Bill Text: MN HF696 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Local government authority to issue bonds payable with property taxes for employee benefits repealed.
Sponsorship: Partisan Bill (Republican 5)
Status: (Introduced - Dead) 2011-02-24 - Introduction and first reading, referred to Government Operations and Elections [HF696 Detail]
Download: Minnesota-2011-HF696-Introduced.html
1.2relating to local government; borrowing authority; repealing the authority to
1.3issue bonds payable with property taxes for certain employee benefits; amending
1.4Minnesota Statutes 2010, sections 475.51, subdivision 4; 475.52, subdivision 6;
1.5475.58, subdivision 1.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 475.51, subdivision 4, is amended to read:
1.8 Subd. 4. Net debt. "Net debt" means the amount remaining after deducting from its
1.9gross debt the amount of current revenues which are applicable within the current fiscal
1.10year to the payment of any debt and the aggregate of the principal of the following:
1.11 (1) Obligations issued for improvements which are payable wholly or partly from the
1.12proceeds of special assessments levied upon property specially benefited thereby, including
1.13those which are general obligations of the municipality issuing them, if the municipality is
1.14entitled to reimbursement in whole or in part from the proceeds of the special assessments.
1.15 (2) Warrants or orders having no definite or fixed maturity.
1.16 (3) Obligations payable wholly from the income from revenue producing
1.17conveniences.
1.18 (4) Obligations issued to create or maintain a permanent improvement revolving
1.19fund.
1.20 (5) Obligations issued for the acquisition, and betterment of public waterworks
1.21systems, and public lighting, heating or power systems, and of any combination thereof or
1.22for any other public convenience from which a revenue is or may be derived.
1.23 (6) Debt service loans and capital loans made to a school district under the provisions
1.24of sections126C.68 and
126C.69 .
2.1 (7) Amount of all money and the face value of all securities held as a debt service
2.2fund for the extinguishment of obligations other than those deductible under this
2.3subdivision.
2.4 (8) Obligations to repay loans made under section216C.37 .
2.5 (9) Obligations to repay loans made from money received from litigation or
2.6settlement of alleged violations of federal petroleum pricing regulations.
2.7 (10)Obligations issued to pay pension fund or other postemployment benefit
2.8liabilities under section
475.52, subdivision 6, or any charter authority.
2.9(11) Obligations issued to pay judgments against the municipality under section
2.10475.52, subdivision 6
, or any charter authority.
2.11(12) (11) All other obligations which under the provisions of law authorizing their
2.12issuance are not to be included in computing the net debt of the municipality.
2.13EFFECTIVE DATE.This section is effective for obligations issued after June
2.1430, 2011.
2.15 Sec. 2. Minnesota Statutes 2010, section 475.52, subdivision 6, is amended to read:
2.16 Subd. 6. Certain purposes. Any municipality may issue bonds for paying
2.17judgments against it; for refunding outstanding bonds; or for funding floating
2.18indebtedness.; for funding actuarial liabilities to pay postemployment benefits to
2.19employees or officers after their termination of service; or for funding all or part of the
2.20municipality's current and future unfunded liability for a pension or retirement fund or
2.21plan referred to in section
356.20, subdivision 2, as those liabilities are most recently
2.22computed under sections
356.215 and
356.216. The board of trustees or directors of a
2.23relief association referred to in section
69.77 must consent and must be a party to any
2.24contract made under this section with respect to the fund held by it for the benefit of and in
2.25trust for its members. For purposes of this section, the term "postemployment benefits"
2.26means benefits giving rise to a liability under Statement No. 45 of the Governmental
2.27Accounting Standards Board.
2.28EFFECTIVE DATE.This section is effective for obligations issued after June
2.2930, 2011.
2.30 Sec. 3. Minnesota Statutes 2010, section 475.58, subdivision 1, is amended to read:
2.31 Subdivision 1. Approval by electors; exceptions. Obligations authorized by law or
2.32charter may be issued by any municipality upon obtaining the approval of a majority of
3.1the electors voting on the question of issuing the obligations, but an election shall not be
3.2required to authorize obligations issued:
3.3 (1) to pay any unpaid judgment against the municipality;
3.4 (2) for refunding obligations;
3.5 (3) for an improvement or improvement program, which obligation is payable wholly
3.6or partly from the proceeds of special assessments levied upon property specially benefited
3.7by the improvement or by an improvement within the improvement program, or from tax
3.8increments, as defined in section469.174 , subdivision 25, including obligations which are
3.9the general obligations of the municipality, if the municipality is entitled to reimbursement
3.10in whole or in part from the proceeds of such special assessments or tax increments and
3.11not less than 20 percent of the cost of the improvement or the improvement program is to
3.12be assessed against benefited property or is to be paid from the proceeds of federal grant
3.13funds or a combination thereof, or is estimated to be received from tax increments;
3.14 (4) payable wholly from the income of revenue producing conveniences;
3.15 (5) under the provisions of a home rule charter which permits the issuance of
3.16obligations of the municipality without election;
3.17 (6) under the provisions of a law which permits the issuance of obligations of a
3.18municipality without an election;
3.19 (7)to fund pension or retirement fund liabilities of a municipality pursuant to
3.20section
475.52, subdivision 6;
3.21(8) under a capital improvement plan under section
373.40 ;
3.22(9) (8) under sections
469.1813 to
469.1815 (property tax abatement authority
3.23bonds), if the proceeds of the bonds are not used for a purpose prohibited under section
3.24469.176, subdivision 4g
, paragraph (b); and
3.25(10) to fund postemployment benefit liabilities pursuant to section
475.52,
3.26subdivision 6
, of a municipality, other than a school district, if the liabilities are limited to:
3.27(i) satisfying the requirements of section
471.61, subdivision 2b; and
3.28(ii) other postemployment benefits, which the municipality no longer provides to
3.29employees hired after a date before the obligations are issued; and
3.30(11) (9) under section
475.755 .
3.31EFFECTIVE DATE.This section is effective for obligations issued after June
3.3230, 2011.
1.3issue bonds payable with property taxes for certain employee benefits; amending
1.4Minnesota Statutes 2010, sections 475.51, subdivision 4; 475.52, subdivision 6;
1.5475.58, subdivision 1.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 475.51, subdivision 4, is amended to read:
1.8 Subd. 4. Net debt. "Net debt" means the amount remaining after deducting from its
1.9gross debt the amount of current revenues which are applicable within the current fiscal
1.10year to the payment of any debt and the aggregate of the principal of the following:
1.11 (1) Obligations issued for improvements which are payable wholly or partly from the
1.12proceeds of special assessments levied upon property specially benefited thereby, including
1.13those which are general obligations of the municipality issuing them, if the municipality is
1.14entitled to reimbursement in whole or in part from the proceeds of the special assessments.
1.15 (2) Warrants or orders having no definite or fixed maturity.
1.16 (3) Obligations payable wholly from the income from revenue producing
1.17conveniences.
1.18 (4) Obligations issued to create or maintain a permanent improvement revolving
1.19fund.
1.20 (5) Obligations issued for the acquisition, and betterment of public waterworks
1.21systems, and public lighting, heating or power systems, and of any combination thereof or
1.22for any other public convenience from which a revenue is or may be derived.
1.23 (6) Debt service loans and capital loans made to a school district under the provisions
1.24of sections
2.1 (7) Amount of all money and the face value of all securities held as a debt service
2.2fund for the extinguishment of obligations other than those deductible under this
2.3subdivision.
2.4 (8) Obligations to repay loans made under section
2.5 (9) Obligations to repay loans made from money received from litigation or
2.6settlement of alleged violations of federal petroleum pricing regulations.
2.7 (10)
2.8
2.9
2.11
2.12issuance are not to be included in computing the net debt of the municipality.
2.13EFFECTIVE DATE.This section is effective for obligations issued after June
2.1430, 2011.
2.15 Sec. 2. Minnesota Statutes 2010, section 475.52, subdivision 6, is amended to read:
2.16 Subd. 6. Certain purposes. Any municipality may issue bonds for paying
2.17judgments against it; for refunding outstanding bonds; or for funding floating
2.18indebtedness.
2.19
2.20
2.21
2.22
2.23
2.24
2.25
2.26
2.27
2.28EFFECTIVE DATE.This section is effective for obligations issued after June
2.2930, 2011.
2.30 Sec. 3. Minnesota Statutes 2010, section 475.58, subdivision 1, is amended to read:
2.31 Subdivision 1. Approval by electors; exceptions. Obligations authorized by law or
2.32charter may be issued by any municipality upon obtaining the approval of a majority of
3.1the electors voting on the question of issuing the obligations, but an election shall not be
3.2required to authorize obligations issued:
3.3 (1) to pay any unpaid judgment against the municipality;
3.4 (2) for refunding obligations;
3.5 (3) for an improvement or improvement program, which obligation is payable wholly
3.6or partly from the proceeds of special assessments levied upon property specially benefited
3.7by the improvement or by an improvement within the improvement program, or from tax
3.8increments, as defined in section
3.9the general obligations of the municipality, if the municipality is entitled to reimbursement
3.10in whole or in part from the proceeds of such special assessments or tax increments and
3.11not less than 20 percent of the cost of the improvement or the improvement program is to
3.12be assessed against benefited property or is to be paid from the proceeds of federal grant
3.13funds or a combination thereof, or is estimated to be received from tax increments;
3.14 (4) payable wholly from the income of revenue producing conveniences;
3.15 (5) under the provisions of a home rule charter which permits the issuance of
3.16obligations of the municipality without election;
3.17 (6) under the provisions of a law which permits the issuance of obligations of a
3.18municipality without an election;
3.19 (7)
3.20
3.21
3.22
3.23bonds), if the proceeds of the bonds are not used for a purpose prohibited under section
3.25
3.26
3.27
3.28
3.29
3.30
3.31EFFECTIVE DATE.This section is effective for obligations issued after June
3.3230, 2011.
