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Key: (1) language to be deleted (2) new language


                         Laws of Minnesota 1991 

                        CHAPTER 182-S.F.No. 350 
           An act relating to the environment; adding a purpose 
          for expenditure from the metropolitan landfill 
          contingency action trust fund; authorizing the city of 
          Hopkins to issue bonds to pay for environmental 
          response costs at a landfill; authorizing the city to 
          impose a landfill cleanup assessment against property; 
          authorizing a service charge; appropriating money; 
          amending Minnesota Statutes 1990, section 473.845, 
          subdivision 3. 
     Section 1.  Minnesota Statutes 1990, section 473.845, 
subdivision 3, is amended to read: 
    Subd. 3.  [EXPENDITURES FROM THE FUND.] Money in the fund 
may only be appropriated to the agency for expenditure for: 
    (1) reasonable and necessary expenses for closure and 
postclosure care of a mixed municipal solid waste disposal 
facility in the metropolitan area for a 20-year period after 
closure, if the agency determines that the operator or owner 
will not take the necessary actions requested by the agency for 
closure and postclosure in the manner and within the time 
    (2) reasonable and necessary response and postclosure costs 
at a mixed municipal solid waste disposal facility in the 
metropolitan area that has been closed for 20 years in 
compliance with the closure and postclosure rules of the agency; 
    (3) reasonable and necessary response costs resulting from 
county actions required under section 473.833, subdivision 2a, 
when those actions are done under the supervision of the agency; 
    (4) reimbursement to a local government unit for costs 
incurred over $400,000 under a work plan approved by the 
commissioner of the agency to remediate methane at a closed 
disposal facility owned by the local government unit. 
    Sec. 2.  [DEFINITIONS.] 
    For the purposes of this act, the following terms have the 
meaning given them. 
    (a) "City" means the city of Hopkins. 
    (b) "Landfill" means the landfill site owned by the city in 
the northwest quarter of the southwest quarter of Section 25, 
Township 117, North Range 22 West, Hennepin county. 
    (c) "Release" has the meaning given it in Minnesota 
Statutes, section 115B.02, subdivision 15. 
    (d) "Response" has the meaning given it in Minnesota 
Statutes, section 115B.02, subdivision 18. 
    Sec. 3.  [BONDS; LOANS.] 
    Subdivision 1.  [BONDS.] (a) The city may issue bonds as 
provided in this subdivision after making the findings in this 
paragraph.  The city must find: 
    (1) costs have been or will be incurred to respond to 
releases from the landfill, including methane releases and 
releases into the groundwater; 
    (2) other responsible parties have not provided funds to 
cover the costs of responding to the releases; 
    (3) the public health and welfare or the environment will 
be endangered by allowing the releases to continue; 
    (4) the response is consistent with orders and directives 
from the commissioner of the Minnesota pollution control agency; 
    (5) the issuance of bonds is deemed necessary by the city 
to pay for response costs. 
    (b) The city may authorize by resolution the issuance of 
bonds in an aggregate amount up to $5,000,000, subject to the 
reduction provided in section 7.  The proceeds of the bonds may 
be used to pay any costs incurred or to be incurred by the city 
to respond to releases, to conduct closure and postclosure care, 
to remediate the landfill and any immediately adjacent property, 
and to refund outstanding bonds issued for these purposes. 
    (c) The city may pledge to the payment of the bonds and the 
interest on the bonds, its full faith, credit, and taxing 
powers, or the revenues from the landfill cleanup assessment and 
the service charge authorized by this act. 
    (d) The proceeds of the bonds may be used in part to 
establish a reserve as a further security for the payment of 
their principal and interest when due and to pay credit 
enhancement fees. 
    (e) Bonds issued under this section may be sold at public 
or private sale upon conditions that the city determines.  An 
election is not required to authorize the issuance of bonds 
under this section and bonds or obligations issued under this 
act shall not be included in computing the net debt of the city 
under Minnesota Statutes, chapter 475.  Expenses for response 
costs that are payable through the bonding authority granted in 
this act are not current expenses of the city under Minnesota 
Statutes, section 475.52.  Except as otherwise provided in this 
section, the bonds must be issued and sold as provided in 
Minnesota Statutes, chapter 475. 
authorizing bonds in accordance with this act, the city may 
borrow to provide money immediately that is required for the 
bond purpose.  The city shall decide the terms of the loans by 
resolution.  The loans must be evidenced by negotiable notes due 
in not more than 24 months from the date of the loan payable to 
the order of the lender or to bearer, to be repaid with interest 
from the proceeds of the bonds when the bonds are issued and 
delivered to the bond purchasers.  The city may enter into loan 
and related agreements, both before and after issuing the 
obligations, with persons, firms, public or private 
corporations, federal or state agencies, and governmental units 
under terms and conditions the city considers appropriate.  A 
governmental unit in the state may make or purchase the loans.  
Minnesota Statutes, chapter 475, does not apply to the loans and 
the loans may be made without advertisement. 
     Sec. 4.  [REVENUE MECHANISMS.] 
    Subdivision 1.  [AUTHORITY.] (a) The city may, by 
ordinance, impose the landfill cleanup assessment as provided in 
subdivision 2 to pay the costs specified in this subdivision.  
If revenue from the landfill cleanup assessment is insufficient 
for payment of those costs, the city may levy a service charge 
as provided in subdivision 3 for the remaining amount necessary. 
    The costs which can be paid from the assessment authorized 
in subdivision 2 and the service charge authorized in 
subdivision 3 include: 
    (1) the costs of principal and interest on bonds or other 
obligations issued under section 3 until the bonds or other 
obligations are repaid; and 
    (2) the costs incurred or to be incurred to respond to 
releases, closure, and postclosure care of the landfill until 
June 30, 1996. 
    (b) The city shall not budget more than $400,000 per year 
from the combination of assessments and service charges.  Any 
amount received in excess of $400,000 in one year shall be 
subtracted from the total of the assessments and service charges 
allowed to be imposed for the next year. 
    (c) After June 30, 1996, the city shall not budget from the 
total of the assessments and service charges more than the 
annual amount needed to pay principal and interest on the bonds 
issued under section 3.  The city's authority to impose 
assessments and service charges under this act expires on final 
payment of the principal and interest on the bonds, except that 
any funds remaining may be placed in the general fund of the 
    Subd. 2.  [LANDFILL CLEANUP ASSESSMENT.] (a) The city may 
impose an assessment against the property classes established by 
the city under paragraph (b).  The landfill cleanup assessment 
must be determined by the city and certified to the county 
auditor by January 1 of each year.  The assessment must be 
extended on the assessment rolls of the county for the year in 
which the assessment is filed, and shall be enforced and 
collected in the same manner provided for real estate taxes.  
The assessments, if not paid, become delinquent in January of 
the following year and are subject to the same penalties and at 
the same rate of interest as delinquent real estate taxes.  
Assessments imposed under this subdivision are exempt from the 
determination of the city's levy limitation under Minnesota 
Statutes, chapter 275.  
    (b) For the purposes of this subdivision, the city shall 
classify, by ordinance, real property within the corporate 
limits of the city according to the type of solid waste 
generation on or from the property.  Property exempt from 
taxation by the state and political subdivisions and other 
governmental units must also be included in the classification.  
Classifications must include, but are not limited to, 
commercial, industrial, single family residential, and 
multifamily residential property.  Rates and charges for the 
assessment may take into account the character, kind, and 
quality of the service and of the solid waste, the method of 
disposition, the number of people served at each place of 
collection, and all other factors that enter into the cost of 
solid waste generation. 
    Subd. 3.  [SERVICE CHARGE.] The city may levy a service 
charge computed upon the net tax capacity of all the taxable 
property in the city, not to exceed the remaining amount 
necessary as provided in subdivision 1.  Service charges based 
on the net tax capacity may be payable and collected at the same 
time and in the same manner as provided for payment and 
collection of ad valorem taxes.  Service charges imposed under 
this act are not included in computations under Minnesota 
Statutes, section 469.177, chapter 473F, or any other law that 
applies to general ad valorem levies. 
     This act does not affect the liability of persons for costs 
or damages associated with releases from the landfill and does 
not affect the city's right to pursue responsible parties or 
indemnification from any party for costs or damage associated 
with the landfill. 
    This act does not affect the city's liability under 
Minnesota Statutes, section 115B.04, subdivision 4. 
     The city shall seek reimbursement of the costs covered by 
this act under any applicable insurance contract and shall seek 
to recover its costs from persons liable for releases from the 
landfill.  The city shall take all reasonable actions in seeking 
reimbursements of any costs incurred to remediate methane at the 
    The city must first use amounts recovered under this 
section to reimburse the metropolitan landfill contingency 
action trust fund for any appropriation made from it to the city 
under this act, and the city for the first $400,000 paid by the 
city for methane remediation at the landfill.  The remaining 
amount recovered must first be used to pay the administrative 
and legal expenses of the city that are incurred under the act. 
The city must then use the remaining amount recovered to pay 
principal and interest on the bonds issued under section 3.  If 
any excess remains after the bonds have been retired, the city 
must use it to reduce property taxes.  
    Sec. 7.  [APPROPRIATION.] 
    $1,300,000 is appropriated from the metropolitan landfill 
contingency action trust fund to the commissioner of the 
pollution control agency to be available until June 30, 1993, 
for the purpose of reimbursing the city for costs incurred over 
$400,000 under a work plan approved by the commissioner to 
remediate methane at the landfill. 
    The maximum amount for which the city may bond under 
section 3, subdivision 1, paragraph (b), is reduced by the 
amount of the appropriation in this section. 
     Sec. 8.  [EFFECTIVE DATE.] 
     This act is effective the day following final enactment, 
except that if the service charges are imposed in section 4, 
subdivision 3, they cannot be levied on property before the 1991 
levy, payable in 1992. 
    Presented to the governor May 21, 1991 
    Signed by the governor May 24, 1991, 5:30 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes