2007 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.
History: 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.
History: 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.
History: 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.
History: 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.
History: 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.
History: 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.
History: 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.
History: 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.
History: 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.
History: 1989 c 277 art 2 s 57