MN HF4034

City of Two Harbors may impose a 0.5% sales and use tax upon voter approval for sanitary sewer separation, wastewater treatment, water system improvements, and harbor refuge development projects.

City may impose an additional 0.5% sales and use tax upon voter approval for water and sewer infrastructure projects including gravity-fed sewer mains, water mains, drain tile, service lines, and street patching, with a bonding cap of $30,000,000.

City may issue bonds under the first tax without a separate bond election, up to $20,000,000 aggregate principal plus issuance costs, to finance capital expenditures for authorized projects.

City may issue bonds under the second tax without a separate bond election, up to $30,000,000 aggregate principal, to pay capital and administrative expenses for water and sewer infrastructure projects.

The first tax expires when project costs are paid; the second tax expires at the earlier of 25 years or when revenues reach $30,000,000 plus bond issuance costs, or upon city ordinance determination of earlier termination.