HF 4052

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to transportation; 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) "Governing body" means the city council of a municipality.
new text end

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

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

new text begin (e) "Reconstruction" means paving, grading, 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 municipality may impose the transportation utility
fee provided in this section against land located within its boundaries. The fee must be
set at a level that neither significantly overrecovers nor underrecovers costs, including
overhead costs, involved in reconstructions, facility upgrades, and maintenance described
in the master plan.
new text end

new text begin Subd. 3. new text end

new text begin Procedures for adoption. new text end

new text begin A municipality 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 municipality
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 area 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 municipality, or in a newspaper of general content
and circulation within the municipality, and the last notice must be published at least seven
days prior to the hearing. The municipality must file the adopted ordinance of record with
the county recorder, and the municipality 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 municipality may 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 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 may
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 municipality may not accumulate revenues from the fee
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 municipality proposes to generate and the relative benefit,
as determined by the municipality, that will accrue to each category of land use from the
projects to be financed. The amount of revenue the municipality proposes to generate must
be that amount reasonable and necessary to complete the proposed improvement. 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 municipality 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 municipality does not restrict the municipality 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 2006 and thereafter. new text end