2001 Minnesota Statutes

     116.19 Municipal powers. 

    Subdivision 1.    Purpose.  Notwithstanding a statute or 
 home rule charter to the contrary, a recipient of financial 
 assistance from the agency under section 116.162 may exercise 
 the authority provided in this section to abate combined sewer 
 overflow or provide money to pay all or part of the costs of the 
 abatement and of making improvements to any utility required to 
 effect the abatement. 

    Subd. 2.    General.  A recipient may acquire real or 
 personal property by purchase, including installment purchase, 
 lease, including a financing lease, condemnation, gift, or 
 grant, or may sell real or personal property at its fair market 
 value determined by the recipient and simultaneously enter into 
 an installment purchase or lease, including a financing lease, 
 for purposes of reacquiring real or personal property.  A 
 recipient may construct, enlarge, improve, replace, repair, 
 maintain, and operate a public sewer system, including storm 
 sewers, sanitary sewers, and facilities for separating storm 
 sewers from combined storm and sanitary sewers, or any other 
 public utilities combined with the public sewer system as 
 provided in this section.  To accomplish these purposes, a 
 recipient may exercise the powers granted a municipality by 
 chapters 115, 117, 412, 429, 435, 444, 471, and 475, and may 
 combine the public sewer system, for purposes of operation or 
 revenue collection or both or for other purposes the city 
 council determines, with one or more other public utilities.  
 Charges for the services provided by a combined utility may be 
 determined in any reasonable manner. 

    Subd. 3.    Debt.  A recipient may incur indebtedness 
 and may issue and sell bonds or other obligations, including 
 notes, an installment purchase contract, or obligations to make 
 payments under a financing lease, and pledge the full faith and 
 credit of the city to its payment for storm and sanitary sewers 
 and systems without submitting the question of issuing the 
 bonds, or otherwise incurring the obligations, to the electors.  
 The bonds or other obligations may be issued in one or more 
 series, may bear interest at the rate or rates, including 
 floating rates, and may be sold at public or private sale and at 
 the price the recipient determines.  A recipient may, in 
 addition to or in substitution for the pledge of its full faith 
 and credit, pledge the revenues or net revenues of its public 
 sewer system or a combined utility or a part of it, or mortgage 
 the assets of the system or combined utility.  A recipient may 
 vest in a trustee or trustees, located within or outside the 
 state, the right to enforce any covenants made to secure or to 
 pay the bonds or other obligations, and may determine the powers 
 and duties of the trustee or trustees.  Except as provided in 
 this section, the bonds or other obligations must be issued and 
 sold according to chapter 475. 

    Subd. 4.    Property tax.  In addition and supplemental 
 to the grants of authority in subdivisions 2 and 3, the 
 governing body may establish a special taxing district or 
 districts within the corporate limits of the city that include 
 some or all of the real or personal property served by a 
 combined sewer separated after July 1, 1985, and may levy and 
 collect ad valorem taxes in the district or districts for the 
 purposes of this section.  The taxes must be collected by the 
 county and paid over to the city as are other taxes.  The taxes 
 are not restricted by any other tax levy limitations imposed 
 upon the city by any other law or charter provision. 

    Subd. 5.    Assessments.  The governing body of the city 
 may divide the city into drainage districts or areas, and may 
 levy and collect assessments based on benefit to property, and 
 the assessments so levied may be based upon the existing or 
 highest and best land usage, square footage, front footage or 
 area.  The assessments may be levied in accordance with the 
 procedures set forth in the city's home rule charter, if any, or 
 chapter 429, as the council determines.  The assessments may be 
 levied and collected from all property whether public or 
 private, and in the case of public property the agency of 
 government responsible for the property must provide the 
 necessary money in its budget request. 

    Subd. 6.    Private finance.  To secure financing for 
 the purposes of this section, the governing body of the city may 
 use private financing methods, such as private ownership and 
 construction by any means available to the owner of new 
 facilities to benefit the city under a lease, financing lease, 
 installment purchase agreement or service contract, or the sale 
 or mortgaging of all or part of the city's existing public sewer 
 system, combined utility including the public sewer system, or 
 water utility, to benefit the city under a lease, financing 
 lease, installment purchase agreement or service contract.  The 
 private financing methods are not subject to any limitations 
 imposed by a home rule charter, if any, or by chapter 475.  Any 
 property benefiting the city under the private financing methods 
 is exempt from taxation and the payment of amounts in lieu of 
 taxes to the same extent as property owned by the city. 

    HIST: 1Sp1985 c 14 art 19 s 7