This bill amends Minnesota Statutes to require referendums for certain capital improvement projects financed by economic development authorities. Specifically, it introduces new provisions in sections 465.71 and 469.103, mandating that home rule charter cities and statutory cities must adhere to election requirements outlined in section 475.521, subdivision 2, when entering lease-purchase agreements for capital improvements financed by revenue bonds. The bill clarifies that these agreements must pertain to real or personal property qualifying as capital improvements and that the cities have the right to terminate such agreements at the end of any fiscal year.

Additionally, the bill establishes that economic development authorities must also follow the same election requirements when issuing revenue bonds for projects that will be leased to home rule charter cities or statutory cities. This ensures that local governments engage their constituents in the decision-making process regarding significant financial commitments related to capital improvements. The new language emphasizes the importance of transparency and public involvement in local government financial decisions.

Statutes affected:
Introduction: 465.71, 469.103