2nd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 04/07/2003 | |
1st Engrossment | Posted on 05/13/2003 | |
2nd Engrossment | Posted on 05/15/2003 |
1.1 A bill for an act 1.2 relating to public finance; providing for public 1.3 finance instrumentalities and instruments; 1.4 authorizing, validating, expanding, limiting, and 1.5 clarifying public financing and economic development 1.6 structures, instruments, and procedures for local 1.7 public entities; amending Minnesota Statutes 2002, 1.8 sections 373.45, subdivision 1; 373.47, subdivision 1; 1.9 376.009; 376.55, subdivision 3, by adding a 1.10 subdivision; 376.56, subdivision 3; 469.103, 1.11 subdivision 2; 469.1813, subdivision 8; 473.39, by 1.12 adding a subdivision; 473.898, subdivision 3; 1.13 474A.061, subdivision 1; 475.58, subdivision 3b; Laws 1.14 1967, chapter 558, section 1, subdivision 5, as 1.15 amended; Laws 1989, chapter 211, section 8, 1.16 subdivision 2, as amended; Laws 1989, chapter 211, 1.17 section 8, subdivision 4, as amended; proposing coding 1.18 for new law in Minnesota Statutes, chapter 469. 1.19 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.20 ARTICLE 1 1.21 Section 1. Minnesota Statutes 2002, section 373.45, 1.22 subdivision 1, is amended to read: 1.23 Subdivision 1. [DEFINITIONS.] (a) As used in this section, 1.24 the following terms have the meanings given. 1.25 (b) "Authority" means the Minnesota public facilities 1.26 authority. 1.27 (c) "Commissioner" means the commissioner of finance. 1.28 (d) "Debt obligation" means a general obligation bond 1.29 issued by a county, or a bond payable from a county lease 1.30 obligation under section 641.24, to provide funds for the 1.31 construction of: 1.32 (1) jails; 2.1 (2) correctional facilities; 2.2 (3) law enforcement facilities; 2.3 (4) social services and human services facilities; or 2.4 (5) solid waste facilities. 2.5 Sec. 2. Minnesota Statutes 2002, section 373.47, 2.6 subdivision 1, is amended to read: 2.7 Subdivision 1. [AUTHORITY TO INCUR DEBT.](a)Subject to 2.8 prior approval by the public safety radio system planning 2.9 committee under section 473.907, the governing body of a county 2.10 may finance the cost of designing, constructing, and acquiring 2.11 public safety communication system infrastructure and equipment 2.12 for use on the statewide, shared public safety radio system by 2.13 issuing: 2.14 (1) capital improvement bonds under section 373.40, as if 2.15 the infrastructure and equipment qualified as a "capital 2.16 improvement" within the meaning of section 373.40, subdivision 2.17 1, paragraph (b); and 2.18 (2) capital notes under the provisions of section 373.01, 2.19 subdivision 3, as if the equipment qualified as "capital 2.20 equipment" within the meaning of section 373.01, subdivision 3. 2.21(b) For purposes of this section, "county" means the2.22following counties: Anoka, Benton, Carver, Chisago, Dakota,2.23Dodge, Fillmore, Freeborn, Goodhue, Hennepin, Houston, Isanti,2.24Mower, Olmsted, Ramsey, Rice, Scott, Sherburne, Steele, Wabasha,2.25Washington, Wright, and Winona.2.26(c) The authority to incur debt under this section is not2.27effective until July 1, 2003, for the following counties:2.28Benton, Dodge, Fillmore, Freeborn, Goodhue, Houston, Mower,2.29Olmsted, Rice, Sherburne, Steele, Wabasha, Wright, and Winona.2.30 Sec. 3. Minnesota Statutes 2002, section 376.009, is 2.31 amended to read: 2.32 376.009 [COUNTY HOSPITAL DEFINED; MAY HAVE MANY BUILDINGS, 2.33 SITES.] 2.34 For the purposes of sections 376.01 to 376.06, "county 2.35 hospital" means any hospital owned or operated by a county which 2.36 may consist of any number of buildings at one location or any 3.1 number of buildings at different locations within the 3.2 county. The county board of any county that has not established 3.3 a county hospital may by resolution authorize a statutory or 3.4 home rule charter city and its city council to exercise the 3.5 powers of a county and the county board under sections 376.01 to 3.6 376.07, in which case references in sections 376.01 to 376.07 to 3.7 "county" and "county board" refer to the city so designated and 3.8 its governing body, respectively. 3.9 Sec. 4. Minnesota Statutes 2002, section 376.55, 3.10 subdivision 3, is amended to read: 3.11 Subd. 3. [FINANCING.] The county board may transfer 3.12 surplus funds from any fund except the road and bridge, sinking 3.13 or drainage ditch funds for the purpose of 3.14 establishing, acquiring, maintaining, enlarging, or adding to a 3.15 county nursing home. When surplus funds are not available for 3.16 transfer, a county board may issue bonds to pay the cost of 3.17 establishing, acquiring, equipping, furnishing, enlarging, or 3.18 adding to a county nursing home, subject to section 376.56. 3.19 Sec. 5. Minnesota Statutes 2002, section 376.55, is 3.20 amended by adding a subdivision to read: 3.21 Subd. 7. [CITY POWERS.] The county board of any county 3.22 that has not established a nursing home may by resolution 3.23 authorize a statutory or home rule charter city to exercise the 3.24 powers of a county under sections 376.55 to 376.60. A city so 3.25 designated may exercise within its boundaries all the powers of 3.26 a county under sections 376.55 to 376.60. 3.27 Sec. 6. Minnesota Statutes 2002, section 376.56, 3.28 subdivision 3, is amended to read: 3.29 Subd. 3. [CHAPTER 475 BONDS.] Bonds issued under section 3.30 376.55, subdivision 3, may be general obligations of the county 3.31 and may be issued and sold, and taxes levied for their payment 3.32 as provided under chapter 475. No election shall be required to 3.33 authorize the bond issue for acquiring, improving, remodeling, 3.34 or replacing an existing nursing home without increasing the 3.35 total number of accommodations for residents in all nursing 3.36 homes in the county. The revenues of the nursing home shall 4.1 also be pledged for the payment of the bonds and for any 4.2 interest and premium. Part of the proceeds may be deposited in 4.3 the debt service fund for the issue, to capitalize interest and 4.4 create a reserve to reduce or eliminate the tax otherwise 4.5 required by section 475.61 to be levied before issuing the 4.6 bonds. The remaining proceeds from the sale of the bonds and 4.7 any surplus funds transferred under section 376.55, subdivision 4.8 3 must be credited to and deposited in the county nursing home 4.9 building fund of the county in which the nursing home is located. 4.10 Sec. 7. [469.0772] [KOOCHICHING COUNTY; PORT AUTHORITY.] 4.11 Subdivision 1. [AUTHORITY TO ESTABLISH.] The governing 4.12 body of the county of Koochiching may establish a port authority 4.13 that has the same powers as a port authority established under 4.14 section 469.049. If the county establishes a port authority, 4.15 the governing body of the county shall exercise all powers 4.16 granted to a city by sections 469.048 to 469.068 or other law. 4.17 Any city in Koochiching county may participate in the activities 4.18 of the county port authority under terms jointly agreed to by 4.19 the city and county. 4.20 Subd. 2. [FOREIGN TRADE ZONE.] Koochiching county or any 4.21 city, town, or other political subdivision located in 4.22 Koochiching county may apply to the board defined in United 4.23 States Code, title 19, section 81a, for the right to use the 4.24 powers provided in United States Code, title 19, sections 81a 4.25 and 81u. If the right is granted the city, town, or other 4.26 political subdivision may use the powers within or outside of a 4.27 port district. The county, a city, town, or other political 4.28 subdivision may apply jointly with any other city, town, or 4.29 political subdivision located in Koochiching county. 4.30 Sec. 8. Minnesota Statutes 2002, section 469.103, 4.31 subdivision 2, is amended to read: 4.32 Subd. 2. [FORM.] The bonds of each series issued by the 4.33 authority under this section shall bear interest at a rate or 4.34 rates, shall mature at the time or times within2030 years from 4.35 the date of issuance, and shall be in the form, whether payable 4.36 to bearer, registrable as to principal, or fully registrable, as 5.1 determined by the authority. Section 469.102, subdivision 6, 5.2 applies to all bonds issued under this section, and the bonds 5.3 and their coupons, if any, when payable to bearer, shall be 5.4 negotiable instruments. 5.5 Sec. 9. Minnesota Statutes 2002, section 469.1813, 5.6 subdivision 8, is amended to read: 5.7 Subd. 8. [LIMITATION ON ABATEMENTS.] In any year, the 5.8 total amount of property taxes abated by a political subdivision 5.9 under this section may not exceed (1)fiveten percent of the 5.10 current levy, or (2)$100,000$200,000, whichever is greater. 5.11 Sec. 10. Minnesota Statutes 2002, section 473.39, is 5.12 amended by adding a subdivision to read: 5.13 Subd. 1j. [OBLIGATIONS.] After July 1, 2003, in addition 5.14 to the authority in subdivision 1a, 1b, 1c, 1d, 1e, 1g, 1h, and 5.15 1i, the council may issue certificates of indebtedness, bonds, 5.16 or other obligations under this section in an amount not 5.17 exceeding $45,000,000 for capital expenditures as prescribed in 5.18 the council's regional transit master plan and transit capital 5.19 improvement program and for related costs, including the costs 5.20 of issuance and sale of the obligations. 5.21 Sec. 11. [APPLICATION.] 5.22 Section 10 applies to the counties of Anoka, Carver, 5.23 Dakota, Hennepin, Ramsey, Scott, and Washington. 5.24 Sec. 12. Minnesota Statutes 2002, section 473.898, 5.25 subdivision 3, is amended to read: 5.26 Subd. 3. [LIMITATIONS.] (a) The principal amount of the 5.27 bonds issued pursuant to subdivision 1, exclusive of any 5.28 original issue discount, shall not exceed the amount of 5.29 $10,000,000 plus the amount the council determines necessary to 5.30 pay the costs of issuance, fund reserves, debt service, and pay 5.31 for any bond insurance or other credit enhancement. 5.32 (b) In addition to the amount authorized under paragraph 5.33 (a), the council may issue bonds under subdivision 1 in a 5.34 principal amount of $3,306,300, plus the amount the council 5.35 determines necessary to pay the cost of issuance, fund reserves, 5.36 debt service, and any bond insurance or other credit 6.1 enhancement. The proceeds of bonds issued under this paragraph 6.2 may not be used to finance portable or subscriber radio sets. 6.3 (c) In addition to the amount authorized under paragraphs 6.4 (a) and (b), the council may issue bonds under subdivision 1 in 6.5 a principal amount of $12,000,000, plus the amount the council 6.6 determines necessary to pay the costs of issuance, fund 6.7 reserves, debt service, and any bond insurance or other credit 6.8 enhancement. The proceeds of bonds issued under this paragraph 6.9 must be used to pay up to 30 percent of the cost to a local 6.10 government unit of building a subsystem and may not be used to 6.11 finance portable or subscriber radio sets. The bond proceeds 6.12 may be used to make improvements to an existing 800 MHz radio 6.13 system that will interoperate with the regionwide public safety 6.14 radio communication system, provided that the improvements 6.15 conform to the board's plan and technical standards. The 6.16 council must time the sale and issuance of the bonds so that the 6.17 debt service on the bonds can be covered by the additional 6.18 revenue that will become available in the fiscal year ending 6.19 June 30, 2005, generated under section 403.11 and appropriated 6.20 under section 473.901. 6.21 Sec. 13. Minnesota Statutes 2002, section 474A.061, 6.22 subdivision 1, is amended to read: 6.23 Subdivision 1. [ALLOCATION APPLICATION.] (a) An issuer may 6.24 apply for an allocation under this section by submitting to the 6.25 department an application on forms provided by the department, 6.26 accompanied by (1) a preliminary resolution, (2) a statement of 6.27 bond counsel that the proposed issue of obligations requires an 6.28 allocation under this chapter and the Internal Revenue Code, (3) 6.29 the type of qualified bonds to be issued, (4) an application 6.30 deposit in the amount of one percent of the requested allocation 6.31 before the last Monday in July, or in the amount of two percent 6.32 of the requested allocation on or after the last Monday in July, 6.33 (5) a public purpose scoring worksheet for manufacturing project 6.34 and enterprise zone facility project applications, and (6) for 6.35 residential rental projects, a statement from the applicant or 6.36 bond counsel as to whether the project preserves existing 7.1 federally subsidized housing for residential rental project 7.2 applications and whether the project is restricted to persons 7.3 who are 55 years of age or older. The issuer must pay the 7.4 application deposit by a check made payable to the department of 7.5 finance. The Minnesota housing finance agency, the Minnesota 7.6 rural finance authority, and the Minnesota higher education 7.7 services office may apply for and receive an allocation under 7.8 this section without submitting an application deposit. 7.9 (b) An entitlement issuer may not apply for an allocation 7.10 from thehousing pool or from thepublic facilities pool unless 7.11 it has either permanently issued bonds equal to the amount of 7.12 its entitlement allocation for the current year plus any amount 7.13 of bonding authority carried forward from previous years or 7.14 returned for reallocation all of its unused entitlement 7.15 allocation. An entitlement issuer may not apply for an 7.16 allocation from the housing pool unless it either has 7.17 permanently issued bonds equal to any amount of bonding 7.18 authority carried forward from a previous year or has returned 7.19 for reallocation all of its unused entitlement allocation. For 7.20 purposes of this subdivision, its entitlement allocation 7.21 includes an amount obtained under section 474A.04, subdivision 7.22 6. This paragraph does not apply to an application from the 7.23 Minnesota housing finance agency for an allocation under 7.24 subdivision 2a for cities who choose to have the agency issue 7.25 bonds on their behalf. 7.26 (c) If an application is rejected under this section, the 7.27 commissioner must notify the applicant and return the 7.28 application deposit to the applicant within 30 days unless the 7.29 applicant requests in writing that the application be 7.30 resubmitted. The granting of an allocation of bonding authority 7.31 under this section must be evidenced by a certificate of 7.32 allocation. 7.33 Sec. 14. Minnesota Statutes 2002, section 475.58, 7.34 subdivision 3b, is amended to read: 7.35 Subd. 3b. [STREET RECONSTRUCTION.] (a) A municipality may, 7.36 without regard to the election requirement under subdivision 1, 8.1 issue and sell obligations for street reconstruction, if the 8.2 following conditions are met: 8.3 (1) the streets are reconstructed under a street 8.4 reconstruction plan that describes the streets to be 8.5 reconstructed, the estimated costs, and any planned 8.6 reconstruction of other streets in the municipality over the 8.7 next five years, and the plan and issuance of the obligations 8.8 has been approved by a vote of all of the members of the 8.9 governing body following a public hearing for which notice has 8.10 been published in the official newspaper at least ten days but 8.11 not more than 28 days prior to the hearing; and 8.12 (2) if a petition requesting a vote on the issuance is 8.13 signed by voters equal to five percent of the votes cast in the 8.14 last municipal general election and is filed with the municipal 8.15 clerk within 30 days of the public hearing, the municipality may 8.16 issue the bonds only after obtaining the approval of a majority 8.17 of the voters voting on the question of the issuance of the 8.18 obligations. 8.19 (b) Obligations issued under this subdivision are subject 8.20 to the debt limit of the municipality and are not excluded from 8.21 net debt under section 475.51, subdivision 4. 8.22 For purposes of this subdivision, street reconstruction includes 8.23 utility replacement and relocation, public safety street 8.24 modifications, and other activities incidental to the street 8.25 reconstruction, but does not include the portion of project cost 8.26 allocable to adding curbs and gutters where none previously 8.27 existed. 8.28 Sec. 15. [CORPORATE STATUS FOR CERTAIN FEDERAL TAX LAW.] 8.29 For purposes of section 1.103-1 of the federal income tax 8.30 regulations, Lewis and Clark Rural Water System, Inc. is hereby 8.31 recognized as a corporation authorized to act on behalf of its 8.32 members, including its Minnesota member governmental units, to 8.33 provide drinking water to their communities and to issue debt 8.34 obligations in its own name on behalf of some or all of its 8.35 members, provided that Minnesota member governmental units are 8.36 not liable for the payment of principal of or interest on such 9.1 obligations. 9.2 Sec. 16. Laws 1967, chapter 558, section 1, subdivision 5, 9.3 as amended by Laws 1979, chapter 135, section 1, and Laws 1985, 9.4 chapter 98, section 2, is amended to read: 9.5 Subd. 5. Promotion of tourist, agricultural and industrial 9.6 developments. The amount to be spent annually for the purposes 9.7 of this subdivision shall not exceedone dollarfive dollars per 9.8 capita of the county's population. 9.9 Sec. 17. [EFFECTIVE DATE; LOCAL APPROVAL.] 9.10 Section 16 is effective the day after the governing body of 9.11 Beltrami county and its chief clerical officer timely complete 9.12 their compliance with Minnesota Statutes, section 645.021, 9.13 subdivisions 2 and 3. 9.14 Sec. 18. Laws 1989, chapter 211, section 8, subdivision 2, 9.15 as amended by Laws 2002, chapter 390, section 24, is amended to 9.16 read: 9.17 Subd. 2. [OPERATION OF DISTRICT.] (a) A hospital district 9.18 created under this section shall be subject to Minnesota 9.19 Statutes, sections 447.32, except subdivision 1, to 447.41, and 9.20 except as provided otherwise in this act. 9.21 (b) A hospital district created under this section is a 9.22 municipal corporation and political subdivision of the state. 9.23 [EFFECTIVE DATE.] This section is effective upon compliance 9.24 with Minnesota Statutes, section 645.021, subdivision 3, by the 9.25 governing body of the Cook county hospital district. 9.26 Sec. 19. Laws 1989, chapter 211, section 8, subdivision 4, 9.27 as amended by Laws 2002, chapter 390, section 24, is amended to 9.28 read: 9.29 Subd. 4. [TAX LEVY.] The tax levied under Minnesota 9.30 Statutes, section 447.34, shall not exceed $300,000in any year,9.31and itsfor taxes levied in 2002. For taxes levied in 2003 and 9.32 subsequent years, the tax must not exceed the lesser of: 9.33 (1) the product of the hospital district's property tax 9.34 levy limitation for the previous year determined under this 9.35 subdivision, multiplied by 103 percent; or 9.36 (2) the product of the hospital district's property tax 10.1 levy limitation for the previous year determined under this 10.2 subdivision multiplied by the ratio of the most recent available 10.3 annual medical care expenditure category of the revised Consumer 10.4 Price Index, U.S. citywide average, for all urban consumers 10.5 prepared by the United States Department of Labor to the same 10.6 annual index for the previous year. 10.7 The proceeds of the tax may be used for all purposes of the 10.8 hospital district. 10.9 [EFFECTIVE DATE.] This section is effective upon compliance 10.10 with Minnesota Statutes, section 645.021, subdivision 3, by the 10.11 governing body of the Cook county hospital district. 10.12 Sec. 20. [KANDIYOHI COUNTY AND CITY OF WILLMAR; POWERS.] 10.13 Notwithstanding Minnesota Statutes, sections 469.090 and 10.14 469.1082, Kandiyohi county may exercise the powers of a city 10.15 under Minnesota Statutes, sections 469.090 to 469.107. 10.16 Kandiyohi county and the city of Willmar may enter into a joint 10.17 powers agreement under Minnesota Statutes, section 471.59, to 10.18 jointly or cooperatively exercise any of the powers common to 10.19 both the county and the city under Minnesota Statutes, sections 10.20 469.090 to 469.107, in a manner to be determined by a majority 10.21 of the Kandiyohi county board and the Willmar city council. 10.22 Sec. 21. [SPECIAL TAXING DISTRICT.] 10.23 A joint powers entity created under section 20 is a 10.24 political subdivision of the state and a special taxing district 10.25 as defined by Minnesota Statutes, section 275.066, clause (24), 10.26 with the power to adopt and certify a property tax levy to the 10.27 county auditor. The maximum allowable levy limit for this 10.28 special taxing district is the same levy limit as provided under 10.29 section 469.107, subdivision 1, and, to the extent levied, shall 10.30 replace the levy authorized under section 20 for Kandiyohi 10.31 county and the city of Willmar. 10.32 Sec. 22. [EFFECTIVE DATE; NO LOCAL APPROVAL REQUIRED.] 10.33 (a) Under Minnesota Statutes, section 645.023, subdivision 10.34 1, paragraph (a), no local approval of sections 20 and 21 is 10.35 required. 10.36 (b) Sections 20 and 21 are effective the day after their 11.1 final enactment. 11.2 Sec. 23. [NURSING HOME BONDS AUTHORIZED.] 11.3 Itasca county may issue bonds under Minnesota Statutes, 11.4 sections 376.55 and 376.56, to finance the construction of a 11.5 35-bed nursing home facility to replace an existing 35-bed 11.6 private facility located in the county. For the purposes of 11.7 Minnesota Statutes, section 376.56, subdivision 3, the 11.8 construction constitutes replacement of an existing nursing home 11.9 without increasing the number of accommodations for residents. 11.10 The bonds issued under this section must be payable solely from 11.11 revenues and may not be general obligations of the county. 11.12 Sec. 24. [EFFECTIVE DATE; LOCAL APPROVAL.] 11.13 Section 23 is effective the day after the governing body of 11.14 Itasca county and its chief clerical officer timely complete 11.15 their compliance with Minnesota Statutes, section 645.021, 11.16 subdivisions 2 and 3. 11.17 Sec. 25. [MINNEAPOLIS COMMUNITY PLANNING AND ECONOMIC 11.18 DEVELOPMENT DEPARTMENT.] 11.19 Subdivision 1. Notwithstanding a contrary provision of 11.20 law, the charter of the city of Minneapolis, or its civil 11.21 service rules, the city council of the city of Minneapolis may, 11.22 by ordinance: 11.23 (1) establish a department of the city to be designated as 11.24 the community planning and economic development department, or 11.25 another name as the city designates by ordinance. The term "the 11.26 department" as used in sections 25 to 27 means the community 11.27 planning and economic development department established under 11.28 this subdivision; 11.29 (2) transfer to the department the community development 11.30 and planning duties and functions of any other department or 11.31 office of the city of Minneapolis, including the employees 11.32 performing those duties and functions. If the duties and 11.33 functions of the city planning department are transferred to the 11.34 department, the department must perform the administrative 11.35 duties that were formerly performed by the city's planning 11.36 department on behalf of or at the request of the city's planning 12.1 commission; 12.2 (3) transfer any positions of the Minneapolis community 12.3 development agency to the city of Minneapolis. The ordinance 12.4 may provide the process for establishing, classifying, and 12.5 describing the duties for the transferred positions. Employees 12.6 of the Minneapolis community development agency who are not in 12.7 the classified service of the city of Minneapolis may be 12.8 transferred to the city of Minneapolis, and the city council may 12.9 transfer the employees into the classified service of the city 12.10 of Minneapolis and into positions for which the employees are 12.11 qualified, as determined by the city council; 12.12 (4) establish the position of director of the department in 12.13 the unclassified service of the city, and establish other 12.14 unclassified positions as necessary. Unclassified positions, 12.15 other than the director, must meet the following criteria: 12.16 (i) the person occupying the position must report to the 12.17 director or a deputy director; 12.18 (ii) the person occupying the position must be part of the 12.19 director's management team; 12.20 (iii) the duties of the position must involve significant 12.21 discretion and substantial involvement in the development, 12.22 interpretation, or implementation of city or department policy; 12.23 (iv) the duties of the position must not primarily require 12.24 technical expertise where continuity in the position would be 12.25 significant; and 12.26 (v) the person occupying the position must be accountable 12.27 to, loyal to, and compatible with the mayor, the city council, 12.28 and the director; and 12.29 (5) establish the terms and conditions of employment for 12.30 employees of the department. 12.31 Subd. 2. The employees of the department are employees of 12.32 the city of Minneapolis for the purposes of membership in the 12.33 public employees retirement association. An employee 12.34 transferred from the Minneapolis community development agency to 12.35 the city of Minneapolis must elect within six months of the 12.36 effective date of the transfer to either continue as a member of 13.1 the retirement program in which the employee participated on the 13.2 date of the employee's transfer to the city of Minneapolis or to 13.3 become a member of the public employees retirement association. 13.4 This election is irrevocable. An employee who was a member of 13.5 the Minneapolis employees retirement fund on the date of the 13.6 employee's transfer to the city of Minneapolis may continue as a 13.7 member of that fund retaining all vested rights, constructive 13.8 time, and employee and employer contributions made on the 13.9 employee's behalf to that fund. The city of Minneapolis must 13.10 make the required employer contributions to the elected 13.11 retirement program. An employee electing to become a member of 13.12 the public employees retirement association may enroll in the 13.13 association with vested rights based upon the employee's current 13.14 tenure as an employee of the Minneapolis community development 13.15 agency, but that tenure does not constitute allowable service 13.16 for purposes of determining benefits. 13.17 Subd. 3. The terms of a collective bargaining agreement 13.18 that is in effect between the Minneapolis community development 13.19 agency and its employees, some or all of whom may be transferred 13.20 to the city of Minneapolis, are binding upon the city of 13.21 Minneapolis and the employees for the term of the contract. 13.22 Subd. 4. An employee electing under subdivision 2 to 13.23 become a member of the public employees retirement association 13.24 may purchase allowable service credit from the association by 13.25 paying to the association an amount calculated under Minnesota 13.26 Statutes, section 356.55. The service credit that is 13.27 purchasable is a period or periods of employment by the 13.28 Minneapolis community development agency that would have been 13.29 eligible service for coverage by the general employees 13.30 retirement plan of the public employees retirement association 13.31 if the service had been rendered after the effective date of 13.32 this article. A person electing to purchase service credit 13.33 under this subdivision must provide any documentation of prior 13.34 service required by the executive director of the public 13.35 employees retirement association. Notwithstanding any provision 13.36 of Minnesota Statutes, section 356.55, to the contrary, the 14.1 prior service credit purchase payment may be made in whole or in 14.2 part on an institution-to-institution basis from a plan 14.3 qualified under the federal Internal Revenue Code, section 14.4 401(a), 401(k), or 414(h), or from an annuity qualified under 14.5 the federal Internal Revenue Code, section 403, or from a 14.6 deferred compensation plan under the federal Internal Revenue 14.7 Code, section 457, to the extent permitted by federal law. In 14.8 no event may a prior service credit purchase transfer be paid 14.9 directly to the person purchasing the service. 14.10 Sec. 26. [AUTHORITY.] 14.11 Subdivision 1. Notwithstanding a contrary law or provision 14.12 of the Minneapolis city charter, the city council may exercise 14.13 the powers granted by Minnesota Statutes, sections 469.001 to 14.14 469.134, and 469.152 to 469.1799, and any other powers granted 14.15 to a city of the first class, except for powers relating to 14.16 public housing. In exercising the powers authorized by this 14.17 section, the city of Minneapolis shall be the authority, agency, 14.18 or redevelopment agency referred to in Minnesota Statutes, 14.19 sections 469.001 to 469.134, and 469.152 to 469.1799, and the 14.20 city council of the city of Minneapolis shall be the governing 14.21 body or board of commissioners of the authority, agency, or 14.22 redevelopment agency. The city council may exercise the powers 14.23 authorized by this subdivision; by Laws 1980, chapter 595, as 14.24 amended; by Laws 1990, chapter 604, article 7, section 29, as 14.25 amended by Laws 1991, chapter 291, article 10, section 20; and 14.26 may exercise any other development or redevelopment powers 14.27 authorized by law, independently, or in conjunction with each 14.28 other, as though all of the authorized powers had been granted 14.29 to a single entity. But a program, project, or district 14.30 authorized by the city under Minnesota Statutes, sections 14.31 469.001 to 469.134, and 469.152 to 469.l799, is subject to the 14.32 limitations of the program, project, or district imposed by 14.33 Minnesota Statutes, sections 469.001 to 469.134, and 469.152 to 14.34 469.1799. 14.35 Subd. 2. The city council may delegate to the department 14.36 any of the powers granted to the city of Minneapolis under 15.1 subdivision 1, except the power to tax and the power to issue 15.2 bonds, notes, or other obligations of the city of Minneapolis. 15.3 Subd. 3. Notwithstanding a contrary law or provision of 15.4 the Minneapolis city charter, money, investments, real property, 15.5 personal property, assets, programs, projects, districts, 15.6 developments, or obligations of the Minneapolis community 15.7 development agency may be transferred by resolution of the city 15.8 council to the city of Minneapolis and be made subject to the 15.9 control, authority, and operation of the department. If a 15.10 transfer is made, the city of Minneapolis is bound by the 15.11 contractual obligations of the Minneapolis community development 15.12 agency with respect to the money, investments, real estate, 15.13 personal property, assets, programs, projects, districts, 15.14 developments, or obligations, including the obligations of any 15.15 bonds, notes, or other debt obligations of the Minneapolis 15.16 community development agency. The pledge of the full faith and 15.17 credit of the Minneapolis community development agency to any 15.18 bonds, notes, or other debt obligations of the Minneapolis 15.19 community development agency that are transferred to the city of 15.20 Minneapolis shall not be secured by the full faith and credit of 15.21 the city of Minneapolis and shall not be secured by the taxing 15.22 powers of the city of Minneapolis but only by the assets pledged 15.23 by the Minneapolis community development agency to the payment 15.24 of the bonds, notes, or other debt obligations. The city 15.25 council is granted the powers necessary to perform the 15.26 contractual obligations transferred to the city of Minneapolis. 15.27 Subd. 4. The city council may pledge to the payment of 15.28 bonds, notes, or other obligations of the city of Minneapolis 15.29 revenues, assets, reserves, or other property transferred to the 15.30 city of Minneapolis under this section. 15.31 Subd. 5. The city council may pledge to the payment of 15.32 bonds, notes, or other obligations of the city of Minneapolis 15.33 the full faith and credit of the city of Minneapolis, or the 15.34 taxing power of the city of Minneapolis, to finance programs, 15.35 projects, districts, developments, facilities, or activities 15.36 undertaken by the department. 16.1 Subd. 6. Unless prohibited by other law or a contractual 16.2 obligation including a pledge to the owners of bonds, notes, or 16.3 other indebtedness, the money and investments of the Minneapolis 16.4 community development agency transferred to the city of 16.5 Minneapolis under this section may be deposited in any fund or 16.6 account of the city of Minneapolis. 16.7 Subd. 7. If all money, investments, real property, 16.8 personal property, assets, programs, projects, districts, 16.9 developments, or obligations of the Minneapolis community 16.10 development agency are transferred to the city of Minneapolis, 16.11 the city council may, by resolution, dissolve the Minneapolis 16.12 community development agency. Any rights, duties, claims, 16.13 awards, grants, or liabilities that may arise after the 16.14 dissolution of the Minneapolis community development agency 16.15 shall constitute rights, duties, claims, awards, grants, or 16.16 liabilities of the city of Minneapolis. The pledge of the full 16.17 faith and credit of the Minneapolis community development agency 16.18 to any bonds, notes, or other debt obligations of the 16.19 Minneapolis community development agency that are transferred to 16.20 the city of Minneapolis shall not be secured by the full faith 16.21 and credit or the taxing powers of the city of Minneapolis but 16.22 shall be secured only by the assets pledged by the Minneapolis 16.23 community development agency to the payment of the bonds, notes, 16.24 or other debt obligations. 16.25 Subd. 8. If the city of Minneapolis exercises its powers 16.26 for industrial development or establishes industrial development 16.27 districts under Minnesota Statutes, sections 469.048 to 469.068, 16.28 the term "industrial," when used in relation to industrial 16.29 development, includes economic and economic development and 16.30 housing and housing development. 16.31 Sec. 27. [LIMITATIONS.] 16.32 Subdivision 1. Bonds, notes, or other obligations issued 16.33 to finance or refinance a program, project, district, 16.34 development, facility, or activity of the department must be 16.35 issued by the city council, or, at the request of the city 16.36 council, by the board of estimate and taxation of the city of 17.1 Minneapolis. The limitations of this section must not be 17.2 applied in a manner that impairs the security of bonds, notes, 17.3 or other obligations issued before the imposition of the 17.4 limitations. 17.5 Subd. 2. Unless otherwise provided in sections 25 to 27, 17.6 all actions of the city council under sections 25 to 27 are 17.7 actions within chapter 3, section 1, of the charter of the city 17.8 of Minneapolis. 17.9 Sec. 28. [EFFECTIVE DATE; LOCAL APPROVAL.] 17.10 Sections 25 to 27 are effective the day after the governing 17.11 body of the city of Minneapolis and its chief clerical officer 17.12 timely complete their compliance with Minnesota Statutes, 17.13 section 645.021, subdivisions 2 and 3. 17.14 Sec. 29. [BONDS ISSUANCE VALIDATED.] 17.15 The provisions of Minnesota Statutes, sections 373.47, 17.16 subdivision 1, and 473.907, subdivision 3, requiring prior 17.17 review and approval by the public safety radio system planning 17.18 committee do not apply to the general obligation bonds issued by 17.19 Anoka county in a principal amount of $10,500,000 on November 17.20 20, 2002. 17.21 [EFFECTIVE DATE.] This section is effective upon compliance 17.22 by the governing body of Anoka county with the provisions of 17.23 Minnesota Statutes, section 645.021. 17.24 Sec. 30. [VALIDATION OF APPROVAL.] 17.25 Notwithstanding Minnesota Statutes, section 645.021, 17.26 subdivision 3, Laws 1980, chapter 569, sections 2 through 8, 17.27 approved by the board of directors of local government 17.28 information systems by resolution adopted on July 30, 1980, are 17.29 effective as of July 1, 1980, and apply to obligations issued by 17.30 local government information systems after April 1, 2003. 17.31 Sec. 31. [SOUTHERN ST. LOUIS COUNTY SPECIAL TAXING 17.32 DISTRICT; CHRIS JENSEN NURSING HOME.] 17.33 Subdivision 1. [ESTABLISHED.] The Southern St. Louis 17.34 County Special Taxing District for purposes of the Chris Jensen 17.35 Nursing Home is established. 17.36 Subd. 2. [AREA.] The district in subdivision 1 includes 18.1 all that part of St. Louis county comprising the cities of 18.2 Duluth, Proctor, Hermantown, Brookston, Floodwood, and 18.3 Meadowlands, and the townships of Alborn, Alden, Arrowhead, 18.4 Brevator, Canosia, Culver, Duluth, Elmer, Fine Lakes, Floodwood, 18.5 Fredenberg, Gensen, Grand Lake, Halden, Industrial, Lakewood, 18.6 Meadowlands, Midway, Ness, New Independence, Normanna, 18.7 Northland, North Star, Pequaywan, Prairie Lake, Rice Lake, 18.8 Solway, Stoney Brook, and Van Buren, and unorganized 18.9 congressional townships of 52-21, 50-19, 53-16, 53-15, and 53-14. 18.10 Subd. 3. [PURPOSE.] The district established in 18.11 subdivision 1 is established to operate, maintain, and improve 18.12 the Chris Jensen Nursing Home. 18.13 Subd. 4. [LEVY AUTHORITY.] The district established under 18.14 subdivision 1 is a public corporation and political subdivision 18.15 of the state with all the powers, rights, privileges, 18.16 immunities, and duties that may be validly granted to or imposed 18.17 on a municipal corporation as provided in this section, and a 18.18 special taxing district as defined by Minnesota Statutes, 18.19 section 275.066, clause (24), with the power to adopt and 18.20 certify a property tax levy to the county auditor. The maximum 18.21 allowable annual levy for this special taxing district is 18.22 $1,000,000 in the first levy and $750,000 each levy thereafter. 18.23 Subd. 5. [MEMBERS AND SELECTION.] The nursing home board 18.24 shall be composed of nine members selected as follows: 18.25 (a) The mayor of the city of Duluth shall select three 18.26 members and shall designate the term of each such member in 18.27 accordance with subdivision 6, subject to approval of the Duluth 18.28 city council. 18.29 (b) The St. Louis county board shall select three members 18.30 and shall designate the term of each such member in accordance 18.31 with subdivision 6. 18.32 (c) The mayor of the city of Hermantown shall select one 18.33 member subject to approval of the Hermantown city council. 18.34 (d) The mayor of the city of Proctor shall select one 18.35 member subject to approval of the Proctor city council. 18.36 (e) The South St. Louis county township officers shall 19.1 select one member. 19.2 Subd. 6. [TERMS OF OFFICE.] The terms of the first board 19.3 members shall expire on December 31 in the following calendar 19.4 years: the three members selected by the city of Duluth shall 19.5 serve staggered terms with one term expiring on December 31, 19.6 2004, one expiring on December 31, 2005, and one expiring on 19.7 December 31, 2006, as determined by the appointing authority; 19.8 the three members selected by St. Louis county shall serve 19.9 staggered terms with one term expiring on December 31, 2004, one 19.10 expiring on December 31, 2005, and one expiring on December 31, 19.11 2006, as determined by the appointing authority; the member 19.12 selected by the township officers shall serve a one-year term 19.13 expiring on December 31, 2004; the member selected by the city 19.14 of Hermantown shall serve a two-year term expiring on December 19.15 31, 2005; and the member selected by the city of Proctor shall 19.16 serve a three-year term expiring on December 31, 2006. 19.17 Succeeding terms of all board members shall be three years, 19.18 except that each member shall serve until a successor has been 19.19 duly selected and qualified. 19.20 Subd. 7. [PROPERTY.] All assets, liabilities, employees, 19.21 and property of the Chris Jensen Nursing Home shall be 19.22 transferred to the nursing home board from St. Louis county on 19.23 the first day of the year after the formation of the nursing 19.24 home board, but no later than January 1, 2005. 19.25 Subd. 8. [ORGANIZATION AND OPERATION OF THE BOARD.] The 19.26 nursing home board shall elect officers and establish bylaws at 19.27 its first meeting. 19.28 Subd. 9. [EFFECTIVE DATE; LOCAL APPROVAL.] This section is 19.29 effective the day after the governing body of St. Louis county 19.30 and its chief clerical officer timely complete their compliance 19.31 with Minnesota Statutes, section 645.021, subdivisions 2 and 3. 19.32 If effective before September 1, 2003, the first levy is 19.33 the payable 2004 levy; if effective between September 1, 2003 19.34 and September 1, 2004, the first levy is the payable 2005 levy; 19.35 if effective after August 31, 2004, the first levy is the 19.36 payable 2006 levy. 20.1 Sec. 32. [EFFECTIVE DATES.] 20.2 This article is effective the day following final 20.3 enactment, except as otherwise provided in this article. 20.4 ARTICLE 2 20.5 Section 1. [LEGISLATIVE PURPOSE AND POLICY.] 20.6 The legislature determines that in the area in and around 20.7 the city of Alexandria, there are economic development issues 20.8 that can be more effectively dealt with by a single entity on a 20.9 coordinated basis rather than by multiple existing government 20.10 units. The legislature, therefore, declares that for a 20.11 coordinated approach to economic development in the area, it is 20.12 necessary to establish for the area an economic development 20.13 authority with the responsibility of exercising the powers of an 20.14 economic development authority in order to advance the economic 20.15 vitality of the area. 20.16 Sec. 2. [DEFINITIONS.] 20.17 Subdivision 1. [DEFINITIONS.] For the purposes of sections 20.18 1 to 8, the terms defined in this section have the following 20.19 meanings. 20.20 Subd. 2. [LAKES AREA ECONOMIC DEVELOPMENT 20.21 AUTHORITY.] "Lakes area economic development authority" or 20.22 "authority" means the lakes area economic authority established 20.23 as provided in section 3. 20.24 Subd. 3. [PERSON.] "Person" means an individual, 20.25 partnership, corporation, cooperative, or other organization or 20.26 entity, public or private. 20.27 Subd. 4. [MEMBER.] "Member" means the city of Alexandria 20.28 or Garfield or the township of Alexandria or La Grand, or any 20.29 other municipality, the geographic area of which is included 20.30 within the jurisdiction of the authority. 20.31 Subd. 5. [MUNICIPALITY.] "Municipality" means a statutory 20.32 or home rule charter city or town located in Douglas county. 20.33 Sec. 3. [LAKES AREA ECONOMIC DEVELOPMENT AUTHORITY.] 20.34 Subdivision 1. [ESTABLISHMENT.] A lakes area economic 20.35 development authority with jurisdiction over the geographic area 20.36 of its members is established as a public corporation and 21.1 political subdivision of the state with perpetual succession and 21.2 all the rights, powers, privileges, immunities, and duties that 21.3 may be validly granted to or imposed upon a municipal 21.4 corporation, as provided in sections 1 to 8. 21.5 Subd. 2. [BOARD OF COMMISSIONERS.] The authority is 21.6 governed by a board of commissioners to be selected as follows: 21.7 the mayor of each member city, and the chair of the town board 21.8 of each member town shall appoint one commissioner, subject to 21.9 the approval of the respective city council or town board. The 21.10 terms of the commissioner are as provided in subdivision 5. 21.11 Subd. 3. [TIME LIMITS FOR SELECTION, ALTERNATIVE 21.12 APPOINTMENT BY DISTRICT JUDGE.] The initial appointment of 21.13 commissioners must be made no later than 60 days after sections 21.14 1 to 8 become effective. Subsequent appointments must be made 21.15 within 60 days before the expiration of a term in the same 21.16 manner as the predecessor was selected. A vacancy on the board 21.17 must be filled within 60 days after it occurs. If a selection 21.18 is not made within the prescribed time, the chief judge of the 21.19 seventh judicial district of the Minnesota district court on 21.20 application by an interested person shall appoint an eligible 21.21 person to the board. 21.22 Subd. 4. [VACANCIES.] If a vacancy occurs in the office of 21.23 commissioner, the vacancy must be filled for the unexpired term 21.24 in a like manner as provided for selection of the commissioner 21.25 who vacated the office. The office must be considered vacant 21.26 under the conditions specified in Minnesota Statutes, section 21.27 351.02. 21.28 Subd. 5. [TERMS OF OFFICE.] The terms of the initial 21.29 appointees to the board of commissioners are for three, four, 21.30 five, and six years and must be established by lot among the 21.31 initial four commissioners. The mayor or town board chair of 21.32 any new member added under section 6 shall designate the term, 21.33 not to exceed six years, of the first commissioner selected to 21.34 represent the member. Succeeding terms of all commissioners are 21.35 six years, except that each commissioner serves until a 21.36 successor has been duly selected and qualified. 22.1 Subd. 6. [REMOVAL.] A commissioner may be removed by the 22.2 unanimous vote of the appointing governing body, with or without 22.3 cause. 22.4 Subd. 7. [QUALIFICATIONS.] A commissioner may, but need 22.5 not, be a resident of the territory of the member appointing 22.6 that commissioner. 22.7 Subd. 8. [COMPENSATION.] A commissioner must be paid a per 22.8 diem compensation for attending a regular or special meeting in 22.9 an amount determined by the board. A commissioner must be 22.10 reimbursed for all reasonable expenses incurred in the 22.11 performance of the commissioner's duties as determined by the 22.12 board. 22.13 Sec. 4. [POWERS; APPLICATION OF EDA LAW.] 22.14 Subdivision 1. [USE OF EDA POWERS.] Except as otherwise 22.15 provided in sections 1 to 8, the authority may exercise any of 22.16 the powers of an economic development authority (EDA) provided 22.17 by Minnesota Statutes, sections 469.090 to 469.1082, and for 22.18 this purpose the term "city" means a member. Minnesota 22.19 Statutes, sections 469.096 to 469.101, 469.103 to 469.106, and 22.20 469.108 to 469.1081 apply to the authority, except that the 22.21 authority's fiscal year is the calendar year. 22.22 Subd. 2. [LAW THAT IS NOT APPLICABLE.] The provisions in: 22.23 (1) Minnesota Statutes, section 469.091, subdivision 1, 22.24 expressly relating to: 22.25 (i) the adoption of an enabling resolution; 22.26 (ii) Minnesota Statutes, section 469.092; or 22.27 (iii) housing and redevelopment authorities; and 22.28 (2) Minnesota Statutes, sections 469.093, 469.095, 469.102, 22.29 and 469.107; 22.30 do not apply to the authority. 22.31 Sec. 5. [MEMBERS MUST LEVY TAXES FOR AUTHORITY.] 22.32 (a) A member shall, at the request of the authority, levy a 22.33 tax in any year for the benefit of the authority. The tax is, 22.34 for each member, a pro rata portion of the total amount of tax 22.35 requested by the authority based on the taxable market value 22.36 within a member's jurisdiction, but in no event may the tax in 23.1 any year exceed 0.01813 percent of taxable market value. For 23.2 purposes of this section, "taxable market value" has the meaning 23.3 as given in Minnesota Statutes, section 273.032. 23.4 (b) The treasurer of each member city or town shall, within 23.5 15 days after receiving the property tax settlements from the 23.6 county treasurer, pay to the treasurer of the authority the 23.7 amount collected for this purpose. The money must be used by 23.8 the authority for the purposes provided by sections 1 to 8. 23.9 Sec. 6. [ADDITION AND WITHDRAWAL OF MEMBERS.] 23.10 Subdivision 1. [ADDITIONS.] A municipality upon a 23.11 resolution adopted by a four-fifths vote of all of its governing 23.12 body may petition the authority to be included within the 23.13 jurisdiction of the authority and, if approved by the authority, 23.14 the geographic area of the municipality must be included within 23.15 the jurisdiction of the authority and subject to the 23.16 jurisdiction of the authority under sections 1 to 8. 23.17 Subd. 2. [WITHDRAWALS.] A municipality may withdraw from 23.18 the authority by resolution of its governing body. The 23.19 municipality must notify the board of commissioners of the 23.20 authority of the withdrawal by providing a copy of the 23.21 resolution at least two years in advance of the proposed 23.22 withdrawal. Unless the authority and the withdrawing member 23.23 agree otherwise by action of their governing bodies, the taxable 23.24 property of the withdrawing member is subject to the property 23.25 tax levy under section 5 for two taxes payable years following 23.26 the notification of the withdrawal and the withdrawing member 23.27 retains any rights, obligations, and liabilities obtained or 23.28 incurred during its participation. 23.29 Sec. 7. [CONTRACTS WITH NONPROFIT CORPORATIONS.] 23.30 The authority may enter into contracts with one or more 23.31 nonprofit corporations to make, from funds of and under 23.32 guidelines set by the authority, loans or grants for projects 23.33 the authority may undertake under sections 1 to 8. Minnesota 23.34 Statutes, section 465.719, does not apply so long as the 23.35 nonprofit corporation is not described in Minnesota Statutes, 23.36 section 465.719, subdivision 1, paragraph (b)(i) or (b)(ii). 24.1 Sec. 8. [RELATION TO EXISTING LAWS.] 24.2 Sections 1 to 8 must be given full effect notwithstanding 24.3 any law or charter that is inconsistent with them. 24.4 Sec. 9. [LOCAL APPROVAL; EFFECTIVE DATE.] 24.5 Sections 1 to 8 are only effective as to all affected 24.6 governing bodies on the day after the last of the governing 24.7 bodies or town boards of the cities of Alexandria and Garfield 24.8 and the towns of Alexandria and La Grand in Douglas county and 24.9 the chief clerical officer of each of them timely complete their 24.10 compliance with Minnesota Statutes, section 645.021, 24.11 subdivisions 2 and 3. 24.12 ARTICLE 3 24.13 Section 1. [DEFINITIONS.] 24.14 Subdivision 1. [APPLICATION.] The terms defined in this 24.15 section shall have the meaning given them unless otherwise 24.16 provided or indicated by the context. 24.17 Subd. 2. [ACQUISITION AND BETTERMENT.] "Acquisition" and 24.18 "betterment" shall have the meanings given them in Minnesota 24.19 Statutes, section 475.51. 24.20 Subd. 3. [AGENCY.] "Agency" means the Minnesota pollution 24.21 control agency created and established by Minnesota Statutes, 24.22 chapter 116. 24.23 Subd. 4. [AGRICULTURAL PROPERTY.] "Agricultural property" 24.24 means land as is classified agricultural land within the meaning 24.25 of Minnesota Statutes, section 273.13, subdivision 23. 24.26 Subd. 5. [CURRENT COSTS OF ACQUISITION, BETTERMENT, AND 24.27 DEBT SERVICE.] "Current costs of acquisition, betterment, and 24.28 debt service" means interest and principal estimated to be due 24.29 during the budget year on bonds issued to finance the 24.30 acquisition and betterment and all other costs of acquisition 24.31 and betterment estimated to be paid during the budget year from 24.32 funds other than bond proceeds and federal or state grants. 24.33 Subd. 6. [DISTRICT DISPOSAL SYSTEM.] "District disposal 24.34 system" means any and all of the interceptors or treatment works 24.35 owned, constructed, or operated by the board unless designated 24.36 by the board as local sanitary sewer facilities. 25.1 Subd. 7. [CENTRAL LAKES REGION SANITARY DISTRICT AND 25.2 DISTRICT.] "Central Lakes Region Sanitary District" and 25.3 "district" mean the area over which the sanitary sewer board has 25.4 jurisdiction, including those parts of the Douglas county 25.5 townships of Carlos, Brandon, La Grand, Leaf Valley, Miltona, 25.6 and Moe, as more particularly described by metes and bounds in 25.7 the comprehensive plan adopted under section 4. 25.8 Subd. 8. [INTERCEPTOR.] "Interceptor" means any sewer and 25.9 necessary appurtenances to it, including but not limited to, 25.10 mains, pumping stations, and sewage flow regulating and 25.11 measuring stations, that is designed for or used to conduct 25.12 sewage originating in more than one local government unit, or 25.13 that is designed or used to conduct all or substantially all the 25.14 sewage originating in a single local government unit from a 25.15 point of collection in that unit to an interceptor or treatment 25.16 works outside that unit, or that is determined by the board to 25.17 be a major collector of sewage used or designed to serve a 25.18 substantial area in the district. 25.19 Subd. 9. [LOCAL GOVERNMENT UNIT OR GOVERNMENT 25.20 UNIT.] "Local government unit" or "government unit" means any 25.21 municipal or public corporation or governmental or political 25.22 subdivision or agency located in whole or in part in the 25.23 district, authorized by law to provide for the collection and 25.24 disposal of sewage. 25.25 Subd. 10. [LOCAL SANITARY SEWER FACILITIES.] "Local 25.26 sanitary sewer facilities" means all or any part of any disposal 25.27 system in the district other than the district disposal system. 25.28 Subd. 11. [MUNICIPALITY.] "Municipality" means any 25.29 statutory or home rule charter city or town located in whole or 25.30 in part in the district. 25.31 Subd. 12. [PERSON.] "Person" means any individual, 25.32 partnership, corporation, limited liability company, 25.33 cooperative, or other organization or entity, public or private. 25.34 Subd. 13. [POLLUTION AND SEWER SYSTEM.] "Pollution" and 25.35 "sewer system" have the meanings given them in Minnesota 25.36 Statutes, section 115.01. 26.1 Subd. 14. [SANITARY SEWER BOARD OR BOARD.] "Sanitary sewer 26.2 board" or "board" means the sanitary sewer board established for 26.3 the Central Lakes Region Sanitary District as provided in 26.4 section 2. 26.5 Subd. 15. [SEWAGE.] "Sewage" means all liquid or 26.6 water-carried waste products from whatever sources derived, 26.7 together with the groundwater infiltration and surface water 26.8 that may be present. 26.9 Subd. 16. [TOTAL COSTS OF ACQUISITION AND BETTERMENT AND 26.10 COSTS OF ACQUISITION AND BETTERMENT.] "Total costs of 26.11 acquisition and betterment" and "costs of acquisition and 26.12 betterment" mean all acquisition and betterment expenses that 26.13 are permitted to be financed out of bond proceeds issued in 26.14 accordance with section 12, subdivision 4, whether or not the 26.15 expenses are in fact financed out of the bond proceeds. 26.16 Subd. 17. [TREATMENT WORKS AND DISPOSAL 26.17 SYSTEM.] "Treatment works" and "disposal system" have the 26.18 meanings given them in Minnesota Statutes, section 115.01. 26.19 Sec. 2. [SANITARY SEWER BOARD.] 26.20 Subdivision 1. [ESTABLISHMENT.] A sanitary sewer board 26.21 with jurisdiction in the Central Lakes Region Sanitary District 26.22 is established as a public corporation and political subdivision 26.23 of the state with perpetual succession and all the rights, 26.24 powers, privileges, immunities, and duties that may be validly 26.25 granted to or imposed upon a municipal corporation, as provided 26.26 in this article. 26.27 Subd. 2. [MEMBERS AND SELECTION.] The number of board 26.28 members and method by which they are selected is as follows: 26.29 The governing body of any municipality located in whole or part 26.30 within the district must each separately select one member. 26.31 Upon the board's ordering of a project to construct a sanitary 26.32 sewer, the governing body of any municipality must appoint one 26.33 additional member for each full 800 special assessments included 26.34 in the ordered project to be levied against property located in 26.35 the municipality. The term of each member is subject to the 26.36 approval of the voting members of the city council or town board. 27.1 Subd. 3. [TIME LIMIT; ALTERNATIVE APPOINTMENT.] The 27.2 initial board members must be selected as provided in 27.3 subdivision 2 within 60 days after this article is effective. A 27.4 successor must be selected at any time within 60 days before the 27.5 expiration of the predecessor's term in the same manner as the 27.6 predecessor was selected. Any vacancy on the board must be 27.7 filled within 60 days after it occurs. If a selection is not 27.8 made as provided within the time prescribed, the chief judge of 27.9 the seventh judicial district of the Minnesota district court, 27.10 on application by any interested person, shall appoint an 27.11 eligible person to the board. 27.12 Subd. 4. [VACANCIES.] If the office of any board member 27.13 becomes vacant, the vacancy shall be filled for the unexpired 27.14 term in the manner as provided for selection of the member who 27.15 vacated the office. The office shall be deemed vacant under the 27.16 conditions specified in Minnesota Statutes, section 351.02. 27.17 Subd. 5. [TERMS OF OFFICE.] The terms of all board members 27.18 shall be for one, two, three, or four calendar years to be 27.19 determined in accordance with subdivision 2 by the governing 27.20 body selecting such member. Terms shall expire on January 1 of 27.21 a calendar year, except that each member shall serve until a 27.22 successor has been duly selected and qualified. 27.23 Subd. 6. [REMOVAL.] A board member may be removed by the 27.24 unanimous vote of the appointing governing body with or without 27.25 cause. 27.26 Subd. 7. [QUALIFICATIONS.] Each board member may, but need 27.27 not be a resident of the district and may, but need not be an 27.28 elected public official. 27.29 Subd. 8. [CERTIFICATES OF SELECTION; OATH OF OFFICE.] A 27.30 certificate of selection to a seat of every board member, 27.31 stating the seat's term, must be made by the respective 27.32 municipal clerk. The certificate, with the approval attached by 27.33 other authority, if required, must be filled with the secretary 27.34 of state. A copy must be furnished to the board member and the 27.35 secretary of the board. Each member must qualify by taking and 27.36 subscribing to the oath of office prescribed by the Minnesota 28.1 Constitution, article V, section 6. The oath, duly certified by 28.2 the official administering the same, must be filed with the 28.3 secretary of state and the secretary of the board. 28.4 Subd. 9. [COMPENSATION OF BOARD MEMBERS.] Each board 28.5 member may be paid a per diem compensation to attend meetings 28.6 and for other services in an amount as may be specifically 28.7 authorized by the board from time to time. Per diem 28.8 compensation must not exceed $4,000 for any member in any one 28.9 year. All members of the board may be reimbursed for all 28.10 reasonable expenses incurred in the performance of their duties 28.11 as determined by the board. 28.12 Sec. 3. [GENERAL PROVISION FOR ORGANIZATION AND OPERATION 28.13 OF BOARD.] 28.14 Subdivision 1. [OFFICERS MEETINGS; SEAL.] A majority of 28.15 the members is a quorum at all meetings of the board, but a 28.16 lesser number may meet and adjourn from time to time and compel 28.17 the attendance of absent members. The board must meet regularly 28.18 at the time and place as the board by resolution designates. 28.19 Special meetings may be held at any time upon call of the chair 28.20 or any two members, upon written notice sent by mail to each 28.21 member at least three days before the meeting, or upon the 28.22 notice as the board by resolution may provide, or without notice 28.23 if each member is present or files with the secretary a written 28.24 consent to the meeting either before or after the meeting. 28.25 Except as otherwise provided in this article, any action within 28.26 the authority of the board may be taken by the affirmative vote 28.27 of a majority of the board at a regular or adjourned regular 28.28 meeting or at a duly held special meeting, but in any case only 28.29 if a quorum is present. All meetings of the board must be open 28.30 to the public as provided in Minnesota Statutes, chapter 13D. 28.31 Subd. 2. [CHAIR.] The board must elect a chair from its 28.32 membership. The term of the chair expires on January 1 of each 28.33 year. The chair presides at all meetings of the board, if 28.34 present, and must perform all other duties and functions usually 28.35 incumbent upon the officer, and all administrative functions 28.36 assigned to the chair by the board. The board must elect a 29.1 vice-chair from its membership to act for the chair during a 29.2 temporary absence or disability. 29.3 Subd. 3. [SECRETARY AND TREASURER.] The board must select 29.4 one or more persons who may, but need not be a member of the 29.5 board, to act as its secretary and treasurer. The secretary and 29.6 treasurer hold office at the pleasure of the board, subject to 29.7 the terms of any contract of employment that the board may enter 29.8 into with the secretary or treasurer. The secretary must record 29.9 the minutes of all meetings of the board, and is custodian of 29.10 all books and records of the board except those the board 29.11 entrusts to the custody of a designated employee. The board may 29.12 appoint a deputy to perform any and all functions of either the 29.13 secretary or the treasurer. A secretary or treasurer or a 29.14 deputy of either who is not a member of the board shall not have 29.15 any right to vote. 29.16 Subd. 4. [GENERAL MANAGER.] The board may appoint a 29.17 general manager who shall be selected solely upon the basis of 29.18 training, experience, and other qualifications. The general 29.19 manager serves at the pleasure of the board and at a 29.20 compensation to be determined by the board. The general manager 29.21 need not be a resident of the district and may also be selected 29.22 by the board to serve as either secretary or treasurer, or both, 29.23 of the board. The general manager must attend all meetings of 29.24 the board but must not vote. The general manager must: 29.25 (1) see that all resolutions, rules, regulations, or orders 29.26 of the board are enforced; 29.27 (2) appoint and remove, upon the basis of merit and 29.28 fitness, all subordinate officers and regular employees of the 29.29 board except the secretary and the treasurer and their deputies; 29.30 (3) present to the board plans, studies, and other reports 29.31 prepared for board purposes and recommend to the board for 29.32 adoption such measures as the general manager considers 29.33 necessary to enforce or carry out the powers and duties of the 29.34 board, or for the efficient administration of the affairs of the 29.35 board; 29.36 (4) keep the board fully advised as to its financial 30.1 condition, and prepare and submit to the board, and to the 30.2 governing bodies of the local government units, the board's 30.3 annual budget and other financial information the board 30.4 requests; 30.5 (5) recommend to the board for adoption rules recommended 30.6 as necessary for the efficient operation of a district disposal 30.7 system and all local sanitary sewer facilities over which the 30.8 board may assume responsibility as provided in section 17; and 30.9 (6) perform other duties as may be prescribed by the board. 30.10 Subd. 5. [PUBLIC EMPLOYEES.] The general manager and all 30.11 persons employed by the general manager and public employees, 30.12 and have all the rights and duties conferred on public employees 30.13 under the Minnesota Public Employment Labor Relations Act. The 30.14 compensation and conditions of employment of the employees is 30.15 not governed by any rule applicable to state employees in the 30.16 classified service or by Minnesota Statutes, chapter 15A, except 30.17 as specifically authorized by law. 30.18 Subd. 6. [PROCEDURES.] The board must adopt resolutions or 30.19 bylaws establishing procedures for board action, personnel 30.20 administration, record keeping, investment policy, approving 30.21 claims, authorizing or making disbursements, safekeeping funds, 30.22 and audit of all financial operations of the board. 30.23 Subd. 7. [SURETY BONDS AND INSURANCE.] The board may 30.24 procure surety bonds for its officers and employees in such 30.25 amounts as are considered necessary to assure proper performance 30.26 of their duties and proper accounting for funds in their custody. 30.27 It may buy insurance against risks to property and liability of 30.28 the board and its officers, agents, and employees for personal 30.29 injuries or death and property damage and destruction in the 30.30 amounts as it considers necessary or desirable, with the force 30.31 and effect stated in Minnesota Statutes, chapter 466. 30.32 Sec. 4. [COMPREHENSIVE PLAN.] 30.33 Subdivision 1. [BOARD PLAN AND PROGRAM.] The board shall 30.34 adopt a comprehensive plan for the collection, treatment, and 30.35 disposal of sewage in the district for designated periods that 30.36 the board considers proper and reasonable. The board must 31.1 prepare and adopt subsequent comprehensive plans for the 31.2 collection, treatment, and disposal of sewage in the district 31.3 for each succeeding designated period as the board considers 31.4 proper and reasonable. The plan must take into account the 31.5 preservation and best and most economic use of water and other 31.6 natural resources in the area; the preservation, use, and 31.7 potential for use of lands adjoining waters of the state to be 31.8 used for the disposal of sewage; and the impact such a disposal 31.9 system will have on present and future land use in the affected 31.10 area. The plans shall include the following: 31.11 (1) the exact legal description of the boundaries of the 31.12 district; 31.13 (2) the general location of needed interceptors and 31.14 treatment works; 31.15 (3) a description of the area that is to be served by the 31.16 various interceptors and treatment works; 31.17 (4) a long-range capital improvements program; and 31.18 (5) such other details as the board deems appropriate. 31.19 In developing the plans, the board shall consult with persons 31.20 designated by the governing bodies of any municipal or public 31.21 corporation or governmental or political subdivision or agency 31.22 within or without the district to represent such entities and 31.23 shall consider the data, resources, and input offered to the 31.24 board by such entities and any planning agency acting on behalf 31.25 of one or more such entities. Each plan, when adopted, must be 31.26 followed in the district and may be revised as often as the 31.27 board considers necessary. 31.28 Subd. 2. [REPORT TO DOUGLAS COUNTY.] Upon adoption of any 31.29 comprehensive plan that establishes or reestablishes the 31.30 boundaries of the district, the board must supply the 31.31 appropriate Douglas county offices with the boundaries of the 31.32 district. 31.33 Subd. 3. [COMPREHENSIVE PLANS; HEARING.] Before adopting 31.34 any later comprehensive plan, the board must hold a public 31.35 hearing on the proposed plan at the time and place in the 31.36 district it determines. The hearing may be continued from time 32.1 to time. Not less than 45 days before the hearing, the board 32.2 must publish notice of it in a newspaper or newspapers having 32.3 general circulation in the district stating the date, time, and 32.4 place of the hearing, and the place where the proposed plan may 32.5 be examined by any interested person. At the hearing, all 32.6 interested persons must be permitted to present their views on 32.7 the plan. 32.8 Subd. 4. [MUNICIPAL PLANS AND PROGRAMS; COORDINATION WITH 32.9 BOARD'S RESPONSIBILITIES.] Before undertaking the construction 32.10 of new sewers or other disposal facilities or the substantial 32.11 alteration or improvement of any existing sewers or other 32.12 disposal facilities, each local government unit may, and must if 32.13 the construction or alteration of any sewage disposal facilities 32.14 is contemplated by the government unit, adopt a comprehensive 32.15 plan and program for the collection, treatment, and disposal of 32.16 sewage for which the local government unit is responsible, 32.17 coordinated with the board's comprehensive plan, and may revise 32.18 the plan as often as deemed necessary. Each local plan or 32.19 revision must be submitted to the board for review and is 32.20 subject to the approval of the board as to those features of the 32.21 plan affecting the board's responsibilities as determined by the 32.22 board. Any features disapproved by the board must be modified 32.23 in accordance with the board's recommendations. No construction 32.24 project involving those features may be undertaken by the local 32.25 government unit unless its governing body first finds the 32.26 project to be in accordance with the government unit's 32.27 comprehensive plan and program as approved by the board. Before 32.28 approval by the board of the comprehensive plan and program of 32.29 any local government unit in the district, no construction 32.30 project may be undertaken by the government unit unless approval 32.31 of the project is first gotten from the board as to those 32.32 features of the project affecting the board's responsibilities 32.33 as determined by the board. 32.34 Sec. 5. [SEWER SERVICE FUNCTION.] 32.35 Subdivision 1. [DUTY OF BOARD; ACQUISITION OF EXISTING 32.36 FACILITIES; NEW FACILITIES.] At any time after the board has 33.1 become organized, it must assume ownership of all existing 33.2 interceptors and treatment works that are needed to implement 33.3 the board's comprehensive plan for the collection, treatment, 33.4 and disposal of sewage in the district, in the manner and 33.5 subject to the conditions prescribed in subdivision 2, and must 33.6 design, acquire, construct, better, equip, operate, and maintain 33.7 all additional interceptors and treatment works that will be 33.8 needed for this purpose. The board must assume ownership of all 33.9 treatment works owned by a local government unit if any part of 33.10 those treatment works are so needed. 33.11 Subd. 2. [METHOD OF ACQUISITION; EXISTING DEBT.] The board 33.12 may require any local government unit to transfer to the board 33.13 all of its right, title, and interest in any interceptors or 33.14 treatment works and all necessary appurtenances to them owned by 33.15 the local government unit that will be needed for the purpose 33.16 stated in subdivision 1. Appropriate instruments of conveyance 33.17 for all the property must be executed and delivered to the board 33.18 by the proper officers of each local government unit concerned. 33.19 The board, upon assuming ownership of any of the interceptors or 33.20 treatment works, is obligated to pay to the local government 33.21 unit amounts sufficient to pay, when due, all remaining 33.22 principal of and interest on bonds issued by the local 33.23 government unit for the acquisition or betterment of the 33.24 interceptors or treatment works. The board must also assume the 33.25 same obligation with respect to any other existing disposal 33.26 system owned by a local government unit that the board 33.27 determines to have been replaced or rendered useless by the 33.28 district disposal system. The amounts to be paid under this 33.29 subdivision may be offset against any amount to be paid to the 33.30 board by the local government unit as provided in section 8. 33.31 The board is not obligated to pay the local government unit 33.32 anything in addition to the assumption of debt provided for in 33.33 this subdivision. 33.34 Subd. 3. [EXISTING JOINT POWERS BOARD.] Effective December 33.35 31, 2004, or an earlier date as determined by the board, the 33.36 corporate existence of the joint powers board created by 34.1 agreement among local government units under Minnesota Statutes, 34.2 section 471.59, to provide the financing, acquisition, 34.3 construction, improvement, extension, operation, and maintenance 34.4 of facilities for the collection, treatment, and disposal of 34.5 sewage is terminated. All persons regularly employed by the 34.6 joint powers board on that date become employees of the board, 34.7 and may at their option become members of the retirement system 34.8 applicable to persons employed directly by the board or may 34.9 continue as members of a public retirement association under any 34.10 other law, to which they belonged before that date, and retain 34.11 all pension rights that they may have the other law and all 34.12 other rights to which they are entitled by contract or law. The 34.13 board must make the employer's contributions to pension funds of 34.14 its employees. The employees must perform duties as may be 34.15 prescribed by the board. On December 31, 2004, or the earlier 34.16 date, all funds of the joint powers board and all later 34.17 collections of taxes, special assessments, or service charges, 34.18 or any other sums due the joint powers board, or levied or 34.19 imposed by or for the joint powers board, must be transferred to 34.20 or made payable to the sanitary sewer board and the county 34.21 auditor must remit the sums to the board. The local government 34.22 units otherwise entitled to the cash, taxes, assessments, or 34.23 service charges must be credited with the amounts, and the 34.24 credits must be offset against any amounts to be paid by them to 34.25 the board as provided in section 8. On December 31, 2004, or 34.26 the earlier chosen date, the board shall succeed to and become 34.27 vested with all right, title, and interest in and to any 34.28 property, real or personal, owned or operated by the joint 34.29 powers board. Before that date, the proper officers of the 34.30 joint powers board must execute and deliver to the sanitary 34.31 sewer board all deeds, conveyances, bills of sale, and other 34.32 documents or instruments required to vest in the board good and 34.33 marketable title to all the real or personal property, but this 34.34 article operates as the transfer and conveyance to the board of 34.35 the real or personal property, if not transferred, as may be 34.36 required under the law or under the circumstances. On December 35.1 31, 2004, or the earlier chosen date, the board is obligated to 35.2 pay or assume all outstanding bonds or other debt and all 35.3 contracts or obligations incurred by the joint powers board, and 35.4 all bonds, obligations, or debts of the joint powers board 35.5 outstanding on the date this article is effective, are validated. 35.6 Subd. 4. [CONTRACTS BETWEEN LOCAL GOVERNMENT UNITS.] The 35.7 board may terminate, upon 60 days' mailed notice to the 35.8 contracting parties, any existing contract between or among 35.9 local government units requiring payments by a local government 35.10 unit to any other local government unit for the use of a 35.11 disposal system, or as reimbursement of capital costs of a 35.12 disposal system, all or part of which are needed to implement 35.13 the board's comprehensive plan. All contracts between or among 35.14 local government units for use of a disposal system entered into 35.15 after the date on which this article becomes effective must be 35.16 submitted to the board for approval as to those features 35.17 affecting the board's responsibilities as determined by the 35.18 board and are not effective until the approval is given. 35.19 Sec. 6. [SEWAGE COLLECTION AND DISPOSAL; POWERS.] 35.20 Subdivision 1. [POWERS.] In addition to all other powers 35.21 conferred upon the board in this article, the board has the 35.22 powers specified in this section. 35.23 Subd. 2. [DISCHARGE OF TREATED SEWAGE.] The board may 35.24 discharge the effluent from any treatment works operated by it 35.25 into any waters of the state, subject to approval of the agency 35.26 if required and in accordance with any effluent or water quality 35.27 standards lawfully adopted by the agency, any interstate agency, 35.28 or any federal agency having jurisdiction. 35.29 Subd. 3. [USE OF DISTRICT SYSTEM.] The board may require 35.30 any person or local government unit to provide for the discharge 35.31 of any sewage, directly or indirectly, into the district 35.32 disposal system, or to connect any disposal system or a part of 35.33 it with the district disposal system wherever reasonable 35.34 opportunity is provided; may regulate the manner in which the 35.35 connections are made; may require any person or local government 35.36 unit discharging sewage into the disposal system to provide 36.1 preliminary treatment for it; may prohibit the discharge into 36.2 the district disposal system of any substance it determines will 36.3 or may be harmful to the system or any persons operating it; may 36.4 prohibit any extraneous flow into the system; and may require 36.5 any local government unit to discontinue the acquisition, 36.6 betterment, or operation of any facility for the unit's disposal 36.7 system wherever and so far as adequate service is or will be 36.8 provided by the district disposal system. 36.9 Sec. 7. [BUDGET.] 36.10 Except as otherwise specifically provided in this article, 36.11 the board is subject to Minnesota Statutes, section 275.065, the 36.12 Truth in Taxation Act. The board shall prepare and adopt, on or 36.13 before September 15 of each year, a budget showing for the 36.14 following calendar year or other fiscal year determined by the 36.15 board, sometimes referred to in this article as the budget year, 36.16 estimated receipts of money from all sources, including but not 36.17 limited to, payments by each local government unit, federal or 36.18 state grants, taxes on property, and funds on hand at the 36.19 beginning of the year, and estimated expenditures for: 36.20 (1) costs of operation, administration, and maintenance of 36.21 the district disposal system; 36.22 (2) cost acquisition and betterment of the district 36.23 disposal system; and 36.24 (3) debt service, including principal and interest, on 36.25 general obligation bonds and certificates issued under section 36.26 12, obligations and debts assumed under section 5, subdivisions 36.27 2 and 3, and any money judgments entered by a court of competent 36.28 jurisdiction. Expenditures within these general categories, and 36.29 others that the board may from time to time determine, must be 36.30 itemized in the detail the board prescribes. The board and its 36.31 officers, agents, and employees must not spend money for any 36.32 purpose other than debt service without having set forth the 36.33 expense in the budget, nor may they spend in excess of the 36.34 amount in the budget, and an excess expenditure or one for an 36.35 unauthorized purpose is enforceable except as the obligation of 36.36 the person incurring it; but the board may amend the budget at 37.1 any time by transferring from one budgetary purpose to another 37.2 any sums, except money for debt service and bond proceeds, or by 37.3 increasing expenditures in any amount by which cash receipts 37.4 during the budget year actually exceed the total amounts 37.5 designated in the original budget. The creation of any 37.6 obligation pursuant to section 12 or the receipts of any federal 37.7 or state grant is a sufficient budget designation of the 37.8 proceeds for the purpose for which it is authorized, and of the 37.9 tax or other revenue pledged to pay the obligation and interest 37.10 on it, whether or not specifically included in any annual budget. 37.11 Sec. 8. [ALLOCATION OF COSTS.] 37.12 Subdivision 1. [DEFINITION OF CURRENT COSTS.] The 37.13 estimated cost of administration, operation, maintenance, and 37.14 debt service of the district disposal system to be paid by the 37.15 board in each fiscal year and the estimated costs of acquisition 37.16 and betterment of the system that are to be paid during the year 37.17 from funds other than state or federal grants and bond proceeds 37.18 and all other previously unallocated payments made by the board 37.19 under this article in the fiscal year are referred to as current 37.20 costs. 37.21 Subd. 2. [COLLECTION OF CURRENT COSTS.] Current costs 37.22 shall be collected as described in paragraphs (a) and (b). 37.23 (a) Current costs may be allocated to local government 37.24 units in the district on an equitable basis as the board may 37.25 from time to time determine by resolution to be fair and 37.26 reasonable and in the best interests of the district. In making 37.27 the allocation, the board may provide for the deferment of 37.28 payment of all or part of current costs, the reallocation of 37.29 deferred costs, and the reimbursement of reallocated deferred 37.30 costs on an equitable basis as the board may from time to time 37.31 determine by resolution to be fair and reasonable and in the 37.32 best interests of the district. The adoption or revision of a 37.33 method of allocation, deferment, reallocation, or reimbursement 37.34 used by the board shall be made by the affirmative vote of at 37.35 least two-thirds of the members of the board. 37.36 (b) Upon approval of at least two-thirds of the members of 38.1 the board, the board may provide for direct collection of 38.2 current costs by monthly or other periodic billing of sewer 38.3 users. 38.4 Sec. 9. [GOVERNMENT UNITS; PAYMENTS TO BOARD.] 38.5 Subdivision 1. [OBLIGATIONS OF GOVERNMENT UNITS TO THE 38.6 BOARD.] Each government unit must pay to the board all sums 38.7 charged to it as provided in section 8, at the times and in the 38.8 manner determined by the board. The governing body of each 38.9 government unit must take all action necessary to provide the 38.10 funds required for the payments and to make the payments when 38.11 due. 38.12 Subd. 2. [AMOUNTS DUE BOARD; WHEN PAYABLE.] Charges 38.13 payable to the board by local government units may be made 38.14 payable at the times during each year as the board determines, 38.15 after it has taken into account the dates on which taxes, 38.16 assessments, revenue collections, and other funds become 38.17 available to the government unit required to pay such charges. 38.18 Subd. 3. [GENERAL POWERS OF GOVERNMENT UNITS; LOCAL TAX 38.19 LEVIES.] To accomplish any duty imposed on it by the board, the 38.20 governing body of every government unit may, in addition to the 38.21 powers granted in this article and in any other law or charter, 38.22 exercise the powers granted any municipality by Minnesota 38.23 Statutes, chapters 117, 412, 429, and 475, and sections 115.46, 38.24 444.075, and 471.59, with respect to the area of the government 38.25 unit located in the district. In addition, the governing body 38.26 of every government unit located in whole or in part within the 38.27 district may levy taxes upon all taxable property in that part 38.28 of the government unit located in this district for all or a 38.29 part of the amount payable to the board. If the levy is for 38.30 only part of the amount payable to the board, the governing body 38.31 of the government unit may levy additional taxes on the entire 38.32 net tax capacity of all taxable property of the government unit 38.33 for all or a part of the balance remaining payable. The taxes 38.34 levied under this subdivision must be assessed and extended as a 38.35 tax upon the taxable property by the county auditor for the next 38.36 calendar year, free from any limit of rate or amount imposed by 39.1 law or charter. The tax must be collected and remitted in the 39.2 same manner as other general taxes of the government unit. 39.3 Subd. 4. [ALTERNATE LEVY.] In place of levying taxes on 39.4 all taxable property under subdivision 3, the governing body of 39.5 the government unit may elect to levy taxes upon the net tax 39.6 capacity of all taxable property, except agricultural property, 39.7 and upon only 25 percent of the net tax capacity of all 39.8 agricultural property, in that part of the government unit 39.9 located in the district for all or a part of the amount payable 39.10 to the board. If the levy is for only part of the amount 39.11 payable to the board, the governing body may levy additional 39.12 taxes on the entire net tax capacity of all the property, 39.13 including agricultural property, for all or a part of the 39.14 balance. The taxes must be assessed and extended as a tax upon 39.15 the taxable property by the county auditor for the next calendar 39.16 year, free from any limit of rate or amount imposed by law or 39.17 charter, and must be collected and remitted in the same manner 39.18 as other general taxes of the government unit. In computing the 39.19 tax capacity under this subdivision, the county auditor must 39.20 include only 25 percent of the net tax capacity of all taxable 39.21 agricultural property and 100 percent of the net tax capacity of 39.22 all other taxable property in that part of the government unit 39.23 located within the district and, in spreading the levy, the 39.24 auditor must apply the mill rate upon the same percentages of 39.25 agricultural and nonagricultural taxable property. If the 39.26 government unit elects to levy taxes under this subdivision and 39.27 any of the taxable agricultural property is reclassified so as 39.28 to no longer qualify as agricultural property, it is subject to 39.29 additional taxes. The additional taxes must be in an amount 39.30 which, together with any additional taxes previously levied and 39.31 the estimated collection of additional taxes subsequently levied 39.32 on any other reclassified property, is determined by the 39.33 governing body of the government unit to be at least sufficient 39.34 to reimburse each other government unit for any excess current 39.35 costs reallocated to it as a result of the board deferring any 39.36 current cost under section 8 on account of the difference 40.1 between the amount of the current costs initially allocated to 40.2 each government unit based on the total net tax capacity of all 40.3 taxable property in the district and the amount of the current 40.4 costs reallocated to each government unit based on 25 percent of 40.5 the net tax capacity of agricultural property and 100 percent of 40.6 the net tax capacity of all other taxable property in the 40.7 district. Any reimbursement must be made on terms which the 40.8 board determines to be just and reasonable. These additional 40.9 taxes may be levied in any greater amount as the governing body 40.10 of the government unit determines to be appropriate, but the 40.11 total amount of the additional taxes must not exceed the 40.12 difference between: 40.13 (1) the total amount of taxes that would have been levied 40.14 upon the reclassified property to help pay current costs charged 40.15 in each year to the government unit by the board if that part of 40.16 the costs, if any, initially allocated by the board solely on 40.17 the basis of 100 percent of the net tax capacity of all taxable 40.18 property in the district and then reallocated on the basis of 40.19 inclusion of only 25 percent of the net tax capacity of 40.20 agricultural property in the district was not reallocated and if 40.21 the amount of taxes levied by the government unit each year 40.22 under this subdivision to pay current costs had been based on 40.23 the initial allocation and had been imposed upon 100 percent of 40.24 the net tax capacity of all taxable property, including 40.25 agricultural property, in that part of the government unit 40.26 located in the district; and 40.27 (2) the amount of taxes levied each year under this 40.28 subdivision upon reclassified property, plus interest on the 40.29 cumulative amount of the difference accruing each year at the 40.30 approximate average annual rate borne by bonds issued by the 40.31 board and outstanding at the beginning of the year or, if no 40.32 bonds are then outstanding, at a rate of interest which may be 40.33 determined by the board, but not exceeding the maximum rate of 40.34 interest that may then be paid on bonds issued by the board. 40.35 The additional taxes are a lien upon the reclassified property 40.36 assessed in the same manner and for the same duration as all 41.1 other ad valorem taxes levied upon the property. The additional 41.2 taxes must be extended against the reclassified property on the 41.3 tax list for the current year and must be collected and remitted 41.4 in the same manner as other general taxes of the government 41.5 unit. No penalties or additional interest may be levied on the 41.6 additional taxes if timely paid. 41.7 Subd. 5. [DEBT LIMIT.] Any ad valorem taxes levied under 41.8 subdivision 3, by the governing body of a government unit to pay 41.9 any sums charged to it by the board pursuant to this article are 41.10 not subject to, or counted toward, any limit imposed by law on 41.11 the levy of taxes upon taxable property within any governmental 41.12 unit. 41.13 Subd. 6. [DEFICIENCY TAX LEVIES.] If the local government 41.14 unit fails to make a payment to the board when due, the board 41.15 may certify to the Douglas county auditor the amount required 41.16 for payment, with interest at not more than the maximum rate per 41.17 year authorized at that time on assessments under Minnesota 41.18 Statutes, section 429.061, subdivision 2. The auditor must levy 41.19 and extend the amount as a tax upon all taxable property in that 41.20 part of the government unit located in the district, for the 41.21 next calendar year, free from any limits imposed by law or 41.22 charter. The tax must be collected in the same manner as other 41.23 general taxes of the government unit, and the proceeds, when 41.24 collected, shall be paid by the county treasurer to the 41.25 treasurer of the board and credited to the government unit for 41.26 which the tax was levied. 41.27 Sec. 10. [PUBLIC HEARING AND SPECIAL ASSESSMENTS.] 41.28 Subdivision 1. [PUBLIC HEARING REQUIREMENT ON SPECIFIC 41.29 PROJECT.] Before the board orders any project involving the 41.30 acquisition or betterment of any interceptor or treatment works, 41.31 all or a part of the cost of which will be allocated to local 41.32 government units under section 8 as current costs, the board 41.33 must hold a public hearing on the proposed project following two 41.34 publications in a newspaper or newspapers having general 41.35 circulation in the district, stating the time and place of the 41.36 hearing, the general nature and location of the project, the 42.1 estimated total cost of acquisition and betterment, that portion 42.2 of costs estimated to be paid out of federal and state grants, 42.3 and that portion of costs estimated to be allocated to each 42.4 local government unit affected. The two publications must be a 42.5 week apart and the hearing must be at least three days after the 42.6 last publication. Not less than 45 days before the hearing, 42.7 notice must also be mailed to each clerk of all local government 42.8 units in the district, but failure to give mailed notice of any 42.9 defects in the notice does not invalidate the proceedings. The 42.10 project may include all or part of one or more interceptors or 42.11 treatment works. A hearing is not required with respect to a 42.12 project, no part of the costs of which are to be allocated to 42.13 local government units as the current cost of acquisition, 42.14 betterment, and debt service. 42.15 Subd. 2. [NOTICE TO BENEFITED PROPERTY OWNERS.] If the 42.16 governing body of a local government unit in the district 42.17 proposes to assess against benefited property within units, all 42.18 or any part of the allocable costs of the project as provided in 42.19 subdivision 5, the governing body must, not less than ten days 42.20 before the hearing provided for in subdivision 1 mail a notice 42.21 of the hearing to the owner of each parcel within the area 42.22 proposed to be specially assessed and must also give one week's 42.23 published notice of the hearing. The notice of hearing must 42.24 contain the same information provided in the notice published by 42.25 the board under subdivision 1, and in addition, a description of 42.26 the area proposed to be assessed by the local government unit. 42.27 To give mailed notice, owners must be those shown to be on the 42.28 records of the county auditor or, in a county where tax 42.29 statements are mailed by the county treasurer, on the records of 42.30 the county treasurer; but other appropriate records may be used 42.31 for this purpose. However, for properties that are tax exempt 42.32 or subject to taxation on a gross earnings basis and are not 42.33 listed on the records of the county auditor or the county 42.34 treasurer, the owners may be ascertained by any practicable 42.35 means and mailed notice must be given to them. Failure to give 42.36 mailed notice or any defects in the notice does not invalidate 43.1 the proceedings of the board or the local governing body. 43.2 Subd. 3. [BOARD PROCEEDINGS PERTAINING TO HEARING.] Before 43.3 adoption of the resolution calling for the hearing, the board 43.4 shall get from the district engineer, or other competent person 43.5 of the board's selection, a preliminary report advising whether 43.6 the proposed project is feasible, necessary, and cost-effective, 43.7 and whether it should best be made as proposed or in connection 43.8 with another project, and the estimated costs of the project as 43.9 recommended. No error or omission in the report invalidates the 43.10 proceeding. The board may also take steps before the hearing 43.11 that will, in its judgment, provide helpful information in 43.12 determining the desirability and feasibility of the project 43.13 including, but not limited to, preparation of plans and 43.14 specifications and advertisement for bids. The hearing may be 43.15 adjourned from time to time and a resolution ordering the 43.16 project may be adopted at any time within six months after the 43.17 date of hearing. In ordering the project, the board may reduce 43.18 but not increase the extent of the project as stated in the 43.19 notice of hearing, unless another hearing is held, and must find 43.20 that the project as ordered is in accordance with the 43.21 comprehensive plan and program adopted by the board under 43.22 section 4. 43.23 Subd. 4. [EMERGENCY ACTION.] If the board by resolution 43.24 adopted by the affirmative vote of not less than two-thirds of 43.25 its members determines that an emergency exists requiring the 43.26 immediate purchase of materials or supplies or the making of 43.27 emergency repairs, it may order the purchase of the supplies and 43.28 materials and the making of the repairs before any hearing 43.29 required under this section. But the board must set as early a 43.30 date as practicable for that hearing at the time it declares the 43.31 emergency. All other provisions of this section must be 43.32 followed in giving notice of and conducting a hearing. This 43.33 subdivision does not prevent the board or its agents from 43.34 purchasing maintenance supplies or incurring maintenance costs 43.35 without regard to the requirements of this section. 43.36 Subd. 5. [POWER OF GOVERNMENT UNIT TO SPECIALLY ASSESS.] A 44.1 local government unit may specially assess all or part of the 44.2 costs of acquisition and betterment of any project ordered by 44.3 the board under this section. A special assessment must be 44.4 levied in accordance with Minnesota Statutes, sections 429.051 44.5 to 429.081, except as otherwise provided in this subdivision. 44.6 No other provisions of Minnesota Statutes, chapter 429, apply. 44.7 For purposes of levying special assessments, the hearing on the 44.8 project required in subdivision 1 must serve as the hearing on 44.9 the making of the original improvement provided for by Minnesota 44.10 Statutes, section 429.051. The area assessed may be less than 44.11 but must not exceed the area proposed to be assessed as stated 44.12 in the notice of hearing on the project provided for in 44.13 subdivision 2. To determine the allocable cost of the project 44.14 to the local government units, the government unit may adopt one 44.15 of the procedures in paragraph (a) or (b). 44.16 (a) At any time after a contract is let for the project, 44.17 the local government unit may get from the board a current 44.18 written estimate, on the basis of historical and reasonably 44.19 projected data, of that part of the total cost of acquisition 44.20 and betterment of the project or of some part of the project 44.21 that will be allocated to the local government unit and the 44.22 number of years over which such costs will be allocated as 44.23 current costs of acquisition, betterment, and debt service under 44.24 section 8. The board is not bound by this estimate for 44.25 allocating the costs of the project to local government units. 44.26 (b) The governing body may get from the board a written 44.27 statement showing, for the prior period that the governing body 44.28 designates, that part of the costs previously allocated to the 44.29 local government unit as current costs of acquisition, 44.30 betterment, and debt service only, of all or any part of the 44.31 project designated by the governing body. In addition to the 44.32 allocable costs, the local government unit may include in the 44.33 total expense, as a basis for levying assessments, all other 44.34 expenses incurred directly by the local government unit in 44.35 connection with the project. Special assessments levied by the 44.36 government unit with respect to previously allocated costs 45.1 ascertained under this paragraph are payable in equal annual 45.2 installments extending over a period not exceeding by more than 45.3 one year the number of years that the costs have been allocated 45.4 to the local government unit or the estimated useful life of the 45.5 project, or part of the project, whichever number of years is 45.6 the lesser. No limit is placed on the number of times the 45.7 governing body of a local government unit may assess the 45.8 previously allocated costs not previously assessed by the 45.9 government unit. The power to specially assess provided for in 45.10 this section is in addition and supplemental to all other powers 45.11 of local government units to levy special assessments. 45.12 Sec. 11. [INITIAL COSTS.] 45.13 Subdivision 1. [CONTRIBUTIONS OR ADVANCES FROM LOCAL 45.14 GOVERNMENT UNITS.] The board may, at the time it considers 45.15 necessary and proper, request from a local government unit 45.16 necessary money to defray the costs of any obligations assumed 45.17 under section 5 and the costs of administration, operation, and 45.18 maintenance. Before making a request, the board must, by formal 45.19 resolution, determine the necessity for the money, setting forth 45.20 the purposes for which the money is needed and the estimated 45.21 amount for each purpose. Upon receiving a request, the 45.22 governing body of each local government unit may provide for 45.23 payment of the amount requested as it considers fair and 45.24 reasonable. The money may be paid out of general revenue funds 45.25 or any other available funds of any local government unit and 45.26 its governing body thereof may levy taxes to provide funds, free 45.27 from any existing limit imposed by law or charter. Money may be 45.28 provided by government units with or without interest, but if 45.29 interest is charged it must not exceed five percent per year. 45.30 The board must credit the local government unit for the payments 45.31 in allocating current costs under section 8, on the terms and at 45.32 the times as are agreed to with the local government unit. 45.33 Subd. 2. [LIMITED TAX LEVY.] The board may levy ad valorem 45.34 taxes on all taxable property in the district to defray any of 45.35 the costs described in subdivision 1, provided the costs have 45.36 not been defrayed by contribution under subdivision 1. Before 46.1 certifying a levy to the county auditor, the board must 46.2 determine the need for the money to be derived from the levy by 46.3 formal resolution setting forth the purposes for which the tax 46.4 money will be used and the amount proposed to be used for each 46.5 purpose. In allocating current costs under section 8, the board 46.6 must credit the government units for taxes collected under the 46.7 levy made under this subdivision on the terms and at the time 46.8 the board considers fair and reasonable and on terms consistent 46.9 with section 8, subdivision 2. 46.10 Sec. 12. [BONDS, CERTIFICATES, AND OTHER OBLIGATIONS.] 46.11 Subdivision 1. [BUDGET ANTICIPATION CERTIFICATES OF 46.12 INDEBTEDNESS.] (a) Before adopting its annual budget and in 46.13 anticipation of the collection of tax and other revenues 46.14 estimated and set forth by the board in the budget, the board 46.15 may by resolution, authorize the issuance, negotiation, and sale 46.16 in accordance with subdivision 5 in such form and manner and 46.17 upon such terms as it may determine of its negotiable general 46.18 obligation certificates of indebtedness in aggregate principal 46.19 amounts not exceeding 50 percent of the total amount of such tax 46.20 collections and other revenues and maturing not later than three 46.21 months after the close of the budget year in which issued. 46.22 Revenues listed in clauses (1) to (3) must not be anticipated 46.23 for this purpose: 46.24 (1) taxes already anticipated by the issuance of 46.25 certificates under subdivision 2; 46.26 (2) deficiency taxes levied pursuant to this subdivision; 46.27 and 46.28 (3) taxes levied for the payment of certificates issued 46.29 pursuant to subdivision 3. 46.30 (b) The proceeds of the sale of the certificates must be 46.31 used only for the purposes for which tax collections and other 46.32 revenues are to be expended under the budget. 46.33 (c) All tax collections and other revenues included in the 46.34 budget for the budget year, after the expenditures of tax 46.35 collections and other revenues in accordance with the budget, 46.36 must be irrevocably pledged and appropriated to a special fund 47.1 to pay the principal and interest on the certificates when due. 47.2 (d) If for any reason the tax collections and other 47.3 revenues are insufficient to pay the certificates and interest 47.4 when due, the board must levy a tax in the amount of the 47.5 deficiency on all taxable property in the district and must 47.6 appropriate this amount when received to the special fund. 47.7 Subd. 2. [TAX LEVY ANTICIPATION CERTIFICATES OF 47.8 INDEBTEDNESS.] After a tax is levied by the board under section 47.9 11, subdivision 2, and certified to the county auditors in 47.10 anticipation of the collection of the tax, if the tax has not 47.11 been anticipated by the issuance of certificates under 47.12 subdivision 1, the board may, by resolution, authorize the 47.13 issuance, negotiation, and sale in accordance with subdivision 5 47.14 in the form and manner and on the terms and conditions as it 47.15 determines its negotiable general obligation tax levy 47.16 anticipation certificates of indebtedness in aggregate principal 47.17 amounts not exceeding 50 percent of the uncollected tax for 47.18 which no penalty for nonpayment or delinquency has been 47.19 attached. The certificates must mature not later than April 1 47.20 in the year after the year in which the tax is collectible. The 47.21 proceeds of the tax in anticipation of which the certificates 47.22 were issued and other funds that may become available must be 47.23 applied to the extent necessary to repay the certificates. 47.24 Subd. 3. [EMERGENCY CERTIFICATES OF INDEBTEDNESS.] If in 47.25 any budget year the receipts of tax and other revenues for some 47.26 unforeseen cause become insufficient to pay the board's current 47.27 expenses, or if any calamity or other public emergency subjects 47.28 it to the necessity of making extraordinary expenditures, the 47.29 board may by resolution authorize the issuance, negotiation, and 47.30 sale in accordance with subdivision 5 in the form and manner and 47.31 on the terms and conditions as it may determine of its 47.32 negotiable general obligation certificates of indebtedness in an 47.33 amount sufficient to meet the deficiency, and the board must 47.34 levy on all taxable property in the district a tax sufficient to 47.35 pay the certificates and interest and shall appropriate all 47.36 collections of the tax to a special fund created for the payment 48.1 of the certificates and interest. 48.2 Subd. 4. [GENERAL OBLIGATION BONDS.] The board may by 48.3 resolution authorize the issuance of general obligation bonds 48.4 maturing serially in one or more annual or semiannual 48.5 installments for the acquisition or betterment of any part of 48.6 the district disposal system, including but not limited to, the 48.7 payment of interest during construction and for a reasonable 48.8 period thereafter, or for the refunding of outstanding bonds, 48.9 certificates of indebtedness, or judgments. The board must 48.10 pledge its full faith and credit and taxing power for the 48.11 payment of the bonds and shall provide for the issuance and sale 48.12 and for the security of the bonds in the manner provided in 48.13 Minnesota Statutes, chapter 475, and must have the same powers 48.14 and duties as a municipality issuing bonds under that law. An 48.15 election is not required to authorize the issuance of bonds and 48.16 the debt limit of Minnesota Statutes, chapter 475, do not apply 48.17 to the bonds. The board may also pledge for the payment of the 48.18 bonds and deduct from the amount of any tax levy required under 48.19 Minnesota Statutes, section 475.61, subdivision 1, any sums 48.20 receivable under section 9 or any state and federal grants 48.21 anticipated by the board and may covenant to refund the bonds if 48.22 and when and to the extent that for any reason the revenues, 48.23 together with other funds properly available and appropriated 48.24 for the purpose, are not sufficient to pay all principal and 48.25 interest due or about to become due; if the revenues have not 48.26 been anticipated by the issuance of certificates under 48.27 subdivision 1. All bonds that have been or shall hereafter be 48.28 issued and sold in conformity with the provisions of this 48.29 subdivision, and otherwise in conformity with law, are hereby 48.30 authorized, legalized, and validated. 48.31 Subd. 5. [MANNER OF SALE AND ISSUANCE OF 48.32 CERTIFICATES.] Certificates issued under subdivisions 1, 2, and 48.33 3 may be issued and sold by negotiation, without public sale, 48.34 and may be sold at a price equal to the percentage of their par 48.35 value, plus accrued interest, and bearing interest at the rate 48.36 or rates as may be determined by the board. No election is 49.1 required to authorize the issuance of certificates. 49.2 Certificates must bear the same rate of interest after maturity 49.3 as before and the full faith and credit and taxing power of the 49.4 board must be pledged to the payment of the certificates. 49.5 Sec. 13. [TAX LEVIES.] 49.6 The board may levy taxes to pay the bonds or other 49.7 obligations assumed by the district under section 5 and for debt 49.8 service of the district disposal system authorized in section 12 49.9 upon all taxable property within the district without limit of 49.10 rate or amount and without affecting the amount or rate of taxes 49.11 that may be levied by the board for other purposes or by any 49.12 local government unit in the district. No other provision of 49.13 law relating to debt limit shall restrict or in any way limit 49.14 the power of the board to issue the bonds and certificates 49.15 authorized in section 12. The board may also levy taxes as 49.16 provided in sections 9 and 11. The county auditor must annually 49.17 assess and extend upon the tax rolls the part of the taxes 49.18 levied by the board in each year that is certified to the 49.19 auditor by the board. The county treasurer must collect and 49.20 make settlement of the taxes with the treasurer of the board. 49.21 Sec. 14. [DEPOSITORIES.] 49.22 The board must from time to time designate one or more 49.23 national or state banks or trust companies authorized to do a 49.24 banking business as official depositories for money of the 49.25 board, and must require the treasurer to deposit all or a part 49.26 of the money in those institutions. The designation must be in 49.27 writing and must set forth all the terms and conditions on which 49.28 the deposits are made, and must be signed by the chair and 49.29 treasurer, and made a part of the minutes of the board. A 49.30 designated bank or trust company must qualify as a depository by 49.31 furnishing a corporate surety bond or collateral in the amount 49.32 required by Minnesota Statutes, section 118A.03. But, no bond 49.33 or collateral is required to secure any deposit insofar as it is 49.34 insured under federal law. 49.35 Sec. 15. [MONEY; ACCOUNTS AND INVESTMENTS.] 49.36 Subdivision 1. [RECEIPT AND APPLICATION.] All money 50.1 received by the board must be deposited or invested by the 50.2 treasurer and disposed of as the board directs in accordance 50.3 with its budget. But any money that has been pledged or 50.4 dedicated by the board to the payment of obligations or interest 50.5 on them or expenses incident to them, or for any other specific 50.6 purpose authorized by law, must be paid by the treasurer into 50.7 the fund to which they have been pledged. 50.8 Subd. 2. [FUNDS AND ACCOUNTS.] The board's treasurer must 50.9 establish funds and accounts as necessary or convenient to 50.10 handle the receipts and disbursements of the board in an orderly 50.11 fashion. 50.12 Subd. 3. [DEPOSIT AND INVESTMENT.] The money on hand in 50.13 the board's funds and accounts may be deposited in the official 50.14 depositories of the board or invested as provided in this 50.15 subdivision. The amount not currently needed or required by law 50.16 to be kept in cash on deposit may be invested in obligations 50.17 authorized by law for the investment of municipal sinking 50.18 funds. The money may also be held under certificates of deposit 50.19 issued by any official depository of the board. All investments 50.20 by the board must conform to an investment policy adopted by the 50.21 board as amended from time to time. 50.22 Subd. 4. [BOND PROCEEDS.] The use of proceeds of all bonds 50.23 issued by the board for the acquisition and betterment of the 50.24 district disposal system, and the use, other than investment, of 50.25 all money on hand in any sinking fund or funds of the board must 50.26 be governed by Minnesota Statutes, chapter 475, this article, 50.27 and the resolutions authorizing the issuance of the bonds. The 50.28 bond proceeds, when received, must be transferred to the 50.29 treasurer of the board for safekeeping, investment, and payment 50.30 of the costs for which they were issued. 50.31 Subd. 5. [AUDIT.] The board must provide for and pay the 50.32 cost of an independent annual audit of its official books and 50.33 records by the state auditor or a certified public accountant. 50.34 Sec. 16. [GENERAL POWERS OF BOARD.] 50.35 Subdivision 1. [ALL NECESSARY OR CONVENIENT POWERS.] The 50.36 board has powers necessary or convenient to discharge the duties 51.1 imposed upon it by law. The powers include those specified in 51.2 this article, but the express grant or enumeration of powers 51.3 does not limit the generality or scope of the grant of power in 51.4 this subdivision. 51.5 Subd. 2. [LAWSUITS.] The board may sue or be sued. 51.6 Subd. 3. [CONTRACTS.] The board may enter into any 51.7 contract necessary or proper for the exercise of its powers or 51.8 the accomplishment of its purposes. 51.9 Subd. 4. [RULES.] The board may adopt rules relating to 51.10 the board's responsibilities and may provide penalties not 51.11 exceeding the maximum penalty specified for a misdemeanor, and 51.12 the cost of prosecution may be added to the penalties imposed. 51.13 Any rule prescribing a penalty for violation must be published 51.14 at least once in a newspaper having general circulation in the 51.15 district. A violation may be prosecuted before any court in the 51.16 district having jurisdiction of misdemeanor, and every court has 51.17 jurisdiction of violations. A peace officer of any municipality 51.18 in the district may make arrests for violations committed 51.19 anywhere in the district in the manner and with the effect as 51.20 for violations of municipal ordinances or for statutory 51.21 misdemeanors. All fines collected must be deposited in the 51.22 treasury of the board, or may be allocated between the board and 51.23 the municipality in which the prosecution occurs on terms agreed 51.24 to by the board and the municipality. 51.25 Subd. 5. [GIFTS; GRANTS.] The board may accept gifts, may 51.26 apply for and accept grants or loans of money or other property 51.27 from the United States, the state, or any person for any of its 51.28 purposes, may enter into any agreement required to get the gift, 51.29 grant, loan, or other property; and may hold, use, and dispose 51.30 of money or property in accordance with the terms of the gift, 51.31 grant, loan or agreement. With respect to any loans or grants 51.32 of funds or real or personal property or other assistance from 51.33 any state or federal government or any agency or instrumentality 51.34 of the government, the board may contract to do and perform all 51.35 acts and things required as a condition or consideration under 51.36 state or federal law or rule or regulation, whether or not 52.1 included among the powers expressly granted to the board in this 52.2 article. 52.3 Subd. 6. [JOINT POWERS.] The board may act under Minnesota 52.4 Statutes, section 471.59, or any other appropriate law providing 52.5 for joint or cooperative action between government units. 52.6 Subd. 7. [RESEARCH; HEARINGS; INVESTIGATIONS; ADVISE.] The 52.7 board may conduct research studies and programs, collect and 52.8 analyze data, prepare reports, maps, charts, and tables, and 52.9 conduct all necessary hearings and investigations in connection 52.10 with the design, construction, and operation of the district 52.11 disposal system, and may advise and assist other government 52.12 units on system planning matters within the scope of its powers, 52.13 duties, and objectives, and may provide at the request of any 52.14 governmental unit other technical and administrative assistance 52.15 as the board considers appropriate for the government unit to 52.16 carry out the powers and duties vested in the government unit 52.17 under this article or imposed on or by the board. 52.18 Subd. 8. [EMPLOYEES; CONTRACTORS; INSURANCE.] The board 52.19 may employ on the terms it considers advisable, persons or firms 52.20 performing engineering, legal, or other services of a 52.21 professional nature; require any employee to get and file with 52.22 it an individual bond or fidelity insurance policy; and procure 52.23 insurance in the amounts it considers necessary against 52.24 liability of the board or its officers or both, for personal 52.25 injury or death and property damage or destruction, with the 52.26 force and effect stated in Minnesota Statutes, chapter 466, and 52.27 against risks of damage to or destruction of any of its 52.28 facilities, equipment, or other property as it considers 52.29 necessary. 52.30 Subd. 9. [PROPERTY.] The board may acquire by purchase, 52.31 lease, condemnation, gift, or grant, real or personal property 52.32 including positive and negative easements and water and air 52.33 rights, and it may construct, enlarge, improve, replace, repair, 52.34 maintain, and operate any interceptor, treatment works, or water 52.35 facility determined to be necessary or convenient for the 52.36 collection and disposal of sewage in the district. Any local 53.1 government unit and the commissioners of transportation and 53.2 natural resources may convey to or permit the use of these 53.3 facilities owned or controlled by the board, subject to the 53.4 rights of the holders of any bonds issued with respect to them 53.5 with or without compensation and without an election or approval 53.6 by any other government unit or agency. All powers conferred by 53.7 this subdivision may be exercised both within or outside the 53.8 district as may be necessary for the exercise by the board of 53.9 its powers or the accomplishment of its purposes. The board may 53.10 hold, lease, convey, or otherwise dispose of such property for 53.11 its purposes, upon the terms and in the manner it deems 53.12 advisable. Unless otherwise provided, the right to acquire 53.13 lands and property rights by condemnation must be exercised in 53.14 accordance with Minnesota Statutes, chapter 117, and must apply 53.15 to any property or interest in property owned by any local 53.16 government unit. But property devoted to an actual public use 53.17 at the time, or held to be devoted to such use within a 53.18 reasonable time, must not be so acquired unless a court of 53.19 competent jurisdiction determines that the use proposed by the 53.20 board is paramount. In case of property in actual public use, 53.21 the board may take possession of any property of which 53.22 condemnation proceedings have begun at any time after the 53.23 issuance of a court order appointing commissioners for its 53.24 condemnation. 53.25 Subd. 10. [RIGHTS-OF-WAY.] The board may construct or 53.26 maintain its systems or facilities in, along, on, under, over, 53.27 or through public waters, streets, bridges, viaducts, and other 53.28 public right-of-way without first getting a franchise from any 53.29 county or local government unit having jurisdiction over them. 53.30 But the facilities must be constructed and maintained in 53.31 accordance with the ordinances and resolutions of the county or 53.32 government unit relating to construction, installation, and 53.33 maintenance of similar facilities on public properties and must 53.34 not unnecessarily obstruct the public use of the rights-of-way. 53.35 Subd. 11. [DISPOSAL OF PROPERTY.] The board may sell, 53.36 lease, or otherwise dispose of any real or personal property 54.1 acquired by it that is no longer required to accomplish its 54.2 purposes. The property may be sold in the manner provided by 54.3 Minnesota Statutes, section 469.065, insofar as practical. The 54.4 board may give notice of sale it considers appropriate. When 54.5 the board determines that any property or any part of the 54.6 district disposal system that has been acquired from a local 54.7 government unit without compensation is no longer required, but 54.8 is required as a local facility by the government unit from 54.9 which is was acquired, the board may by resolution transfer it 54.10 to the government unit. 54.11 Subd. 12. [JOINT OPERATIONS.] The board may contract with 54.12 the United States or an agency of it, any state or agency of it, 54.13 or any regional public planning body in the state with 54.14 jurisdiction over any part of the district, or any other 54.15 municipal or public corporation, or governmental subdivision in 54.16 any state, for the joint use of any facility owned by the board 54.17 or the entity, for the operation by the entity of any system or 54.18 facility of the board, or for the performance on the board's 54.19 behalf of any service including, but not limited to, planning, 54.20 on the terms that may be agreed to by the contracting parties. 54.21 Unless designated by the board as a local sanitary sewer 54.22 facility, any treatment works or interceptor jointly used, or 54.23 operated on behalf of the board, as provided in this 54.24 subdivision, must be considered to be operated by the board to 54.25 include the facilities in the district disposal system. 54.26 Sec. 17. [LOCAL FACILITIES.] 54.27 Subdivision 1. [SANITARY SEWER FACILITIES.] Except as 54.28 otherwise provided in this article, local government units must 54.29 retain responsibility for the planning, design, acquisition, 54.30 betterment, operation, administration, and maintenance of all 54.31 local sanitary sewer facilities as provided by law. 54.32 Subd. 2. [ASSUMPTION OF RESPONSIBILITY OVER LOCAL SANITARY 54.33 SEWER FACILITIES.] The board must upon request of any government 54.34 unit assume, either alone or jointly with the local government 54.35 unit, all or any part of the responsibility of the local 54.36 government unit described in subdivision 1. Except as provided 55.1 in subdivision 4 and to exercise the responsibility, the board 55.2 has all the powers and duties elsewhere conferred in this 55.3 article with the same force and effect as if the local sanitary 55.4 sewer facilities were a part of the district disposal system. 55.5 Subd. 3. [WATER AND STREET FACILITIES.] The board may, on 55.6 request of any governmental unit, enter into an agreement under 55.7 which the board may assume, either alone or jointly with such 55.8 unit, the responsibility to get and construct water and street 55.9 facilities in conjunction with any project for the acquisition 55.10 or betterment of the district disposal system or any project 55.11 undertaken by the board under subdivision 2. Except as provided 55.12 in subdivision 4, and to exercise any responsibilities under 55.13 this subdivision, the board has all the powers and duties 55.14 elsewhere conferred in this article with the same force and 55.15 effect as if the water or street facilities were a part of the 55.16 district disposal system. 55.17 Subd. 4. [ALLOCATION OF CURRENT COSTS.] All current costs 55.18 attributable to responsibilities assumed by the board over local 55.19 sanitary sewer facilities and water and street facilities as 55.20 provided in this section must be allocated solely to the local 55.21 unit for or with whom the responsibilities are assumed on the 55.22 terms and over a period as the board determines to be equitable 55.23 and in the best interest of the district. But if two or more 55.24 government units form a region in accordance with this section 55.25 all or part of the current costs attributable to the region 55.26 must, at the request of its joint board, be allocated to the 55.27 region and provided in the agreement establishing the region. 55.28 Subd. 5. [PART OF DISTRICT SYSTEM.] This section or any 55.29 other part of this article does not prevent the board from 55.30 including, where appropriate, treatment works or interceptors, 55.31 previously designated or treated as local sanitary sewer 55.32 facilities, as a part of the district disposal system. 55.33 Sec. 18. [SERVICE CONTRACTS WITH GOVERNMENTS OUTSIDE 55.34 DISTRICT.] 55.35 The board may contract with the United States or any agency 55.36 of it, any state or any agency of it, or any municipal or public 56.1 corporation, governmental subdivision or agency, or political 56.2 subdivision in any state, outside the jurisdiction of the board, 56.3 for furnishing to the entities any services which the board may 56.4 furnish to local government units in the district under this 56.5 article including, but not limited to, planning for and the 56.6 acquisition, betterment, operation, administration, and 56.7 maintenance of any or all interceptors, treatment works, and 56.8 local sanitary sewer facilities; if the board may further 56.9 include as one of the terms of the contract that the entity also 56.10 pay to the board an amount as may be agreed upon as a reasonable 56.11 estimate of the proportionate share properly allocable to the 56.12 entity of costs of acquisition, betterment, and debt service 56.13 previously allocated to local government units in the district. 56.14 When the payments are made by the entities to the board, they 56.15 must be applied in reduction of the total amount of costs 56.16 allocated after that to each local government unit in the 56.17 district, on the equitable basis the board considers to be in 56.18 the best interest of the district. Any municipality in the 56.19 state may enter into the contract and perform all acts and 56.20 things required as a condition or consideration for it 56.21 consistent with the purpose of this article, whether or not 56.22 included among the powers otherwise granted to the municipality 56.23 by law or charter, the powers to include those powers set out in 56.24 section 9, subdivisions 3, 4, and 5. 56.25 Sec. 19. [CONSTRUCTION, MATERIALS, SUPPLIES, EQUIPMENT; 56.26 CONTRACTS.] 56.27 Subdivision 1. [PLANS AND SPECIFICATIONS.] When the board 56.28 orders a project involving the acquisition or betterment of a 56.29 part of the district disposal system, it must cause plans and 56.30 specifications of this project to be made, or if previously 56.31 made, to be modified, if necessary, and to be approved by the 56.32 agency if required, and after any required approval by the 56.33 agency, one or more contracts for work and materials called for 56.34 by the plans and specification may be awarded as provided in 56.35 this section. 56.36 Subd. 2. [UNIFORM MUNICIPAL CONTRACTING LAW.] All 57.1 contracts for work to be done or for purchases of materials, 57.2 supplies, or equipment must be done in accordance with Minnesota 57.3 Statutes, section 471.345. 57.4 Sec. 20. [ANNEXATION, WITHDRAWAL OF TERRITORY.] 57.5 Subdivision 1. [ANNEXATION.] Any municipality in Douglas 57.6 county, upon resolution adopted by a four-fifths vote of its 57.7 governing body, may petition the board for annexation to the 57.8 district of the area then comprising the municipality or any 57.9 part of it and, if accepted by the board, the area must be 57.10 considered annexed to the district and subject to the 57.11 jurisdiction of the board under the terms and provisions of this 57.12 article. The territory so annexed is subject to taxation and 57.13 assessment under this article and is subject to taxation by the 57.14 board like other property in the district for the payment of 57.15 principal and interest thereafter becoming due on general 57.16 obligations of the board, whether authorized or issued before or 57.17 after the annexation. The board may condition approval of the 57.18 annexation upon the contribution, by or on behalf of the 57.19 municipality petitioning for annexation, to the board of an 57.20 amount as may be agreed upon as being a reasonable estimate of 57.21 the proportionate share, properly allocable to the municipality, 57.22 of cost or acquisition, betterment, and debt service previously 57.23 allocated to local government units in the district, on the 57.24 terms as may be agreed upon and in place of or in addition to 57.25 further conditions as the board deems in the best interests of 57.26 the district. Notwithstanding any other provisions of this 57.27 article to the contrary, the conditions established for 57.28 annexation may include the requirement that the annexed 57.29 municipality pay for, contract for, and oversee the construction 57.30 of local sanitary sewer facilities and interceptor sewers as 57.31 those terms are defined in section 1. To pay the contribution 57.32 or satisfy any other condition established by the board, the 57.33 municipality petitioning annexation may exercise the powers 57.34 conferred in section 9. When the contributions are made by the 57.35 municipality to the board, they must be applied to reduce the 57.36 total amount of costs thereafter allocated to each local 58.1 government unit in the district, on the equitable basis as the 58.2 board considers to be in the best interests of the district, 58.3 applying so far as practicable and appropriate the criteria set 58.4 forth in section 8, subdivision 2. On annexation of the 58.5 territory, the secretary of the board must certify to the 58.6 auditor and treasurer of the county in which the municipality is 58.7 located the fact of the annexation and a legal description of 58.8 the territory annexed. 58.9 Subd. 2. [WITHDRAWALS.] A municipality may withdraw from 58.10 the district by resolution of its governing body. The 58.11 municipality must notify the board of the district of the 58.12 withdrawal by providing a copy of the resolution at least two 58.13 years in advance of the proposed withdrawal. Unless the 58.14 district and the withdrawing member agree otherwise by action of 58.15 their governing bodies, the taxable property of the withdrawing 58.16 member is subject to its required property tax levies under this 58.17 article for two taxes payable years following the notification 58.18 of the withdrawal and the withdrawing member retains any rights, 58.19 obligations, and liabilities obtained or incurred during its 58.20 participation. 58.21 Sec. 21. [PROPERTY EXEMPT FROM TAXATION.] 58.22 Any properties, real or personal, owned, leased, 58.23 controlled, used, or occupied by the sanitary sewer board for 58.24 any purpose under this article are declared to be acquired, 58.25 owned, leased, controlled, used, and occupied for public, 58.26 governmental, and municipal purposes, and are exempt from 58.27 taxation by the state or any political subdivision of the state; 58.28 but the properties are subject to special assessments levied by 58.29 a political subdivision for a local improvement in amounts 58.30 proportionate to and not exceeding the special benefit received 58.31 by the properties from the improvement. No possible use of any 58.32 of the properties in any manner different from their use as part 58.33 of the disposal system at the time may be considered in 58.34 determining the special benefit received by the properties. All 58.35 of the assessments are subject to final approval by the board, 58.36 whose determination of the benefits is conclusive upon the 59.1 political subdivision levying the assessment. 59.2 Sec. 22. [RELATION TO EXISTING LAWS.] 59.3 This article prevails over any law or charter inconsistent 59.4 with it. The powers conferred on the board under this article 59.5 do not diminish or supersede the powers conferred on the agency 59.6 by Minnesota Statutes, chapters 115 and 116. 59.7 Sec. 23. [APPLICATION; EFFECTIVE DATE; LOCAL APPROVAL; OPT 59.8 IN OR OUT.] 59.9 Subdivision 1. [APPLICATION.] This article applies to the 59.10 townships of Brandon, Carlos, LaGrand, Leaf Valley, Miltona, and 59.11 Moe, all in Douglas county. 59.12 Subd. 2. [EFFECTIVE DATE; LOCAL APPROVAL.] This article is 59.13 effective the day after a fourth township of the six listed in 59.14 subdivision 1 has timely completed compliance with Minnesota 59.15 Statutes, section 645.021, subdivisions 2 and 3. For any other 59.16 township listed in subdivision 1, this article is effective the 59.17 day after timely completing compliance with Minnesota Statutes, 59.18 section 645.021, subdivisions 2 and 3. A township listed in 59.19 subdivision 1 that fails to timely complete compliance with 59.20 Minnesota Statutes, section 645.021, subdivisions 2 and 3, may 59.21 petition for annexation to the district at a later time, as 59.22 provided in this article.