SF 2253

as introduced - 90th Legislature (2017 - 2018) Posted on 03/28/2017 08:23am

A bill for an act
relating to taxation; sales and use; authorizing the city of Detroit Lakes to impose
a local sales and use tax to fund specified capital improvements.

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

Section 1. new text begin CITY OF DETROIT LAKES; TAX AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax. new text end

new text begin Notwithstanding Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), or 477A.016, or any other provision of law, ordinance, or city
charter, the city of Detroit Lakes, if approved by the voters at a general election or special
election held on the first Tuesday after the first Monday in November held within two years
from the date of final enactment of this section, 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, administration, collection, and enforcement 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 (a) Revenues received from taxes authorized by subdivision
1 must be used by the city to pay the cost of collecting the taxes and to pay for all or a part
of the following:
new text end

new text begin (1) $8,000,000 for wastewater treatment plant improvements;
new text end

new text begin (2) $3,200,000 for construction and improvement to and equipment incorporated into
regional recreational facilities including Washington Ballfield, Kent Freeman Sports Arena,
Detroit Lakes Community and Cultural Center, and Detroit Mountain Recreation Area;
new text end

new text begin (3) $6,100,000 for construction and improvement to regional service facilities including
Detroit Lakes Public Library, Detroit Lakes Police Department, and Boys and Girls Club
of Detroit Lakes;
new text end

new text begin (4) $2,000,000 for engineering and construction of storm sewer infrastructure
improvements;
new text end

new text begin (5) $3,300,000 for Detroit Lake lakefront development including improvement to the
pavilion and city park; and
new text end

new text begin (6) $3,400,000 for street, lighting, parking, sidewalk, and trail improvements to
Washington Avenue and West Lake Drive.
new text end

new text begin (b) Authorized expenses include, but are not limited to, acquiring property, engineering,
and construction expenses related to these improvements, and paying debt service on bonds
or other obligations issued to finance acquisition and construction of these improvements.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to pay capital and administrative expenses for the improvements described in
subdivision 2 in an amount that does not exceed $26,000,000. An election to approve the
bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin (b) The issuance of bonds under this subdivision is not subject to Minnesota Statutes,
sections 275.60 and 275.61.
new text end

new text begin (c) 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 of and interest on the bonds is not subject to any levy limitation.
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 at the earlier
of (1) 25 years, or (2) when the city council determines that the amount of revenues received
from the taxes to finance the improvements described in subdivision 2 first equals or exceeds
$26,000,000, plus the additional amount needed to pay the costs related to issuance of bonds
under subdivision 3, including interest on the bonds. 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 Detroit Lakes and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end