2007 Minnesota Statutes

473.39 BORROWING MONEY.
    Subdivision 1. General authority. The council may issue general obligation bonds subject
to the volume limitations in this section to provide funds to implement the council's transit capital
improvement program and may issue general obligation bonds not subject to the limitations for
the refunding of outstanding bonds or certificates of indebtedness of the council, the former
regional transit board or the former metropolitan transit commission, and judgments against the
former regional transit board or the former metropolitan transit commission or the council. The
council may not issue obligations pursuant to this subdivision, other than refunding bonds, in
excess of the amount specifically authorized by law. Except as otherwise provided in sections
473.371 to 473.449, the council shall provide for the issuance, sale, and security of the bonds in
the manner provided in chapter 475, and has the same powers and duties as a municipality issuing
bonds under that law, except that no election is required and the net debt limitations in chapter
475 do not apply to the bonds. The obligations are not a debt of the state or any municipality or
political subdivision within the meaning of any debt limitation or requirement pertaining to those
entities. Neither the state, nor any municipality or political subdivision except the council, nor
any member or officer or employee of the council, is liable on the obligations. The obligations
may be secured by taxes levied without limitation of rate or amount upon all taxable property in
the transit taxing district and transit area as provided in section 473.446, subdivision 1, clause
(c). As part of its levy made under section 473.446, subdivision 1, clause (c), the council shall
levy the amounts necessary to provide full and timely payment of the obligations and transfer the
proceeds to the appropriate council account for payment of the obligations. The taxes must be
levied, certified, and collected in accordance with the terms and conditions of the indebtedness.
    Subd. 1a. Obligations. (a) After August 1, 1989, the council may issue certificates of
indebtedness, bonds, or other obligations under this section in an amount not exceeding
$30,700,000 for transit financial assistance, as prescribed in the council's capital improvement
program.
(b) As a condition of the use of transit financial assistance under this section, the council
must make the transit facilities it constructs, acquires, or improves for I-394 with funds provided
under this section available to all transit providers on a nondiscriminatory basis, as the council
defines these terms.
(c) The limitation contained in this subdivision does not apply to refunding bonds issued
by the council.
    Subd. 1b. Obligations. The council may also issue certificates of indebtedness, bonds,
or other obligations under this section in an amount not exceeding $62,000,000, of which
$44,000,000 may be used for council transit and paratransit fleet replacement, transit and
paratransit facilities, and transit and paratransit capital equipment, and $18,000,000 may be used
for transit hubs, park-and-ride lots, community-based transit vehicles and replacement service
program vehicles, intelligent vehicle highway systems projects, and other capital expenditures
as prescribed in the council's transit capital improvement program, and related costs including
the cost of issuance and sale of the obligations. For the purposes of this subdivision, uniforms
are not capital expenditures.
    Subd. 1c. Obligations; 1996-1998. In addition to the authority in subdivisions 1a and 1b, the
council may issue certificates of indebtedness, bonds, or other obligations under this section in an
amount not exceeding $20,500,000 which may be used for capital expenditures as prescribed in
the council's transit capital improvement program and for related costs, including the costs of
issuance and sale of the obligations.
    Subd. 1d. Obligations; 1998-2000. In addition to the authority in subdivisions 1a, 1b, and
1c, the council may issue certificates of indebtedness, bonds, or other obligations under this
section in an amount not exceeding $30,000,000, which may be used for capital expenditures as
prescribed in the council's transit capital improvement program and for related costs, including
the costs of issuance and sale of the obligations.
    Subd. 1e. Obligations. In addition to the authority in subdivisions 1a, 1b, 1c, and 1d, the
council may issue certificates of indebtedness, bonds, or other obligations under this section in an
amount not exceeding $32,500,000, which may be used for capital expenditures as prescribed in
the council's transit capital improvement program and for related costs, including the costs of
issuance and sale of the obligations.
The Metropolitan Council, the city of St. Paul, and the Minnesota Department of
Transportation shall jointly assess the feasibility of locating a bus storage facility near Mississippi
and Cayuga Street and I-35E in St. Paul. If the metropolitan council determines feasibility, the
first priority for siting must be at that location.
    Subd. 1f.[Repealed, 2005 c 152 art 1 s 43]
    Subd. 1g. Obligations; 2000-2002. In addition to the authority in subdivisions 1a, 1b, 1c, 1d,
and 1e, the council may issue certificates of indebtedness, bonds, or other obligations under this
section in an amount not exceeding $55,400,000, which may be used for capital expenditures,
other than for construction, maintenance, or operation of light rail transit, as prescribed in the
council's transit capital improvement program and for related costs, including the costs of issuance
and sale of the obligations. The funds must be proportionally spent on capital improvement
projects as recommended by the regional transit capital evaluation committee.
    Subd. 1h. Obligations. After July 1, 2001, in addition to the authority in subdivisions 1a, 1b,
1c, 1d, 1e, and 1g, the council may issue certificates of indebtedness, bonds, or other obligations
under this section in an amount not exceeding $45,000,000 for capital expenditures as prescribed
in the council's regional transit master plan and transit capital improvement program and for
related costs, including the costs of issuance and sale of the obligations, but not for computer
software, or for construction, maintenance, or operation of light rail transit or commuter rail.
    Subd. 1i. Obligations. After July 1, 2002, in addition to the authority in subdivisions 1a,
1b, 1c, 1d, 1e, 1g, and 1h, the council may issue certificates of indebtedness, bonds, or other
obligations under this section in an amount not exceeding $54,000,000 for capital expenditures
as prescribed in the council's regional transit master plan and transit capital improvement
program and for related costs, including the costs of issuance and sale of the obligations, but not
for computer software, or for construction, maintenance, or operation of light rail transit or
commuter rail.
    Subd. 1j. Obligations. After July 1, 2003, in addition to the authority in subdivisions 1a,
1b, 1c, 1d, 1e, 1g, 1h, and 1i, the council may issue certificates of indebtedness, bonds, or other
obligations under this section in an amount not exceeding $45,000,000 for capital expenditures as
prescribed in the council's regional transit master plan and transit capital improvement program
and for related costs, including the costs of issuance and sale of the obligations.
    Subd. 1k. Obligations. After July 1, 2005, in addition to the authority in subdivisions 1a, 1b,
1c, 1d, 1e, 1g, 1h, 1i, and 1j, the council may issue certificates of indebtedness, bonds, or other
obligations under this section in an amount not exceeding $64,000,000 for capital expenditures as
prescribed in the council's regional transit master plan and transit capital improvement program
and for related costs, including the costs of issuance and sale of the obligations.
    Subd. 1l. Obligations. After July 1, 2006, in addition to the authority in subdivisions 1a, 1b,
1c, 1d, 1e, 1g, 1h, 1i, 1j, and 1k, the council may issue certificates of indebtedness, bonds, or other
obligations under this section in an amount not exceeding $32,800,000 for capital expenditures as
prescribed in the council's regional transit master plan and transit capital improvement program,
as adopted through May 1, 2006, and for related costs, including the costs of issuance and sale of
the obligations.
    Subd. 2. Legal investments. Certificates of indebtedness, bonds, or other obligations
issued by the council to which tax levies have been pledged pursuant to section 473.446, are
proper for investment of any funds by a bank, savings bank, savings association, credit union,
trust company, insurance company, or public or municipal corporation, and may be pledged
by any bank, savings bank, savings association, credit union, or trust company as security for
the deposit of public money.
    Subd. 2a. Uses of investment income. Interest or other investment earnings on the proceeds
of bonds issued under this section and on a debt service account for bonds issued under this
section must be used only to:
(1) pay capital expenditures and related expenses for which the obligations were authorized
by this section;
(2) to pay debt service on the obligations or to reduce the council's property tax levy imposed
to pay debt service on obligations issued under this section;
(3) pay rebate or yield reduction payments for the bonds to the United States;
(4) redeem or purchase the bonds; or
(5) make other payments with respect to the bonds that are necessary or desirable to comply
with federal tax rules applicable to the bonds or to comply with covenants made with respect to
the bonds.
    Subd. 3.[Repealed, 1Sp1985 c 10 s 123 subd 1]
    Subd. 4. Transit capital improvement program. The council may not issue obligations
pursuant to this section until the council adopts a three-year transit capital improvement program.
The program must include a capital investment component that sets forth a capital investment
strategy and estimates the fiscal and other effects of the strategy. The component must specify,
to the extent practicable, the capital improvements to be undertaken. For each improvement
specified, the program must describe: (1) need, function, objective, and relative priority; (2)
alternatives, including alternatives not involving capital expenditures; (3) ownership and
operating entity; (4) location and schedule of development; (5) environmental, social, and
economic effects; (6) cost; (7) manner of finance and revenue sources, including federal and state
funds, private funds, taxes, and user charges; and (8) fiscal effects, including an estimate of
annual operating costs and sources of revenue to pay the costs.
History: 1984 c 654 art 3 s 124; 1Sp1985 c 10 s 102-104; 1986 c 460 s 39,40; 1987 c 278 s
17,18; 1987 c 358 s 120; 1989 c 283 s 1; 1992 c 579 s 1; 1994 c 605 art 2 s 1; 1994 c 628 art
3 s 91-94; 1995 c 202 art 1 s 25; 1995 c 236 s 14; 1996 c 471 art 13 s 20,21; 1997 c 231 art
16 s 21; 1998 c 389 art 3 s 22; 1998 c 404 s 54; 1999 c 248 s 10; 2000 c 493 s 14; 2001 c
214 s 12; 2002 c 390 s 16; 2003 c 127 art 12 s 20; 1Sp2003 c 21 art 10 s 11; 2005 c 152 art
1 s 19,20; 2006 c 259 art 13 s 14