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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 *A JUM, ' P011 AN, . Aft f AWMAM00 AP's 0A_ OR "OINK 131 MO1AU I� AUNT @p��g' {��y►7�yi.,g��p I f ' UPS a ymyy�pyr�{�cy.� "VAR0( 1 aloe' # ' "an - - .may��!!�T[y��y�R yy��'M+k�J. ,ypm; Mp� s �y�5 "mi;)�y }TJg1� 1��.�ygy�� �yp�� m 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-