1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
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, chapters 373; 469. 1.19 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.20 ARTICLE 1 1.21 Section 1. [373.251] [LEVY FOR NON-COUNTY-OWNED PUBLIC 1.22 NURSING HOMES.] 1.23 (a) If a county having a population of 150,000 or more owns 1.24 a nursing home that is funded in whole or part with county 1.25 revenue, the county must levy an equal amount annually to be 1.26 distributed to all other nursing homes within the county that 1.27 are owned or owned and operated by public bodies. 1.28 (b) The proceeds of the levy authorized by paragraph (a) 1.29 must be prorated among the recipient nursing homes in the 1.30 proportion that the number of beds in each recipient nursing 1.31 home is to the number of beds in all the recipient nursing homes 1.32 in the county. 2.1 (c) The levy authorized by paragraph (a) may be levied in 2.2 addition to all other county levies authorized by law. 2.3 Sec. 2. [BEGINS FOR TAXES PAYABLE IN 2004.] 2.4 The levy added by section 1, paragraph (a), must first be 2.5 levied in 2003, payable in 2004. 2.6 Sec. 3. Minnesota Statutes 2002, section 373.45, 2.7 subdivision 1, is amended to read: 2.8 Subdivision 1. [DEFINITIONS.] (a) As used in this section, 2.9 the following terms have the meanings given. 2.10 (b) "Authority" means the Minnesota public facilities 2.11 authority. 2.12 (c) "Commissioner" means the commissioner of finance. 2.13 (d) "Debt obligation" means a general obligation bond 2.14 issued by a county, or a bond payable from a county lease 2.15 obligation under section 641.24, to provide funds for the 2.16 construction of: 2.17 (1) jails; 2.18 (2) correctional facilities; 2.19 (3) law enforcement facilities; 2.20 (4) social services and human services facilities; or 2.21 (5) solid waste facilities. 2.22 Sec. 4. Minnesota Statutes 2002, section 373.47, 2.23 subdivision 1, is amended to read: 2.24 Subdivision 1. [AUTHORITY TO INCUR DEBT.](a)Subject to 2.25 prior approval by the public safety radio system planning 2.26 committee under section 473.907, the governing body of a county 2.27 may finance the cost of designing, constructing, and acquiring 2.28 public safety communication system infrastructure and equipment 2.29 for use on the statewide, shared public safety radio system by 2.30 issuing: 2.31 (1) capital improvement bonds under section 373.40, as if 2.32 the infrastructure and equipment qualified as a "capital 2.33 improvement" within the meaning of section 373.40, subdivision 2.34 1, paragraph (b); and 2.35 (2) capital notes under the provisions of section 373.01, 2.36 subdivision 3, as if the equipment qualified as "capital 3.1 equipment" within the meaning of section 373.01, subdivision 3. 3.2(b) For purposes of this section, "county" means the3.3following counties: Anoka, Benton, Carver, Chisago, Dakota,3.4Dodge, Fillmore, Freeborn, Goodhue, Hennepin, Houston, Isanti,3.5Mower, Olmsted, Ramsey, Rice, Scott, Sherburne, Steele, Wabasha,3.6Washington, Wright, and Winona.3.7(c) The authority to incur debt under this section is not3.8effective until July 1, 2003, for the following counties:3.9Benton, Dodge, Fillmore, Freeborn, Goodhue, Houston, Mower,3.10Olmsted, Rice, Sherburne, Steele, Wabasha, Wright, and Winona.3.11 Sec. 5. Minnesota Statutes 2002, section 376.009, is 3.12 amended to read: 3.13 376.009 [COUNTY HOSPITAL DEFINED; MAY HAVE MANY BUILDINGS, 3.14 SITES.] 3.15 For the purposes of sections 376.01 to 376.06, "county 3.16 hospital" means any hospital owned or operated by a county which 3.17 may consist of any number of buildings at one location or any 3.18 number of buildings at different locations within the 3.19 county. The county board of any county that has not established 3.20 a county hospital may by resolution authorize a statutory or 3.21 home rule charter city and its city council to exercise the 3.22 powers of a county and the county board under sections 376.01 to 3.23 376.07, in which case references in sections 376.01 to 376.07 to 3.24 "county" and "county board" refer to the city so designated and 3.25 its governing body, respectively. 3.26 Sec. 6. Minnesota Statutes 2002, section 376.55, 3.27 subdivision 3, is amended to read: 3.28 Subd. 3. [FINANCING.] The county board may transfer 3.29 surplus funds from any fund except the road and bridge, sinking 3.30 or drainage ditch funds for the purpose of 3.31 establishing, acquiring, maintaining, enlarging, or adding to a 3.32 county nursing home. When surplus funds are not available for 3.33 transfer, a county board may issue bonds to pay the cost of 3.34 establishing, acquiring, equipping, furnishing, enlarging, or 3.35 adding to a county nursing home, subject to section 376.56. 3.36 Sec. 7. Minnesota Statutes 2002, section 376.55, is 4.1 amended by adding a subdivision to read: 4.2 Subd. 7. [CITY POWERS.] The county board of any county 4.3 that has not established a nursing home may by resolution 4.4 authorize a statutory or home rule charter city to exercise the 4.5 powers of a county under sections 376.55 to 376.60. A city so 4.6 designated may exercise within its boundaries all the powers of 4.7 a county under sections 376.55 to 376.60. 4.8 Sec. 8. Minnesota Statutes 2002, section 376.56, 4.9 subdivision 3, is amended to read: 4.10 Subd. 3. [CHAPTER 475 BONDS.] Bonds issued under section 4.11 376.55, subdivision 3, may be general obligations of the county 4.12 and may be issued and sold, and taxes levied for their payment 4.13 as provided under chapter 475. No election shall be required to 4.14 authorize the bond issue for acquiring, improving, remodeling, 4.15 or replacing an existing nursing home without increasing the 4.16 total number of accommodations for residents in all nursing 4.17 homes in the county. The revenues of the nursing home shall 4.18 also be pledged for the payment of the bonds and for any 4.19 interest and premium. Part of the proceeds may be deposited in 4.20 the debt service fund for the issue, to capitalize interest and 4.21 create a reserve to reduce or eliminate the tax otherwise 4.22 required by section 475.61 to be levied before issuing the 4.23 bonds. The remaining proceeds from the sale of the bonds and 4.24 any surplus funds transferred under section 376.55, subdivision 4.25 3 must be credited to and deposited in the county nursing home 4.26 building fund of the county in which the nursing home is located. 4.27 Sec. 9. [469.0772] [KOOCHICHING COUNTY; PORT AUTHORITY.] 4.28 The governing body of the county of Koochiching may 4.29 establish a port authority that has the same powers as a port 4.30 authority established under section 469.049. If the county 4.31 establishes a port authority, the governing body of the county 4.32 shall exercise all powers granted to a city by sections 469.048 4.33 to 469.068 or other law. Any city in Koochiching county may 4.34 participate in the activities of the county port authority under 4.35 terms jointly agreed to by the city and county. 4.36 Sec. 10. Minnesota Statutes 2002, section 469.103, 5.1 subdivision 2, is amended to read: 5.2 Subd. 2. [FORM.] The bonds of each series issued by the 5.3 authority under this section shall bear interest at a rate or 5.4 rates, shall mature at the time or times within2030 years from 5.5 the date of issuance, and shall be in the form, whether payable 5.6 to bearer, registrable as to principal, or fully registrable, as 5.7 determined by the authority. Section 469.102, subdivision 6, 5.8 applies to all bonds issued under this section, and the bonds 5.9 and their coupons, if any, when payable to bearer, shall be 5.10 negotiable instruments. 5.11 Sec. 11. Minnesota Statutes 2002, section 469.1813, 5.12 subdivision 8, is amended to read: 5.13 Subd. 8. [LIMITATION ON ABATEMENTS.] In any year, the 5.14 total amount of property taxes abated by a political subdivision 5.15 under this section may not exceed (1)fiveten percent of the 5.16 current levy, or (2)$100,000$200,000, whichever is greater. 5.17 Sec. 12. [469.193] [FOREIGN TRADE ZONES.] 5.18 A city, county, town, or other political subdivision may 5.19 apply to the board defined in United States Code, title 19, 5.20 section 81a, for the right to use the powers provided in United 5.21 States Code, title 19, sections 81a to 81u. If the right is 5.22 granted, the city, county, town, or other political subdivision 5.23 may use the powers within or outside of a port district. Any 5.24 city, county, town, or other political subdivision may apply 5.25 jointly with any other city, county, town, or other political 5.26 subdivision. 5.27 Sec. 13. Minnesota Statutes 2002, section 473.39, is 5.28 amended by adding a subdivision to read: 5.29 Subd. 1j. [OBLIGATIONS.] After July 1, 2003, in addition 5.30 to the authority in subdivision 1a, 1b, 1c, 1d, 1e, 1g, 1h, and 5.31 1i, the council may issue certificates of indebtedness, bonds, 5.32 or other obligations under this section in an amount not 5.33 exceeding $45,000,000 for capital expenditures as prescribed in 5.34 the council's regional transit master plan and transit capital 5.35 improvement program and for related costs, including the costs 5.36 of issuance and sale of the obligations. 6.1 Sec. 14. [APPLICATION.] 6.2 Section 13 applies to the counties of Anoka, Carver, 6.3 Dakota, Hennepin, Ramsey, Scott, and Washington. 6.4 Sec. 15. Minnesota Statutes 2002, section 473.898, 6.5 subdivision 3, is amended to read: 6.6 Subd. 3. [LIMITATIONS.] (a) The principal amount of the 6.7 bonds issued pursuant to subdivision 1, exclusive of any 6.8 original issue discount, shall not exceed the amount of 6.9 $10,000,000 plus the amount the council determines necessary to 6.10 pay the costs of issuance, fund reserves, debt service, and pay 6.11 for any bond insurance or other credit enhancement. 6.12 (b) In addition to the amount authorized under paragraph 6.13 (a), the council may issue bonds under subdivision 1 in a 6.14 principal amount of $3,306,300, plus the amount the council 6.15 determines necessary to pay the cost of issuance, fund reserves, 6.16 debt service, and any bond insurance or other credit 6.17 enhancement. The proceeds of bonds issued under this paragraph 6.18 may not be used to finance portable or subscriber radio sets. 6.19 (c) In addition to the amount authorized under paragraphs 6.20 (a) and (b), the council may issue bonds under subdivision 1 in 6.21 a principal amount of $12,000,000, plus the amount the council 6.22 determines necessary to pay the costs of issuance, fund 6.23 reserves, debt service, and any bond insurance or other credit 6.24 enhancement. The proceeds of bonds issued under this paragraph 6.25 must be used to pay up to 30 percent of the cost to a local 6.26 government unit of building a subsystem and may not be used to 6.27 finance portable or subscriber radio sets. The bond proceeds 6.28 may be used to make improvements to an existing 800 MHz radio 6.29 system that will interoperate with the regionwide public safety 6.30 radio communication system, provided that the improvements 6.31 conform to the board's plan and technical standards. The 6.32 council must time the sale and issuance of the bonds so that the 6.33 debt service on the bonds can be covered by the additional 6.34 revenue that will become available in the fiscal year ending 6.35 June 30, 2005, generated under section 403.11 and appropriated 6.36 under section 473.901. 7.1 Sec. 16. Minnesota Statutes 2002, section 474A.061, 7.2 subdivision 1, is amended to read: 7.3 Subdivision 1. [ALLOCATION APPLICATION.] (a) An issuer may 7.4 apply for an allocation under this section by submitting to the 7.5 department an application on forms provided by the department, 7.6 accompanied by (1) a preliminary resolution, (2) a statement of 7.7 bond counsel that the proposed issue of obligations requires an 7.8 allocation under this chapter and the Internal Revenue Code, (3) 7.9 the type of qualified bonds to be issued, (4) an application 7.10 deposit in the amount of one percent of the requested allocation 7.11 before the last Monday in July, or in the amount of two percent 7.12 of the requested allocation on or after the last Monday in July, 7.13 (5) a public purpose scoring worksheet for manufacturing project 7.14 and enterprise zone facility project applications, and (6) for 7.15 residential rental projects, a statement from the applicant or 7.16 bond counsel as to whether the project preserves existing 7.17 federally subsidized housing for residential rental project 7.18 applications and whether the project is restricted to persons 7.19 who are 55 years of age or older. The issuer must pay the 7.20 application deposit by a check made payable to the department of 7.21 finance. The Minnesota housing finance agency, the Minnesota 7.22 rural finance authority, and the Minnesota higher education 7.23 services office may apply for and receive an allocation under 7.24 this section without submitting an application deposit. 7.25 (b) An entitlement issuer may not apply for an allocation 7.26 from thehousing pool or from thepublic facilities pool unless 7.27 it has either permanently issued bonds equal to the amount of 7.28 its entitlement allocation for the current year plus any amount 7.29 of bonding authority carried forward from previous years or 7.30 returned for reallocation all of its unused entitlement 7.31 allocation. An entitlement issuer may not apply for an 7.32 allocation from the housing pool unless it either has 7.33 permanently issued bonds equal to any amount of bonding 7.34 authority carried forward from a previous year or has returned 7.35 for reallocation all of its unused entitlement allocation. For 7.36 purposes of this subdivision, its entitlement allocation 8.1 includes an amount obtained under section 474A.04, subdivision 8.2 6. This paragraph does not apply to an application from the 8.3 Minnesota housing finance agency for an allocation under 8.4 subdivision 2a for cities who choose to have the agency issue 8.5 bonds on their behalf. 8.6 (c) If an application is rejected under this section, the 8.7 commissioner must notify the applicant and return the 8.8 application deposit to the applicant within 30 days unless the 8.9 applicant requests in writing that the application be 8.10 resubmitted. The granting of an allocation of bonding authority 8.11 under this section must be evidenced by a certificate of 8.12 allocation. 8.13 Sec. 17. Minnesota Statutes 2002, section 475.58, 8.14 subdivision 3b, is amended to read: 8.15 Subd. 3b. [STREET RECONSTRUCTION.] (a) A municipality may, 8.16 without regard to the election requirement under subdivision 1, 8.17 issue and sell obligations for street reconstruction, if the 8.18 following conditions are met: 8.19 (1) the streets are reconstructed under a street 8.20 reconstruction plan that describes the streets to be 8.21 reconstructed, the estimated costs, and any planned 8.22 reconstruction of other streets in the municipality over the 8.23 next five years, and the plan and issuance of the obligations 8.24 has been approved by a vote of all of the members of the 8.25 governing body following a public hearing for which notice has 8.26 been published in the official newspaper at least ten days but 8.27 not more than 28 days prior to the hearing; and 8.28 (2) if a petition requesting a vote on the issuance is 8.29 signed by voters equal to five percent of the votes cast in the 8.30 last municipal general election and is filed with the municipal 8.31 clerk within 30 days of the public hearing, the municipality may 8.32 issue the bonds only after obtaining the approval of a majority 8.33 of the voters voting on the question of the issuance of the 8.34 obligations. 8.35 (b) Obligations issued under this subdivision are subject 8.36 to the debt limit of the municipality and are not excluded from 9.1 net debt under section 475.51, subdivision 4. 9.2 For purposes of this subdivision, street reconstruction includes 9.3 utility replacement and relocation, public safety street 9.4 modifications, and other activities incidental to the street 9.5 reconstruction, but does not include the portion of project cost 9.6 allocable to adding curbs and gutters where none previously 9.7 existed. 9.8 Sec. 18. [CORPORATE STATUS FOR CERTAIN FEDERAL TAX LAW.] 9.9 For purposes of section 1.103-1 of the federal income tax 9.10 regulations, Lewis and Clark Rural Water System, Inc. is hereby 9.11 recognized as a corporation authorized to act on behalf of its 9.12 members, including its Minnesota member governmental units, to 9.13 provide drinking water to their communities and to issue debt 9.14 obligations in its own name on behalf of some or all of its 9.15 members, provided that Minnesota member governmental units are 9.16 not liable for the payment of principal of or interest on such 9.17 obligations. 9.18 Sec. 19. Laws 1967, chapter 558, section 1, subdivision 5, 9.19 as amended by Laws 1979, chapter 135, section 1, and Laws 1985, 9.20 chapter 98, section 2, is amended to read: 9.21 Subd. 5. Promotion of tourist, agricultural and industrial 9.22 developments. The amount to be spent annually for the purposes 9.23 of this subdivision shall not exceedone dollarfive dollars per 9.24 capita of the county's population. 9.25 Sec. 20. [EFFECTIVE DATE; LOCAL APPROVAL.] 9.26 Section 19 is effective the day after the governing body of 9.27 Beltrami county and its chief clerical officer timely complete 9.28 their compliance with Minnesota Statutes, section 645.021, 9.29 subdivisions 2 and 3. 9.30 Sec. 21. Laws 1989, chapter 211, section 8, subdivision 2, 9.31 as amended by Laws 2002, chapter 390, section 24, is amended to 9.32 read: 9.33 Subd. 2. [OPERATION OF DISTRICT.] (a) A hospital district 9.34 created under this section shall be subject to Minnesota 9.35 Statutes, sections 447.32, except subdivision 1, to 447.41, and 9.36 except as provided otherwise in this act. 10.1 (b) A hospital district created under this section is a 10.2 municipal corporation and political subdivision of the state. 10.3 [EFFECTIVE DATE.] This section is effective upon compliance 10.4 with Minnesota Statutes, section 645.021, subdivision 3, by the 10.5 governing body of the Cook county hospital district. 10.6 Sec. 22. Laws 1989, chapter 211, section 8, subdivision 4, 10.7 as amended by Laws 2002, chapter 390, section 24, is amended to 10.8 read: 10.9 Subd. 4. [TAX LEVY.] The tax levied under Minnesota 10.10 Statutes, section 447.34, shall not exceed $300,000in any year,10.11and itsfor taxes levied in 2002. For taxes levied in 2003 and 10.12 subsequent years, the tax must not exceed the lesser of: 10.13 (1) the product of the hospital district's property tax 10.14 levy limitation for the previous year determined under this 10.15 subdivision, multiplied by 103 percent; or 10.16 (2) the product of the hospital district's property tax 10.17 levy limitation for the previous year determined under this 10.18 subdivision multiplied by the ratio of the most recent available 10.19 annual medical care expenditure category of the revised Consumer 10.20 Price Index, U.S. citywide average, for all urban consumers 10.21 prepared by the United States Department of Labor to the same 10.22 annual index for the previous year. 10.23 The proceeds of the tax may be used for all purposes of the 10.24 hospital district. 10.25 [EFFECTIVE DATE.] This section is effective upon compliance 10.26 with Minnesota Statutes, section 645.021, subdivision 3, by the 10.27 governing body of the Cook county hospital district. 10.28 Sec. 23. [KANDIYOHI COUNTY AND CITY OF WILLMAR; POWERS.] 10.29 Notwithstanding Minnesota Statutes, sections 469.090 and 10.30 469.1082, Kandiyohi county may exercise the powers of a city 10.31 under Minnesota Statutes, sections 469.090 to 469.107. 10.32 Kandiyohi county and the city of Willmar may enter into a joint 10.33 powers agreement under Minnesota Statutes, section 471.59, to 10.34 jointly or cooperatively exercise any of the powers common to 10.35 both the county and the city under Minnesota Statutes, sections 10.36 469.090 to 469.107, in a manner to be determined by a majority 11.1 of the Kandiyohi county board and the Willmar city council. 11.2 Sec. 24. [SPECIAL TAXING DISTRICT.] 11.3 A joint powers entity created under section 23 is a 11.4 political subdivision of the state and a special taxing district 11.5 as defined by Minnesota Statutes, section 275.066, clause (24), 11.6 with the power to adopt and certify a property tax levy to the 11.7 county auditor. The maximum allowable levy limit for this 11.8 special taxing district is the same levy limit as provided under 11.9 section 469.107, subdivision 1, and, to the extent levied, shall 11.10 replace the levy authorized under section 23 for Kandiyohi 11.11 county and the city of Willmar. 11.12 Sec. 25. [EFFECTIVE DATE; NO LOCAL APPROVAL REQUIRED.] 11.13 (a) Under Minnesota Statutes, section 645.023, subdivision 11.14 1, paragraph (a), no local approval of sections 23 and 24 is 11.15 required. 11.16 (b) Sections 23 and 24 are effective the day after their 11.17 final enactment. 11.18 Sec. 26. [NURSING HOME BONDS AUTHORIZED.] 11.19 Itasca county may issue bonds under Minnesota Statutes, 11.20 sections 376.55 and 376.56, to finance the construction of a 11.21 35-bed nursing home facility to replace an existing 35-bed 11.22 private facility located in the county. For the purposes of 11.23 Minnesota Statutes, section 376.56, subdivision 3, the 11.24 construction constitutes replacement of an existing nursing home 11.25 without increasing the number of accommodations for residents. 11.26 The bonds issued under this section must be payable solely from 11.27 revenues and may not be general obligations of the county. 11.28 Sec. 27. [EFFECTIVE DATE; LOCAL APPROVAL.] 11.29 Section 26 is effective the day after the governing body of 11.30 Itasca county and its chief clerical officer timely complete 11.31 their compliance with Minnesota Statutes, section 645.021, 11.32 subdivisions 2 and 3. 11.33 Sec. 28. [MINNEAPOLIS COMMUNITY PLANNING AND ECONOMIC 11.34 DEVELOPMENT DEPARTMENT.] 11.35 Subdivision 1. Notwithstanding a contrary provision of 11.36 law, the charter of the city of Minneapolis, or its civil 12.1 service rules, the city council of the city of Minneapolis may, 12.2 by ordinance: 12.3 (1) establish a department of the city to be designated as 12.4 the community planning and economic development department, or 12.5 another name as the city designates by ordinance. The term "the 12.6 department" as used in sections 28 to 30 means the community 12.7 planning and economic development department established under 12.8 this subdivision; 12.9 (2) transfer to the department the community development 12.10 and planning duties and functions of any other department or 12.11 office of the city of Minneapolis, including the employees 12.12 performing those duties and functions. If the duties and 12.13 functions of the city planning department are transferred to the 12.14 department, the department must perform the administrative 12.15 duties that were formerly performed by the city's planning 12.16 department on behalf of or at the request of the city's planning 12.17 commission; 12.18 (3) transfer any positions of the Minneapolis community 12.19 development agency to the city of Minneapolis. The ordinance 12.20 may provide the process for establishing, classifying, and 12.21 describing the duties for the transferred positions. Employees 12.22 of the Minneapolis community development agency who are not in 12.23 the classified service of the city of Minneapolis may be 12.24 transferred to the city of Minneapolis, and the city council may 12.25 transfer the employees into the classified service of the city 12.26 of Minneapolis and into positions for which the employees are 12.27 qualified, as determined by the city council; 12.28 (4) establish the position of director of the department in 12.29 the unclassified service of the city, and establish other 12.30 unclassified positions as necessary. Unclassified positions, 12.31 other than the director, must meet the following criteria: 12.32 (i) the person occupying the position must report to the 12.33 director or a deputy director; 12.34 (ii) the person occupying the position must be part of the 12.35 director's management team; 12.36 (iii) the duties of the position must involve significant 13.1 discretion and substantial involvement in the development, 13.2 interpretation, or implementation of city or department policy; 13.3 (iv) the duties of the position must not primarily require 13.4 technical expertise where continuity in the position would be 13.5 significant; and 13.6 (v) the person occupying the position must be accountable 13.7 to, loyal to, and compatible with the mayor, the city council, 13.8 and the director; and 13.9 (5) establish the terms and conditions of employment for 13.10 employees of the department. 13.11 Subd. 2. The employees of the department are employees of 13.12 the city of Minneapolis for the purposes of membership in the 13.13 public employees retirement association. An employee 13.14 transferred from the Minneapolis community development agency to 13.15 the city of Minneapolis must elect within six months of the 13.16 effective date of the transfer to either continue as a member of 13.17 the retirement program in which the employee participated on the 13.18 date of the employee's transfer to the city of Minneapolis or to 13.19 become a member of the public employees retirement association. 13.20 This election is irrevocable. An employee who was a member of 13.21 the Minneapolis employees retirement fund on the date of the 13.22 employee's transfer to the city of Minneapolis may continue as a 13.23 member of that fund retaining all vested rights, constructive 13.24 time, and employee and employer contributions made on the 13.25 employee's behalf to that fund. The city of Minneapolis must 13.26 make the required employer contributions to the elected 13.27 retirement program. An employee electing to become a member of 13.28 the public employees retirement association may enroll in the 13.29 association with vested rights based upon the employee's current 13.30 tenure as an employee of the Minneapolis community development 13.31 agency, but that tenure does not constitute allowable service 13.32 for purposes of determining benefits. 13.33 Subd. 3. The terms of a collective bargaining agreement 13.34 that is in effect between the Minneapolis community development 13.35 agency and its employees, some or all of whom may be transferred 13.36 to the city of Minneapolis, are binding upon the city of 14.1 Minneapolis and the employees for the term of the contract. 14.2 Subd. 4. An employee electing under subdivision 2 to 14.3 become a member of the public employees retirement association 14.4 may purchase allowable service credit from the association by 14.5 paying to the association an amount calculated under Minnesota 14.6 Statutes, section 356.55. The service credit that is 14.7 purchasable is a period or periods of employment by the 14.8 Minneapolis community development agency that would have been 14.9 eligible service for coverage by the general employees 14.10 retirement plan of the public employees retirement association 14.11 if the service had been rendered after the effective date of 14.12 this article. A person electing to purchase service credit 14.13 under this subdivision must provide any documentation of prior 14.14 service required by the executive director of the public 14.15 employees retirement association. Notwithstanding any provision 14.16 of Minnesota Statutes, section 356.55, to the contrary, the 14.17 prior service credit purchase payment may be made in whole or in 14.18 part on an institution-to-institution basis from a plan 14.19 qualified under the federal Internal Revenue Code, section 14.20 401(a), 401(k), or 414(h), or from an annuity qualified under 14.21 the federal Internal Revenue Code, section 403, or from a 14.22 deferred compensation plan under the federal Internal Revenue 14.23 Code, section 457, to the extent permitted by federal law. In 14.24 no event may a prior service credit purchase transfer be paid 14.25 directly to the person purchasing the service. 14.26 Sec. 29. [AUTHORITY.] 14.27 Subdivision 1. Notwithstanding a contrary law or provision 14.28 of the Minneapolis city charter, the city council may exercise 14.29 the powers granted by Minnesota Statutes, sections 469.001 to 14.30 469.134, and 469.152 to 469.1799, and any other powers granted 14.31 to a city of the first class, except for powers relating to 14.32 public housing. In exercising the powers authorized by this 14.33 section, the city of Minneapolis shall be the authority, agency, 14.34 or redevelopment agency referred to in Minnesota Statutes, 14.35 sections 469.001 to 469.134, and 469.152 to 469.1799, and the 14.36 city council of the city of Minneapolis shall be the governing 15.1 body or board of commissioners of the authority, agency, or 15.2 redevelopment agency. The city council may exercise the powers 15.3 authorized by this subdivision; by Laws 1980, chapter 595, as 15.4 amended; by Laws 1990, chapter 604, article 7, section 29, as 15.5 amended by Laws 1991, chapter 291, article 10, section 20; and 15.6 may exercise any other development or redevelopment powers 15.7 authorized by law, independently, or in conjunction with each 15.8 other, as though all of the authorized powers had been granted 15.9 to a single entity. But a program, project, or district 15.10 authorized by the city under Minnesota Statutes, sections 15.11 469.001 to 469.134, and 469.152 to 469.l799, is subject to the 15.12 limitations of the program, project, or district imposed by 15.13 Minnesota Statutes, sections 469.001 to 469.134, and 469.152 to 15.14 469.1799. 15.15 Subd. 2. The city council may delegate to the department 15.16 any of the powers granted to the city of Minneapolis under 15.17 subdivision 1, except the power to tax and the power to issue 15.18 bonds, notes, or other obligations of the city of Minneapolis. 15.19 Subd. 3. Notwithstanding a contrary law or provision of 15.20 the Minneapolis city charter, money, investments, real property, 15.21 personal property, assets, programs, projects, districts, 15.22 developments, or obligations of the Minneapolis community 15.23 development agency may be transferred by resolution of the city 15.24 council to the city of Minneapolis and be made subject to the 15.25 control, authority, and operation of the department. If a 15.26 transfer is made, the city of Minneapolis is bound by the 15.27 contractual obligations of the Minneapolis community development 15.28 agency with respect to the money, investments, real estate, 15.29 personal property, assets, programs, projects, districts, 15.30 developments, or obligations, including the obligations of any 15.31 bonds, notes, or other debt obligations of the Minneapolis 15.32 community development agency. The pledge of the full faith and 15.33 credit of the Minneapolis community development agency to any 15.34 bonds, notes, or other debt obligations of the Minneapolis 15.35 community development agency that are transferred to the city of 15.36 Minneapolis shall not be secured by the full faith and credit of 16.1 the city of Minneapolis and shall not be secured by the taxing 16.2 powers of the city of Minneapolis but only by the assets pledged 16.3 by the Minneapolis community development agency to the payment 16.4 of the bonds, notes, or other debt obligations. The city 16.5 council is granted the powers necessary to perform the 16.6 contractual obligations transferred to the city of Minneapolis. 16.7 Subd. 4. The city council may pledge to the payment of 16.8 bonds, notes, or other obligations of the city of Minneapolis 16.9 revenues, assets, reserves, or other property transferred to the 16.10 city of Minneapolis under this section. 16.11 Subd. 5. The city council may pledge to the payment of 16.12 bonds, notes, or other obligations of the city of Minneapolis 16.13 the full faith and credit of the city of Minneapolis, or the 16.14 taxing power of the city of Minneapolis, to finance programs, 16.15 projects, districts, developments, facilities, or activities 16.16 undertaken by the department. 16.17 Subd. 6. Unless prohibited by other law or a contractual 16.18 obligation including a pledge to the owners of bonds, notes, or 16.19 other indebtedness, the money and investments of the Minneapolis 16.20 community development agency transferred to the city of 16.21 Minneapolis under this section may be deposited in any fund or 16.22 account of the city of Minneapolis. 16.23 Subd. 7. If all money, investments, real property, 16.24 personal property, assets, programs, projects, districts, 16.25 developments, or obligations of the Minneapolis community 16.26 development agency are transferred to the city of Minneapolis, 16.27 the city council may, by resolution, dissolve the Minneapolis 16.28 community development agency. Any rights, duties, claims, 16.29 awards, grants, or liabilities that may arise after the 16.30 dissolution of the Minneapolis community development agency 16.31 shall constitute rights, duties, claims, awards, grants, or 16.32 liabilities of the city of Minneapolis. The pledge of the full 16.33 faith and credit of the Minneapolis community development agency 16.34 to any bonds, notes, or other debt obligations of the 16.35 Minneapolis community development agency that are transferred to 16.36 the city of Minneapolis shall not be secured by the full faith 17.1 and credit or the taxing powers of the city of Minneapolis but 17.2 shall be secured only by the assets pledged by the Minneapolis 17.3 community development agency to the payment of the bonds, notes, 17.4 or other debt obligations. 17.5 Subd. 8. If the city of Minneapolis exercises its powers 17.6 for industrial development or establishes industrial development 17.7 districts under Minnesota Statutes, sections 469.048 to 469.068, 17.8 the term "industrial," when used in relation to industrial 17.9 development, includes economic and economic development and 17.10 housing and housing development. 17.11 Sec. 30. [LIMITATIONS.] 17.12 Subdivision 1. Bonds, notes, or other obligations issued 17.13 to finance or refinance a program, project, district, 17.14 development, facility, or activity of the department must be 17.15 issued by the city council, or, at the request of the city 17.16 council, by the board of estimate and taxation of the city of 17.17 Minneapolis. The limitations of this section must not be 17.18 applied in a manner that impairs the security of bonds, notes, 17.19 or other obligations issued before the imposition of the 17.20 limitations. 17.21 Subd. 2. Unless otherwise provided in sections 28 to 30, 17.22 all actions of the city council under sections 28 to 30 are 17.23 actions within chapter 3, section 1, of the charter of the city 17.24 of Minneapolis. 17.25 Sec. 31. [EFFECTIVE DATE; LOCAL APPROVAL.] 17.26 Sections 28 to 30 are effective the day after the governing 17.27 body of the city of Minneapolis and its chief clerical officer 17.28 timely complete their compliance with Minnesota Statutes, 17.29 section 645.021, subdivisions 2 and 3. 17.30 Sec. 32. [BONDS ISSUANCE VALIDATED.] 17.31 The provisions of Minnesota Statutes, sections 373.47, 17.32 subdivision 1, and 473.907, subdivision 3, requiring prior 17.33 review and approval by the public safety radio system planning 17.34 committee do not apply to the general obligation bonds issued by 17.35 Anoka county in a principal amount of $10,500,000 on November 17.36 20, 2002. 18.1 [EFFECTIVE DATE.] This section is effective upon compliance 18.2 by the governing body of Anoka county with the provisions of 18.3 Minnesota Statutes, section 645.021. 18.4 Sec. 33. [VALIDATION OF APPROVAL.] 18.5 Notwithstanding Minnesota Statutes, section 645.021, 18.6 subdivision 3, Laws 1980, chapter 569, sections 2 through 8, 18.7 approved by the board of directors of local government 18.8 information systems by resolution adopted on July 30, 1980, are 18.9 effective as of July 1, 1980, and apply to obligations issued by 18.10 local government information systems after April 1, 2003. 18.11 Sec. 34. [EFFECTIVE DATES.] 18.12 This article is effective the day following final 18.13 enactment, except as otherwise provided in this article. 18.14 ARTICLE 2 18.15 Section 1. [LEGISLATIVE PURPOSE AND POLICY.] 18.16 The legislature determines that in the area in and around 18.17 the city of Alexandria, there are economic development issues 18.18 that can be more effectively dealt with by a single entity on a 18.19 coordinated basis rather than by multiple existing government 18.20 units. The legislature, therefore, declares that for a 18.21 coordinated approach to economic development in the area, it is 18.22 necessary to establish for the area an economic development 18.23 authority with the responsibility of exercising the powers of an 18.24 economic development authority in order to advance the economic 18.25 vitality of the area. 18.26 Sec. 2. [DEFINITIONS.] 18.27 Subdivision 1. [DEFINITIONS.] For the purposes of sections 18.28 1 to 8, the terms defined in this section have the following 18.29 meanings. 18.30 Subd. 2. [LAKES AREA ECONOMIC DEVELOPMENT 18.31 AUTHORITY.] "Lakes area economic development authority" or 18.32 "authority" means the lakes area economic authority established 18.33 as provided in section 3. 18.34 Subd. 3. [PERSON.] "Person" means an individual, 18.35 partnership, corporation, cooperative, or other organization or 18.36 entity, public or private. 19.1 Subd. 4. [MEMBER.] "Member" means the city of Alexandria 19.2 or Garfield or the township of Alexandria or La Grand, or any 19.3 other municipality, the geographic area of which is included 19.4 within the jurisdiction of the authority. 19.5 Subd. 5. [MUNICIPALITY.] "Municipality" means a statutory 19.6 or home rule charter city or town located in Douglas county. 19.7 Sec. 3. [LAKES AREA ECONOMIC DEVELOPMENT AUTHORITY.] 19.8 Subdivision 1. [ESTABLISHMENT.] A lakes area economic 19.9 development authority with jurisdiction over the geographic area 19.10 of its members is established as a public corporation and 19.11 political subdivision of the state with perpetual succession and 19.12 all the rights, powers, privileges, immunities, and duties that 19.13 may be validly granted to or imposed upon a municipal 19.14 corporation, as provided in sections 1 to 8. 19.15 Subd. 2. [BOARD OF COMMISSIONERS.] The authority is 19.16 governed by a board of commissioners to be selected as follows: 19.17 the mayor of each member city, and the chair of the town board 19.18 of each member town shall appoint one commissioner, subject to 19.19 the approval of the respective city council or town board. The 19.20 terms of the commissioner are as provided in subdivision 5. 19.21 Subd. 3. [TIME LIMITS FOR SELECTION, ALTERNATIVE 19.22 APPOINTMENT BY DISTRICT JUDGE.] The initial appointment of 19.23 commissioners must be made no later than 60 days after sections 19.24 1 to 8 become effective. Subsequent appointments must be made 19.25 within 60 days before the expiration of a term in the same 19.26 manner as the predecessor was selected. A vacancy on the board 19.27 must be filled within 60 days after it occurs. If a selection 19.28 is not made within the prescribed time, the chief judge of the 19.29 seventh judicial district of the Minnesota district court on 19.30 application by an interested person shall appoint an eligible 19.31 person to the board. 19.32 Subd. 4. [VACANCIES.] If a vacancy occurs in the office of 19.33 commissioner, the vacancy must be filled for the unexpired term 19.34 in a like manner as provided for selection of the commissioner 19.35 who vacated the office. The office must be considered vacant 19.36 under the conditions specified in Minnesota Statutes, section 20.1 351.02. 20.2 Subd. 5. [TERMS OF OFFICE.] The terms of the initial 20.3 appointees to the board of commissioners are for three, four, 20.4 five, and six years and must be established by lot among the 20.5 initial four commissioners. The mayor or town board chair of 20.6 any new member added under section 6 shall designate the term, 20.7 not to exceed six years, of the first commissioner selected to 20.8 represent the member. Succeeding terms of all commissioners are 20.9 six years, except that each commissioner serves until a 20.10 successor has been duly selected and qualified. 20.11 Subd. 6. [REMOVAL.] A commissioner may be removed by the 20.12 unanimous vote of the appointing governing body, with or without 20.13 cause. 20.14 Subd. 7. [QUALIFICATIONS.] A commissioner may, but need 20.15 not, be a resident of the territory of the member appointing 20.16 that commissioner. 20.17 Subd. 8. [COMPENSATION.] A commissioner must be paid a per 20.18 diem compensation for attending a regular or special meeting in 20.19 an amount determined by the board. A commissioner must be 20.20 reimbursed for all reasonable expenses incurred in the 20.21 performance of the commissioner's duties as determined by the 20.22 board. 20.23 Sec. 4. [POWERS; APPLICATION OF EDA LAW.] 20.24 Subdivision 1. [USE OF EDA POWERS.] Except as otherwise 20.25 provided in sections 1 to 8, the authority may exercise any of 20.26 the powers of an economic development authority (EDA) provided 20.27 by Minnesota Statutes, sections 469.090 to 469.1082, and for 20.28 this purpose the term "city" means a member. Minnesota 20.29 Statutes, sections 469.096 to 469.101, 469.103 to 469.106, and 20.30 469.108 to 469.1081 apply to the authority, except that the 20.31 authority's fiscal year is the calendar year. 20.32 Subd. 2. [LAW THAT IS NOT APPLICABLE.] The provisions in: 20.33 (1) Minnesota Statutes, section 469.091, subdivision 1, 20.34 expressly relating to: 20.35 (i) the adoption of an enabling resolution; 20.36 (ii) Minnesota Statutes, section 469.092; or 21.1 (iii) housing and redevelopment authorities; and 21.2 (2) Minnesota Statutes, sections 469.093, 469.095, 469.102, 21.3 and 469.107; 21.4 do not apply to the authority. 21.5 Sec. 5. [MEMBERS MUST LEVY TAXES FOR AUTHORITY.] 21.6 (a) A member shall, at the request of the authority, levy a 21.7 tax in any year for the benefit of the authority. The tax is, 21.8 for each member, a pro rata portion of the total amount of tax 21.9 requested by the authority based on the taxable market value 21.10 within a member's jurisdiction, but in no event may the tax in 21.11 any year exceed 0.01813 percent of taxable market value. For 21.12 purposes of this section, "taxable market value" has the meaning 21.13 as given in Minnesota Statutes, section 273.032. 21.14 (b) The treasurer of each member city or town shall, within 21.15 15 days after receiving the property tax settlements from the 21.16 county treasurer, pay to the treasurer of the authority the 21.17 amount collected for this purpose. The money must be used by 21.18 the authority for the purposes provided by sections 1 to 8. 21.19 Sec. 6. [ADDITION AND WITHDRAWAL OF MEMBERS.] 21.20 Subdivision 1. [ADDITIONS.] A municipality upon a 21.21 resolution adopted by a four-fifths vote of all of its governing 21.22 body may petition the authority to be included within the 21.23 jurisdiction of the authority and, if approved by the authority, 21.24 the geographic area of the municipality must be included within 21.25 the jurisdiction of the authority and subject to the 21.26 jurisdiction of the authority under sections 1 to 8. 21.27 Subd. 2. [WITHDRAWALS.] A municipality may withdraw from 21.28 the authority by resolution of its governing body. The 21.29 municipality must notify the board of commissioners of the 21.30 authority of the withdrawal by providing a copy of the 21.31 resolution at least two years in advance of the proposed 21.32 withdrawal. Unless the authority and the withdrawing member 21.33 agree otherwise by action of their governing bodies, the taxable 21.34 property of the withdrawing member is subject to the property 21.35 tax levy under section 5 for two taxes payable years following 21.36 the notification of the withdrawal and the withdrawing member 22.1 retains any rights, obligations, and liabilities obtained or 22.2 incurred during its participation. 22.3 Sec. 7. [CONTRACTS WITH NONPROFIT CORPORATIONS.] 22.4 The authority may enter into contracts with one or more 22.5 nonprofit corporations to make, from funds of and under 22.6 guidelines set by the authority, loans or grants for projects 22.7 the authority may undertake under sections 1 to 8. Minnesota 22.8 Statutes, section 465.719, does not apply so long as the 22.9 nonprofit corporation is not described in Minnesota Statutes, 22.10 section 465.719, subdivision 1, paragraph (b)(i) or (b)(ii). 22.11 Sec. 8. [RELATION TO EXISTING LAWS.] 22.12 Sections 1 to 8 must be given full effect notwithstanding 22.13 any law or charter that is inconsistent with them. 22.14 Sec. 9. [LOCAL APPROVAL; EFFECTIVE DATE.] 22.15 Sections 1 to 8 are only effective as to all affected 22.16 governing bodies on the day after the last of the governing 22.17 bodies or town boards of the cities of Alexandria and Garfield 22.18 and the towns of Alexandria and La Grand in Douglas county and 22.19 the chief clerical officer of each of them timely complete their 22.20 compliance with Minnesota Statutes, section 645.021, 22.21 subdivisions 2 and 3. 22.22 ARTICLE 3 22.23 Section 1. [DEFINITIONS.] 22.24 Subdivision 1. [APPLICATION.] The terms defined in this 22.25 section shall have the meaning given them unless otherwise 22.26 provided or indicated by the context. 22.27 Subd. 2. [ACQUISITION AND BETTERMENT.] "Acquisition" and 22.28 "betterment" shall have the meanings given them in Minnesota 22.29 Statutes, section 475.51. 22.30 Subd. 3. [AGENCY.] "Agency" means the Minnesota pollution 22.31 control agency created and established by Minnesota Statutes, 22.32 chapter 116. 22.33 Subd. 4. [AGRICULTURAL PROPERTY.] "Agricultural property" 22.34 means land as is classified agricultural land within the meaning 22.35 of Minnesota Statutes, section 273.13, subdivision 23. 22.36 Subd. 5. [CURRENT COSTS OF ACQUISITION, BETTERMENT, AND 23.1 DEBT SERVICE.] "Current costs of acquisition, betterment, and 23.2 debt service" means interest and principal estimated to be due 23.3 during the budget year on bonds issued to finance the 23.4 acquisition and betterment and all other costs of acquisition 23.5 and betterment estimated to be paid during the budget year from 23.6 funds other than bond proceeds and federal or state grants. 23.7 Subd. 6. [DISTRICT DISPOSAL SYSTEM.] "District disposal 23.8 system" means any and all of the interceptors or treatment works 23.9 owned, constructed, or operated by the board unless designated 23.10 by the board as local sanitary sewer facilities. 23.11 Subd. 7. [CENTRAL LAKES REGION SANITARY DISTRICT AND 23.12 DISTRICT.] "Central Lakes Region Sanitary District" and 23.13 "district" mean the area over which the sanitary sewer board has 23.14 jurisdiction, including those parts of the Douglas county 23.15 townships of Carlos, Brandon, La Grand, Leaf Valley, Miltona, 23.16 and Moe, as more particularly described by metes and bounds in 23.17 the comprehensive plan adopted under section 4. 23.18 Subd. 8. [INTERCEPTOR.] "Interceptor" means any sewer and 23.19 necessary appurtenances to it, including but not limited to, 23.20 mains, pumping stations, and sewage flow regulating and 23.21 measuring stations, that is designed for or used to conduct 23.22 sewage originating in more than one local government unit, or 23.23 that is designed or used to conduct all or substantially all the 23.24 sewage originating in a single local government unit from a 23.25 point of collection in that unit to an interceptor or treatment 23.26 works outside that unit, or that is determined by the board to 23.27 be a major collector of sewage used or designed to serve a 23.28 substantial area in the district. 23.29 Subd. 9. [LOCAL GOVERNMENT UNIT OR GOVERNMENT 23.30 UNIT.] "Local government unit" or "government unit" means any 23.31 municipal or public corporation or governmental or political 23.32 subdivision or agency located in whole or in part in the 23.33 district, authorized by law to provide for the collection and 23.34 disposal of sewage. 23.35 Subd. 10. [LOCAL SANITARY SEWER FACILITIES.] "Local 23.36 sanitary sewer facilities" means all or any part of any disposal 24.1 system in the district other than the district disposal system. 24.2 Subd. 11. [MUNICIPALITY.] "Municipality" means any 24.3 statutory or home rule charter city or town located in whole or 24.4 in part in the district. 24.5 Subd. 12. [PERSON.] "Person" means any individual, 24.6 partnership, corporation, limited liability company, 24.7 cooperative, or other organization or entity, public or private. 24.8 Subd. 13. [POLLUTION AND SEWER SYSTEM.] "Pollution" and 24.9 "sewer system" have the meanings given them in Minnesota 24.10 Statutes, section 115.01. 24.11 Subd. 14. [SANITARY SEWER BOARD OR BOARD.] "Sanitary sewer 24.12 board" or "board" means the sanitary sewer board established for 24.13 the Central Lakes Region Sanitary District as provided in 24.14 section 2. 24.15 Subd. 15. [SEWAGE.] "Sewage" means all liquid or 24.16 water-carried waste products from whatever sources derived, 24.17 together with the groundwater infiltration and surface water 24.18 that may be present. 24.19 Subd. 16. [TOTAL COSTS OF ACQUISITION AND BETTERMENT AND 24.20 COSTS OF ACQUISITION AND BETTERMENT.] "Total costs of 24.21 acquisition and betterment" and "costs of acquisition and 24.22 betterment" mean all acquisition and betterment expenses that 24.23 are permitted to be financed out of bond proceeds issued in 24.24 accordance with section 12, subdivision 4, whether or not the 24.25 expenses are in fact financed out of the bond proceeds. 24.26 Subd. 17. [TREATMENT WORKS AND DISPOSAL 24.27 SYSTEM.] "Treatment works" and "disposal system" have the 24.28 meanings given them in Minnesota Statutes, section 115.01. 24.29 Sec. 2. [SANITARY SEWER BOARD.] 24.30 Subdivision 1. [ESTABLISHMENT.] A sanitary sewer board 24.31 with jurisdiction in the Central Lakes Region Sanitary District 24.32 is established as a public corporation and political subdivision 24.33 of the state with perpetual succession and all the rights, 24.34 powers, privileges, immunities, and duties that may be validly 24.35 granted to or imposed upon a municipal corporation, as provided 24.36 in this article. 25.1 Subd. 2. [MEMBERS AND SELECTION.] The number of board 25.2 members and method by which they are selected is as follows: 25.3 The governing body of any municipality located in whole or part 25.4 within the district must each separately select one member. 25.5 Upon the board's ordering of a project to construct a sanitary 25.6 sewer, the governing body of any municipality must appoint one 25.7 additional member for each full 800 special assessments included 25.8 in the ordered project to be levied against property located in 25.9 the municipality. The term of each member is subject to the 25.10 approval of the voting members of the city council or town board. 25.11 Subd. 3. [TIME LIMIT; ALTERNATIVE APPOINTMENT.] The 25.12 initial board members must be selected as provided in 25.13 subdivision 2 within 60 days after this article is effective. A 25.14 successor must be selected at any time within 60 days before the 25.15 expiration of the predecessor's term in the same manner as the 25.16 predecessor was selected. Any vacancy on the board must be 25.17 filled within 60 days after it occurs. If a selection is not 25.18 made as provided within the time prescribed, the chief judge of 25.19 the seventh judicial district of the Minnesota district court, 25.20 on application by any interested person, shall appoint an 25.21 eligible person to the board. 25.22 Subd. 4. [VACANCIES.] If the office of any board member 25.23 becomes vacant, the vacancy shall be filled for the unexpired 25.24 term in the manner as provided for selection of the member who 25.25 vacated the office. The office shall be deemed vacant under the 25.26 conditions specified in Minnesota Statutes, section 351.02. 25.27 Subd. 5. [TERMS OF OFFICE.] The terms of all board members 25.28 shall be for one, two, three, or four calendar years to be 25.29 determined in accordance with subdivision 2 by the governing 25.30 body selecting such member. Terms shall expire on January 1 of 25.31 a calendar year, except that each member shall serve until a 25.32 successor has been duly selected and qualified. 25.33 Subd. 6. [REMOVAL.] A board member may be removed by the 25.34 unanimous vote of the appointing governing body with or without 25.35 cause. 25.36 Subd. 7. [QUALIFICATIONS.] Each board member may, but need 26.1 not be a resident of the district and may, but need not be an 26.2 elected public official. 26.3 Subd. 8. [CERTIFICATES OF SELECTION; OATH OF OFFICE.] A 26.4 certificate of selection to a seat of every board member, 26.5 stating the seat's term, must be made by the respective 26.6 municipal clerk. The certificate, with the approval attached by 26.7 other authority, if required, must be filled with the secretary 26.8 of state. A copy must be furnished to the board member and the 26.9 secretary of the board. Each member must qualify by taking and 26.10 subscribing to the oath of office prescribed by the Minnesota 26.11 Constitution, article V, section 6. The oath, duly certified by 26.12 the official administering the same, must be filed with the 26.13 secretary of state and the secretary of the board. 26.14 Subd. 9. [COMPENSATION OF BOARD MEMBERS.] Each board 26.15 member may be paid a per diem compensation to attend meetings 26.16 and for other services in an amount as may be specifically 26.17 authorized by the board from time to time. Per diem 26.18 compensation must not exceed $4,000 for any member in any one 26.19 year. All members of the board may be reimbursed for all 26.20 reasonable expenses incurred in the performance of their duties 26.21 as determined by the board. 26.22 Sec. 3. [GENERAL PROVISION FOR ORGANIZATION AND OPERATION 26.23 OF BOARD.] 26.24 Subdivision 1. [OFFICERS MEETINGS; SEAL.] A majority of 26.25 the members is a quorum at all meetings of the board, but a 26.26 lesser number may meet and adjourn from time to time and compel 26.27 the attendance of absent members. The board must meet regularly 26.28 at the time and place as the board by resolution designates. 26.29 Special meetings may be held at any time upon call of the chair 26.30 or any two members, upon written notice sent by mail to each 26.31 member at least three days before the meeting, or upon the 26.32 notice as the board by resolution may provide, or without notice 26.33 if each member is present or files with the secretary a written 26.34 consent to the meeting either before or after the meeting. 26.35 Except as otherwise provided in this article, any action within 26.36 the authority of the board may be taken by the affirmative vote 27.1 of a majority of the board at a regular or adjourned regular 27.2 meeting or at a duly held special meeting, but in any case only 27.3 if a quorum is present. All meetings of the board must be open 27.4 to the public as provided in Minnesota Statutes, chapter 13D. 27.5 Subd. 2. [CHAIR.] The board must elect a chair from its 27.6 membership. The term of the chair expires on January 1 of each 27.7 year. The chair presides at all meetings of the board, if 27.8 present, and must perform all other duties and functions usually 27.9 incumbent upon the officer, and all administrative functions 27.10 assigned to the chair by the board. The board must elect a 27.11 vice-chair from its membership to act for the chair during a 27.12 temporary absence or disability. 27.13 Subd. 3. [SECRETARY AND TREASURER.] The board must select 27.14 one or more persons who may, but need not be a member of the 27.15 board, to act as its secretary and treasurer. The secretary and 27.16 treasurer hold office at the pleasure of the board, subject to 27.17 the terms of any contract of employment that the board may enter 27.18 into with the secretary or treasurer. The secretary must record 27.19 the minutes of all meetings of the board, and is custodian of 27.20 all books and records of the board except those the board 27.21 entrusts to the custody of a designated employee. The board may 27.22 appoint a deputy to perform any and all functions of either the 27.23 secretary or the treasurer. A secretary or treasurer or a 27.24 deputy of either who is not a member of the board shall not have 27.25 any right to vote. 27.26 Subd. 4. [GENERAL MANAGER.] The board may appoint a 27.27 general manager who shall be selected solely upon the basis of 27.28 training, experience, and other qualifications. The general 27.29 manager serves at the pleasure of the board and at a 27.30 compensation to be determined by the board. The general manager 27.31 need not be a resident of the district and may also be selected 27.32 by the board to serve as either secretary or treasurer, or both, 27.33 of the board. The general manager must attend all meetings of 27.34 the board but must not vote. The general manager must: 27.35 (1) see that all resolutions, rules, regulations, or orders 27.36 of the board are enforced; 28.1 (2) appoint and remove, upon the basis of merit and 28.2 fitness, all subordinate officers and regular employees of the 28.3 board except the secretary and the treasurer and their deputies; 28.4 (3) present to the board plans, studies, and other reports 28.5 prepared for board purposes and recommend to the board for 28.6 adoption such measures as the general manager considers 28.7 necessary to enforce or carry out the powers and duties of the 28.8 board, or for the efficient administration of the affairs of the 28.9 board; 28.10 (4) keep the board fully advised as to its financial 28.11 condition, and prepare and submit to the board, and to the 28.12 governing bodies of the local government units, the board's 28.13 annual budget and other financial information the board 28.14 requests; 28.15 (5) recommend to the board for adoption rules recommended 28.16 as necessary for the efficient operation of a district disposal 28.17 system and all local sanitary sewer facilities over which the 28.18 board may assume responsibility as provided in section 17; and 28.19 (6) perform other duties as may be prescribed by the board. 28.20 Subd. 5. [PUBLIC EMPLOYEES.] The general manager and all 28.21 persons employed by the general manager and public employees, 28.22 and have all the rights and duties conferred on public employees 28.23 under the Minnesota Public Employment Labor Relations Act. The 28.24 compensation and conditions of employment of the employees is 28.25 not governed by any rule applicable to state employees in the 28.26 classified service or by Minnesota Statutes, chapter 15A, except 28.27 as specifically authorized by law. 28.28 Subd. 6. [PROCEDURES.] The board must adopt resolutions or 28.29 bylaws establishing procedures for board action, personnel 28.30 administration, record keeping, investment policy, approving 28.31 claims, authorizing or making disbursements, safekeeping funds, 28.32 and audit of all financial operations of the board. 28.33 Subd. 7. [SURETY BONDS AND INSURANCE.] The board may 28.34 procure surety bonds for its officers and employees in such 28.35 amounts as are considered necessary to assure proper performance 28.36 of their duties and proper accounting for funds in their custody. 29.1 It may buy insurance against risks to property and liability of 29.2 the board and its officers, agents, and employees for personal 29.3 injuries or death and property damage and destruction in the 29.4 amounts as it considers necessary or desirable, with the force 29.5 and effect stated in Minnesota Statutes, chapter 466. 29.6 Sec. 4. [COMPREHENSIVE PLAN.] 29.7 Subdivision 1. [BOARD PLAN AND PROGRAM.] The board shall 29.8 adopt a comprehensive plan for the collection, treatment, and 29.9 disposal of sewage in the district for designated periods that 29.10 the board considers proper and reasonable. The board must 29.11 prepare and adopt subsequent comprehensive plans for the 29.12 collection, treatment, and disposal of sewage in the district 29.13 for each succeeding designated period as the board considers 29.14 proper and reasonable. The plan must take into account the 29.15 preservation and best and most economic use of water and other 29.16 natural resources in the area; the preservation, use, and 29.17 potential for use of lands adjoining waters of the state to be 29.18 used for the disposal of sewage; and the impact such a disposal 29.19 system will have on present and future land use in the affected 29.20 area. The plans shall include the following: 29.21 (1) the exact legal description of the boundaries of the 29.22 district; 29.23 (2) the general location of needed interceptors and 29.24 treatment works; 29.25 (3) a description of the area that is to be served by the 29.26 various interceptors and treatment works; 29.27 (4) a long-range capital improvements program; and 29.28 (5) such other details as the board deems appropriate. 29.29 In developing the plans, the board shall consult with persons 29.30 designated by the governing bodies of any municipal or public 29.31 corporation or governmental or political subdivision or agency 29.32 within or without the district to represent such entities and 29.33 shall consider the data, resources, and input offered to the 29.34 board by such entities and any planning agency acting on behalf 29.35 of one or more such entities. Each plan, when adopted, must be 29.36 followed in the district and may be revised as often as the 30.1 board considers necessary. 30.2 Subd. 2. [REPORT TO DOUGLAS COUNTY.] Upon adoption of any 30.3 comprehensive plan that establishes or reestablishes the 30.4 boundaries of the district, the board must supply the 30.5 appropriate Douglas county offices with the boundaries of the 30.6 district. 30.7 Subd. 3. [COMPREHENSIVE PLANS; HEARING.] Before adopting 30.8 any later comprehensive plan, the board must hold a public 30.9 hearing on the proposed plan at the time and place in the 30.10 district it determines. The hearing may be continued from time 30.11 to time. Not less than 45 days before the hearing, the board 30.12 must publish notice of it in a newspaper or newspapers having 30.13 general circulation in the district stating the date, time, and 30.14 place of the hearing, and the place where the proposed plan may 30.15 be examined by any interested person. At the hearing, all 30.16 interested persons must be permitted to present their views on 30.17 the plan. 30.18 Subd. 4. [MUNICIPAL PLANS AND PROGRAMS; COORDINATION WITH 30.19 BOARD'S RESPONSIBILITIES.] Before undertaking the construction 30.20 of new sewers or other disposal facilities or the substantial 30.21 alteration or improvement of any existing sewers or other 30.22 disposal facilities, each local government unit may, and must if 30.23 the construction or alteration of any sewage disposal facilities 30.24 is contemplated by the government unit, adopt a comprehensive 30.25 plan and program for the collection, treatment, and disposal of 30.26 sewage for which the local government unit is responsible, 30.27 coordinated with the board's comprehensive plan, and may revise 30.28 the plan as often as deemed necessary. Each local plan or 30.29 revision must be submitted to the board for review and is 30.30 subject to the approval of the board as to those features of the 30.31 plan affecting the board's responsibilities as determined by the 30.32 board. Any features disapproved by the board must be modified 30.33 in accordance with the board's recommendations. No construction 30.34 project involving those features may be undertaken by the local 30.35 government unit unless its governing body first finds the 30.36 project to be in accordance with the government unit's 31.1 comprehensive plan and program as approved by the board. Before 31.2 approval by the board of the comprehensive plan and program of 31.3 any local government unit in the district, no construction 31.4 project may be undertaken by the government unit unless approval 31.5 of the project is first gotten from the board as to those 31.6 features of the project affecting the board's responsibilities 31.7 as determined by the board. 31.8 Sec. 5. [SEWER SERVICE FUNCTION.] 31.9 Subdivision 1. [DUTY OF BOARD; ACQUISITION OF EXISTING 31.10 FACILITIES; NEW FACILITIES.] At any time after the board has 31.11 become organized, it must assume ownership of all existing 31.12 interceptors and treatment works that are needed to implement 31.13 the board's comprehensive plan for the collection, treatment, 31.14 and disposal of sewage in the district, in the manner and 31.15 subject to the conditions prescribed in subdivision 2, and must 31.16 design, acquire, construct, better, equip, operate, and maintain 31.17 all additional interceptors and treatment works that will be 31.18 needed for this purpose. The board must assume ownership of all 31.19 treatment works owned by a local government unit if any part of 31.20 those treatment works are so needed. 31.21 Subd. 2. [METHOD OF ACQUISITION; EXISTING DEBT.] The board 31.22 may require any local government unit to transfer to the board 31.23 all of its right, title, and interest in any interceptors or 31.24 treatment works and all necessary appurtenances to them owned by 31.25 the local government unit that will be needed for the purpose 31.26 stated in subdivision 1. Appropriate instruments of conveyance 31.27 for all the property must be executed and delivered to the board 31.28 by the proper officers of each local government unit concerned. 31.29 The board, upon assuming ownership of any of the interceptors or 31.30 treatment works, is obligated to pay to the local government 31.31 unit amounts sufficient to pay, when due, all remaining 31.32 principal of and interest on bonds issued by the local 31.33 government unit for the acquisition or betterment of the 31.34 interceptors or treatment works. The board must also assume the 31.35 same obligation with respect to any other existing disposal 31.36 system owned by a local government unit that the board 32.1 determines to have been replaced or rendered useless by the 32.2 district disposal system. The amounts to be paid under this 32.3 subdivision may be offset against any amount to be paid to the 32.4 board by the local government unit as provided in section 8. 32.5 The board is not obligated to pay the local government unit 32.6 anything in addition to the assumption of debt provided for in 32.7 this subdivision. 32.8 Subd. 3. [EXISTING JOINT POWERS BOARD.] Effective December 32.9 31, 2004, or an earlier date as determined by the board, the 32.10 corporate existence of the joint powers board created by 32.11 agreement among local government units under Minnesota Statutes, 32.12 section 471.59, to provide the financing, acquisition, 32.13 construction, improvement, extension, operation, and maintenance 32.14 of facilities for the collection, treatment, and disposal of 32.15 sewage is terminated. All persons regularly employed by the 32.16 joint powers board on that date become employees of the board, 32.17 and may at their option become members of the retirement system 32.18 applicable to persons employed directly by the board or may 32.19 continue as members of a public retirement association under any 32.20 other law, to which they belonged before that date, and retain 32.21 all pension rights that they may have the other law and all 32.22 other rights to which they are entitled by contract or law. The 32.23 board must make the employer's contributions to pension funds of 32.24 its employees. The employees must perform duties as may be 32.25 prescribed by the board. On December 31, 2004, or the earlier 32.26 date, all funds of the joint powers board and all later 32.27 collections of taxes, special assessments, or service charges, 32.28 or any other sums due the joint powers board, or levied or 32.29 imposed by or for the joint powers board, must be transferred to 32.30 or made payable to the sanitary sewer board and the county 32.31 auditor must remit the sums to the board. The local government 32.32 units otherwise entitled to the cash, taxes, assessments, or 32.33 service charges must be credited with the amounts, and the 32.34 credits must be offset against any amounts to be paid by them to 32.35 the board as provided in section 8. On December 31, 2004, or 32.36 the earlier chosen date, the board shall succeed to and become 33.1 vested with all right, title, and interest in and to any 33.2 property, real or personal, owned or operated by the joint 33.3 powers board. Before that date, the proper officers of the 33.4 joint powers board must execute and deliver to the sanitary 33.5 sewer board all deeds, conveyances, bills of sale, and other 33.6 documents or instruments required to vest in the board good and 33.7 marketable title to all the real or personal property, but this 33.8 article operates as the transfer and conveyance to the board of 33.9 the real or personal property, if not transferred, as may be 33.10 required under the law or under the circumstances. On December 33.11 31, 2004, or the earlier chosen date, the board is obligated to 33.12 pay or assume all outstanding bonds or other debt and all 33.13 contracts or obligations incurred by the joint powers board, and 33.14 all bonds, obligations, or debts of the joint powers board 33.15 outstanding on the date this article is effective, are validated. 33.16 Subd. 4. [CONTRACTS BETWEEN LOCAL GOVERNMENT UNITS.] The 33.17 board may terminate, upon 60 days' mailed notice to the 33.18 contracting parties, any existing contract between or among 33.19 local government units requiring payments by a local government 33.20 unit to any other local government unit for the use of a 33.21 disposal system, or as reimbursement of capital costs of a 33.22 disposal system, all or part of which are needed to implement 33.23 the board's comprehensive plan. All contracts between or among 33.24 local government units for use of a disposal system entered into 33.25 after the date on which this article becomes effective must be 33.26 submitted to the board for approval as to those features 33.27 affecting the board's responsibilities as determined by the 33.28 board and are not effective until the approval is given. 33.29 Sec. 6. [SEWAGE COLLECTION AND DISPOSAL; POWERS.] 33.30 Subdivision 1. [POWERS.] In addition to all other powers 33.31 conferred upon the board in this article, the board has the 33.32 powers specified in this section. 33.33 Subd. 2. [DISCHARGE OF TREATED SEWAGE.] The board may 33.34 discharge the effluent from any treatment works operated by it 33.35 into any waters of the state, subject to approval of the agency 33.36 if required and in accordance with any effluent or water quality 34.1 standards lawfully adopted by the agency, any interstate agency, 34.2 or any federal agency having jurisdiction. 34.3 Subd. 3. [USE OF DISTRICT SYSTEM.] The board may require 34.4 any person or local government unit to provide for the discharge 34.5 of any sewage, directly or indirectly, into the district 34.6 disposal system, or to connect any disposal system or a part of 34.7 it with the district disposal system wherever reasonable 34.8 opportunity is provided; may regulate the manner in which the 34.9 connections are made; may require any person or local government 34.10 unit discharging sewage into the disposal system to provide 34.11 preliminary treatment for it; may prohibit the discharge into 34.12 the district disposal system of any substance it determines will 34.13 or may be harmful to the system or any persons operating it; may 34.14 prohibit any extraneous flow into the system; and may require 34.15 any local government unit to discontinue the acquisition, 34.16 betterment, or operation of any facility for the unit's disposal 34.17 system wherever and so far as adequate service is or will be 34.18 provided by the district disposal system. 34.19 Sec. 7. [BUDGET.] 34.20 Except as otherwise specifically provided in this article, 34.21 the board is subject to Minnesota Statutes, section 275.065, the 34.22 Truth in Taxation Act. The board shall prepare and adopt, on or 34.23 before September 15 of each year, a budget showing for the 34.24 following calendar year or other fiscal year determined by the 34.25 board, sometimes referred to in this article as the budget year, 34.26 estimated receipts of money from all sources, including but not 34.27 limited to, payments by each local government unit, federal or 34.28 state grants, taxes on property, and funds on hand at the 34.29 beginning of the year, and estimated expenditures for: 34.30 (1) costs of operation, administration, and maintenance of 34.31 the district disposal system; 34.32 (2) cost acquisition and betterment of the district 34.33 disposal system; and 34.34 (3) debt service, including principal and interest, on 34.35 general obligation bonds and certificates issued under section 34.36 12, obligations and debts assumed under section 5, subdivisions 35.1 2 and 3, and any money judgments entered by a court of competent 35.2 jurisdiction. Expenditures within these general categories, and 35.3 others that the board may from time to time determine, must be 35.4 itemized in the detail the board prescribes. The board and its 35.5 officers, agents, and employees must not spend money for any 35.6 purpose other than debt service without having set forth the 35.7 expense in the budget, nor may they spend in excess of the 35.8 amount in the budget, and an excess expenditure or one for an 35.9 unauthorized purpose is enforceable except as the obligation of 35.10 the person incurring it; but the board may amend the budget at 35.11 any time by transferring from one budgetary purpose to another 35.12 any sums, except money for debt service and bond proceeds, or by 35.13 increasing expenditures in any amount by which cash receipts 35.14 during the budget year actually exceed the total amounts 35.15 designated in the original budget. The creation of any 35.16 obligation pursuant to section 12 or the receipts of any federal 35.17 or state grant is a sufficient budget designation of the 35.18 proceeds for the purpose for which it is authorized, and of the 35.19 tax or other revenue pledged to pay the obligation and interest 35.20 on it, whether or not specifically included in any annual budget. 35.21 Sec. 8. [ALLOCATION OF COSTS.] 35.22 Subdivision 1. [DEFINITION OF CURRENT COSTS.] The 35.23 estimated cost of administration, operation, maintenance, and 35.24 debt service of the district disposal system to be paid by the 35.25 board in each fiscal year and the estimated costs of acquisition 35.26 and betterment of the system that are to be paid during the year 35.27 from funds other than state or federal grants and bond proceeds 35.28 and all other previously unallocated payments made by the board 35.29 under this article in the fiscal year are referred to as current 35.30 costs. 35.31 Subd. 2. [COLLECTION OF CURRENT COSTS.] Current costs 35.32 shall be collected as described in paragraphs (a) and (b). 35.33 (a) Current costs may be allocated to local government 35.34 units in the district on an equitable basis as the board may 35.35 from time to time determine by resolution to be fair and 35.36 reasonable and in the best interests of the district. In making 36.1 the allocation, the board may provide for the deferment of 36.2 payment of all or part of current costs, the reallocation of 36.3 deferred costs, and the reimbursement of reallocated deferred 36.4 costs on an equitable basis as the board may from time to time 36.5 determine by resolution to be fair and reasonable and in the 36.6 best interests of the district. The adoption or revision of a 36.7 method of allocation, deferment, reallocation, or reimbursement 36.8 used by the board shall be made by the affirmative vote of at 36.9 least two-thirds of the members of the board. 36.10 (b) Upon approval of at least two-thirds of the members of 36.11 the board, the board may provide for direct collection of 36.12 current costs by monthly or other periodic billing of sewer 36.13 users. 36.14 Sec. 9. [GOVERNMENT UNITS; PAYMENTS TO BOARD.] 36.15 Subdivision 1. [OBLIGATIONS OF GOVERNMENT UNITS TO THE 36.16 BOARD.] Each government unit must pay to the board all sums 36.17 charged to it as provided in section 8, at the times and in the 36.18 manner determined by the board. The governing body of each 36.19 government unit must take all action necessary to provide the 36.20 funds required for the payments and to make the payments when 36.21 due. 36.22 Subd. 2. [AMOUNTS DUE BOARD; WHEN PAYABLE.] Charges 36.23 payable to the board by local government units may be made 36.24 payable at the times during each year as the board determines, 36.25 after it has taken into account the dates on which taxes, 36.26 assessments, revenue collections, and other funds become 36.27 available to the government unit required to pay such charges. 36.28 Subd. 3. [GENERAL POWERS OF GOVERNMENT UNITS; LOCAL TAX 36.29 LEVIES.] To accomplish any duty imposed on it by the board, the 36.30 governing body of every government unit may, in addition to the 36.31 powers granted in this article and in any other law or charter, 36.32 exercise the powers granted any municipality by Minnesota 36.33 Statutes, chapters 117, 412, 429, and 475, and sections 115.46, 36.34 444.075, and 471.59, with respect to the area of the government 36.35 unit located in the district. In addition, the governing body 36.36 of every government unit located in whole or in part within the 37.1 district may levy taxes upon all taxable property in that part 37.2 of the government unit located in this district for all or a 37.3 part of the amount payable to the board. If the levy is for 37.4 only part of the amount payable to the board, the governing body 37.5 of the government unit may levy additional taxes on the entire 37.6 net tax capacity of all taxable property of the government unit 37.7 for all or a part of the balance remaining payable. The taxes 37.8 levied under this subdivision must be assessed and extended as a 37.9 tax upon the taxable property by the county auditor for the next 37.10 calendar year, free from any limit of rate or amount imposed by 37.11 law or charter. The tax must be collected and remitted in the 37.12 same manner as other general taxes of the government unit. 37.13 Subd. 4. [ALTERNATE LEVY.] In place of levying taxes on 37.14 all taxable property under subdivision 3, the governing body of 37.15 the government unit may elect to levy taxes upon the net tax 37.16 capacity of all taxable property, except agricultural property, 37.17 and upon only 25 percent of the net tax capacity of all 37.18 agricultural property, in that part of the government unit 37.19 located in the district for all or a part of the amount payable 37.20 to the board. If the levy is for only part of the amount 37.21 payable to the board, the governing body may levy additional 37.22 taxes on the entire net tax capacity of all the property, 37.23 including agricultural property, for all or a part of the 37.24 balance. The taxes must be assessed and extended as a tax upon 37.25 the taxable property by the county auditor for the next calendar 37.26 year, free from any limit of rate or amount imposed by law or 37.27 charter, and must be collected and remitted in the same manner 37.28 as other general taxes of the government unit. In computing the 37.29 tax capacity under this subdivision, the county auditor must 37.30 include only 25 percent of the net tax capacity of all taxable 37.31 agricultural property and 100 percent of the net tax capacity of 37.32 all other taxable property in that part of the government unit 37.33 located within the district and, in spreading the levy, the 37.34 auditor must apply the mill rate upon the same percentages of 37.35 agricultural and nonagricultural taxable property. If the 37.36 government unit elects to levy taxes under this subdivision and 38.1 any of the taxable agricultural property is reclassified so as 38.2 to no longer qualify as agricultural property, it is subject to 38.3 additional taxes. The additional taxes must be in an amount 38.4 which, together with any additional taxes previously levied and 38.5 the estimated collection of additional taxes subsequently levied 38.6 on any other reclassified property, is determined by the 38.7 governing body of the government unit to be at least sufficient 38.8 to reimburse each other government unit for any excess current 38.9 costs reallocated to it as a result of the board deferring any 38.10 current cost under section 8 on account of the difference 38.11 between the amount of the current costs initially allocated to 38.12 each government unit based on the total net tax capacity of all 38.13 taxable property in the district and the amount of the current 38.14 costs reallocated to each government unit based on 25 percent of 38.15 the net tax capacity of agricultural property and 100 percent of 38.16 the net tax capacity of all other taxable property in the 38.17 district. Any reimbursement must be made on terms which the 38.18 board determines to be just and reasonable. These additional 38.19 taxes may be levied in any greater amount as the governing body 38.20 of the government unit determines to be appropriate, but the 38.21 total amount of the additional taxes must not exceed the 38.22 difference between: 38.23 (1) the total amount of taxes that would have been levied 38.24 upon the reclassified property to help pay current costs charged 38.25 in each year to the government unit by the board if that part of 38.26 the costs, if any, initially allocated by the board solely on 38.27 the basis of 100 percent of the net tax capacity of all taxable 38.28 property in the district and then reallocated on the basis of 38.29 inclusion of only 25 percent of the net tax capacity of 38.30 agricultural property in the district was not reallocated and if 38.31 the amount of taxes levied by the government unit each year 38.32 under this subdivision to pay current costs had been based on 38.33 the initial allocation and had been imposed upon 100 percent of 38.34 the net tax capacity of all taxable property, including 38.35 agricultural property, in that part of the government unit 38.36 located in the district; and 39.1 (2) the amount of taxes levied each year under this 39.2 subdivision upon reclassified property, plus interest on the 39.3 cumulative amount of the difference accruing each year at the 39.4 approximate average annual rate borne by bonds issued by the 39.5 board and outstanding at the beginning of the year or, if no 39.6 bonds are then outstanding, at a rate of interest which may be 39.7 determined by the board, but not exceeding the maximum rate of 39.8 interest that may then be paid on bonds issued by the board. 39.9 The additional taxes are a lien upon the reclassified property 39.10 assessed in the same manner and for the same duration as all 39.11 other ad valorem taxes levied upon the property. The additional 39.12 taxes must be extended against the reclassified property on the 39.13 tax list for the current year and must be collected and remitted 39.14 in the same manner as other general taxes of the government 39.15 unit. No penalties or additional interest may be levied on the 39.16 additional taxes if timely paid. 39.17 Subd. 5. [DEBT LIMIT.] Any ad valorem taxes levied under 39.18 subdivision 3, by the governing body of a government unit to pay 39.19 any sums charged to it by the board pursuant to this article are 39.20 not subject to, or counted toward, any limit imposed by law on 39.21 the levy of taxes upon taxable property within any governmental 39.22 unit. 39.23 Subd. 6. [DEFICIENCY TAX LEVIES.] If the local government 39.24 unit fails to make a payment to the board when due, the board 39.25 may certify to the Douglas county auditor the amount required 39.26 for payment, with interest at not more than the maximum rate per 39.27 year authorized at that time on assessments under Minnesota 39.28 Statutes, section 429.061, subdivision 2. The auditor must levy 39.29 and extend the amount as a tax upon all taxable property in that 39.30 part of the government unit located in the district, for the 39.31 next calendar year, free from any limits imposed by law or 39.32 charter. The tax must be collected in the same manner as other 39.33 general taxes of the government unit, and the proceeds, when 39.34 collected, shall be paid by the county treasurer to the 39.35 treasurer of the board and credited to the government unit for 39.36 which the tax was levied. 40.1 Sec. 10. [PUBLIC HEARING AND SPECIAL ASSESSMENTS.] 40.2 Subdivision 1. [PUBLIC HEARING REQUIREMENT ON SPECIFIC 40.3 PROJECT.] Before the board orders any project involving the 40.4 acquisition or betterment of any interceptor or treatment works, 40.5 all or a part of the cost of which will be allocated to local 40.6 government units under section 8 as current costs, the board 40.7 must hold a public hearing on the proposed project following two 40.8 publications in a newspaper or newspapers having general 40.9 circulation in the district, stating the time and place of the 40.10 hearing, the general nature and location of the project, the 40.11 estimated total cost of acquisition and betterment, that portion 40.12 of costs estimated to be paid out of federal and state grants, 40.13 and that portion of costs estimated to be allocated to each 40.14 local government unit affected. The two publications must be a 40.15 week apart and the hearing must be at least three days after the 40.16 last publication. Not less than 45 days before the hearing, 40.17 notice must also be mailed to each clerk of all local government 40.18 units in the district, but failure to give mailed notice of any 40.19 defects in the notice does not invalidate the proceedings. The 40.20 project may include all or part of one or more interceptors or 40.21 treatment works. A hearing is not required with respect to a 40.22 project, no part of the costs of which are to be allocated to 40.23 local government units as the current cost of acquisition, 40.24 betterment, and debt service. 40.25 Subd. 2. [NOTICE TO BENEFITED PROPERTY OWNERS.] If the 40.26 governing body of a local government unit in the district 40.27 proposes to assess against benefited property within units, all 40.28 or any part of the allocable costs of the project as provided in 40.29 subdivision 5, the governing body must, not less than ten days 40.30 before the hearing provided for in subdivision 1 mail a notice 40.31 of the hearing to the owner of each parcel within the area 40.32 proposed to be specially assessed and must also give one week's 40.33 published notice of the hearing. The notice of hearing must 40.34 contain the same information provided in the notice published by 40.35 the board under subdivision 1, and in addition, a description of 40.36 the area proposed to be assessed by the local government unit. 41.1 To give mailed notice, owners must be those shown to be on the 41.2 records of the county auditor or, in a county where tax 41.3 statements are mailed by the county treasurer, on the records of 41.4 the county treasurer; but other appropriate records may be used 41.5 for this purpose. However, for properties that are tax exempt 41.6 or subject to taxation on a gross earnings basis and are not 41.7 listed on the records of the county auditor or the county 41.8 treasurer, the owners may be ascertained by any practicable 41.9 means and mailed notice must be given to them. Failure to give 41.10 mailed notice or any defects in the notice does not invalidate 41.11 the proceedings of the board or the local governing body. 41.12 Subd. 3. [BOARD PROCEEDINGS PERTAINING TO HEARING.] Before 41.13 adoption of the resolution calling for the hearing, the board 41.14 shall get from the district engineer, or other competent person 41.15 of the board's selection, a preliminary report advising whether 41.16 the proposed project is feasible, necessary, and cost-effective, 41.17 and whether it should best be made as proposed or in connection 41.18 with another project, and the estimated costs of the project as 41.19 recommended. No error or omission in the report invalidates the 41.20 proceeding. The board may also take steps before the hearing 41.21 that will, in its judgment, provide helpful information in 41.22 determining the desirability and feasibility of the project 41.23 including, but not limited to, preparation of plans and 41.24 specifications and advertisement for bids. The hearing may be 41.25 adjourned from time to time and a resolution ordering the 41.26 project may be adopted at any time within six months after the 41.27 date of hearing. In ordering the project, the board may reduce 41.28 but not increase the extent of the project as stated in the 41.29 notice of hearing, unless another hearing is held, and must find 41.30 that the project as ordered is in accordance with the 41.31 comprehensive plan and program adopted by the board under 41.32 section 4. 41.33 Subd. 4. [EMERGENCY ACTION.] If the board by resolution 41.34 adopted by the affirmative vote of not less than two-thirds of 41.35 its members determines that an emergency exists requiring the 41.36 immediate purchase of materials or supplies or the making of 42.1 emergency repairs, it may order the purchase of the supplies and 42.2 materials and the making of the repairs before any hearing 42.3 required under this section. But the board must set as early a 42.4 date as practicable for that hearing at the time it declares the 42.5 emergency. All other provisions of this section must be 42.6 followed in giving notice of and conducting a hearing. This 42.7 subdivision does not prevent the board or its agents from 42.8 purchasing maintenance supplies or incurring maintenance costs 42.9 without regard to the requirements of this section. 42.10 Subd. 5. [POWER OF GOVERNMENT UNIT TO SPECIALLY ASSESS.] A 42.11 local government unit may specially assess all or part of the 42.12 costs of acquisition and betterment of any project ordered by 42.13 the board under this section. A special assessment must be 42.14 levied in accordance with Minnesota Statutes, sections 429.051 42.15 to 429.081, except as otherwise provided in this subdivision. 42.16 No other provisions of Minnesota Statutes, chapter 429, apply. 42.17 For purposes of levying special assessments, the hearing on the 42.18 project required in subdivision 1 must serve as the hearing on 42.19 the making of the original improvement provided for by Minnesota 42.20 Statutes, section 429.051. The area assessed may be less than 42.21 but must not exceed the area proposed to be assessed as stated 42.22 in the notice of hearing on the project provided for in 42.23 subdivision 2. To determine the allocable cost of the project 42.24 to the local government units, the government unit may adopt one 42.25 of the procedures in paragraph (a) or (b). 42.26 (a) At any time after a contract is let for the project, 42.27 the local government unit may get from the board a current 42.28 written estimate, on the basis of historical and reasonably 42.29 projected data, of that part of the total cost of acquisition 42.30 and betterment of the project or of some part of the project 42.31 that will be allocated to the local government unit and the 42.32 number of years over which such costs will be allocated as 42.33 current costs of acquisition, betterment, and debt service under 42.34 section 8. The board is not bound by this estimate for 42.35 allocating the costs of the project to local government units. 42.36 (b) The governing body may get from the board a written 43.1 statement showing, for the prior period that the governing body 43.2 designates, that part of the costs previously allocated to the 43.3 local government unit as current costs of acquisition, 43.4 betterment, and debt service only, of all or any part of the 43.5 project designated by the governing body. In addition to the 43.6 allocable costs, the local government unit may include in the 43.7 total expense, as a basis for levying assessments, all other 43.8 expenses incurred directly by the local government unit in 43.9 connection with the project. Special assessments levied by the 43.10 government unit with respect to previously allocated costs 43.11 ascertained under this paragraph are payable in equal annual 43.12 installments extending over a period not exceeding by more than 43.13 one year the number of years that the costs have been allocated 43.14 to the local government unit or the estimated useful life of the 43.15 project, or part of the project, whichever number of years is 43.16 the lesser. No limit is placed on the number of times the 43.17 governing body of a local government unit may assess the 43.18 previously allocated costs not previously assessed by the 43.19 government unit. The power to specially assess provided for in 43.20 this section is in addition and supplemental to all other powers 43.21 of local government units to levy special assessments. 43.22 Sec. 11. [INITIAL COSTS.] 43.23 Subdivision 1. [CONTRIBUTIONS OR ADVANCES FROM LOCAL 43.24 GOVERNMENT UNITS.] The board may, at the time it considers 43.25 necessary and proper, request from a local government unit 43.26 necessary money to defray the costs of any obligations assumed 43.27 under section 5 and the costs of administration, operation, and 43.28 maintenance. Before making a request, the board must, by formal 43.29 resolution, determine the necessity for the money, setting forth 43.30 the purposes for which the money is needed and the estimated 43.31 amount for each purpose. Upon receiving a request, the 43.32 governing body of each local government unit may provide for 43.33 payment of the amount requested as it considers fair and 43.34 reasonable. The money may be paid out of general revenue funds 43.35 or any other available funds of any local government unit and 43.36 its governing body thereof may levy taxes to provide funds, free 44.1 from any existing limit imposed by law or charter. Money may be 44.2 provided by government units with or without interest, but if 44.3 interest is charged it must not exceed five percent per year. 44.4 The board must credit the local government unit for the payments 44.5 in allocating current costs under section 8, on the terms and at 44.6 the times as are agreed to with the local government unit. 44.7 Subd. 2. [LIMITED TAX LEVY.] The board may levy ad valorem 44.8 taxes on all taxable property in the district to defray any of 44.9 the costs described in subdivision 1, provided the costs have 44.10 not been defrayed by contribution under subdivision 1. Before 44.11 certifying a levy to the county auditor, the board must 44.12 determine the need for the money to be derived from the levy by 44.13 formal resolution setting forth the purposes for which the tax 44.14 money will be used and the amount proposed to be used for each 44.15 purpose. In allocating current costs under section 8, the board 44.16 must credit the government units for taxes collected under the 44.17 levy made under this subdivision on the terms and at the time 44.18 the board considers fair and reasonable and on terms consistent 44.19 with section 8, subdivision 2. 44.20 Sec. 12. [BONDS, CERTIFICATES, AND OTHER OBLIGATIONS.] 44.21 Subdivision 1. [BUDGET ANTICIPATION CERTIFICATES OF 44.22 INDEBTEDNESS.] (a) Before adopting its annual budget and in 44.23 anticipation of the collection of tax and other revenues 44.24 estimated and set forth by the board in the budget, the board 44.25 may by resolution, authorize the issuance, negotiation, and sale 44.26 in accordance with subdivision 5 in such form and manner and 44.27 upon such terms as it may determine of its negotiable general 44.28 obligation certificates of indebtedness in aggregate principal 44.29 amounts not exceeding 50 percent of the total amount of such tax 44.30 collections and other revenues and maturing not later than three 44.31 months after the close of the budget year in which issued. 44.32 Revenues listed in clauses (1) to (3) must not be anticipated 44.33 for this purpose: 44.34 (1) taxes already anticipated by the issuance of 44.35 certificates under subdivision 2; 44.36 (2) deficiency taxes levied pursuant to this subdivision; 45.1 and 45.2 (3) taxes levied for the payment of certificates issued 45.3 pursuant to subdivision 3. 45.4 (b) The proceeds of the sale of the certificates must be 45.5 used only for the purposes for which tax collections and other 45.6 revenues are to be expended under the budget. 45.7 (c) All tax collections and other revenues included in the 45.8 budget for the budget year, after the expenditures of tax 45.9 collections and other revenues in accordance with the budget, 45.10 must be irrevocably pledged and appropriated to a special fund 45.11 to pay the principal and interest on the certificates when due. 45.12 (d) If for any reason the tax collections and other 45.13 revenues are insufficient to pay the certificates and interest 45.14 when due, the board must levy a tax in the amount of the 45.15 deficiency on all taxable property in the district and must 45.16 appropriate this amount when received to the special fund. 45.17 Subd. 2. [TAX LEVY ANTICIPATION CERTIFICATES OF 45.18 INDEBTEDNESS.] After a tax is levied by the board under section 45.19 11, subdivision 2, and certified to the county auditors in 45.20 anticipation of the collection of the tax, if the tax has not 45.21 been anticipated by the issuance of certificates under 45.22 subdivision 1, the board may, by resolution, authorize the 45.23 issuance, negotiation, and sale in accordance with subdivision 5 45.24 in the form and manner and on the terms and conditions as it 45.25 determines its negotiable general obligation tax levy 45.26 anticipation certificates of indebtedness in aggregate principal 45.27 amounts not exceeding 50 percent of the uncollected tax for 45.28 which no penalty for nonpayment or delinquency has been 45.29 attached. The certificates must mature not later than April 1 45.30 in the year after the year in which the tax is collectible. The 45.31 proceeds of the tax in anticipation of which the certificates 45.32 were issued and other funds that may become available must be 45.33 applied to the extent necessary to repay the certificates. 45.34 Subd. 3. [EMERGENCY CERTIFICATES OF INDEBTEDNESS.] If in 45.35 any budget year the receipts of tax and other revenues for some 45.36 unforeseen cause become insufficient to pay the board's current 46.1 expenses, or if any calamity or other public emergency subjects 46.2 it to the necessity of making extraordinary expenditures, the 46.3 board may by resolution authorize the issuance, negotiation, and 46.4 sale in accordance with subdivision 5 in the form and manner and 46.5 on the terms and conditions as it may determine of its 46.6 negotiable general obligation certificates of indebtedness in an 46.7 amount sufficient to meet the deficiency, and the board must 46.8 levy on all taxable property in the district a tax sufficient to 46.9 pay the certificates and interest and shall appropriate all 46.10 collections of the tax to a special fund created for the payment 46.11 of the certificates and interest. 46.12 Subd. 4. [GENERAL OBLIGATION BONDS.] The board may by 46.13 resolution authorize the issuance of general obligation bonds 46.14 maturing serially in one or more annual or semiannual 46.15 installments for the acquisition or betterment of any part of 46.16 the district disposal system, including but not limited to, the 46.17 payment of interest during construction and for a reasonable 46.18 period thereafter, or for the refunding of outstanding bonds, 46.19 certificates of indebtedness, or judgments. The board must 46.20 pledge its full faith and credit and taxing power for the 46.21 payment of the bonds and shall provide for the issuance and sale 46.22 and for the security of the bonds in the manner provided in 46.23 Minnesota Statutes, chapter 475, and must have the same powers 46.24 and duties as a municipality issuing bonds under that law. An 46.25 election is not required to authorize the issuance of bonds and 46.26 the debt limit of Minnesota Statutes, chapter 475, do not apply 46.27 to the bonds. The board may also pledge for the payment of the 46.28 bonds and deduct from the amount of any tax levy required under 46.29 Minnesota Statutes, section 475.61, subdivision 1, any sums 46.30 receivable under section 9 or any state and federal grants 46.31 anticipated by the board and may covenant to refund the bonds if 46.32 and when and to the extent that for any reason the revenues, 46.33 together with other funds properly available and appropriated 46.34 for the purpose, are not sufficient to pay all principal and 46.35 interest due or about to become due; if the revenues have not 46.36 been anticipated by the issuance of certificates under 47.1 subdivision 1. All bonds that have been or shall hereafter be 47.2 issued and sold in conformity with the provisions of this 47.3 subdivision, and otherwise in conformity with law, are hereby 47.4 authorized, legalized, and validated. 47.5 Subd. 5. [MANNER OF SALE AND ISSUANCE OF 47.6 CERTIFICATES.] Certificates issued under subdivisions 1, 2, and 47.7 3 may be issued and sold by negotiation, without public sale, 47.8 and may be sold at a price equal to the percentage of their par 47.9 value, plus accrued interest, and bearing interest at the rate 47.10 or rates as may be determined by the board. No election is 47.11 required to authorize the issuance of certificates. 47.12 Certificates must bear the same rate of interest after maturity 47.13 as before and the full faith and credit and taxing power of the 47.14 board must be pledged to the payment of the certificates. 47.15 Sec. 13. [TAX LEVIES.] 47.16 The board may levy taxes to pay the bonds or other 47.17 obligations assumed by the district under section 5 and for debt 47.18 service of the district disposal system authorized in section 12 47.19 upon all taxable property within the district without limit of 47.20 rate or amount and without affecting the amount or rate of taxes 47.21 that may be levied by the board for other purposes or by any 47.22 local government unit in the district. No other provision of 47.23 law relating to debt limit shall restrict or in any way limit 47.24 the power of the board to issue the bonds and certificates 47.25 authorized in section 12. The board may also levy taxes as 47.26 provided in sections 9 and 11. The county auditor must annually 47.27 assess and extend upon the tax rolls the part of the taxes 47.28 levied by the board in each year that is certified to the 47.29 auditor by the board. The county treasurer must collect and 47.30 make settlement of the taxes with the treasurer of the board. 47.31 Sec. 14. [DEPOSITORIES.] 47.32 The board must from time to time designate one or more 47.33 national or state banks or trust companies authorized to do a 47.34 banking business as official depositories for money of the 47.35 board, and must require the treasurer to deposit all or a part 47.36 of the money in those institutions. The designation must be in 48.1 writing and must set forth all the terms and conditions on which 48.2 the deposits are made, and must be signed by the chair and 48.3 treasurer, and made a part of the minutes of the board. A 48.4 designated bank or trust company must qualify as a depository by 48.5 furnishing a corporate surety bond or collateral in the amount 48.6 required by Minnesota Statutes, section 118A.03. But, no bond 48.7 or collateral is required to secure any deposit insofar as it is 48.8 insured under federal law. 48.9 Sec. 15. [MONEY; ACCOUNTS AND INVESTMENTS.] 48.10 Subdivision 1. [RECEIPT AND APPLICATION.] All money 48.11 received by the board must be deposited or invested by the 48.12 treasurer and disposed of as the board directs in accordance 48.13 with its budget. But any money that has been pledged or 48.14 dedicated by the board to the payment of obligations or interest 48.15 on them or expenses incident to them, or for any other specific 48.16 purpose authorized by law, must be paid by the treasurer into 48.17 the fund to which they have been pledged. 48.18 Subd. 2. [FUNDS AND ACCOUNTS.] The board's treasurer must 48.19 establish funds and accounts as necessary or convenient to 48.20 handle the receipts and disbursements of the board in an orderly 48.21 fashion. 48.22 Subd. 3. [DEPOSIT AND INVESTMENT.] The money on hand in 48.23 the board's funds and accounts may be deposited in the official 48.24 depositories of the board or invested as provided in this 48.25 subdivision. The amount not currently needed or required by law 48.26 to be kept in cash on deposit may be invested in obligations 48.27 authorized by law for the investment of municipal sinking 48.28 funds. The money may also be held under certificates of deposit 48.29 issued by any official depository of the board. All investments 48.30 by the board must conform to an investment policy adopted by the 48.31 board as amended from time to time. 48.32 Subd. 4. [BOND PROCEEDS.] The use of proceeds of all bonds 48.33 issued by the board for the acquisition and betterment of the 48.34 district disposal system, and the use, other than investment, of 48.35 all money on hand in any sinking fund or funds of the board must 48.36 be governed by Minnesota Statutes, chapter 475, this article, 49.1 and the resolutions authorizing the issuance of the bonds. The 49.2 bond proceeds, when received, must be transferred to the 49.3 treasurer of the board for safekeeping, investment, and payment 49.4 of the costs for which they were issued. 49.5 Subd. 5. [AUDIT.] The board must provide for and pay the 49.6 cost of an independent annual audit of its official books and 49.7 records by the state auditor or a certified public accountant. 49.8 Sec. 16. [GENERAL POWERS OF BOARD.] 49.9 Subdivision 1. [ALL NECESSARY OR CONVENIENT POWERS.] The 49.10 board has powers necessary or convenient to discharge the duties 49.11 imposed upon it by law. The powers include those specified in 49.12 this article, but the express grant or enumeration of powers 49.13 does not limit the generality or scope of the grant of power in 49.14 this subdivision. 49.15 Subd. 2. [LAWSUITS.] The board may sue or be sued. 49.16 Subd. 3. [CONTRACTS.] The board may enter into any 49.17 contract necessary or proper for the exercise of its powers or 49.18 the accomplishment of its purposes. 49.19 Subd. 4. [RULES.] The board may adopt rules relating to 49.20 the board's responsibilities and may provide penalties not 49.21 exceeding the maximum penalty specified for a misdemeanor, and 49.22 the cost of prosecution may be added to the penalties imposed. 49.23 Any rule prescribing a penalty for violation must be published 49.24 at least once in a newspaper having general circulation in the 49.25 district. A violation may be prosecuted before any court in the 49.26 district having jurisdiction of misdemeanor, and every court has 49.27 jurisdiction of violations. A peace officer of any municipality 49.28 in the district may make arrests for violations committed 49.29 anywhere in the district in the manner and with the effect as 49.30 for violations of municipal ordinances or for statutory 49.31 misdemeanors. All fines collected must be deposited in the 49.32 treasury of the board, or may be allocated between the board and 49.33 the municipality in which the prosecution occurs on terms agreed 49.34 to by the board and the municipality. 49.35 Subd. 5. [GIFTS; GRANTS.] The board may accept gifts, may 49.36 apply for and accept grants or loans of money or other property 50.1 from the United States, the state, or any person for any of its 50.2 purposes, may enter into any agreement required to get the gift, 50.3 grant, loan, or other property; and may hold, use, and dispose 50.4 of money or property in accordance with the terms of the gift, 50.5 grant, loan or agreement. With respect to any loans or grants 50.6 of funds or real or personal property or other assistance from 50.7 any state or federal government or any agency or instrumentality 50.8 of the government, the board may contract to do and perform all 50.9 acts and things required as a condition or consideration under 50.10 state or federal law or rule or regulation, whether or not 50.11 included among the powers expressly granted to the board in this 50.12 article. 50.13 Subd. 6. [JOINT POWERS.] The board may act under Minnesota 50.14 Statutes, section 471.59, or any other appropriate law providing 50.15 for joint or cooperative action between government units. 50.16 Subd. 7. [RESEARCH; HEARINGS; INVESTIGATIONS; ADVISE.] The 50.17 board may conduct research studies and programs, collect and 50.18 analyze data, prepare reports, maps, charts, and tables, and 50.19 conduct all necessary hearings and investigations in connection 50.20 with the design, construction, and operation of the district 50.21 disposal system, and may advise and assist other government 50.22 units on system planning matters within the scope of its powers, 50.23 duties, and objectives, and may provide at the request of any 50.24 governmental unit other technical and administrative assistance 50.25 as the board considers appropriate for the government unit to 50.26 carry out the powers and duties vested in the government unit 50.27 under this article or imposed on or by the board. 50.28 Subd. 8. [EMPLOYEES; CONTRACTORS; INSURANCE.] The board 50.29 may employ on the terms it considers advisable, persons or firms 50.30 performing engineering, legal, or other services of a 50.31 professional nature; require any employee to get and file with 50.32 it an individual bond or fidelity insurance policy; and procure 50.33 insurance in the amounts it considers necessary against 50.34 liability of the board or its officers or both, for personal 50.35 injury or death and property damage or destruction, with the 50.36 force and effect stated in Minnesota Statutes, chapter 466, and 51.1 against risks of damage to or destruction of any of its 51.2 facilities, equipment, or other property as it considers 51.3 necessary. 51.4 Subd. 9. [PROPERTY.] The board may acquire by purchase, 51.5 lease, condemnation, gift, or grant, real or personal property 51.6 including positive and negative easements and water and air 51.7 rights, and it may construct, enlarge, improve, replace, repair, 51.8 maintain, and operate any interceptor, treatment works, or water 51.9 facility determined to be necessary or convenient for the 51.10 collection and disposal of sewage in the district. Any local 51.11 government unit and the commissioners of transportation and 51.12 natural resources may convey to or permit the use of these 51.13 facilities owned or controlled by the board, subject to the 51.14 rights of the holders of any bonds issued with respect to them 51.15 with or without compensation and without an election or approval 51.16 by any other government unit or agency. All powers conferred by 51.17 this subdivision may be exercised both within or outside the 51.18 district as may be necessary for the exercise by the board of 51.19 its powers or the accomplishment of its purposes. The board may 51.20 hold, lease, convey, or otherwise dispose of such property for 51.21 its purposes, upon the terms and in the manner it deems 51.22 advisable. Unless otherwise provided, the right to acquire 51.23 lands and property rights by condemnation must be exercised in 51.24 accordance with Minnesota Statutes, chapter 117, and must apply 51.25 to any property or interest in property owned by any local 51.26 government unit. But property devoted to an actual public use 51.27 at the time, or held to be devoted to such use within a 51.28 reasonable time, must not be so acquired unless a court of 51.29 competent jurisdiction determines that the use proposed by the 51.30 board is paramount. In case of property in actual public use, 51.31 the board may take possession of any property of which 51.32 condemnation proceedings have begun at any time after the 51.33 issuance of a court order appointing commissioners for its 51.34 condemnation. 51.35 Subd. 10. [RIGHTS-OF-WAY.] The board may construct or 51.36 maintain its systems or facilities in, along, on, under, over, 52.1 or through public waters, streets, bridges, viaducts, and other 52.2 public right-of-way without first getting a franchise from any 52.3 county or local government unit having jurisdiction over them. 52.4 But the facilities must be constructed and maintained in 52.5 accordance with the ordinances and resolutions of the county or 52.6 government unit relating to construction, installation, and 52.7 maintenance of similar facilities on public properties and must 52.8 not unnecessarily obstruct the public use of the rights-of-way. 52.9 Subd. 11. [DISPOSAL OF PROPERTY.] The board may sell, 52.10 lease, or otherwise dispose of any real or personal property 52.11 acquired by it that is no longer required to accomplish its 52.12 purposes. The property may be sold in the manner provided by 52.13 Minnesota Statutes, section 469.065, insofar as practical. The 52.14 board may give notice of sale it considers appropriate. When 52.15 the board determines that any property or any part of the 52.16 district disposal system that has been acquired from a local 52.17 government unit without compensation is no longer required, but 52.18 is required as a local facility by the government unit from 52.19 which is was acquired, the board may by resolution transfer it 52.20 to the government unit. 52.21 Subd. 12. [JOINT OPERATIONS.] The board may contract with 52.22 the United States or an agency of it, any state or agency of it, 52.23 or any regional public planning body in the state with 52.24 jurisdiction over any part of the district, or any other 52.25 municipal or public corporation, or governmental subdivision in 52.26 any state, for the joint use of any facility owned by the board 52.27 or the entity, for the operation by the entity of any system or 52.28 facility of the board, or for the performance on the board's 52.29 behalf of any service including, but not limited to, planning, 52.30 on the terms that may be agreed to by the contracting parties. 52.31 Unless designated by the board as a local sanitary sewer 52.32 facility, any treatment works or interceptor jointly used, or 52.33 operated on behalf of the board, as provided in this 52.34 subdivision, must be considered to be operated by the board to 52.35 include the facilities in the district disposal system. 52.36 Sec. 17. [LOCAL FACILITIES.] 53.1 Subdivision 1. [SANITARY SEWER FACILITIES.] Except as 53.2 otherwise provided in this article, local government units must 53.3 retain responsibility for the planning, design, acquisition, 53.4 betterment, operation, administration, and maintenance of all 53.5 local sanitary sewer facilities as provided by law. 53.6 Subd. 2. [ASSUMPTION OF RESPONSIBILITY OVER LOCAL SANITARY 53.7 SEWER FACILITIES.] The board must upon request of any government 53.8 unit assume, either alone or jointly with the local government 53.9 unit, all or any part of the responsibility of the local 53.10 government unit described in subdivision 1. Except as provided 53.11 in subdivision 4 and to exercise the responsibility, the board 53.12 has all the powers and duties elsewhere conferred in this 53.13 article with the same force and effect as if the local sanitary 53.14 sewer facilities were a part of the district disposal system. 53.15 Subd. 3. [WATER AND STREET FACILITIES.] The board may, on 53.16 request of any governmental unit, enter into an agreement under 53.17 which the board may assume, either alone or jointly with such 53.18 unit, the responsibility to get and construct water and street 53.19 facilities in conjunction with any project for the acquisition 53.20 or betterment of the district disposal system or any project 53.21 undertaken by the board under subdivision 2. Except as provided 53.22 in subdivision 4, and to exercise any responsibilities under 53.23 this subdivision, the board has all the powers and duties 53.24 elsewhere conferred in this article with the same force and 53.25 effect as if the water or street facilities were a part of the 53.26 district disposal system. 53.27 Subd. 4. [ALLOCATION OF CURRENT COSTS.] All current costs 53.28 attributable to responsibilities assumed by the board over local 53.29 sanitary sewer facilities and water and street facilities as 53.30 provided in this section must be allocated solely to the local 53.31 unit for or with whom the responsibilities are assumed on the 53.32 terms and over a period as the board determines to be equitable 53.33 and in the best interest of the district. But if two or more 53.34 government units form a region in accordance with this section 53.35 all or part of the current costs attributable to the region 53.36 must, at the request of its joint board, be allocated to the 54.1 region and provided in the agreement establishing the region. 54.2 Subd. 5. [PART OF DISTRICT SYSTEM.] This section or any 54.3 other part of this article does not prevent the board from 54.4 including, where appropriate, treatment works or interceptors, 54.5 previously designated or treated as local sanitary sewer 54.6 facilities, as a part of the district disposal system. 54.7 Sec. 18. [SERVICE CONTRACTS WITH GOVERNMENTS OUTSIDE 54.8 DISTRICT.] 54.9 The board may contract with the United States or any agency 54.10 of it, any state or any agency of it, or any municipal or public 54.11 corporation, governmental subdivision or agency, or political 54.12 subdivision in any state, outside the jurisdiction of the board, 54.13 for furnishing to the entities any services which the board may 54.14 furnish to local government units in the district under this 54.15 article including, but not limited to, planning for and the 54.16 acquisition, betterment, operation, administration, and 54.17 maintenance of any or all interceptors, treatment works, and 54.18 local sanitary sewer facilities; if the board may further 54.19 include as one of the terms of the contract that the entity also 54.20 pay to the board an amount as may be agreed upon as a reasonable 54.21 estimate of the proportionate share properly allocable to the 54.22 entity of costs of acquisition, betterment, and debt service 54.23 previously allocated to local government units in the district. 54.24 When the payments are made by the entities to the board, they 54.25 must be applied in reduction of the total amount of costs 54.26 allocated after that to each local government unit in the 54.27 district, on the equitable basis the board considers to be in 54.28 the best interest of the district. Any municipality in the 54.29 state may enter into the contract and perform all acts and 54.30 things required as a condition or consideration for it 54.31 consistent with the purpose of this article, whether or not 54.32 included among the powers otherwise granted to the municipality 54.33 by law or charter, the powers to include those powers set out in 54.34 section 9, subdivisions 3, 4, and 5. 54.35 Sec. 19. [CONSTRUCTION, MATERIALS, SUPPLIES, EQUIPMENT; 54.36 CONTRACTS.] 55.1 Subdivision 1. [PLANS AND SPECIFICATIONS.] When the board 55.2 orders a project involving the acquisition or betterment of a 55.3 part of the district disposal system, it must cause plans and 55.4 specifications of this project to be made, or if previously 55.5 made, to be modified, if necessary, and to be approved by the 55.6 agency if required, and after any required approval by the 55.7 agency, one or more contracts for work and materials called for 55.8 by the plans and specification may be awarded as provided in 55.9 this section. 55.10 Subd. 2. [UNIFORM MUNICIPAL CONTRACTING LAW.] All 55.11 contracts for work to be done or for purchases of materials, 55.12 supplies, or equipment must be done in accordance with Minnesota 55.13 Statutes, section 471.345. 55.14 Sec. 20. [ANNEXATION, WITHDRAWAL OF TERRITORY.] 55.15 Subdivision 1. [ANNEXATION.] Any municipality in Douglas 55.16 county, upon resolution adopted by a four-fifths vote of its 55.17 governing body, may petition the board for annexation to the 55.18 district of the area then comprising the municipality or any 55.19 part of it and, if accepted by the board, the area must be 55.20 considered annexed to the district and subject to the 55.21 jurisdiction of the board under the terms and provisions of this 55.22 article. The territory so annexed is subject to taxation and 55.23 assessment under this article and is subject to taxation by the 55.24 board like other property in the district for the payment of 55.25 principal and interest thereafter becoming due on general 55.26 obligations of the board, whether authorized or issued before or 55.27 after the annexation. The board may condition approval of the 55.28 annexation upon the contribution, by or on behalf of the 55.29 municipality petitioning for annexation, to the board of an 55.30 amount as may be agreed upon as being a reasonable estimate of 55.31 the proportionate share, properly allocable to the municipality, 55.32 of cost or acquisition, betterment, and debt service previously 55.33 allocated to local government units in the district, on the 55.34 terms as may be agreed upon and in place of or in addition to 55.35 further conditions as the board deems in the best interests of 55.36 the district. Notwithstanding any other provisions of this 56.1 article to the contrary, the conditions established for 56.2 annexation may include the requirement that the annexed 56.3 municipality pay for, contract for, and oversee the construction 56.4 of local sanitary sewer facilities and interceptor sewers as 56.5 those terms are defined in section 1. To pay the contribution 56.6 or satisfy any other condition established by the board, the 56.7 municipality petitioning annexation may exercise the powers 56.8 conferred in section 9. When the contributions are made by the 56.9 municipality to the board, they must be applied to reduce the 56.10 total amount of costs thereafter allocated to each local 56.11 government unit in the district, on the equitable basis as the 56.12 board considers to be in the best interests of the district, 56.13 applying so far as practicable and appropriate the criteria set 56.14 forth in section 8, subdivision 2. On annexation of the 56.15 territory, the secretary of the board must certify to the 56.16 auditor and treasurer of the county in which the municipality is 56.17 located the fact of the annexation and a legal description of 56.18 the territory annexed. 56.19 Subd. 2. [WITHDRAWALS.] A municipality may withdraw from 56.20 the district by resolution of its governing body. The 56.21 municipality must notify the board of the district of the 56.22 withdrawal by providing a copy of the resolution at least two 56.23 years in advance of the proposed withdrawal. Unless the 56.24 district and the withdrawing member agree otherwise by action of 56.25 their governing bodies, the taxable property of the withdrawing 56.26 member is subject to its required property tax levies under this 56.27 article for two taxes payable years following the notification 56.28 of the withdrawal and the withdrawing member retains any rights, 56.29 obligations, and liabilities obtained or incurred during its 56.30 participation. 56.31 Sec. 21. [PROPERTY EXEMPT FROM TAXATION.] 56.32 Any properties, real or personal, owned, leased, 56.33 controlled, used, or occupied by the sanitary sewer board for 56.34 any purpose under this article are declared to be acquired, 56.35 owned, leased, controlled, used, and occupied for public, 56.36 governmental, and municipal purposes, and are exempt from 57.1 taxation by the state or any political subdivision of the state; 57.2 but the properties are subject to special assessments levied by 57.3 a political subdivision for a local improvement in amounts 57.4 proportionate to and not exceeding the special benefit received 57.5 by the properties from the improvement. No possible use of any 57.6 of the properties in any manner different from their use as part 57.7 of the disposal system at the time may be considered in 57.8 determining the special benefit received by the properties. All 57.9 of the assessments are subject to final approval by the board, 57.10 whose determination of the benefits is conclusive upon the 57.11 political subdivision levying the assessment. 57.12 Sec. 22. [RELATION TO EXISTING LAWS.] 57.13 This article prevails over any law or charter inconsistent 57.14 with it. The powers conferred on the board under this article 57.15 do not diminish or supersede the powers conferred on the agency 57.16 by Minnesota Statutes, chapters 115 and 116. 57.17 Sec. 23. [APPLICATION; EFFECTIVE DATE; LOCAL APPROVAL; OPT 57.18 IN OR OUT.] 57.19 Subdivision 1. [APPLICATION.] This article applies to the 57.20 townships of Brandon, Carlos, LaGrand, Leaf Valley, Miltona, and 57.21 Moe, all in Douglas county. 57.22 Subd. 2. [EFFECTIVE DATE; LOCAL APPROVAL.] This article is 57.23 effective the day after a fourth township of the six listed in 57.24 subdivision 1 has timely completed compliance with Minnesota 57.25 Statutes, section 645.021, subdivisions 2 and 3. For any other 57.26 township listed in subdivision 1, this article is effective the 57.27 day after timely completing compliance with Minnesota Statutes, 57.28 section 645.021, subdivisions 2 and 3. A township listed in 57.29 subdivision 1 that fails to timely complete compliance with 57.30 Minnesota Statutes, section 645.021, subdivisions 2 and 3, may 57.31 petition for annexation to the district at a later time, as 57.32 provided in this article.