language to be deleted (2) new language
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.