Baxter authorization to impose a local sales tax amended.

A bill for an act

relating to taxation; local sales and use; amending the authorization for the city of

Baxter to impose a local sales tax; amending Laws 2006, chapter 259, article 3,

section 10, subdivisions 3, as amended, 4, as amended, 5, as amended.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Laws 2006, chapter 259, article 3, section 10, subdivision 3, as amended by

Laws 2014, chapter 308, article 3, section 24, is amended to read:

Subd. 3.

Use of revenues.

(a) Revenues received from the taxes authorized by

subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax

and to finance the acquisition and betterment of water and wastewater facilities to serve the

cities of Brainerd and Baxter, building and equipping a fire substation, as approved by the

voters at the referendum authorizing the tax. Authorized costs include, but are not limited

to, acquiring property and paying construction and engineering costs related to the projects.

(b) In addition to the projects authorized in paragraph (a), the city of Baxter may, if

approved by the voters at an election under subdivision 5, paragraph (b), allocate up to an

additional $40,000,000 of the revenues received from the taxes authorized by subdivisions

1 and 2 to a capital infrastructure fund. Money from this fund may only be used to finance

(1) sanitary sewer, storm sewer, and water projects, (2) transportation safety improvements,

and (3) improvements to the Brainerd Lakes Area Airport.

new text begin

(c) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),

in addition to the projects authorized in paragraphs (a) and (b), the city of Baxter may, if

approved by the voters at an election as required under Minnesota Statutes, section 297A.99,

subdivision 3, allocate the revenues received from the taxes authorized by subdivisions 1

and 2 to pay for projects in the city, including the costs of collecting and administering the

tax and securing and paying debt service on bonds issued to finance all or part of the

following projects, including property acquisition:

new text end

new text begin

(1) $51,000,000 for upgrades and improvements to the water and wastewater utility

systems;

new text end

new text begin

(2) $16,000,000 for improvements to street infrastructure and safety improvements to

streets affected by regional Highways 371 and 210; and

new text end

new text begin

(3) $10,000,000 for construction of a new public safety facility.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day after the governing body of the

city of Baxter and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

new text end

Sec. 2.

Laws 2006, chapter 259, article 3, section 10, subdivision 4, as amended by Laws

2014, chapter 308, article 3, section 25, is amended to read:

Subd. 4.

Bonds.

(a) The city of Baxter, pursuant to the approval of the voters at the

November 2, 2004, referendum authorizing the imposition of the taxes in this section, may

issue general obligation bonds of the city, in one or more series, in the aggregate principal

amount not to exceed $15,000,000 to finance the projects listed in subdivision 3, paragraph

(a). The debt represented by the bonds is not included in computing any debt limitations

applicable to the city, and the levy of taxes required by Minnesota Statutes, section
475.61
,

to pay the principal of and interest on the bonds is not subject to any levy limitation or

included in computing or applying any levy limitation applicable to the city of Baxter.

(b) The city of Baxter, pursuant to the approval of the voters at the 2014 general election

to extend the tax under this section, may issue general obligation bonds of the city, in one

or more series, in the aggregate principal amount not to exceed (1) $32,000,000 plus an

amount equal to the costs of issuance of the bonds to finance the projects listed in subdivision

3, paragraph (b), clauses (1) and (2), and (2) $8,000,000 plus an amount equal to the costs

of the issuance of the bonds to finance the project listed in subdivision 3, paragraph (b),

clause (3). The debt represented by the bonds is not included in computing any debt

limitations applicable to the city, and the levy of taxes required by Minnesota Statutes,

section
475.61
, to pay the principal of and interest on the bonds is not subject to any levy

limitation or included in computing or applying any levy limitation applicable to the city

of Baxter.

new text begin

(c) The city of Baxter may issue bonds under Minnesota Statutes, chapter 475, to finance

all or a portion of the costs of the projects authorized in subdivision 3, paragraph (c), and

approved by voters as required under Minnesota Statutes, section 297A.99, subdivision 3,

paragraph (a). The aggregate principal amount of bonds issued for this purpose must not

exceed $77,000,000, plus an amount applied to the payment of costs of issuing the bonds.

The bonds may be issued as general obligations of the city and may be paid from or secured

by any funds available to the city, including the tax authorized under subdivision 1. The

issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60

and 275.61. The bonds are not included in computing any debt limitation applicable to the

city. Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and

interest on the bonds is not subject to any levy limitation. A separate election to approve

the bonds under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day after the governing body of the

city of Baxter and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

new text end

Sec. 3.

Laws 2006, chapter 259, article 3, section 10, subdivision 5, as amended by Laws

2014, chapter 308, article 3, section 26, is amended to read:

Subd. 5.

Termination of taxes.

(a) The taxes imposed under subdivisions 1 and 2 expire

at the earlier of a date 12 years after the imposition of the tax or when the Baxter City

Council first determines that the amount of revenues raised from the taxes to pay for the

projects under subdivision 3 equals or exceeds $15,000,000 plus any interest on bonds

issued for the projects under subdivision 4, paragraph (a). Any funds remaining after the

expiration of the taxes and retirement of the bonds shall be placed in a capital project fund

of the city of Baxter. The taxes imposed under subdivisions 1 and 2 may expire at an earlier

time if the city of Baxter so determines by ordinance.

(b) Notwithstanding Minnesota Statutes, sections
297A.99
and
477A.016
, or any other

contrary provision of law, ordinance, or city charter, the city of Baxter may, by ordinance,

extend the taxes authorized under subdivisions 1 and 2 beyond the termination date in

paragraph (a) if approved by the voters of the city at a general election held in 2014. The

question put to the voters must indicate that an affirmative vote would extend the imposition

of the taxes through 2037 or until an additional $40,000,000, plus an amount equal to interest

and issuance costs associated with bonds issued under subdivision 4, paragraph (b), above

the initial amount authorized to pay for $15,000,000 in bonds and associated bond cost and

projects, listed in subdivision 3, paragraph (a), is raised. If extended under this paragraph,

the taxes authorized in subdivisions 1 and 2 will terminate at the earlier of (1) when an

additional $40,000,000, plus an amount equal to interest and issuance costs associated with

bonds issued under subdivision 4, paragraph (b), above the amount authorized under

paragraph (a), is raised, or (2) December 31, 2037.

new text begin

(c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other

contrary provision of law, ordinance, or city charter, the city of Baxter may, by ordinance,

extend the taxes authorized under subdivisions 1 and 2 beyond the termination date in

paragraph (a) if approved by the voters as required under Minnesota Statutes, section

297A.99, subdivision 3, paragraph (a). If extended under this paragraph, the taxes authorized

in subdivisions 1 and 2 will terminate at the earlier of (1) when an additional $77,000,000,

plus an amount equal to interest and issuance costs associated with bonds issued under

subdivision 4, paragraph (c), above the amount authorized under paragraphs (a) and (b), is

raised, or (2) 20 years after the tax is extended.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day after the governing body of the

city of Baxter and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

new text end