SF 1958

as introduced - 89th Legislature (2015 - 2016) Posted on 03/26/2015 08:58am

A bill for an act
relating to economic development; Lewis and Clark Regional Water System
Project; modifying debt service aid formula and reinstating local taxing authority;
amending Minnesota Statutes 2014, sections 469.194, subdivision 1; 477A.20;
Laws 2014, chapter 308, article 7, section 7.

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

Section 1.

Minnesota Statutes 2014, section 469.194, subdivision 1, is amended to read:

Subdivision 1.

Authority; aggregate limit.

(a) The governing body of a
municipality may, by resolution, issue obligations under chapter 475 to acquire land or
interests in land for, and to design, engineer, and construct pipeline and other facilities and
infrastructure necessary to complete the Lewis and Clark Regional Water System Project.

(b) The maximum amount of bonds that may be issued under this section is limited to
an aggregate principal amount of deleted text begin $45,000,000 deleted text end new text begin $50,000,000 new text end , plus any costs of issuance and
amounts to be deposited into a debt service or reserve account. The Lewis and Clark Joint
Powers Board shall allocate the limit among the municipalities designated in subdivision 2.

Sec. 2.

Minnesota Statutes 2014, section 477A.20, is amended to read:

477A.20 DEBT SERVICE AID; LEWIS AND CLARK JOINT POWERS
BOARD.

(a) The Lewis and Clark Joint Powers Board is eligible to receive an aid distribution
under this section equal to (1) the principal and interest payable in the succeeding calendar
year for bonds issued under section 469.194 minus deleted text begin the sum of deleted text end (2) the combined adjusted
net tax capacity of Rock County and Nobles County for the assessment year prior to the
aid payable year multiplied by 1.5 percent deleted text begin and (3) 50 percent of any federal aid received
to fund the project in the calendar year deleted text end . The board shall certify to the commissioner of
revenue any federal aid allocated to the project for the calendar year and the principal
and interest due in the succeeding calendar year by June 1 of the aid payable year. The
commissioner of revenue shall calculate the aid payable under this section and certify the
amount payable before July 1 of the aid distribution year. The commissioner shall pay the
aid under this section to the board at the times specified for payments of local government
aid in section 477A.015. An amount sufficient to pay the state aid authorized under this
section is annually appropriated to the commissioner from the general fund.

(b) The board must allocate the aid to the municipalities issuing bonds under section
469.194 in proportion to their principal and interest payments.

deleted text begin (c) If the deduction under paragraph (a), clause (3), eliminates the aid payment
under this section in a calendar year, then the excess of the deduction must be carried
over and used to reduce the principal and interest in the succeeding year or years used to
calculate aid under paragraph (a).
deleted text end

deleted text begin (d) If federal grants and aid received for the project, not deducted under paragraph
(a), clause (3), exceed the total debt service payments for bonds issued under section
469.194, other than payments made with state aid under this section, the joint powers
board must repay any excess to the commissioner of revenue for deposit in the general
fund. The repayment may not exceed the sum of state aid payments under this section and
any other grants made by the state for the project.
deleted text end

deleted text begin (e) deleted text end new text begin (c) new text end This section expires at the earlier of January 1, 2039, or when the bonds
authorized under section 469.194 have been paid or defeased.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2016.
new text end

Sec. 3.

Laws 2014, chapter 308, article 7, section 7, is amended to read:

Sec. 7. CITY OF LUVERNE LOCAL SALES TAX.

(a) Notwithstanding Minnesota Statutes, sections 297A.99, 297A.993, and
477A.016, or any other contrary provision of law, ordinance, or city charter, the city of
Luverne may, by ordinance, impose a sales and use tax of up to one-half of one percent for
the purposes specified in paragraph (b) new text begin , if approved by the voters at a general election held
prior to December 31, 2020 new text end . Except as otherwise provided in this section, the provisions
of Minnesota Statutes, section 297A.99, subdivisions 4 to 13, govern the imposition,
administration, collection, and enforcement of the tax authorized under this paragraph.

(b) The proceeds of any tax imposed under paragraph (a), less refunds and costs
of collection, must be first used by the city to pay debt service on bonds issued under
Minnesota Statutes, section 469.194, to fund the Lewis and Clark Regional Water System
project. Revenues collected in any calendar year in excess of the city obligation to pay for
debt service on bonds issued under Minnesota Statutes, section 469.194, may be retained
by the city and used for funding other capital projects within the city.

(c) A tax imposed under paragraph (a) expires when the city's share of bonds issued
under Minnesota Statutes, section 469.194, to fund the Lewis and Clark Regional Water
System Project has been made, or at an earlier time if approved by the city council. The
tax must not terminate before the city council determines that revenues from this tax and
any other revenue source the city dedicates are sufficient to pay the city share of debt
service on bonds issued under Minnesota Statutes, section 469.194.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end