HF 1297
1st Committee Engrossment - 86th Legislature (2009 - 2010)
Posted on 03/19/2013 07:28 p.m.
KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers
1.1A bill for an act
1.2relating to local government; amending the municipal boundary adjustment law;
1.3amending Minnesota Statutes 2008, sections 414.011, by adding a subdivision;
1.4414.033, subdivisions 2, 12; 414.036.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2008, section 414.011, is amended by adding a
1.7subdivision to read:
1.8 new text begin Subd. 13.new text end new text begin Urban or suburban in character.new text end new text begin "Urban or suburban in character" new text end
1.9new text begin means any area, property, or collection of properties where actual or planned residential new text end
1.10new text begin densities exceed on average one unit per two and one-half acres or any area where actual new text end
1.11new text begin or planned governmental, institutional, commercial, or industrial development exists, new text end
1.12new text begin excluding industrial development that is appropriate for rural settings such as those new text end
1.13new text begin connected with agricultural, forestry, mining, or energy production industries.new text end
1.14 Sec. 2. Minnesota Statutes 2008, section 414.033, subdivision 2, is amended to read:
1.15 Subd. 2. Conditions. new text begin (a) new text end A municipal council may by ordinance declare land
1.16annexed to the municipality and any such land is deemed to be urban or suburban in
1.17character or about to become so if:
1.18 (1) the land is owned by the municipality;
1.19 (2) the land is completely surrounded by land within the municipal limits;
1.20 (3) the land abuts the municipality and the area to be annexed is 120 acres or less,
1.21and the area to be annexed is not presently served by public wastewater facilities or
1.22public wastewater facilities are not otherwise available, and the municipality receives a
1.23petition for annexation from all the property owners of the land. Except as provided for
2.1by an orderly annexation agreement, this clause may not be used to annex any property
2.2contiguous to any property previously annexed under this clause within the preceding 12
2.3months if the property is owned by the same owners and annexation would cumulatively
2.4exceed 120 acres; or
2.5 (4) the land has been approved after August 1, 1995, by a preliminary plat or final
2.6plat for subdivision to provide residential lots that average 21,780 square feet or less in
2.7area and the land is located within two miles of the municipal limits.
2.8new text begin (b) A municipality also may annex by ordinance unincorporated territory that abuts new text end
2.9new text begin the municipality under the procedures in this paragraph.new text end
2.10new text begin (1) The municipality must adopt a resolution of consideration and file it with the new text end
2.11new text begin Office of Administrative Hearings, the clerk of the county where the property is located, new text end
2.12new text begin and the clerk of the affected township at least 90 days before the municipality may enact new text end
2.13new text begin an annexation ordinance. The resolution must include a statement of the municipality's new text end
2.14new text begin intent to annex under this paragraph and a legal description of the area to be annexed.new text end
2.15new text begin (2) After the adoption of the resolution of consideration the municipality must new text end
2.16new text begin update its comprehensive plan to include the area proposed for annexation and must new text end
2.17new text begin prepare a report detailing the urban characteristics of the area and a plan for the provision new text end
2.18new text begin of urban services. The report and service plan must include:new text end
2.19new text begin (i) a map showing the area proposed for annexation and its relation to current new text end
2.20new text begin municipal boundaries;new text end
2.21new text begin (ii) a description of the general physical land use pattern, current and proposed new text end
2.22new text begin land uses, current and proposed land use controls, service needs, projected growth, new text end
2.23new text begin environmental conditions, and current and future transportation needs within the proposed new text end
2.24new text begin annexation area;new text end
2.25new text begin (iii) plans for the provision of water and sewer services including a schedule of new text end
2.26new text begin when services would be extended to the annexation area;new text end
2.27new text begin (iv) a plan for the extension of public safety services such as police and fire new text end
2.28new text begin protection;new text end
2.29new text begin (v) a plan for the extension of other municipal services such as recreation, street new text end
2.30new text begin maintenance, and administration; andnew text end
2.31new text begin (vi) an updated comprehensive plan that does not allow residential densities in the new text end
2.32new text begin annexation area that are less than what is already in effect for the existing residential new text end
2.33new text begin parts of the municipality.new text end
2.34new text begin (3) The updated comprehensive plan, report, and service plan must be completed at new text end
2.35new text begin least 30 days before a public hearing is held on the proposed annexation. Copies of the new text end
3.1new text begin plans must be sent to the Office of Administrative Hearings and the affected town, and new text end
3.2new text begin must also be made available at city hall for public inspection and copying.new text end
3.3new text begin (4) After the compilation of the report required under clause (2), the municipality new text end
3.4new text begin must fix a date for a public hearing on the question of annexation. The municipality new text end
3.5new text begin must publish notice in a newspaper of general circulation at least ten days before the new text end
3.6new text begin hearing. The municipality must also send a notice of the public hearing to the town clerk new text end
3.7new text begin of the affected township and to all property owners within and contiguous to the proposed new text end
3.8new text begin annexation area. Notice must be given to the town clerk of the affected township and the new text end
3.9new text begin property owners no later than 14 days before the public hearing.new text end
3.10new text begin (5) At the public hearing the municipality shall present its findings and new text end
3.11new text begin recommendations and hear public testimony on the question of annexation. All persons new text end
3.12new text begin appearing must have an opportunity to be heard at least once. The governing body of the new text end
3.13new text begin municipality also may accept written comments on the question of annexation at that time new text end
3.14new text begin and for ten days following the public hearing.new text end
3.15new text begin (6) After the public hearing and before enacting an annexation ordinance under this new text end
3.16new text begin paragraph, the governing body of the municipality must make the following findings:new text end
3.17new text begin (i) the proposed annexation area is contiguous to the municipality's boundaries;new text end
3.18new text begin (ii) the proposed annexation area is developed or is planned to be developed with new text end
3.19new text begin residential lots averaging two and one-half acres or less, or the area is or is planned to be new text end
3.20new text begin developed for commercial, industrial, governmental, or institutional uses; andnew text end
3.21new text begin (iii) the municipality is capable of extending services in a manner consistent with the new text end
3.22new text begin municipality's service plan in a reasonable time.new text end
3.23new text begin (7) Upon making the findings required by clause (6), the municipality may enact the new text end
3.24new text begin annexation ordinance declaring the land to be annexed to the municipality.new text end
3.25 Sec. 3. Minnesota Statutes 2008, section 414.033, subdivision 12, is amended to read:
3.26 Subd. 12. Property taxes. When a municipality annexes land under subdivision
3.272, new text begin paragraph (a), new text end clause (2), (3), or (4), new text begin or paragraph (b), new text end property taxes payable on the
3.28annexed land shall continue to be paid to the affected town or towns for the year in which
3.29the annexation becomes effective. If the annexation becomes effective on or before
3.30August 1 of a levy year, the municipality may levy on the annexed area beginning with
3.31that same levy year. If the annexation becomes effective after August 1 of a levy year, the
3.32town may continue to levy on the annexed area for that levy year, and the municipality
3.33may not levy on the annexed area until the following levy year.
4.1 Sec. 4. Minnesota Statutes 2008, section 414.036, is amended to read:
4.2414.036 CITY REIMBURSEMENT new text begin LIMITATION ON PAYMENTS new text end TO
4.3TOWN TO ANNEX TAXABLE PROPERTY.
4.4 new text begin Subdivision 1.new text end new text begin Orderly annexation.new text end Unless otherwise agreed to by the annexing
4.5municipality and the affected town, When an order or other approval under this chapternew text begin new text end
4.6new text begin section 414.0325new text end annexes part of a town to a municipality, the order or other approval
4.7must provide a reimbursement from the municipality to the town for all or part of the
4.8taxable property annexed new text begin at the town tax rate at the time of annexation new text end as part of the
4.9order. The reimbursement shall be completed in substantially equal payments over not
4.10less than two nor more than eight years from the time of annexation. The municipality
4.11must reimburse the township for all special assessments assigned by the township to the
4.12annexed propertynew text begin that are received by the municipalitynew text end , and any portion of debt incurred
4.13by the town prior to the annexation and attributable to the property to be annexed but
4.14for which no special assessments are outstanding, new text begin provided the town makes a written new text end
4.15new text begin request and includes supporting documentation to the municipality within 60 days of the new text end
4.16new text begin order. Reimbursement for debt attributable to the annexed property must either be paid new text end
4.17new text begin by the municipality new text end in substantially equal payments over a period of not less than two or
4.18no more than eight yearsnew text begin or upon the same terms as the debt was incurred by the town. new text end
4.19new text begin Reimbursement for special assessments must be paid to the town within 30 days of receipt new text end
4.20new text begin of assessment payments by the municipality from the county or property ownernew text end .
4.21 new text begin Subd. 2.new text end new text begin Annexation by ordinance.new text end new text begin When a municipality adopts an ordinance new text end
4.22new text begin under section 414.033 annexing part of a town to a municipality, the ordinance must new text end
4.23new text begin provide a reimbursement from the municipality to the town for the loss of taxes from the new text end
4.24new text begin property annexed for the period and in accordance with the following schedule:new text end
4.25new text begin (1) in the first levy year following the year when the annexing municipality could new text end
4.26new text begin first levy on the annexed area, the municipality must make a cash payment to the affected new text end
4.27new text begin town in an amount equal to 90 percent of the property taxes distributed to the town new text end
4.28new text begin in regard to the annexed area in the last year the property taxes from the annexed area new text end
4.29new text begin were payable to the town;new text end
4.30new text begin (2) in the second year, an amount equal to 80 percent;new text end
4.31new text begin (3) in the third year, an amount equal to 60 percent;new text end
4.32new text begin (4) in the fourth year, an amount equal to 40 percent; andnew text end
4.33new text begin (5) in the fifth and final year, an amount equal to 20 percent.new text end
4.34 new text begin Subd. 3.new text end new text begin Exclusive.new text end new text begin The reimbursements authorized in this section are the only new text end
4.35new text begin payments or consideration that can be made by a municipality to a town under this chapter.new text end