HF4094

1. Purpose
2. Authorizes the city of Crosby to adopt a local sales and use tax of up to 0.5% if approved by voters.

3. The tax is intended to raise revenue to fund specific capital projects in Crosby and cover related costs.

4. Main Provisions

5.1 Tax authorization - If voters approve, Crosby may impose a local sales and use tax of up to one-half of one percent. - The tax is in addition to any other local sales or use taxes and will be administered and enforced under existing state law (Minnesota Statutes cited in the bill).

5.2 Use of revenues - Revenues from the tax must be used to pay for: - Rehabilitation and improvements to Crosby Memorial Park ($1,200,000), - Rehabilitation and renovation of Hallet Community Center ($1,200,000), - Rehabilitation and renovation of Jessie F. Hallet Memorial Library ($200,000), - Renovations to Crosby City Hall ($400,000), - The costs of collecting and administering the tax, and debt service on bonds issued to finance these projects.

5.3 Bonding authority - Crosby may issue bonds under Minnesota Statutes chapter 475 to finance all or part of the project costs, up to $3,000,000 plus costs of issuing the bonds. - Bond proceeds and revenues (including tax receipts) may be used to pay bond principal and interest. - Bond issuance is not subject to certain state debt statutes (specifically sections 275.60 and 275.61) and is not counted toward city debt limits. - Levy of taxes to pay bond debt is not subject to levy limits. - A separate election to approve bonds is not required.

5.4 Termination and sunset - The tax deadline is the earlier of 20 years after the tax is first imposed or when the city determines that enough revenue has been collected to pay the authorized project costs and bond costs (including interest). - Any remaining money after these payments, due to timing of termination, must be placed in Crosby’s general fund. - The tax may end earlier if the city adopts an ordinance to terminate it.

1. Significant Changes to Existing Law
2. Introduces a new local option sales tax for Crosby, subject to voter approval, with a defined cap (0.5%).
3. Creates a dedicated funding stream for specified park, community center, library, and city hall projects, plus administration and debt service.
4. Allows the city to issue up to $3,000,000 in bonds for these projects with streamlined approval (no separate bond election required) and with certain exemptions from standard debt and levy limits.
5. Establishes a sunset framework tying tax termination to project funding milestones, with any excess revenue redirected to the general fund if still available.

Relevant Terms - local sales and use tax - Crosby - voter approval - up to 0.5% tax - rehabilitation and improvements - Crosby Memorial Park - Hallet Community Center - Jessie F. Hallet Memorial Library - Crosby City Hall - debt service - bonds - Minnesota Statutes chapter 475 - general fund - 20-year sunset - issuance costs - levy limits - 297A.99 - 475.58 - 475.61 - 275.60 - 275.61