SF 423

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 08:46am

A bill for an act
relating to the city of Lanesboro; authorizing a local sales and use tax; allowing
the issuance of state bonds.

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

Section 1. new text begin CITY OF LANESBORO; SALES 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 Notwithstanding Minnesota Statutes,
section 477A.016, or any other provision of law, ordinance, or city charter, as approved by
the voters at the November 2, 2010, general election, the city of Lanesboro may impose by
ordinance a sales and use tax of up to one-half of one percent for the purposes specified in
subdivision 2. Except as provided in this section, the provisions of Minnesota Statutes,
section 297A.99, govern the imposition of the tax authorized under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of revenues. new text end

new text begin Revenues received from the tax authorized under
subdivision 1 must be used by the city of Lanesboro to pay the costs of collecting the tax
and to pay for all or a part of the improvements to city streets and utility systems, and the
betterment of city municipal buildings consisting of (i) street and utility improvements to
Calhoun Avenue, Fillmore Avenue, Kenilworth Avenue, Pleasant Street, Kirkwood Street,
Auburn Avenue, and Zenith Street, and street light replacement on State Highways 250
and 16; (ii) improvements to utility systems consisting of wastewater treatment facility
improvements and electric utility improvements to the Lanesboro High Hazard Dam; and
(iii) improvements to the Lanesboro community center, library, and city hall, including
paying debt service on bonds or other obligations issued to fund these projects under
subdivision 3. The total amount of revenues from the taxes in subdivision 1 that may be
used to fund these projects is $800,000 plus any associated bond costs.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin The city of Lanesboro may issue bonds under
Minnesota Statutes, chapter 475, to pay capital and administrative expenses related to the
projects authorized in subdivision 2. An election to approve the bonds under Minnesota
Statutes, section 475.58, is not required. The issuance of bonds under this subdivision
is not subject to Minnesota Statutes, sections 275.60 and 275.61. The bonds are not
included in computing any debt limitation applicable to the city and the levy of taxes
under Minnesota Statutes, section 475.61, to pay principal and interest on the bonds is
not subject to any levy limitation.
new text end

new text begin The aggregate principal amount of the bonds plus the aggregate of the taxes used
directly to pay costs of the projects listed in subdivision 2 may not exceed $800,000, plus
an amount equal to the costs related to issuance of the bonds and capitalized interest.
new text end

new text begin The taxes authorized in subdivision 1 may be pledged and used for payments of
the bonds and bonds issued to refund them, only if the bonds and any refunding bonds
are general obligations of the city.
new text end

new text begin Subd. 4. new text end

new text begin Termination of tax. new text end

new text begin The tax imposed under subdivision 1 expires when
the Lanesboro City Council determines that sufficient funds have been raised from the
taxes to finance the projects authorized under subdivision 2 and to prepay or retire at
maturity the principal, interest, and premium due on any bonds issued under subdivision 3.
Any funds remaining after completion of the project 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 the governing body of
the city of Lanesboro and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end