Minnesota Session Laws - 1985, Regular Session

  

                         Laws of Minnesota 1985 

                        CHAPTER 206-S.F.No. 1506
           An act authorizing the city of Waseca to establish and 
          provide taxes and service charges for a special 
          service district; authorizing the city of Albert Lea 
          to establish a port authority; authorizing the city of 
          Austin to establish a port authority. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [WASECA; SPECIAL SERVICE DISTRICT.] 
    Subdivision 1.  [DEFINITIONS.] For the purpose of this 
section the terms defined in this subdivision have the following 
meanings.  
    (a) "City" means the city of Waseca.  
    (b) "Special services" means parking services rendered or 
contracted for by the city. 
    Special services shall not include services that 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.  
    (c) "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.  
    (d) "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 subdivision 2 or 3.  
     (e) "Land area" means the land area located within the 
district which is subject to property taxation.  
    Subd. 2.  [ESTABLISHMENT.] The governing body of the city 
may adopt an ordinance establishing a special service district 
in the part of the city of Waseca that is bounded on the north 
by 6th Ave. N.E., on the west by the north-south tracks of the 
Chicago Northwestern rail line, on the south by 5th Ave. S.E., 
and on the east by 3rd St. N.E. and S.E.  Only property that is 
zoned for commercial, business, or industrial use under a 
municipal zoning ordinance may be included in the 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 district; 
and 
    (c) A statement that all persons owning property in the 
proposed district will be given opportunity to be heard at the 
hearing.  
    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 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 
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 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.  
    Subd. 3.  [TAXES.] Ad valorem taxes may be levied on 
taxable nonhomestead 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 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 district, for each calendar year, notice shall be 
given and hearing shall be held pursuant to subdivision 2 except 
that notice shall also be mailed to any individual or business 
organization subject to a service charge.  For purposes of this 
subdivision 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 improvements 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 district during 
the calendar year and the nature and character of special 
services to be rendered in the district during the calendar year.
    (d) A statement that the petition requirements of 
subdivision 8 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 district not exceeding the amount or rate expressed in the 
notice issued pursuant to this section. 
    Property exempted from taxation by Minnesota Statutes, 
section 272.02, shall be exempted from any ad valorem taxes 
imposed pursuant to this section.  
    Taxes and service charges imposed pursuant to this section 
shall not be included in the calculation of levies or limits on 
levies provided by other law or home rule charter provision.  
    Taxes levied under this section shall not be reduced 
pursuant to Minnesota Statutes, section 273.13, subdivisions 6, 
7, 7d, or 14a. 
    Subd. 4.  [ENLARGEMENT.] Boundaries of a special service 
area may be enlarged only after hearing and notice as provided 
in subdivisions 2 and 3.  Notice shall be served in the original 
district and in the area proposed to be added to the 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 subdivision 8 and the veto power in subdivision 9 
shall only apply to owners and individuals and business 
organizations in the area proposed to be added to the district.  
    Subd. 5.  [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 this section 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.  
    Subd. 6.  [DEBT.] The city council may issue certificates 
of indebtedness for purposes of any work or service authorized 
pursuant to this section.  The certificates shall be payable in 
not more than five years and shall be issued on the terms and in 
the manner 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. 
    Subd. 7.  [ADVISORY BOARD.] The governing body of the city 
may create and appoint an advisory board for the special service 
district to advise the governing body in connection with the 
construction, maintenance, and operation of improvements and the 
furnishing of special services in the 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 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 district, 
the advisory board of the district shall have an opportunity to 
review and comment upon the proposal.  
    Subd. 8.  [PETITION.] No public hearing may be held 
pursuant to subdivision 2 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 district file a petition requesting the public hearing 
with the city clerk.  No public hearing may be held pursuant to 
subdivision 3 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 
subdivision 3 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 
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.  
    Subd. 9.  [VETO POWERS OF OWNERS.] Except as provided in 
subdivision 10, the effective date of any ordinance or 
resolution adopted pursuant to subdivisions 2 and 3 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 subdivision 2.  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. 
    If owners of 35 percent of the land area in the district or 
owners of 35 percent of the assessed value in the district file 
an objection to the ordinance adopted by the city pursuant to 
subdivision 2 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 or 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 subdivision 3 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 
subdivision 3 with the city clerk before the effective date of 
the resolution, the resolution shall not become effective. 
    Subd. 10.  [EXCLUSION FROM PETITION AND VETO.] The petition 
requirement of subdivision 8 and the right of owners and those 
subject to a service charge to veto a resolution in subdivision 
9 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 subdivision 8 and which has not been 
vetoed under subdivision 9 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 subdivision 3 and the notice mailed with the 
adopted resolution pursuant to subdivision 9 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 preceeding year based on an indicator of increased cost or a 
percentage amount established by the resolution.  
    Sec. 2.  [ALBERT LEA; PORT AUTHORITY.] 
    The city of Albert Lea may establish a port authority 
commission that has the same powers as a port authority 
established under Minnesota Statutes, section 458.09, or other 
law.  If the city establishes a port authority commission, the 
city shall exercise all the powers relating to the port 
authority granted to a city by Minnesota Statutes, chapter 458, 
or other law.  Notwithstanding Minnesota Statutes, section 
458.09, subdivision 1, or other law, the city may choose the 
name of the commission.  Notwithstanding Minnesota Statutes, 
section 458.10, subdivision 1, or other law, the city may 
appoint a seven-member commission. 
    Sec. 3.  [AUSTIN; PORT AUTHORITY.] 
    The city of Austin may establish a port authority 
commission that has the same powers as a port authority 
established under Minnesota Statutes, section 458.09, or other 
law.  If the city establishes a port authority commission, the 
city shall exercise all the powers relating to the port 
authority granted to a city by Minnesota Statutes, chapter 458, 
or other law.  Notwithstanding Minnesota Statutes, section 
458.09, subdivision 1, or other law, the city may choose the 
name of the commission.  Notwithstanding Minnesota Statutes, 
section 458.10, subdivision 1, or other law, the city may 
appoint a seven-member commission. 
    Sec. 4.  [EFFECTIVE DATE.] 
    Sections 1 to 3 are effective the day following final 
enactment. 
    Approved May 23, 1985