09-872councii File # � 9' �—
Green Sheet # 3073956
RESOLUTION a. �
41NT PAUL, MINNESOTA
Presented by
1 WHEREns, during the recently completed 2009 regular session of the Minnesota Legislature, the State of
2 Minnesota enacted 2009 Minn. Laws, Chapter 88, Art. 4, Sections 1�, 16 and 18 (the "Special Law"), a
3 copy which is attached hereto and marked as Attachment "A", which, among other things: (1) extends the
4 rime period from the year 2009 to 2014 for the City of Saint Paul to allow STAR sales tax in an amount not
5 to exceed $3,500,000.00 to be used to pay principal of bonds issued for capital projects; (2) requires
6 interest from loan repayments or returned funds to be made available only for the same type of project; and
�(3) requiring open, fair and competitive review of proposals by the citizen review panel prior to the
8 presentation to the city council; and
10 WHExEas, the Special Law requires the City of Saint Paul to timely comply with Minnesota Statutes,
11 section 645A21, subdivisions 2 and 3, which requires approval by resolution by a majority vote of all
12 members of the governing body of the local unit.
13
14 NOW, THEREFORE BE IT RESOLVED, by the Council of the City of Saint Paul, the Special Law
15 pursuant to the provisions contained therein, is in all things adopted herein by reference and approved;
16
17 AND BE IT FURTHER RESOLVED, that the City Clerk, as the chief clerical officer of the City of Saint
18 Paul, shall forthwith file with the Secretary of State, in a form prescribed by the Attorney General, a
19 certificate stating the essential facts necessary to the adoption and approval of said law in compliance with
2o Minn. Stat. §645.021, Subd. 3.
Bostrom
Carter
Harris
Helgen
Staxk
Thune
Adopted by Council: Date
Adoption Cer by Co '1 Secretary
BY� / f /l�/l //,�G �d//
Approved by Mayo Date �� (� q
BY g�,.CAi SJ/LP,l.�_h �p
Requested by Deparhnent oE �
� Green Sheet Green Sheet �reen Sheet Green Sheet Green Sheet Green Sheet �
n�-�C� a-. ,. -
DepartrnentlQfficelCou�ci4: Date Initiated:
- , ,. . „ w
FS —F�nancialServices 03AUG-09 Green Sheet 1V0: 3073956
Conqet Person 8 Pho�m: Deoarhrient � Setrt To Person InitiaUDate
Alexandra O'Learv � o inanciat Serviees
286-8832 , 1 mancialServices DepartmentD'uector
Assign 2 ' Attnme " �_
Must 8e on Council Agenda by (DaYe): Number 3 or's Office 111s or/Assispnt
17-AUG-09 For
Routin9 4 oupcii
Doc. Type: RESOLUTION Order 5 i Clerk C Clerk
E-0ocument Required: Y
DocumentContact: A�exandra0'Leary
C<snqM Phone: 266-6832
Total # of Signature Pages �(Clip All Locations for Signature)
Adion Requested;
To adopt a resoluuon that requires compliance with Minnesota statutes, section 645.021, subdivision 2 and 3.
Recommendatlons: Approve (A) or Reject (R): Personal Service Contracts Must Answer the Pollowing Questions:
Planning Commission 1. Has this personffirtn ever worked under a contract for this department?
GB Committee Yes No
Civil Service Commission 2. Has this personlfirm ever been a cfty employee?
Yes No
3. Dces this personffirtn possess a skill not nortnally possessed by any
current city employee?
Yes No
.� � Ezplain afl yes answers on separete sheet and attach to green sheet.
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
Minnesota Legislature (2009 Minnesota laws, Chapter 88, Art. 4, Secfions 15, 16 and 18) extended the time period up to 2014 to allow
finance debt service with STAR funds, requires interest from loan repayments to be available only for the same type of project and
requires open review by the Citizen Panel.
� AdvantageslfApproved:
The City will be able to use STAR funds to repay debt services and use the improved process to expend sales tax revenues.
Disadvantages if Approved:
Noneknown
Disadvarrtages if Not Approved:
STAR funds will not be available for debt service on capital projects.
Total Amount of Cost/Revenue Bud eted:
Transaction: 9
Funding Source: AMivity Number:
Financial Informafion:
(Explain)
Auaust 3, 2009 1034 AM . Pa� 1
Attachment A
6� •S� �
2009 Minnesota Laws, Chapter 88, Art. 4, Sections I5, 16 and 18
Sec. 15. Laws 1993, chapter 375, article 9, section 46, subdivision 2, as amended by
Laws 1997, chapter 231, article 7, secrion 40, and Laws 1998, chapter 389, article 8,
section 30, and Laws 2003, First Special Session chapter 21, article 8, section 13,
and
Laws 2005, First Special Session chapter 3, article 5, section 26, is amended to read:
Subd. 2. Use of revenues. Revenues received from the taY authorized by
subdivision 1 may only be used by the city to pay the cost of collecting the tax, and
to pay
for the following projects or to secure or pay any principal, premium, ar interest on
bonds
issued in accordance with subdivision 3 for the following projects.
(a) To pay all or a portion of the capital expenses of construction, equipment and
acquisition costs for the expansion and remodeling of the St. Paul Civic Center
complex,
including the demolition of the existing arena and the construction and equipping of
a
new arena.
(b) Except as provided in paragraphs (e) and (f�, the remainder of the funds must
be
spentfor:
(1) capital projects to further residential, cultural, commercial, and economic
development in both downtown St. Paul and St. Paul neighborhoods; and
(2) capital and operating expenses of cultural organizations in the city, provided
that the amount spent under this clause must equal ten percent of the total amount
spent
under this paragraph in any year.
(c) The amount apportioned under paragraph (b) shall be no less than 60 percent
of the revennes derived from the tax each year, except to the extent that a portion of
that
amount is required to pay debt service on (1) bonds issued for the purposes of
paragraph (a)
prior to March 1, 1998; or (2) bonds issued for the purposes of paragraph (a) after
March 1,
1998, but only if the city council determines that 40 percent of the revenues derived
from
the tax together with other revenues pledged to the payment of the bonds, including
the
proceeds of definitive bonds, is expected to exceed the annual debt service on the
bonds.
(d) If in any year more than 40 percent oF the revenue derived from the tax
authorized
by subdivision 1 is used to pay debt service on the bonds issued far the purposes of
paragraph (a) and to fund a reserve far the bonds, the amount of the debt service
payment
that exceeds 40 percent of the revenue must be deterniined for that year. In any year
when
pay
debt service on the bonds and to fund a reserve for the bonds under paragraph (a), the
amount of the excess must be made available for capital projects to further
residential, I a
cuiturai, commercial, and economic development in the neighborhoods and ��
downtown
until the cumulative amounts determined for a11 years under the preceding sentence
have
been made available under this sentence. The amount made available as
reimbursement in
the preceding sentence is not included in the 60 percent determined under paragraph
(c).
(e) In each of calendar years 2006 �nn� �nno ...,a -rnno to 2014, revenue not to
exceed $3,500,000 may be used to pay the principal of bonds issued for capital
projects of
the city. After December 31, �9912014, revenue from the tax imposed under
subdivision
1 may not be used for this purpose.
( fl By January 15 of each year, the mayor and the city council must report to the
legislature on the use of sales tax revenues during the preceding one-year period.
EFFECTIVE DATE.This section is effective the dav after the eoverninQ bodv of
the city of St. Paul and its chief clerical officer com�ly with Minnesota Statutes
section
645.021.subdivisions 2 and 3.
Sec. 16. Laws 1993, chapter 375, article 9, section 46, is amended by adding a
subdivision to read:
Subd. 2a. Unexpended funds and interest. Anv interest from loan repayments
or returned funds from revenues apportioned under subdivision 2, oara�raph (bl
clause
(11, must be made available only for projects qualif�ng under subdivision 2
para rg auh
(b), clause (1�
EFFECTIVE DATE.This section is effective the dav after the Qoverning bodv of
the citv of St. Paul and its chief clerical o£ficer comply with Minnesota Statutes
section
645.021, subdivisions 2 and 3.
Sec. 18. Laws 1998, chapter 389, arricle 8, section 37, subdivision 1, is amended
to
read:
Subdivision 1. Requirement. Expenditures of revenues from the sales tax
imposed
by the city of St. Paul that are dedicated to neighborhood investments may be made
only
after review of the proposals for expendiCures by the citizen review panel described
in this
section. The panel must ensure that the ap�lication process for all proposals is o�en
fai ,r
and competitive All proposals must be reviewed by the panel prior to nresentation of
the
report
to the city council that makes recommendations regarding the proposed expenditures
in rank order. ����� �-
EFFECTIVE DATE.This section is effective the dav after the governin� bodv of
Yhe citv of St. Pau1 and its chief clerical officex comply with MinnesQta Statutes
section
645.021 subdivisions 2 and 3.