1.1                          A bill for an act 
  1.2             relating to sanitary districts; establishing the 
  1.3             Farwell-Kensington sanitary district; authorizing tax 
  1.4             levies. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [LEGISLATIVE PURPOSE AND POLICY.] 
  1.7      The legislature determines that in the cities of Farwell 
  1.8   and Kensington there are serious problems of water pollution and 
  1.9   disposal of sewage which cannot be effectively or economically 
  1.10  dealt with by existing government units under existing laws.  
  1.11  The legislature, therefore, declares that for the protection of 
  1.12  the public health, safety, and welfare of these areas, for the 
  1.13  preservation and best use of waters and other natural resources 
  1.14  of the state in the area, for the prevention, control, and 
  1.15  abatement of water pollution in the area, and for the efficient 
  1.16  and economic collection, treatment, and disposal of sewage, it 
  1.17  is necessary to establish in Minnesota for said area a sanitary 
  1.18  sewer board assigned the responsibility of carrying on a 
  1.19  continuous long-range program of planning with respect thereto 
  1.20  and given the authority to take over, acquire, construct, 
  1.21  better, administer, operate, and maintain any and all 
  1.22  interceptors and treatment works needed for the collection, 
  1.23  treatment, and disposal of sewage in such area, as well as local 
  1.24  sanitary sewer facilities over which the board assumes 
  1.25  responsibility at the request of any local government unit. 
  2.1      Sec. 2.  [DEFINITIONS.] 
  2.2      Subdivision 1.  [APPLICATION.] The terms defined in this 
  2.3   section shall have the meaning given them unless otherwise 
  2.4   provided or indicated by the context. 
  2.5      Subd. 2.  [ACQUISITION AND BETTERMENT.] "Acquisition" and 
  2.6   "betterment" shall have the meanings given them in Minnesota 
  2.7   Statutes, chapter 475. 
  2.8      Subd. 3.  [AGENCY.] "Agency" means the Minnesota pollution 
  2.9   control agency created and established by Minnesota Statutes, 
  2.10  chapter 116. 
  2.11     Subd. 4.  [AGRICULTURAL PROPERTY.] "Agricultural property" 
  2.12  means land as is classified agricultural land within the meaning 
  2.13  of Minnesota Statutes, section 273.13, subdivision 23. 
  2.14     Subd. 5.  [CURRENT COSTS OF ACQUISITION, BETTERMENT, AND 
  2.15  DEBT SERVICE.] "Current costs of acquisition, betterment, and 
  2.16  debt service" means interest and principal estimated to be due 
  2.17  during the budget year on bonds issued to finance said 
  2.18  acquisition and betterment and all other costs of acquisition 
  2.19  and betterment estimated to be paid during such year from funds 
  2.20  other than bond proceeds and federal or state grants. 
  2.21     Subd. 6.  [DISTRICT DISPOSAL SYSTEM.] "District disposal 
  2.22  system" means any and all of the interceptors or treatment works 
  2.23  owned, constructed, or operated by the board unless designated 
  2.24  by the board as local sanitary sewer facilities. 
  2.25     Subd. 7.  [FARWELL-KENSINGTON SANITARY DISTRICT AND 
  2.26  DISTRICT.] "Farwell-Kensington sanitary district" and "district" 
  2.27  mean the area over which the sanitary sewer board has 
  2.28  jurisdiction which shall include all that part of Douglas county 
  2.29  and Pope county described as follows, to wit: 
  2.30     (1) all of the land within the corporate limits of the city 
  2.31  of Farwell; 
  2.32     (2) all of the land within the corporate limits of the city 
  2.33  of Kensington. 
  2.34     Subd. 8.  [INTERCEPTOR.] "Interceptor" means any sewer and 
  2.35  necessary appurtenances thereto, including but not limited to, 
  2.36  mains, pumping stations, and sewage flow regulating and 
  3.1   measuring stations, which is designed for or used to conduct 
  3.2   sewage originating in more than one local government unit, or 
  3.3   which is designed or used to conduct all or substantially all 
  3.4   the sewage originating in a single local government unit from a 
  3.5   point of collection in that unit to an interceptor or treatment 
  3.6   works outside that unit, or which is determined by the board to 
  3.7   be a major collector of sewage used or designed to serve a 
  3.8   substantial area in the district. 
  3.9      Subd. 9.  [LOCAL GOVERNMENT UNIT OR GOVERNMENT 
  3.10  UNIT.] "Local government unit" or "government unit" means any 
  3.11  municipal or public corporation or governmental or political 
  3.12  subdivision or agency located in whole or in part in the 
  3.13  district, authorized by law to provide for the collection and 
  3.14  disposal of sewage. 
  3.15     Subd. 10.  [LOCAL SANITARY SEWER FACILITIES.] "Local 
  3.16  sanitary sewer facilities" means all or any part of any disposal 
  3.17  system in the district other than the district disposal system. 
  3.18     Subd. 11.  [MUNICIPALITY.] "Municipality" means any city or 
  3.19  town located in whole or in part in the district. 
  3.20     Subd. 12.  [PERSON.] "Person" means any individual, 
  3.21  partnership, corporation, cooperative, or other organization or 
  3.22  entity, public or private. 
  3.23     Subd. 13.  [POLLUTION AND SEWAGE SYSTEM.] "Pollution" and 
  3.24  "sewage system" shall have the meanings given them in Minnesota 
  3.25  Statutes, section 115.01. 
  3.26     Subd. 14.  [SANITARY SEWER BOARD OR BOARD.] "Sanitary sewer 
  3.27  board" or "board" means the sanitary sewer board established for 
  3.28  the Farwell-Kensington sanitary district as provided in section 
  3.29  3. 
  3.30     Subd. 15.  [SEWAGE.] "Sewage" means all liquid or 
  3.31  water-carried waste products from whatever sources derived, 
  3.32  together with such groundwater infiltration and surface water as 
  3.33  may be present. 
  3.34     Subd. 16.  [TOTAL COSTS OF ACQUISITION AND BETTERMENT AND 
  3.35  COSTS OF ACQUISITION AND BETTERMENT.] "Total costs of 
  3.36  acquisition and betterment" and "costs of acquisition and 
  4.1   betterment" mean all acquisition and betterment expenses which 
  4.2   are permitted to be financed out of bond proceeds issued in 
  4.3   accordance with section 13, subdivision 4, whether or not such 
  4.4   expenses are in fact financed out of such bond proceeds. 
  4.5      Subd. 17.  [TREATMENT WORKS AND DISPOSAL SYSTEM.] 
  4.6   "Treatment works" and "disposal system" shall have the meanings 
  4.7   given them in Minnesota Statutes, section 115.01. 
  4.8      Sec. 3.  [SANITARY SEWER BOARD.] 
  4.9      Subdivision 1.  [ESTABLISHMENT.] A sanitary sewer board 
  4.10  with jurisdiction in the Farwell-Kensington sanitary district is 
  4.11  established as a public corporation and political subdivision of 
  4.12  the state with perpetual succession and all the rights, powers, 
  4.13  privileges, immunities, and duties which may be validly granted 
  4.14  to or imposed upon a municipal corporation, as provided in this 
  4.15  act. 
  4.16     Subd. 2.  [NUMBER, TERMS, AND ELECTION OF MEMBERS.] The 
  4.17  board has five members, two elected at large from the city of 
  4.18  Farwell and three elected at large from the city of Kensington.  
  4.19  The terms of the members are four years and until a successor is 
  4.20  qualified, except that for the first election in 1998 one at 
  4.21  large seat from Farwell and one from Kensington shall be for two 
  4.22  years and until a successor is qualified.  The short term shall 
  4.23  be determined by lot and designated before filings open by the 
  4.24  municipal clerks of the two cities.  The election shall be 
  4.25  conducted by the municipal clerks as provided in Minnesota 
  4.26  Statutes, chapter 205, at the same time as the city council 
  4.27  elections are held.  Vacancies, removal, and qualification for 
  4.28  office are as otherwise provided by statute for elected city 
  4.29  council members. 
  4.30     Subd. 3.  [CERTIFICATES OF SELECTION, OATH OF OFFICE.] A 
  4.31  certificate of selection of every board member selected under 
  4.32  subdivision 2 stating the term shall be made by the respective 
  4.33  municipal clerks.  The certificates, with the approval appended 
  4.34  by other authority, if required, shall be filed with the 
  4.35  secretary of state.  Counterparts shall be furnished to the 
  4.36  board member and the secretary of the board.  Each member shall 
  5.1   qualify by taking and subscribing the oath of office prescribed 
  5.2   by the Minnesota Constitution, article V, section 6.  Such oath, 
  5.3   duly certified by the official administering the same, shall be 
  5.4   filed with the secretary of state and the secretary of the board.
  5.5      Subd. 4.  [COMPENSATION OF BOARD MEMBERS.] Each board 
  5.6   member shall be paid a per diem compensation for meetings and 
  5.7   for such other services in such amount as may be specifically 
  5.8   authorized by the board from time to time.  Per diem 
  5.9   compensation shall not exceed $2,000 in any one year.  All 
  5.10  members of the board shall be reimbursed for all reasonable 
  5.11  expenses incurred in the performance of their duties as 
  5.12  determined by the board. 
  5.13     Sec. 4.  [GENERAL PROVISIONS FOR ORGANIZATION AND OPERATION 
  5.14  OF BOARD.] 
  5.15     Subdivision 1.  [OFFICERS, MEETINGS, SEAL.] A majority of 
  5.16  the members shall constitute a quorum at all meetings of the 
  5.17  board, but a lesser number may meet and adjourn from time to 
  5.18  time and compel the attendance of absent members.  The board 
  5.19  shall meet regularly at such time and place as the board shall 
  5.20  by resolution designate.  Special meetings may be held at any 
  5.21  time upon call of the chair or any two members, upon written 
  5.22  notice sent by mail to each member at least three days prior to 
  5.23  the meeting, or upon such other notice as the board by 
  5.24  resolution may provide, or without notice if each member is 
  5.25  present or files with the secretary a written consent to the 
  5.26  meeting either before or after the meeting.  Except as otherwise 
  5.27  provided in this act, any action within the authority of the 
  5.28  board may be taken by the affirmative vote of a majority of the 
  5.29  board at a regular or adjourned regular meeting or at a duly 
  5.30  held special meeting, but in any case only if a quorum is 
  5.31  present.  All meetings of the board shall be open to the public 
  5.32  as provided in Minnesota Statutes, section 471.705.  The board 
  5.33  may adopt a seal, which shall be officially and judicially 
  5.34  noticed, to authenticate instruments executed by its authority, 
  5.35  but omission of the seal shall not affect the validity of any 
  5.36  instrument. 
  6.1      Subd. 2.  [CHAIR.] The board shall elect a chair from its 
  6.2   membership.  The term of the chair shall expire on January 1 of 
  6.3   each year.  The chair shall preside at all meetings of the 
  6.4   board, if present, and shall perform all other duties and 
  6.5   functions usually incumbent upon such an officer, and all 
  6.6   administrative functions assigned to the chair by the board.  
  6.7   The board shall elect a vice-chair from its membership to act 
  6.8   for the chair during a temporary absence or disability. 
  6.9      Subd. 3.  [SECRETARY AND TREASURER.] The board shall select 
  6.10  a person or persons who may but need not be a member or members 
  6.11  of the board, to act as its secretary and treasurer.  The 
  6.12  secretary and treasurer shall hold office at the pleasure of the 
  6.13  board, subject to the terms of any contract of employment which 
  6.14  the board may enter into with the secretary or treasurer.  The 
  6.15  secretary shall record the minutes of all meetings of the board, 
  6.16  and shall be custodian of all books and records of the board 
  6.17  except such as the board shall entrust to the custody of a 
  6.18  designated employee.  The board may appoint a deputy to perform 
  6.19  any and all functions of either the secretary or the treasurer.  
  6.20  A secretary or treasurer who is not a member of the board or a 
  6.21  deputy of either shall not have any right to vote. 
  6.22     Subd. 4.  [GENERAL MANAGER.] The board may appoint a 
  6.23  general manager who shall be selected solely upon the basis of 
  6.24  training, experience, and other qualifications and who shall 
  6.25  serve at the pleasure of the board and at a compensation to be 
  6.26  determined by the board.  The general manager need not be a 
  6.27  resident of the district and may also be selected by the board 
  6.28  to serve as either secretary or treasurer, or both, of the 
  6.29  board.  The general manager shall attend all meetings of the 
  6.30  board, but shall not vote, and shall: 
  6.31     (1) see that all resolutions, rules, regulations, or orders 
  6.32  of the board are enforced; 
  6.33     (2) appoint and remove, upon the basis of merit and 
  6.34  fitness, all subordinate officers and regular employees of the 
  6.35  board except the secretary and the treasurer and their deputies; 
  6.36     (3) present to the board plans, studies, and other reports 
  7.1   prepared for board purposes and recommend to the board for 
  7.2   adoption such measures as the general manager deems necessary to 
  7.3   enforce or carry out the powers and duties of the board, or the 
  7.4   efficient administration of the affairs of the board; 
  7.5      (4) keep the board fully advised as to its financial 
  7.6   condition, and prepare and submit to the board, and to the 
  7.7   governing bodies of the local government units, the board's 
  7.8   annual budget and such other financial information as the board 
  7.9   may request; 
  7.10     (5) recommend to the board for adoption such rules and 
  7.11  regulations as he or she deems necessary for the efficient 
  7.12  operation of a district disposal system and all local sanitary 
  7.13  sewer facilities over which the board may assume responsibility 
  7.14  as provided in section 18; and 
  7.15     (6) perform such other duties as may be prescribed by the 
  7.16  board. 
  7.17     Subd. 5.  [PUBLIC EMPLOYEES.] The general manager and all 
  7.18  persons employed by the general manager shall be public 
  7.19  employees, and shall have all the rights and duties conferred on 
  7.20  public employees under Minnesota Statutes, sections 179A.01 to 
  7.21  179A.25.  The compensation and conditions of employment of such 
  7.22  employees shall not be governed by any rule applicable to state 
  7.23  employees in the classified service nor to any of the provisions 
  7.24  of Minnesota Statutes, chapter 15A, unless the board so provides.
  7.25     Subd. 6.  [PROCEDURES.] The board shall adopt resolutions 
  7.26  or bylaws establishing procedures for board action, personnel 
  7.27  administration, recordkeeping, investment policy, approving 
  7.28  claims, authorizing or making disbursements, safekeeping funds, 
  7.29  and audit of all financial operations of the board. 
  7.30     Subd. 7.  [SURETY BONDS AND INSURANCE.] The board may 
  7.31  procure surety bonds for its officers and employees and in such 
  7.32  amounts as are deemed necessary to assure proper performance of 
  7.33  their duties and proper accounting for funds in their custody. 
  7.34  It may procure insurance against such risks to property and such 
  7.35  liability of the board and its officers, agents, and employees 
  7.36  for personal injuries or death and property damage and 
  8.1   destruction and in such amounts as may be deemed necessary or 
  8.2   desirable, with the force and effect stated in Minnesota 
  8.3   Statutes, chapter 466. 
  8.4      Sec. 5.  [COMPREHENSIVE PLAN.] 
  8.5      Subdivision 1.  [BOARD PLAN AND PROGRAM.] The board shall 
  8.6   adopt a comprehensive plan for the collection, treatment, and 
  8.7   disposal of sewage in the district for such designated period as 
  8.8   the board deems proper and reasonable.  The board shall prepare 
  8.9   and adopt subsequent comprehensive plans for the collection, 
  8.10  treatment, and disposal of sewage in the district for each such 
  8.11  succeeding designated period as the board deems proper and 
  8.12  reasonable.  The plan shall take into account the preservation 
  8.13  and best and most economic use of water and other natural 
  8.14  resources in the area; the preservation, use and potential for 
  8.15  use of lands adjoining waters of the state to be used for the 
  8.16  disposal of sewage; and the impact such a disposal system will 
  8.17  have on present and future land use in the area affected 
  8.18  thereby.  Such plans shall include the general location of 
  8.19  needed interceptors and treatment works, a description of the 
  8.20  area that is to be served by the various interceptors and 
  8.21  treatment works, a long-range capital improvements program and 
  8.22  such other details as the board shall deem appropriate.  In 
  8.23  developing the plans, the board shall consult with persons 
  8.24  designated for such purpose by governing bodies of any municipal 
  8.25  or public corporation or governmental or political subdivision 
  8.26  or agency within the district to represent such entities and 
  8.27  shall consider the data, resources, and input offered to the 
  8.28  board by such entities and any planning agency acting on behalf 
  8.29  of one or more such entities.  Each such plan, when adopted, 
  8.30  shall be followed in the district and may be revised as often as 
  8.31  the board deems necessary. 
  8.32     Subd. 2.  [COMPREHENSIVE PLANS; HEARING.] Before adopting 
  8.33  any subsequent comprehensive plan the board shall hold a public 
  8.34  hearing on such proposed plan at such time and place in the 
  8.35  district as it shall determine.  The hearing may be continued 
  8.36  from time to time.  Not less than 45 days before the hearing, 
  9.1   the board shall publish notice thereof in a newspaper or 
  9.2   newspapers having general circulation in the district, stating 
  9.3   the date, time, and place of the hearing, and the place where 
  9.4   the proposed plan may be examined by any interested person.  At 
  9.5   the hearing, all interested persons shall be permitted to 
  9.6   present their views on the plan. 
  9.7      Subd. 3.  [MUNICIPAL PLANS AND PROGRAMS; COORDINATION WITH 
  9.8   BOARD'S RESPONSIBILITIES.] Before undertaking the construction 
  9.9   of new sewers of other disposal facilities or the substantial 
  9.10  alteration or improvement of any existing sewers or other 
  9.11  disposal facilities, each local government unit may, and shall 
  9.12  if the construction or alteration of any sewage disposal 
  9.13  facilities is contemplated by such government unit, adopt a 
  9.14  comprehensive plan and program for the collection, treatment, 
  9.15  and disposal of sewage for which the local government unit is 
  9.16  responsible, coordinated with the board's comprehensive plan, 
  9.17  and may revise the same as often as deems necessary.  Each such 
  9.18  local plan or revision thereof shall be submitted forthwith to 
  9.19  the board for review and shall be subject to the approval of the 
  9.20  board as to those features of the plan affecting the board's 
  9.21  responsibilities as determined by the board.  Any such features 
  9.22  disapproved by the board shall be modified in accordance with 
  9.23  the board's recommendations.  No construction project involving 
  9.24  such features shall be undertaken by the local government unit 
  9.25  unless its governing body shall first find the project to be in 
  9.26  accordance with the government unit's comprehensive plan and 
  9.27  program as approved by the board.  Prior to approval by the 
  9.28  board of the comprehensive plan and program of any local 
  9.29  government unit in the district, no construction project shall 
  9.30  be undertaken by such government unit unless approval of the 
  9.31  project is first secured from the board as to those features of 
  9.32  the project affecting the board's responsibilities as determined 
  9.33  by the board. 
  9.34     Sec. 6.  [SEWER SERVICE FUNCTION.] 
  9.35     Subdivision 1.  [DUTY OF BOARD; ACQUISITION OF EXISTING 
  9.36  FACILITIES; NEW FACILITIES.] At any time after the board has 
 10.1   become organized it shall assume ownership of all existing 
 10.2   interceptors and treatment works which will be needed to 
 10.3   implement the board's comprehensive plan for the collection, 
 10.4   treatment, and disposal of sewage in the district, in the manner 
 10.5   and subject to the conditions prescribed in subdivision 2, and 
 10.6   shall design, acquire, construct, better, equip, operate, and 
 10.7   maintain all additional interceptors and treatment works which 
 10.8   will be needed for such purpose.  The board shall assume 
 10.9   ownership of all treatment works owned by a local government 
 10.10  unit if any part of such treatment works will be needed for such 
 10.11  purpose. 
 10.12     Subd. 2.  [METHOD OF ACQUISITION; EXISTING DEBT.] The board 
 10.13  may require any local government unit to transfer to the board, 
 10.14  all of its right, title, and interest in any interceptors or 
 10.15  treatment works and all necessary appurtenances thereto owned by 
 10.16  such local government unit which will be needed for the purpose 
 10.17  stated in subdivision 1.  Appropriate instruments of conveyance 
 10.18  for all such property shall be executed and delivered to the 
 10.19  board by the proper officers of each local government unit 
 10.20  concerned.  The board, upon assuming ownership of any such 
 10.21  interceptors or treatment works, shall become obligated to pay 
 10.22  to such local government unit amounts sufficient to pay when due 
 10.23  all remaining principal of and interests on bonds issued by such 
 10.24  local government unit for the acquisition or betterment of the 
 10.25  interceptors or treatment works taken over.  The board shall 
 10.26  also assume the same obligation with respect to so much of any 
 10.27  other existing disposal system owned by a local government unit 
 10.28  as the board determines to have been replaced or rendered 
 10.29  useless by the district disposal system.  The amounts to be paid 
 10.30  under this subdivision may be offset against any amount to be 
 10.31  paid to the board by the local government unit as provided in 
 10.32  section 9.  The board shall not be obligated to pay the local 
 10.33  government unit anything in addition to the assumption of debt 
 10.34  herein provided for. 
 10.35     Subd. 3.  [EXISTING JOINT POWERS BOARD.] Effective January 
 10.36  1, 2000, or such earlier date as determined by the board, the 
 11.1   corporate existence of the joint powers board created by 
 11.2   agreement among local government units pursuant to Minnesota 
 11.3   Statutes, section 471.59, to provide the financing, acquisition, 
 11.4   construction, improvement, extension, operation, and maintenance 
 11.5   of facilities for the collection, treatment, and disposal of 
 11.6   sewage shall terminate.  All persons regularly employed by such 
 11.7   joint powers board on that date shall be employees of the board, 
 11.8   and may at their option become members of the retirement system 
 11.9   applicable to persons employed directly by the board or may 
 11.10  continue as members of a public retirement association under any 
 11.11  other law, to which they belonged before such date, and shall 
 11.12  retain all pension rights which they may have under such latter 
 11.13  laws, and all other rights to which they are entitled by 
 11.14  contract or law.  The board shall make the employer's 
 11.15  contributions to pension funds of its employees.  Such employees 
 11.16  shall perform such duties as may be prescribed by the board.  On 
 11.17  January 1, 2000, or such earlier date, all funds of such joint 
 11.18  powers board then on hand, and all subsequent collections of 
 11.19  taxes, special assessments, or service charges or any other sums 
 11.20  due the joint powers board or levied, or imposed by or for such 
 11.21  joint powers board shall be transferred to or made payable to 
 11.22  the sanitary sewer board and the county auditor shall remit the 
 11.23  sums to the board.  The local government units otherwise 
 11.24  entitled to such cash, taxes, assessments, or service charges 
 11.25  shall be credited with such amounts, and such credits shall be 
 11.26  offset against any amounts to be paid by them to the board as 
 11.27  provided in section 9.  On January 1, 2000, or such earlier 
 11.28  date, the board shall succeed to and become vested with all 
 11.29  right, title, and interest in and to any property, real or 
 11.30  personal, owned or operated by such joint powers board; and 
 11.31  prior to that date the proper officers of such joint powers 
 11.32  board shall execute and deliver to the sanitary sewer board all 
 11.33  deeds, conveyances, bills of sale, and other documents or 
 11.34  instruments required to vest in the board good and marketable 
 11.35  title to all such real or personal property, but this act shall 
 11.36  operate as such transfer and conveyance to the board of such 
 12.1   real or personal property, if not so transferred, as may be 
 12.2   required under the law or under the circumstances.  On January 
 12.3   1, 2000, or such earlier date, the board shall become obligated 
 12.4   to pay or assume all outstanding bonds or other debt and all 
 12.5   contracts or obligations incurred by such joint powers board, 
 12.6   and all such bonds, obligations, or debts of the joint powers 
 12.7   board outstanding on the date this act becomes effective are 
 12.8   validated. 
 12.9      Subd. 4.  [CONTRACTS BETWEEN LOCAL GOVERNMENT UNITS.] The 
 12.10  board may terminate upon 60 days mailed notice to the 
 12.11  contracting parties, any existing contract between or among 
 12.12  local government units requiring payments by a local government 
 12.13  unit to any other local government unit, for the use of a 
 12.14  disposal system, or as reimbursement of capital costs of such a 
 12.15  disposal system, all or part of which will be needed to 
 12.16  implement the board's comprehensive plan.  All contracts between 
 12.17  or among local government units for use of a disposal system 
 12.18  entered into subsequent to the date on which this act becomes 
 12.19  effective shall be submitted to the board for approval as to 
 12.20  those features affecting the board's responsibilities as 
 12.21  determined by the board and shall not become effective until 
 12.22  such approval is given. 
 12.23     Sec. 7.  [SEWAGE COLLECTION AND DISPOSAL; POWERS.] 
 12.24     Subdivision 1.  [POWERS.] In addition to all other powers 
 12.25  conferred upon the board in this act, the board has the powers 
 12.26  specified in this section. 
 12.27     Subd. 2.  [DISCHARGE OF TREATED SEWAGE.] The board shall 
 12.28  have the right to discharge the effluent from any treatment 
 12.29  works operated by it into any waters of the state, subject to 
 12.30  approval of the agency if required and in accordance with any 
 12.31  effluent or water quality standards lawfully adopted by the 
 12.32  agency, any interstate agency or any federal agency having 
 12.33  jurisdiction. 
 12.34     Subd. 3.  [UTILIZATION OF DISTRICT SYSTEM.] The board may 
 12.35  require any person or local government unit to provide for the 
 12.36  discharge of any sewage, directly or indirectly, into the 
 13.1   district disposal system, or to connect any disposal system or a 
 13.2   part thereof with the district disposal system wherever 
 13.3   reasonable opportunity therefore is provided; may regulate the 
 13.4   manner in which such connections are made; may require any 
 13.5   person or local government unit discharging sewage into the 
 13.6   disposal system to provide preliminary treatment therefore; may 
 13.7   prohibit the discharge into the district disposal system of any 
 13.8   substance which it determines will or may be harmful to the 
 13.9   system or any persons operating it; may prohibit any extraneous 
 13.10  flow into the system; and may require any local government unit 
 13.11  to discontinue the acquisition, betterment, or operation of any 
 13.12  facility for such unit's disposal system wherever and so far as 
 13.13  adequate service is or will be provided by the district disposal 
 13.14  system. 
 13.15     Sec. 8.  [BUDGET.] 
 13.16     Except as otherwise specifically provided in this act, the 
 13.17  board is subject to Minnesota Statutes, section 275.065, 
 13.18  popularly known as the Truth in Taxation Act.  The board shall 
 13.19  prepare and adopt, on or before September 15 of each year, a 
 13.20  budget showing for the following calendar year or other fiscal 
 13.21  year determined by the board, sometimes referred to in this act 
 13.22  as the budget year, estimated receipts of money from all sources 
 13.23  including, but not limited to, payments by each local government 
 13.24  unit, federal or state grants, taxes on property, and funds on 
 13.25  hand at the beginning of the year, and estimated expenditures 
 13.26  for: 
 13.27     (1) costs of operation, administration, and maintenance of 
 13.28  the district disposal system; 
 13.29     (2) cost acquisition and betterment of the district 
 13.30  disposal system; and 
 13.31     (3) debt service, including principal and interest, on 
 13.32  general obligation bonds and certificates issued pursuant to 
 13.33  section 13, obligations and debts assumed under section 6, 
 13.34  subdivisions 2 and 3, and any money judgments entered by a court 
 13.35  of competent jurisdiction.  
 13.36     Expenditures within these general categories, and such 
 14.1   others as the board may from time to time determine, shall be 
 14.2   itemized in such detail as the board shall prescribe.  The board 
 14.3   and its officers, agents, and employees shall not spend money 
 14.4   for any purpose other than debt service without having set forth 
 14.5   such expense in the budget nor in excess of the amount set forth 
 14.6   in the budget therefor, and no obligation to make sure an 
 14.7   expenditure shall be enforceable except as the obligation of the 
 14.8   person or persons incurring it; provided that the board may 
 14.9   amend the budget at any time by transferring from one purpose to 
 14.10  another any sums except money for debt service and bond proceeds 
 14.11  or by increasing expenditures in any amount by which cash 
 14.12  receipts during the budget year actually exceed the total 
 14.13  amounts designated in the original budget.  The creation of any 
 14.14  obligation pursuant to section 13 or the receipts of any federal 
 14.15  or state grant is a sufficient budget designation of the 
 14.16  proceeds for the purpose for which it is authorized, and of the 
 14.17  tax or other revenue pledged to pay the obligation and interest 
 14.18  on it, whether or not specifically included in any annual budget.
 14.19     Sec. 9.  [ALLOCATION OF COSTS.] 
 14.20     Subdivision 1.  [DEFINITION OF CURRENT COSTS.] The 
 14.21  estimated cost of administration, operation, maintenance, and 
 14.22  debt service of the district disposal system to be paid by the 
 14.23  board in each fiscal year and the estimated costs of acquisition 
 14.24  and betterment of the system which are to be paid during the 
 14.25  year from funds other than state or federal grants and bond 
 14.26  proceeds and all other previously unallocated payments made by 
 14.27  the board pursuant to this act in such year are referred to as 
 14.28  current costs. 
 14.29     Subd. 2.  [COLLECTION OF CURRENT COSTS.] Current costs 
 14.30  shall be collected as follows: 
 14.31     (a) Allocation of current costs:  current costs may be 
 14.32  allocated to local government units in the district on an 
 14.33  equitable basis as the board may from time to time determine by 
 14.34  resolution to be fair and reasonable and in the best interests 
 14.35  of the district.  In making the allocation the board may provide 
 14.36  for the deferment of payment of all or part of current costs, 
 15.1   the reallocation of deferred costs and the reimbursement of 
 15.2   reallocated deferred costs on an equitable basis as the board 
 15.3   may from time to time determine by resolution to be fair and 
 15.4   reasonable and in the best interests of the district.  The 
 15.5   adoption or revision of a method of allocation, deferment, 
 15.6   reallocation, or reimbursement used by the board shall be made 
 15.7   by the affirmative vote of at least two-thirds of the members of 
 15.8   the board. 
 15.9      (b) Direct collection:  upon approval of at least 
 15.10  two-thirds of the members of the board, the board may provide 
 15.11  for direct collection of current costs by monthly or other 
 15.12  periodic billing of sewer users. 
 15.13     Sec. 10.  [GOVERNMENT UNITS; PAYMENTS TO BOARD.] 
 15.14     Subdivision 1.  [OBLIGATIONS OF GOVERNMENT UNITS TO THE 
 15.15  BOARD.] Each government unit shall pay to the board all sums 
 15.16  charged to it as provided in section 9, at the times and in the 
 15.17  manner determined by the board.  The governing body of each such 
 15.18  government unit shall take all action that may be necessary to 
 15.19  provide the funds required for such payments and to make the 
 15.20  same when due. 
 15.21     Subd. 2.  [AMOUNTS DUE BOARD; WHEN PAYABLE.] Charges 
 15.22  payable to the board by local government units may be made 
 15.23  payable at such times during each year as the board determines, 
 15.24  after it has taken into account the dates on which taxes, 
 15.25  assessments, revenue collections, and other funds become 
 15.26  available to the government unit required to pay such charges. 
 15.27     Subd. 3.  [GENERAL POWERS OF GOVERNMENT UNITS; LOCAL TAX 
 15.28  LEVIES.] To accomplish any duty imposed on it by the board, the 
 15.29  governing body of every government unit may, in addition to the 
 15.30  powers granted in this act and in any other law or charter, 
 15.31  exercise the powers granted any municipality by Minnesota 
 15.32  Statutes, chapters 117, 412, 429, and 475 and sections 115.46, 
 15.33  444.075, and 471.59, with respect to the area of the government 
 15.34  unit located in the district.  In addition thereto, the 
 15.35  governing body of every government unit located in whole or part 
 15.36  in the district may levy taxes upon all taxable property in that 
 16.1   part of the government unit located in the district for all or a 
 16.2   part of the amount payable to the board, but if the levy is for 
 16.3   only part of the amounts payable to the board, the governing 
 16.4   body of the government unit may levy additional taxes on the 
 16.5   entire net tax capacity of all taxable property for all or a 
 16.6   part of the balance remaining payable.  The taxes levied under 
 16.7   this subdivision shall be assessed and extended as a tax upon 
 16.8   such taxable property by the county auditor for the next 
 16.9   calendar year, free from any limitation of rate or amount 
 16.10  imposed by law or charter.  The tax shall be collected and 
 16.11  remitted in the same manner as other general taxes of the 
 16.12  government unit. 
 16.13     Subd. 3a.  [ALTERNATE LEVY.] In lieu of levying taxes on 
 16.14  all taxable property pursuant to subdivision 3, the governing 
 16.15  body of the government unit may elect to levy taxes upon the net 
 16.16  tax capacity of all taxable property, except agricultural 
 16.17  property, and upon only 25 percent of the net tax capacity of 
 16.18  all agricultural property, in that part of the government unit 
 16.19  located in the district for all or a part of the amounts payable 
 16.20  to the board.  If the levy is for only part of the amounts 
 16.21  payable to the board, the governing body may levy additional 
 16.22  taxes on the entire net tax capacity of all such property, 
 16.23  including agricultural property, for all or a part of the 
 16.24  balance of such amounts.  The taxes shall be assessed and 
 16.25  extended as a tax upon such taxable property by the county 
 16.26  auditor for the next calendar year, free from any limitation of 
 16.27  rate or amount imposed by law or charge, and shall be collected 
 16.28  and remitted in the same manner as other general taxes of the 
 16.29  government unit.  In computing the tax capacity pursuant to this 
 16.30  subdivision, the county auditor shall include only 25 percent of 
 16.31  the net tax capacity of all taxable agricultural property and 
 16.32  100 percent of the net tax capacity of all other taxable 
 16.33  property in that part of the government unit located within the 
 16.34  district and, in spreading the levy, the auditor shall apply the 
 16.35  mill rate upon the same percentages of agricultural and 
 16.36  nonagricultural taxable property.  If the government unit elects 
 17.1   to levy taxes under this subdivision and any of the taxable 
 17.2   agricultural property is reclassified so as to no longer qualify 
 17.3   as agricultural property, it shall be subject to additional 
 17.4   taxes.  The additional taxes shall be in an amount which, 
 17.5   together with any such additional taxes previously levied and 
 17.6   the estimated collection of additional taxes subsequently levied 
 17.7   on any other such reclassified property, is determined by the 
 17.8   governing body of the government unit to be at least sufficient 
 17.9   to reimburse each other government unit for any excess current 
 17.10  costs reallocated to it as a result of the board deferring any 
 17.11  current costs under section 9 on account of the difference 
 17.12  between the amount of such current costs initially allocated to 
 17.13  each government unit based on the total net tax capacity of all 
 17.14  taxable property in the district and the amount of such current 
 17.15  costs reallocated to each government unit based on 25 percent of 
 17.16  the net tax capacity of agricultural property and 100 percent of 
 17.17  the net tax capacity of all other taxable property in the 
 17.18  district.  Any reimbursement shall be made on terms which the 
 17.19  board determines to be just and reasonable.  These additional 
 17.20  taxes may be levied in any greater amount as the governing body 
 17.21  of the government unit determines to be appropriate, provided 
 17.22  that in no event shall the total amount of the additional taxes 
 17.23  exceed the difference between: 
 17.24     (1) the total amount of taxes which would have been levied 
 17.25  upon such reclassified property to help pay current costs 
 17.26  charged in each year to the government unit by the board if that 
 17.27  portion of such costs, if any, initially allocated by the board 
 17.28  solely on the basis of 100 percent of the net tax capacity of 
 17.29  all taxable property in the district and then reallocated on the 
 17.30  basis of inclusion of only 25 percent of the net tax capacity of 
 17.31  agricultural property in the district was not reallocated and if 
 17.32  the amount of taxes levied by the government unit each year 
 17.33  under this subdivision to pay current costs had been based on 
 17.34  such initial allocation and had been imposed upon 100 percent of 
 17.35  the net tax capacity of all taxable property, including 
 17.36  agricultural property, in that part of the government unit 
 18.1   located in the district; and 
 18.2      (2) the amount of taxes theretofore levied each year under 
 18.3   this subdivision upon such reclassified property, plus interest 
 18.4   on the cumulative amount of such difference accruing each year 
 18.5   at the approximate average annual rate borne by bonds issued by 
 18.6   the board and outstanding at the beginning of such year or, if 
 18.7   no bonds are then outstanding, at such rate of interest which 
 18.8   may be determined by the board, but not exceeding the maximum 
 18.9   rate of interest which may then be paid on bonds issued by the 
 18.10  board.  The additional taxes shall be a lien upon the 
 18.11  reclassified property assessed in the same manner and for the 
 18.12  same duration as all other ad valorem taxes levied upon the 
 18.13  property.  The additional taxes shall be extended against the 
 18.14  reclassified property on the tax list for the current year, 
 18.15  provided however that no penalties or additional interest shall 
 18.16  be levied on such additional taxes if timely paid, and shall be 
 18.17  collected and remitted in the same manner as other general taxes 
 18.18  of the government unit. 
 18.19     Subd. 4.  [DEBT LIMIT.] Any ad valorem taxes levied under 
 18.20  section 10, subdivision 3, or section 5 by the governing body of 
 18.21  a government unit to pay any sums charged to it by the board 
 18.22  pursuant to this act are not subject to, or counted towards, any 
 18.23  limit imposed by law on the levy of taxes upon taxable property 
 18.24  within any governmental unit. 
 18.25     Subd. 5.  [DEFICIENCY TAX LEVIES.] If the local government 
 18.26  unit fails to make any payment to the board when due, the board 
 18.27  may certify to the auditor of the county in which the government 
 18.28  unit is located the amount required for payment of such amount 
 18.29  with interest at not more than the maximum rate per annum 
 18.30  authorized at that time on assessments pursuant to Minnesota 
 18.31  Statutes, section 429.061, subdivision 2.  The auditor shall 
 18.32  levy and extend such amount as a tax upon all taxable property 
 18.33  in that part of the government unit located in the district, for 
 18.34  the next calendar year, free from any limitation imposed by law 
 18.35  or charter.  Such tax shall be collected in the same manner as 
 18.36  other general taxes of the government unit, and the proceeds 
 19.1   thereof, when collected, shall be paid by the county treasurer 
 19.2   to the treasurer of the board and credited to the government 
 19.3   unit for which the tax was levied. 
 19.4      Sec. 11.  [PUBLIC HEARING AND SPECIAL ASSESSMENTS.] 
 19.5      Subdivision 1.  [PUBLIC HEARING REQUIREMENT ON SPECIFIC 
 19.6   PROJECT.] Before the board orders any project involving the 
 19.7   acquisition or betterment of any interceptor or treatment works, 
 19.8   all or a part of the cost of which will be allocated to local 
 19.9   government units pursuant to section 9, as current costs, the 
 19.10  board shall hold a public hearing on the proposed project 
 19.11  following two publications in a newspaper or newspapers having 
 19.12  general circulation in the district, stating the time and place 
 19.13  of the hearing, the general nature and location of the project, 
 19.14  the estimated total cost of acquisition and betterment, that 
 19.15  portion of such costs estimated to be paid out of federal and 
 19.16  state grants, and that portion of such costs estimated to be 
 19.17  allocated to each local government unit affected thereby.  The 
 19.18  two publications shall be a week apart and the hearing shall be 
 19.19  at least three days after the last publication.  Not less than 
 19.20  45 days before the hearing notice thereof shall also be mailed 
 19.21  to each clerk of all local government units in the district, but 
 19.22  failure to give mailed notice of any defects in the notice shall 
 19.23  not invalidate the proceedings.  The project may include all or 
 19.24  part of one or more interceptors or treatment works.  A hearing 
 19.25  is not required with respect to a project, no part of the costs 
 19.26  of which are to be allocated to local government units as the 
 19.27  current costs of acquisition, betterment, and debt service. 
 19.28     Subd. 2.  [NOTICE TO BENEFITED PROPERTY OWNERS.] If the 
 19.29  governing body of any local government unit in the district 
 19.30  proposes to assess against benefited property within such units 
 19.31  all or any part of the allocable costs of the project as 
 19.32  provided in subdivision 5, such governing body shall, not less 
 19.33  than ten days prior to the hearing provided for in subdivision 1 
 19.34  cause mailed notice thereof to be given to the owner of each 
 19.35  parcel within the area proposed to be specially assessed and 
 19.36  shall also give one week's published notice of the hearing.  The 
 20.1   notice of hearing shall contain the same information provided in 
 20.2   the notice published by the board pursuant to subdivision 1, and 
 20.3   in addition, a description of the area proposed to be assessed 
 20.4   by the local government unit.  For the purpose of giving mailed 
 20.5   notice, owners shall be those shown to be on the records of the 
 20.6   county auditor or, in any county where tax statements are mailed 
 20.7   by the county treasurer, on the records of the county treasurer; 
 20.8   but other appropriate records may be used for this purpose.  
 20.9   However, as to properties which are tax exempt or subject to 
 20.10  taxation on a gross earnings basis and are not listed on the 
 20.11  records of the county auditor or the county treasurer, the 
 20.12  owners thereof shall be ascertained by any practicable means and 
 20.13  mailed notice shall be given them as herein provided.  Failure 
 20.14  to give mailed notice or any defects in the notice shall not 
 20.15  invalidate the proceedings of the board or the local governing 
 20.16  body. 
 20.17     Subd. 3.  [BOARD PROCEEDINGS PERTAINING TO HEARING.] Prior 
 20.18  to adoption of the resolution calling for such a hearing, the 
 20.19  board shall secure from the district engineer or some other 
 20.20  competent person of the board's selection a report advising it 
 20.21  in a preliminary way as to whether the proposed project is 
 20.22  feasible, necessary, and cost effective and as to whether it 
 20.23  should best be made as proposed or in connection with some other 
 20.24  project and the estimated costs of the project as recommended; 
 20.25  but no error or omission in such report shall invalidate the 
 20.26  proceeding.  The board may also take such other steps prior to 
 20.27  the hearing, as well in its judgment provide helpful information 
 20.28  in determining the desirability and feasibility of the project 
 20.29  including, but not limited to, preparation of plans and 
 20.30  specifications and advertisement for bids thereon.  The hearing 
 20.31  may be adjourned from time to time and a resolution ordering the 
 20.32  project may be adopted at any time within six months after the 
 20.33  date of hearing.  In ordering the project the board may reduce 
 20.34  but not increase the extent of the project as stated in the 
 20.35  notice of hearing, unless another hearing is held, and shall 
 20.36  find that the project as ordered is in accordance with the 
 21.1   comprehensive plan and program adopted by the board pursuant to 
 21.2   section 5. 
 21.3      Subd. 4.  [EMERGENCY ACTION.] If the board by resolution 
 21.4   adopted by the affirmative vote of not less than two-thirds of 
 21.5   its members determines that an emergency exists requiring the 
 21.6   immediate purchase of materials or supplies or the making of 
 21.7   emergency repairs, it may order the purchase of such supplies 
 21.8   and materials and the making of such repairs prior to any 
 21.9   hearing required under this section, provided that the board 
 21.10  shall set as early a date as practicable for such hearing at the 
 21.11  time it declares such emergency.  All other provisions of this 
 21.12  section shall be followed in giving notice of and conducting 
 21.13  such hearing.  Nothing herein shall be construed as preventing 
 21.14  the board or its agents from purchasing maintenance supplies or 
 21.15  incurring maintenance costs without regard to the requirements 
 21.16  of this section. 
 21.17     Subd. 5.  [POWER OF GOVERNMENT UNIT TO SPECIALLY ASSESS.] A 
 21.18  local government unit may specially assess all or any part of 
 21.19  the costs of acquisition and betterment as herein provided, of 
 21.20  any project ordered by the board pursuant to this section.  Such 
 21.21  special assessments shall be levied in accordance with Minnesota 
 21.22  Statutes, sections 429.051 to 429.081, except as otherwise 
 21.23  provided in this subdivision.  No other provisions of Minnesota 
 21.24  Statutes, chapter 429, shall apply.  For purposes of levying 
 21.25  such special assessments, the hearing on such project required 
 21.26  in subdivision 1 shall serve as the hearing on the making of the 
 21.27  original improvement provided for by Minnesota Statutes, section 
 21.28  429.051.  The area assessed may be less than but may not exceed 
 21.29  the area proposed to be assessed as stated in the notice of 
 21.30  hearing on the project provided for in subdivision 2.  For the 
 21.31  purpose of determining the allocable cost of the project, or 
 21.32  part thereof, to the local government unit, the government unit 
 21.33  may adopt one of the following procedures. 
 21.34     (a) At any time after a contract is let for the project, 
 21.35  the local government unit may obtain from the board a current 
 21.36  written estimate, on the basis of such historical and reasonably 
 22.1   projected data as may be available, of that part of the total 
 22.2   costs of acquisition and betterment of such project or of some 
 22.3   portion of the project which the government unit shall 
 22.4   designate, which will be allocated to the government unit and 
 22.5   the number of years over which such costs will be allocated as 
 22.6   current costs of acquisition, betterment, and debt service 
 22.7   pursuant to section 9.  The board shall not in any way be bound 
 22.8   by this estimate for the purpose of allocating the costs of such 
 22.9   project to local government units. 
 22.10     (b) The governing body may obtain from the board a written 
 22.11  statement setting forth, for such prior period as the governing 
 22.12  body designates, that portion of the costs previously allocated 
 22.13  to the local government unit as current costs of acquisition, 
 22.14  betterment, and debt service only, of all or any part of the 
 22.15  project designated by the governing body.  In addition to the 
 22.16  allocable costs so ascertained, the local government unit may 
 22.17  include in the total expense it will pay, as a basis for levying 
 22.18  assessments, all other expenses incurred directly by the 
 22.19  government unit in connection with said project, or any part 
 22.20  thereof.  Special assessments levied by the government unit with 
 22.21  respect to previously allocated costs ascertained under this 
 22.22  paragraph shall be payable in equal annual installments 
 22.23  extending over a period not exceeding by more than one year the 
 22.24  number of years which such costs have been allocated to the 
 22.25  government unit or the estimated useful life of said project, or 
 22.26  part thereof, whichever number of years is the lesser.  No 
 22.27  limitation is placed upon the number of times the governing body 
 22.28  of a government unit may assess such previously allocated costs 
 22.29  not previously assessed by the government unit.  The power to 
 22.30  specially assess provided for in this section shall be in 
 22.31  addition and supplemental to all other powers of government 
 22.32  units to levy special assessments. 
 22.33     Sec. 12.  [INITIAL COSTS.] 
 22.34     Subdivision 1.  [CONTRIBUTIONS OR ADVANCES FROM LOCAL 
 22.35  GOVERNMENT UNITS.] The board may, at such time as it deems 
 22.36  necessary and proper, request from all or some of the local 
 23.1   government units necessary money to defray the costs of any 
 23.2   obligations assumed under section 6 and the costs of 
 23.3   administration, operation, and maintenance.  Before making such 
 23.4   request, the board shall, by formal resolution, determine the 
 23.5   necessity for such money, setting forth in such resolution the 
 23.6   purposes for which such money is needed and the estimated amount 
 23.7   for each such purpose.  Upon receiving such request, the 
 23.8   governing body of each such government unit may provide for 
 23.9   payment of the amount requested or such part thereof as it deems 
 23.10  fair and reasonable.  Such money may be paid out of general 
 23.11  revenue funds or any other available funds of any local 
 23.12  government unit and the governing bodies thereof may levy taxes 
 23.13  to provide funds therefor, free from any existing limitations 
 23.14  imposed by law or charter.  Such money may be provided by such 
 23.15  government units with or without interest but if interest is 
 23.16  charged it shall not exceed five percent per annum.  The board 
 23.17  shall credit the local government units for such payments in 
 23.18  allocating current costs pursuant to section 9, on such terms 
 23.19  and at such times as it may agree with the unit furnishing the 
 23.20  same. 
 23.21     Subd. 2.  [LIMITED TAX LEVY.] The board may levy ad valorem 
 23.22  taxes on all taxable property in the district to defray any of 
 23.23  the costs described in subdivision 1, provided that such costs 
 23.24  have not been defrayed by contribution under subdivision 1. 
 23.25     Before certification of such levy to the county auditor, 
 23.26  the board shall determine the need for the money to be derived 
 23.27  from such levy by formal resolution setting forth in said 
 23.28  resolution the purposes for which the tax money will be used and 
 23.29  the amount proposed to be used for each such purpose.  In 
 23.30  allocating current costs pursuant to section 9 the board shall 
 23.31  credit the government units for taxes collected pursuant to levy 
 23.32  made under this subdivision on such terms and at such time or 
 23.33  times as the board deems fair and reasonable and upon such terms 
 23.34  as are consistent with the provisions of section 9, subdivision 
 23.35  2. 
 23.36     Sec. 13.  [BONDS, CERTIFICATES, AND OTHER OBLIGATIONS.] 
 24.1      Subdivision 1.  [BUDGET ANTICIPATION CERTIFICATES OF 
 24.2   INDEBTEDNESS.] (a) At any time or times after adoption of its 
 24.3   annual budget and in anticipation of the collection of tax and 
 24.4   other revenues estimated and set forth by the board in such 
 24.5   budget, except: 
 24.6      (1) taxes already anticipated by the issuance of 
 24.7   certificates under subdivision 2; 
 24.8      (2) deficiency taxes levied pursuant to this subdivision; 
 24.9   and 
 24.10     (3) taxes levied for the payment of certificates issued 
 24.11  pursuant to subdivision 3, the board may by resolution, 
 24.12  authorize the issuance, negotiation, and sale in accordance with 
 24.13  subdivision 5 in such form and manner and upon such terms as it 
 24.14  may determine of its negotiable general obligation certificates 
 24.15  of indebtedness in aggregate principal amounts not exceeding 50 
 24.16  percent of the total amount of such tax collections and other 
 24.17  revenues and maturing not later than three months after the 
 24.18  close of the budget year in which issued.  The proceeds of the 
 24.19  sale of such certificates shall be used solely for the purposes 
 24.20  for which such tax collections and other revenues are to be 
 24.21  expended pursuant to such budget. 
 24.22     (b) All such tax collections and other revenues included in 
 24.23  the budget for such budget year, after the expenditures of such 
 24.24  tax collections and other revenues in accordance with the 
 24.25  budget, shall be irrevocably pledged and appropriated to a 
 24.26  special fund to pay the principal and interest on the 
 24.27  certificates when due.  If for any reason such tax collections 
 24.28  and other revenues are insufficient to pay the certificates and 
 24.29  interest when due, the board shall levy a tax in the amount of 
 24.30  the deficiency on all taxable property in the district and shall 
 24.31  appropriate this amount when received to the special fund. 
 24.32     Subd. 2.  [TAX LEVY ANTICIPATION CERTIFICATES OF 
 24.33  INDEBTEDNESS.] At any time or times after a tax is levied by the 
 24.34  board pursuant to section 12, subdivision 2, and certified to 
 24.35  the county auditors in anticipation of the collection of such 
 24.36  tax, provided that such tax has not been anticipated by the 
 25.1   issuance of certificates under subdivision 1, the board may, by 
 25.2   resolution, authorize the issuance, negotiation, and sale in 
 25.3   accordance with subdivision 5 in such form and manner and upon 
 25.4   such terms and conditions as it may determine of its negotiable 
 25.5   general obligation tax levy anticipation certificates of 
 25.6   indebtedness in aggregate principal amounts not exceeding 50 
 25.7   percent of such uncollected tax as to which no penalty for 
 25.8   nonpayment or delinquency has attached.  Such certificates shall 
 25.9   mature not later than April 1 in the year following the year in 
 25.10  which such tax is collectible.  The proceeds of the tax in 
 25.11  anticipation of which such certificates were issued and other 
 25.12  funds which may become available shall be applied to the extent 
 25.13  necessary to repay such certificates. 
 25.14     Subd. 3.  [EMERGENCY CERTIFICATES OF INDEBTEDNESS.] If in 
 25.15  any budget year the receipts of tax and other revenues should 
 25.16  for some unforeseen cause become insufficient to pay the board's 
 25.17  current expenses, or if any calamity or other public emergency 
 25.18  should subject it to the necessity of making extraordinary 
 25.19  expenditures, the board may by resolution authorize the 
 25.20  issuance, negotiation, and sale in accordance with subdivision 5 
 25.21  in such form and manner and upon such terms and conditions as it 
 25.22  may determine of its negotiable general obligation certificates 
 25.23  of indebtedness in an amount sufficient to meet such deficiency, 
 25.24  and the board shall forthwith levy on all taxable property in 
 25.25  the district a tax sufficient to pay the certificates and 
 25.26  interest thereon and shall appropriate all collections of such 
 25.27  tax to a special fund created for the payment of such 
 25.28  certificates and the interest thereon. 
 25.29     Subd. 4.  [GENERAL OBLIGATION BONDS.] The board may by 
 25.30  resolution authorize the issuance of general obligation bonds 
 25.31  maturing serially in one or more annual or semiannual 
 25.32  installments, for the acquisition or betterment of any part of 
 25.33  the district disposal system, including but without limitation 
 25.34  the payment of interest during construction and for a reasonable 
 25.35  period thereafter, or for the refunding of outstanding bonds, 
 25.36  certificates of indebtedness, or judgments.  The board shall 
 26.1   pledge its full faith and credit and taxing power for the 
 26.2   payment of such bonds and shall provide for the issuance and 
 26.3   sale and for the security of such bonds in the manner provided 
 26.4   in Minnesota Statutes, chapter 475, and shall have the same 
 26.5   powers and duties as a municipality issuing bonds under that 
 26.6   law.  No election shall be required to authorize the issuance of 
 26.7   such bonds and the debt limitations of Minnesota Statutes, 
 26.8   chapter 475, shall not apply to such bonds.  The board may also 
 26.9   pledge for the payment of such bonds and deduct from the amount 
 26.10  of any tax levy required under Minnesota Statutes, section 
 26.11  475.61, subdivision 1, any sums receivable under section 10 or 
 26.12  any state and federal grants anticipated by the board and may 
 26.13  covenant to refund such bonds if and when and to the extent that 
 26.14  for any reasons such revenues, together with other funds 
 26.15  properly available and appropriated for such purpose, are not 
 26.16  sufficient to pay all principal and interest due or about to 
 26.17  become due thereon, provided that such revenues have not been 
 26.18  anticipated by the issuance of certificates under subdivision 1. 
 26.19  All bonds which have been or shall hereafter be issued and sold 
 26.20  in conformity with the provisions of this subdivision, and 
 26.21  otherwise in conformity with law, are hereby authorized, 
 26.22  legalized, and validated. 
 26.23     Subd. 5.  [MANNER OF SALE AND ISSUANCE OF CERTIFICATES.] 
 26.24  Certificates issued under subdivisions 1, 2, and 3 may be issued 
 26.25  and sold by negotiation, without public sale, and may be sold at 
 26.26  a price equal to such percentage of the par value thereof, plus 
 26.27  accrued interest, and bearing interest at such rate or rates as 
 26.28  may be determined by the board.  No election shall be required 
 26.29  to authorize the issuance of such certificates.  Such 
 26.30  certificates shall bear the same rate of interest after maturity 
 26.31  as before and the full faith and credit and taxing power of the 
 26.32  board shall be pledged to the payment of such certificates. 
 26.33     Sec. 14.  [TAX LEVIES.] 
 26.34     The board shall have power to levy taxes for the payment of 
 26.35  bonds or other obligations assumed by the district under section 
 26.36  6 and for debt service of the district disposal system 
 27.1   authorized in section 13 upon all taxable property within the 
 27.2   district without limitation of rate or amount and without 
 27.3   affecting the amount or rate of taxes which may be levied by the 
 27.4   board for other purposes or by any local government unit in the 
 27.5   district.  No other provision of law relating to debt limit 
 27.6   shall restrict or in any way limit the power of the board to 
 27.7   issue the bonds and certificates authorized in section 13.  The 
 27.8   board shall also have power to levy taxes as provided in 
 27.9   sections 10 and 12.  The county auditor shall annually assess 
 27.10  and extend upon the tax rolls the portion of the taxes levied by 
 27.11  the board in each year which is certified to the auditor by the 
 27.12  board.  The county treasurer shall collect and make settlement 
 27.13  of such taxes with the treasurer of the board. 
 27.14     Sec. 15.  [DEPOSITORIES.] 
 27.15     The board shall from time to time designate one or more 
 27.16  national or state banks, or trust companies authorized to do a 
 27.17  banking business, as official depositories for money of the 
 27.18  board, and thereupon shall require the treasurer to deposit all 
 27.19  or a part of such money in such institutions.  Such designation 
 27.20  shall be in writing and shall set forth all the terms and 
 27.21  conditions upon which the deposits are made, and shall be signed 
 27.22  by the chair and treasurer, and made a part of the minutes of 
 27.23  the board.  Any bank or trust company so designated shall 
 27.24  qualify as a depository by furnishing a corporate surety bond or 
 27.25  collateral in the amounts required by Minnesota Statutes, 
 27.26  section 118A.03.  However, no bond or collateral shall be 
 27.27  required to secure any deposit insofar as it is insured under 
 27.28  federal law. 
 27.29     Sec. 16.  [MONEY; ACCOUNTS AND INVESTMENTS.] 
 27.30     Subdivision 1.  [RECEIPT AND APPLICATION.] All money 
 27.31  received by the board shall be deposited or invested by the 
 27.32  treasurer and disposed of as the board may direct in accordance 
 27.33  with its budget; provided that any money that has been pledged 
 27.34  or dedicated by the board to the payment of obligations or 
 27.35  interest thereon or expenses incident thereto, or for any other 
 27.36  specific purpose authorized by law, shall be paid by the 
 28.1   treasurer into the fund to which they have been pledged. 
 28.2      Subd. 2.  [FUNDS AND ACCOUNTS.] The board's treasurer shall 
 28.3   establish such funds and accounts as may be necessary or 
 28.4   convenient to handle the receipts and disbursements of the board 
 28.5   in an orderly fashion. 
 28.6      Subd. 3.  [DEPOSIT AND INVESTMENT.] The money on hand in 
 28.7   said funds and accounts may be deposited in the official 
 28.8   depositories of the board or invested as hereinafter provided. 
 28.9   The amount thereof not currently needed or required by law to be 
 28.10  kept in cash on deposit may be invested in obligations 
 28.11  authorized for the investment of municipal sinking funds by 
 28.12  law.  The money may also be held under certificates of deposit 
 28.13  issued by any official depository of the board.  All investments 
 28.14  by the board must conform to an investment policy adopted by the 
 28.15  board and amended from time to time. 
 28.16     Subd. 4.  [BONDS PROCEEDS.] The use of proceeds of all 
 28.17  bonds issued by the board for the acquisition and betterment of 
 28.18  the district disposal system, and the use, other than 
 28.19  investment, of all money on hand in any sinking fund or funds of 
 28.20  the board, shall be governed by Minnesota Statutes, chapter 475, 
 28.21  this act, and the resolutions authorizing the issuance of the 
 28.22  bonds.  Such bond proceeds when received shall be transferred to 
 28.23  the treasurer of the board for safekeeping, investment, and 
 28.24  payment of the costs for which they were issued. 
 28.25     Subd. 5.  [AUDIT.] The board shall provide for and pay the 
 28.26  cost of an independent annual audit of its official books and 
 28.27  records by the state public examiner or a certified public 
 28.28  accountant. 
 28.29     Sec. 17.  [GENERAL POWERS OF BOARD.] 
 28.30     Subdivision 1.  [ALL NECESSARY OR CONVENIENT POWER.] The 
 28.31  board shall have all powers which may be necessary or convenient 
 28.32  to discharge the duties imposed upon it by law.  The powers 
 28.33  shall include those herein specified, but the express grant or 
 28.34  enumeration of powers does not limit the generality or scope of 
 28.35  the grant of power contained in this subdivision. 
 28.36     Subd. 2.  [SUITS.] The board may sue or be sued. 
 29.1      Subd. 3.  [CONTRACTS.] The board may enter into any 
 29.2   contract necessary or proper for the exercise of its powers of 
 29.3   the accomplishment of its purposes. 
 29.4      Subd. 4.  [RULES.] The board shall have the power to adopt 
 29.5   rules relating to the board's responsibilities and may provide 
 29.6   penalties for the violation thereof not exceeding the maximum 
 29.7   which may be specified for a misdemeanor, and the cost of 
 29.8   prosecution may be added to the penalties imposed.  Any rule 
 29.9   prescribing a penalty for violation shall be published at least 
 29.10  once in a newspaper having general circulation in the district.  
 29.11  Such violations may be prosecuted before any court in the 
 29.12  district having jurisdiction of misdemeanor, and every such 
 29.13  court shall have jurisdiction of such violations.  Any constable 
 29.14  or other peace officer of any municipality in the district may 
 29.15  make arrests for such violations committed anywhere in the 
 29.16  district in like manner and with like effect as for violations 
 29.17  of village ordinances or for statutory misdemeanors.  All fines 
 29.18  collected in such cases shall be deposited in the treasury of 
 29.19  the board, or may be allocated between the board and the 
 29.20  municipality in which such prosecution occurs on such basis as 
 29.21  the board and the municipality agree. 
 29.22     Subd. 5.  [GIFTS; GRANTS.] The board may accept gifts, may 
 29.23  apply for and accept grants or loans of money or other property 
 29.24  from the United States, the state, or any person for any of its 
 29.25  purposes, may enter into any agreement required in connection 
 29.26  herewith, and may hold, use, and dispose of such money or 
 29.27  property in accordance with the terms of the gift, grant, loan, 
 29.28  or agreement relating thereto; and, with respect to any loans or 
 29.29  grants of funds or real or personal property or other assistance 
 29.30  from any state or federal government or any agency or 
 29.31  instrumentality thereof, the board may contract to do and 
 29.32  perform all acts and things required as a condition or 
 29.33  consideration therefore pursuant to state or federal law or 
 29.34  regulations, whether or not included among the powers expressly 
 29.35  granted to the board in this act. 
 29.36     Subd. 6.  [JOINT POWERS.] The board may act under Minnesota 
 30.1   Statutes, section 471.59, or any other appropriate law providing 
 30.2   for joint or cooperative action between government units. 
 30.3      Subd. 7.  [RESEARCH, HEARINGS, INVESTIGATIONS, ADVISE.] The 
 30.4   board may conduct research studies and programs, collect and 
 30.5   analyze data, prepare reports, maps, charts, and tables, and 
 30.6   conduct all necessary hearings and investigations in connection 
 30.7   with the design, construction, and operation of the district 
 30.8   disposal system; and may advise and assist other government 
 30.9   units on system planning matters within the scope of its powers, 
 30.10  duties, and objectives and may provide at the request of any 
 30.11  such governmental unit such other technical and administrative 
 30.12  assistance as the board deems appropriate for the government 
 30.13  unit to carry out the powers and duties vested in the government 
 30.14  unit under this act or imposed on by the board. 
 30.15     Subd. 8.  [EMPLOYEES, CONTRACTORS, INSURANCE.] The board 
 30.16  may employ on such terms as it deems advisable, persons or firms 
 30.17  performing engineering, legal, or other services of a 
 30.18  professional nature; require any employee to obtain and file 
 30.19  with it an individual bond or fidelity insurance policy; and 
 30.20  procure insurance in such amounts as it deems necessary against 
 30.21  liability of the board or its officers or both, for personal 
 30.22  injury or death and property damage or destruction, with the 
 30.23  force and effect stated in Minnesota Statutes, chapter 466, and 
 30.24  against risks of damage to or destruction of any of its 
 30.25  facilities, equipment, or other property as it deems necessary. 
 30.26     Subd. 9.  [PROPERTY.] The board may acquire by purchase, 
 30.27  lease, condemnation, gift, or grant, and real or personal 
 30.28  property including positive and negative easements and water and 
 30.29  air rights, and it may construct, enlarge, improve, replace, 
 30.30  repair, maintain, and operate any interceptor, treatment works, 
 30.31  or water facility determined to be necessary or convenient for 
 30.32  the collection and disposal of sewage in the district.  Any 
 30.33  local government unit and the commissioners of transportation 
 30.34  and natural resources may convey to or permit the use of any 
 30.35  such facilities owned or controlled by it, by the board, subject 
 30.36  to the rights of the holders of any bonds issued with respect 
 31.1   thereto, with or without compensation, without an election or 
 31.2   approval by any other government unit or agency.  All powers 
 31.3   conferred by this subdivision may be exercised both within or 
 31.4   without the district as may be necessary for the exercise by the 
 31.5   board of its powers or the accomplishment of its purposes.  The 
 31.6   board may hold, lease, convey, or otherwise dispose of such 
 31.7   property for its purposes upon such terms and in such manner as 
 31.8   it shall deem advisable.  Unless otherwise provided, the right 
 31.9   to acquire lands and property rights by condemnation shall be 
 31.10  exercised in accordance with Minnesota Statutes, chapter 117, 
 31.11  and shall apply to any property or interest therein owned by any 
 31.12  local government unit; provided, that no such property devoted 
 31.13  to an actual public use at the time, or held to be devoted to 
 31.14  such use within a reasonable time, shall be so acquired unless a 
 31.15  court of competent jurisdiction shall determine that the use 
 31.16  proposed by the board is paramount to such use.  Except in case 
 31.17  of property in actual public use, the board may take possession 
 31.18  of any property of which condemnation proceedings have been 
 31.19  commenced at any time after the issuance of a court order 
 31.20  appointing commissioners for its condemnation. 
 31.21     Subd. 10.  [RIGHTS-OF-WAY.] The board may construct or 
 31.22  maintain its systems or facilities in, along, on, under, over, 
 31.23  or through public waters, streets, bridges, viaducts, and other 
 31.24  public right-of-way without first obtaining a franchise from any 
 31.25  county or local government unit having jurisdiction over them; 
 31.26  but such facilities shall be constructed and maintained in 
 31.27  accordance with the ordinances and resolutions of any such 
 31.28  county or government unit relating to construction, 
 31.29  installation, and maintenance of similar facilities on such 
 31.30  public properties and shall not unnecessarily obstruct the 
 31.31  public use of such rights-of-way. 
 31.32     Subd. 11.  [DISPOSAL OF PROPERTY.] The board may sell, 
 31.33  lease, or otherwise dispose of any real or personal property 
 31.34  acquired by it which is no longer required for accomplishment of 
 31.35  its purposes.  Such property may be sold in the manner provided 
 31.36  by Minnesota Statutes, section 469.065, insofar as practical.  
 32.1   The board may give such notice of sale as it shall deem 
 32.2   appropriate.  When the board determines that any property or any 
 32.3   part of the district disposal system which has been acquired 
 32.4   from a local government unit without compensation is no longer 
 32.5   required but is required as a local facility by the government 
 32.6   unit from which it was acquired, the board may by resolution 
 32.7   transfer it to such government unit. 
 32.8      Subd. 12.  [JOINT OPERATIONS.] The board may contract with 
 32.9   the United States or any agency thereof, any state or agency 
 32.10  thereof, or any regional public planning body in the state with 
 32.11  jurisdiction over any part of the district, or any other 
 32.12  municipal or public corporation, or governmental subdivision in 
 32.13  any state, for the joint use of any facility owned by the board 
 32.14  or such entity, for the operation by such entity of any system 
 32.15  or facility of the board, or for the performance on the board's 
 32.16  behalf of any service including, but not limited to, planning, 
 32.17  on such terms as may be agreed upon by the contracting parties.  
 32.18  Unless designated by the board as a local sanitary sewer 
 32.19  facility, any treatment works or interceptor jointly used, or 
 32.20  operated on behalf of the board, as provided in this 
 32.21  subdivision, shall be deemed to be operated by the board for 
 32.22  purposes of including said facilities in the district disposal 
 32.23  system. 
 32.24     Sec. 18.  [LOCAL FACILITIES.] 
 32.25     Subdivision 1.  [SANITARY SEWER FACILITIES.] Except as 
 32.26  otherwise provided in this act, local government units shall 
 32.27  retain responsibility for the planning, design, acquisition, 
 32.28  betterment, operation, administration, and maintenance of all 
 32.29  local sanitary sewer facilities as provided by law. 
 32.30     Subd. 2.  [ASSUMPTION OF RESPONSIBILITY OVER LOCAL SANITARY 
 32.31  SEWER FACILITIES.] The board shall upon request of any 
 32.32  government unit or units assume either alone or jointly with the 
 32.33  local government unit all or any part of the responsibility of 
 32.34  the local government unit described in subdivision 1.  Except as 
 32.35  provided in subdivision 4 and for the purpose of exercising such 
 32.36  responsibility, the board shall have all the powers and duties 
 33.1   elsewhere conferred in this act with the same force and effect 
 33.2   as if such local sanitary sewer facilities were a part of the 
 33.3   district disposal system. 
 33.4      Subd. 3.  [WATER AND STREET FACILITIES.] The board may, 
 33.5   upon request of any governmental unit or units, enter into an 
 33.6   agreement under which the board may assume either alone or 
 33.7   jointly with such unit or units, the responsibility for the 
 33.8   acquisition and construction of water and street facilities in 
 33.9   conjunction with (1) any project for the acquisition or 
 33.10  betterment of the district disposal system, or (2) any project 
 33.11  undertaken by the board under subdivision 2.  Except as provided 
 33.12  in subdivision 4, and for the purpose of exercising any 
 33.13  responsibilities pursuant to this subdivision, the board shall 
 33.14  have all the powers and duties elsewhere conferred in this act 
 33.15  with the same force and effect as if such water or street 
 33.16  facilities were a part of the district disposal system. 
 33.17     Subd. 4.  [ALLOCATION OF CURRENT COSTS.] All current costs 
 33.18  attributable to responsibilities assumed by the board over local 
 33.19  sanitary sewer facilities and water and street facilities as 
 33.20  provided in this section shall be allocated solely to the local 
 33.21  unit for or with whom such responsibilities are assumed on such 
 33.22  terms and over such period as the board determines to be 
 33.23  equitable and in the best interest of the district, provided 
 33.24  that if two or more government units form a region in accordance 
 33.25  with this section, all or part of such current costs 
 33.26  attributable to the region shall at the request of its joint 
 33.27  board be allocated to the region and provided in the agreement 
 33.28  establishing the region. 
 33.29     Subd. 5.  [PART OF DISTRICT SYSTEM.] Nothing contained in 
 33.30  this section or in any other part of this act shall be construed 
 33.31  to prevent the board from including, where appropriate, 
 33.32  treatment works or interceptors, previously designated or 
 33.33  treated as local sanitary sewer facilities as a part of the 
 33.34  district disposal system. 
 33.35     Sec. 19.  [SERVICE CONTRACTS WITH GOVERNMENTS OUTSIDE 
 33.36  DISTRICT.] 
 34.1      The board may contract with the United States or any agency 
 34.2   thereof, any state or any agency thereof, or any municipal or 
 34.3   public corporation, governmental subdivision or agency or 
 34.4   political subdivision in any state, outside the jurisdiction of 
 34.5   the board, for furnishing to such entities any services which 
 34.6   the board may furnish to local government units in the district 
 34.7   under this act including, but not limited to, planning for and 
 34.8   the acquisition, betterment, operation, administration, and 
 34.9   maintenance of any or all interceptors, treatment works, and 
 34.10  local sanitary sewer facilities, provided that the board may 
 34.11  further include as one of the terms of the contract that such 
 34.12  entity also pay to the board such amount as may be agreed upon 
 34.13  as a reasonable estimate of the proportionate share properly 
 34.14  allocable to the entity of costs of acquisition, betterment, and 
 34.15  debt service previously allocated to local government units in 
 34.16  the district.  When such payments are made by such entities to 
 34.17  the board, they shall be applied in reduction of the total 
 34.18  amount of costs thereafter allocated to each local government 
 34.19  unit in the district, on such equitable basis as the board deems 
 34.20  to be in the best interest of the district.  Any municipality in 
 34.21  the state of Minnesota may enter into such contract and perform 
 34.22  all acts and things required as a condition or consideration 
 34.23  therefore consistent with the purpose of this act, whether or 
 34.24  not included among the powers otherwise granted to such 
 34.25  municipality by law or charter, such powers to include those 
 34.26  powers set out in section 10, subdivisions 3, 3a, and 4. 
 34.27     Sec. 20.  [CONTRACTS FOR CONSTRUCTION, MATERIALS, SUPPLIES, 
 34.28  AND EQUIPMENT.] 
 34.29     Subdivision 1.  [PLANS AND SPECIFICATIONS.] When the board 
 34.30  orders a project involving the acquisition or betterment of a 
 34.31  part of the district disposal system it shall cause plans and 
 34.32  specifications of this project to be made, or if previously 
 34.33  made, to be modified, if necessary, and to be approved by the 
 34.34  agency if required, and after any required approval by the 
 34.35  agency, one or more contracts for work and materials called for 
 34.36  by such plans and specification may be awarded as provided in 
 35.1   this section. 
 35.2      Subd. 2.  [UNIFORM MUNICIPAL CONTRACTING LAW.] Except as 
 35.3   otherwise provided in this section, all contracts for work to be 
 35.4   done or for purchases of materials, supplies, or equipment shall 
 35.5   be done in accordance with Minnesota Statutes, section 471.345. 
 35.6      Subd. 3.  [CONTRACTS OR PURCHASES.] The board may, without 
 35.7   advertising for bids, enter into any contract or purchase any 
 35.8   materials, supplies, or equipment of the type referred to in 
 35.9   subdivision 2 in accordance with applicable state law. 
 35.10     Sec. 21.  [ANNEXATION OF TERRITORY.] 
 35.11     Any municipality in Douglas county or Pope county, upon 
 35.12  resolution adopted by a four-fifths vote of its governing body, 
 35.13  may petition the board for annexation to the district of the 
 35.14  area then comprising the municipality, or any part thereof and, 
 35.15  if accepted by the board, such area shall be deemed annexed to 
 35.16  the district and subject to the jurisdiction of the board under 
 35.17  the terms and provisions of this act.  The territory so annexed 
 35.18  shall be subject to taxation and assessment pursuant to the 
 35.19  provisions of this act and shall be subject to taxation by the 
 35.20  board like other property in the district for the payment of 
 35.21  principal and interest thereafter becoming due on general 
 35.22  obligations of the board, whether authorized or issued before or 
 35.23  after such annexation.  The board may, in its discretion, 
 35.24  condition approval of the annexation upon the contribution, by 
 35.25  or on behalf of the municipality petitioning for annexation, to 
 35.26  the board of such amount as may be agreed upon as being a 
 35.27  reasonable estimate of the proportionate share, properly 
 35.28  allocable to the municipality, of costs or acquisition, 
 35.29  betterment, and debt service previously allocated to local 
 35.30  government units in the district, on such terms as may be agreed 
 35.31  upon; and in place of or in addition thereto such other and 
 35.32  further conditions as the board deems in the best interests of 
 35.33  the district.  Notwithstanding any other provisions of this act 
 35.34  to the contrary, the conditions established for annexation may 
 35.35  include the requirement that the annexed municipality pay for, 
 35.36  contract for, and oversee the construction of local sanitary 
 36.1   sewer facilities and interceptor sewers as those terms are 
 36.2   defined in section 2.  For the purpose of paying such 
 36.3   contribution or of satisfying any other condition established by 
 36.4   the board, the municipality petitioning annexation may exercise 
 36.5   the powers conferred in section 10.  When such contributions are 
 36.6   made by the municipality to the board, they shall be applied in 
 36.7   reduction of the total amount of costs thereafter allocated to 
 36.8   each local government unit in the district, on such equitable 
 36.9   basis as the board deems to be in the best interests of the 
 36.10  district, applying so far as practicable and appropriate the 
 36.11  criteria set forth in section 9, subdivision 2.  Upon annexation 
 36.12  of such territory, the secretary of the board shall certify to 
 36.13  the auditor and treasurer of the county in which the 
 36.14  municipality is located the fact of such annexation and a legal 
 36.15  description of the territory annexed. 
 36.16     Sec. 22.  [PROPERTY EXEMPT FROM TAXATION.] 
 36.17     Any properties, real or personal, owned, leased, 
 36.18  controlled, used, or occupied by the sanitary sewer board for 
 36.19  any purpose under this act are declared to be acquired, owned, 
 36.20  leased, controlled, used, and occupied for public, governmental, 
 36.21  and municipal purposes, and are exempt from taxation by the 
 36.22  state or any political subdivision of the state, provided that 
 36.23  such properties are subject to special assessments levied by a 
 36.24  political subdivision for a local improvement in amounts 
 36.25  proportionate to and not exceeding the special benefit received 
 36.26  by the properties from such improvement.  No possible use of any 
 36.27  such properties in any manner different from their use as part 
 36.28  of the disposal system at the time shall be considered in 
 36.29  determining the special benefit received by such properties.  
 36.30  All such assessments shall be subject to final approval by the 
 36.31  board, whose determination of the benefits shall be conclusive 
 36.32  upon the political subdivision levying the assessment.  All 
 36.33  bonds, certificates of indebtedness, or other obligations of the 
 36.34  board, and the interest thereon, are exempt from taxation by the 
 36.35  state or any political subdivision of the state. 
 36.36     Sec. 23.  [RELATION TO EXISTING LAWS.] 
 37.1      This act prevails over any law or charter inconsistent with 
 37.2   it.  The powers conferred on the board under this act do not 
 37.3   diminish or supersede the powers conferred on the agency by 
 37.4   Minnesota Statutes, chapters 115 and 116. 
 37.5      Sec. 24.  [APPLICATION; NO LOCAL APPROVAL.] 
 37.6      This act applies to the city of Farwell in Pope county and 
 37.7   the city of Kensington in Douglas county.  Local consent is not 
 37.8   required.