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CHAPTER 429. LOCAL IMPROVEMENTS, SPECIAL ASSESSMENTS

Table of Sections
SectionHeadnote
429.01Repealed, 1953 c 398 s 13 subd 1
429.011DEFINITIONS.
429.02Repealed, 1953 c 398 s 13 subd 1
429.021LOCAL IMPROVEMENTS, COUNCIL POWERS.
429.03Repealed, 1953 c 398 s 13 subd 1
429.031PRELIMINARY PLANS, HEARINGS.
429.035IMPROVEMENTS, PETITION.
429.036APPEAL FROM DETERMINATION OF LEGALITY OF PETITION.
429.04Repealed, 1953 c 398 s 13
429.041COUNCIL PROCEDURE.
429.05Repealed, 1953 c 398 s 13 subd 1
429.051APPORTIONMENT OF COST.
429.052STREET OR ROAD IMPROVEMENTS OUTSIDE MUNICIPAL BOUNDARIES.
429.06Repealed, 1953 c 398 s 13 subd 1
429.061ASSESSMENT PROCEDURE.
429.07Repealed, 1953 c 398 s 13
429.071SUPPLEMENTAL ASSESSMENTS; REASSESSMENT.
429.08Repealed, 1953 c 398 s 13 subd 1
429.081APPEAL TO DISTRICT COURT.
429.09Repealed, 1953 c 398 s 13
429.091FINANCING.
429.10Repealed, 1953 c 398 s 13
429.101UNPAID SPECIAL CHARGES MAY BE SPECIAL ASSESSMENTS.
429.11Repealed, 1953 c 398 s 13
429.111CHARTER PROVISIONS, EFFECT.
429.18429.12-429.18 Repealed, 1953 c 398 s 13
429.185Repealed, 1949 c 314 s 3
429.19Renumbered 429.035
429.20Renumbered 429.036
429.29429.21-429.29 Repealed, 1953 c 398 s 13
429.30Renumbered 435.36, subdivision 1
429.31Renumbered 435.36, subd 2
429.01 [Repealed, 1953 c 398 s 13 subd 1]
429.011 DEFINITIONS.
    Subdivision 1. Application. For the purpose of this chapter the terms defined in this section
shall have the meanings ascribed to them.
    Subd. 2. Municipality. "Municipality" means any city of the second, third, or fourth class
however organized, or any statutory city or any town as defined in section 368.01.
    Subd. 2a. Municipality. "Municipality" also includes a county in the case of construction,
reconstruction, or improvement of a county state-aid highway or county highway as defined in
section 160.02 including curbs and gutters and storm sewers; a county exercising its powers and
duties under section 444.075, subdivision 1; and a county for expenses not paid for under section
403.113, subdivision 3, paragraph (b), clause (3).
    Subd. 2b. Municipality. "Municipality" also includes any town not having the powers
granted herein pursuant to any other law in the case of construction, reconstruction or
improvement of a town road including curbs and gutters and storm sewers and in the case
of those improvements designated in section 429.021, subdivision 1, clauses (1), (2), (4), (5),
(6), (7), (8), and (10).
    Subd. 3. Council. "Council" means the body of the city having general legislative powers,
the town board of the town, or the county board of a county.
    Subd. 4. Clerk. "Clerk" means the chief clerical officer of the municipality.
    Subd. 5. Improvement. "Improvement" means any type of improvement made under
authority granted by section 429.021, and in the case of a county is limited to the construction,
reconstruction, or improvement of a county state-aid highway or county highway including curbs
and gutters and storm sewers, and to the purchase, installation, or maintenance of signs, posts, and
markers for addressing related to the operation of enhanced 911 telephone service.
    Subd. 6. Newspaper. "Newspaper" means the official newspaper of the municipality, or if
there is no official newspaper, a legal newspaper of general circulation in the municipality.
    Subd. 7. Street. "Street" means any street, alley, or other public way, or any part thereof.
    Subd. 8. Utilities commission. "Utilities commission" means the municipal board or
commission, other than the council, which exercises any authority or control over the operation of
any municipally owned public utility.
    Subd. 9. Pedestrian skyway system. "Pedestrian skyway system" means any system of
providing for pedestrian traffic circulation, mechanical or otherwise, elevated above ground,
within and without the public right-of-way, and through or above private property and buildings,
and includes overpasses, bridges, passageways, walkways, concourses, hallways, corridors,
arcades, courts, plazas, elevators, escalators, heated canopies, and accesses and all fixtures,
furniture, equipment, facilities, services, and appurtenances which in the judgment of the council
will enhance the movement, safety, security, convenience and enjoyment of pedestrians and
benefit the city and adjoining properties.
    Subd. 10. Underground pedestrian concourse. "Underground pedestrian concourse" means
any system of providing for pedestrian traffic circulation, mechanical or otherwise, below ground,
within and without the public right-of-way, and through or below private property, and includes
tunnels, passageways, walkways, concourses, hallways, corridors, arcades, plazas, elevators,
escalators, heated canopies, and accesses and all fixtures, furniture, equipment, facilities, and
appurtenances which in the judgment of the council will enhance the movement, safety, security,
convenience and enjoyment of pedestrians and benefit the city and adjoining properties.
    Subd. 11. Special lighting system. "Special lighting system" means lights or light displays
of any type located within or without the public right-of-way.
    Subd. 12. Acquire. "Acquire" includes, but is not limited to, the obtaining by purchase,
condemnation, or leasing rights or interests in the areas above or below the surface of the ground
of real property or structures or improvements thereon.
    Subd. 13. Public mall, plaza, or courtyard. "Public mall, plaza, or courtyard" means
any wholly or partly opened or enclosed public area adjacent to or attached to a wall, fence,
commercial structure, hotel, or any other building and designed as a place for passive recreation,
public entertainment, exhibition and education, or a pedestrian walk.
    Subd. 14. Fire protection system. "Fire protection system" means pipes, standpipes,
sprinklers, control systems and other devices and equipment installed in or outside a building
for the primary purpose of eliminating or reducing the spread of fire in the building or providing
for safe evacuation of the building, whether the devices and equipment are publicly or privately
owned.
    Subd. 15. Highway sound barriers. "Highway sound barriers" means sound abatement
walls erected along highways to reduce noise levels attributable to vehicular traffic.
    Subd. 16. On-site water contaminant improvements. "On-site water contaminant
improvements" means pipes, wells, and other devices and equipment installed in or outside
a building for the primary purpose of eliminating water contamination caused by lead or other
toxic or health threatening substances in the water, whether the improvements so installed are
publicly or privately owned.
History: 1953 c 398 s 1; 1961 c 338 s 1; 1969 c 741 s 1-3; 1971 c 617 s 1-4; 1973 c 123 art
5 s 7; 1973 c 636 s 1; 1973 c 702 s 22; 1974 c 233 s 1; 1976 c 147 s 1; 1978 c 634 s 1,2; 1979 c
330 s 1; 1983 c 9 s 1; 1984 c 478 s 1; 1984 c 591 s 1; 1986 c 315 s 1; 1987 c 138 s 1; 1988 c 564
s 1; 1994 c 614 s 5; 2000 c 490 art 5 s 29,30
429.02 [Repealed, 1953 c 398 s 13 subd 1]
429.021 LOCAL IMPROVEMENTS, COUNCIL POWERS.
    Subdivision 1. Improvements authorized. The council of a municipality shall have power
to make the following improvements:
(1) To acquire, open, and widen any street, and to improve the same by constructing,
reconstructing, and maintaining sidewalks, pavement, gutters, curbs, and vehicle parking strips of
any material, or by grading, graveling, oiling, or otherwise improving the same, including the
beautification thereof and including storm sewers or other street drainage and connections from
sewer, water, or similar mains to curb lines.
(2) To acquire, develop, construct, reconstruct, extend, and maintain storm and sanitary
sewers and systems, including outlets, holding areas and ponds, treatment plants, pumps, lift
stations, service connections, and other appurtenances of a sewer system, within and without
the corporate limits.
(3) To construct, reconstruct, extend, and maintain steam heating mains.
(4) To install, replace, extend, and maintain street lights and street lighting systems and
special lighting systems.
(5) To acquire, improve, construct, reconstruct, extend, and maintain water works systems,
including mains, valves, hydrants, service connections, wells, pumps, reservoirs, tanks, treatment
plants, and other appurtenances of a water works system, within and without the corporate limits.
(6) To acquire, improve and equip parks, open space areas, playgrounds, and recreational
facilities within or without the corporate limits.
(7) To plant trees on streets and provide for their trimming, care, and removal.
(8) To abate nuisances and to drain swamps, marshes, and ponds on public or private
property and to fill the same.
(9) To construct, reconstruct, extend, and maintain dikes and other flood control works.
(10) To construct, reconstruct, extend, and maintain retaining walls and area walls.
(11) To acquire, construct, reconstruct, improve, alter, extend, operate, maintain, and
promote a pedestrian skyway system. Such improvement may be made upon a petition pursuant
to section 429.031, subdivision 3.
(12) To acquire, construct, reconstruct, extend, operate, maintain, and promote underground
pedestrian concourses.
(13) To acquire, construct, improve, alter, extend, operate, maintain, and promote public
malls, plazas or courtyards.
(14) To construct, reconstruct, extend, and maintain district heating systems.
(15) To construct, reconstruct, alter, extend, operate, maintain, and promote fire protection
systems in existing buildings, but only upon a petition pursuant to section 429.031, subdivision 3.
(16) To acquire, construct, reconstruct, improve, alter, extend, and maintain highway sound
barriers.
(17) To improve, construct, reconstruct, extend, and maintain gas and electric distribution
facilities owned by a municipal gas or electric utility.
(18) To purchase, install, and maintain signs, posts, and other markers for addressing related
to the operation of enhanced 911 telephone service.
(19) To improve, construct, extend, and maintain facilities for Internet access and other
communications purposes, if the council finds that:
(i) the facilities are necessary to make available Internet access or other communications
services that are not and will not be available through other providers or the private market in the
reasonably foreseeable future; and
(ii) the service to be provided by the facilities will not compete with service provided by
private entities.
(20) To assess affected property owners for all or a portion of the costs agreed to with an
electric utility, telecommunications carrier, or cable system operator to bury or alter a new or
existing distribution system within the public right-of-way that exceeds the utility's design and
construction standards, or those set by law, tariff, or franchise, but only upon petition under
section 429.031, subdivision 3.
    Subd. 2. Combining improvements. An improvement on two or more streets or two or more
types of improvement in or on the same street or streets or different streets may be included in one
proceeding and conducted as one improvement.
    Subd. 3. Relation to charter and other laws. When any portion of the cost of an
improvement is defrayed by special assessments, the procedure prescribed in this chapter shall
be followed unless the council determines to proceed under charter provisions; but this chapter
does not prescribe the procedure to be followed by a municipality in making improvements
financed without the use of special assessments.
If the council determines to proceed under charter provisions for special assessments, such
provisions shall be deemed to include a requirement that notices of proposed assessments inform
property owners of the procedures they must follow under the charter in order to appeal the
assessments to district court. The notices shall also inform property owners of the provisions of
sections 435.193 to 435.195 and the existence of any deferment procedure established pursuant
thereto in the municipality.
Charter provisions shall also be deemed to require that when the council determines to make
any improvement, it shall let the contract for all or part of the work, or order all or part of the
work done by day labor or otherwise as may be authorized by the charter, no later than one year
after the adoption of the resolution ordering such improvement, unless a different time limit is
specifically stated in the resolution ordering the improvement.
History: 1953 c 398 s 2; 1965 c 877 s 1; 1971 c 617 s 5; 1973 c 201 s 1; 1974 c 233 s 2;
1974 c 314 s 1; 1976 c 195 s 1; 1978 c 518 s 1; 1979 c 330 s 2; 1981 c 334 s 5; 1984 c 548 s 4;
1984 c 582 s 3; 1984 c 591 s 2; 1984 c 633 s 2; 1987 c 138 s 2; 1997 c 219 s 5; 2000 c 490 art 5 s
31; 2000 c 493 s 5; 2005 c 67 s 1
429.03 [Repealed, 1953 c 398 s 13 subd 1]
429.031 PRELIMINARY PLANS, HEARINGS.
    Subdivision 1. Preparation of plans, notice of hearing. (a) Before the municipality awards
a contract for an improvement or orders it made by day labor, or before the municipality may
assess any portion of the cost of an improvement to be made under a cooperative agreement
with the state or another political subdivision for sharing the cost of making the improvement,
the council shall hold a public hearing on the proposed improvement following two publications
in the newspaper of a notice stating the time and place of the hearing, the general nature of the
improvement, the estimated cost, and the area proposed to be assessed. The two publications must
be a week apart, and the hearing must be at least three days after the second publication. Not less
than ten days before the hearing, notice of the hearing must also be mailed to the owner of each
parcel within the area proposed to be assessed and must contain a statement that a reasonable
estimate of the impact of the assessment will be available at the hearing, but failure to give mailed
notice or any defects in the notice does not invalidate the proceedings. For the purpose of giving
mailed notice, owners are those shown as owners on the records of the county auditor or, in any
county where tax statements are mailed by the county treasurer, on the records of the county
treasurer; but other appropriate records may be used for this purpose. For properties that are tax
exempt or subject to taxation on a gross earnings basis and are not listed on the records of the
county auditor or the county treasurer, the owners may be ascertained by any practicable means,
and mailed notice must be given them as provided in this subdivision.
(b) Before the adoption of a resolution ordering the improvement, the council shall secure
from the city engineer or some other competent person of its selection a report advising it in
a preliminary way as to whether the proposed improvement is necessary, cost-effective, and
feasible and as to whether it should best be made as proposed or in connection with some
other improvement. The report must also include the estimated cost of the improvement as
recommended. A reasonable estimate of the total amount to be assessed, and a description of the
methodology used to calculate individual assessments for affected parcels, must be available at
the hearing. No error or omission in the report invalidates the proceeding unless it materially
prejudices the interests of an owner.
(c) If the report is not prepared by an employee of a municipality, the compensation for
preparing the report under this subdivision must be based on the following factors:
(1) the time and labor required;
(2) the experience and knowledge of the preparer;
(3) the complexity and novelty of the problems involved; and
(4) the extent of the responsibilities assumed.
(d) The compensation must not be based primarily on a percentage of the estimated cost
of the improvement.
(e) The council may also take other steps prior to the hearing, including, among other things,
the preparation of plans and specifications and the advertisement for bids that will in its judgment
provide helpful information in determining the desirability and feasibility of the improvement.
(f) The hearing may be adjourned from time to time, and a resolution ordering the
improvement may be adopted at any time within six months after the date of the hearing by vote
of a majority of all members of the council when the improvement has been petitioned for by the
owners of not less than 35 percent in frontage of the real property abutting on the streets named
in the petition as the location of the improvement. When there has been no such petition, the
resolution may be adopted only by vote of four-fifths of all members of the council; provided
that if the mayor of the municipality is a member of the council but has no vote or votes only in
case of a tie, the mayor is not deemed to be a member for the purpose of determining a four-fifths
majority vote.
(g) The resolution ordering the improvement may reduce, but not increase, the extent of the
improvement as stated in the notice of hearing.
    Subd. 2. Approval by park board or utilities commission. A resolution ordering a park
improvement may be adopted only by a four-fifths vote of the council and shall also be approved
by the park board, if there is one; provided, that if the mayor of the municipality is a member of
the council but has no vote or votes only in case of a tie, the mayor shall not be deemed to be
a member for the purpose of determining such four-fifths majority vote. A resolution ordering
an improvement of the water, sewer, steam heating, street lighting or other facility over which a
utilities commission has jurisdiction shall also be approved by the utilities commission.
    Subd. 3. Petition by all owners. Whenever all owners of real property abutting upon any
street named as the location of any improvement shall petition the council to construct the
improvement and to assess the entire cost against their property, the council may, without a public
hearing, adopt a resolution determining such fact and ordering the improvement. The validity
of the resolution shall not be questioned by any taxpayer or property owner or the municipality
unless an action for that purpose is commenced within 30 days after adoption of the resolution
as provided in section 429.036. Nothing herein prevents any property owner from questioning
the amount or validity of the special assessment against the owner's property pursuant to section
429.081. In the case of a petition for the municipality to own and install a fire protection system,
a pedestrian skyway system, or on-site water contaminant improvements, the petition must
contain or be accompanied by an undertaking satisfactory to the city by the petitioner that the
petitioner will grant the municipality the necessary property interest in the building to permit
the city to enter upon the property and the building to construct, maintain, and operate the fire
protection system, pedestrian skyway system, or on-site water contaminant improvements. In
the case of a petition for the installation of a privately owned fire protection system, a privately
owned pedestrian skyway system, or privately owned on-site water contaminant improvements,
the petition shall contain the plans and specifications for the improvement, the estimated cost
of the improvement and a statement indicating whether the city or the owner will contract for
the construction of the improvement. If the owner is contracting for the construction of the
improvement, the city shall not approve the petition until it has reviewed and approved the plans,
specifications, and cost estimates contained in the petition. The construction cost financed under
section 429.091 shall not exceed the amount of the cost estimate contained in the petition.
In the case of a petition for the installation of a fire protection system, a pedestrian skyway
system, or on-site water contaminant improvements, the petitioner may request abandonment
of the improvement at any time after it has been ordered pursuant to subdivision 1 and before
contracts have been awarded for the construction of the improvement under section 429.041,
subdivision 2
. If such a request is received, the city council shall abandon the proceedings but in
such case the petitioner shall reimburse the city for any and all expenses incurred by the city in
connection with the improvement.
History: 1953 c 398 s 3; 1955 c 811 s 1; 1957 c 430 s 1; 1961 c 525 s 1,2; 1963 c 771 s 1;
1965 c 877 s 2; 1967 c 57 s 1,2; 1973 c 123 art 5 s 7; 1984 c 548 s 5; 1984 c 582 s 4; 1984 c 591
s 3; 1984 c 633 s 3; 1986 c 444; 1994 c 614 s 6; 1996 c 402 s 1; 2000 c 490 art 5 s 32
429.035 IMPROVEMENTS, PETITION.
When any petition for the making of any improvement in any statutory city, town, or city of
the second, third, or fourth class, however organized, for the cost of which special assessments
may be, in whole or in part, levied therefor, is presented to the governing body of the municipality,
this body shall, by resolution, determine whether or not the petition has been signed by the
required percentage of owners of property affected thereby.
History: (1918-33) 1927 c 311 s 1; 1953 c 398 s 12; 1961 c 338 s 2; 1973 c 123 art 5 s 7
429.036 APPEAL FROM DETERMINATION OF LEGALITY OF PETITION.
Any person, being aggrieved by this determination, may appeal to the district court of the
county in which the property is located by serving upon the clerk of the municipality, within 30
days after the adoption and publication of the resolution, a notice of appeal briefly stating the
grounds of appeal and giving a bond in the penal sum of $250, in which the municipality shall be
named as obligee, to be approved by the clerk of the municipality, conditioned that the appellant
will duly prosecute the appeal, pay all costs and disbursements which may be adjudged against
the appellant, and abide by the order of the court. The clerk shall furnish the appellant a certified
copy of the petition, or any part thereof, on being paid by appellant of the proper charges therefor.
The appeal shall be placed upon the calendar of the next general term commencing more than 30
days after the date of serving the notice and filing the bond and shall be tried as are other appeals
in such cases. Unless reversed upon the appeal, the determination of the governing body as to the
sufficiency of the petition shall be final and conclusive.
History: (1918-34) 1927 c 311 s 2; 1986 c 444
429.04 [Repealed, 1953 c 398 s 13]
429.041 COUNCIL PROCEDURE.
    Subdivision 1. Plans and specifications, advertisement for bids. When the council
determines to make any improvement, it shall let the contract for all or part of the work, or order
all or part of the work done by day labor or otherwise as authorized by subdivision 2, no later than
one year after the adoption of the resolution ordering such improvement, unless a different time
limit is specifically stated in the resolution ordering the improvement. The council shall cause
plans and specifications of the improvement to be made, or if previously made, to be modified, if
necessary, and to be approved and filed with the clerk, and if the estimated cost exceeds $50,000,
shall advertise for bids for the improvement in the newspaper and such other papers and for such
length of time as it may deem advisable. If the estimated cost exceeds $100,000, publication shall
be made no less than three weeks before the last day for submission of bids once in the newspaper
and at least once in either a newspaper published in a city of the first class or a trade paper. To be
eligible as such a trade paper, a publication shall have all the qualifications of a legal newspaper
except that instead of the requirement that it shall contain general and local news, such trade
paper shall contain building and construction news of interest to contractors in this state, among
whom it shall have a general circulation. The advertisement shall specify the work to be done,
shall state the time when the bids will be publicly opened for consideration by the council, which
shall be not less than ten days after the first publication of the advertisement when the estimated
cost is less than $100,000 and not less than three weeks after such publication in other cases, and
shall state that no bids will be considered unless sealed and filed with the clerk and accompanied
by a cash deposit, cashier's check, bid bond, or certified check payable to the clerk, for such
percentage of the amount of the bid as the council may specify. In providing for the advertisement
for bids the council may direct that the bids shall be opened publicly by two or more designated
officers or agents of the municipality and tabulated in advance of the meeting at which they
are to be considered by the council. Nothing herein shall prevent the council from advertising
separately for various portions of the work involved in an improvement, or from itself, supplying
by such means as may be otherwise authorized by law, all or any part of the materials, supplies, or
equipment to be used in the improvement or from combining two or more improvements in a
single set of plans and specifications or a single contract.
    Subd. 2. Contracts; day labor. In contracting for an improvement, the council shall require
the execution of one or more written contracts and bonds, conditioned as required by law. The
council shall award the contract to the lowest responsible bidder or it may reject all bids. If
any bidder to whom a contract is awarded fails to enter promptly into a written contract and to
furnish the required bond, the defaulting bidder shall forfeit to the municipality the amount
of the defaulter's cash deposit, cashier's check, bid bond, or certified check, and the council
may thereupon award the contract to the next lowest responsible bidder. When it appears to the
council that the cost of the entire work projected will be less than $50,000, or whenever no bid is
submitted after proper advertisement or the only bids submitted are higher than the engineer's
estimate, the council may advertise for new bids or, without advertising for bids, directly purchase
the materials for the work and do it by the employment of day labor or in any other manner the
council considers proper. The council may have the work supervised by the city engineer or other
qualified person but shall have the work supervised by a registered engineer if done by day labor
and it appears to the council that the entire cost of all work and materials for the improvement will
be more than $25,000. In case of improper construction or unreasonable delay in the prosecution
of the work by the contractor, the council may order and cause the suspension of the work at any
time and relet the contract, or order a reconstruction of any portion of the work improperly done,
and where the cost of completion or reconstruction necessary will be less than $50,000, the
council may do it by the employment of day labor.
    Subd. 3. Day labor; detailed report. When the council has performed construction work by
day labor, it shall cause a detailed report to be filed with the clerk and certified by the registered
engineer or other person in charge, if there is no registered engineer. The report shall show:
(a) the complete cost of the construction;
(b) final quantities of the various units of work done;
(c) materials furnished for the project and the cost of each item thereof;
(d) cost of labor, cost of equipment hired, and supervisory costs.
The report shall have attached a certificate by the registered engineer or other person in
charge that the work was done according to the plans and specifications, or, if there were any
deviations from them, an itemized statement of those deviations.
    Subd. 4. Alternate procedure on street improvements. As to any improvement or
improvements consisting of grading, graveling, or bituminous surfacing of streets and alleys, the
council may proceed in the manner provided in this chapter, except that it may
(1) order the work done by day labor, regardless of the estimated cost of such improvement
or improvements, and
(2) use municipal equipment or hire equipment and purchase materials for all such
improvements to be done by day labor in any 12-month period by advertising once therefor, such
advertisement to call for bids for the furnishing of equipment, if the municipality does not use
its own equipment, and for materials at unit prices based on the quantities which the council
estimates will be required.
(3) contract at one time on a unit price basis for part or all of the street improvements to
be constructed by the municipality during the current year, including improvements which may
thereafter be ordered constructed.
    Subd. 5. Cooperation with state or local government. When an improvement is made
under a cooperative agreement with the state or another political subdivision by the terms of
which the state or other subdivision is to construct or contract to construct the improvement, it
shall not be necessary to comply with subdivisions 1 and 2.
    Subd. 6. Percentage payment on engineer's estimate. In case the contractor properly
performs the work, the council shall, from month to month before completion of the work, pay
the contractor not to exceed 95 percent of the amount already earned under the contract, upon
the estimate of the engineer or other competent person selected by the council, and the contract
shall so provide, and shall further agree that when the work is 95 percent or more completed
upon the recommendation of the engineer such portions of the retained price shall be released
as the governing body of the municipality determines are not required to be retained to protect
the municipality's interest in satisfactory completion of the contract. Failure to pay any amount
due and payable under the terms of the contract within 30 days of a monthly estimate or 90
days after the final estimate of the amount earned shall obligate the municipality to pay to the
contractor simple interest on the past due amount at an annual rate equal to the monthly index of
long term United States bond yields for the month prior to the month in which this obligation is
incurred plus an additional one percent per annum. Interest shall not be imposed with respect to
any amount which a municipality may legally withhold as a result of breach of contract or other
contractual claim or if the delay is caused by the contractor.
    Subd. 7. Modification of contracts. After work has been commenced on an improvement
undertaken pursuant to a contract awarded on a unit price basis the council may, without
advertising for bids, authorize changes in the contract so as to include additional units of work at
the same unit price if the cost of the additional work does not exceed 25 percent of the original
contract price. Original contract price means that figure determined by multiplying the estimated
number of units required by the unit price.
History: 1953 c 398 s 4; 1957 c 430 s 2,3; 1961 c 525 s 3,4; 1973 c 123 art 5 s 7; 1976 c
156 s 1; 1977 c 278 s 1; 1978 c 518 s 2; 1980 c 464 s 8; 1985 c 174 s 3; 1986 c 444; 1993
c 38 s 1,2; 2001 c 5 s 1,2; 2004 c 278 s 6,7
429.05 [Repealed, 1953 c 398 s 13 subd 1]
429.051 APPORTIONMENT OF COST.
The cost of any improvement, or any part thereof, may be assessed upon property benefited
by the improvement, based upon the benefits received, whether or not the property abuts on
the improvement and whether or not any part of the cost of the improvement is paid from the
county state-aid highway fund, the municipal state-aid street fund, or the trunk highway fund.
The area assessed may be less than but may not exceed the area proposed to be assessed as stated
in the notice of hearing on the improvement, except as provided below. The municipality may
pay such portion of the cost of the improvement as the council may determine from general ad
valorem tax levies or from other revenues or funds of the municipality available for the purpose.
The municipality may subsequently reimburse itself for all or any of the portion of the cost of a
water, storm sewer, or sanitary sewer improvement so paid by levying additional assessments
upon any properties abutting on but not previously assessed for the improvement, on notice and
hearing as provided for the assessments initially made. To the extent that such an improvement
benefits nonabutting properties which may be served by the improvement when one or more
later extensions or improvements are made but which are not initially assessed therefor, the
municipality may also reimburse itself by adding all or any of the portion of the cost so paid to the
assessments levied for any of such later extensions or improvements, provided that notice that
such additional amount will be assessed is included in the notice of hearing on the making of
such extensions or improvements. The additional assessments herein authorized may be made
whether or not the properties assessed were included in the area described in the notice of hearing
on the making of the original improvement.
In any city of the fourth class electing to proceed under a home rule charter as provided in
this chapter, which charter provides for a board of water commissioners and authorizes such board
to assess a water frontage tax to defray the cost of construction of water mains, such board may
assess the tax based upon the benefits received and without regard to any charter limitation on the
amount that may be assessed for each lineal foot of property abutting on the water main. The
water frontage tax shall be imposed according to the procedure and, except as herein provided,
subject to the limitations of the charter of the city.
History: 1953 c 398 s 5; 1955 c 842 s 1; 1957 c 40 s 1; 1959 c 490 s 1; 1961 c 286 s 1
429.052 STREET OR ROAD IMPROVEMENTS OUTSIDE MUNICIPAL BOUNDARIES.
A municipality may construct street or road improvements outside its jurisdiction with the
consent of the affected township, or if the property is located in unorganized territory, the county.
When property is brought within the corporate limits of the municipality, the municipality may
subsequently reimburse itself for all or any portion of the cost of the improvement for which
municipal funds have been expended, by levying an assessment upon any property abutting on,
but not previously assessed for, the improvement. No assessment may be so levied unless the
property to be assessed was given notice and hearing of the improvements under section 429.031
at the time the improvement was ordered, and subsequently in accordance with the notice,
hearing, and appeal rights, provided for under sections 429.061 and 429.081.
History: 2005 c 152 art 1 s 12
429.06 [Repealed, 1953 c 398 s 13 subd 1]
429.061 ASSESSMENT PROCEDURE.
    Subdivision 1. Calculation, notice. At any time after the expense incurred or to be incurred
in making an improvement shall be calculated under the direction of the council, the council
shall determine by resolution the amount of the total expense the municipality will pay, other
than the amount, if any, which it will pay as a property owner, and the amount to be assessed. If a
county proposes to assess within the boundaries of a city for a county state-aid highway or county
highway, including curbs, gutters, and storm sewers, the resolution must include the portion of
the cost proposed to be assessed within the city. The county shall forward the resolution to the
city and it may not proceed with the assessment procedure nor may the county allocate any
cost under this section for property within the city unless the city council adopts the resolution
approving the assessment. Thereupon the clerk, with the assistance of the engineer or other
qualified person selected by the council, shall calculate the proper amount to be specially assessed
for the improvement against every assessable lot, piece or parcel of land, without regard to cash
valuation, in accordance with the provisions of section 429.051. The proposed assessment roll
shall be filed with the clerk and be open to public inspection. The clerk shall thereupon, under the
council's direction, publish notice that the council will meet to consider the proposed assessment.
Such notice shall be published in the newspaper at least once and shall be mailed to the owner of
each parcel described in the assessment roll. For the purpose of giving mailed notice under this
subdivision, owners shall be those shown to be such on the records of the county auditor or, in
any county where tax statements are mailed by the county treasurer, on the records of the county
treasurer; but other appropriate records may be used for this purpose. Such publication and mailing
shall be no less than two weeks prior to such meeting of the council. Except as to the owners of tax
exempt property or property taxes on a gross earnings basis, every property owner whose name
does not appear on the records of the county auditor or the county treasurer shall be deemed to
have waived such mailed notice unless the owner has requested in writing that the county auditor
or county treasurer, as the case may be, include the name on the records for such purpose. Such
notice shall state the date, time, and place of such meeting, the general nature of the improvement,
the area proposed to be assessed, the total amount of the proposed assessment, that the proposed
assessment roll is on the file with the clerk, and that written or oral objections thereto by any
property owner will be considered. The notice must also state that no appeal may be taken as to
the amount of any assessment adopted pursuant to subdivision 2, unless a written objection signed
by the affected property owner is filed with the municipal clerk prior to the assessment hearing or
presented to the presiding officer at the hearing. The notice shall also state that an owner may
appeal an assessment to district court pursuant to section 429.081 by serving notice of the appeal
upon the mayor or clerk of the municipality within 30 days after the adoption of the assessment
and filing such notice with the district court within ten days after service upon the mayor or clerk.
The notice shall also inform property owners of the provisions of sections 435.193 to 435.195
and the existence of any deferment procedure established pursuant thereto in the municipality. In
addition, the notice mailed to the owner must state in clear language the following information:
(1) the amount to be specially assessed against that particular lot, piece, or parcel of land;
(2) adoption by the council of the proposed assessment may be taken at the hearing;
(3) the right of the property owner to prepay the entire assessment and the person to whom
prepayment must be made;
(4) whether partial prepayment of the assessment has been authorized by ordinance;
(5) the time within which prepayment may be made without the assessment of interest; and
(6) the rate of interest to be accrued if the assessment is not prepaid within the required
time period.
    Subd. 2. Adoption; interest. At such meeting or at any adjournment thereof the council
shall hear and pass upon all objections to the proposed assessment, whether presented orally or in
writing. The council may amend the proposed assessment as to any parcel and by resolution adopt
the same as the special assessment against the lands named in the assessment roll. Notice of any
adjournment of the hearing shall be adequate if the minutes of the meeting so adjourned show the
time and place when and where the hearing is to be continued.
The council may consider any objection to the amount of a proposed assessment as to a
specific parcel of land at an adjourned hearing upon further notice to the affected property owner
as it deems advisable. At the adjourned hearing the council or a committee of it may hear further
written or oral testimony on behalf of the objecting property owner and may consider further
written or oral testimony from appropriate city officials and other witnesses as to the amount
of the assessment. The council or committee shall prepare a record of the proceedings at the
adjourned hearing and written findings as to the amount of the assessment. The amount of the
assessment as finally determined by the council shall become a part of the adopted assessment
roll. No appeal may be taken as to the amount of any assessment adopted under this section unless
written objection signed by the affected property owner is filed with the municipal clerk prior to
the assessment hearing or presented to the presiding officer at the hearing. All objections to the
assessments not received at the assessment hearing in the manner prescribed by this subdivision
are waived, unless the failure to object at the assessment hearing is due to a reasonable cause.
If the adopted assessment differs from the proposed assessment as to any particular lot, piece,
or parcel of land, the clerk must mail to the owner a notice stating the amount of the adopted
assessment. Owners must also be notified by mail of any changes adopted by the council in interest
rates or prepayment requirements from those contained in the notice of the proposed assessment.
The assessment, with accruing interest, shall be a lien upon all private and public property
included therein, from the date of the resolution adopting the assessment, concurrent with general
taxes; but the lien shall not be enforceable against public property as long as it is publicly
owned, and during such period the assessment shall be recoverable from the owner of such
property only in the manner and to the extent provided in section 435.19. Unless otherwise
provided in the resolution, all assessments shall be payable in equal annual installments extending
over such period, not exceeding 30 years, as the resolution determines, payable on the first
Monday in January in each year, but the number of installments need not be uniform for all
assessments included in a single assessment roll if a uniform criterion for determining the number
of installments is provided by the resolution. Assessments on property located in a targeted
neighborhood as defined in Laws 1987, chapter 386, article 6, section 4, may be payable in
variable annual installments if the resolution provides for a variable payment. The first installment
of each assessment shall be included in the first tax rolls completed after its adoption and shall
be payable in the same year as the taxes contained therein; except that the payment of the
first installment of any assessment levied upon unimproved property may be deferred until a
designated future year, or until the platting of the property or the construction of improvements
thereon, upon such terms and conditions and based upon such standards and criteria as may be
provided by resolution of the council. If special assessments against the property have been
deferred pursuant to this subdivision, the governmental unit shall record with the county recorder
in the county in which the property is located a certificate containing the legal description of the
affected property and of the amount deferred. In any event, every assessment the payment of
which is so deferred, when it becomes payable, shall be divided into a number of installments
such that the last installment thereof will be payable not more than 30 years after the levy of the
assessment. All assessments shall bear interest at such rate as the resolution determines. To the
first installment of each assessment shall be added interest on the entire assessment from a date
specified in the resolution levying the assessment, not earlier than the date of the resolution,
until December 31 of the year in which the first installment is payable, and to each subsequent
installment shall be added interest for one year on all unpaid installments; or alternatively, any
assessment may be made payable in equal annual installments including principal and interest,
each in the amount annually required to pay the principal over such period with interest at such
rate as the resolution determines, not exceeding the maximum period and rate specified above.
In the latter event no prepayment shall be accepted under subdivision 3 without payment of all
installments due to and including December 31 of the year of prepayment, together with the
original principal amount reduced only by the amounts of principal included in such installments,
computed on an annual amortization basis. When payment of an assessment is deferred, as
authorized in this subdivision, interest thereon for the period of deferment may be made payable
annually at the same times as the principal installments of the assessment would have been
payable if not deferred; or interest for this period may be added to the principal amount of the
assessment when it becomes payable; or, if so provided in the resolution levying the assessment,
interest thereon to December 31 of the year before the first installment is payable may be forgiven.
    Subd. 3. Transmitted to auditor, prepayment. After the adoption of the assessment, the
clerk shall transmit a certified duplicate of the assessment roll with each installment, including
interest, set forth separately to the county auditor of the county to be extended on the proper
tax lists of the county; but in lieu of such certification, the council may in its discretion direct
the clerk to file all assessment rolls in the clerk's office and to certify annually to the county
auditor, on or before November 30 in each year, the total amount of installments of and interest on
assessments on each parcel of land in the municipality which are to become due in the following
year. If any installment and interest has not been so certified prior to the year when it is due, the
clerk shall forthwith certify the same to the county auditor for collection in the then succeeding
year; and if the municipality has issued improvement warrants to finance the improvement, it
shall pay out of its general funds into the fund of the improvement interest on the then unpaid
balance of the assessment for the year or years during which the collection of such installment
is postponed. All assessments and interest thereon shall be collected and paid over in the same
manner as other municipal taxes. The owner of any property so assessed may, at any time prior
to certification of the assessment or the first installment thereof to the county auditor, pay the
whole of the assessment on such property, with interest accrued to the date of payment, to the
municipal treasurer, except that no interest shall be charged if the entire assessment is paid within
30 days from the adoption thereof; and, except as hereinafter provided, the owner may at any
time prior to November 15 of any year, prepay to the treasurer of the municipality having levied
said assessments, the whole assessment remaining due with interest accrued to December 31 of
the year in which said prepayment is made. If the assessment roll is retained by the municipal
clerk, the installment and interest in process of collection on the current tax list shall be paid to
the county treasurer and the remaining principal balance of the assessment, if paid, shall be paid
to the municipal treasurer. The council may by ordinance authorize the partial prepayment of
assessments, in such manner as the ordinance may provide, prior to certification of the assessment
or the first installment thereof to the county auditor.
    Subd. 4. Collection, tax exempt property. On the confirmation of any assessments the clerk
shall mail to the county auditor a notice specifying the amount payable by any county, to the clerk
or recorder of any other political subdivision a notice specifying the amount payable by the
political subdivision and to the owner of any right-of-way, at its principal office in the state, a
notice specifying the amount payable on account of any right-of-way. The amount payable on
account of any right-of-way or public property shall be payable to the municipality's treasurer
and shall be payable in like installments and with like interest and penalties as provided for in
reference to the installments payable on account of assessable real property, except that interest
accruing shall not begin to run until the notice provided in this subdivision has been properly
given and 30 days thereafter have elapsed. The governing body of any such political subdivision
shall provide for the payment of these amounts and shall take appropriate action to that end. If the
assessment is not paid in a single installment, the municipal treasurer shall annually mail to the
owner of any right-of-way and, as long as the property is publicly owned, to the owner of any
public property a notice stating that an installment is due and should be paid to the municipal
treasurer of the municipality which levied the special assessment. The municipality may collect
the amount due on account of the right-of-way of any railroad or privately owned public utility
by distress and sale of personal property in the manner provided by law in case of taxes levied
upon personal property or by suit brought to enforce the collection of this indebtedness unless a
different method of collecting such amounts is provided for by any contract between the owner of
any right-of-way and the municipality.
    Subd. 5. Special assessments; administrative expenses. Notwithstanding any general or
special law to the contrary, a municipality shall pay to the county auditor all administrative
expenses incurred by the county under subdivision 3 for each special assessment of any local
improvement certified by the municipality to the county auditor.
History: 1953 c 398 s 6; 1955 c 811 s 2; 1957 c 510 s 2; 1957 c 699 s 1; 1961 c 77 s 1;
1961 c 525 s 5-7; 1963 c 771 s 2-4; 1965 c 877 s 3; 1969 c 1045 s 1; 1969 c 1095 s 1; 1974 c
314 s 2; 1976 c 195 s 2; 1976 c 324 s 18; 1980 c 509 s 164; 1980 c 560 s 5; 1980 c 607 art 11 s
1,2; 1984 c 478 s 2; 1984 c 543 s 50; 1Sp1985 c 16 art 1 s 3; 1986 c 315 s 2; 1986 c 444; 1986
c 473 s 10,11; 1987 c 344 s 3; 1987 c 386 art 6 s 2; 1991 c 342 s 8; 1993 c 375 art 5 s 33;
art 17 s 17; 2005 c 4 s 106
429.07 [Repealed, 1953 c 398 s 13]
429.071 SUPPLEMENTAL ASSESSMENTS; REASSESSMENT.
    Subdivision 1. Supplemental assessments. The council may make supplemental
assessments to correct omissions, errors, or mistakes in the assessment relating to the total cost
of the improvement or any other particular. A supplemental assessment shall be preceded by
personal or mailed notice to the owner of each parcel included in the supplemental assessment
and a hearing as provided for the original assessment.
    Subd. 2. Reassessment. When an assessment is, for any reason whatever, set aside by a court
of competent jurisdiction as to any parcel or parcels of land, or in event the council finds that the
assessment or any part thereof is excessive or determines on advice of the municipal attorney
that the assessment or proposed assessment or any part thereof is or may be invalid for any
reason, the council may, upon notice and hearing as provided for the original assessment, make a
reassessment or a new assessment as to such parcel or parcels.
    Subd. 3. Reapportionment upon land division. When a tract of land against which a
special assessment has been levied is thereafter divided or subdivided by plat or otherwise, the
council may, on application of the owner of any part of the tract or on its own motion equitably
apportion among the various lots or parcels in the tract all the installments of the assessment
against the tract remaining unpaid and not then due if it determines that such apportionment will
not materially impair collection of the unpaid balance of the original assessment against the tract.
The council may, and if the special assessment has been pledged to the payment of improvement
warrants shall, require the owner or owners, as a condition of such apportionment, to furnish a
satisfactory surety bond fully protecting the municipality against any loss resulting from failure to
pay any part of the reapportionment assessment when due. Notice of such apportionment and of
the right to appeal shall be mailed to or personally served upon all owners of any part of the tract.
Within 30 days after the mailing or service of the notice of such apportionment any such owner
may appeal as provided in section 429.081.
    Subd. 4. Reassessment, tax-forfeited land. When a parcel of tax-forfeited land is returned
to private ownership and the parcel is benefited by an improvement for which special assessments
were canceled because of the forfeiture, the municipality that made the improvement may,
upon notice and hearing as provided for the original assessment, make a reassessment or a new
assessment as to the parcel in an amount equal to the amount remaining unpaid on the original
assessment.
History: 1953 c 398 s 7; 1957 c 366 s 1; 1961 c 525 s 8; 1965 c 877 s 4; 1976 c 259 s 1
429.08 [Repealed, 1953 c 398 s 13 subd 1]
429.081 APPEAL TO DISTRICT COURT.
Within 30 days after the adoption of the assessment, any person aggrieved, who is not
precluded by failure to object prior to or at the assessment hearing, or whose failure to so object is
due to a reasonable cause, may appeal to the district court by serving a notice upon the mayor or
clerk of the municipality. The notice shall be filed with the court administrator of the district court
within ten days after its service. The municipal clerk shall furnish appellant a certified copy of
objections filed in the assessment proceedings, the assessment roll or part complained of, and all
papers necessary to present the appeal. The appeal shall be placed upon the calendar of the next
general term commencing more than five days after the date of serving the notice and shall be
tried as other appeals in such cases. The court shall either affirm the assessment or set it aside and
order a reassessment as provided in section 429.071, subdivision 2. If appellant does not prevail
upon the appeal, the costs incurred shall be taxed by the court and judgment entered therefor. All
objections to the assessment shall be deemed waived unless presented on such appeal. This section
provides the exclusive method of appeal from a special assessment levied pursuant to this chapter.
History: 1953 c 398 s 8; 1961 c 525 s 9; 1978 c 749 s 2; 1980 c 607 art 11 s 3; 1Sp1986 c 3
art 1 s 82
429.09 [Repealed, 1953 c 398 s 13]
429.091 FINANCING.
    Subdivision 1. Authority. At any time after one or more improvements are ordered as
contemplated in section 429.031, the council may issue obligations in such amount as it deems
necessary to defray in whole or in part the expense incurred and estimated to be incurred in
making the improvement or improvements, including every item of cost of the kinds authorized
in section 475.65. In the event of any omission, error, or mistake in any of the proceedings
required precedent to the ordering of any improvement, the validity of the obligations shall
not be affected thereby. The council shall cause all further actions and proceedings to be taken
with due diligence that are required for the construction of each improvement financed wholly
or partly from the proceeds of obligations issued hereunder, and for the final and valid levy of
special assessments and the appropriation of any other funds needed to pay the obligations and
interest thereon when due.
    Subd. 2. Types of obligations permitted. The council may by resolution adopted prior to
the sale of obligations pledge the full faith, credit, and taxing power of the municipality for the
payment of the principal and interest. Such obligations shall be called improvement bonds and the
council shall pay the principal and interest out of any fund of the municipality when the amount
credited to the specified fund is insufficient for the purpose and shall each year levy a sufficient
amount to take care of accumulated or anticipated deficiencies, which levy shall not be subject to
any statutory or charter tax limitation. Obligations for the payment of which the full faith and
credit of the municipality is not pledged shall be called assessment revenue notes or, in the case
of bonds for fire protection, revenue bonds and shall contain a promise to pay solely out of the
proper special fund or funds pledged to their payment. It shall be the duty of the municipal
treasurer to pay maturing principal and interest on warrants or revenue bonds out of funds on
hand in the proper funds and not otherwise.
    Subd. 3. Method of issuance. All obligations shall be issued in accordance with the
provisions of chapter 475, except as provided in this subdivision.
An election shall be required for bonds if less than 20 percent of the cost of the improvement
to the municipality is to be assessed against benefited property.
If the full faith, credit, and taxing power of the municipality is not pledged and the bonds are
issued to finance a fire protection system, a public sale shall not be required and the obligations
may
(a) mature at any time or times within 30 years from date of issue; or 40 years or the
useful life of the asset, whichever is less, for municipal water and wastewater treatment systems
and essential community facilities financed or guaranteed by the United States Department of
Agriculture;
(b) mature in the amount or amounts,
(c) be sold at a price equal to the percentage of their par value, plus accrued interest, and
(d) bear interest at the rate or rates,
as agreed by the purchaser and the municipality, notwithstanding any limitation of interest rate or
cost or of the amounts of annual maturities contained in any other law.
The maturities shall be such as in the opinion of the council are warranted by the anticipated
collections of assessments and ad valorem levies for the municipality's share of the cost; except
that the council may in its discretion issue and sell temporary improvement bonds maturing and
subject to further conditions as set forth in subdivision 5. All obligations shall state upon their
face the purpose of the issue and the fund from which they are payable. The amount of any
obligations issued hereunder shall not be included in determining the net indebtedness of any
municipality under the provisions of any law limiting such indebtedness.
    Subd. 4. Funds. The proceeds from the sale of each issue of obligations and from collections
of special assessments levied and other moneys appropriated for each improvement to be financed
wholly or partly from such proceeds shall be credited to a separate construction fund which shall
be used solely to defray expenses of such improvements and payment of principal and interest
due upon the obligations prior to completion and payment of all costs of the improvements so
financed. Any balance of the proceeds of bonds remaining therein may be used to pay the cost, in
whole or in part, of any other improvement instituted pursuant to this chapter. A separate account
shall be maintained in the construction fund to record expenditures for each improvement, and
when the total cost thereof has been paid all subsequent collections of special assessments levied
for the improvement shall be credited and paid into the debt service fund for the obligations issued
to finance the improvement, as provided in section 475.61. Any taxes levied for improvements
financed by an issue of obligations shall be credited directly to the debt service fund.
    Subd. 5. Temporary improvement bonds. In anticipation of the issuance of improvement
bonds, the council may by resolution issue and sell temporary improvement bonds maturing
within not more than three years from their date of issue to pay any part or all of the cost of
one or more improvements. To the extent that the principal of and interest on the temporary
improvement bonds cannot be paid when due from receipts of special assessments, taxes, or other
funds appropriated for the purpose, they shall be paid from the proceeds of improvement bonds
or additional temporary improvement bonds which the council shall offer for sale in advance of
their maturity but the indebtedness funded by an issue of temporary improvement bonds shall
not be extended by the issue of additional temporary improvement bonds for more than six years
from the date of the first issue. The holders of any temporary improvement bonds shall have
and may enforce, by mandamus or other appropriate proceedings, all rights respecting the levy
and collection of sufficient special assessments and taxes to pay the cost of the improvements
financed by them which are granted by law to holders of improvement bonds, except the right to
require the levies to be collected prior to the maturity of the temporary improvement bonds. If
any temporary improvement bonds are not paid in full at maturity, the holders may require the
issuance in exchange for them, at par, of new temporary improvement bonds maturing within
one year from their date of issue (but not subject to any other maturity limitation), and bearing
interest at the maximum rate permitted by law.
    Subd. 6. Investment of other municipal funds. Funds of a municipality may be invested in
its temporary improvement bonds in accordance with the provisions of section 118A.04, and may
be purchased upon their initial issue, but shall be purchased only from funds which the council
determines will not be required for other purposes before the maturity date, and shall be resold
before maturity only in case of emergency. If purchased from a debt service fund securing other
bonds, the holders of those bonds may enforce the municipality's obligations on the temporary
improvement bonds in the same manner as if they held the temporary improvement bonds.
    Subd. 7. General obligation temporary improvement bonds. The council may by
resolution adopted prior to the sale of any temporary improvement bonds pledge the full faith,
credit, and taxing power of the municipality for the payment of the principal and interest, in
addition to all provisions made for their security in subdivision 5. In this event the bonds shall
be designated as general obligation temporary improvement bonds, and the council shall levy
taxes for their payment in accordance with section 475.61. Proceeds of improvement bonds or
temporary improvement bonds not yet sold may be treated as pledged revenues, in reduction of
the tax otherwise required by section 475.61 to be levied prior to delivery of the obligations.
    Subd. 7a. Revolving fund bonds. The council may by resolution establish a revolving fund
for the payment of the costs of any improvement or any waterworks systems, sewer systems, or
storm sewer systems described in section 444.075, the costs of facilities to maintain streets and
water, sewer, and storm sewer systems and for the payment of any obligations issued to pay the
costs of the facilities and systems referred to in this subdivision or to refund obligations issued for
those purposes. The council may create within the revolving fund a separate construction account
into which the municipality may deposit the proceeds of any obligations payable from the fund,
the proceeds of any special assessments collected with respect to any improvement, any net
revenues of a waterworks, sewer system, or storm sewer system described in section 444.075
or any other available funds of the municipality appropriated to it. Amounts on deposit in the
construction account may be used to pay the costs of any improvement or any waterworks, sewer
system, or storm sewer system described in section 444.075 or any street or water, sewer, or storm
sewer maintenance facilities. No funds may be expended for an improvement unless at least 20
percent of the costs of each such improvement is to be assessed against benefited property. No
funds may be expended for a waterworks, sewer system, or storm sewer system, other than a
sewer system described in section 115.46, or maintenance facilities unless the council estimates
that the costs will be recovered from the net revenues of the system or any combined waterworks,
sewer systems, or storm sewer systems operated by the municipality. The council may also create
a separate debt service account within the revolving fund for the payment of principal of and
interest on any obligations payable therefrom. Notwithstanding subdivision 4, the council is not
required to pledge any particular assessments or other revenues to the payment of the obligations.
Collections of special assessments or net revenues may be deposited in either the construction
account or the debt service account as the council or an officer designated by the council may
determine, having due regard for anticipated collections of special assessments and net revenues
from improvements or waterworks, sewer systems, or storm sewer systems financed in whole or
in part from the construction account, and taxes levied for the payment of the obligations. The
council may issue obligations that are payable primarily from the debt service account for the
purpose of providing funds to defray in whole or in part any expenses incurred or estimated to
be incurred in making the improvement or improvements or in constructing the waterworks,
sewer system, or storm sewer system, including every item of cost of the kinds authorized by
section 475.65, and street and water, sewer, and storm sewer maintenance facilities or to refund
obligations previously issued under this section or section 115.46 or 444.075. The obligations
may be general obligations to which the full faith and credit of the municipality are pledged. If the
special assessments to be levied and net revenues estimated to be available for their payment are
estimated to be at least 20 percent of the principal amount of the obligations, the obligations may
be issued without an election and shall not be included in determining the net indebtedness of the
municipality under the provisions of any law limiting net indebtedness. The cost of a maintenance
facility that may be financed under this subdivision is limited only to the portion of the facility
that is fairly allocable to the maintenance of streets and water, sewer, and storm sewer systems.
    Subd. 8. When Bond Allocation Act applies. Sections 474A.01 to 474A.21 apply to any
issuance of obligations under this section which are subject to limitation under a federal tax law
as defined in section 474A.02, subdivision 8.
History: 1953 c 398 s 9; 1955 c 811 s 3-5; 1957 c 385 s 1; 1965 c 877 s 5; 1976 c 324 s
19-21; 1981 c 171 s 1-4; 1984 c 548 s 6; 1984 c 582 s 5,6,23; 1984 c 591 s 4,5; 1984 c 633 s 4;
1Sp1985 c 14 art 8 s 63; 1986 c 465 art 1 s 3; 1987 c 344 s 4,5; 1992 c 545 art 2 s 4; 1996 c 297
s 1; 1996 c 399 art 2 s 12; 2000 c 260 s 57; 2001 c 214 s 11
429.10 [Repealed, 1953 c 398 s 13]
429.101 UNPAID SPECIAL CHARGES MAY BE SPECIAL ASSESSMENTS.
    Subdivision 1. Ordinances. (a) In addition to any other method authorized by law or charter,
the governing body of any municipality may provide for the collection of unpaid special charges
for all or any part of the cost of:
(1) snow, ice, or rubbish removal from sidewalks;
(2) weed elimination from streets or private property;
(3) removal or elimination of public health or safety hazards from private property, excluding
any structure included under the provisions of sections 463.15 to 463.26;
(4) installation or repair of water service lines, street sprinkling or other dust treatment
of streets;
(5) the trimming and care of trees and the removal of unsound trees from any street;
(6) the treatment and removal of insect infested or diseased trees on private property, the
repair of sidewalks and alleys;
(7) the operation of a street lighting system;
(8) the operation and maintenance of a fire protection or a pedestrian skyway system;
(9) reinspections which find noncompliance after the due date for compliance with an order
to correct a municipal housing maintenance code violation;
(10) the recovery of any disbursements under section 504B.445, subdivision 4, clause (5),
including disbursements for payment of utility bills and other services, even if provided by
a third party, necessary to remedy violations as described in section 504B.445, subdivision 4,
clause (2); or
(11) [Repealed, 2004 c 275 s 5]
as a special assessment against the property benefited.
(b) The council may by ordinance adopt regulations consistent with this section to make
this authority effective, including, at the option of the council, provisions for placing primary
responsibility upon the property owner or occupant to do the work personally (except in the
case of street sprinkling or other dust treatment, alley repair, tree trimming, care, and removal
or the operation of a street lighting system) upon notice before the work is undertaken, and
for collection from the property owner or other person served of the charges when due before
unpaid charges are made a special assessment.
    Subd. 2. Procedure for assessment. Any special assessment levied under subdivision 1 shall
be payable in a single installment, or by up to ten equal annual installments as the council may
provide. With this exception, sections 429.061, 429.071, and 429.081 shall apply to assessments
made under this section.
    Subd. 3. Issuance of obligations. (a) After a contract for any of the work enumerated in
subdivision 1 has been let, or the work commenced, the council may issue obligations to defray
the expense of any such work financed in whole or in part by special charges and assessments
imposed upon benefited property under this section.
(b) Section 429.091 shall apply to such obligations with the following modifications:
(1) such obligations shall be payable not more than two years from the date of issuance;
(2) the amount of such obligations issued at one time in a municipality shall not exceed the
cost of such work during the ensuing six months as estimated by the council;
(3) a separate improvement fund shall be set up for each of the enumerated services referred
to in subdivision 1 and financed under this section.
(c) Proceeds of special charges as well as special assessments and taxes shall be credited
to such improvement fund.
History: 1953 c 398 s 10; 1955 c 811 s 6; 1963 c 771 s 5; 1965 c 323 s 2; 1973 c 337 s
1; 1974 c 340 s 1,2; 1984 c 548 s 7; 1984 c 582 s 7; 1984 c 591 s 6; 1984 c 633 s 5; 1986 c
444; 1Sp2003 c 21 art 11 s 29; 2004 c 275 s 2
429.11 [Repealed, 1953 c 398 s 13]
429.111 CHARTER PROVISIONS, EFFECT.
Any city operating under a home rule charter may proceed either under this chapter or
under its charter in making an improvement unless a home rule charter or amendment adopted
after April 17, 1953, provides for making such improvement under this chapter or under the
charter exclusively.
History: 1953 c 398 s 11; 1955 c 811 s 7; 1976 c 44 s 39
429.12-429.18 [Repealed, 1953 c 398 s 13]
429.185 [Repealed, 1949 c 314 s 3]
429.19 [Renumbered 429.035]
429.20 [Renumbered 429.036]
429.21-429.29 [Repealed, 1953 c 398 s 13]
429.30 [Renumbered 435.36, subdivision 1]
429.31 [Renumbered 435.36, subd 2]

Official Publication of the State of Minnesota
Revisor of Statutes