2000 Minnesota Statutes

CHAPTER 365A. Subordinate service districts

     365A.01 Towns; subordinate service districts; purpose. 

    It is the purpose of sections 365A.01 to 365A.10 to provide 
 a means by which a town as a unit of general local government 
 can effectively provide and finance various governmental 
 services for its residents. 

    HIST: 1989 c 277 art 2 s 48 

     365A.02 Definition. 

    "Subordinate service district" means a defined area within 
 the town in which one or more governmental services or additions 
 to townwide services are provided by the town specially for the 
 area and financed from revenues from the area.  The boundaries 
 of a single subordinate service district may not embrace an 
 entire town. 

    HIST: 1989 c 277 art 2 s 49 

     365A.03 Establishment of service district. 

    Notwithstanding any provision of law requiring uniform 
 property tax rates on real or personal property within the town, 
 a town may establish subordinate service districts to provide 
 and finance a governmental service or function that it is 
 otherwise authorized to undertake.  A function or service to be 
 provided may include a function or service that the town 
 ordinarily provides throughout the town only to the extent that 
 there is an increase in the level of the function or service 
 provided in the service district over that provided throughout 
 the town. 

    HIST: 1989 c 277 art 2 s 50 

     365A.04 Creation by petition. 

    Subdivision 1.    Petition.  A petition signed by at 
 least 50 percent of the property owners in the part of the town 
 proposed for the subordinate service district may be submitted 
 to the town board requesting the establishment of a subordinate 
 service district to provide a service that the town is otherwise 
 authorized by law to provide.  The petition must include the 
 territorial boundaries of the proposed district and specify the 
 kinds of services to be provided within the district. 

    Subd. 2.    Public hearing.  Upon receipt of the 
 petition, and the verification of the signatures by the town 
 clerk, the town board shall, within 30 days following 
 verification, hold a public hearing on the question of whether 
 or not the requested district shall be established. 

    Subd. 3.    Approval; disapproval.  Within 30 days after 
 the public hearing, the town board by resolution shall approve 
 or disapprove the establishment of the requested district.  A 
 resolution approving the establishment of the district may 
 contain amendments or modifications of the district's boundaries 
 or functions as set forth in the petition. 

    HIST: 1989 c 277 art 2 s 51 

     365A.05 Publication and effective date. 

    Within 20 days after passage of a resolution authorizing 
 the establishment of a subordinate service district, the town 
 board shall have the resolution published once in a qualified 
 newspaper of general circulation within the town.  The 
 resolution must include a general description of the territory 
 to be included within the district, the kind of service to be 
 provided, and a statement of how the service will be financed.  
 A notice must also be mailed to the owner of each parcel within 
 the area proposed to be included in the district.  The notice 
 shall be sent to the same address as on the property tax 
 statement.  The district shall begin 60 days after publication 
 or at a later date specified in the resolution. 

    HIST: 1989 c 277 art 2 s 52 

     365A.06 Reverse referendum. 

    Subdivision 1.    Petition.  Upon receipt of a petition 
 signed by at least 25 percent of the property owners within the 
 territory of the proposed district, before the effective date of 
 its establishment as specified in section 365A.05, the 
 establishment shall be in abeyance pending referendum vote 
 within the boundaries of the proposed district.  

    Subd. 2.    Election.  The town board shall hold a 
 special election within the boundaries of the proposed district 
 not less than 30 nor more than 90 days after receipt of the 
 petition.  The question submitted and voted upon by the property 
 owners within the territory of the proposed district must be 
 phrased substantially as follows:  

    "Shall a subordinate service district be established to 
 provide (service or services to be provided) financed by 
 (revenue sources)?"  

    If a majority of those voting on the question favor 
 creation of the district, the district shall begin upon 
 certification of the vote by the town clerk.  The town clerk 
 shall administer the election.  

    HIST: 1989 c 277 art 2 s 53 

     365A.07 Expansion of boundaries of a district. 

    The town board, upon petition, may enlarge any existing 
 subordinate service district under the procedures specified in 
 sections 365A.03 to 365A.06.  Only property owners residing in 
 territory to be added to the district shall be eligible to 
 participate in an election, unless at least 25 percent of the 
 property owners residing in the existing district petition to 
 participate, in which case all property owners residing in the 
 proposed enlarged district shall be eligible.  

    HIST: 1989 c 277 art 2 s 54 

     365A.08 Financing. 

    Upon adoption of the next annual budget following the 
 creation of a subordinate service district the town board shall 
 include in the budget appropriate provisions for the operation 
 of the district including either a property tax levied only on 
 property of the users of the service within the boundaries of 
 the district or a levy of a service charge against the users of 
 the service within the district, or a combination of a property 
 tax and a service charge on the users of the service.  

    A tax or service charge or a combination of them may be 
 imposed to finance a function or service in the district that 
 the town ordinarily provides throughout the town only to the 
 extent that there is an increase in the level of the function or 
 service provided in the service district over that provided 
 throughout the town.  In that case, in addition to the townwide 
 tax levy, an amount necessary to pay for the increase in the 
 level of the function or service may be imposed in the district. 

    HIST: 1989 c 277 art 2 s 55 

  365A.09 Repealed, 1998 c 389 art 3 s 47 

     365A.095 Petition for removal of district; procedure. 

    A petition signed by at least 75 percent of the property 
 owners in the territory of the subordinate service district 
 requesting the removal of the district may be presented to the 
 town board.  Within 30 days after the town board receives the 
 petition, the town clerk shall determine the validity of the 
 signatures on the petition.  If the requisite number of 
 signatures are certified as valid, the town board must hold a 
 public hearing on the petitioned matter.  Within 30 days after 
 the end of the hearing, the town board must decide whether to 
 discontinue the subordinate service district, continue as it is, 
 or take some other action with respect to it. 

    HIST: 1998 c 389 art 3 s 16 

     365A.10 Coordination of districts. 

    If a county establishes a subordinate service district in 
 part of a town under enabling law for counties, a town may not 
 establish a subordinate service district to provide the same 
 service in the part of the town served by the county.  If a town 
 establishes a subordinate service district in part of the town 
 under this chapter or other law, a county may not establish a 
 subordinate service district to provide the same service in the 
 part of the town served by the town. 

    HIST: 1989 c 277 art 2 s 57