as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to water and sanitary sewer districts; 1.3 authorizing the Banning Junction area water and 1.4 sanitary sewer district. 1.5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.6 Section 1. [DEFINITIONS.] 1.7 Subdivision 1. For the purposes of this act, the terms 1.8 defined in this section have the meanings given them. 1.9 Subd. 2. "Banning Junction area water and sanitary sewer 1.10 district" and "district" mean the area over which the Banning 1.11 Junction area water and sanitary sewer board has jurisdiction, 1.12 including the town of Finlayson and the city of Finlayson in 1.13 Pine county and Banning state park, but only that part of the 1.14 township described in the comprehensive plan adopted by the 1.15 board pursuant to section 5. 1.16 Subd. 3. "Water and sanitary sewer board" or "board" means 1.17 the Banning Junction area water and sanitary sewer board 1.18 established for the district as provided in subdivision 2. 1.19 Subd. 4. "Person" means an individual, partnership, 1.20 corporation, limited liability company, cooperative, or other 1.21 organization or entity, public or private. 1.22 Subd. 5. "Local governmental units" or "governmental units" 1.23 means the town of Finlayson, the department of natural 1.24 resources, and the city of Finlayson. 1.25 Subd. 6. "Acquisition" and "betterment" have the meanings 2.1 given in Minnesota Statutes, chapter 475. 2.2 Subd. 7. "Agency" means the Minnesota pollution control 2.3 agency created in Minnesota Statutes, chapter 116. 2.4 Subd. 8. "Sewage" means all liquid or water-carried waste 2.5 products from whatever sources derived, together with any 2.6 groundwater infiltration and surface water as may be present. 2.7 Subd. 9. "Pollution of water" and "sewer system" have the 2.8 meanings given in Minnesota Statutes, section 115.01. 2.9 Subd. 10. "Treatment works" and "disposal system" have the 2.10 meanings given in Minnesota Statutes, section 115.01. 2.11 Subd. 11. "Interceptor" means a sewer and its necessary 2.12 appurtenances, including but not limited to mains, pumping 2.13 stations, and sewage flow-regulating and -measuring stations, 2.14 that is: 2.15 (1) designed for or used to conduct sewage originating in 2.16 more than one local governmental unit; 2.17 (2) designed or used to conduct all or substantially all 2.18 the sewage originating in a single local governmental unit from 2.19 a point of collection in that unit to an interceptor or 2.20 treatment works outside that unit; or 2.21 (3) determined by the board to be a major collector of 2.22 sewage used or designed to serve a substantial area in the 2.23 district. 2.24 Subd. 12. "District disposal system" means any and all 2.25 interceptors or treatment works owned, constructed, or operated 2.26 by the board unless designated by the board as local water and 2.27 sanitary sewer facilities. 2.28 Subd. 13. "Municipality" means any home rule charter or 2.29 statutory city or town. 2.30 Subd. 14. "Total costs of acquisition and betterment" and 2.31 "costs of acquisition and betterment" mean all acquisition and 2.32 betterment expenses permitted to be financed out of stopped bond 2.33 proceeds issued in accordance with section 13, whether or not 2.34 the expenses are in fact financed out of the bond proceeds. 2.35 Subd. 15. "Current costs of acquisition, betterment, and 2.36 debt service" means interest and principal estimated to be due 3.1 during the budget year on bonds issued to finance said 3.2 acquisition and betterment and all other costs of acquisition 3.3 and betterment estimated to be paid during the year from funds 3.4 other than bond proceeds and federal or state grants. 3.5 Subd. 16. "Resident" means the owner of a dwelling located 3.6 in the district and receiving water or sewer service. 3.7 Sec. 2. [WATER AND SANITARY SEWER BOARD.] 3.8 Subdivision 1. [ESTABLISHMENT.] A water and sanitary sewer 3.9 district is established for the town of Finlayson, for the 3.10 Banning state park, under the jurisdiction of the Minnesota 3.11 department of natural resources, and for the city of Finlayson 3.12 in Pine county, to be known as the Banning Junction area water 3.13 and sanitary sewer district. The water and sewer district is 3.14 under the control and management of the Banning Junction area 3.15 water and sanitary sewer board. The board is established as a 3.16 public corporation and political subdivision of the state with 3.17 perpetual succession and all the rights, powers, privileges, 3.18 immunities, and duties that may be validly granted to or imposed 3.19 upon a municipal corporation, as provided in this act. 3.20 Subd. 2. [MEMBERS AND SELECTION.] The board is composed of 3.21 five members selected as follows: the town board shall meet to 3.22 appoint three members, one of whom shall be an elected township 3.23 officer, and two of whom shall be persons served by the system, 3.24 the city shall appoint one member, and the department of natural 3.25 resources shall appoint one member to the water and sanitary 3.26 sewer board and each board member shall have one vote. The 3.27 first terms must be as follows: one for one year, two for two 3.28 years, and two for three years, fixed by lot at the district's 3.29 first meeting. Thereafter, all terms are for three years. 3.30 Subd. 3. [TIME LIMITS FOR SELECTION.] The board members 3.31 must be selected as provided in subdivision 2 within 60 days 3.32 after this act becomes effective. The successor to each board 3.33 member must be selected at any time within 60 days before the 3.34 expiration of the member's term in the same manner as the 3.35 predecessor was selected. A vacancy on the board must be filled 3.36 within 60 days after it occurs. 4.1 Subd. 4. [VACANCIES.] If the office of a board member 4.2 becomes vacant, the vacancy must be filled for the unexpired 4.3 term in the manner provided for selection of the member who 4.4 vacated the office. The office is deemed vacant under the 4.5 conditions specified in Minnesota Statutes, section 351.02. 4.6 Subd. 5. [REMOVAL.] A board member may be removed by the 4.7 unanimous vote of the governing body appointing the member, with 4.8 or without cause, or for malfeasance or nonfeasance in the 4.9 performance of official duties as provided by Minnesota 4.10 Statutes, sections 351.14 to 351.23. 4.11 Subd. 6. [CERTIFICATES OF SELECTION; OATH OF OFFICE.] A 4.12 certificate of selection of every board member selected under 4.13 subdivision 2 stating the term for which selected, must be made 4.14 by the respective town clerks, city administrator, and by the 4.15 commissioner of natural resources. The certificates, with the 4.16 approval appended by other authority, if required, must be filed 4.17 with the secretary of state. Counterparts thereof must be 4.18 furnished to the board member and the secretary of the board. 4.19 Each member shall qualify by taking and subscribing the oath of 4.20 office prescribed by the Minnesota Constitution, article V, 4.21 section 6. The oath, duly certified by the official 4.22 administering the same, must be filed with the secretary of 4.23 state and the secretary of the board. 4.24 Subd. 7. [BOARD MEMBERS' COMPENSATION.] Each board member, 4.25 except the chair, must be paid a per diem compensation of $35 4.26 for meetings and for other services as are specifically 4.27 authorized by the board, not to exceed $1,000 in any one year. 4.28 The chair must be paid a per diem compensation of $45 for 4.29 meetings and for other services specifically authorized by the 4.30 board, not to exceed $1,500 in any one year. All members of the 4.31 board must be reimbursed for all reasonable and necessary 4.32 expenses actually incurred in the performance of duties. 4.33 Sec. 3. [GENERAL PROVISIONS FOR ORGANIZATION AND OPERATION 4.34 OF BOARD.] 4.35 Subdivision 1. [ORGANIZATION; OFFICERS; MEETINGS; SEAL.] 4.36 After the selection and qualification of all board members, they 5.1 shall meet to organize the board at the call of any two board 5.2 members, upon seven days' notice by registered mail to the 5.3 remaining board members, at a time and place within the district 5.4 specified in the notice. A majority of the members shall 5.5 constitute a quorum at that meeting and all other meetings of 5.6 the board, but a lesser number may meet and adjourn from time to 5.7 time and compel the attendance of absent members. At the first 5.8 meeting the board shall select its officers and conduct other 5.9 organizational business as may be necessary. Thereafter the 5.10 board shall meet regularly at the time and place that the board 5.11 designates by resolution. Special meetings may be held at any 5.12 time upon call of the chair or any two members, upon written 5.13 notice sent by mail to each member at least three days before 5.14 the meeting, or upon other notice as the board by resolution may 5.15 provide, or without notice if each member is present or files 5.16 with the secretary a written consent to the meeting either 5.17 before or after the meeting. Except as otherwise provided in 5.18 this act, any action within the authority of the board may be 5.19 taken by the affirmative vote of a majority of the board and may 5.20 be taken by regular or adjourned regular meeting or at a duly 5.21 held special meeting, but in any case only if a quorum is 5.22 present. Meetings of the board must be open to the public. The 5.23 board may adopt a seal, which must be officially and judicially 5.24 noticed, to authenticate instruments executed by its authority, 5.25 but omission of the seal does not affect the validity of any 5.26 instrument. 5.27 Subd. 2. [CHAIR.] The board shall elect a chair from its 5.28 membership. The term of the first chair of the board shall 5.29 expire on January 1, 2001, and the terms of successor chairs 5.30 expire on January 1 of each succeeding year. The chair shall 5.31 preside at all meetings of the board, if present, and shall 5.32 perform all other duties and functions usually incumbent upon 5.33 such an officer, and all administrative functions assigned to 5.34 the chair by the board. The board shall elect a vice-chair from 5.35 its membership to act for the chair during temporary absence or 5.36 disability. 6.1 Subd. 3. [SECRETARY AND TREASURER.] The board shall select 6.2 a person or persons who may, but need not be, a member or 6.3 members of the board, to act as its secretary and treasurer. 6.4 The secretary and treasurer shall hold office at the pleasure of 6.5 the board, subject to the terms of any contract of employment 6.6 that the board may enter into with the secretary or treasurer. 6.7 The secretary shall record the minutes of all meetings of the 6.8 board, and be the custodian of all books and records of the 6.9 board except those that the board entrusts to the custody of a 6.10 designated employee. The treasurer is the custodian of all 6.11 money received by the board except as the board otherwise 6.12 entrusts to the custody of a designated employee. The board may 6.13 appoint a deputy to perform any and all functions of either the 6.14 secretary or the treasurer. A secretary or treasurer who is not 6.15 a member of the board or a deputy of either does not have the 6.16 right to vote. 6.17 Subd. 4. [EXECUTIVE DIRECTOR.] The board may appoint an 6.18 executive director, selected solely upon the basis of training, 6.19 experience, and other qualifications and who shall serve at the 6.20 pleasure of the board and at a compensation to be determined by 6.21 the board. The executive director need not be a resident of the 6.22 district. The executive director may also be selected by the 6.23 board to serve as either secretary or treasurer, or both, of the 6.24 board. The executive director shall attend all meetings of the 6.25 board, but shall not vote, and shall have the following powers 6.26 and duties: 6.27 (1) to see that all resolutions, rules, regulations, or 6.28 orders of the board are enforced; 6.29 (2) to appoint and remove, upon the basis of merit and 6.30 fitness, all subordinate officers and regular employees of the 6.31 board except the secretary and the treasurer and their deputies; 6.32 (3) to present to the board plans, studies, and other 6.33 reports prepared for board purposes and recommend to the board 6.34 for adoption the measures the executive director deems necessary 6.35 to enforce or carry out the powers and the duties of the board, 6.36 or the efficient administration of the affairs of the board; 7.1 (4) to keep the board fully advised as to its financial 7.2 condition, and to prepare and submit to the board and to the 7.3 governing bodies of the local governmental units, the board's 7.4 annual budget and other financial information the board may 7.5 request; 7.6 (5) to recommend to the board for adoption rules and 7.7 regulations the executive director deems necessary for the 7.8 efficient operation of the district disposal system; and 7.9 (6) to perform other duties prescribed by the board. 7.10 Subd. 5. [PUBLIC EMPLOYEES.] The executive director and 7.11 other persons employed by the district are public employees and 7.12 have all the rights and duties conferred on public employees 7.13 under Minnesota Statutes, sections 179A.01 to 179A.25. The 7.14 board may elect to have employees become members of either the 7.15 public employees retirement association or the Minnesota state 7.16 retirement system. The compensation and conditions of 7.17 employment of the employees must be governed by rules applicable 7.18 to state employees in the classified service and to the 7.19 provisions of Minnesota Statutes, chapter 15A. 7.20 Subd. 6. [PROCEDURES.] The board shall adopt resolutions 7.21 or bylaws establishing procedures for board action, personnel 7.22 administration, keeping records, approving claims, authorizing 7.23 or making disbursements, safekeeping funds, and auditing all 7.24 financial operations of the board. 7.25 Subd. 7. [SURETY BONDS AND INSURANCE.] The board may 7.26 procure surety bonds for its officers and employees, in amounts 7.27 deemed necessary to ensure proper performance of their duties 7.28 and proper accounting for funds in their custody. It may 7.29 procure insurance against risks to property and liability of the 7.30 board and its officers, agents, and employees for personal 7.31 injuries or death and property damage and destruction, in 7.32 amounts deemed necessary or desirable, with the force and effect 7.33 stated in Minnesota Statutes, chapter 466. 7.34 Sec. 4. [GENERAL POWERS OF BOARD.] 7.35 Subdivision 1. [SCOPE.] The board has all powers necessary 7.36 or convenient to discharge the duties imposed upon it by law. 8.1 The powers include those specified in this section, but the 8.2 express grant or enumeration of powers does not limit the 8.3 generality or scope of the grant of powers contained in this 8.4 subdivision. 8.5 Subd. 2. [SUIT.] The board may sue or be sued. 8.6 Subd. 3. [CONTRACT.] The board may enter into any contract 8.7 necessary or proper for the exercise of its powers or the 8.8 accomplishment of its purposes. 8.9 Subd. 4. [RULEMAKING.] The board may adopt rules relating 8.10 to its responsibilities and may provide penalties for their 8.11 violation, not exceeding the maximum that may be specified for a 8.12 misdemeanor, and the cost of prosecution may be added to the 8.13 penalties imposed. Any rule prescribing a penalty for violation 8.14 must be published at least once in a newspaper having general 8.15 circulation in the district. The violations may be prosecuted 8.16 before any court in the district having jurisdiction of 8.17 misdemeanors, and every court having misdemeanor jurisdiction 8.18 has jurisdiction of the violations. Any constable or other 8.19 peace officer of any governmental unit in the district may make 8.20 arrests for violations committed anywhere in the district in 8.21 like manner and with like effect as for violations of city 8.22 ordinances or for statutory misdemeanors. Fines collected in 8.23 cases arising under this subdivision must be deposited in the 8.24 treasury of the board, or may be allocated between the board and 8.25 the governmental unit in which the prosecution occurs on a basis 8.26 as the board and the governmental unit agree. 8.27 Subd. 5. [GIFTS, GRANTS, LOANS.] The board may accept 8.28 gifts, apply for and accept grants or loans of money or other 8.29 property from the United States, the state, or any person for 8.30 any of its purposes, enter into any agreement required in 8.31 connection with them, and hold, use, and dispose of the money or 8.32 property in accordance with the terms of the gift, grant, loan, 8.33 or agreement relating to it. With respect to loans or grants of 8.34 funds or real or personal property or other assistance from any 8.35 state or federal government or its agency or instrumentality, 8.36 the board may contract to do and perform all acts and things 9.1 required as a condition or consideration for the gift, grant, or 9.2 loan pursuant to state or federal law or regulations, whether or 9.3 not included among the powers expressly granted to the board in 9.4 this act. 9.5 Subd. 6. [COOPERATIVE ACTION.] The board may act under 9.6 Minnesota Statutes, section 471.59, or any other appropriate law 9.7 providing for joint or cooperative action between governmental 9.8 units. 9.9 Subd. 7. [STUDIES AND INVESTIGATIONS.] The board may 9.10 conduct research studies and programs, collect and analyze data, 9.11 prepare reports, maps, charts, and tables, and conduct all 9.12 necessary hearings and investigations in connection with the 9.13 design, construction, and operation of the district disposal 9.14 system. 9.15 Subd. 8. [EMPLOYEES, TERMS.] The board may employ on terms 9.16 it deems advisable, persons or firms performing engineering, 9.17 legal, or other services of a professional nature; require any 9.18 employee to obtain and file with it an individual bond or 9.19 fidelity insurance policy; and procure insurance in amounts it 9.20 deems necessary against liability of the board or its officers 9.21 or both, for personal injury or death and property damage or 9.22 destruction, with the force and effect stated in Minnesota 9.23 Statutes, chapter 466, and against risks of damage to or 9.24 destruction of any of its facilities, equipment, or other 9.25 property as it deems necessary. 9.26 Subd. 9. [PROPERTY RIGHTS, POWERS.] The board may acquire 9.27 by purchase, lease, condemnation, gift, or grant, any real or 9.28 personal property including positive and negative easements and 9.29 water and air rights, and it may construct, enlarge, improve, 9.30 replace, repair, maintain, and operate any interceptor, 9.31 treatment works, or water facility determined to be necessary or 9.32 convenient for the collection and disposal of sewage in the 9.33 district. Any local governmental unit and the commissioners of 9.34 transportation and natural resources are authorized to convey to 9.35 or permit the use of any of the above-mentioned facilities owned 9.36 or controlled by it, by the board, subject to the rights of the 10.1 holders of any bonds issued with respect to those facilities, 10.2 with or without compensation, without an election or approval by 10.3 any other governmental unit or agency. All powers conferred by 10.4 this subdivision may be exercised both within or without the 10.5 district as may be necessary for the exercise by the board of 10.6 its powers or the accomplishment of its purposes. The board may 10.7 hold, lease, convey, or otherwise dispose of the above-mentioned 10.8 property for its purposes upon the terms and in the manner it 10.9 deems advisable. Unless otherwise provided, the right to 10.10 acquire lands and property rights by condemnation may be 10.11 exercised only in accordance with Minnesota Statutes, sections 10.12 117.011 to 117.232, and shall apply to any property or interest 10.13 in the property owned by any local governmental unit. No 10.14 property devoted to an actual public use at the time, or held to 10.15 be devoted to such a use within a reasonable time, shall be so 10.16 acquired unless a court of competent jurisdiction determines 10.17 that the use proposed by the board is paramount to the existing 10.18 use. Except in the case of property in actual public use, the 10.19 board may take possession of any property on which condemnation 10.20 proceedings have been commenced at any time after the issuance 10.21 of a court order appointing commissioners for its condemnation. 10.22 Subd. 10. [RELATIONSHIP TO OTHER PROPERTIES.] The board 10.23 may construct or maintain its systems or facilities in, along, 10.24 on, under, over, or through public waters, streets, bridges, 10.25 viaducts, and other public rights-of-way without first obtaining 10.26 a franchise from a county or municipality having jurisdiction 10.27 over them. However, the facilities must be constructed and 10.28 maintained in accordance with the ordinances and resolutions of 10.29 the county or municipality relating to constructing, installing, 10.30 and maintaining similar facilities on public properties and must 10.31 not unnecessarily obstruct the public use of those rights-of-way. 10.32 Subd. 11. [DISPOSAL OF PROPERTY.] The board may sell, 10.33 lease, or otherwise dispose of any real or personal property 10.34 acquired by it which is no longer required for accomplishment of 10.35 its purposes. The property may be sold in the manner provided 10.36 by Minnesota Statutes, section 469.065, insofar as practical. 11.1 The board may give notice of sale as it deems appropriate. When 11.2 the board determines that any property or any part of the 11.3 district disposal system acquired from a local governmental unit 11.4 without compensation is no longer required but is required as a 11.5 local facility by the governmental unit from which it was 11.6 acquired, the board may by resolution transfer it to that 11.7 governmental unit. 11.8 Subd. 12. [AGREEMENTS WITH OTHER GOVERNMENTAL UNITS.] The 11.9 board may contract with the United States or any agency thereof, 11.10 any state or agency thereof, or any regional public planning 11.11 body in the state with jurisdiction over any part of the 11.12 district, or any other municipal or public corporation, or 11.13 governmental subdivision or agency or political subdivision in 11.14 any state, for the joint use of any facility owned by the board 11.15 or such entity, for the operation by that entity of any system 11.16 or facility of the board, or for the performance on the board's 11.17 behalf of any service, including but not limited to planning, on 11.18 terms as may be agreed upon by the contracting parties. Unless 11.19 designated by the board as a local water and sanitary sewer 11.20 facility, any treatment works or interceptor jointly used, or 11.21 operated on behalf of the board, as provided in this 11.22 subdivision, is deemed to be operated by the board for purposes 11.23 of including those facilities in the district disposal system. 11.24 Sec. 5. [COMPREHENSIVE PLAN.] 11.25 Subdivision 1. [BOARD PLAN AND PROGRAM.] The board shall 11.26 adopt a comprehensive plan for the collection, treatment, and 11.27 disposal of sewage in the district for a designated period the 11.28 board deems proper and reasonable. The board shall prepare and 11.29 adopt subsequent comprehensive plans for the collection, 11.30 treatment, and disposal of sewage in the district for each 11.31 succeeding designated period as the board deems proper and 11.32 reasonable. The first plan, as modified by the board, and any 11.33 subsequent plan shall take into account the preservation and 11.34 best and most economic use of water and other natural resources 11.35 in the area; the preservation, use, and potential for use of 11.36 lands adjoining waters of the state to be used for the disposal 12.1 of sewage; and the impact the disposal system will have on 12.2 present and future land use in the area affected. The plans 12.3 shall include the general location of needed interceptors and 12.4 treatment works, a description of the area that is to be served 12.5 by the various interceptors and treatment works, a long-range 12.6 capital improvements program, and any other details as the board 12.7 deems appropriate. In developing the plans, the board shall 12.8 consult with persons designated for the purpose by governing 12.9 bodies of any governmental unit within the district to represent 12.10 the entities and shall consider the data, resources, and input 12.11 offered to the board by the entities and any planning agency 12.12 acting on behalf of one or more of the entities. Each plan, 12.13 when adopted, must be followed in the district and may be 12.14 revised as often as the board deems necessary. 12.15 Subd. 2. [COMPREHENSIVE PLANS; HEARING.] Before adopting 12.16 any subsequent comprehensive plan, the board shall hold a public 12.17 hearing on the proposed plan at a time and place in the district 12.18 that it selects. The hearing may be continued from time to 12.19 time. Not less than 45 days before the hearing, the board shall 12.20 publish notice of the hearing in a newspaper having general 12.21 circulation in the district, stating the date, time, and place 12.22 of the hearing, and the place where the proposed plan may be 12.23 examined by any interested person. At the hearing, all 12.24 interested persons must be permitted to present their views on 12.25 the plan. 12.26 Subd. 3. [GOVERNMENTAL UNIT PLANS AND PROGRAMS; 12.27 COORDINATION WITH BOARD'S RESPONSIBILITIES.] Once the board's 12.28 plan is adopted, no construction project involving the 12.29 construction of new sewers or other disposal facilities may be 12.30 undertaken by the local governmental unit unless its governing 12.31 body shall first find the project to be in accordance with the 12.32 governmental unit's comprehensive plan and program as approved 12.33 by the board. Before approval by the board of the comprehensive 12.34 plan and program of any local governmental unit in the district, 12.35 no water and sanitary sewer construction project may be 12.36 undertaken by the governmental unit unless approval of the 13.1 project is first secured from the board as to those features of 13.2 the project affecting the board's responsibilities as determined 13.3 by the board. 13.4 Sec. 6. [POWERS TO ISSUE OBLIGATIONS AND IMPOSE SPECIAL 13.5 ASSESSMENTS.] 13.6 The Banning Junction area water and sanitary sewer board, 13.7 in order to implement the powers granted under this act to 13.8 establish, maintain, and administer the Banning Junction area 13.9 water and sanitary sewer district, may issue obligations and 13.10 impose special assessments against benefited property within the 13.11 limits of the district benefited by facilities constructed under 13.12 this act in the manner provided for local governments by 13.13 Minnesota Statutes, chapter 429. 13.14 Sec. 7. [SYSTEM EXPANSION; APPLICATION TO CITIES.] 13.15 The authority of the water and sanitary sewer board to 13.16 establish water or sewer or combined water and sewer systems 13.17 under this section extends to areas within the Banning Junction 13.18 area water and sanitary sewer district organized into cities 13.19 when requested by resolution of the governing body of the 13.20 affected city or when ordered by the Minnesota pollution control 13.21 agency after notice and hearing. For the purpose of any 13.22 petition filed or special assessment levied with respect to any 13.23 system, the entire area to be served within a city must be 13.24 treated as if it were owned by a single person, and the 13.25 governing body shall exercise all the rights and be subject to 13.26 all the duties of an owner of the area, and shall have power to 13.27 provide for the payment of all special assessments and other 13.28 charges imposed upon the area with respect to the system by the 13.29 appropriation of money, the collection of service charges, or 13.30 the levy of taxes, which shall be subject to no limitation of 13.31 rate or amount. 13.32 Sec. 8. [SEWAGE COLLECTION AND DISPOSAL; POWERS.] 13.33 Subdivision 1. [POWERS.] In addition to all other powers 13.34 conferred upon the board in this act, it has the powers 13.35 specified in this section. 13.36 Subd. 2. [DISCHARGE OF TREATED SEWAGE.] The board may 14.1 discharge the effluent from any treatment works operated by it 14.2 into any waters of the state, subject to approval of the agency 14.3 if required and in accordance with any effluent or water quality 14.4 standards lawfully adopted by the agency, any interstate agency, 14.5 or any federal agency having jurisdiction. 14.6 Subd. 3. [UTILIZATION OF DISTRICT SYSTEM.] The board may 14.7 require any person or local governmental unit to provide for the 14.8 discharge of any sewage, directly or indirectly, into the 14.9 district disposal system, or to connect any disposal system or a 14.10 part of it with the district disposal system wherever reasonable 14.11 opportunity for connection is provided; may regulate the manner 14.12 in which the connections are made; may require any person or 14.13 local governmental unit discharging sewage into the disposal 14.14 system to provide preliminary treatment for it; may prohibit the 14.15 discharge into the district disposal system of any substance 14.16 that it determines will or may be harmful to the system or any 14.17 persons operating it; and may require any local governmental 14.18 unit to discontinue the acquisition, betterment, or operation of 14.19 any facility for the unit's disposal system wherever and so far 14.20 as adequate service is or will be provided by the district 14.21 disposal system. 14.22 Subd. 4. [SYSTEM OF COST RECOVERY TO COMPLY WITH 14.23 APPLICABLE REGULATIONS.] Any charges, connection fees, or other 14.24 cost-recovery techniques imposed on persons discharging sewage 14.25 directly or indirectly into the district disposal system must 14.26 comply with applicable state and federal law, including state 14.27 and federal regulations governing grant applications. 14.28 Sec. 9. [BUDGET.] 14.29 The board shall prepare and adopt, on or before October 1 14.30 in 1999 and each year thereafter, a budget showing for the 14.31 following calendar year or other fiscal year determined by the 14.32 board, sometimes referred to in this act as the budget year, 14.33 estimated receipts of money from all sources, including but not 14.34 limited to payments by each local governmental unit, federal or 14.35 state grants, taxes on property, and funds on hand at the 14.36 beginning of the year, and estimated expenditures for: 15.1 (1) costs of operation, administration, and maintenance of 15.2 the district disposal system; 15.3 (2) cost of acquisition and betterment of the district 15.4 disposal system; and 15.5 (3) debt service, including principal and interest, on 15.6 general obligation bonds and certificates issued pursuant to 15.7 section 13, and any money judgments entered by a court of 15.8 competent jurisdiction. Expenditures within these general 15.9 categories, and any other categories as the board may from time 15.10 to time determine, must be itemized in detail as the board 15.11 prescribes. The board and its officers, agents, and employees 15.12 shall not spend money for any purpose other than debt service 15.13 without having set forth the expense in the budget nor in excess 15.14 of the amount set forth in the budget for it. No obligation to 15.15 make an expenditure of the above-mentioned type is enforceable 15.16 except as the obligation of the person or persons incurring it. 15.17 The board may amend the budget at any time by transferring from 15.18 one purpose to another any sums except money for debt service 15.19 and bond proceeds or by increasing expenditures in any amount by 15.20 which actual cash receipts during the budget year exceed the 15.21 total amounts designated in the original budget. The creation 15.22 of any obligation under section 13 or the receipt of any federal 15.23 or state grant is a sufficient budget designation of the 15.24 proceeds for the purpose for which it is authorized, and of the 15.25 tax or other revenue pledged to pay the obligation and interest 15.26 on it, whether or not specifically included in any annual budget. 15.27 Sec. 10. [ALLOCATION OF COSTS.] 15.28 Subdivision 1. [DEFINITION OF CURRENT COSTS.] The 15.29 estimated cost of administration, operation, maintenance, and 15.30 debt service of the district disposal system to be paid by the 15.31 board in each fiscal year and the estimated costs of acquisition 15.32 and betterment of the system that are to be paid during the year 15.33 from funds other than state or federal grants and bond proceeds 15.34 and all other previously unallocated payments made by the board 15.35 pursuant to this act to be allocated in the fiscal year are 15.36 referred to as current costs and must be allocated by the board 16.1 as provided in subdivision 2 in the budget for that year. 16.2 Subd. 2. [METHOD OF ALLOCATION OF CURRENT COSTS.] Current 16.3 costs must be allocated in the district on an equitable basis as 16.4 the board may determine by resolution to be in the best 16.5 interests of the district. The adoption or revision of any 16.6 method of allocation used by the board must be by the 16.7 affirmative vote of at least two-thirds of the members of the 16.8 board. 16.9 Sec. 11. [TAX LEVIES.] 16.10 To accomplish any duty imposed on it the board may, in 16.11 addition to the powers granted in this act and in any other law 16.12 or charter, exercise the powers granted any municipality by 16.13 Minnesota Statutes, chapters 117, 412, 429, 475, sections 16.14 115.46, 444.075, and 471.59, with respect to the area in the 16.15 district. The board may levy taxes upon all taxable property in 16.16 the district for all or a part of the amount payable to the 16.17 board, pursuant to section 10, to be assessed and extended as a 16.18 tax upon that taxable property by the county auditor for the 16.19 next calendar year, free from any limitation of rate or amount 16.20 imposed by law or charter. The tax must be collected and 16.21 remitted in the same manner as other general taxes. 16.22 Sec. 12. [PUBLIC HEARING AND SPECIAL ASSESSMENTS.] 16.23 Subdivision 1. [PUBLIC HEARING REQUIREMENT ON SPECIFIC 16.24 PROJECT.] Before the board orders any project involving the 16.25 acquisition or betterment of any interceptor or treatment works, 16.26 all or a part of the cost of which will be allocated pursuant to 16.27 section 10 as current costs, the board shall hold a public 16.28 hearing on the proposed project. The hearing must be held 16.29 following two publications in a newspaper having general 16.30 circulation in the district, stating the time and place of the 16.31 hearing, the general nature and location of the project, the 16.32 estimated total cost of acquisition and betterment, that portion 16.33 of costs estimated to be paid out of federal and state grants, 16.34 and that portion of costs estimated to be allocated. The 16.35 estimates must be best available at the time of the meeting and 16.36 if costs exceed the estimate, the project cannot proceed until 17.1 an additional public hearing is held, with notice as required at 17.2 the initial meeting. The two publications must be a week apart 17.3 and the hearing at least three days after the last publication. 17.4 Not less than 45 days before the hearing, notice of the hearing 17.5 must also be mailed to each clerk of all local governmental 17.6 units in the district, but failure to give mailed notice or any 17.7 defects in the notice does not invalidate the proceedings. The 17.8 project may include all or part of one or more interceptors or 17.9 treatment works. No hearing may be held on any project unless 17.10 the project is within the area covered by the comprehensive plan 17.11 adopted by the board pursuant to section 5 except that the 17.12 hearing may be held simultaneously with a hearing on a 17.13 comprehensive plan. A hearing is not required with respect to a 17.14 project, no part of the costs of which are to be allocated as 17.15 the current costs of acquisition, betterment, and debt service. 17.16 Subd. 2. [NOTICE TO BENEFITED PROPERTY OWNERS.] If the 17.17 board proposes to assess against benefited property within the 17.18 district all or any part of the allocable costs of the project 17.19 as provided in subdivision 5, the board shall, not less than two 17.20 weeks before the hearing provided for in subdivision 1, cause 17.21 mailed notice of the hearing to be given to the owner of each 17.22 parcel within the area proposed to be specially assessed and 17.23 shall also give two weeks' published notice of the hearing. The 17.24 notice of hearing must contain the same information provided in 17.25 the notice published by the board pursuant to subdivision 1, and 17.26 a description of the area proposed to be assessed. For the 17.27 purpose of giving mailed notice, owners are those shown to be on 17.28 the records of the county auditor or, in any county where tax 17.29 statements are mailed by the county treasurer, on the records of 17.30 the county treasurer; but other appropriate records may be used 17.31 for this purpose. For properties that are tax exempt or subject 17.32 to taxation on a gross earnings basis and not listed on the 17.33 records of the county auditor or the county treasurer, the 17.34 owners must be ascertained by any practicable means and mailed 17.35 notice given them as herein provided. Failure to give mailed 17.36 notice or any defects in the notice does not invalidate the 18.1 proceedings of the board. 18.2 Subd. 3. [BOARD PROCEEDINGS PERTAINING TO HEARING.] Before 18.3 adoption of the resolution calling for a hearing under this 18.4 section, the board shall secure from the district engineer or 18.5 some other competent person of the board's selection a report 18.6 advising it in a preliminary way as to whether the proposed 18.7 project is feasible and whether it should be made as proposed or 18.8 in connection with some other project and the estimated costs of 18.9 the project as recommended. No error or omission in the report 18.10 invalidates the proceeding. The board may also take other steps 18.11 before the hearing, as will in its judgment provide helpful 18.12 information in determining the desirability and feasibility of 18.13 the project, including but not limited to preparation of plans 18.14 and specifications and advertisement for bids on them. The 18.15 hearing may be adjourned from time to time and a resolution 18.16 ordering the project may be adopted at any time within six 18.17 months after the date of hearing. In ordering the project the 18.18 board may reduce but not increase the extent of the project as 18.19 stated in the notice of hearing and shall find that the project 18.20 as ordered is in accordance with the comprehensive plan and 18.21 program adopted by the board pursuant to section 5. 18.22 Subd. 4. [EMERGENCY ACTION.] If the board by resolution 18.23 adopted by the affirmative vote of not less than two-thirds of 18.24 its members determines that an emergency exists requiring the 18.25 immediate purchase of materials or supplies or the making of 18.26 emergency repairs, it may order the purchase of those supplies 18.27 and materials and the making of the repairs before any hearing 18.28 required under this section, provided that the board shall set 18.29 as early a date as practicable for the hearing at the time it 18.30 declares the emergency. All other provisions of this section 18.31 must be followed in giving notice of and conducting the 18.32 hearing. Nothing herein may be construed as preventing the 18.33 board or its agents from purchasing maintenance supplies or 18.34 incurring maintenance costs without regard to the requirements 18.35 of this section. 18.36 Subd 5. [POWER OF THE BOARD TO SPECIALLY ASSESS.] The 19.1 board may specially assess all or any part of the costs of 19.2 acquisition and betterment as herein provided, of any project 19.3 ordered pursuant to this section. The special assessments must 19.4 be levied in accordance with the provisions of Minnesota 19.5 Statutes, sections 429.051 to 429.081, except as otherwise 19.6 provided in this subdivision. No other provisions of Minnesota 19.7 Statutes, chapter 429, apply. For purposes of levying the 19.8 special assessments, the hearing on the project required in 19.9 subdivision 1 serves as the hearing on the making of the 19.10 original improvement provided for by Minnesota Statutes, section 19.11 429.051. The area assessed may be less than but may not exceed 19.12 the area proposed to be assessed as stated in the notice of 19.13 hearing on the project provided for in subdivision 2. 19.14 Sec. 13. [BONDS, CERTIFICATES, AND OTHER OBLIGATIONS.] 19.15 Subdivision 1. [BUDGET ANTICIPATION CERTIFICATES OF 19.16 INDEBTEDNESS.] At any time after adoption of its annual budget 19.17 and in anticipation of the collection of tax and other revenues 19.18 estimated and set forth by the board in the budget, except in 19.19 the case of deficiency taxes levied under this subdivision and 19.20 taxes levied for the payment of certificates issued under 19.21 subdivision 2, the board may, by resolution, authorize the 19.22 issuance, negotiation, and sale, in accordance with subdivision 19.23 4 in the form and manner and upon terms it determines, of its 19.24 negotiable general obligation certificates of indebtedness in 19.25 aggregate principal amounts not exceeding 50 percent of the 19.26 total amount of tax collections and other revenues, and maturing 19.27 not later than three months after the close of the budget year 19.28 in which issued. The proceeds of the sale of the certificates 19.29 must be used solely for the purposes for which the tax 19.30 collections and other revenues are to be expended pursuant to 19.31 the budget. 19.32 All the tax collections and other revenues included in the 19.33 budget for the budget year, after the expenditure of the tax 19.34 collections and other revenues in accordance with the budget, 19.35 must be irrevocably pledged and appropriated to a special fund 19.36 to pay the principal and interest on the certificates when due. 20.1 If for any reason the tax collections and other revenues are 20.2 insufficient to pay the certificates and interest when due, the 20.3 board shall levy a tax in the amount of the deficiency on all 20.4 taxable property in the district and shall appropriate this 20.5 amount when received to the special fund. 20.6 Subd. 2. [EMERGENCY CERTIFICATES OF INDEBTEDNESS.] If in 20.7 any budget year the receipts of tax and other revenues should 20.8 for some unforeseen cause become insufficient to pay the board's 20.9 current expenses, or if any public emergency should subject it 20.10 to the necessity of making extraordinary expenditures, the board 20.11 may by resolution authorize the issuance, negotiation, and sale, 20.12 in accordance with subdivision 4 in the form and manner and upon 20.13 the terms and conditions it determines, of its negotiable 20.14 general obligation certificates of indebtedness in an amount 20.15 sufficient to meet the deficiency. The board shall levy on all 20.16 taxable property in the district a tax sufficient to pay the 20.17 certificates and interest on the certificates and shall 20.18 appropriate all collections of the tax to a special fund created 20.19 for the payment of the certificates and the interest on them. 20.20 Certificates issued under this subdivision mature not later than 20.21 April 1 in the year following the year in which the tax is 20.22 collectible. 20.23 Subd. 3. [GENERAL OBLIGATION BONDS.] The board may by 20.24 resolution authorize the issuance of general obligation bonds 20.25 for the acquisition or betterment of any part of the district 20.26 disposal system, including but without limitation the payment of 20.27 interest during construction and for a reasonable period 20.28 thereafter, or for the refunding of outstanding bonds, 20.29 certificates of indebtedness, or judgments. The board shall 20.30 pledge its full faith and credit and taxing power for the 20.31 payment of the bonds and shall provide for the issuance and sale 20.32 and for the security of the bonds in the manner provided in 20.33 Minnesota Statutes, chapter 475. The board has the same powers 20.34 and duties as a municipality issuing bonds under that law, 20.35 except that no election is required and the debt limitations of 20.36 Minnesota Statutes, chapter 475, do not apply to the bonds. The 21.1 board may also pledge for the payment of the bonds and deduct 21.2 from the amount of any tax levy required under Minnesota 21.3 Statutes, section 475.61, subdivision 1, and any revenues 21.4 receivable under any state and federal grants anticipated by the 21.5 board and may covenant to refund the bonds if and when and to 21.6 the extent that for any reason the revenues, together with other 21.7 funds available and appropriated for that purpose, are not 21.8 sufficient to pay all principal and interest due or about to 21.9 become due, provided that the revenues have not been anticipated 21.10 by the issuance of certificates under subdivision 1. 21.11 Subd. 4. [MANNER OF SALE AND ISSUANCE OF CERTIFICATES.] 21.12 Certificates issued under subdivisions 1 and 2 may be issued and 21.13 sold by negotiation, without public sale, and may be sold at a 21.14 price equal to the percentage of the par value of the 21.15 certificates, plus accrued interest, and bearing interest at the 21.16 rate determined by the board. No election is required to 21.17 authorize the issuance of the certificates. The certificates 21.18 must bear the same rate of interest after maturity as before and 21.19 the full faith and credit and taxing power of the board must be 21.20 pledged to the payment of the certificates. 21.21 Sec. 14. [DEPOSITORIES.] 21.22 The board shall designate one or more national or state 21.23 banks, or trust companies authorized to do a banking business, 21.24 as official depositories for money of the board, and shall 21.25 require the treasurer to deposit all or a part of the money in 21.26 those institutions. The designation must be in writing and must 21.27 set forth all the terms and conditions upon which the deposits 21.28 are made, and must be signed by the chair and treasurer and made 21.29 a part of the minutes of the board. 21.30 Sec. 15. [MONEY, ACCOUNTS, AND INVESTMENTS.] 21.31 Subdivision 1. [RECEIPT AND APPLICATION.] Money received 21.32 by the board must be deposited or invested by the treasurer and 21.33 disposed of as the board may direct in accordance with its 21.34 budget; provided that any money that has been pledged or 21.35 dedicated by the board to the payment of obligations or interest 21.36 on the obligations or expenses incident thereto, or for any 22.1 other specific purpose authorized by law, must be paid by the 22.2 treasurer into the fund to which it has been pledged. 22.3 Subd. 2. [FUNDS AND ACCOUNTS.] (a) The board's treasurer 22.4 shall establish funds and accounts as may be necessary or 22.5 convenient to handle the receipts and disbursements of the board 22.6 in an orderly fashion. 22.7 (b) The funds and accounts must be audited annually by a 22.8 certified public accountant at the expense of the district. 22.9 Subd. 3. [DEPOSIT AND INVESTMENT.] The money on hand in 22.10 those funds and accounts may be deposited in the official 22.11 depositories of the board or invested as provided in this 22.12 subdivision. Any amount not currently needed or required by law 22.13 to be kept in cash on deposit may be invested in obligations 22.14 authorized for the investment of municipal sinking funds by 22.15 Minnesota Statutes, section 475.66. The money may also be held 22.16 under certificates of deposit issued by any official depository 22.17 of the board. 22.18 Subd. 4. [BOND PROCEEDS.] The use of proceeds of all bonds 22.19 issued by the board for the acquisition and betterment of the 22.20 district disposal system, and the use, other than investment, of 22.21 all money on hand in any sinking fund or funds of the board, is 22.22 governed by the provisions of Minnesota Statutes, chapter 475, 22.23 the provisions of this act, and the provisions of resolutions 22.24 authorizing the issuance of the bonds. When received, the bond 22.25 proceeds must be transferred to the treasurer of the board for 22.26 safekeeping, investment, and payment of the costs for which they 22.27 were issued. 22.28 Subd. 5. [AUDIT.] The board shall provide for and pay the 22.29 cost of an independent annual audit of its official books and 22.30 records by the state auditor or a public accountant authorized 22.31 to perform that function under Minnesota Statutes, chapter 6. 22.32 Sec. 16. [SERVICE CONTRACTS WITH GOVERNMENTAL ENTITIES 22.33 OUTSIDE THE JURISDICTION OF THE BOARD.] 22.34 (a) The board may contract with the United States or any 22.35 agency of the federal government, any state or its agency, or 22.36 any municipal or public corporation, governmental subdivision or 23.1 agency or political subdivision in any state, outside the 23.2 jurisdiction of the board, for furnishing services to those 23.3 entities, including but not limited to planning for and the 23.4 acquisition, betterment, operation, administration, and 23.5 maintenance of any or all interceptors, treatment works, and 23.6 local water and sanitary sewer facilities. The board may 23.7 include as one of the terms of the contract that the entity must 23.8 pay to the board an amount agreed upon as a reasonable estimate 23.9 of the proportionate share properly allocable to the entity of 23.10 costs of acquisition, betterment, and debt service previously 23.11 allocated in the district. When payments are made by entities 23.12 to the board, they must be applied in reduction of the total 23.13 amount of costs thereafter allocated in the district, on an 23.14 equitable basis as the board deems to be in the best interests 23.15 of the district, applying so far as practicable and appropriate 23.16 the criteria set forth in section 10, subdivision 2. A 23.17 municipality in the state of Minnesota may enter into a contract 23.18 and perform all acts and things required as a condition or 23.19 consideration therefor consistent with the purposes of this act, 23.20 whether or not included among the powers otherwise granted to 23.21 the municipality by law or charter. 23.22 (b) The board shall contract with a qualified entity to 23.23 make necessary inspections on the district facilities, and to 23.24 otherwise process or assist in processing any of the work of the 23.25 district. 23.26 Sec. 17. [CONTRACTS FOR CONSTRUCTION, MATERIALS, SUPPLIES, 23.27 AND EQUIPMENT.] 23.28 When the board orders a project involving the acquisition 23.29 or betterment of a part of the district disposal system, it 23.30 shall cause plans and specifications of the project to be made, 23.31 or if previously made, to be modified, if necessary, and to be 23.32 approved by the agency if required, and after any required 23.33 approval by the agency, one or more contracts for work and 23.34 materials called for by the plans and specification may be 23.35 awarded as provided in Minnesota Statutes, section 471.345. 23.36 Sec. 18. [PROPERTY EXEMPT FROM TAXATION.] 24.1 Any properties, real or personal, owned, leased, 24.2 controlled, used, or occupied by the water and sanitary sewer 24.3 board for any purpose under this act are declared to be 24.4 acquired, owned, leased, controlled, used, and occupied for 24.5 public, governmental, and municipal purposes, and are exempt 24.6 from taxation by the state or any political subdivision of the 24.7 state, provided that the properties are subject to special 24.8 assessments levied by a political subdivision for a local 24.9 improvement in amounts proportionate to and not exceeding the 24.10 special benefit received by the properties from the 24.11 improvement. No possible use of any properties in any manner 24.12 different from their use as part of a disposal system at the 24.13 time may be considered in determining the special benefit 24.14 received by the properties. All assessments are subject to 24.15 final approval by the board, whose determination of the benefits 24.16 is conclusive upon the political subdivision levying the 24.17 assessment. 24.18 Sec. 19. [RELATION TO EXISTING LAWS.] 24.19 The provisions of this act must be given full effect 24.20 notwithstanding the provisions of any law or charter 24.21 inconsistent with this act. The powers conferred on the board 24.22 under this act do not in any way diminish or supersede the 24.23 powers conferred on the agency by Minnesota Statutes, chapters 24.24 115 to 116. 24.25 Sec. 20. [EFFECTIVE DATE.] 24.26 This act is effective as to the city and the town of 24.27 Finlayson separately the day after the certificate of approval 24.28 of the governing body of each is filed as provided in Minnesota 24.29 Statutes, section 645.021, subdivision 3.