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S.F. No. 1958 - Lewis and Clark Regional Water System Project Authority Modifications
 
Author: Senator Rod Skoe
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: April 8, 2015



 

This bill makes changes to the Lewis and Clark Regional Water System Project, authorized in the 2014 second Omnibus Tax Bill.  The 2014 legislation contained a formula for state aid based in part on federal aid for the project, and contained carryforward and clawback provisions for the state aid in case federal aid exceeded state debt service payments.  The legislation also authorized the city of Luverne, and Noble and Rock counties to impose a local option sales tax to pay the local portion of bond debt service for the project.  The city of Worthington’s existing local option sales tax was also extended for this purpose.  This bill removes the federal aid components of the state aid formula and increases the amount of the bonding authority for the project.  The bill also re-authorizes the city of Luverne to impose its local option sales tax, as the city did not approve it last year and the authorization has expired.   

Section

Provision

1

Increases the maximum amount of the municipalities’ bonding authority from $45 million to $50 million. 
 

2

Removes the federal aid component of the state aid formula.  State aid for the project would be the sum of principal and interest payable in the preceding calendar year on bonds issued for the project and 1.5 times the combined adjusted net tax capacity of Nobles and Rock counties for the assessment year prior to the aid payable year.  Removes the aid carryforward and clawback provisions that apply if federal aid is received for the project.  Effective beginning with aids payable in 2016.    
 

3

Allows the city of Luverne to impose a 0.5 percent local sales and use tax, if approved by the voters at a general election held prior to December 31, 2020.  Under general law, local approval of a special law must be completed before the beginning of the next regular session of a biennial session for it to take effect.  Because the Luverne local sales tax was not approved, its authority to impose the tax has expired.  Effective the day following final enactment.   

 

 
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