1.1 	A bill for an act
1.2 	relating to the city of Hermantown; modifying the use of its local sales tax 
1.3 	revenues;amending Laws 1996, chapter 471, article 2, section 29, subdivisions 
1.4 	1, 4.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Laws 1996, chapter 471, article 2, section 29, subdivision 1, is amended to 
1.7 	read:
1.8 	
1.9 	Subdivision 1.  Sales tax authorized. Notwithstanding  Minnesota Statutes, section 
1.10 	477A.016, or any other contrary  provision of law, ordinance, or city charter, the city of  
1.11 	Hermantown may, by ordinance, impose an additional sales tax of  up to one percent 
1.12 	on sales transactions taxable pursuant to  Minnesota Statutes, chapter 297A, that occur 
1.13 	within the city.  The proceeds of the tax imposed under this section must be used  to 
1.14 	meet the costs of:  
1.15 	
1.16 	(1) extending a sewer interceptor line;  
1.17 	
1.18 	(2) construction of a booster pump station, reservoirs, and  related improvements 
1.19 	to the water system; and  
1.20 	
1.21 	(3) construction of a building containing a police and fire station and an 
1.22 	administrative services facility.  
1.23 	

2.1 	EFFECTIVE DATE. This section is effective the day following final enactment, 
2.2 	upon compliance with Minnesota Statutes, section 645.021, subdivision 3, by the city of 
2.3 	Hermantown.

2.4 	Sec. 2. Laws 1996, chapter 471, article 2, section 29, subdivision 4, is amended to read:
2.5 	
2.6 	Subd. 4.  Termination. The tax authorized under this  section terminates at the later 
2.7 	of (1) ten years after the date  of initial imposition of the tax, or (2) on the first day of the 
2.8 	second month next succeeding a determination by the city council  that sufficient funds 
2.9 	have been received from the tax to finance  the improvements described in subdivision 1, 
2.10 	clauses (1) to (3),  and to prepay or retire at maturity the principal, interest, and  premium 
2.11 	due on any bonds issued for the improvements on March 31, 2026.  Any funds  remaining 
2.12 	after completion of the improvements and retirement or  redemption of the bonds may 
2.13 	be placed in the general fund of the  city.  

2.14 	EFFECTIVE DATE. This section is effective the day following final enactment, 
2.15 	upon compliance with Minnesota Statutes, section 645.021, subdivision 3, by the city of 
2.16 	Hermantown.