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S.F. No. 1451 - Mankato and North Mankato Local Sales Tax Modification
 
Author: Senator Kathy Sheran
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: March 18, 2015



 

This bill modifies the authorized uses for the revenues raised from the one-half percent sales taxes currently authorized in Mankato and North Mankato.  The bill also authorizes additional bonding authority for proposed projects.  Effective when the respective cities file their approval with the secretary of state.

Section

Provision

1

Paragraph (b) authorizes the city of Mankato to use its currently imposed local sales tax to fund up to $29 million in improvements to regional recreational facilities and to the flood control and levee system; water quality improvement projects in Blue Earth and Nicollet counties; expansion of a transit building and related transit improvements; and matching funds for regional facilities such as a historic museum, supportive housing, and a senior center.  The authorization is subject to voter approval at a general or special election held on or before December 31, 2016.  

Paragraph (c) authorizes the city of Mankato to use its currently imposed local sales tax to fund up to $25 million for construction of specified new regional athletic facilities.  The authorization is subject to voter approval at a general or special election held on or before December 1, 2018. 
 

2

Requires that the taxes authorized under section 1 expire when revenues are sufficient to pay off bonds to fund the specified projects.  Under the current authorization, the taxes are set to expire December 31, 2022.  If either of the uses authorized under section 1, paragraphs (b) or (c), are approved, the taxes must expire no later than December 31, 2032.  If both of the uses are approved, then the taxes must expire no later than December 31, 2038.  The taxes may expire at an earlier time if approved by city ordinance.
 

3

Authorizes the city to issue bonds to fund the projects in section 1.  Authorizes the city to use excess revenue after principal and interest payments on the bonds are made to fund capital replacement of the uses authorized in section 1.
 

4

Requires the city to pass a resolution by July 1, 2015, approving the extension of either or both of the taxes for uses authorized in section 1.
 

5

Subd. 2, paragraph (b) authorizes an additional $9 million in bonds for the city of North Mankato to fund existing projects.  The $9 million amount must be reduced by the revenues raised to fund the construction of new regional athletic facilities authorized under paragraph (c), which must not exceed $5 million. 

Subd. 2a, paragraph (a) requires the city to pass a resolution approving the additional bond issuance by July 1, 2015.  Requires the city to publish the resolution for two weeks, hold a public hearing, and adopt and publish a second resolution after the hearing. If, within 30 days after publication of the second resolution, a petition requesting a referendum on the proposed resolution is signed by at least 10 percent of the voters at the last general election is filed with the county auditor, the extension of the tax must be submitted to voters for approval at a general or special election held before December 31, 2015.  Paragraph (b) authorizes the city to use up to $5 million of the sales tax revenue authorized under paragraph (a) to be used for construction of regional athletic facilities.

Subd. 3 authorizes the city to issue up to $9 million in bonds to fund the projects authorized in section 5, subject to the reverse referendum requirement. Authorizes the city to use excess revenue after principal and interest payments on the bonds are made to fund capital replacement of the uses authorized in subdivision 2.

Subd. 4 requires that the taxes authorized under subdivision 3, subject to the reverse referendum requirement, expire December 31, 2028.    

 

 
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