Bill Text: MN HF745 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Municipalities authorized to establish street improvement districts and apportion street improvement fees within districts, adoption of street improvement plan required, and collection of fees authorized.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2013-04-02 - Committee report, to pass as amended and re-refer to Taxes [HF745 Detail]
Download: Minnesota-2013-HF745-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) "Undeveloped 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 street
2.11improvements and maintenance by apportioning street improvement fees to all of the
2.12developed parcels located in the district. A street improvement district must not include
2.13any property 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 developed parcels or developed tracts of land
2.16located in the established street improvement district on a uniform basis within each
2.17classification of real estate.
2.18 Subd. 4. Adoption of plan. Before establishing a municipal street improvement
2.19district or authorizing a street improvement fee, a municipality must propose and adopt a
2.20street improvement plan that identifies the location of the municipal street improvement
2.21district and identifies and estimates the costs of the proposed improvements during the
2.22proposed period of collection of municipal street improvement fees, which must be for
2.23a period of at least five years and at most 20 years. Notice of a public hearing on the
2.24proposed plan must be given by mail to all affected landowners at least 30 days before
2.25the hearing and posted for at least 30 days before the hearing. At the public hearing, the
2.26governing body must present the plan and all affected landowners in attendance must have
2.27the opportunity to comment before the governing body considers adoption of the plan.
2.28 Subd. 5. Use of fees. Revenues from street improvement fees must be placed in
2.29a separate account and used only for projects located within the district and identified
2.30in the municipal street improvement plan.
2.31 Subd. 6. Collection; up to 20 years. (a) An ordinance adopted under this section
2.32must provide for billing and payment of the fee on a monthly, quarterly, or other basis
2.33as directed by the governing body. The governing body may collect municipal street
2.34improvement fees within a street improvement district for a maximum of 20 years.
3.1 (b) Fees that, as of October 15 of each year, have remained unpaid for at least 30
3.2days may be certified to the county auditor for collection as a special assessment payable
3.3in the following calendar year against the affected property.
3.4 Subd. 7. Improvement fee. A municipality may impose a municipal street
3.5improvement fee by ordinance. The ordinance must not be voted on or adopted until after
3.6public notice is provided and a public hearing is held in the same manner as provided in
3.7subdivision 4.
3.8 Subd. 8. Not exclusive means of financing improvements. The use of the
3.9municipal street improvement fee by a municipality does not restrict the municipality from
3.10imposing other measures to pay the costs of local street improvements or maintenance,
3.11except that a municipality must not impose special assessments for projects funded with
3.12street improvement fees.
3.13 Subd. 9. Undeveloped parcels; fees. A municipality may not impose a street
3.14improvement fee on any undeveloped parcel located within an established street
3.15improvement district until at least three years after either the date of substantial completion
3.16of the paving of the previous unimproved municipal street or the date which a previously
3.17unoccupied structure is first occupied, whichever is later.
3.18EFFECTIVE DATE.This section is effective July 1, 2013.
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) "Undeveloped 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 street
2.11improvements and maintenance by apportioning street improvement fees to all of the
2.12developed parcels located in the district. A street improvement district must not include
2.13any property 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 developed parcels or developed tracts of land
2.16located in the established street improvement district on a uniform basis within each
2.17classification of real estate.
2.18 Subd. 4. Adoption of plan. Before establishing a municipal street improvement
2.19district or authorizing a street improvement fee, a municipality must propose and adopt a
2.20street improvement plan that identifies the location of the municipal street improvement
2.21district and identifies and estimates the costs of the proposed improvements during the
2.22proposed period of collection of municipal street improvement fees, which must be for
2.23a period of at least five years and at most 20 years. Notice of a public hearing on the
2.24proposed plan must be given by mail to all affected landowners at least 30 days before
2.25the hearing and posted for at least 30 days before the hearing. At the public hearing, the
2.26governing body must present the plan and all affected landowners in attendance must have
2.27the opportunity to comment before the governing body considers adoption of the plan.
2.28 Subd. 5. Use of fees. Revenues from street improvement fees must be placed in
2.29a separate account and used only for projects located within the district and identified
2.30in the municipal street improvement plan.
2.31 Subd. 6. Collection; up to 20 years. (a) An ordinance adopted under this section
2.32must provide for billing and payment of the fee on a monthly, quarterly, or other basis
2.33as directed by the governing body. The governing body may collect municipal street
2.34improvement fees within a street improvement district for a maximum of 20 years.
3.1 (b) Fees that, as of October 15 of each year, have remained unpaid for at least 30
3.2days may be certified to the county auditor for collection as a special assessment payable
3.3in the following calendar year against the affected property.
3.4 Subd. 7. Improvement fee. A municipality may impose a municipal street
3.5improvement fee by ordinance. The ordinance must not be voted on or adopted until after
3.6public notice is provided and a public hearing is held in the same manner as provided in
3.7subdivision 4.
3.8 Subd. 8. Not exclusive means of financing improvements. The use of the
3.9municipal street improvement fee by a municipality does not restrict the municipality from
3.10imposing other measures to pay the costs of local street improvements or maintenance,
3.11except that a municipality must not impose special assessments for projects funded with
3.12street improvement fees.
3.13 Subd. 9. Undeveloped parcels; fees. A municipality may not impose a street
3.14improvement fee on any undeveloped parcel located within an established street
3.15improvement district until at least three years after either the date of substantial completion
3.16of the paving of the previous unimproved municipal street or the date which a previously
3.17unoccupied structure is first occupied, whichever is later.
3.18EFFECTIVE DATE.This section is effective July 1, 2013.
