Bill Text: MN SF607 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Municipalities street improvement districts authorization
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2013-03-21 - Comm report: To pass as amended and re-refer to Taxes [SF607 Detail]
Download: Minnesota-2013-SF607-Engrossed.html
1.2relating to municipalities; authorizing municipalities to establish street
1.3improvement districts and apportion street improvement fees within districts;
1.4requiring adoption of street improvement plan; authorizing collection of fees;
1.5proposing coding for new law in Minnesota Statutes, chapter 435.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [435.39] MUNICIPAL STREET IMPROVEMENT DISTRICTS.
1.8 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
1.9have the meanings given them.
1.10(b) "Governing body" means the city council of a municipality.
1.11(c) "Improvements" means construction, reconstruction, and facility upgrades
1.12involving: right-of-way acquisition; paving; curbs and gutters; bridges and culverts and
1.13their repair; milling; overlaying; drainage and storm sewers; excavation; base work;
1.14subgrade corrections; street lighting; traffic signals; signage; sidewalks; pavement
1.15markings; boulevard and easement restoration; impact mitigation; connection and
1.16reconnection of utilities; turn lanes; medians; street and alley returns; retaining walls;
1.17fences; lane additions; and fixed transit infrastructure, trails, or pathways. "Fixed transit
1.18infrastructure" does not include commuter rail rolling stock, light rail vehicles, or
1.19transit way buses; capital costs for park-and-ride facilities; feasibility studies, planning,
1.20alternative analyses, environmental studies, engineering, or construction of transit ways;
1.21or operating assistance for transit ways.
1.22(d) "Maintenance" means striping, seal coating, crack sealing, pavement repair,
1.23sidewalk maintenance, signal maintenance, street light maintenance, and signage.
1.24(e) "Municipal street" means a street, alley, or public way in which the municipality
1.25is the road authority with powers conferred by section 429.021.
2.1(f) "Municipality" means a home rule charter or statutory city.
2.2(g) "Street improvement district" means a geographic area designated by a
2.3municipality and located within the municipality within which street improvements and
2.4maintenance may be undertaken and financed according to this section.
2.5(h) "Unimproved parcel" means a parcel of land that abuts an unimproved municipal
2.6street and that is not served by municipal sewer or water utilities; or in the case of a parcel
2.7abutting an improved municipal street and served by municipal sewer or water utilities,
2.8the parcel contains a structure that has not previously been occupied.
2.9 Subd. 2. Authorization. A municipality may establish by ordinance municipal
2.10street improvement districts and may defray all or part of the total costs of municipal
2.11street improvements and maintenance by apportioning street improvement fees to all of
2.12the parcels located in the district. A street improvement district must not include any
2.13property already located in another street improvement district.
2.14 Subd. 3. Uniformity. The total costs of municipal street improvements and
2.15maintenance must be apportioned to all parcels or tracts of land located in the established
2.16street improvement district on a uniform basis within each classification of real estate.
2.17 Subd. 4. Adoption of plan. Before establishing a municipal street improvement
2.18district or authorizing a street improvement fee, a municipality must propose and adopt a
2.19street improvement plan that identifies the location of the municipal street improvement
2.20district and identifies and estimates the costs of the proposed improvements during the
2.21proposed period of collection of municipal street improvement fees, which must be for
2.22a period of at least five years and at most 20 years. Notice of a public hearing on the
2.23proposed plan must be given by mail to all affected landowners at least 30 days before
2.24the hearing and posted for at least 30 days before the hearing. At the public hearing, the
2.25governing body must present the plan and all affected landowners in attendance must have
2.26the opportunity to comment before the governing body considers adoption of the plan.
2.27 Subd. 5. Use of fees. Revenues from street improvement fees must be placed in
2.28a separate account and used only for projects located within the district and identified
2.29in the municipal street improvement plan.
2.30 Subd. 6. Collection; up to 20 years. (a) An ordinance adopted under this section
2.31must provide for billing and payment of the fee on a monthly, quarterly, or other basis
2.32as directed by the governing body. The governing body may collect municipal street
2.33improvement fees within a street improvement district for a maximum of 20 years.
2.34 (b) Fees that, as of October 15 of each year, have remained unpaid for at least 30
2.35days may be certified to the county auditor for collection as a special assessment payable
2.36in the following calendar year against the affected property.
3.1 Subd. 7. Improvement fee. A municipality may impose a municipal street
3.2improvement fee by ordinance. The ordinance must not be voted on or adopted until after
3.3public notice is provided and a public hearing is held in the same manner as provided in
3.4subdivision 4.
3.5 Subd. 8. Not exclusive means of financing improvements. The use of the
3.6municipal street improvement fee by a municipality does not restrict the municipality from
3.7imposing other measures to pay the costs of local street improvements or maintenance,
3.8except that a municipality must not impose special assessments for projects funded with
3.9street improvement fees.
3.10 Subd. 9. Undeveloped parcels; fees. A municipality may not impose a street
3.11improvement fee on any undeveloped parcel located within an established street
3.12improvement district until at least three years after either the date of substantial completion
3.13of the paving of the previous unimproved municipal street or the date which a previously
3.14unoccupied structure is first occupied, whichever is later.
3.15EFFECTIVE DATE.This section is effective July 1, 2013 and expires on June
3.1630, 2018, except as to municipal street improvement fees that were imposed before the
3.17expiration date. Municipal street improvement fees imposed before the expiration date
3.18continue until they expire by the terms of the original ordinance.
1.3improvement districts and apportion street improvement fees within districts;
1.4requiring adoption of street improvement plan; authorizing collection of fees;
1.5proposing coding for new law in Minnesota Statutes, chapter 435.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [435.39] MUNICIPAL STREET IMPROVEMENT DISTRICTS.
1.8 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
1.9have the meanings given them.
1.10(b) "Governing body" means the city council of a municipality.
1.11(c) "Improvements" means construction, reconstruction, and facility upgrades
1.12involving: right-of-way acquisition; paving; curbs and gutters; bridges and culverts and
1.13their repair; milling; overlaying; drainage and storm sewers; excavation; base work;
1.14subgrade corrections; street lighting; traffic signals; signage; sidewalks; pavement
1.15markings; boulevard and easement restoration; impact mitigation; connection and
1.16reconnection of utilities; turn lanes; medians; street and alley returns; retaining walls;
1.17fences; lane additions; and fixed transit infrastructure, trails, or pathways. "Fixed transit
1.18infrastructure" does not include commuter rail rolling stock, light rail vehicles, or
1.19transit way buses; capital costs for park-and-ride facilities; feasibility studies, planning,
1.20alternative analyses, environmental studies, engineering, or construction of transit ways;
1.21or operating assistance for transit ways.
1.22(d) "Maintenance" means striping, seal coating, crack sealing, pavement repair,
1.23sidewalk maintenance, signal maintenance, street light maintenance, and signage.
1.24(e) "Municipal street" means a street, alley, or public way in which the municipality
1.25is the road authority with powers conferred by section 429.021.
2.1(f) "Municipality" means a home rule charter or statutory city.
2.2(g) "Street improvement district" means a geographic area designated by a
2.3municipality and located within the municipality within which street improvements and
2.4maintenance may be undertaken and financed according to this section.
2.5(h) "Unimproved parcel" means a parcel of land that abuts an unimproved municipal
2.6street and that is not served by municipal sewer or water utilities; or in the case of a parcel
2.7abutting an improved municipal street and served by municipal sewer or water utilities,
2.8the parcel contains a structure that has not previously been occupied.
2.9 Subd. 2. Authorization. A municipality may establish by ordinance municipal
2.10street improvement districts and may defray all or part of the total costs of municipal
2.11street improvements and maintenance by apportioning street improvement fees to all of
2.12the parcels located in the district. A street improvement district must not include any
2.13property already located in another street improvement district.
2.14 Subd. 3. Uniformity. The total costs of municipal street improvements and
2.15maintenance must be apportioned to all parcels or tracts of land located in the established
2.16street improvement district on a uniform basis within each classification of real estate.
2.17 Subd. 4. Adoption of plan. Before establishing a municipal street improvement
2.18district or authorizing a street improvement fee, a municipality must propose and adopt a
2.19street improvement plan that identifies the location of the municipal street improvement
2.20district and identifies and estimates the costs of the proposed improvements during the
2.21proposed period of collection of municipal street improvement fees, which must be for
2.22a period of at least five years and at most 20 years. Notice of a public hearing on the
2.23proposed plan must be given by mail to all affected landowners at least 30 days before
2.24the hearing and posted for at least 30 days before the hearing. At the public hearing, the
2.25governing body must present the plan and all affected landowners in attendance must have
2.26the opportunity to comment before the governing body considers adoption of the plan.
2.27 Subd. 5. Use of fees. Revenues from street improvement fees must be placed in
2.28a separate account and used only for projects located within the district and identified
2.29in the municipal street improvement plan.
2.30 Subd. 6. Collection; up to 20 years. (a) An ordinance adopted under this section
2.31must provide for billing and payment of the fee on a monthly, quarterly, or other basis
2.32as directed by the governing body. The governing body may collect municipal street
2.33improvement fees within a street improvement district for a maximum of 20 years.
2.34 (b) Fees that, as of October 15 of each year, have remained unpaid for at least 30
2.35days may be certified to the county auditor for collection as a special assessment payable
2.36in the following calendar year against the affected property.
3.1 Subd. 7. Improvement fee. A municipality may impose a municipal street
3.2improvement fee by ordinance. The ordinance must not be voted on or adopted until after
3.3public notice is provided and a public hearing is held in the same manner as provided in
3.4subdivision 4.
3.5 Subd. 8. Not exclusive means of financing improvements. The use of the
3.6municipal street improvement fee by a municipality does not restrict the municipality from
3.7imposing other measures to pay the costs of local street improvements or maintenance,
3.8except that a municipality must not impose special assessments for projects funded with
3.9street improvement fees.
3.10 Subd. 9. Undeveloped parcels; fees. A municipality may not impose a street
3.11improvement fee on any undeveloped parcel located within an established street
3.12improvement district until at least three years after either the date of substantial completion
3.13of the paving of the previous unimproved municipal street or the date which a previously
3.14unoccupied structure is first occupied, whichever is later.
3.15EFFECTIVE DATE.This section is effective July 1, 2013 and expires on June
3.1630, 2018, except as to municipal street improvement fees that were imposed before the
3.17expiration date. Municipal street improvement fees imposed before the expiration date
3.18continue until they expire by the terms of the original ordinance.
