Minnesota Session Laws - 1983, Regular Session

  

                         Laws of Minnesota 1983 

                        CHAPTER 361--S.F.No. 823
           An act relating to cities; authorizing the issuance of 
          capital notes for certain equipment acquisitions; 
          permitting establishment of special service districts 
          and providing taxing and other authority for the city 
          of Bloomington; proposing new law coded in Minnesota 
          Statutes, chapter 410. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [410.32] [CITIES AUTHORIZED TO ISSUE CAPITAL 
NOTES FOR CERTAIN EQUIPMENT ACQUISITIONS.] 
    Notwithstanding any contrary provision of other law or 
charter, a home rule charter city may, by resolution and without 
public referendum, issue capital notes subject to the city debt 
limit to purchase public safety equipment, ambulance and other 
medical equipment, road construction and maintenance equipment, 
and other capital equipment having an expected useful life at 
least as long as the term of the notes.  The notes shall be 
payable in not more than five years and be issued on terms and 
in the manner the city determines.  The total principal amount 
of the capital notes issued in a fiscal year shall not exceed 
one-tenth of one percent of the assessed value of the city for 
that year.  A tax levy shall be made for the payment of the 
principal and interest on the notes, in accordance with section 
475.61, as in the case of bonds.  Notes issued under this 
section shall require an affirmative vote of two-thirds of the 
governing body of the city. 
    Sec. 2.  [DEFINITIONS.] 
    Subdivision 1.  For the purpose of sections 2 to 11 the 
terms defined in this section have the following meanings.  
    Subd. 2.  "City" means the city of Bloomington.  
    Subd. 3.  "Special services" means all services rendered or 
contracted for by the city, including, but not limited to, 
    (a) the repair, maintenance, and operation of any 
improvements authorized by Minnesota Statutes, section 429.021;  
    (b) parking services rendered or contracted for by the 
city; and 
    (c) any other service provided to the public by the city 
authorized by any law or charter provision.  
    Special services shall not include services which are 
ordinarily provided throughout the city from general fund 
revenues of the city unless an increased level of the service is 
provided in the special service district.  
    Subd. 4.  "Special service district" means a defined area 
within the city in which special services are rendered and the 
costs of the special services are paid from revenues collected 
from taxes and service charges imposed within that area.  
    Subd. 5.  "Assessed value" means the assessed value as most 
recently certified by the commissioner of revenue on the 
effective date of the ordinance or resolution adopted pursuant 
to section 3 or 4.  
    Subd. 6.  "Land area" means the land area located within 
the district which is subject to property taxation.  
    Sec. 3.  [ESTABLISHMENT OF SPECIAL SERVICE DISTRICT.] 
    Subdivision 1.  [ORDINANCE.] The governing body of the city 
may adopt an ordinance establishing a special service district 
in that part of the city of Bloomington which is east of East 
Bush Lake Road, north of 84th Street and west of Penn Avenue 
South; that part east of Penn Avenue South, north of 82nd Street 
and west of State Highway No. 77; that part east of State 
Highway No. 77 and north of 86th Street; and that part south of 
90th Street, west of Nicollet, north of 100th and east of 
Humboldt.  Only property which is zoned for commercial, 
business, or industrial use under a municipal zoning ordinance 
may be included in a special service district.  The ordinance 
shall describe with particularity the area within the city to be 
included in the district and the special services to be 
furnished within the district.  The ordinance may not be adopted 
until after a public hearing has been held on the question. 
Notice of the hearing shall include:  
    (a) The time and place of hearing;  
    (b) A map showing the boundaries of the proposed special 
service district; and 
    (c) A statement that all persons owning property in the 
proposed special service district will be given opportunity to 
be heard at the hearing.  
    Subd. 2.  [NOTICE.] Notice of the hearing shall be given by 
publication in two issues of the official newspaper of the 
city.  The two publications shall be a week apart and the 
hearing shall be held at least three days after the last 
publication.  Not less than ten days before the hearing, notice 
shall also be mailed to the owner of each parcel within the area 
proposed to be included in the special service district.  For 
the purpose of giving mailed notice, owners shall be those shown 
on the records of the county auditor.  Other records may be used 
to supply the necessary information.  For properties which are 
tax exempt or subject to taxation on a gross earnings basis in 
lieu of property tax and are not listed on the records of the 
county auditor, the owners shall be ascertained by any 
practicable means and mailed notice given them.  At the public 
hearing any person affected by the proposed special services 
district may be heard orally in respect to any issues embodied 
in the notice.  The hearing may be adjourned from time to time 
and the ordinance establishing the special services district may 
be adopted at any time within six months after the date of the 
conclusion of the hearing by a vote of the majority of the 
governing body of the city.  
    Sec. 4.  [TAXING AUTHORITY; NOTICE AND HEARING 
REQUIREMENTS.] 
    Subdivision 1.  [TAXES; HEARING.] Ad valorem taxes may be 
levied on taxable property or service charges may be imposed by 
the city within the special service district at a rate or amount 
sufficient to produce revenues required to provide special 
services within the district.  For purposes of determining the 
appropriate mill rate, taxable property or value shall be 
determined without regard to captured or original assessed value 
under Minnesota Statutes, section 273.76 or to the distribution 
or contribution value under Minnesota Statutes, section 
473F.08.  Taxes and service charges shall not be imposed to 
finance a special service if the service is ordinarily provided 
by the city from general fund revenues of the city unless the 
service is provided in the special service district at an 
increased level, in which case only an amount to pay for the 
increased level may be imposed.  A service charge shall not be 
imposed on the receipts from the sale of intoxicating liquor, 
food, or lodging.  Prior to the levy of taxes or imposition of 
service charges in a special service district, for each calendar 
year, notice shall be given and hearing shall be held pursuant 
to section 3 except that notice shall also be mailed to any 
individual or business organization subject to a service 
charge.  For purposes of this section the notice shall also 
include: 
     (a) A statement that all interested persons will be given 
an opportunity to be heard at the hearing regarding a proposed 
tax levy or service charge. 
    (b) When the tax or service charge is to pay for the cost 
of repairing, operating, or maintaining public improvement or 
facilities, the estimated cost of operating and maintaining the 
improvements during the first year after completion of the 
improvements, and the proposed method and source of financing 
the improvements and the annual cost of operating and 
maintaining the improvements.  
    (c) The proposed rate or amount of taxes to be extended or 
the proposed service charge to be imposed in the special service 
district during the calendar year and the nature and character 
of special services to be rendered in the special service 
district during the calendar year.  
    (d) A statement that the petition requirements of section 9 
have either been met or do not apply to the proposed taxes or 
service charge.  
    Within six months of the public hearing, the city may adopt 
a resolution levying a tax or imposing a service charge within 
the special service district not exceeding the amount or rate 
expressed in the notice issued pursuant to this section.  
    Subd. 2.  [EXEMPTION OF CERTAIN PROPERTIES FROM TAXES.] 
Property exempted from taxation by Minnesota Statutes, section 
272.02, shall be exempted from any ad valorem taxes imposed 
pursuant to sections 2 to 11.  
    Subd. 3.  [LEVY LIMIT EXEMPTION.] Taxes and service charges 
imposed pursuant to sections 2 to 11 shall not be included in 
the calculation of levies or limits on levies provided by other 
law or home rule charter provision.  
    Subd. 4.  [EXCLUSION FROM HOMESTEAD CREDIT.] Taxes levied 
under this section shall not be reduced pursuant to Minnesota 
Statutes, section 273.13, subdivisions 6, 7, 7d, or 14a.  State 
reimbursement pursuant to Minnesota Statutes, section 273.139 
shall not apply to any taxes levied pursuant to sections 2 to 11.
    Sec. 5.  [ENLARGEMENT OF SPECIAL SERVICE DISTRICTS.] 
    Boundaries of a special service area may be enlarged only 
after hearing and notice as provided in sections 3 and 4. 
Notice shall be served in the original special service district 
and in the area proposed to be added to the special service 
district. Property added to the district shall be subject to all 
taxes levied and service charges imposed within the district 
after the property becomes a part of the district.  The petition 
requirement in section 9 and the veto power in section 10 shall 
only apply to owners and individuals and business organizations 
in the area proposed to be added to the special service district.
    Sec. 6.  [COLLECTION OF TAXES.] 
    Ad valorem taxes levied within a special service district 
shall be collected and paid over as other ad valorem taxes, but 
shall be spread only upon the assessed value of property 
described in the ordinance.  Service charges imposed shall be 
collected as provided by ordinance.  Taxes collected pursuant to 
sections 2 to 11 shall not be included in computations under 
Minnesota Statutes, section 273.76, chapter 473F, or any other 
law that applies to general ad valorem levies.  
    Sec. 7.  [CERTIFICATES OF INDEBTEDNESS.] 
    The city council may issue certificates of indebtedness 
within existing debt limits for purposes of any work or service 
authorized pursuant to sections 2 to 11.  The certificates shall 
be payable in not more than five years and shall be issued on 
such terms and in such manner as determined by the council.  A 
tax levy shall be made on the taxable property within the 
special service district for the payment of the principal and 
interest on the certificates as in the case of bonds.  
    Sec. 8.  [ADVISORY BOARD.] 
     The governing body of the city may create and appoint an 
advisory board for each special service district in the city to 
advise the governing body in connection with the construction, 
maintenance, and operation of improvements and the furnishing of 
special services in a special service district.  The advisory 
board shall make recommendations to the governing body on the 
requests and complaints of owners, occupants, and users of 
property within the special service district and members of the 
public.  Prior to the adoption of any proposal by the governing 
body to provide services or impose taxes or service charges 
within the special service district, the advisory board of the 
special service district shall have an opportunity to review and 
comment upon the proposal. 
    Sec. 9.  [PETITION REQUIRED.] 
    No public hearing may be held pursuant to section 3 unless 
owners of 15 percent or more of the land area of the proposed 
special service district and owners of 15 percent or more of the 
assessed value of the proposed special service district file a 
petition requesting the public hearing with the city clerk.  No 
public hearing may be held pursuant to section 4 to impose an ad 
valorem tax unless owners of 15 percent or more of the land area 
subject to a proposed tax and owners of 15 percent or more of 
the assessed value subject to a proposed tax file a petition 
requesting the public hearing with the city clerk.  No public 
hearing may be held pursuant to section 4 to impose a service 
charge unless 15 percent or more of the individual or business 
organizations subject to the proposed service charge file a 
petition requesting the public hearing with the city clerk.  If 
the boundaries of the proposed special service district are 
changed or the land area or assessed value subject to a tax or 
the individuals or business organizations subject to a service 
charge are changed after the public hearing, a petition meeting 
the requirements of this section must be filed with the city 
clerk before the ordinance establishing the district or 
resolution imposing the tax or service charge may become 
effective. 
    Sec. 10.  [VETO POWER OF OWNERS.] 
    Subdivision 1.  [NOTICE OF RIGHT TO FILE OBJECTIONS.] 
Except as provided in section 11, the effective date of any 
ordinance or resolution adopted pursuant to sections 3 and 4 
shall be at least 45 days after it is adopted.  Within five days 
after adoption of the ordinance or resolution, a copy of the 
ordinance or resolution shall be mailed to the owner of each 
parcel included in the special service district and any 
individual or business organization subject to a service charge 
in the same manner that notice is mailed pursuant to section 3. 
The mailing shall include a notice that owners subject to a tax 
and individuals and business organizations subject to a service 
charge have a right to veto the ordinance or resolution by 
filing the required number of objections with the city clerk 
before the effective date of the ordinance or resolution.  
    Subd. 2.  [REQUIREMENT FOR VETO.] If owners of 35 percent 
of the land area in the special service district and owners of 
35 percent of the assessed value in the special service district 
file an objection to the ordinance adopted by the city pursuant 
to section 3 with the city clerk before the effective date of 
the ordinance, the ordinance shall not become effective.  If 
owners of 35 percent of the land area subject to a tax and 
owners of 35 percent of the assessed value subject to a tax file 
an objection to the resolution adopted levying an ad valorem tax 
pursuant to section 4 with the city clerk before the effective 
date of the resolution, the resolution shall not become 
effective.  If 35 percent of individuals and business 
organizations subject to a service charge file an objection to 
the resolution adopted imposing a service charge pursuant to 
section 4 with the city clerk before the effective date of the 
resolution, the resolution shall not become effective.  
    Sec. 11.  [EXCLUSION FROM PETITION REQUIREMENTS AND VETO 
POWER.] 
    The petition requirement of section 9 and the right of 
owners and those subject to a service charge to veto a 
resolution in section 10 shall not apply to second or subsequent 
years' applications of a tax or service charge which is 
authorized to be in effect for more than one year pursuant to a 
resolution which has met the petition requirements of section 9 
and which has not been vetoed under section 10 for the first 
year's application.  A resolution levying a tax or imposing a 
service charge for more than one year shall not be adopted 
unless the notice of public hearing required by section 4 and 
the notice mailed with the adopted resolution pursuant to 
section 10 include the following information:  
    (a) In the case where the costs of repairing, operating, or 
maintaining of public improvements or facilities are to be paid 
by a tax or service charge, the maximum rate or amount of taxes 
to be levied or the maximum service charge to be imposed in any 
year and the maximum number of years the taxes will be levied or 
service charges imposed to pay for the improvement.  
    (b) In the case of operating and maintenance services, the 
maximum rate or amount of taxes to be levied or the maximum 
service charge to be imposed in any year and the maximum number 
of years, or a statement that the tax will be imposed for an 
indefinite number of years, the taxes will be levied or service 
charges imposed to pay for operation and maintenance services.  
    The resolution may provide that the maximum amount of tax 
to be levied or maximum service charge to be imposed in any year 
will increase or decrease from the maximum amount authorized in 
the preceding year based on an indicator of increased cost or a 
percentage amount established by the resolution.  
    Sec. 12.  [EFFECTIVE DATE.] 
    Sections 2 to 11 are effective the day after compliance 
with Minnesota Statutes, section 645.021, subdivision 3, by the 
governing body of the city of Bloomington. 
    Approved June 14, 1983