SF 818

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