Purpose

Clarify and update how Rochester will use revenues from the local sales tax extension. The bill sets specific project categories and funding priorities, and it imposes a deadline on funding for one of the projects.

Main Provisions

• The revenues from the extension of the local sales tax must be used by the City of Rochester to:
  • pay the costs of collecting and administering the tax, and
  • pay for the following projects (including debt service on bonds issued to finance all or part of these projects and related bonding costs):
  • 50,000,000 for an economic vitality fund and eligible expenses
  • 50,000,000 for street reconstruction
  • 40,000,000 for flood control and water quality (excluding removal of the MN00515 dam)
  • 65,000,000 for a sports and recreation complex
• These uses are authorized notwithstanding other statutes and are tied to debt service and bonding costs associated with financing the projects.

Significant Changes to Existing Law

• The bill amends the approved uses of Rochester’s local sales tax revenues, limiting them to four specified categories and related debt service.
• It adds a deadline that, after June 30, 2026, the city may not collect funds for the sports and recreation complex (the project designated in paragraph a, clause 4).
• Funds generated by the tax through June 30, 2026, must be applied to the first three uses (economic vitality fund, street reconstruction, flood control and water quality). After that date, any remaining or future funds must be allocated only to those same three uses.

Timeline and Key Dates

• June 30, 2026: Deadline by which funds may no longer be collected for the sports and recreation complex project.
• Through June 30, 2026: Funds may be applied to uses 1–3 (economic vitality fund, street reconstruction, flood control and water quality).

Funding Details and Administration

• The extension of the tax must cover:
  • costs of collecting and administering the tax,
  • debt service on bonds issued to finance the projects,
  • bonding costs associated with financing the listed projects.

Notes on Scope

• The flood control and water quality provision explicitly excludes removal of the MN00515 dam.
• The language includes references to related statutory authorities (notwithstanding specified sections) to enable bonding and use of funds for the listed purposes.

Relevant Terms - Rochester - local sales tax - extension - economic vitality fund - street reconstruction - flood control - water quality - MN00515 dam - sports and recreation complex - debt service - bonds - bonding costs - voter approval - June 30, 2026