05-262S�6s7t'r� �f.
N-6-aS
�Co�unci� File # _�^ � Z
Green Sheet � 2 57 S
Presented By
Referred To
WHEREAS, the Saint Paul City Council believes it to be in the best interests of tbe City to have
the flexibility within the Laws to issue bonds or pledge the t� to pay for Projects, rovided that
such authori� does not exceed twentv Percent (20%o) of the tax revenues;
CITY'S 2005 LEGISLATIVE PROPOSAL TO AMEND LOCAL SALES TAX
1 WHEREAS, the Minnesota Legislature has authonzed the City of Saint Paul to impose an
2 additional sales tax of up to one-half of one percent on sales transactions by Laws 1993, chapter
3 3�5, article 9 section 46 ("Laws"); and
4
5 WHEREAS, the Laws have been amended with respect to the use of the revenues received from
6 the tax and the current Laws do not permit the issuance of bonds by the City or the pledging of
7 the tax by the City for bonds issued by the housing and redevelopment authority of the City of
8 Saint Paul, Minnesota to pay for capital projects Co further residential, cultural, commercial and
9 economic development ("Projects") in both downtown St. Paul and St. Paul neighborhoods; and
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NOW
RESOLUTION
CITY OF SAINT PAUL, VTINNESOTA
Committee: Aate
I�
RESOLVED, the City of Saint Paul supports changes to the existing I.aws in the form attached to
this resolution ("Amendment") that will facilitate the Projects; and
BE TT FL7RTHER RESOLVED, that the City Council hereby directs and authorizes its legislative
staff to present the Amendment ta the Viinnesota Legislature foz its adoption.
Requested by nepartment of:
By:
AdopCion Ce
Hy: �
Anproved by
By:
.. �J/��.��
� %
ved by Mayor for Submission to Council
�
a5- ac�2
Sec. _ Iaws 1993, chapter 375, article 9, section 46, subdivision 3, as amended by
L.aws 1998, chapter 389, article 8, section 31, is amended to read:
Subd. 3. BONDS. The city may issue general obligation bonds or special revenue bonds
to finance all or a portion of the cost for projects authorized in subdivision 2, paragraph (a) or
paza�raph lbl. The debt represented by the bonds shall not be included in computing any debt
limitations applicable to the city. The bonds may be paid from or secured by any funds available
to the city, including the tax authorized under subdivision 1, any revenues derived from the
project, taJC increments from the taac increment district that includes the project, and revenue from
any lodging taac imposed under Laws 1982, chapter 523, article 25, section 1. The bonds may be
issued in one or more series and sold without election on the question of issuance of the bonds or
a property tas to pay them. Except as otherwise provided in this section, the bonds must be
issued, sold, and secured in the manner provided in Minnesota Statutes, chapter 475. The
aggregate principal amount of bonds issued under this subdivision for proiects authorized in
subdivision 2, para�ra �� h(a), may not exceed $65 million, provided that the city may issue
additional bonds under this subdivision for projects authorized in subdivision 2, paragraph (al, as
long as the total principal amount of the additional bonds together with the outstanding principal
amount of the bonds previousiy issued under this subdivision for nroLcts authorized in
subdivision 2, parag_ra�h (a), does not exceed $130 million. The bonds authorized by this
subdivision shall not be included in local general obligation debt as defined in Laws 1971,
chapter 773, as amended, including Laws 1992, chapter 511, and sha11 not affect the amount of
capital improvement bonds authorized to be issued by the city of St. Paul. Bonds to Dav for
pro�ects authorized in subdivision 2, paragraph (b) may be issued if the citv council first
determines that twenty�ercent (20%) of the revenues derived from the taac authorized under
section 1 toeether with other revenues pledeed to �aytnent of the bonds, including the oroceeds
of definitive bonds, is expected to exceed the annual debt service on the bonds.
[EFFECTIVE DATE.] This section is effective
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet
PE - P�2nnmg&EconomicDevelopmem
Confact Petson $ Phone:
Bob Geurs
Must Be on Council F�qenda by (Date):
ContractType:
RE-RESOLUIION
17�AAR-05
` '
Assign
Number
For
Routing
OrdN
Total # of Signature Pages _(Clip All Locations for Signaturej
Green Sheet NO: 3025798
0 lannin &Eco omicDe o
1 lann & Eca omic Deve o De artmeot Directur
2 Hom
3 oun "1
4 erk (S Clerk
5
Resolution amending STAR Program to allow for issuance of bonds for land acquisition.
ttlatfons: Appro�e (A) or Reject (R): Pe2onal5eNlce GonVaCtS MustMSwerthe Follow�ng Quesfions:
Planning Commission 1. Has this
persoNfirtn eeer waked under a coMract for this departmeM?
CIB Committee Yes No
Chif Ser.ice Commission 2. Has lhis persoNfirm e�er been a city employee?
Yes No
3. Does this persoNfirtn possess a skill not normally possessed by any
cufreM city empfoyee?
Yes No
Explain all yes answers on separate sheet and ariach to green sfieet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
05-��2
�
Advanqges M Approved:
Disadvanfapes IfApproved:
Bisadvan Wges If Not Approvetl:
Transaction:
Funding Source:
Financial Informallon:
(Explain)
CosflRevenue BudgMed:
Activity Number.
March 17, 2005 10:04 AM Page 1
Council File # ' �Z
GreenSheet# d� a�J1�
PRESENTED BY
REFERxED To
CONiN1iTTEE:
�l
Saint Paul to impose an
ctions by Laws 1993, chapter
i WE�REAS, the Minnesota Legislature has authorized the
z additional sales tax of up to one-half of one percent on salE
a 375, article 9 section 46 ("Laws"); and �
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s
a
s
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10
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WHEREAS, the Laws have been amended with spect to the use of the revenues received from
the ta�c and the current Laws do not pernut th � ssuance of bonds by the City or the pledging of
the tas by the City for bonds issued by the ousing and redevelopment authority of the City of
Saint Paul to pay for capital projects to rther residential, cultural, commercial and economic
development ("Projects") in both do ntown St. Paul and St. Paul neighborhoods; and
WHEREAS, the Saint Paul C� Council believes it to be in the best interests of the City to have
the flexibility within the L s to issue bonds or pledge the tax to pay for Projects;
��L��
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
�:
RESOLVED, t City of Saint Paul supports changes to the existing I.aws in the form attached to
this resolud ("AmendmenP') that will facilitate the Projects; and
BE TT THER RE50LVED, that the City Council hereby directs and authorizes its legislative
s to present the Amendment to the Minnesota Legislature for its adoption.
Requested hy ➢epartment of:
Adoption Certified by Council Secretary
Byc
Approved by Mayor: Date
BY:
��
av: � /�.
Fozm App ve b Cit ttor
By:
Approved by Mayor for Submission to Council
BY:
�
Adopted by Council: Date
t�S��2
5ec. _. L,aws 1993, chapter 375, article 9, section 46, subdivision 3, as amended
L.aws 1998, chapter 389, article 8, section 31, is amended to read:
Subd. 3. BONDS. The city may issue general obligation bonds or speci revenue bonds
to finance a11 or a portion of the cost for projects authorized in subdivision 2, aragraph (a) or
paragraph (b1. The debt represented by the bonds shall not be included in omputing any debt
limitations applicable to the city. The bonds may be paid from or secu d by any funds available
to the city, including the tax authorized under subdivision 1, any re nues derived from the
project, tax increments from the tax increment district that inclu s the project, and revenue from
any lodging ta�c imposed under Laws 1982, chapter 523, artic 25, section 1. The bonds may be
issued in one or more series and soid without election on e quesfion of issuance of the bonds or
a property tac to pay them. Except as otherwise provi d in this section, the bonds must be
issued, sold, and secured in the manner provided
aggregate principal amount of bonds issued und
subdivision 2, paza�raoh (a), may not excee 6�
additional bonds under this subdivision f rrroie
Statutes, chapter 475. The
'this subdivision for �ro,jects authorized in
million, provided that the city may issue
long as the total principal amount of t additional bonds to�eYher with the outstanding principal
amount of the bonds previously iss ed under this subdivision for �rojects authorized in
subdivision 2, paragraph (a), d s not exceed $130 million. The bonds authorized by this
subdivision shall not be inc] ed in local general obligation debt as defined in Laws 1971,
chapter 773, as amended ncluding Laws 1992, chapter 511, and shall not affect the amount of
capital improvement nds authorized to be issued by the city of St. Paul. The city mav also
DATE.] This section is effective
1748950v1