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Office of the Revisor of Statutes

162.18 MS 1957 [Repealed, 1959 c 500 art 6 s 13]
162.18 BONDS; MUNICIPAL.
    Subdivision 1. Limitation on amount. Any city having a population of 5,000 or more may
in accordance with chapter 475, except as otherwise provided herein, issue and sell its obligations
for the purpose of establishing, locating, relocating, constructing, reconstructing, and improving
municipal state-aid streets therein. In the resolution providing for the issuance of the obligations,
the governing body of the municipality shall irrevocably pledge and appropriate to the sinking
fund from which the obligations are payable, an amount of the moneys allotted or to be allotted
to the municipality from its account in the municipal state-aid street fund sufficient to pay the
principal of and the interest on the obligations as they respectively come due. The obligations
shall be issued in amounts and on terms such that the average annual amount of principal and
interest due in all subsequent calendar years on the obligations, including any similar obligations
of the municipality which are outstanding, shall not exceed 90 percent of the amount of the last
annual allotment preceding the bond issue received by the municipality from the construction
account in the municipal state-aid street fund. All interest on the obligations shall be paid out of
the municipality's normal maintenance account in the municipal state-aid street fund. Any such
obligations may be made general obligations, but if moneys of the municipality other than moneys
received from the municipal state-aid street fund, are used for payment of the obligations, the
moneys so used shall be restored to the appropriate fund from the moneys next received by the
municipality from the construction or maintenance account in the municipal state-aid street fund
which are not required to be paid into a sinking fund for obligations.
    Subd. 2. Not included in net debt limitation. Obligations issued hereunder may be
authorized by resolution of the governing body without authorization by the electors, and shall
not be included in the net debt of the municipality for the purpose of any statutory or charter
limitation on indebtedness. Expenditures made from the proceeds of the obligations shall not be
considered as part of the cost of government of the municipality within the meaning of any
statutory or charter limitation on expenditures.
    Subd. 3. Proceeds used for specific purposes. Moneys received from the sale of the
obligations shall be spent only in accordance with other provisions of law and the rules of the
transportation commissioner relating to the establishment, location, relocation, construction,
reconstruction, and improvement of municipal state-aid streets within the municipality issuing
the obligations.
    Subd. 4. Certification to commissioner of money required. Any municipality issuing and
selling bonds pursuant to this section shall certify to the commissioner the amount of money
required annually for the payment of principal and interest on the obligation. Upon receipt thereof,
the commissioner shall certify to the commissioner of finance the sum of money needed annually
by the municipality for the principal and interest, provided that the amount certified by the
commissioner shall not exceed the limit heretofore specified. The commissioner of finance shall
thereafter, until said bonds are retired, issue a warrant annually in the amount certified payable
to the fiscal officer of the municipality, and the amount thereof shall be deposited by the fiscal
officer in the sinking fund from which the obligations are payable.
    Subd. 5. Powers are in addition. The powers granted in this section are in addition to
all powers granted by charter or other laws.
History: 1959 c 500 art 3 s 18; 1961 c 604 s 1; 1965 c 228 s 1; 1973 c 123 art 5 s 7; 1973 c
492 s 14; 1976 c 166 s 7; 1985 c 248 s 70; 2006 c 259 art 9 s 3