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Minnesota Legislature

Office of the Revisor of Statutes

123B.61 PURCHASE OF CERTAIN EQUIPMENT.
The board of a district may issue general obligation certificates of indebtedness or capital
notes subject to the district debt limits to: (a) purchase vehicles, computers, telephone systems,
cable equipment, photocopy and office equipment, technological equipment for instruction,
and other capital equipment having an expected useful life at least as long as the terms of the
certificates or notes; (b) purchase computer hardware and software, without regard to its expected
useful life, whether bundled with machinery or equipment or unbundled, together with application
development services and training related to the use of the computer; and (c) prepay special
assessments. The certificates or notes must be payable in not more than five years and must be
issued on the terms and in the manner determined by the board, except that certificates or notes
issued to prepay special assessments must be payable in not more than 20 years. The certificates
or notes may be issued by resolution and without the requirement for an election. The certificates
or notes are general obligation bonds for purposes of section 126C.55. A tax levy must be made
for the payment of the principal and interest on the certificates or notes, in accordance with section
475.61, as in the case of bonds. The sum of the tax levies under this section and section 123B.62
for each year must not exceed the lesser of the amount of the district's total operating capital
revenue or the sum of the district's levy in the general and community service funds excluding
the adjustments under this section for the year preceding the year the initial debt service levies
are certified. The district's general fund levy for each year must be reduced by the sum of (1) the
amount of the tax levies for debt service certified for each year for payment of the principal and
interest on the certificates or notes issued under this section as required by section 475.61, (2) the
amount of the tax levies for debt service certified for each year for payment of the principal and
interest on bonds issued under section 123B.62, and (3) any excess amount in the debt redemption
fund used to retire bonds, certificates, or notes issued under this section or section 123B.62 after
April 1, 1997, other than amounts used to pay capitalized interest. If the district's general fund
levy is less than the amount of the reduction, the balance shall be deducted first from the district's
community service fund levy, and next from the district's general fund or community service fund
levies for the following year. A district using an excess amount in the debt redemption fund to
retire the certificates or notes shall report the amount used for this purpose to the commissioner by
July 15 of the following fiscal year. A district having an outstanding capital loan under section
126C.69 or an outstanding debt service loan under section 126C.68 must not use an excess
amount in the debt redemption fund to retire the certificates or notes.
History: 1988 c 718 art 8 s 6; 1989 c 222 s 26; 1Sp1995 c 3 art 5 s 5; 1996 c 412 art 5
s 3; 1Sp1997 c 4 art 4 s 9; 1998 c 397 art 7 s 37,164; art 11 s 3; 1999 c 241 art 4 s 9; 2002 c
379 art 1 s 43