Office of the Revisor of Statutes
Minnesota Session Laws - 2004, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 141-S.F.No. 1626
An act relating to municipalities; making certain
changes regarding storm and sanitary sewer
authorizations; amending Minnesota Statutes 2002,
section 444.075, subdivisions 1, 1a, 2, 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 2002, section 444.075,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] For purposes of The
definitions in this subdivision apply in this section, the term.
(a) "Municipality" means a home rule charter or statutory
city, except a city of the first class, or a town that is not in
an orderly annexation process on October 3, 1989. The term
(b) "Governing body" means the town board with respect to
towns.
(c) "Waterworks" means waterworks systems, including mains,
valves, hydrants, service connections, wells, pumps, reservoirs,
tanks, treatment plants, and other appurtenances of a waterworks
system.
(d) "Sanitary sewer" means sanitary sewer systems,
including sewage treatment works, disposal systems, and other
facilities for disposing of sewage, industrial waste, or other
wastes.
(e) "Storm sewer" means storm sewer systems, including
mains, holding areas and ponds, and other appurtenances and
related facilities for the collection and disposal of storm
water.
(f) "Facilities" means and includes waterworks, sanitary
sewer and storm sewer systems, or any portion or portions
thereof.
Sec. 2. Minnesota Statutes 2002, section 444.075,
subdivision 1a, is amended to read:
Subd. 1a. [AUTHORIZATION.] Any municipality 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,
(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 maintain and operate the facilities
inside or outside its corporate limits, and acquire by gift,
purchase, lease, condemnation, or otherwise any and all land and
easements required for that purpose. The authority hereby
granted is in addition to all other powers with reference to the
facilities otherwise granted by the laws of this state or by the
charter of any municipality. The authority regarding storm
sewers granted in clause (iii) to municipalities which have
territory within a watershed which has adopted a watershed plan
pursuant to section 103B.231 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 regarding storm sewers granted in
clause (iii) to municipalities which have adopted local water
management plans pursuant to section 103B.235 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 municipalities 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. 3. Minnesota Statutes 2002, section 444.075,
subdivision 2, is amended to read:
Subd. 2. [FINANCING.] For the purpose of paying the cost
of building, constructing, reconstructing, repairing, enlarging,
improving, or in other manner obtaining the facilities or any
portion of them, and of obtaining and complying with permits
required by law, a municipality or county may issue and sell its
general obligations, which may be made payable primarily from
taxes or from special assessments to be levied to pay the cost
of the facilities or from net revenues derived from water or
sewer facilities service charges or from other nontax revenues
pledged for their payment under charter or other statutory
authority, or from two or more of the sources; or it may issue
special obligations, payable solely from taxes or special
assessments or from revenues, or from two or more of the
sources. Real estate tax revenues should be used only, and then
on a temporary basis, to pay general or special obligations when
the other revenues are insufficient to meet the obligations.
All obligations shall be issued and sold in accordance with
chapter 475. When special assessments are pledged for the
payment of the obligations, they shall be authorized and issued
in accordance with the provisions of chapter 429, or of the
city's charter if it authorizes these obligations and the
governing body determines to proceed under the charter. When
net revenues are pledged to the payment of the obligations,
together with or apart from taxes and special assessments, the
pledge shall be made in accordance with the provisions of
subdivision 3.
Sec. 4. Minnesota Statutes 2002, section 444.075,
subdivision 3, is amended to read:
Subd. 3. [CHARGES; NET REVENUES.] (a) To pay for the
construction, reconstruction, repair, enlargement, improvement,
or other obtainment and, the maintenance, operation and use of
the facilities, and of obtaining and complying with permits
required by law, the governing body of a municipality or county
may impose just and equitable charges for the use and for the
availability of the facilities and for connections with them and
make contracts for the charges as provided in this section. The
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 municipality or county itself.
(b) Charges made for service directly rendered shall be as
nearly as possible proportionate to the cost of furnishing the
service, and.
Subd. 3a. [SANITARY SEWER CHARGES.] Sanitary sewer charges
may be fixed:
(1) on the basis of water consumed,; or
(2) by reference to a reasonable classification of the
types of premises to which service is furnished,; or
(3) by reference to the quantity, pollution qualities and
difficulty of disposal of sewage and storm water produced,; or
(4) on any other equitable basis including, but without
limitation, any combination of those equitable bases referred to
above in clauses (1) to (3), but specifically excluding use of
the basis referred to in subdivision 3b, clause (1); and
otherwise without limit.
Subd. 3b. [STORM SEWER CHARGES.] Storm sewer charges may
be fixed:
(1) by reference to the square footage of the property
charged, adjusted for a reasonable calculation of the storm
water runoff; or
(2) by reference to a reasonable classification of the
types of premises to which service is furnished; or
(3) by reference to the quantity, pollution qualities, and
difficulty of disposal of storm water runoff produced; or
(4) on any other equitable basis, including any combination
of equitable bases referred to in clauses (1) to (3), but
specifically excluding use of the basis referred to in
subdivision 3a, clause (1); and otherwise without limit.
Subd. 3c. [MINIMUM CHARGES.] (a) 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 to them.
(b) Minimum charges or user charges collected for
waterworks, sanitary sewers, or storm sewers must be used only
to pay for items for which charges are authorized in subdivision
3.
Subd. 3d. [FACILITIES' CONNECTION CHARGES.] Charges for
connections to the facilities may in the discretion of the
governing body be fixed by reference to the portion of the cost
of connection 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.
Subd. 3e. [WHO MAY BE CHARGED; UNPAID CHARGES.] The
governing body may make the 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.
Subd. 3f. [TAX LEVIES FOR PUBLIC CHARGES.] 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, for
maintaining sanitary conditions, and for proper storm water
drainage in and for public buildings, parks, streets, and other
public places.
Subd. 3g. [REASONABLENESS OF CHARGES.] 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 municipality
or county including the principal and interest to become due on
obligations issued or to be issued and the costs of obtaining
and complying with permits required by law.
Subd. 3h. [WHEN CHARGES ARE NOT UNREASONABLE.] When net
revenues have been appropriated to the payment of the cost of
the establishment, or of any specified replacement, improvement,
enlargement or extension, 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 the purpose shall
be deemed unreasonable by virtue of the fact that the project to
be financed has not been commenced or completed, if proceedings
for it 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 the charges.
Subd. 3i. [COLLECTIONS FIRST FOR CURRENT COSTS.] All
charges, when collected, and all moneys received from the sale
of any facilities or equipment or any by-products, shall be
placed in a separate fund, and used first to pay the normal,
reasonable and current costs of operating and maintaining the
facilities.
Subd. 3j. [EXCESS NET REVENUES MAY BE USED FOR DEBT.] The
net revenues received in excess of the 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 the
portion of the principal and interest as may be directed in the
resolutions, and net revenues derived from any facilities of the
types listed in subdivision 1a, whether or not financed by the
issuance of the obligations, may be pledged or used to pay
obligations issued for other facilities of the same types.
Subd. 3k. [COVENANTS TO SECURE DEBT PAYMENTS.] In
resolutions authorizing the issuance of either general or
special obligations and pledging net revenues to them, the
governing body may make 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 authorized by this section 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 reserves securing the payments as may be provided in
the resolutions.
Subd. 3l. [ENFORCEABILITY OF COVENANT.] When 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. 5. [EFFECTIVE DATE.]
Sections 1 to 4 are effective January 1, 2006, except that
the inclusion of cities of the first class in the definition of
municipality in Minnesota Statutes, section 444.075, subdivision
1, paragraph (a), is effective August 1, 2004.
Presented to the governor March 25, 2004
Signed by the governor March 26, 2004, 6:50 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes