SF5229

Purpose

• This bill changes how the City of St. Paul may use revenues from its local sales tax. It focuses on funding transportation improvements (streets and bridges) and capital improvements for parks and recreation facilities, and it sets rules for how the funds must be approved and managed.

Main provisions

• Use of revenues
  • Revenues derived from the local sales tax (the tax authorized under subdivision 1a) can be used by the city to pay:
  • the costs of collecting and administering the tax, and
  • to finance all or part of specific projects in St. Paul, including securing and paying debt service on bonds issued under subdivision 3a.
  • The bill overrides certain limits in state law (notwithstanding Minnesota Statutes sections cited) to allow these uses.
• Project funding amounts
  • Up to 738,000,000 dollars (plus bonding costs) may be used for improvements to streets and bridges.
  • Up to 246,000,000 dollars (plus bonding costs) may be used for capital improvements to St. Paul parks and recreation facilities.
• Amended resolution and voter approval
  • The city must adopt an amended resolution that authorizes the use of the tax revenues for the purposes listed (streets/bridges and parks/recreation facilities).
  • The city must submit this amended resolution to the state auditor by a specified deadline (no later than August 31 in the year the city presents the tax for voter approval).
  • The ballot question meant to approve the tax must indicate the purposes for which the revenues will be used, as described in the amended resolution.
• If the amended resolution is not adopted and submitted
  • The ballot question may not include the described uses, and revenues may not be used for those purposes.

Significant changes to existing law

• The bill explicitly allows the local sales tax revenues to pay for certain large-scale infrastructure and park-related projects that were not necessarily authorized under prior language.
• It strengthens the requirement to adopt and submit an amended resolution to formalize these uses and to inform voters, tying debt financing (bonds) and project funding to a clear, voter-facing plan.
• It references and overrides specific provisions in state statute (Minnesota Statutes section 297A.99) to permit these uses, and it adds a formal process for updating the plan (amended resolution, state auditor review, and ballot language).

Practical implications

• The City of St. Paul would have a clearly slotted framework to issue bonds and fund significant street, bridge, and park/recreation improvements using local sales tax revenue.
• There is a defined governance process (amended resolution, auditor review, and voter-approved ballot language) to ensure transparency and public input.
• If the amended plan is not adopted, the proposed funding uses could not be included on the ballot, limiting the tax’s funding scope.

Relevant terms - local sales tax - revenues - revenues derived from the tax - use of revenues - pay the costs of collecting and administering the tax - finance all or part of the following projects - debt service - bonds issued under subdivision 3a - improvements to streets - improvements to bridges - capital improvements - St. Paul parks and recreation facilities - bonding costs - amended resolution - state auditor - voter approval - Minnesota Statutes section 297A.99 - subdivision 1a - subdivision 3a - question presented to voters - clause item ii - August 31 deadline