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HF 3746

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/04/2008

Current Version - as introduced

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A bill for an act
relating to local government; authorizing cities to impose a transportation utility
fee; proposing coding for new law in Minnesota Statutes, chapter 275.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [275.084] TRANSPORTATION UTILITY FEE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, the following terms
have the meanings given.
new text end

new text begin (a) "Facility upgrade" means traffic signals, turn lanes, medians, street approaches,
alleys, rights-of-way, sidewalks, retaining walls, fence installation, and additional traffic
lanes.
new text end

new text begin (b) "City" means a home rule charter or statutory city.
new text end

new text begin (c) "Governing body" means the city council.
new text end

new text begin (d) "Maintenance" means striping, seal coating, crack sealing, sidewalk maintenance,
signal maintenance, street light maintenance, and signage.
new text end

new text begin (e) "Reconstruction" means paving, grading, adding or maintaining curbs and
gutters, bridge repair, overlays, drainage, base work, subgrade corrections, and boulevard
restoration.
new text end

new text begin Subd. 2. new text end

new text begin Authorization. new text end

new text begin A city may impose the transportation utility fee provided
in this section on real property located within its boundaries. The fee must be set at a level
that does not over fund costs, including overhead costs, involved in reconstructions, facility
upgrades, and maintenance described in the master plan of the city under subdivision 5.
new text end

new text begin Subd. 3. new text end

new text begin Procedures for adoption. new text end

new text begin A city may impose the transportation utility fee
provided in this section by ordinance adopted by a two-thirds vote of its governing body.
The resolution must not be voted on or adopted and the city may not contract for any
improvement until after a public hearing has been held on the question. A notice of the
time, place, and purpose of the hearing, including the general nature of the improvement,
its estimated costs, and the property against which the fee is proposed to be assessed, must
be published at least once in each week for two successive weeks in the official newspaper
of the city, or in a newspaper of general content and circulation within the city, and the
last notice must be published at least seven days prior to the hearing. The city must file
the adopted ordinance of record with the county recorder, and the city must provide a
copy to the county auditor.
new text end

new text begin Subd. 4. new text end

new text begin Collection. new text end

new text begin The ordinance adopted under this section must provide for the
billing and payment of the fee on a monthly, quarterly, or other basis as directed by the
governing body. Fees that, as of October 15 each calendar year, have remained unpaid
for at least 30 days must be certified to the county auditor for collection as a special
assessment payable in the following calendar year against the affected property.
new text end

new text begin Subd. 5. new text end

new text begin Master plan requirement. new text end

new text begin A city must not impose the fee provided in
this section unless it has prepared and adopted a master plan that includes information
on the proposed reconstruction, facility upgrade, and maintenance for a minimum of the
following five years. A capital improvement plan, public facility plan, or comparable
information qualifies as a master plan. The master plan must include information on
the proposed funding sources for all projects required to be included in the plan. The
master plan must be adopted by resolution of the governing body following a hearing and
publication of notice of the hearing, as provided in subdivision 3.
new text end

new text begin Subd. 6. new text end

new text begin Use of proceeds. new text end

new text begin Revenues from the fee authorized in this section must
only be used for specific projects listed in the master plan and are limited to projected costs
of the needs approved in the master plan and described in the published notice before the
required public hearing. The city must not accumulate revenues from the fee significantly
beyond the estimated costs for reconstructions, facility upgrades, and maintenance that
are described in the master plan.
new text end

new text begin Subd. 7. new text end

new text begin Calculation of fee. new text end

new text begin The fee imposed must be calculated based on the
relationship of the revenues the city proposes to generate and the relative benefit, as
determined by the city, that will accrue to each category of land use from the projects to
be financed. The amount of revenue the city proposes to generate must be that amount
reasonable and necessary to complete the proposed improvement minus any revenue
collected through property taxes or special assessments. The fee may be imposed only
against property that will benefit by the improvement, whether or not the property abuts
the improvement.
new text end

new text begin Subd. 8. new text end

new text begin Appeals. new text end

new text begin A property owner may administratively appeal the amount of the
fee to the governing body within 60 days after notice of the amount of fee due has been
mailed to the property owner. The appeal must be in writing, signed, and dated by the
property owner, and must state the reasons why the amount of the fee is incorrect. The
appeal may state reasons why the fee imposed by the city generates funds in excess of the
amount reasonable and necessary for the improvement described in the published notice,
or why the property against which the fee is imposed does not benefit from the proposed
improvement. The decision of the governing body may be appealed to the Tax Court in
the same manner as appeals of determinations regarding property tax matters provided for
in chapter 271. If the governing body does not make a decision within six months after the
filing of an administrative appeal, the property owner may elect to appeal to the Tax Court.
The appeal procedures in this subdivision are in lieu of any appeal procedures relating to
special assessments provided for in chapter 429.
new text end

new text begin Subd. 9. new text end

new text begin Special assessments; bonds; property tax levies. new text end

new text begin The use of the
transportation utility fee by a city does not restrict the city from imposing special
assessments, issuing bond debt, or levying property taxes to pay the costs of local street
reconstruction, facility upgrades, or maintenance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
fees payable in 2008 and thereafter.
new text end