HF 1181

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to cities; providing for an alternative 
  1.3             procedure for annexation; proposing coding for new law 
  1.4             as Minnesota Statutes, chapter 414A.  
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [STATE POLICY.] 
  1.7      It is state policy: 
  1.8      (1) that sound urban development is essential to the 
  1.9   continued economic development of Minnesota; 
  1.10     (2) that cities are established to provide the governmental 
  1.11  services essential for sound urban development and to protect 
  1.12  the health, safety, and welfare in areas intensively used for 
  1.13  residential, commercial, industrial, institutional, and 
  1.14  governmental purposes or in areas undergoing development; 
  1.15     (3) that city boundaries must be extended according to law 
  1.16  applicable throughout the state, to include the areas described 
  1.17  in clause (2) and to provide the high quality of governmental 
  1.18  services needed in those areas for the public health, safety, 
  1.19  and welfare; 
  1.20     (4) that new urban development in the vicinity of cities 
  1.21  that have populations of fewer than 5,000 persons tends to be 
  1.22  concentrated close to the cities' boundary rather than being 
  1.23  scattered and dispersed as in the vicinity of a larger city, so 
  1.24  that the law governing annexation by these smaller cities can be 
  1.25  simpler than that for larger cities and still attain the 
  2.1   objectives set forth in this section; 
  2.2      (5) that new urban development in the vicinity of cities 
  2.3   that have populations of 5,000 or more persons is more scattered 
  2.4   than in the vicinity of smaller cities, and that these larger 
  2.5   cities have greater difficulty in expanding city utility systems 
  2.6   and other service facilities to serve the scattered development, 
  2.7   so that the law governing annexation by these larger cities must 
  2.8   take these facts into account if the objectives set forth in 
  2.9   this section are to be attained; and 
  2.10     (6) that an area annexed to a city according to law must 
  2.11  receive the services otherwise provided according to law by the 
  2.12  annexing city. 
  2.13     Sec. 2.  [414A.02] [DEFINITIONS.] 
  2.14     The definitions in this section apply in this chapter: 
  2.15     (1) "City" includes home rule charter or statutory city. 
  2.16     (2) "Contiguous area" means any area that, at the time 
  2.17  annexation procedures are begun, either abuts directly on the 
  2.18  city's boundary or is separated from the city's boundary by a 
  2.19  street or street right-of-way, a creek or river, the 
  2.20  right-of-way of a railroad or other public service corporation, 
  2.21  lands owned by the city or some other political subdivision, or 
  2.22  lands owned by the state of Minnesota. 
  2.23     (3) "Used for residential purposes" means any lot or tract 
  2.24  five acres or less in size on which is constructed a habitable 
  2.25  dwelling unit. 
  2.26     (4) "Primary corporate limits" means the corporate limits 
  2.27  of a city as defined in its charter, or by law, enlarged or 
  2.28  diminished by later annexations or exclusions of contiguous 
  2.29  territory. 
  2.30     Sec. 3.  [414A.03] [AUTHORITY TO ANNEX.] 
  2.31     In addition to any other means authorized by law, the city 
  2.32  council of a city may annex territory under the applicable 
  2.33  procedures in this chapter. 
  2.34     Sec. 4.  [414A.04] [ANNEXATION BY PETITION.] 
  2.35     (a) If all the owners of property contiguous to a city 
  2.36  petition the city to annex the property, the city council of the 
  3.1   city may pass an ordinance annexing the property.  The petition 
  3.2   must be signed by and have the address of each owner. 
  3.3      (b) The petition must be prepared in substantially the 
  3.4   following form: 
  3.5      DATE: 
  3.6      To the ....... city council of the city of ........ 
  3.7      (1) We the undersigned owners of real property respectfully 
  3.8   request that the area described in clause (2) be annexed to the 
  3.9   city, 
  3.10     (2) The area to be annexed is contiguous to the city and 
  3.11  the boundaries of the area's territory are as follows:  
  3.12  ............................................... 
  3.13     (c) On receipt of the petition, the city council shall see 
  3.14  that its clerk investigates the sufficiency of the petition and 
  3.15  certifies the result of the investigation.  On receipt of the 
  3.16  certification, the city council shall fix a date for a public 
  3.17  hearing on the question of the annexation, and shall see that 
  3.18  notice of the public hearing is published once in a newspaper 
  3.19  having general circulation in the city at least ten days before 
  3.20  the date of the public hearing.  If there is no such paper, the 
  3.21  governing board must post notices in three or more public places 
  3.22  within the area to be annexed and three or more public places 
  3.23  within the city. 
  3.24     (d) At the public hearing, all persons owning property in 
  3.25  the area to be annexed who allege an error in the petition must 
  3.26  be given an opportunity to be heard.  Residents of the city who 
  3.27  question the necessity for annexation also must be given an 
  3.28  opportunity to be heard.  The city council then must decide if 
  3.29  the petition complies with this section.  On a finding that the 
  3.30  petition complies with this section, the city council may ordain 
  3.31  an ordinance annexing the territory described in the petition.  
  3.32  The city council may make the annexing ordinance effective 
  3.33  immediately or on any specified date within six months from the 
  3.34  date of passage of the ordinance. 
  3.35     (e) Once the annexation ordinance is effective, the annexed 
  3.36  territory and its residents and property are subject to all 
  4.1   debts, laws, ordinances, and regulations in force in the city 
  4.2   and have the same privileges and benefits as other parts of the 
  4.3   city.  Real property in the annexed territory on the last 
  4.4   January 1 before annexation is effective is subject to the 
  4.5   city's property tax levy as provided in section 414A.26.  
  4.6      (f) In this chapter, an area is "contiguous" to an annexing 
  4.7   city if the area either abuts directly on the city's boundary or 
  4.8   is separated from the city's boundary by a street or street 
  4.9   right-of-way, a creek or river, or the right-of-way of a 
  4.10  railroad or other public service corporation, land owned by the 
  4.11  city or another political subdivision of the state, or land 
  4.12  owned by the state of Minnesota.  In describing the area to be 
  4.13  annexed in the annexation ordinance, the city council may 
  4.14  include within the description any territory described in this 
  4.15  paragraph that separates the city boundary from the area 
  4.16  proposed to be annexed. 
  4.17     (g) The city council may initiate annexation of contiguous 
  4.18  property owned by the city by adopting a resolution stating its 
  4.19  intent to annex the property, in place of the filing of a 
  4.20  petition.  The resolution shall contain an adequate description 
  4.21  of the property, state that the property is contiguous to the 
  4.22  municipal boundaries, and fix a date for a public hearing on the 
  4.23  question of annexation.  Notice of the public hearing must be 
  4.24  published as provided in paragraph (c).  The city council may 
  4.25  hold the public hearing and adopt the annexation ordinance as 
  4.26  provided in paragraph (d). 
  4.27     Sec. 5.  [414A.05] [PREREQUISITES; ABILITY TO SERVE; REPORT 
  4.28  AND PLANS.] 
  4.29     (a) A city having a population of less than 5,000 may 
  4.30  exercise authority under sections 414A.06 and 414A.07.  In doing 
  4.31  so, it must make plans to extend services to the area proposed 
  4.32  to be annexed and must, before the public hearing provided for 
  4.33  in section 414A.07, prepare a report setting out the plan to 
  4.34  provide services to the area.  
  4.35     (b) The report shall include: 
  4.36     (1) a map of the city and adjacent territory to show the 
  5.1   following information: 
  5.2      (i) the present and proposed boundaries of the city; and 
  5.3      (ii) the proposed extensions of water mains and sewer 
  5.4   outfalls to serve the annexed area, if the utilities are 
  5.5   operated by the city; 
  5.6      (2) a statement showing that the area to be annexed meets 
  5.7   the requirements of section 414A.06; 
  5.8      (3) a statement setting out the plans of the city to extend 
  5.9   to the area proposed to be annexed each major municipal service 
  5.10  performed at the time of annexation within the city.  
  5.11  Specifically, the plan must: 
  5.12     (i) provide for extending police protection, fire 
  5.13  protection, solid waste collection, and street maintenance 
  5.14  services to the area proposed to be annexed on the date of 
  5.15  annexation on substantially the same basis and in the same 
  5.16  manner as the services are provided before annexation within the 
  5.17  rest of the city; 
  5.18     (ii) provide for extension of water mains and sewer lines 
  5.19  into the area proposed to be annexed so that property owners in 
  5.20  the area proposed to be annexed are able to secure public water 
  5.21  and sewer services according to the policies in effect in the 
  5.22  city to extend water and sewer lines to individual lots or 
  5.23  subdivisions; 
  5.24     (iii) set out the method under which the city plans to 
  5.25  finance extension of services into the area proposed to be 
  5.26  annexed. 
  5.27     (c) If the city must, at its own expense, extend a water or 
  5.28  sewer line into the area proposed to be annexed before property 
  5.29  owners in the area can, according to city policy, make the 
  5.30  connection to the line, then the plan must call for contracts to 
  5.31  be let and construction to begin on the line within three years 
  5.32  after the effective date of the annexation. 
  5.33     Sec. 6.  [414A.06] [CHARACTER OF AREA TO BE ANNEXED.] 
  5.34     (a) A city may extend the city limits to include any area 
  5.35  that meets the general standards of paragraph (b), and that 
  5.36  meets the requirements of paragraph (c). 
  6.1      (b) The total area to be annexed must meet the following 
  6.2   standards: 
  6.3      (1) It must be adjacent or contiguous to the city's 
  6.4   boundaries at the time the annexation proceeding begins. 
  6.5      (2) No part of the area shall be included within the 
  6.6   boundary of another city. 
  6.7      (c) The area to be annexed must be developed for urban 
  6.8   purposes.  An area "developed for urban purposes" means an area 
  6.9   that is so developed that at least 40 percent of the total 
  6.10  number of lots and tracts in the area at the time of annexation 
  6.11  are used for residential, commercial, industrial, institutional, 
  6.12  or governmental purposes, and is subdivided into lots and tracts 
  6.13  such that at least 40 percent of the total developable acreage, 
  6.14  not counting the acreage used at the time of annexation for 
  6.15  commercial, industrial, governmental, or institutional purposes, 
  6.16  consists of lots and tracts five acres or less in size. 
  6.17     (d) In fixing a city's boundaries, a city shall, wherever 
  6.18  practical, use natural topographic features such as ridge lines, 
  6.19  streams, and creeks as boundaries, and may use streets as 
  6.20  boundaries. 
  6.21     Sec. 7.  [414A.07] [PROCEDURE FOR ANNEXATION.] 
  6.22     Subdivision 1.  [NOTICE OF INTENT.] A city council 
  6.23  proposing to annex territory under this section and section 
  6.24  414A.06 must first pass a resolution stating the intent of the 
  6.25  city to consider annexation.  The resolution must describe the 
  6.26  boundaries of the area under consideration, and fix a date for a 
  6.27  public hearing on the question of annexation.  The date for the 
  6.28  public hearing must be not less than 45 days and not more than 
  6.29  90 days after the resolution is passed. 
  6.30     Subd. 2.  [NOTICE OF PUBLIC HEARING.] (a) The notice of 
  6.31  public hearing must: 
  6.32     (1) fix the date, hour, and place of the public hearing; 
  6.33     (2) describe clearly the boundaries of the area under 
  6.34  consideration, and include a legible map of the area; and 
  6.35     (3) state that the report required by section 414A.05 will 
  6.36  be available at the office of the city clerk at least 30 days 
  7.1   before the public hearing. 
  7.2      (b) Published notice must be given for at least two 
  7.3   successive weeks before the date of the hearing.  If the area 
  7.4   proposed to be annexed is in a county that has less than 50 
  7.5   percent of the land area of the city, the published notice must 
  7.6   be given for the same two weeks in the area of the proposed 
  7.7   annexation.  If no newspaper is qualified, the city must post 
  7.8   the notice in at least five public places within the city and at 
  7.9   least five public places in the area proposed to be annexed for 
  7.10  30 days before the date of public hearing.  Notice also must be 
  7.11  mailed at least four weeks before the date of the hearing by 
  7.12  first class mail, postage prepaid, to the owners, as shown by 
  7.13  the tax records of the county, of all freehold interests in real 
  7.14  property that is located within the area proposed to be 
  7.15  annexed.  The person mailing the notices must provide the city 
  7.16  council with a certificate attesting to the mailing.  The 
  7.17  certificate is a part of the record of the annexation proceeding 
  7.18  and is conclusive in the absence of fraud.  If a copy of the 
  7.19  notice is returned to the city by the postal service by the 
  7.20  tenth day before the hearing, a copy of the notice must be sent 
  7.21  by certified mail, return receipt requested, at least seven days 
  7.22  before the hearing.  Failure to comply with the mailing 
  7.23  requirement of this paragraph does not invalidate the annexation 
  7.24  unless it is shown that the requirements were not substantially 
  7.25  complied with. 
  7.26     (c) If the city council by resolution finds that the tax 
  7.27  records are not adequate to identify the owner of some parcels 
  7.28  of real property within the area it may, in place of the mail 
  7.29  procedure as to the parcels, post the notice at least 30 days 
  7.30  before the date of public hearing on all buildings, other than 
  7.31  outbuildings on the parcels, and in at least five other places 
  7.32  within the area proposed to be annexed.  If notices are placed 
  7.33  on property, the person placing the notice must provide the city 
  7.34  council with a certificate attesting to the placement. 
  7.35     Subd. 3.  [ACTION BEFORE HEARING.] At least 30 days before 
  7.36  the public hearing, the city council must approve the report 
  8.1   required by section 414A.05 and must make it available to the 
  8.2   public at the office of the city clerk.  The city may prepare a 
  8.3   summary of the full report for public distribution.  In 
  8.4   addition, the city must post in the office of the city clerk at 
  8.5   least 30 days before the public hearing, a legible map of the 
  8.6   area proposed to be annexed and a list of the persons that it 
  8.7   has identified holding freehold interests in property in the 
  8.8   area to be annexed. 
  8.9      Subd. 4.  [PUBLIC HEARING.] At the public hearing, a 
  8.10  representative of the city must first explain the report 
  8.11  required in section 414A.05.  After the explanation, all 
  8.12  residents or owners of property in the territory described in 
  8.13  the notice of public hearing, and all residents of the city, 
  8.14  must be given an opportunity to be heard on the question of the 
  8.15  annexation. 
  8.16     Subd. 5.  [PASSAGE OF THE ANNEXATION ORDINANCE.] (a) The 
  8.17  city council must consider facts presented at the public hearing 
  8.18  and may amend the report required by section 414A.05 to make 
  8.19  changes in the plans for serving the area proposed to be annexed 
  8.20  if the changes comply with section 414A.05.  At any regular or 
  8.21  special meeting held no sooner than the tenth day after the 
  8.22  public hearing and not later than 90 days after the public 
  8.23  hearing, the city council may adopt an ordinance extending the 
  8.24  corporate limits of the city to include all, or part, of the 
  8.25  area described in the notice of public hearing that meets the 
  8.26  requirements of section 414A.06 and which the city council has 
  8.27  decided to annex.  
  8.28     (b) The ordinance must contain specific findings showing 
  8.29  that the area to be annexed meets the requirements of section 
  8.30  414A.06.  The external boundaries of the annexed area must be 
  8.31  described by metes and bounds.  In showing the application of 
  8.32  section 414A.06, paragraphs (c) and (d), to the area, the city 
  8.33  council may refer to boundaries set forth on a map of the area 
  8.34  and incorporate them by reference as a part of the ordinance. 
  8.35     (c) The ordinance must contain a statement of the intent of 
  8.36  the city to provide services to the annexed area as set forth in 
  9.1   the report required by section 414A.05. 
  9.2      (d) The ordinance must contain a specific finding that on 
  9.3   the effective date of the annexation the city will have funds 
  9.4   appropriated in sufficient amount to finance construction of any 
  9.5   water and sewer lines found necessary in the report required by 
  9.6   section 414A.05 to extend the basic water and sewer system of 
  9.7   the city into the annexed area, or that on the effective date of 
  9.8   the annexation the city will have authority to issue bonds in an 
  9.9   amount sufficient to finance the construction.  If authority to 
  9.10  issue the bonds must be secured from the electorate of the city 
  9.11  before the effective date of the annexation, then the effective 
  9.12  date of the annexation may be no earlier than the day after the 
  9.13  official canvas of the successful result of the bond election. 
  9.14     (e) The ordinance must fix the effective date for the 
  9.15  annexation.  Subject to paragraph (d), the effective date of the 
  9.16  annexation may be fixed for any date not less than 40 days nor 
  9.17  more than 400 days from the date of passage of the ordinance. 
  9.18     Subd. 6.  [EFFECT OF ANNEXATION ORDINANCE.] Once the 
  9.19  annexation ordinance is effective, the territory and its 
  9.20  citizens and property are subject to all debts, laws, 
  9.21  ordinances, and regulations in force in the city and are 
  9.22  entitled to the same privileges and benefits as other parts of 
  9.23  the city.  Real property in the annexed territory on the last 
  9.24  January 1 before annexation is effective is subject to the 
  9.25  city's property tax levy as provided in section 414A.26.  
  9.26     Subd. 7.  [SIMULTANEOUS ANNEXATION PROCEEDINGS.] If a city 
  9.27  considers the annexation of two or more areas that are adjacent 
  9.28  to the municipal boundary but are not adjacent to one another, 
  9.29  it may undertake simultaneous proceedings under this part to 
  9.30  annex the areas. 
  9.31     Subd. 8.  [REMEDIES FOR FAILURE TO PROVIDE SERVICES.] (a) 
  9.32  If, not earlier than three years after the effective date of 
  9.33  annexation, and not later than 39 months after the effective 
  9.34  date of the annexation, a person who owns property in the 
  9.35  annexed territory believes that the city has not followed 
  9.36  through on its service plan adopted under section 414A.05, the 
 10.1   person may apply for a writ of mandamus under section 586.01.  
 10.2      (b) Relief may be granted by the district court: 
 10.3      (1) if the city has not provided the services set forth in 
 10.4   its plan submitted under section 414A.05 on substantially the 
 10.5   same basis and in the same manner as the services were provided 
 10.6   in the rest of the city before the effective date of annexation; 
 10.7   and 
 10.8      (2) if at the time the writ is sought the services set 
 10.9   forth in the plan submitted under section 414A.05 are still 
 10.10  being provided on substantially the same basis and in the same 
 10.11  manner as on the date of annexation within the rest of the city. 
 10.12     (c) Relief may also be granted by the judge of district 
 10.13  court: 
 10.14     (1) if the plans submitted under section 414A.05 require 
 10.15  the construction of major trunk water main and sewer lines; and 
 10.16     (2) if contracts for the construction have not yet been let.
 10.17     (d) If a writ is issued, costs in the action, including a 
 10.18  reasonable attorney's fee for the aggrieved person, may be 
 10.19  charged to the city. 
 10.20     Subd. 9.  [RESOLUTION OF CONSIDERATION.] A resolution of 
 10.21  intent must not be adopted under subdivision 1 unless the city 
 10.22  council has, by resolution adopted at least one year before 
 10.23  adoption of the resolution of intent, identified the area as 
 10.24  being under consideration for annexation.  Adoption of the 
 10.25  resolution of consideration does not confer prior jurisdiction 
 10.26  over the area as to any other city.  The area described under 
 10.27  the resolution of intent may comprise a smaller area than that 
 10.28  identified by the resolution of consideration.  The resolution 
 10.29  of consideration may have a metes and bounds description, or a 
 10.30  map, must be effective for two years after its adoption, and 
 10.31  must be filed with the city clerk.  A new resolution of 
 10.32  consideration adopted before expiration of the two-year period 
 10.33  for a previously adopted resolution covering the same area 
 10.34  relates back to the date of the earlier resolution. 
 10.35     Subd. 10.  [WHEN SUBDIVISION 9 DOES NOT APPLY.] Subdivision 
 10.36  9 does not apply to the annexation of an area if the resolution 
 11.1   of intent describing the area and the ordinance annexing the 
 11.2   area both provide that the effective date of the annexation is 
 11.3   at least one year from the date of passage of the annexation 
 11.4   ordinance. 
 11.5      Sec. 8.  [414A.08] [PREREQUISITES; ABILITY TO SERVE; REPORT 
 11.6   AND PLANS.] 
 11.7      Subdivision 1.  [PLAN TO EXTEND SERVICES.] (a) A city 
 11.8   having a population of 5,000 or more may exercise authority 
 11.9   under sections 414A.08 to 414A.11.  In doing so, it must plan to 
 11.10  extend services to the area proposed to be annexed and must, 
 11.11  before the public hearing required by section 414A.10, prepare a 
 11.12  report setting forth the plans to provide services to the area.  
 11.13     (b) The report must include a map of the city and adjacent 
 11.14  territory to show: 
 11.15     (1) the present and proposed boundaries of the city; 
 11.16     (2) the present major trunk water mains and sewer 
 11.17  interceptors, and the proposed extensions of the mains as 
 11.18  required in paragraph (c), clause (3); and 
 11.19     (3) the general land use pattern in the area proposed to be 
 11.20  annexed. 
 11.21     (c) The report must include a statement of the plan of the 
 11.22  city to extend to the area proposed to be annexed, each major 
 11.23  municipal service performed within the city at the time of 
 11.24  annexation, including:  
 11.25     (1) providing for extending police protection, fire 
 11.26  protection, solid waste collection, and street maintenance 
 11.27  services to the area to be annexed on the date of annexation on 
 11.28  substantially the same basis and in the same manner as the 
 11.29  services are provided within the rest of the city before 
 11.30  annexation; 
 11.31     (2) providing for extension of major trunk water mains and 
 11.32  sewer lines into the area to be annexed so that when the lines 
 11.33  are constructed, property owners in the area proposed to be 
 11.34  annexed can secure public water and sewer service, according to 
 11.35  the policies in effect in the city to extend water and sewer 
 11.36  lines to individual lots or subdivisions; 
 12.1      (3) if extension of major trunk water mains, sewer lines, 
 12.2   and water lines is necessary, set forth a proposed timetable for 
 12.3   construction of the mains and lines as soon as possible after 
 12.4   the effective date of annexation within three years of the 
 12.5   effective date of annexation; and 
 12.6      (4) set forth the method under which the city plans to 
 12.7   finance extension of services into the area to be annexed. 
 12.8      Subd. 2.  [REQUEST FOR SERVICES.] If requested by the owner 
 12.9   of an occupied dwelling unit or an operating commercial or 
 12.10  industrial property in writing on a form provided by the city, 
 12.11  which form acknowledges that the extension will be made 
 12.12  according to the current financial policies of the city for 
 12.13  making extensions, and if the form is received by the city clerk 
 12.14  not less than 30 days before adoption of the annexation 
 12.15  ordinance, provide for extension of water and sewer lines to the 
 12.16  property or to a point on a public street or road right-of-way 
 12.17  adjacent to the property according to the financial policies in 
 12.18  effect in the city for extending water and sewer lines.  If the 
 12.19  requests are timely made, the city must at the time of adoption 
 12.20  of the annexation ordinance amend its report and plan for 
 12.21  services to reflect and accommodate the requests. 
 12.22     Sec. 9.  [414A.09] [LIMITATION ON CHANGE IN FINANCIAL 
 12.23  PARTICIPATION PRIOR TO ANNEXATION.] 
 12.24     An ordinance or policy substantially diminishing the 
 12.25  financial participation of a city in the construction of water 
 12.26  or sewer facilities required under this chapter must not apply 
 12.27  to an area proposed to be annexed unless the ordinance or policy 
 12.28  is effective at least 180 days before the date of adoption by 
 12.29  the city of the resolution giving notice of intent to consider 
 12.30  annexing the area. 
 12.31     Sec. 10.  [414A.10] [CHARACTER OF AREA TO BE ANNEXED.] 
 12.32     (a) A city may extend the city corporate limits to include 
 12.33  any area: 
 12.34     (1) that meets the general standards of paragraph (b); and 
 12.35     (2) every part of which meets the requirements of either 
 12.36  paragraph (c) or (d). 
 13.1      (b) The total area proposed to be annexed must meet the 
 13.2   following standards: 
 13.3      (1) it must be adjacent or contiguous to the city's 
 13.4   boundaries at the time the annexation proceeding is begun; and 
 13.5      (2) no part of the area may be included within the boundary 
 13.6   of another incorporated city. 
 13.7      (c) Part or all of the area proposed to be annexed must be 
 13.8   developed for urban purposes.  An area developed for urban 
 13.9   purposes is defined as any area that meets any one of the 
 13.10  following standards: 
 13.11     (1) has a total resident population equal to an average of 
 13.12  at least two persons for each acre of land included within its 
 13.13  boundaries; or 
 13.14     (2) has a total resident population equal to at least one 
 13.15  person for each acre of land included within its boundaries, and 
 13.16  is subdivided into lots and tracts such that at least 40 percent 
 13.17  of the total developable acreage consists of lots and tracts 
 13.18  five acres or less in size and either at least 40 percent of the 
 13.19  total number of lots and tracts are either one acre or less in 
 13.20  size or zoned to allow for lots and tracts one acre or less in 
 13.21  size; or 
 13.22     (3) is so developed that at least 40 percent of the total 
 13.23  number of lots and tracts in the area at the time of annexation 
 13.24  are used for residential, commercial, industrial, institutional, 
 13.25  or governmental purposes, and is subdivided into lots and tracts 
 13.26  such that at least 40 percent of the total developable acreage, 
 13.27  not counting the acreage used at the time of annexation for 
 13.28  commercial, industrial, governmental, or institutional purposes, 
 13.29  consists of lots and tracts five acres or less in size. 
 13.30     (d) In addition to areas developed for urban purposes, a 
 13.31  city may include in the area to be annexed any area that does 
 13.32  not meet the requirements of paragraph (c) if the area either: 
 13.33     (1) lies between the city boundary and an area developed 
 13.34  for urban purposes so that the area developed for urban purposes 
 13.35  is either not adjacent to the city boundary or cannot be served 
 13.36  by the city without extending services, water, and sewer lines 
 14.1   through the sparsely developed area; or 
 14.2      (2) is adjacent, on at least 40 percent of its external 
 14.3   boundary, to any combination of the city boundary and the 
 14.4   boundary of an area or areas developed for urban purposes as 
 14.5   defined in paragraph (c). 
 14.6      (e) The purpose of paragraph (d) is to permit cities to 
 14.7   extend corporate limits to include all nearby areas developed 
 14.8   for urban purposes and where necessary to include areas that at 
 14.9   the time of annexation are not yet developed for urban purposes 
 14.10  but that are necessary land connections between the city and 
 14.11  areas developed for urban purposes or between two or more areas 
 14.12  developed for urban purposes. 
 14.13     (f) In fixing new city boundaries, a city shall, wherever 
 14.14  practical, use natural topographic features such as ridge lines, 
 14.15  streams, and creeks as boundaries, and may use streets as 
 14.16  boundaries. 
 14.17     Sec. 11.  [414A.11] [PROCEDURE FOR ANNEXATION.] 
 14.18     Subdivision 1.  [NOTICE OF INTENT.] Any city council that 
 14.19  desires to annex territory under sections 414A.08 to 414A.11 
 14.20  shall first pass a resolution stating the intent of the city to 
 14.21  consider annexation.  The resolution must describe the 
 14.22  boundaries of the area under consideration and fix a date for a 
 14.23  public hearing on the question of annexation.  The date for the 
 14.24  public hearing must be not less than 45 days and not more than 
 14.25  90 days after passage of the resolution. 
 14.26     Subd. 2.  [NOTICE OF PUBLIC HEARING.] (a) The notice of 
 14.27  public hearing must: 
 14.28     (1) fix the date, hour, and place of the public hearing; 
 14.29     (2) describe clearly the boundaries of the area under 
 14.30  consideration, and include a legible map of the area; and 
 14.31     (3) state that the report required by section 414A.08 will 
 14.32  be available at the office of the municipal clerk at least 30 
 14.33  days before the public hearing. 
 14.34     (b) Published notice must be given for at least two 
 14.35  successive weeks if the area proposed to be annexed lies in a 
 14.36  county that has less than 50 percent of the land area of the 
 15.1   city, the published notice must be given for at least the same 
 15.2   two weeks in the area of the proposed annexation.  If no 
 15.3   newspaper qualifies, the city must post the notice in at least 
 15.4   five public places within the city and at least five public 
 15.5   places in the area proposed to be annexed for 30 days before the 
 15.6   date of public hearing.  The notice must be mailed at least four 
 15.7   weeks before the date of the hearing by first class mail, 
 15.8   postage prepaid to the owners, as shown by the tax records of 
 15.9   the county, of all freehold interests in real property that is 
 15.10  located within the area proposed to be annexed.  The person 
 15.11  mailing the notices must provide the city council with a 
 15.12  certificate attesting to the mailing.  The certificate is a part 
 15.13  of the record of the annexation proceeding and is conclusive in 
 15.14  the absence of fraud.  If a copy of the notice is returned to 
 15.15  the city by the postal service by the tenth day before the 
 15.16  hearing, a copy of the notice must be sent by certified mail, 
 15.17  return receipt requested, at least seven days before the hearing.
 15.18  Failure to comply with the mailing requirements of this 
 15.19  paragraph does not invalidate the annexation unless it is shown 
 15.20  that the requirements were not substantially complied with.  
 15.21     (c) If the city council by resolution finds that the tax 
 15.22  records are not adequate to identify the owners of the parcels 
 15.23  of real property within the area, it may in place of the mail 
 15.24  procedure as to the parcels, post the notice at least 30 days 
 15.25  before the date of public hearing on all buildings other than 
 15.26  outbuildings on the parcels, and in at least five other places 
 15.27  within the area proposed to be annexed.  If notices are placed 
 15.28  on property, the person placing the notices must provide the 
 15.29  city council with a certificate attesting to the placement. 
 15.30     Subd. 3.  [ACTION BEFORE HEARING.] At least 30 days before 
 15.31  the public hearing, the city council must approve the report 
 15.32  required by section 414A.08, and must make it available to the 
 15.33  public at the office of the city clerk.  The city may prepare a 
 15.34  summary of the full report for public distribution.  In 
 15.35  addition, the city must post in the office of the city clerk, at 
 15.36  least 30 days before the public hearing, a legible map of the 
 16.1   area proposed to be annexed and a list of persons that it has 
 16.2   identified holding freehold interests in property in the area to 
 16.3   be annexed. 
 16.4      Subd. 4.  [PUBLIC HEARING.] At the public hearing a 
 16.5   representative of the city must first explain the report 
 16.6   required by section 414A.08.  After the explanation, all 
 16.7   residents or owners of property in the territory described in 
 16.8   the notice of public hearing, and all residents of the city, 
 16.9   must be given an opportunity to be heard on the question of the 
 16.10  annexation. 
 16.11     Subd. 5.  [PASSAGE OF THE ANNEXATION ORDINANCE.] (a) The 
 16.12  city council must consider facts presented at the public hearing 
 16.13  and may amend the report required by section 414A.08 to change 
 16.14  the plans for serving the area proposed to be annexed if the 
 16.15  changes comply with section 414A.08.  If the annexation report 
 16.16  is changed to show that additional clauses of section 414A.10, 
 16.17  paragraph (c) or (d), under which the annexation qualifies and 
 16.18  that were not listed in the original report are applicable, the 
 16.19  city must hold an additional public hearing on the annexation 
 16.20  not less than 30 nor more than 90 days after the date the report 
 16.21  is amended, and notice of the new hearing must be given at the 
 16.22  first public hearing.  At any regular or special meeting held no 
 16.23  sooner than the tenth day following the public hearing and not 
 16.24  later than 90 days after the public hearing, the city council 
 16.25  may adopt an ordinance extending the corporate limits of the 
 16.26  city to include all or part of the area described in the notice 
 16.27  of public hearing that meets the requirements of section 414A.10 
 16.28  and that the city council has decided to annex.  
 16.29     (b) The ordinance must contain specific findings showing 
 16.30  that the area annexed meets the requirements of section 
 16.31  414A.10.  The external boundaries of the annexed area must be 
 16.32  described by metes and bounds.  In showing the application of 
 16.33  section 414A.10, paragraphs (c) and (d) to the area, the city 
 16.34  council may refer to boundaries on a map of the area and 
 16.35  incorporate them by reference as a part of the ordinance. 
 16.36     (c) The ordinance must contain a statement of the intent of 
 17.1   the city to provide services to the annexed area as set forth in 
 17.2   the report required by section 414A.08. 
 17.3      (d) The ordinance must contain a specific finding that on 
 17.4   the effective date of annexation the city will have funds 
 17.5   appropriated in sufficient amount to finance construction of any 
 17.6   major trunk water mains and the water and sewer lines required 
 17.7   by section 414A.08, subdivision 1, paragraph (c), found 
 17.8   necessary in the report required by section 414A.08 to extend 
 17.9   the basic water or sewer system of the city into the annexed 
 17.10  area, or that on the effective date of annexation the city will 
 17.11  have authority to issue bonds in an amount sufficient to finance 
 17.12  the construction.  If authority to issue the bonds must be 
 17.13  secured from the electorate of the city before the effective 
 17.14  date of the annexation, then the effective date of the 
 17.15  annexation is no earlier than the day after the official canvas 
 17.16  of the successful result of the bond election. 
 17.17     (e) The ordinance must fix the effective date for the 
 17.18  annexation.  Subject to paragraph (d), the effective date of 
 17.19  annexation may be fixed for any date not less than 40 days or 
 17.20  more than 400 days from the date of passage of the ordinance. 
 17.21     Subd. 6.  [EFFECT OF ANNEXATION ORDINANCE.] Once the 
 17.22  annexation ordinance is effective, the territory and its 
 17.23  citizens and property are subject to all debts, laws, 
 17.24  ordinances, and regulations in force in the city and are 
 17.25  entitled to the same privileges and benefits as other parts of 
 17.26  the city.  Real property in the annexed territory on the last 
 17.27  January 1 before the annexation is effective is subject to the 
 17.28  city's property taxes as provided in section 414A.26. 
 17.29     Subd. 7.  [SIMULTANEOUS ANNEXATION PROCEEDINGS.] If a city 
 17.30  considers the annexation of two or more areas that are adjacent 
 17.31  to the municipal boundary but are not adjacent to one another, 
 17.32  it may undertake simultaneous proceedings under sections 414A.08 
 17.33  to 414A.11 to annex the areas. 
 17.34     Subd. 8.  [REMEDIES FOR FAILURE TO PROVIDE SERVICES.] (a) 
 17.35  If, not earlier than three years after the effective date of 
 17.36  annexation, and not later than 39 months after the effective 
 18.1   date of the annexation, a person who owns property in the 
 18.2   annexed territory believes that the city has not followed 
 18.3   through on its service plan adopted under section 414A.08, for 
 18.4   any required service other than water and sewer services the 
 18.5   persons may apply for a writ of mandamus under section 586.01.  
 18.6      (b) Relief may be granted by the district court: 
 18.7      (1) if the city has not provided the services set forth in 
 18.8   its plan submitted under section 414A.08, on substantially the 
 18.9   same basis and in the same manner as the services were provided 
 18.10  within the rest of the city before the effective date of 
 18.11  annexation; and 
 18.12     (2) if at the time the writ is sought, the services set 
 18.13  forth in the plan submitted under section 414A.08, are still 
 18.14  being provided on substantially the same basis and in the same 
 18.15  manner as on the date of annexation within the rest of the city. 
 18.16     (c) If, not earlier than 36 months from the effective date 
 18.17  of the annexation, and not later than 39 months from the 
 18.18  effective date of the annexation, any person who owns property 
 18.19  in the annexed area can show that the plans submitted under 
 18.20  section 414A.08, require the construction of major trunk water 
 18.21  mains and sewer lines and if construction has not been completed 
 18.22  within three years of the effective date of the annexation, 
 18.23  relief also may be granted by the district court by an order to 
 18.24  the city to complete the lines within a certain time.  Similar 
 18.25  relief may be granted by the district court to an owner of 
 18.26  property who made a timely request for a water or sewer line, or 
 18.27  both, under section 414A.08, if the lines have not been 
 18.28  completed within three years from the effective date of the 
 18.29  annexation according to applicable city policies and through no 
 18.30  fault of the owner, and if the owner petitions for the relief 
 18.31  not earlier than 36 months after the effective date of the 
 18.32  annexation and not later than 39 months after the effective date 
 18.33  of the annexation. 
 18.34     (d) If a writ is issued, costs in the action, including a 
 18.35  reasonable attorney's fee for the aggrieved person, may be 
 18.36  charged to the city. 
 19.1      Subd. 9.  [RESOLUTION OF CONSIDERATION.] A resolution of 
 19.2   intent must not be adopted under subdivision 1 unless the city 
 19.3   council has, by resolution adopted at least one year before 
 19.4   adoption of the resolution of intent, identified the area as 
 19.5   being under consideration for annexation.  Adoption of the 
 19.6   resolution of consideration does not confer prior jurisdiction 
 19.7   over the area as to any other city.  The area described under 
 19.8   the resolution of intent may comprise a smaller area than that 
 19.9   identified by the resolution of consideration.  The resolution 
 19.10  of consideration may have a metes and bounds description or a 
 19.11  map and must be effective for two years after its adoption, and 
 19.12  must be filed with the city clerk.  A new resolution of 
 19.13  consideration, adopted before expiration of the two-year period 
 19.14  for a previously adopted resolution covering the same area 
 19.15  relates back to the date of the earlier resolution. 
 19.16     Subd. 10.  [NOT APPLICABLE.] Subdivision 9 does not apply 
 19.17  to the annexation of an area if the resolution of intent 
 19.18  describing the area and the ordinance annexing the area both 
 19.19  provide that the effective date of the annexation is at least 
 19.20  one year from the date of passage of the annexation ordinance. 
 19.21     Sec. 12.  [414A.12] [RECORDING MAP, OTHER DOCUMENTS; REPORT 
 19.22  TO CENSUS BUREAU.] 
 19.23     (a) If the territory of a city is enlarged under this 
 19.24  chapter, the clerk of the city must see that an accurate map of 
 19.25  the annexed territory, a certified copy of the ordinance 
 19.26  ordaining the annexation, and the official results of the 
 19.27  election, if any, approving the annexation must be recorded in 
 19.28  the office of the state demographer and in the office of the 
 19.29  county recorder of the county in which the annexed territory is 
 19.30  located. 
 19.31     (b) The recording with the state demographer must be done 
 19.32  within 30 days after the effective date of the annexation 
 19.33  ordinance.  Failure to record a document within the 30 days does 
 19.34  not affect the validity of the annexation. 
 19.35     (c) The clerk must also report the annexation as part of 
 19.36  the boundary and annexation survey of the United States Bureau 
 20.1   of the Census. 
 20.2      Sec. 13.  [414A.13] [ENTRY ONTO LAND TO MAP IT.] 
 20.3      The governing body of territory annexed under this chapter 
 20.4   may direct its representatives to enter onto land under its 
 20.5   jurisdiction to make surveys or examinations that are necessary 
 20.6   to carry out the mapping requirements of proposed annexations 
 20.7   under this chapter. 
 20.8      The governing body must first give five days written notice 
 20.9   of intent to enter to the owner of record or to a person in 
 20.10  possession of the land to be entered. 
 20.11     The governing body must reimburse the owner of property if 
 20.12  the property is damaged by the entry. 
 20.13     Sec. 14.  [414A.14] [APPEAL.] 
 20.14     (a) Within 30 days after the passage of an annexation 
 20.15  ordinance under this chapter, persons owning property in the 
 20.16  annexed territory who believe that they will suffer material 
 20.17  injury by reason of the failure of the city council to comply 
 20.18  with the appropriate procedure in this chapter as they apply to 
 20.19  their properties may file a petition in the district court of 
 20.20  the county in which the city is located seeking review of the 
 20.21  action of the city council. 
 20.22     (b) The petition must expressly state what the action of 
 20.23  the council from which relief is sought.  Within five days after 
 20.24  the petition is filed with the court, the person seeking review 
 20.25  must serve copies of the petition by registered mail, return 
 20.26  receipt requested, upon the city clerk. 
 20.27     (c) Within 15 days after receipt of the copy of the 
 20.28  petition for review, or within an additional time limit the 
 20.29  court may allow, the city must transmit to the court: 
 20.30     (1) a copy of the minutes of the city council in which the 
 20.31  procedure for annexation has been set forth; and 
 20.32     (2) a copy of the required report setting forth the plans 
 20.33  to extend services to the annexed area as required. 
 20.34     (d) If two or more petitions for review are submitted to 
 20.35  the court, the court may consolidate all the petitions for 
 20.36  review at a single hearing, and the city must submit only one 
 21.1   set of minutes and one report as required in paragraph (c). 
 21.2      (e) The court must fix the date for review of annexation 
 21.3   proceedings under this date, which review date must preferably 
 21.4   be within 30 days after the last day for receiving petitions to 
 21.5   the end that review is expeditious and without unnecessary 
 21.6   delays.  The review must be conducted by the court without a 
 21.7   jury.  The court may hear oral arguments and receive written 
 21.8   briefs, and may take evidence intended to show that the 
 21.9   statutory procedure was not followed. 
 21.10     (f) The court may affirm the action of the city council 
 21.11  without change, or it may:  
 21.12     (1) remand the ordinance to the city council for further 
 21.13  proceedings if procedural irregularities are found to have 
 21.14  materially prejudiced the substantive rights of a petitioner; 
 21.15     (2) remand the ordinance to the city council to change the 
 21.16  boundaries to conform to section 414A.10 if it finds that 
 21.17  section 414A.10 has not been followed; or 
 21.18     (3) remand the report to the city council to change the 
 21.19  plan to provide services to the end that section 414A.10 is 
 21.20  followed. 
 21.21     (g) The court must not remand the ordinance to the city 
 21.22  council to add area to the city that was not included in the 
 21.23  notice of public hearing and not provided for in the plan for 
 21.24  service.  
 21.25     (h) If any city fails to take action according to the 
 21.26  court's instructions within three months after the remand, the 
 21.27  annexation proceedings are void. 
 21.28     (i) A party to the review proceedings, including the city, 
 21.29  may appeal to the court of appeals from the final judgment of 
 21.30  the district court under the rules of procedure applicable in 
 21.31  civil cases.  The district court may, with the agreement of the 
 21.32  city, permit the annexation to be effective with respect to any 
 21.33  part of the area concerning which no appeal is being made and 
 21.34  that can be incorporated into the city without regard to any 
 21.35  part of the area concerning which an appeal is being made. 
 21.36     (j) If part or all of the area annexed under an annexation 
 22.1   ordinance is the subject of an appeal to the district court, 
 22.2   court of appeals, or supreme court on the effective date of the 
 22.3   ordinance, then the ordinance is considered amended to make the 
 22.4   effective date with respect to that area the last day of the 
 22.5   next month after the date of the final judgment of the district 
 22.6   court or appellate division, whichever is appropriate, or the 
 22.7   date the city council completes action to make the ordinance 
 22.8   conform to the court's instructions if remanded.  In this 
 22.9   paragraph, a denial of a petition for rehearing or for 
 22.10  discretionary review is a final judgment. 
 22.11     (k) If a petition for review is filed under paragraph (a) 
 22.12  or an appeal is otherwise filed and a stay is granted, then the 
 22.13  time periods of three years or 39 months provided in section 
 22.14  414A.11, subdivision 8, are each extended by the lesser of the 
 22.15  length of the stay or one year, for that annexation. 
 22.16     (l) Paragraph (j) applies to any judicial review authorized 
 22.17  in whole or in part by law. 
 22.18     Sec. 15.  [414A.15] [ANNEXATION RECORDED.] 
 22.19     If the limits of a city are enlarged according to this 
 22.20  chapter, the city clerk must cause an accurate map of the 
 22.21  annexed territory, together with a certified copy of the 
 22.22  ordinance, to be recorded in the office of the county recorder 
 22.23  of the county in which the territory is situated and in the 
 22.24  office of the state demographer.  The documents required to be 
 22.25  filed with the state demographer must be filed not later than 30 
 22.26  days after the effective date of the annexation ordinance. 
 22.27  Failure to file within the 30-day period does not affect the 
 22.28  validity of the annexation.  The annexation also must be 
 22.29  reported as part of the boundary and annexation survey of the 
 22.30  United States Bureau of the Census. 
 22.31     Sec. 16.  [414A.16] [AUTHORIZED EXPENDITURES.] 
 22.32     A city that starts an annexation under this chapter may 
 22.33  spend for surveys required to describe the property under 
 22.34  consideration or for any other purpose necessary to plan for the 
 22.35  study or for the annexation.  Also, after final passage of the 
 22.36  annexation ordinance, the city may proceed with expenditures to 
 23.1   construct water and sewer lines and other capital facilities and 
 23.2   for any other purpose calculated to bring services into the 
 23.3   annexed area in a more effective and expeditious manner before 
 23.4   the effective date of annexation. 
 23.5      Sec. 17.  [414A.17] [POPULATION AND LAND ESTIMATES.] 
 23.6      (a) In determining population and degree of land 
 23.7   subdivision to comply with this chapter, the city must use 
 23.8   methods calculated to provide reasonably accurate results.  
 23.9      (b) In determining whether the standards set forth in this 
 23.10  chapter have been met on appeal to the district court, the court 
 23.11  must accept the estimates of the city: 
 23.12     (1) as to population, if the estimate is based on the 
 23.13  number of dwelling units in the area multiplied by the average 
 23.14  family size in the area, or in the townships of which the area 
 23.15  is a part, as determined by the last federal decennial census; 
 23.16  or if it is based on a new enumeration carried out under 
 23.17  reasonable rules by the annexing city; but the court must not 
 23.18  accept the estimates if the petitioners demonstrate that the 
 23.19  estimates are in error by ten percent or more; 
 23.20     (2) as to total area, if the estimate is based on an actual 
 23.21  survey, or on county tax maps or records, or on aerial 
 23.22  photographs, or on some other reasonably reliable map used for 
 23.23  official purposes by a governmental agency, unless the 
 23.24  petitioners on appeal demonstrate that the estimates are in 
 23.25  error by five percent or more; and 
 23.26     (3) as to degree of land subdivision, if the estimates are 
 23.27  based on an actual survey, or on county tax maps or records, or 
 23.28  on aerial photographs, or on some other reasonably reliable 
 23.29  source, unless the petitioners on appeal show that the estimates 
 23.30  are in error by five percent or more. 
 23.31     Sec. 18.  [414A.18] [PETITION FOR ANNEXATION; STANDARDS.] 
 23.32     Subdivision 1.  [PETITION.] On receipt of a valid petition 
 23.33  signed by all of the owners of real property in the area 
 23.34  described in the petition, a city may annex an area not 
 23.35  contiguous to its primary corporate limits when the area meets 
 23.36  the standards set out in subdivision 2.  The petition need not 
 24.1   be signed by the owners of real property that is wholly exempt 
 24.2   from property taxation under the Constitution and Laws of 
 24.3   Minnesota, nor by railroad companies, or public utilities as 
 24.4   defined in law, or electric or telephone cooperatives. 
 24.5      Subd. 2.  [NONCONTIGUOUS AREA.] A noncontiguous area 
 24.6   proposed for annexation must meet all of the following standards:
 24.7      (1) the nearest point on the proposed noncontiguous area 
 24.8   must be not more than three miles from the primary corporate 
 24.9   limits of the annexing city; 
 24.10     (2) no point on the proposed noncontiguous area may be 
 24.11  closer to the primary corporate limits of another city than to 
 24.12  the primary corporate limits of the annexing city; 
 24.13     (3) the area must be so situated that the annexing city 
 24.14  will be able to provide the same services within the proposed 
 24.15  noncontiguous area that it provides within its primary corporate 
 24.16  limits; 
 24.17     (4) if the area proposed for annexation, or any part of it, 
 24.18  is a subdivision as defined in law, all of the subdivision must 
 24.19  be included; and 
 24.20     (5) the area within the proposed noncontiguous area, when 
 24.21  added to the area within all other noncontiguous areas of the 
 24.22  annexing city, must not exceed ten percent of the area within 
 24.23  the primary corporate limits of the annexing city. 
 24.24     Subd. 3.  [PETITION REQUIREMENT.] The petition must contain 
 24.25  the names, addresses, and signatures of all owners of real 
 24.26  property within the proposed noncontiguous area except owners 
 24.27  not required to sign under subdivision 1, must describe the area 
 24.28  proposed for annexation by metes and bounds, and must have 
 24.29  attached to it a map showing the area proposed for annexation 
 24.30  with relation to the primary corporate limits of the annexing 
 24.31  city.  If there is any substantial question as to whether the 
 24.32  area may be closer to another city than to the annexing city, 
 24.33  the map must also show the area proposed for annexation with 
 24.34  relation to the primary corporate limits of the other city.  The 
 24.35  city council may prescribe the form of the petition. 
 24.36     Sec. 19.  [414A.19] [PUBLIC HEARING.] 
 25.1      Subdivision 1.  [INVESTIGATION.] On receipt of a petition 
 25.2   for annexation under section 414A.18, the city council must see 
 25.3   that the city clerk investigates the petition, and certifies the 
 25.4   results of the investigation.  If the clerk certifies that on 
 25.5   investigation the petition appears to be valid, the council must 
 25.6   fix a date for a public hearing on the annexation.  Notice of 
 25.7   the hearing must be published once at least ten days before the 
 25.8   date of hearing. 
 25.9      Subd. 2.  [HEARING.] At the hearing, any person who resides 
 25.10  in or owns property in the area proposed for annexation and any 
 25.11  resident of the annexing city may appear and be heard on the 
 25.12  questions of the sufficiency of the petition and the 
 25.13  desirability of the annexation.  If the council then finds and 
 25.14  determines that: 
 25.15     (1) the area described in the petition meets all of the 
 25.16  standards in section 414A.18; 
 25.17     (2) the petition bears the signatures of all of the owners 
 25.18  of real property within the area proposed for annexation who are 
 25.19  required to sign; 
 25.20     (3) the petition is otherwise valid; and 
 25.21     (4) the public health, safety, and welfare of the 
 25.22  inhabitants of the city and of the area proposed for annexation 
 25.23  is best served by the annexation, the council may adopt an 
 25.24  ordinance annexing the area described in the petition.  The 
 25.25  ordinance may be made effective immediately or on any specified 
 25.26  date within six months after the date of passage of the 
 25.27  ordinance. 
 25.28     Sec. 20.  [414A.20] [ANNEXED AREA SUBJECT TO CITY TAXES AND 
 25.29  DEBTS.] 
 25.30     Once annexed, the annexed area and its citizens and 
 25.31  property are subject to all debts, laws, ordinances, and 
 25.32  regulations of the annexing city, and are entitled to the same 
 25.33  privileges and benefits as other parts of the city.  Real 
 25.34  property in the newly annexed territory on the last January 1 
 25.35  before the annexation is effective is subject to city real 
 25.36  property taxes under section 414A.26. 
 26.1      Sec. 21.  [414A.21] [EXTRATERRITORIAL POWERS.] 
 26.2      A city's power to regulate land use or to abate public 
 26.3   health nuisances is the same within noncontiguous areas as 
 26.4   within its primary corporate limits. 
 26.5      Sec. 22.  [414A.22] [SPECIAL RATES FOR WATER, SEWER, AND 
 26.6   OTHER ENTERPRISES.] 
 26.7      Provision of sewer, water, and like enterprise services 
 26.8   within noncontiguous areas is considered provision of service 
 26.9   for special classes of service distinct from the classes of 
 26.10  service provided within the primary corporate limits of the 
 26.11  city, and the city may fix and enforce schedules of rents, 
 26.12  rates, fees, charges, and penalties in excess of those fixed and 
 26.13  enforced within the primary corporate limits.  A city providing 
 26.14  enterprise services within noncontiguous areas must annually 
 26.15  review the cost of them, and must take the steps necessary to 
 26.16  ensure that the current operating costs of the services, 
 26.17  excluding debt service on bonds issued to finance services 
 26.18  within noncontiguous areas, does not exceed revenues realized 
 26.19  from them. 
 26.20     Sec. 23.  [414A.23] [TRANSITION TO PRIMARY CORPORATE 
 26.21  LIMITS.] 
 26.22     An area annexed under sections 414A.18 and 414A.19 ceases 
 26.23  to be a noncontiguous area and becomes a part of the primary 
 26.24  corporate limits of a city when, through annexation of 
 26.25  intervening territory, the two boundaries touch. 
 26.26     Sec. 24.  [414A.24] [ANNEXATION OF MUNICIPAL PROPERTY.] 
 26.27     The city council may begin annexation of property that is 
 26.28  not contiguous to the primary corporate limits but that is owned 
 26.29  by the city by adopting a resolution stating its intent to annex 
 26.30  the property, in place of filing a petition.  The property must 
 26.31  satisfy section 414A.18.  The resolution must contain an 
 26.32  adequate description of the property and fix a date for a public 
 26.33  hearing on the question of annexation.  Notice of the public 
 26.34  hearing must be published once at least ten days before the date 
 26.35  of the hearing.  At the hearing, any resident of the city may 
 26.36  appear and be heard on the question of the desirability of the 
 27.1   annexation.  If the council finds that annexation is in the 
 27.2   public interest, it may adopt an ordinance annexing the 
 27.3   property.  The ordinance may be made effective immediately or on 
 27.4   any specified date within six months after the date of passage. 
 27.5      Sec. 25.  [414A.25] [RECORDING AND REPORTING.] 
 27.6      Annexations made under sections 414A.18 and 414A.19 must be 
 27.7   recorded and reported in the same manner as other annexations 
 27.8   are required to be recorded and reported.  
 27.9      Sec. 26.  [414A.26] [TAX OF NEWLY ANNEXED TERRITORY.] 
 27.10     Subdivision 1.  [APPLICABILITY OF SECTION.] Real property 
 27.11  in territory annexed under this chapter is subject to municipal 
 27.12  taxes as provided in this section. 
 27.13     Subd. 2.  [PRORATED TAXES.] Real property in the newly 
 27.14  annexed territory on the last January 1 before the annexation is 
 27.15  effective is subject to prorated city taxes levied for that 
 27.16  fiscal year as provided in this subdivision.  The amount of city 
 27.17  property taxes that would have been due on the property had it 
 27.18  been within the city for the full fiscal year must be multiplied 
 27.19  by the following fraction:  The denominator is 12 and the 
 27.20  numerator is the number of full calendar months remaining in the 
 27.21  fiscal year, after the day on which the annexation becomes 
 27.22  effective.  The product of the multiplication is the the amount 
 27.23  of prorated taxes due.  The lien for prorated taxes levied on a 
 27.24  parcel of real property attaches to the parcel taxed, as 
 27.25  provided by law, immediately before the fiscal year in which the 
 27.26  annexation is effective.  If the annexation is effective after 
 27.27  April 30 and before September 2, the prorated taxes are due and 
 27.28  payable on October 31 of the year for which the taxes are 
 27.29  levied.  If the annexation becomes effective after September 1 
 27.30  and before the following May 1, the prorated taxes are due and 
 27.31  payable on the first May 31 of the next succeeding fiscal year.  
 27.32  The prorated taxes are subject to collection and foreclosure in 
 27.33  the same manner as other taxes levied for the year in which the 
 27.34  prorated taxes become due. 
 27.35     Subd. 3.  [TAXES IN SUBSEQUENT FISCAL YEARS.] In years 
 27.36  after the year in which an annexation is effective, real 
 28.1   property in the annexed territory is subject to property 
 28.2   taxation on the same basis as is the preexisting territory of 
 28.3   the city. 
 28.4      Subd. 4.  [TRANSFER OF TAX RECORDS.] To levy prorated 
 28.5   property taxes, the city must get from the county a record of 
 28.6   real property in the area being annexed that was listed for 
 28.7   taxation on the January 1 immediately before the year for which 
 28.8   the prorated taxes are levied.  If the effective date of the 
 28.9   annexation falls between January 1 and June 30, the city must 
 28.10  levy taxes for the fiscal year beginning July 1 after the date 
 28.11  of annexation, and get from the county a record of property in 
 28.12  the area being annexed that was listed for taxation as of that 
 28.13  January 1.