SF 3349

as introduced - 86th Legislature (2009 - 2010) Posted on 04/09/2010 12:58pm

A bill for an act
relating to the city of Owatonna; expanding the use of its local sales and excise
tax; amending Laws 2006, chapter 259, article 3, section 12, subdivisions 3,
as amended, 4, 5.

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

Section 1.

Laws 2006, chapter 259, article 3, section 12, subdivision 3, as amended by
Laws 2009, chapter 88, article 4, section 20, is amended to read:

Subd. 3.

Use of revenues.

new text begin (a) new text end Revenues received from the taxes authorized by
subdivisions 1 and 2 must be used to pay all or part of the capital costs of transportation
projects included in the 2004 U.S. Highway 14-Owatonna Beltline Study by the Minnesota
Department of Transportation, Steele County, and the city of Owatonna; regional parks
and trail developments; and the West Hills complex, including the firehall, and library
improvement projects; as described in the city resolution No. 4-06, Exhibit A, as adopted
by the city on January 17, 2006. Notwithstanding the specific transportation projects
described in city resolution No. 4-06, Exhibit A, the city may transfer up to $1,500,000
of the sales and use tax revenues from the Alexander Street to 39th Avenue Southwest
project to the reconstruction of 18th Street Southwest from 24th Avenue Southwest to 39th
Avenue West. The amount paid from these revenues for transportation projects may not
exceed $4,450,000 plus associated bond costs. The amount paid from these revenues for
park and trail projects may not exceed $5,400,000 plus associated bond costs. The amount
paid from these revenues for West Hills complex, fire hall, and library improvement
projects may not exceed $2,823,000 plus associated bond costs.

new text begin (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, revenues
received from the taxes authorized by subdivisions 1 and 2 may be used to pay all or part
of the capital costs of improvements to the government building; development of Lake
Chase Park and the North Straight River trail projects; additional improvements to the
West Hills complex, including the library; the Maple Creek Basin watershed study and
mitigation project; and the city cost for the 800 megahertz public safety radio system
and outdoor warning sirens. The amount paid from these revenues for the government
building improvements may not exceed $705,000 plus associated bond costs. The amount
paid from these revenues for Lake Chase Park and the North Straight River Park trail
system may not exceed $1,050,000 plus associated bond costs. The amount paid from
these revenues for the additional West Hills and library complex improvement project
may not exceed $1,490,000 plus associated bond costs. The amount paid from these
revenues for the Maple Creek Basin Watershed study and mitigation project may not
exceed $1,000,000 plus associated bond costs. The amount paid from these revenues for
the city share of the 800 megahertz public safety radio system and outdoor warning sirens
may not exceed $1,500,000 plus associated bond costs.
new text end

new text begin (c) The revenues from the taxes imposed under subdivisions 1 and 2 shall not be
used for the purposes listed in paragraph (b) until the use of these revenues to fund those
purposes has been approved by the voters at a general or special election held before
November 30, 2011.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after compliance by the
governing body of the city of Owatonna with Minnesota Statutes, section 645.021,
subdivision 3.
new text end

Sec. 2.

Laws 2006, chapter 259, article 3, section 12, subdivision 4, is amended to read:

Subd. 4.

Bonds.

(a) The city of Owatonna, if approved by voters pursuant to
Minnesota Statutes, section 297A.99, may issue bonds under Minnesota Statutes, chapter
475, to pay capital and administrative expenses for the projects described in subdivision
3, new text begin paragraph (a), new text end in an amount that does not exceed $12,700,000. A separate election to
approve the bonds under Minnesota Statutes, section 475.58, is not required.

new text begin (b) The city of Owatonna, if approved by voters pursuant to subdivision 3,
paragraph (c), may issue bonds under Minnesota Statutes, chapter 475, to pay capital and
administrative expenses for the projects described in subdivision 3, paragraph (b), in an
amount that does not exceed $5,745,000. A separate election to approve the bonds under
Minnesota Statutes, section 475.58, is not required.
new text end

deleted text begin (b) deleted 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after compliance by the
governing body of the city of Owatonna with Minnesota Statutes, section 645.021,
subdivision 3.
new text end

Sec. 3.

Laws 2006, chapter 259, article 3, section 12, subdivision 5, is amended to read:

Subd. 5.

Termination of taxes.

The taxes imposed under subdivisions 1 and 2
expire at the earlier of (1) ten years new text begin plus one additional year for every $1,100,000, or a
portion of that amount, of additional projects approved under subdivision 3, paragraphs
(b) and (c), new text end after the tax is first imposed, or (2) when the city council determines that the
amount of revenues received from the taxes to pay for the projects under subdivision 3 first
equals or exceeds the amount authorized to be spent for each project plus the additional
amount needed to pay the costs related to issuance of the bonds under subdivision 4,
including interest on the bonds. Any funds remaining after completion of the projects
and retirement or redemption of the bonds shall be placed in a capital project fund of
the city. The taxes imposed under sections 1 and 2 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 compliance by the
governing body of the city of Owatonna with Minnesota Statutes, section 645.021,
subdivision 3.
new text end