191225191225-1
ORIGINAL TO CITY CLERK � AL
r y CITY O�.AUL COLEUNCIL NO.
OFFICE OF THE CITY CLERK
COUNCIL 'RESOLUTION — GENERAL FORM
PRESENTED BY
COMMISSIONER DATE
. tqo
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131 MO1AU I�
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COUNCILMEN
Yeas Nays
DeCourcy
Rolland
Mortinson
ee
Rosen
Winkel
�enr3 i�
Mr. Vic eSj�elcnt (Peterson)
SM 5.58
In
I Favor
Against
MAR 5 1959
Adopted by the Council 19—
MAR 5 1959
Approved 19—
i
Mayor
191225
A BILL
FOR AN ACT AUTHORIZING ADVANCES OF CASH
OR ENGINEERING SERVICES, OR BOTH, BY
MUNICIPALITIES TO THE COPMI(ISSIONER OF
HIGHWAYS, TO EXPEDITE TRUNK HIGHWAY CON-
STRUCTION AND IMPROVEMENT WITHIN MUNICI-
PALITIES; AUTHORIZING I'1UNICIPALITIES TO
ISSUE BONDS FOR SUCH PURPOSE; PROVIDING
AUTHORITY TO THE COMMISSIONER OF HIGHWAYS
TO ENTER INTO AGREEMENTS WITH MUNICIPALITIES
TO ACCEPT SUCH ADVANCE AND TO REPAY SUCH
ADVANCE OUT OF TRUNK HIGHWAY FUNDS; AUTHOR-
IZING ISSUANCE AND SALE OF TRUNK HIGHWAY
BONDS BY THE STATE TO SUCH IMUNICIPALITY
FOR THE REPAYMENT OF SUCH CASH OR ENGINEER-
ING SLRVICES, OR BOTH, WITHOUT INTEREST THEREON4
BE IT ENACTED BY tHE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1, It is hereby declared that the early improve-
ment of the Minnesota trunk highway system within the municipali-
ties of the State to facilitate safe and efficient traffic move-.L
meht, to cope with the rapidly increasing vehicular traffic
congestion, to solve the problem of the needed public safety in
relation to vehicular flow is imperative and immediately needed;
that the cost of many such necessary projects would necessarily
require a delay in their programming, planning, engineering work
and execution if reliance must solely be limited to existing methods
now legally available to the State and its municipalities; that the
municipalities have an important interest in such trunk highway
projects because of the salutary effects which projects, when exe-
cuted, will have on the economic growth, traffic mobility, proper
utilization of local street systems and the inter - relationship of
these with the State trunk highway system, and the public safety of
the pedestrian and motor vehicle operator on the highways, and for
many other reasons; that the State has an important and immediate
interest in the early execution of State trunk highway system im-
provement in the municipalities of this State; that such municipal
interest in and need for such trunk highway projects in the
-1-
municipalities warrants the voluntary participation by the munici-
palities, as authorized by Minnesota Constitution, Article XVI,
Section 11, in aiding in the preliminary financing of such through
the advance of cash and engineering services, or both, to the Com-
missioner of Highways which would otherwise be deferred for lack
of current available funds; that it is in the public interest of
both the State and its municipalities that the powers granted by
the provisions of this Act be put into effect, made available and
be put to use at the earliest opportunity.
Sec. 2. In order to expedite and facilitate early action
on any state trunk highway project by the Commissioner of Highways
for the location, construction, reconstruction, improvement or any
combination thereof, including the planning, programming, and en-
gineering work in connection therewith, of a trunk highway within
its limits, any municipality is hereby authorized to execute an
agreement with the Commissioner of Highways under which it may
agree to advance cash or engineering services, or both, to the
Commissioner of Highways in consideration of the undertaking of
the project by the State at a time specified in the agreement,
such advance not to exceed that part of the estimated cost of the
project which is to be borne by the State. The amount agreed to
be advanced shall be exclusive of and in addition to any amount
agreed to be paid by the municipality as its share of the cost of
the project under cooperative agreements as provided by law.
Sec. 3. Any such agreement may provide for repayment by
the Commissioner of Highways to such municipality of the principal
amount of such advance extended to the Commissioner by any such
municipality, without interest, in not over 30 annual installments.
The Commissioner of Highways is hereby authorized on behalf of the
State of Minnesota to execute such agreement for repayment of the
:PZ
principal amount of such advance, without interest, to any such
municipality out of the trunk highway fund. Such agreement may
include all other terms and conditions which the parties may deem
necessary to comply with all other provisions of law relating to
cooperative agreements between the Commissioner of Highways and
the municipalities.
Sec. 4. Such agreement between the Commissioner of High-
ways and any municipality may provide, as an alternative method
to that authorized in Section 3, for repayment by the Commissioner
of such advances, without interest, through the issuance and sale
of bonds by the State of Minnesota, in the amount of such advance,
to the municipality advancing such cash or engineering services,
or both, in consideration therefor and pursuant to the procedure
for such issuance and sale as provided in Sections 1 to 10.
Sec. 5. At any time after an agreement shall have been
executed by the Commissioner and a municipality whereby the munici-
pality shall agree to advance to the Commissioner cash or engineer-
ing services, or both, to carry out the purposes of Sections 1 to
10, the municipality, through its governing body, shall have the
authority to issue and sell the general obligation bonds of the
municipality to provide for the advance of such cash or engineer-
ing services, or both, to the Commissioner, said bonds to be secured
by the.full faith and credit of the municipality and be issued and
sold in a principal amount not exceeding the amount of the advance.
Such bonds shall be issued and sold in accordance with Minnesota
Statutes, Chapter 475, except that an electioh by the voters of
such municipality shall not be required to authorize issuance of
such bonds, and the bonds shall not be included in net debt for
the purposes of applying any statutory or charter limit on indebted-
ness. Money repaid to the municipality by the Commissioner under
the agreement, authorized in Section 3, or moneys received by the
-3-
municipality through redemption of bonds issued
authority granted in Section 4, shall be placed
in a separate sinking fund and shall be used by
duce, by an equivalent amount, the tax levy for
the principal and interest on such bonds, made
Minnesota Statutes, Section 475.61 or 475.64.
by the State under
by the municipality
it solely to re-
the payment of
)ursuant to
Sec. 6. If any municipality, exercising the authority
granted it by Sections 1 to 10, shall advance cash or engineering
services, or both, to the Commissioner of Highways to accomplish
the purposes of this Act, the bonds of the State of Minnesota,
authorized to be issued and sold by the State of Minnesota under
Section 4 and Section 7, may be issued and sold to such municipality
in the amount of the cash or engineering services, or both, and in
consideration therefor, said amount to be determined by the Com=
missioner. The municipality is hereby authorized tb receive and
accept such bonds in consideration for the advance made by it of
such cash or engineering services or both.
Sec. 7. If the Commissioner of Highways, in the exercise
of his judgment, deems that it is in the best interest of the State
of Minnesota to provide for repayment under the method authorized
in Section 4, authority is hereby granted for the issuance and
sale of bonds by the State of Minnesota under the provisions of
Minnesota Constitution, Article XVI, Section 12 in amounts limited
in each instance to the amount of the advance by any such munici-
pality to the Commissioner of Highways under the agreement between
these parties authorized under Sections 1 to 10, and the moneys in
the trunk highway fund shall be pledged to their payment, but if the
sinking fund shall not be adequate to meet the payment of the prin-
cipal thereon, a tax shall be levied upon all taxable property
within the State in an amount sufficient to meet such deficiency
a
unless the legislature shall, in its discretion, appropriate a
sufficient amount to the sinking fund out of moneys in the State
Treasury not otherwise appropriated. The bonds shall be issued
and sold to the municipality making such advance by a board con-
sisting of the State Auditor, State Treasurer and Commissioner
of Highways, under such rules and in such form and denomination
as the board shall determine, shall be signed by the State
Treasurer and attested by the Secretary of State, and shall be
sold to such municipality for not less than par without interest.
Sec. 8. With the consent of the Commissioner of Highways,
municipalities of 5,000 or more in population now receiving an
allotment of highway users funds pursuant to Minnesota Constitution
Article XVI, Section 8, for the use of the municipal state aid
street system may use moneys so allotted to the normal maintenance
account of such city out of the municipal state aid street fund
for the payment of interest on the bonds issued by such munici-
pality under the authority of Sections 1 through 8,
Sec. 9. The term, municipality, when used in Sections 1
to 8, is defined as any city, village or borough in the State of
Minnesota.
Sec. 10. Sections 1 to 10 shall be liberally construed to
effectuate their purposes, and in the event any section or clause
thereof shall be held invalid, the remaining sections or parts
thereof shall continue in effect.
-5-
A BILL
FOR AN ACT AUTHORIZING ADVANCES OF CASH
OR ENGINEERING SERVICES, OR BOTH, BY
MUNICIPALITIES TO THE COMMISSIONER OF
HIGHWAYS, TO EXPEDITE TRUNK HIGHWAY CON-
STRUCTION AND IMPROVEMENT WITHIN MUNICI-
PALITIES; AUTHORIZING 1:4UNICIPALITIES TO
ISSUE BONDS FOR SUCH PURPOSE; PROVIDING
AUTHORITY TO THE COMMISSIONER OF HIGHWAYS
TO ENTER INTO AGREEMENTS WITH MUNICIPALITIES
TO ACCEPT SUCH ADVANCE AND TO REPAY SUCH
ADVANCE OUt OF TRUNK HIGHWAY FUNDS; AUTHOR-
IZING ISSUANCE AND SALE OF TRUNK HIGHWAY
BONDS BY THE STATE TO SUCH MUOICIPALITY
FOR THE REPAYMENT OF SUCH CASH OR ENGINEER-
ING SERVICES, OR BOTH, WITHOUT INTEREST THEREON.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. It is hereby declared that the early improve-
ment of the Minnesota trunk highway system within the municipali-
ties of the State to facilitate safe and efficient traffic move-
ment, to cope with the rapidly increasing vehicular traffic
congestion, to solve the problem of the needed public safety in
relation to vehicular flow is imperative and immediately needed;
that the cost of many such necessary projects would necessarily
require a delay in their programming, planning, engineering work
and execution if reliance must solely be limited to existing methods
now legally available to the State and its municipalities; that the
municipalities have an important interest in such trunk highway
projects because of the salutary effects which projects, when exe-
cuted, will have on the economic growth, traffic mobility, proper
utilization of local street systems and the inter- relationship of
these with the State trunk highway system, and the public safety of
the pedestrian and motor vehicle operator on the highways, and for
many other reasons; that the State has an important and immediate
interest in the early execution of State trunk highway system im-
provement in the municipalities of this State; that such municipal
interest in and need,for such trunk highway projects in the
-1-
municipalities warrants the voluntary participation by the munici-
palities, as authorized by Minnesota Constitution, Article XVI,
Section 11, in aiding in the preliminary financing of such through
the advance of cash and engineering services, or both, to the Com-
missidner of Highways which would otherwise be deferred for lack
of current available funds; that it is in the public interest of
both the State and its municipalities that the powers granted by
the provisions of this Act be put into effect; made available and
be put tb use at the earliest opportunity.
Sec. 2. In order to expedite and facilitate early action
on any state trunk highway project by the Commissioner of Highways
for the location, cohsiruction, reconstruction, improvement or any
combination thereof, including the planning, programming, and en-
gineering work in connection therewith, of a trunk highway within
its limits, any municipality is hereby authorized to execute an
agreement with the Commissioner of Highways under which it may
agree to advance cash or engineering services, or both, to the
Commissioner of Highways in consideration of the undertaking of
the project by the State at a time specified in the agreement,
such advance not to exceed that part of the estimated cost of the
project which is to be borne by the State. The amount agreed to
be advanced shall be exclusive of and in addition to any amount
agreed to be paid by the municipality as its share of the cost of
the project under cooperative agreements as provided by law.
Sec. 3. Any such agreement may provide for repayment by
the Commissioner of Highways to such municipality of the principal
amount of such advance extended to the Commissioner by any such
municipality, without interest, in not over 30 annual installments.
The Commissioner of Highways is hereby authorized on behalf of the
State of Minnesota to execute such agreement for repayment of the
-2-
principal amount of such advance, without interest, to any such
municipality out of the trunk highway fund. Such agreement may
include all other terms and conditions which the parties may deem
necessary to comply with all other provisions of law relating to
cooperative agreements between the Commissioner of Highways and
the municipalities.
Sec. 4. Such agreement between the Commissioner of High-
ways and any municipality may provide, as an alternative method
to that authorized in Section 3, for repayment by the Commissioner
of such advances, without interest, through the issuance and sale
of bonds by the State of Minnesota, in the amount of such advance,
to the municipality advancing such cash or engineering services,
or•both, in consi8eration therefor and pursuant to the procedure
for such issuance and sale as provided in Sections 1 to 10.
Sec. 5. At any time after an agreement shall have been
executed by the Commissioner and a municipality whereby the-munici-
pality shall agree to advance to the Commissioner cash or engineer-
ing services, or both, to carry out the purposes of Sections 1 to
10, the municipality, through its governing body, shall have the
authority to issue and sell the general obligation bonds of the
municipality to provide for the advance of such cash or engineer-
ing services, or both, to the Commissioner, said bonds to be secured
by the full faith and credit of the municipality and be issued and
sold in a principal amount not exceeding the amount of the advance.
Such bonds shall be issued and sold in accordance with Minnesota
Statutes, Chapter 475, except that an electioln by the voters of
such municipality shall not be required to authorize issuance of
such bonds, and the bonds shall not be included in net debt for
the purposes of applying any statutory or charter limit on indebted-
ness. Money repaid to the municipality by the Commissioner under
the agreement, authorized in Section 3, or moneys received by the
-3-
municipality through redemption of bonds issued by the State under
authority granted in Section 4, shall be paced by the municipality
in a separate sinking fund and shall be used by it solely to re-
duce, by an equivalent amount, the tax levy for the payment of
the principal and interest on such bonds, made pursuant to
Minnesota Statutes, Section 475.61 or 475.64.
Sec. 6. If ahy municipality, exercising the authority
granted it by Sections 1 to 10, shall advance cash or engineering
services, or both, to the Commissioner of Highways to accomplish
the purposes of this Act, the bonds of tho State of Minnesota,
authorized to be issued and sold by the State of Minnesota sander
Section 4 and Section 71 may be issued and sold to such municipality
in the amount of the cash or engineering seivices, of both, and in
consideration therefor, said amount to be determined by the Com-
missioner. The municipality is hereby authorized to receive and
accept such bonds in consideration for the advance made by it of
such cash or engineering services or both.
Sec. 7. If the Commissioner of Highways, in the exercise
of his judgment, deems that it is in the best interest of the State
of Minnesota to provide for repayment under the method authorized
in Section 4, authority is hereby granted for the issuance and
sale of bonds by the State of Minnesota under the provisions of
Minnesota Constitution, Article XVI, Section 12 in amounts limited
in each instance to the amount of the advance by any such munici-
pality to the Commissioner of Highways under the agreement between
these parties authorized under Sections 1 to 10, and the moneys in
the trunk highway fund shall be pledged to their payment, but if the
sinking fund shall not be adequate to meet the payment of the prin-
cipal thereon, a tax shall be levied upon all taxable property
within the State in an amount sufficient to meet such deficiency
unless the legislature shall, in its discretion, appropriate a
sufficient amount to the sinking fund out of moneys in the State
Treasury not otherwise appropriated. The bonds shall be issued
and sold to the municipality making such advance by a board con-
sisting of the State Auditor, State Treasurer and Commissioner
of Highways, under such rules and in such form and denomination
as the board shall determine, shall be signed by the State
Treasurer and attested by the Secretary of State, and shall be
sold to such municipality for not less than par without interest.
Sec. 8. With the consent of the Commissioner of Highways,
municipalities of 5,000 or more in population now receiving an
allotment of highway users funds pursuant to Minnesota Constitution
Article XVI, Section 8, for the use of the municipal state aid
street system may use moneys so allotted to the.normal maintenance
account of such city out of the municipal state aid street fund
for the payment of interest on the bonds issued by such munici-
pality under the authority of Sections 1 through 8.
Sec. 9. The term, municipality, when used in Sections 1
to 8, is defined as any city, village or borough in the State of
Minnesota.
Sec. 10. Sections 1 to 10 shall be liberally construed to
effectuate their purposes, and in the event any section or clause
thereof shall be held invalid, the remaining sections or parts
thereof shall continue in effect.
-5-
W."W90
FOR AN ACT AUTHORIZING ADVANCES OF CASH
OR ENGINEERING SERVICES, OR BOTH, BY
MUNICIPALITIES TO THE COMMISSIONER OF
HIGHWAYS, TO EXPEDITE TRUNK HIGHWAY CON-
STRUCTION AND IMPROVEMENT WITHIN MUNICI-
PALITIES; AUTHORIZING !,MUNICIPALITIES TO
ISSUE BONDS FOR SUCH PURPOSE; PROVfDING
AUTHORITY TO THE COMMISSIONER OF HIGHWAYS
TO ENTER INTO AGREEMENTS WITH MUNICIPALITIES
TO ACCEPT SUCH ADVANCE AND TO REPAY SUCH
ADVANCE OUT OF TRUNK HIGHWAY FUNDS; AUTHOR-
IZING ISSUANCE AND SALE OF TRUNK HIGHWAY
BONDS BY THE STATE TO SUCH MUNICIPALITY
FOR THE REPAYMENT OF SUCH CASH OR ENGINEER-
ING SERVICES, OR BOTH, WITHOUT INTEREST THEREON.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. It is hereby declared that the early improve-
meet of the Minnesota trunk highway system within the municipali-
ties of the State to facilitate safe and efficient traffic move-
ment, to cope with the rapidly increasing vehicular traffic
congestion, to solve the problem of the needed public safety in
relation to vehicular flow is imperative and immediately needed;
that the cost of many such necessary projects would necessarily
require a delay in their programming, planning, engineering work
and execution if reliance must solely be limited to existing methods
now legally available to the State and its municipalities; that the
municipalities have an important interest in such trunk highway
projects because of the salutary effects which projects, when exe-
cuted, will have on the economic growth, traffic mobility, proper
utilization of local street systems and the inter - relationship of
these with the State trunk highway system, and the public safety of
the pedestrian and motor vehicle operator on the highways, and for
many other reasons; that the State has an important and immediate
interest in the early execution of State trunk highway system im-
provement in the municipalities of this State; that such municipal
interest in and need for such trunk highway projects in the
-1-
municipalities warrants the voluntary participation bpi the munici-
palities, as authorized by Minnesota Constitution, Artible XVI,
Section 11, in aiding in the preliminary financing of such through
the advance of cash and engineering services, or both, to the Com-
missioner of Highways which would otherwise be deferred for lack
of current available funds; that it is in the public interest of
both the State and its municipalities that the powers granted by
the provisions of this Act be put into effect, made available and
be put to use at the earliest opportunity.
Sec. 2. In order to expedite and facilitate early action
on any state trunk highway project by the Commissioner of Highways
for the location, construction, reconstruction, improvement or any
combination thereof, including the planning, programming, and en-
gineering work in connection therewith, of a trunk highway within
its limits, any municipality is hereby authorized to execute an
agreement with the Commissioner of Highways under which it may
agree to advance cash or engineering services, or both, to the
Commissioner of Highways in consideration of the undertaking of
the project by the State at a time specified in the agreement,
such advance not to exceed that part of the estimated cost of the
project which is to be borne by the State. The amount agreed to
be advanced shall be exclusive of and in addition to any amount
agreed to be paid by the municipality as its share of the cost of
the project under cooperative agreements as provided by law.
Sec. 3. Any such agreement may provide for repayment by
the Commissioner of Highways to such municipality of the principal
amount of such advance extended to the Commissioner by any such
municipality, without interest, in not over 30 annual installments.
The Commissioner of Highways is hereby authorized on behalf of the
State of Minnesota to execute such agreement for repayment of the
-2-
principal amount of such advance, without interest, to any such
municipality out of the trunk highway fund. Such agreement may
include all other terms and conditions which the parties may deem
necessary to comply with all other provisions of law relating to
cooperative agreements between the Commissioner of Highways and
the municipalities.
Sec. 4. Such agreement between the Commissioner of High-
ways and any municipality may provide, as an alternative method
to that authorized in Section 3, for repayment by the-Commissioner
of such advances, without interest, through the issuance and sale
of bonds by the State of Minnesota, in the Amount of such advance,
to the municipality advancing such cash or engineering services,
or both, in consideration therefor and pursiant to the procedure
for such issuance and sale as provided in Sections 1 to 10.
Sec. 5. At any time after an agreement shall have been
executed by the Commissioner and a municipality whereby the munici-
pality shall agree to advance to the Commissioner cash or engineer-
ing services, or both, to carry out the purposes of Sections 1 to
10, the municipality, through its governing body, shall have the
authority to issue and sell the general obligation bonds of the
municipality to provide for the advance of such cash or engineer-
ing services, or both, to the Commissioner, said bonds to be secured
by the full faith and credit of the municipality and be issued and
sold in a principal amount not exceeding the amount of the advance.
Such bonds shall be issued and sold in accordance with Minnesota
Statutes, Chapter 475, except that an electio In by the voters of
such municipality shall not be required to authorize issuance of
such bonds, and the bonds shall not be included in net debt for
the purposes of applying any statutory or charter limit on indebted-
ness. Money repaid to the municipality by the Commissioner under
the agreement, authorized in Section 3, or moneys received by the
-3-
municipality through redemption of bonds issued by the State under
authority granted in Section 4, shall be placed by the municipality
in a separate sinking fund and shall be used by it solely to re-
duce, by an equivalent amount, the tax levy for the payment of
the principal and interest on such bonds, made pursuant to
Minnesota Statutes, Section 475.61 or 475.64.
Sec. 6. If any municipality, exercising the authority
granted it by Sections 1 to 10, shall advance cash or engineering
services, or both, to the Commissioner of Highways to accomplish
the purposes of this Act, the bonds of the State of Minnesota,
authorized to be issued and sold by the State of Minnesota under
Section 4 and Section 7, may be issued and sold to such municipality
in the amount of the cash or engineering services, or both, and in
donsideration therefor, said amount to be determined by the Com-
missioner. The municipality is hereby authorized to receive and
accept such bonds in consideration for the advance made by it of
such cash or engineering services or both.
Sec. 7. If the Commissioner of Highways, in the exercise
of his judgment, deems that it is in the best interest of the State
of Minnesota to provide for repayment under the method authorized
in Section 4, authority is hereby granted for the issuance and
sale of bonds by the State of Minnesota under the provisions of
Minnesota Constitution, Article XVI, Section 12 in amounts limited
in each instance to the amount of the advance by any such munici-
pality to the Commissioner of Highways under the agreement between
these parties authorized under Sections 1 to 10, and the moneys in
the trunk highway fund shall be pledged to their payment, but if the
sinking fund shall not be adequate to meet the payment of the prin-
cipal thereon, a tax shall be levied upon all taxable property
within the State in an amount sufficient to meet such deficiency
MC
unless the legislature shall, in its discretion, appropriate a
sufficient amount to the sinking fund out of moneys in the State
Treasury not otherwise appropriated. The bonds shall be issued
and sold to the municipality making such advance by a board con-
sisting of the State Auditor, State Treasurer and Commissionek
of Highways, under such rules and in such form and denomination
as the board shall determine, shall be signed by the State
Treasurer and attested by the Secretary of State, and shall be
sold to such municipality for not less than par without interest.
Sec. 8. With the consent of the Commissioner of Highways,
municipalities of 5,000 or more in population now receiving an
allotment of highway users funds pursuant to Minnesota Constitution
Article XVI, Section 8, for the use of the municipal state aid
street system may use moneys so allotted to the normal maintenance
account of such city out of the municipal state aid street fund
for the payment of interest on the bonds issued by such munici-
pality under the authority of Sections 1 through 8.
Sec. 9. The term, municipality, when used in Sections 1
to 8, is defined as any city, village or borough in the State of
Minnesota.
Sec. 10. Sections 1 to 10 shall be liberally construed to
effectuate their purposes, and in the event any section or clause
thereof shall be held invalid, the remaining sections or parts
thereof shall continue in effect.
-5-
A BILL
FOR AN ACT AUTHORIZING ADVANCES OF CASH
OR ENGINEERING SERVICES, OR BOTH, BY
MUNICIPALITIES TO THE COMMISSIONER OF
HIGHWAYS, TO EXPEDITE TRUNK HIGHWAY CON-
STRUCTION AND IMPROVEMENT WITHIN MUNICI-
PALITIES; AUTHORIZING 1..4UNICIPALITIES TO
ISSUE BONDS FOR SUCH PURPOSE; PROVIDING
AUTHORITY TO THE COMMISSIONER OF HIGHWAYS
TO ENTER INTO AGREEMENTS WITH MUNICIPALITIES
TO ACCEPT SUCH ADVANCE AND TO REPAY SUCH
ADVANCE OUT OF TRUNK HIGHWAY FUNDS; AUTHOR-
IZING ISSUANCE AND SALE OF TRUNK HIGHWAY
BONDS BY THE STATE TO SUCH MUNICIPALITY
FOR THE REPAYMENT OF SUCH CASH OR ENGINEER-
ING SERVICES, OR BOTH, WITHOUT INTEREST THEREON,
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. It is hereby declared that the early improve-
ment of the Minnesota trunk highway system within the municipali-
ties of the State to facilitate safe and efficient traffic move-
ment, to cope with the rapidly increasing vehicular traffic
congestion, to solve the problem of the needed public safety in
relation to vehicular flow is imperative and immediately needed;
that the cost of many such necessary projects.would necessarily
require a delay in their programming, planning, engineering work
and execution if reliance must solely be limited to existing methods
now legally available to the State and its municipalities; that the
municipalities have an important interest in such trunk highway
projects because of the salutary effects which projects, when exe-
cuted, will have on the economic growth, traffic mobility, proper
utilization of local street systems and the inter - relationship of
these with the State trunk highway system, and the public safety of
the pedestrian and motor vehicle operator on the'highways, and for
many other reasons; that the State has an important and immediate
interest in the early execution of State trunk highway system im-
provement in the municipalities of this State; that such municipal
interest in and need for such trunk highway projects in the
Eke
municipalities warrants the voluntary participation by the munici-
palities, as authorized by Minnesota Constitution, Article XVI,
Section 11, in aiding in the preliminary financing of such through
the advance of cash and engineering services, or both, to the Com-
missioner of Highways which would otherwise.bo deferred for lack
of current available funds; that it is in the public interest of
both the State and its municipalities that the powers granted by
the provisions of this Act be put into effect, made available and
be put to use at the earliest opportunity.
Sec. 2. In order to expedite and facilitate early action
on any state trunk highway project by the Commissioner of Highways
for the location, construction, reconstruction, improvement or any
combination thereof, including the planning, programming, and en-
gineering work in connection therewith, of a trunk highway within
its limits, any municipality is hereby authorized to execute an
agreement with the Commissioner of Highways under which it may
agree to advance cash or engineering services, or both, to the
Commissioner of Highways in consideration of the undertaking of
the project by the State at a time specified in the agreement,
such advance not to exceed that part of the estimated cost of the
project which is to be borne by the State. The amount agreed to
be advanced shall be exclusive of and in addition to any amount
agreed to be paid by the municipality as its share of the cost of
the project under cooperative agreements as provided by law.
Sec. 3. Any such agreement may provide for repayment by
the Commissioner of Highways to such municipality of the principal
amount of such advance extended to the Commissioner by any such
municipality, without interest, in not over 30 annual installments.
The Commissioner of Highways is hereby authorized on behalf of the
State of Minnesota to execute such agreement for repayment of the
-2-
principal amount of such advance, without interest, to any such
municipality out of the trunk highway fund. Such agreement may
include al-1 other terms and conditions which the parties may deem
necessary to comply with all other provisions of law relating to
cooperative agreements between the Commissioner of Highways and
the municipalities.
Sec. 4. Such agreement between the Commissioner of High-
ways and any municipality may provide, as an alternative method
to that authorized in Section 3, for repayment by the Commissioner
of such advances, without interest, through the issuance and sale
of bonds by the State of Minnesota, in the amount of such advance,
to the municipality advancing such cash or engineering services,
or both, in consideration therefor and pursuant to the procedure
for such issuance and sale as provided in Sections 1 to 10.
Sec. 5. At any time after an agreement shall have been
executed by the Commissioner and a municipality whereby the munici-
pality shall agree to advance to the Commissioner cash or engineer-
ing services, or boths to carry out the purposes of Sections 1 to
10, the municipality, through its governing body, shall have the
authority to issue and sell the general obligation bonds of the
municipality to provide for the advance of such cash or engineer-
ing services, or both, to the Commissioner, said bonds to be secured
by the full faith and credit of the municipality and be issued and
sold in a principal amount not exceeding the amount of the advance.
Such bonds shall be issued and sold in accordance with Minnesota
Statutes, Chapter 475, except that an electioInby the voters of
such municipality shall not be required to authorize issuance of
such bonds, and the bonds shall not be included,in net debt for
the purposes of applying any statutory or charter limit on indebted-
ness. Money repaid to the municipality by the Commissioner under
the agreement, authorized in Section 3, or moneys received by the
-3-
municipality through redemption of bonds issued by the State under
authority granted in Section 4, shall be placed by the municipality
in a separate sinking fund and shall be used by it solely to re-
duce, by an equivalent amount, the tax levy for the payment of
the principal and interest on such bonds, made pursuant to
Minnesota Statutes, Section 475.61 or 475.64.
Sec. 6. If any municipality, exercising the authority
granted it by Sections 1 to 10, shall advance cash or engineering
services, or both, to the Commissioner of Highways to accomplish
the purposes of this Act, the bonds of the State of Minnesota,
authorized to be issued and sold by the State of Minnesota under
Section 4 and Section 7, may be issued and sold to such municipality
in the amount of the cash or engineering services, or both, and in
consideration therefor, said amount to be determined by the Com-
missioner. The municipality is hereby authorized to receive and
accept such bonds in consideration for the advance made by it of
such cash or engineering services or both.
Sec. 7. If the Commissioner of Highways, in the exercise
of his judgment, deems that it is in the best interest of the State
of Minnesota to provide for repayment under the method authorized
in Section 4, authority is hereby granted for the issuance and
sale of bonds by the State of Minnesota under the provisions of
Minnesota Constitution, Article XVI, Section 12 in amounts limited
in each instance to the amount of the advance by any such munici-
pality to the Commissioner of Highways under the agreement between
these parties authorized under Sections 1 to 10, and the moneys in
the trunk highway fund shall be pledged to their payment, but if the
sinking fund shall not be adequate to meet the payment of the prin-
cipal thereon, a tax shall be levied upon all taxable property
within the State in an amount sufficient to meet such deficiency
me
unless the legislature shall, in its discretion, appropriate a
sufficient amount to the sinking fund out of moneys in the State
Treasury not otherwise appropriated. The bonds shall be issued
and sold to the municipality making such advance by a board con-
sisting of the State Auditor, State Treasurer and Commissioner
of Highways, under such rules and in such form and denomination
as the board shall determine, shall be signed by the State
Treasurer and attested by the Secretary of State, and shall be
sold to such municipality for not less than par without interest.
Sec. 8. With the consent of the Commissioner of Highways,,
municipalities of 5,000 or more in population now receiving an
allotment of highway users funds pursuant to Minnesota Constitution
Article XVI, Section 8, for the use of the municipal state aid
street system may use moneys so allotted to the normal maintenance
account of such city out of the municipal state aid street fund
for the payment of interest on the bonds issued by such munici-
pality under the authority of Sections 1 through 8.
Sec. 9. The term, municipality, when used in Sections 1
to 8, is defined as any city, village or borough in the State of
Minnesota.
Sec. 10. Sections 1 to 10 shall be liberally construed to
effectuate their purposes, and in the event any section or clause
thereof shall be held invalid, the remaining sections or parts
thereof shall continue in effect.
-5-
A BILL
FOR AN ACT AUTHORIZING ADVANCES OF CASH
OR ENGINEERING SERVICES, OR BOTH, BY
MUNICIPALITIES TO THE COMMISSIONER OF
HIGHWAYS, TO EXPEDITE TRUNK HIGHWAY CON-
STRUCTION AND IMPROVEMENT WITHIN MUNICI-
PALITIES; AUTHORIZING 1UNICIPALITIES TO
ISSUE BONDS FOR SUCH PURPOSE; PROVIDING
AUTHORITY TO THE COMMISSIONER OF HIGHWAYS
TO ENTER INTO AGREEMENTS WITH MUNICIPALITIES
TO ACCEPT SUCH ADVANCE AND TO REPAY SUCH
ADVANCE OUT OF TRUNK HIGHWAY FUNDS; AUTHOR-
IZING ISSUANCE AND SALE OF TRUNK HIGHWAY
BONDS BY THE STATE TO SUCH MUNICIPALITY
FOR THE REPAYMENT OF SUCH CASH OR ENGINEER-
ING SERVICES, OR BOTH, WITHOUT INTEREST THEREON.
BE IT ENACTED BY tHE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. It is hereby declared that the early improve-
ment of the Minnesota trunk highway system within the knunicipali-
ties' of the State to facilitate safe and efficient traffic move-
ment, to cope with the rapidly increasing vehicular tiaffic
congestion, to solve the problem of the needed public safety in
relation to vehicular flow is imperative and immediately needed;
that the cost of many such necessary projects would necessarily
require a delay in their programming, planning, engineering work
and execution if reliance must solely be limited to existing methods
now legally available to the State and its municipalities; that the
municipalities have an important interest in such trunk highway
projects because of the salutary effects which projects, when exe-
cuted, will have on the economic growth, traffic mobility, proper
utilization of local street systems and the inter - relationship of
these with the State trunk highway system, and the public safety of
the pedestrian and motor vehicle operator on the highways, and for
many other reasons; that the State has an important and immediate
interest in the early execution of State trunk highway system im-
provement in the municipalities of this State; that such municipal
interest in and need for such trunk highway projects in the
IWC
municipalities warrants the voluntary participation by the munici-
palities, as authorized by Minnesota Constitution, Article XVI,
Section 11, in aiding in the preliminary financing of such through
the advance of cash and engineering services, or both, to the Com-
missioner of Highways which would otherwise be deferred for lack
of current available funds; that it is in the public interest of
both the State and its municipalities that the powers granted by
the provisions of this Act be put into effect, made available and
be put to use at the earliest opportunityk
Sec. 2. In order to expedite and facilitate early action
on any state trunk highway project by the Commissioner of Highways
for the location, construction, reconstruction, improvement or any
combination thereof, including the planning, programming, and en-
gineering work in connection therewith, of a trunk highway within
its limits, any munidipality is hereby authorized to execute an
agreement with the Commissioner of Highways under which it may
agree to advance cash or engineering services, or both, to the
Commissioner of Highways in consideration of the undertaking of
the project by the State at a time specified in the agreement,
such advance not to exceed that part of the estimated cost of the
project which is to be borne by the State. The amount agreed to
be advanced shall be exclusive of and in addition to any amount
agreed to be paid by the municipality as its share of the cost of
the project under cooperative agreements as provided by law.
Sec. 3. Any such agreement may provide for repayment by
the Commissioner of Highways to such municipality of the principal
amount of such advance extended to the Commissioner by any such
municipality, without interest, in not over 30 annual installments.
The Commissioner of Highways is hereby authorized on behalf of the
State of Minnesota to execute such agreement for repayment of the
-2-
principal amount of such advance, without interest, to any such
municipality out of the trunk highway fund. Such agreement may
include all other terms and conditions which the parties may deem
necessary to comply with all other provisions of law relating to
cooperative agreements between the Commissioner of Highways and
the municipalities,
Sec. 4. Such agreement between the Commissioner of High-
ways and any municipality may provide, at an alternative method
to that authorized in Section 3, for repayment by the Commissioner
of such advances, without interest, through the issuance and sale
of bonds by the State of Minnesota, in the amount of such advance,
to the municipality advancing such cash or engineering services,
or both, in consideration therefor and pursuant to the procedure
for such issuance and sale as provided in Sections i to 10.
Sec. 5. At any time after an agreement shall have been
executed by the Commissioner and a municipality whereby the munici-
pality shall agree to advance to the Commissioner cash or engineer-
ing services, or both, to carry out the purposes of Sections 1 to
10, the municipality, through its governing body, shall have the
authority to issue and sell the general obligation bonds of the
municipality to.provide for the advance of such cash or engineer-
ing services, or both, to the Commissioner, said bonds to be secured
by the full faith and credit of the municipality and be issued and
sold in a principal amount not exceeding the amount of the advance.
Such bonds shall be issued and sold in accordance with Minnesota
Statutes, Chapter 475, except that an electio h by the voters of
such municipality shall not be required to authorize issuance of
such bonds, and the bonds shall not be included in net debt for
the purposes of applying any statutory or charter limit on indebted-
ness. Money repaid to the municipality by the Commissioner under
the agreement, authorized in Section 3, or moneys received by the
-3-
municipality through redemption of bonds issued by the State under
authority granted in Section 4, shall be placed by the municipality
in a separate sinking fund and shall be used by it solely to re-
duce, by an equivalent amount, the tax levy for the payment of
the principal and interest on such bonds, made pursuant to
Minnesota Statutes, Section 475.61 or 475.64.
Sec. 6. If any municipality, exercising the authority
granted it by Sections 1 to 10, shall advance cash or engineering
services, or both, to the Commissioner of Highways to accomplish
the purposes of this Act, the bonds of the State of Minnesota,
authorized to be issued and sold by the State of Minnesota under
Section 4 and Section 7, may be issued and sold to such municipality
in the amount of the cash or engineering services, or both, and in
consideration therefor, said amount to be determined by the Com-
missioner. The municipality is hereby authorized to receive and
accept such bonds in consideration for the advance made by it of
such cash or engineering services or both.
Sec. 7. If the Commissioner of Highways, in the exercise
of his judgment, deems that it is in the best interest of the State
of Minnesota to provide for repayment under the method authorized
in Section 4, authority is hereby granted for the issuance and
sale of bonds by the State of Minnesota under the provisions of
Minnesota Constitution, Article XVI, Section 12 in amounts limited
in each instance to the amount of the advance by any such munici-
pality to the Commissioner of Highways under the agreement between
these parties authorized under Sections 1 to 10, and the moneys in
the trunk highway fund shall be pledged to their payment, but if the
sinking fund shall not be adequate to meet the payment of the prin-
cipal thereon, a tax shall be levied upon all taxable property
within the State in an amount sufficient to meet such deficiency
MC
unless the legislature shall, in its discretion, appropriate a
sufficient amount to the sinking fund out of moneys in the State
Treasury not otherwise appropriated. The bonds shall be issued
and sold to the municipality making such advance by a board con-
sisting of the State Auditor, State Treasurer and Commissioner
of Highways, under such rules and in such form and denomination
as the board shall determine, shall be signed by the State
Treasurer and attested by the Secretary of State, and shall be
sold to such municipality for not less than par without interest.
Sec. 8. With the consent of the Commissioner of Highways,
municipalities of 5,000 or more in population now receiving an
allotment of highway users funds pursuant to Minnesota Constitution
Article XVI, Section 8, for the use of the municipal state aid
street system may use moneys so allotted to the normal maintenance
account of such city out of the municipal state aid street fund
for the payment of interest on the bonds issued by such munici-
pality under the authority of Sections 1 through 8.
Sec. 9. The term, municipality, when used in Sections 1
to 8, is defined as any city, village or borough in the State of
Minnesota.
Sec. 10. Sections 1 to 10 shall be liberally construed to
effectuate their purposes, and in the event any section or clause
thereof shall be held invalid, the remaining sections or parts
thereof shall continue in effect.
-5-
of -- -
A BILL
FOR AN ACT AUTHORIZING ADVANCES OF CASH
OR ENGINEERING SERVICES, OR BOTH, BY
MUNICIPALITIES TO THE COMMISSIONER OF
HIGHWAYS, TO EXPEDITE TRUNK HIGHWAY CON-
STRUCTION AND IMPROVEMENT WITHIN MUNICI-
PALITIES; AUTHORIZING 1- .4UNICIPALITIES TO
ISSUE BONDS FOR SUCH PURPOSE; PROVIDING
AUTHORITY TO THE COMMISSIONER OF HIGHWAYS
TO ENTER INTO AGREEMENTS WITH MUNICIPALITIES
TO ACCEPT SUCH ADVANCE AND TO REPAY SUCH
ADVANCE OUT OF TRUNK HIGHWAY FUNDS; AUTHOR-
IZING ISSUANCE AND SALE OF TRUNK HIGHWAY
BONDS BY THE STATE TO SUCH MUNICIPALITY
FOR THE REPAYMENT OF SUCH CASH OR ENGINEER-
ING SERVICES, OR BOTH, WITHOUT INTEREST THEREON.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. It is hereby declared that the early improve-
ment of the Minnesota trunk highway system within the municipali-
ties of the State to facilitate safe and efficient traffic move-
ment, to cope with the rapidly increading vehicular traffic
congestion, to solve the problem of the needed public safety in
relation to vehicular flow is imperative and immediately needed;
that the cost of many such necessary projects would necessarily
require a delay in their programming, planning, engineering work
and execution if reliance must solely be limited to existing methods
now legally available to the State and its municipalities; that the
municipalities have an important interest in such trunk highway
projects because of the salutary effects which projects, when exe-
cuted, will have on the economic growth, traffic mobility, proper
utilization of local street systems and the inter - relationship of
these with the State trunk highway system, and the public safety of
the pedestrian and motor vehicle operator on the highways, and for
many other reasons; that the State has an important and immediate
interest in the early execution of State trunk highway system im-
provement in the municipalities of this State; that such municipal
interest in and need for such trunk highway projects in the
-1-
municipalities warrants the voluntary participation by the munici-
palities, as authorized by Minnesota Constitution, Article XVI,
Section 11, in aiding in the preliminary financing of such through
the advance of cash and engineering services, or both, to the Com-
missioner of Highways which would otherwise be deferred for lack
of current available funds; that it is in the public interest of
both-the State and its municipalities that the powers granted by
the provisions of this Act be put into effect, matte available and
be put to use at the earliest opportunity.
Sec. 2. In order to expedite and facilitate early action
on any state trunk highway project by the Commissioner of Highways
for the location, construction, reconstruction, improvement or any
combination thereof, including the planning, programming, and en-
gineering work in connection therewith, of a trunk highway within
its limits, any municipality is hereby authorized to execute an
agreement with the Commissioner of Highways under which it may
agree to advance cash or engineering services, or both, to the
Commissioner of Highways in consideration of the undertaking of
the project by the State at a time specified in the agreement,
such advance not to exceed that part of the estimated cost of the
project which is to be borne by the State. The amount agreed to
be advanced shall be exclusive of and in addition to any amount
agreed to be paid by the municipality as its share of the cost of
the project under cooperative agreements as provided by law.
Sec. 3. Any such agreement may provide for repayment by
the Commissioner of Highways to such municipality of the principal
amount of such advance extended to the Commissioner by any such
municipality, without interest, in not over 30 annual installments.
The Commissioner of Highways is hereby authorized on behalf of the
State of Minnesota to execute such agreement for repayment of the
-2-
principal amount of such advance, without interest, to any such
municipality out of the trunk highway fund. Such agreement may
include all other terms and conditions which the parties may deem
necessary to comply with all other provisions of law relating to
cooperative agreements between the Commissioner of Highwa�s and
the municipalities.
Sec. 4. Such agreement between the Commissioner of High-
ways and any municipality may provide, as an alternative method
to that authorized in Section 3, for repayment by the Commissioner
of such advances, without interest, through the issuance and sale
of bonds by the State of Minnesota, in the amount of such advance,
to the municipality advancing such cash or engineering services,
or both, in consideration therefor and pursuant to the procedure
for such issuance and sale as provided in Sections 1 to 10.
Sec. 5. At any time after an agreement shall have been
executed by the Commissioner and a municipality whereby the munici-
pality shall agree to advance to the Commissioner cash or engineer-
ing services, or both, to carry out the purposes of Sections 1 to
10, the municipality, through its governing body, shall have the
authority to issue and sell the general obligation bonds of the
municipality to provide for the advance of such cash or engineer-
ing services, or both, to the Commissioner, said bonds to be secured
by the full faith and credit of the municipality and be issued and
sold in a principal amount not exceeding the amount of the advance.
Such bonds shall be issued and sold in accordance with Minnesota
Statutes, Chapter 475, except that an electio2►by the voters of
such municipality shall not be required to authorize issuance of
such bonds, and the bonds shall not be included in net debt for
the purposes of applying any statutory or charter limit on indebted-
ness. Money repaid to the municipality by the Commissioner under
the agreement, authorized in Section 3, or moneys received by the
-3-
municipality through redemption of bonds issued
authority granted in Section 4, shall be placed
in a separate sinking fund and shall be used by
duce, by an equivalent amount, the tax levy for
the principal and interest on such bonds, made
Minnesota Statutes, Section 475.61 or 475.64.
by the State under
by the municipality
it solely to re-
the payment of
)ursuant to
Sec. 6. If any municipality, exercising the authority
granted it by Sections 1 to 10, shall advance cash or engineering
services, or both, to the Commissioner of Highways to accomplish
the purposes of this Act, the bonds of the State of Minnesota,
authorized to be issued and sold by the State of Minnesota under
Section 4 and Section 7, may be issued and sold to such municipality
in the amount of the cash or engineering services, or both, and in
consideration therefor, said amount to be determined by the Com-
missioner. The municipality is hereby authorized to receive and
accept such bonds in consideration for the advance made by it of
such cash or engineering services or both.
Sec. 7. If the Commissioner of Highways, in the exercise
of his judgment, deems that it is in the best interest of the State
of Minnesota to provide for repayment,under the method authorized
in Section 4, authority is hereby granted for the issuance and
sale of bonds by the State of Minnesota under the provisions of
Minnesota Constitution, Article XVI, Section 12 in amounts limited
in each instance to the amount of the advance by any such munici-
pality to the Commissioner of Highways under the agreement between
these parties authorized under Sections 1 to 10, and the moneys in
the trunk highway fund shall be pledged to their payment, but if the
sinking fund shall not be adequate to meet the payment of the prin-
cipal thereon, a tax shall be levied upon all taxable property
within the State in an amount sufficient to meet such deficiency
MC
unless the legislature shall, in its discretion, appropriate a
sufficient amount to the sinking fund out of moneys in the State
Treasury not otherwise appropriated. The bonds shall be issued
and sold to the municipality making such advance by a board con-
sisting of the State Auditor, State Treasurer and Commissioner
of Highways, under such rules and in such form and denomination
as the board shall determine, shall be signed by the State
Treasurer and attested by the Secretary of State, and shall be
sold to such municipality for not less than par without interest.
Sec. 8. With the consent of the Commissioner of Highways,
municipalities of 5,000 or more in population now receiving an
allotment of highway users funds pursuant to Minnesota Constitution
Article XVI, Section 8, for the use of the municipal state aid
street system may use moneys so allotted to the normal maintenance
account of such city out of the municipal state aid street fund
for the payment of interest on the bonds issued by such munici-
pality under the authority of Sections 1 through 8.
Sec. 9. The term, municipality, when used in Sections 1
to 8, is defined as any city, village or borough in the State of
Minnesota.
Sec. 10. Sections 1 to 10 shall be liberally construed to
effectuate their purposes, and in the event any section or clause
thereof shall be held invalid, the remaining sections or parts
thereof shall continue in effect.
-5-