to the terms of redemption with or without premium, as the resolution, its trust
indenture or mortgage provides. The bonds may be sold deleted text begin at public or private sale at not
less than pardeleted text end new text begin in the manner and for the price that the authority determines to be in the best
interest of the authoritynew text end . Notwithstanding any other law, bonds issued pursuant to sections
469.001 to 469.047 shall be fully negotiable. In any suit, action, or proceedings involving
the validity or enforceability of any bonds of an authority or the security for the bonds,
any bond reciting in substance that it has been issued by the authority to aid in financing a
project shall be conclusively deemed to have been issued for that purpose, and the project
shall be conclusively deemed to have been planned, located, and carried out in accordance
with the purposes and provisions of sections 469.001 to 469.047.
In cities of the first class, the governing body of the city must approve all notes
executed with the Minnesota Housing Finance Agency pursuant to this section if the
interest rate on the note exceeds seven percent.
Sec. 9.
Minnesota Statutes 2004, section 469.103, subdivision 2, is amended to read:
Subd. 2.
Form.
The bonds of each series issued by the authority under this section
shall bear interest at a rate or rates, shall mature at the time or times within deleted text begin 20deleted text end new text begin 30 new text end years
from the date of issuance, and shall be in the form, whether payable to bearer, registrable
as to principal, or fully registrable, as determined by the authority. Section 469.102,
subdivision 6, applies to all bonds issued under this section, and the bonds and their
coupons, if any, when payable to bearer, shall be negotiable instruments.
Sec. 10.
Minnesota Statutes 2005 Supplement, section 469.178, subdivision 7, is
amended to read:
Subd. 7.
Interfund loans.
The authority or municipality may advance or loan
money to finance expenditures under section 469.176, subdivision 4, from its general
fund or any other fund under which it has legal authority to do so. The loan or advance
must be authorized, by resolution of the governing bodynew text begin or of the authority, whichever
has jurisdiction over the fund from which the advance or loan is madenew text end , before money
is transferred, advanced, or spent, whichever is earliest. The resolution may generally
grant to the authority the power to make interfund loans under one or more tax increment
financing plans or for one or more districts. The terms and conditions for repayment of
the loan must be provided in writing and include, at a minimum, the principal amount,
the interest rate, and maximum term. The maximum rate of interest permitted to be
charged is limited to the greater of the rates specified under section 270C.40 or 549.09
as of the date or advance is made, unless the written agreement states that the maximum
interest rate will fluctuate as the interest rates specified under section 270C.40 or 549.09
are from time to time adjusted.
Sec. 11.
Minnesota Statutes 2005 Supplement, section 475.521, subdivision 4, is
amended to read:
Subd. 4.
Limitations on amount.
A municipality may not issue bonds under this
section if the maximum amount of principal and interest to become due in any year on
all the outstanding bonds issued under this section, including the bonds to be issued,
will equal or exceed new text begin (1) new text end 0.16 percent of the taxable market value of property in the
municipalitynew text begin , or (2) $100,000, whichever is greaternew text end . Calculation of the limit must be
made using the taxable market value for the taxes payable year in which the obligations
are issued and sold. In the case of a municipality with a population of 2,500 or more, the
bonds are subject to the net debt limits under section 475.53. In the case of a shared facility
in which more than one municipality participates, upon compliance by each participating
municipality with the requirements of subdivision 2, the limitations in this subdivision and
the net debt represented by the bonds shall be allocated to each participating municipality
in proportion to its required financial contribution to the financing of the shared facility, as
set forth in the joint powers agreement relating to the shared facility. This section does not
limit the authority to issue bonds under any other special or general law.