1998 Minnesota Statutes

     126C.42 Operating debt levies. 

    Subdivision 1.    1977 statutory operating debt.  (a) In 
 each year in which so required by this subdivision, a district 
 must make an additional levy to eliminate its statutory 
 operating debt, determined as of June 30, 1977, and certified 
 and adjusted by the commissioner.  This levy shall not be made 
 in more than 30 successive years and each year before it is 
 made, it must be approved by the commissioner and the approval 
 shall specify its amount.  This levy shall be an amount which is 
 equal to the amount raised by a levy of a net tax rate of 1.66 
 percent times the adjusted net tax capacity of the district for 
 the preceding year for taxes payable in 1991 and thereafter; 
 provided that in the last year in which the district is required 
 to make this levy, it must levy an amount not to exceed the 
 amount raised by a levy of a net tax rate of 1.66 percent times 
 the adjusted net tax capacity of the district for the preceding 
 year for taxes payable in 1991 and thereafter.  When the sum of 
 the cumulative levies made pursuant to this subdivision and 
 transfers made according to section 123B.79, subdivision 6, 
 equals an amount equal to the statutory operating debt of the 
 district, the levy shall be discontinued. 

    (b) The district must establish a special account in the 
 general fund which shall be designated "appropriated fund 
 balance reserve account for purposes of reducing statutory 
 operating debt" on its books and records.  This account shall 
 reflect the levy authorized pursuant to this subdivision.  The 
 proceeds of this levy must be used only for cash flow 
 requirements and must not be used to supplement district 
 revenues or income for the purposes of increasing the district's 
 expenditures or budgets. 

    (c) Any district which is required to levy pursuant to this 
 subdivision must certify the maximum levy allowable under 
 section 126C.13, subdivision 2, in that same year. 

    (d) Each district shall make permanent fund balance 
 transfers so that the total statutory operating debt of the 
 district is reflected in the general fund as of June 30, 1977. 

    Subd. 2.    1983 operating debt.  (1) Each year, a 
 district may make an additional levy to eliminate a deficit in 
 the net unappropriated operating funds of the district, 
 determined as of June 30, 1983, and certified and adjusted by 
 the commissioner.  This levy may in each year be an amount not 
 to exceed the amount raised by a levy of a net tax rate of 1.85 
 percent times the adjusted net tax capacity for taxes payable in 
 1991 and thereafter of the district for the preceding year as 
 determined by the commissioner.  However, the total amount of 
 this levy for all years it is made must not exceed the lesser of 
 (a) the amount of the deficit in the net unappropriated 
 operating funds of the district as of June 30, 1983, or (b) the 
 amount of the aid reduction, according to Laws 1981, Third 
 Special Session chapter 2, article 2, section 2, but excluding 
 clauses (l), (m), (n), (o), and (p), and Laws 1982, Third 
 Special Session chapter 1, article 3, section 6, to the district 
 in fiscal year 1983.  When the cumulative levies made pursuant 
 to this subdivision equal the total amount permitted by this 
 subdivision, the levy must be discontinued.  

    (2) The proceeds of this levy must be used only for cash 
 flow requirements and must not be used to supplement district 
 revenues or income for the purposes of increasing the district's 
 expenditures or budgets.  

    (3) A district that levies pursuant to this subdivision 
 must certify the maximum levy allowable under section 126C.13, 
 subdivision 2, in that same year. 

    Subd. 3.    1985 operating debt.  (1) Each year, a 
 district may levy to eliminate a deficit in the net 
 unappropriated balance in the general fund of the district, 
 determined as of June 30, 1985, and certified and adjusted by 
 the commissioner.  Each year this levy may be an amount not to 
 exceed the amount raised by a levy of a net tax rate of 1.85 
 percent times the adjusted net tax capacity for taxes payable in 
 1991 and thereafter of the district for the preceding year.  
 However, the total amount of this levy for all years it is made 
 must not exceed the amount of the deficit in the net 
 unappropriated balance in the general fund of the district as of 
 June 30, 1985.  When the cumulative levies made pursuant to this 
 subdivision equal the total amount permitted by this 
 subdivision, the levy shall be discontinued.  

    (2) A district, if eligible, may levy under this 
 subdivision or subdivision 2 but not both. 

    (3) The proceeds of this levy must be used only for cash 
 flow requirements and must not be used to supplement district 
 revenues or income for the purposes of increasing the district's 
 expenditures or budgets.  

    (4) A district that levies pursuant to this subdivision 
 must certify the maximum levy allowable under section 126C.13, 
 subdivision 2, in that same year. 

    Subd. 4.    1992 operating debt.  (a) For taxes payable 
 for calendar year 2003 and earlier, a district that has filed a 
 plan pursuant to section 123B.83, subdivision 4, may levy, with 
 the approval of the commissioner, to eliminate a deficit in the 
 net unappropriated balance in the operating funds of the 
 district, determined as of June 30, 1992, and certified and 
 adjusted by the commissioner.  Each year this levy may be an 
 amount not to exceed the lesser of: 

    (1) an amount raised by a levy of a net tax rate of one 
 percent times the adjusted net tax capacity; or 

    (2) $100,000. 

 This amount must be reduced by referendum revenue authorized 
 under section 126C.17 pursuant to the plan filed under section 
 123B.83.  However, the total amount of this levy for all years 
 it is made must not exceed the amount of the deficit in the net 
 unappropriated balance in the operating funds of the district as 
 of June 30, 1992.  When the cumulative levies made pursuant to 
 this subdivision equal the total amount permitted by this 
 subdivision, the levy must be discontinued.  

    (b) A district, if eligible, may levy under this 
 subdivision or subdivision 2 or 3, or under section 123A.73, 
 subdivision 9, or Laws 1992, chapter 499, article 7, sections 16 
 or 17, but not under more than one. 

    (c) The proceeds of this levy must be used only for cash 
 flow requirements and must not be used to supplement district 
 revenues or income for the purposes of increasing the district's 
 expenditures or budgets.  

    (d) Any district that levies pursuant to this subdivision 
 must certify the maximum levy allowable under section 126C.13, 
 subdivision 2, in that same year. 

    HIST: 1976 c 271 s 88; 1977 c 447 art 7 s 26; 1981 c 358 art 1 
 s 40; 1983 c 314 art 6 s 26; 1984 c 463 art 6 s 8; art 7 s 20; 
 1986 c 444; 1Sp1986 c 1 art 9 s 20; 1987 c 268 art 7 s 42; 1988 
 c 486 s 88,101 subd 2; 1988 c 719 art 5 s 84; 1989 c 329 art 13 
 s 14-16,20; 1Sp1989 c 1 art 2 s 11; 1992 c 499 art 12 s 29; 1993 
 c 224 art 6 s 17; 1Sp1993 c 6 s 6; 1994 c 647 art 8 s 10,11; 
 1998 c 397 art 7 s 115,164; art 11 s 3