123B.59 Alternative facilities bonding and levy program.
Subdivision 1. To qualify. An independent or special school district qualifies to participate in the alternative facilities bonding and levy program if the district has:
(1) more than 66 students per grade;
(2) over 1,850,000 square feet of space;
(3) average age of building space is 15 years or older;
(4) insufficient funds from projected health and safety revenue and capital facilities revenue to meet the requirements for deferred maintenance, to make accessibility improvements, or to make fire, safety, or health repairs; and
(5) a ten-year facility plan approved by the commissioner according to subdivision 2.
Subd. 2. Ten-year plan. (a) A qualifying district must have a ten-year facility plan approved by the commissioner that includes an inventory of projects and costs that would be eligible for:
(1) health and safety revenue;
(2) disabled access levy; and
(3) deferred capital expenditures and maintenance projects necessary to prevent further erosion of facilities.
(b) The school district must:
(1) annually update the plan;
(2) biennially submit a facility maintenance plan; and
(3) indicate whether the district will issue bonds to finance the plan or levy for the costs.
Subd. 3. Bond authorization. A school district, upon approval of its board and the commissioner, may issue general obligation bonds under this section to finance approved facilities plans. Chapter 475, except sections 475.58 and 475.59, must be complied with. The district may levy under subdivision 5 for the debt service revenue. The authority to issue bonds under this section is in addition to any bonding authority authorized by this chapter, or other law. The amount of bonding authority authorized under this section must be disregarded in calculating the bonding or net debt limits of this chapter, or any other law other than section 475.53, subdivision 4.
Subd. 4. Levy prohibited for capital projects. A district that participates in the alternative facilities bonding and levy program is not eligible to levy and cannot receive aid under sections 123B.57 and 123B.58 for any capital projects funded under this section. A district may levy and receive aid for health and safety environmental management costs and health and safety regulatory, hazard assessment, record keeping, and maintenance programs as defined in section 123A.443, subdivision 2, and approved by the commissioner.
Subd. 5. Levy authorized. A district, after local board approval, may levy for costs related to an approved facility plan as follows:
(a) if the district has indicated to the commissioner that bonds will be issued, the district may levy for the principal and interest payments on outstanding bonds issued according to subdivision 3 after reduction for any alternative facilities aid receivable under subdivision 6; or
(b) if the district has indicated to the commissioner that the plan will be funded through levy, the district may levy according to the schedule approved in the plan after reduction for any alternative facilities aid receivable under subdivision 6.
Subd. 6. Alternative facilities aid. A district's alternative facilities aid is the amount equal to the district's annual debt service costs, provided that the amount does not exceed the amount certified to be levied for those purposes for taxes payable in 1997, or for a district that made a levy under subdivision 5, paragraph (b), the lesser of the district's annual levy amount, or one-sixth of the amount of levy that it certified for that purpose for taxes payable in 1998.
Subd. 7. Repealed, 1999 c 241 art 4 s 29
Subd. 8. Separate account. A district must establish a separate account under the uniform financial accounting and reporting standards (UFARS) for this program. If the district's levy exceeds the necessary interest and principal payments and noncapital health and safety costs, the district must reserve the revenue to replace future bonding authority, prepay bonds authorized under this program, or make payments on principal and interest.
Official Publication of the State of Minnesota
Revisor of Statutes