Minnesota Session Laws - 1986, Regular Session

  

                         Laws of Minnesota 1986 

                        CHAPTER 389-H.F.No. 1911 
           An act relating to natural resources; authorizing 
          watershed management organizations to establish taxing 
          districts within minor watershed units of watersheds; 
          amending Minnesota Statutes 1984, sections 473.878, by 
          adding a subdivision; 473.882, subdivision 3; 473.883, 
          subdivisions 2, 3, 6, and 7; Minnesota Statutes 1985 
          Supplement, section 473.882, subdivision 1. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 473.878, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [ADDITIONAL ORGANIZATIONS.] Any portion of the 
metropolitan area that is not in a watershed management 
organization by July 1, 1985, as required by subdivision 2, has 
until July 1, 1986, to form an organization.  Notwithstanding 
the requirements of subdivision 3, a watershed management 
organization formed under this subdivision has until December 
31, 1987, to prepare and submit a plan for review. 
    Sec. 2.  Minnesota Statutes 1985 Supplement, section 
473.882, subdivision 1, is amended to read: 
    Subdivision 1.  [WATERSHED MANAGEMENT TAX DISTRICT.] Any 
local government unit planning for water management under 
sections 473.878 and 473.879 may establish a watershed 
management tax district in the territory within the watershed, 
for the purpose of paying the costs of the planning required 
under sections 473.878 and 473.879.  Any local government unit 
which has part of its territory within a watershed for which a 
plan has been adopted in accordance with section 473.878 and 
which has a local water management plan adopted in accordance 
with section 473.879 may establish a watershed management tax 
district in the territory within the watershed or a minor 
watershed unit in the watershed, for the purpose of paying 
capital costs of the water management facilities described in 
the capital improvement program of the plans and for the purpose 
of paying for normal and routine maintenance of the facilities.  
A county or counties required by section 473.878, subdivision 2, 
to prepare, adopt, and implement a watershed plan shall 
apportion the costs of planning, capital improvements, and 
maintenance proportionate to benefits.  The county may apportion 
the costs among the minor watershed units in the watershed, or 
among the statutory and home rule charter cities and towns 
having territory in the watershed, and for this purpose may 
establish more than one watershed management tax district in the 
watershed. 
    Sec. 3.  Minnesota Statutes 1984, section 473.882, 
subdivision 3, is amended to read: 
    Subd. 3.  [TAX.] After adoption of the ordinance under 
subdivision 2, a local government unit may annually levy a tax 
on all taxable property in the district for the purposes for 
which the tax district is established.  The tax levied may not 
exceed one mill on property located in rural towns other than 
urban towns, unless allowed by resolution of the town electors.  
The proceeds of the tax shall be paid into a fund reserved for 
these purposes.  Any proceeds remaining in the reserve fund at 
the time the tax is terminated or the district is dissolved 
shall be transferred and irrevocably pledged to the debt service 
fund of the local unit to be used solely to reduce tax levies 
for bonded indebtedness of taxable property in the district.  A 
tax levied in accordance with this subdivision for paying 
capital costs is a levy for the payment of principal and 
interest on bonded indebtedness within the meaning of section 
275.50, subdivision 5, clause (e).  
    Sec. 4.  Minnesota Statutes 1984, section 473.883, 
subdivision 2, is amended to read: 
    Subd. 2.  [PROCEDURE.] A copy of the plan for the 
improvement shall be forwarded to the county board.  The 
organization shall then hold a public hearing on the proposed 
improvement, following publication once each week for two 
successive weeks before the date of the hearing in a legal 
newspaper published in the county or counties in which a part or 
all of the affected waters and lands are located.  The last 
publication shall occur not more than 30 days nor less than ten 
days before the hearing.  The notice shall state the time and 
place of hearing, the general nature of the proposed 
improvement, the estimated cost, and the method by which the 
cost of the improvement is to be paid, including the cost to be 
allocated to each county or minor watershed unit under 
subdivision 3.  The cost must be apportioned according to the 
benefits received by property in the county.  Not less than ten 
days before the hearing, notice by mail shall be given to the 
counties and to each home rule charter or statutory city or town 
located wholly or partly within the territory of the watershed 
management organization.  Failure to give mailed notice or 
defects in the notice shall not invalidate the proceedings.  At 
the time and place specified in the notice the organization 
shall hear all parties interested in the proposed improvement.  
If upon full hearing the organization finds that the improvement 
will be conducive to public health and promote the general 
welfare, and is in compliance with sections 473.875 to 473.883 
and the plan adopted pursuant to section 473.878, it shall make 
findings accordingly, determine the cost of the improvement, and 
certify the cost to the county or counties for payment.  
    Sec. 5.  Minnesota Statutes 1984, section 473.883, 
subdivision 3, is amended to read: 
    Subd. 3.  [APPORTIONMENT OF COSTS.] If the territory of the 
watershed management organization extends into more than one 
county, the cost of the improvement shall be certified to the 
respective county boards in the proportions prescribed in the 
capital improvement program of the organization.  The 
certification of the watershed management organization may 
apportion the cost among some or all of the minor watershed 
units in the watershed and for this purpose may require the 
establishment of more than one tax district in the watershed. 
    Sec. 6.  Minnesota Statutes 1984, section 473.883, 
subdivision 6, is amended to read: 
    Subd. 6.  [TAX.] For the payment of principal and interest 
on the bonds issued under subdivision 5 and the payment required 
under subdivision 4, the county shall irrevocably pledge and 
appropriate the proceeds of an ad valorem tax levied on all 
taxable property located within the territory of the watershed 
management organization or minor watershed unit for which the 
bonds are issued.  Each year until the reserve for payment of 
the bonds is sufficient to retire the bonds, the county shall 
levy on all taxable property in the territory of the 
organization or unit, without respect to any statutory or other 
limitation on taxes, an amount of taxes sufficient to pay 
principal and interest on the bonds and to restore any 
deficiencies in reserves required to be maintained for payment 
of the bonds.  The tax levied on rural towns other than urban 
towns may not exceed one mill, unless approved by resolution of 
the town electors.  If at any time the amounts available from 
the levy on property in the territory of the organization are 
insufficient to pay principal and interest on the bonds when 
due, the county shall make payment from any available funds in 
the county treasury.  The amount of any taxes which are required 
to be levied outside of the territory of the watershed 
management organization or unit or taken from the general funds 
of the county to pay principal or interest on the bonds shall be 
reimbursed to the county from taxes levied within the territory 
of the watershed management organization or unit.  
    Sec. 7.  Minnesota Statutes 1984, section 473.883, 
subdivision 7, is amended to read: 
    Subd. 7.  [MAINTENANCE LEVY.] For the purpose of creating a 
maintenance fund to be used for normal and routine maintenance 
of a work of improvement constructed in whole or part with money 
provided by the county pursuant to subdivision 4, the board of 
managers of a watershed district, with the approval of the 
county, may impose an ad valorem levy on all property located 
within the territory of the watershed district or minor 
watershed unit.  The levy shall be certified, levied, collected, 
and distributed as provided in section 112.611, and shall be in 
addition to any other moneys levied and distributed to the 
district thereunder.  The proceeds of the levy shall be 
deposited in a separate maintenance and repair account to be 
used only for the purpose for which the levy was made. 
    Approved March 21, 1986