458.39 USE OF BOND PROCEEDS; QUARRY AND DOCK FUND.
Subdivision 1. Proceeds.
The proceeds of bonds issued and sold under sections
must be used only: to acquire by gift, purchase, or condemnation, a site containing rock; to
remove and use the rock for a municipal purpose, especially to construct public grounds, public
docks, harbor terminals, and a breakwater for protection of the grounds, docks, and terminals;
to get and pay for equipment or machinery, tracks, and labor required to make the public
improvements; and to clear rock obstructions from public highways near the public improvement
Subd. 2. Quantity of rock.
The city department in charge of removing and disposing of the
rock shall record the exact amount of the rock or crushed rock made from it that is removed and
used by the city on its highways, or sold to contractors for the same use, or used for making other
improvements under city authority or franchise.
Subd. 3. Quarry and dock fund.
If on its highways the city uses the rock or crushed rock
made from it, then the city department that maintains the streets shall pay into the city's quarry
and dock fund, money equal to what it would fairly spend for the material if obtained elsewhere
in the city.
If the rock is sold to contractors making public improvements in the city, or under franchise
from the city, then the money must also go into the quarry and dock fund. The money in the fund
must be used only to pay interest on the bonds and to retire and pay the principal of the bonds.
A tax must not be levied unless there is a deficiency in the quarry and dock fund to pay the
interest or principal.
If a tax is needed to make up for a deficit in the quarry and dock fund, the amount levied
must be paid to the city's general fund out of proceeds of the quarry and dock fund as soon as
there is enough money in the quarry and dock fund to make the payment.
History: (1600-4) 1925 c 64 s 4; 1985 c 265 art 8 s 1