Minnesota Session Laws - 1996, Regular Session

  
    
KEY: stricken = old language to be removed
     underscored = new language to be added
    
                            CHAPTER 297-S.F.No. 2166 
                  An act relating to capital improvements; permitting up 
                  to a 40-year term for certain bonds; amending 
                  Minnesota Statutes 1994, sections 429.091, subdivision 
                  3; and 475.54, subdivisions 1 and 3. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 429.091, 
        subdivision 3, is amended to read: 
           Subd. 3.  [METHOD OF ISSUANCE.] All obligations shall be 
        issued in accordance with the provisions of chapter 475, except 
        as provided in this subdivision.  
           An election shall be required for bonds if less than 20 
        percent of the cost of the improvement to the municipality is to 
        be assessed against benefited property.  
           If the full faith, credit, and taxing power of the 
        municipality is not pledged and the bonds are issued to finance 
        a fire protection system, a public sale shall not be required 
        and the obligations may 
           (a) mature at any time or times within 30 years from date 
        of issue,; or 40 years or the useful life of the asset, 
        whichever is less, for municipal water and waste water treatment 
        systems and essential community facilities financed or 
        guaranteed by the United States Department of Agriculture; 
           (b) mature in the amount or amounts, 
           (c) be sold at a price equal to the percentage of their par 
        value, plus accrued interest, and 
           (d) bear interest at the rate or rates, 
        as agreed by the purchaser and the municipality, notwithstanding 
        any limitation of interest rate or cost or of the amounts of 
        annual maturities contained in any other law.  
           The maturities shall be such as in the opinion of the 
        council are warranted by the anticipated collections of 
        assessments and ad valorem levies for the municipality's share 
        of the cost; except that the council may in its discretion issue 
        and sell temporary improvement bonds maturing and subject to 
        further conditions as set forth in subdivision 5.  All 
        obligations shall state upon their face the purpose of the issue 
        and the fund from which they are payable.  The amount of any 
        obligations issued hereunder shall not be included in 
        determining the net indebtedness of any municipality under the 
        provisions of any law limiting such indebtedness. 
           Sec. 2.  Minnesota Statutes 1994, section 475.54, 
        subdivision 1, is amended to read: 
           Subdivision 1.  Except as provided in subdivision 3, 5a, 
        15, or 17, or as expressly authorized in another law, all 
        obligations of each issue shall mature or be subject to 
        mandatory sinking fund redemption in installments, the first not 
        later than three years and the last not later than 30 years from 
        the date of the issue; or 40 years or the useful life of the 
        asset, whichever is less, for municipal water and wastewater 
        treatment systems and essential community facilities financed or 
        guaranteed by the United States Department of Agriculture.  No 
        amount of principal of the issue payable in any calendar year 
        shall exceed five times the amount of the smallest amount 
        payable in any preceding calendar year ending three years or 
        more after the issue date.  
           Sec. 3.  Minnesota Statutes 1994, section 475.54, 
        subdivision 3, is amended to read: 
           Subd. 3.  Obligations payable solely from a special fund, 
        for payment of which the full faith and credit of the issuer is 
        not pledged, may mature at any time or times within 30 years 
        from date of issue, (40 years or the useful life of the asset, 
        whichever is less, if for municipal water and wastewater 
        treatment systems and essential community facilities financed or 
        guaranteed by the United States Department of Agriculture) if 
        the receipts pledged to the fund are estimated by the governing 
        body to be sufficient and are irrevocably appropriated first to 
        pay annual or semiannual interest on all obligations payable 
        from the fund and to provide such reserve as may be agreed upon 
        for the security of interest payments, and then to retire a 
        specified portion of the principal in each year according to a 
        schedule of redemption and prepayment which conforms to the 
        requirements for the maturity schedule of other obligations in 
        subdivision 1. 
           Sec. 4.  [EFFECTIVE DATE.] 
           Sections 1 to 3 are effective the day following final 
        enactment. 
           Presented to the governor March 1, 1996 
           Signed by the governor March 4, 1996, 11:15 a.m.