2004 Minnesota Statutes

     475.521 Capital improvement bonds. 

    Subdivision 1.    Definitions.  For purposes of this 
 section, the following terms have the meanings given. 

    (a) "Bonds" mean an obligation defined under section 475.51.

    (b) "Capital improvement" means acquisition or betterment 
 of public lands, buildings or other improvements for the purpose 
 of a city hall, public safety facility, and public works 
 facility.  An improvement must have an expected useful life of 
 five years or more to qualify.  Capital improvement does not 
 include light rail transit or any activity related to it, or a 
 park, library, road, bridge, administrative building other than 
 a city hall, or land for any of those facilities. 

    (c) "City" means a home rule charter or statutory city. 

    Subd. 2.    Election requirement.  (a) Bonds issued by a 
 city to finance capital improvements under an approved capital 
 improvements plan are not subject to the election requirements 
 of section 475.58.  The bonds are subject to the net debt limits 
 under section 475.53.  The bonds must be approved by an 
 affirmative vote of three-fifths of the members of a five-member 
 city council.  In the case of a city council having more than 
 five members, the bonds must be approved by a vote of at least 
 two-thirds of the city council. 

    (b) Before the issuance of bonds qualifying under this 
 section, the city must publish a notice of its intention to 
 issue the bonds and the date and time of the hearing to obtain 
 public comment on the matter.  The notice must be published in 
 the official newspaper of the city or in a newspaper of general 
 circulation in the city.  Additionally, the notice may be posted 
 on the official Web site, if any, of the city.  The notice must 
 be published at least 14 but not more than 28 days before the 
 date of the hearing. 

    (c) A city may issue the bonds only after obtaining the 
 approval of a majority of the voters voting on the question of 
 issuing the obligations, if a petition requesting a vote on the 
 issuance is signed by voters equal to five percent of the votes 
 cast in the city in the last general election and is filed with 
 the city clerk within 30 days after the public hearing.  The 
 commissioner of revenue shall prepare a suggested form of the 
 question to be presented at the election. 

    Subd. 3.    Capital improvement plan.  (a) A city may 
 adopt a capital improvement plan.  The plan must cover at least 
 a five-year period beginning with the date of its adoption.  The 
 plan must set forth the estimated schedule, timing, and details 
 of specific capital improvements by year, together with the 
 estimated cost, the need for the improvement, and sources of 
 revenue to pay for the improvement.  In preparing the capital 
 improvement plan, the city council must consider for each 
 project and for the overall plan: 

    (1) the condition of the city's existing infrastructure, 
 including the projected need for repair or replacement; 

    (2) the likely demand for the improvement; 

    (3) the estimated cost of the improvement; 

    (4) the available public resources; 

    (5) the level of overlapping debt in the city; 

    (6) the relative benefits and costs of alternative uses of 
 the funds; 

    (7) operating costs of the proposed improvements; and 

    (8) alternatives for providing services most efficiently 
 through shared facilities with other cities or local government 
 units. 

    (b) The capital improvement plan and annual amendments to 
 it must be approved by the city council after public hearing. 

    Subd. 4.    Limitations on amount.  A city may not issue 
 bonds under this section if the maximum amount of principal and 
 interest to become due in any year on all the outstanding bonds 
 issued under this section, including the bonds to be issued, 
 will equal or exceed 0.05367 percent of taxable market value of 
 property in the county.  Calculation of the limit must be made 
 using the taxable market value for the taxes payable year in 
 which the obligations are issued and sold.  This section does 
 not limit the authority to issue bonds under any other special 
 or general law. 

    Subd. 5.    Application of this chapter.  Bonds to 
 finance capital improvements qualifying under this section must 
 be issued under the issuance authority in this chapter and the 
 provisions of this chapter apply, except as otherwise 
 specifically provided in this section. 

    HIST: 2003 c 127 art 12 s 16; 1Sp2003 c 21 art 10 s 11