471.572 INFRASTRUCTURE REPLACEMENT RESERVE FUND.
Subdivision 1. Definitions.
For purposes of this section, the following terms have the
"Reserve fund" means the infrastructure replacement reserve fund.
"City" means a statutory or home rule charter city.
Subd. 2. Tax levy.
The governing body of a city may establish, by a two-thirds vote of
all its members, by ordinance or resolution a reserve fund and may annually levy a property
tax for the support of the fund. The proceeds of taxes levied for its support must be paid into
the reserve fund. Any other revenue from a source not required by law to be paid into another
fund for purposes other than those provided for the use of the reserve fund may be paid into the
fund. Before a tax is levied under this section, the city must publish in the official newspaper of
the city an initial resolution authorizing the tax levy. If within ten days after the publication a
petition is filed with the city clerk requesting an election on the tax levy signed by a number of
qualified voters greater than ten percent of the number who voted in the city at the last general
election, the tax may not be levied until the levy has been approved by a majority of the votes cast
on it at a regular or special election.
Subd. 3. Purposes.
The reserve fund may be used only for the replacement of streets,
bridges, curbs, gutters, sidewalks, trees, and storm sewers.
Subd. 4. Use of fund for a specific purpose.
If the city has established a reserve fund, it may
submit to the voters at a regular or special election the question of whether use of the fund should
be restricted to a specific improvement or type of capital improvement. If a majority of the votes
cast on the question are in favor of the limitation on the use of the reserve fund, it may be used
only for the purpose approved by the voters.
Subd. 5. Hearing; notice.
A reserve fund may not be established until after a public hearing
is held on the question. Notice of the time, place, and purpose of the hearing must be published
for two successive weeks in the official newspaper of the city. The second publication must be not
later than seven days before the date of the hearing.
Subd. 6. Termination of fund.
The city may terminate a reserve fund at any time in
the same manner as the fund was established. Upon termination of the fund any balance is
irrevocably appropriated to the debt service fund of the city to be used solely to reduce tax levies
for or bonded indebtedness of the city or, if the city has no bonded indebtedness, for capital
improvements authorized by this section.
History: 1986 c 465 art 2 s 14; 1988 c 419 s 1; 1Sp1989 c 1 art 5 s 37