Minnesota Session Laws - 1983, Regular Session

  

                         Laws of Minnesota 1983 

                        CHAPTER 183--H.F.No. 318
           An act relating to local government; regulating kinds 
          of and charges for water and sewer facilities and 
          services; amending Minnesota Statutes 1982, section 
          444.075, subdivisions 1 and 3. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 444.075, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AUTHORIZATION.] Any home rule charter 
city, except cities of the first class operating under a home 
rule charter, or any statutory city is hereby authorized and 
empowered to may build, construct, reconstruct, repair, enlarge, 
improve, or in any other manner obtain 
    (i) waterworks systems, including mains, valves, hydrants, 
service connections, wells, pumps, reservoirs, tanks, treatment 
plants, and other appurtenances of a waterworks system, and 
    (ii) sewer systems, sewage treatment works, disposal 
systems, and other facilities for disposing of sewage, 
industrial waste, or other wastes, and 
    (iii) storm sewer systems, including mains, holding areas 
and ponds, and other appurtenances and related facilities for 
the collection and disposal of storm water, 
    all hereinafter called facilities, and to maintain and 
operate the same inside or outside its corporate limits, and to 
acquire by gift, purchase, lease, condemnation or otherwise any 
and all land and easements required for that purpose.  The 
authority hereby granted shall be in addition to all other 
powers with reference to such the facilities otherwise granted 
by the laws of this state or by the charter of any such city.  
The authority granted in clause (iii) to cities which have 
territory within a watershed which has adopted a watershed plan 
pursuant to section 473.878 shall be exercised, with respect to 
facilities acquired following the adoption of the watershed 
plan, only for facilities which are not inconsistent with the 
watershed plan.  The authority granted in clause (iii) to cities 
which have adopted local water management plans pursuant to 
section 473.879 shall be exercised, with respect to facilities 
acquired following the adoption of a local plan, only for 
facilities which are not inconsistent with the local plan.  
Counties, except counties in the seven county metropolitan area, 
shall have the same authority granted to cities by this 
subdivision except for areas of the county organized into cities 
and areas of the county incorporated within a sanitary district 
established by special act of the legislature.  
     Sec. 2.  Minnesota Statutes 1982, section 444.075, 
subdivision 3, is amended to read: 
    Subd. 3.  [CHARGES; NET REVENUES.] For the purpose of 
paying for the construction, reconstruction, repair, 
enlargement, improvement, or other obtainment and the 
maintenance, operation and use of such facilities, the governing 
body of any such city or county shall have authority to impose 
just and equitable charges for the use and for the availability 
of such facilities and for connections therewith and to make 
contracts for such charges as hereinafter provided.  Such 
charges may be imposed with respect to facilities made available 
by agreement with other municipalities, counties or private 
corporations or individuals, as well as those owned and operated 
by the city or county itself.  Charges made for service directly 
rendered shall be as nearly as possible proportionate to the 
cost of furnishing the same, and sewer charges may be fixed on 
the basis of water consumed, or by reference to a reasonable 
classification of the types of premises to which service is 
furnished, or by reference to the quantity, pollution qualities 
and difficulty of disposal of sewage and storm water produced, 
or on any other equitable basis including, but without 
limitation, any combination of those referred to above.  Minimum 
charges for the availability of water or sewer service may be 
imposed for all premises abutting on streets or other places 
where municipal or county water mains or sewers are located, 
whether or not connected thereto.  Charges for connections to 
the facilities may in the discretion of the governing body be 
fixed by reference to the portion of the cost thereof which has 
been paid by assessment of the premises to be connected, in 
comparison with other premises, as well as the cost of making or 
supervising the connection.  The governing body may make any 
such charges a charge against the owner, lessee, occupant or all 
of them and may provide and covenant for certifying unpaid 
charges to the county auditor with taxes against the property 
served for collection as other taxes are collected.  The 
governing body may fix and levy taxes for the payment of 
reasonable charges to the municipality or county itself for the 
use and availability of the facilities for fire protection and, 
for maintaining sanitary conditions, and for proper storm water 
drainage in and for public buildings, parks, streets, and other 
public places.  In determining the reasonableness of the charges 
to be imposed, the governing body may give consideration to all 
costs of the establishment, operation, maintenance, depreciation 
and necessary replacements of the system, and of improvements, 
enlargements and extensions necessary to serve adequately the 
territory of the city or county including the principal and 
interest to become due on obligations issued or to be issued 
therefor.  When net revenues have been appropriated to the 
payment of the cost of the establishment, or of any specified 
replacement, improvement, enlargement or extension thereof, or 
to pay the principal and interest due on obligations to be 
issued for such purpose, no charges imposed to produce net 
revenues adequate for such purpose shall be deemed unreasonable 
by virtue of the fact that the project to be financed has not 
been commenced or completed, if proceedings therefor are taken 
with reasonable dispatch and the project, when completed, may be 
expected to make service available to the premises charged which 
will have a value reasonably commensurate with such charges.  
All such charges, when collected, and all moneys received from 
the sale of any facilities or equipment or any by-products 
thereof, shall be placed in a separate fund, and shall be used 
first to pay the normal, reasonable and current costs of 
operating and maintaining the facilities.  The net revenues from 
time to time received in excess of such costs may be pledged by 
resolutions of the governing body, or may be used though not so 
pledged, for the payment of principal and interest on 
obligations issued as provided in subdivision 2, or to pay such 
portion of said principal and interest as may be directed in 
such resolutions, and net revenues derived from any facilities 
of the types listed in subdivision 1, whether or not financed by 
the issuance of such obligations, may be pledged or used to pay 
obligations issued for other facilities of any such types.  In 
resolutions authorizing the issuance of either general or 
special obligations and pledging net revenues thereto, the 
governing body may make such covenants for the protection of 
holders of the obligations and taxpayers of the municipality or 
county as it deems necessary, including, but without limitation, 
a covenant that the municipality or county will impose and 
collect charges of the nature herein authorized at the times and 
in the amounts required to produce, together with any taxes or 
special assessments designated as a primary source of payment of 
the obligations, net revenues adequate to pay all principal and 
interest when due on the obligations and to create and maintain 
such reserves securing said payments as may be provided in said 
resolutions.  When such a covenant is made it shall be 
enforceable by appropriate action on the part of any holder of 
the obligations or any taxpayer of the municipality or county in 
a court of competent jurisdiction, and the obligations shall be 
deemed to be payable wholly from the income of the system whose 
revenues are so pledged, within the meaning of sections 475.51 
and 475.58.  
     Sec. 3.  [EFFECTIVE DATE.] 
     This act is effective the day after its final enactment. 
    Approved May 19, 1983