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SF 680

as introduced - 90th Legislature (2017 - 2018) Posted on 02/07/2017 08:54am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; sales and use; authorizing the cities of Mankato and North
Mankato to extend existing local sales and use taxes; amending Laws 1991, chapter
291, article 8, section 27, subdivisions 3, as amended, 4, as amended, 5; Laws
2008, chapter 366, article 7, section 20.

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

Section 1.

Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by
Laws 1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9,
and Laws 2009, chapter 88, article 4, section 14, is amended to read:


Subd. 3.

Use of revenues.

new text begin(a) new text endRevenues received from taxes authorized by subdivisions
1 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or a
portion of the expenses of constructing and improving facilities as part of an urban
revitalization project in downtown Mankato known as Riverfront 2000. Authorized expenses
include, but are not limited to, acquiring property and paying relocation expenses related
to the development of Riverfront 2000 and related facilities, and securing or paying debt
service on bonds or other obligations issued to finance the construction of Riverfront 2000
and related facilities. For purposes of this section, "Riverfront 2000 and related facilities"
means a civic-convention center, an arena, a riverfront park, a technology center and related
educational facilities, and all publicly owned real or personal property that the governing
body of the city determines will be necessary to facilitate the use of these facilities, including
but not limited to parking, skyways, pedestrian bridges, lighting, and landscaping. It also
includes the performing arts theatre and the Southern Minnesota Women's Hockey Exposition
Center, for use by Minnesota State University, Mankato.

new text begin (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
by voters at the November 8, 2016, general election, the city may by ordinance also use
revenues from taxes authorized under subdivisions 1 and 2, up to a maximum of $47,000,000,
plus associated bond costs, to pay all or a portion of the expenses of the following capital
projects:
new text end

new text begin (1) construction and improvements to regional recreational facilities including existing
hockey and curling rinks, a baseball park, youth athletic fields and facilities, the municipal
swimming pool including improvements to make the pool compliant with the Americans
with Disabilities Act, and indoor regional athletic facilities;
new text end

new text begin (2) improvements to flood control and the levee system;
new text end

new text begin (3) water quality improvement projects in Blue Earth and Nicollet Counties;
new text end

new text begin (4) expansion of the regional transit building and related multimodal transit
improvements;
new text end

new text begin (5) regional public safety and emergency communications improvements and equipment;
and
new text end

new text begin (6) matching funds for improvements to publicly owned regional facilities including a
historic museum, supportive housing, and a senior center.
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 Mankato and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 2.

Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by Laws
2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter 366,
article 7, section 10, is amended to read:


Subd. 4.

Expiration of taxing authority and expenditure limitation.

The authority
granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax shall
expire deleted text beginondeleted text endnew text begin at the earlier of when revenues are sufficient to pay off the bonds, including
interest and all other associated bond costs authorized under subdivision 5, or
new text end December
31, deleted text begin2022deleted text endnew text begin 2038new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment without
local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
new text end

Sec. 3.

Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:


Subd. 5.

Bonds.

new text begin(a) new text endThe city of Mankato may issue general obligation bonds of the city
in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities, without
election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or
a tax to pay them. The debt represented by bonds issued for Riverfront 2000 and related
facilities shall not be included in computing any debt limitations applicable to the city of
Mankato, and the levy of taxes required by section 475.61 to pay principal of and interest
on the bonds shall not be subject to any levy limitation or be included in computing or
applying any levy limitation applicable to the city.

new text begin (b) The city of Mankato may issue general obligation bonds of the city in an amount not
to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b), without
election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or
a tax to pay them. The debt represented by bonds under this paragraph shall not be included
in computing any debt limitations applicable to the city of Mankato, and the levy of taxes
required by Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds,
and shall not be subject to any levy limitation or be included in computing or applying any
levy limitation applicable to the city. The city may use tax revenue in excess of one year's
principal interest reserve for intended annual bond payments to pay all or a portion of the
cost of capital improvements authorized in subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment without
local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
new text end

Sec. 4.

Laws 2008, chapter 366, article 7, section 20, is amended to read:


Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.

Subdivision 1.

Sales and use tax authorized.

Notwithstanding Minnesota Statutes,
section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the
approval of the voters on November 7, 2006, the city of North Mankato may impose by
ordinance a sales and use tax of one-half of one percent for the purposes specified in
subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the taxes authorized under this subdivision.

Subd. 2.

Use of revenues.

Revenues received from the tax authorized by subdivision 1
must be used to pay all or part of the capital costs of the following projects:

(1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange
project;

(2) development of regional parks and hiking and biking trailsnew text begin, including construction
of regional athletic facilities
new text end;

(3) expansion of the North Mankato Taylor Library;

(4) riverfront redevelopment; and

(5) lake improvement projects.

The total amount of revenues from the tax in subdivision 1 that may be used to fund
these projects is deleted text begin$6,000,000deleted text endnew text begin $21,000,000new text end plus any associated bond costs.

new text begin Subd. 2a. new text end

new text begin Authorization to extend the tax. new text end

new text begin Notwithstanding Minnesota Statutes, section
297A.99, subdivision 3, the North Mankato City Council may, by resolution, extend the
tax authorized under subdivision 1 to cover an additional $15,000,000 in bonds, plus
associated bond costs, to fund the projects in subdivision 2 as approved by the voters at the
November 8, 2016, general election.
new text end

Subd. 3.

Bonds.

(a) The city of North Mankato, pursuant to the approval of the voters
at the November 7, 2006 referendum authorizing the imposition of the taxes in this section,
may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative
expenses for the projects described in subdivision 2, in an amount that does not exceed
$6,000,000. A separate election to approve the bonds under Minnesota Statutes, section
475.58, is not required.

(b)new text begin The city of North Mankato, pursuant to approval of the voters at the November 8,
2016, referendum extending the tax fee to provide additional revenue to be spent for the
projects in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter
475, to pay capital and administrative expenses for those projects in an amount that does
not exceed $15,000,000. A separate election to approve the bonds under Minnesota Statutes,
section 475.58, is not required.
new text end

new text begin (c)new text end The debt represented by the bonds is not included in computing any debt limitation
applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to
pay principal and interest on the bonds is not subject to any levy limitation.

Subd. 4.

Termination of taxes.

The tax imposed under subdivision 1 expires deleted text beginwhen the
city council determines that the amount of revenues received from the taxes to pay for the
projects under subdivision 2 first equals or exceeds $6,000,000 plus the additional amount
needed to pay the costs related to issuance of bonds under subdivision 3, including interest
on the bonds.
deleted text endnew text begin at the earlier of December 31, 2038, or when revenues from the taxes first
equal or exceed $21,000,000 plus the additional amount needed to pay costs related to
issuance of bonds under subdivision 3, including interest.
new text end Any funds remaining after
completion of the projects and retirement or redemption of the bonds shall be placed in a
capital facilities and equipment replacement 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 begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end