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HomeMy WebLinkAbout2013-042 Council Resolution• • CITY OF LINO LAKES RESOLUTION NO. 13 -42 A RESOLUTION SUPPORTING LEGISLATION AUTHORIZING THE ESTABLISHMENT OF MUNICIPAL STREET IMPROVEMENT DISTRICTS WHEREAS, Minnesota contains over 135,000 miles of roadway and over 19,000 miles are owned and maintained by Minnesota's 853 cities; and WHEREAS, 84 percent of municipal streets are ineligible for dedicated Highway User Tax Distribution Fund dollars; and WHEREAS, existing funding mechanisms, such as Municipal State Aid (MSA), property taxes and special assessments, have limited applications, leaving cities under- equipped to address growing needs; and WHEREAS, maintenance costs increase as road systems age, the City is not spending enough on roadway capital improvements to maintain a 50 -year lifecycle; and WHEREAS, for every one dollar spent on maintenance, the City saves seven dollars in repairs; and WHEREAS, the Lino Lake City Council finds it is difficult to develop adequate funding systems to support the City's needed street improvement and maintenance programs; and WHEREAS, cities need flexible policies and greater resources in order to meet growing demands for municipal street improvements and maintenance. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lino Lakes supports enabling legislation that would authorize cities to establish street improvement districts to fund municipal street maintenance, construction and reconstruction. ADOPTED by the City Council of the City of Lino Lakes this 8th day of April 2013. The motion for the adoption of the foregoing resolution was introduced by Council Member Roeser and was duly seconded by Council Member Rafferty and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ATTEST: Bartell, City- lerk Jeff Reinert, Mayor • • CITY COUNCIL AGENDA ITEM 3B STAFF ORIGINATOR: Jeff Karlson MEETING DATE: April 8, 2013 TOPIC: Resolution Supporting Street Improvement Legislation VOTE REQUIRED: 3/5 INTRODUCTION The Council is being asked to consider the adoption of a Resolution No. 13 -42, supporting legislation establishing municipal street improvement districts. BACKGROUND There is currently state legislation being proposed that would allow cities to create street improvement districts. This authority would allow cities to collect fees from property owners within a district to fund municipal street maintenance, construction, and reconstruction. It is modeled after Minn. Stat. 435.44, which allows cities to establish sidewalk improvement districts. This authority would establish a clear relationship between who pays fees and where projects occur. Fees would also be deductible just as property taxes are. If enacted, this legislation would provide cities with an additional tool to build and maintain city streets. Property owners would fund expensive projects by paying relatively small fees over time. The proposal at the Legislature is enabling legislation, which means cities can decide whether or not to use this type of funding mechanism. Existing funding mechanisms for street maintenance and reconstruction are inadequate. Special assessments can be onerous to property owners and are difficult to implement, which is especially true in Lino Lakes. Timely maintenance is essential to preserving streets and thereby protecting taxpayer investments. If the Council elects to approve this resolution, staff would send a letter of support from the Mayor to the League of Minnesota Cities, which would be presented to legislators during the testimony for this proposed legislation. RECOMMENDATION Adopt Resolution No. 13 -42, supporting legislation authorizing the establishment of municipal street improvement districts. • ATTACHMENTS Resolution No. 13 -42 • • HF745 SECOND ENGROSSMENT REVISOR DI H0745 -2 Or' , 3i) This Document can be made available Mack, leir/- in alternative formats upon request State of Minnesota HOUSE OF REPRESENTATIVES EIGHTY-EIGHTH SESSION H. F. No. 745 02/20/2013 Authored by Erhardt, Hornstein, Gunther, Torkelson and Bly The bill was read for the first time and referred to the Committee on Government Operations 03/13/2013 Adoption of Report Pass and re- referred to the Committee on Transportation Policy 03/20/2013 Adoption of Report: Pass as Amended and re- referred to the Committee on Transportation Finance 04/02/2013 Adoption of Report: Pass as Amended and re- referred to the Committee on Taxes 1,1 A bill for an act 1.2 relating to municipalities; authorizing municipalities to establish street 1.3 improvement districts and apportion street improvement fees within districts; 1.4 requiring adoption of street improvement plan; authorizing collection of fees; 1.5 proposing coding for new law in Minnesota Statutes, chapter 435. 1.6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7 Section 1. 1435.391 MUNICIPAL STREET IMPROVEMENT DISTRICTS. 1.8 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms 1.9 have the meanings given them. t.to (b) "Governing body" means the city council of a municipality. 1.11 (c) "Improvements" means construction, reconstruction, and facility upgrades 1.12 involving: right -of -way acquisition; paving; curbs and gutters; bridges and culverts and 1.13 their repair; milling; overlaying; drainage and storm sewers; excavation; base work; 1.14 subgrade corrections; street lighting; traffic signals; signage; sidewalks; pavement 1.15 markings; boulevard and easement restoration; impact mitigation; connection and 1.16 reconnection of utilities; turn lanes; medians; street and alley returns; retaining walls; 1.17 fences; lane additions; and fixed transit infrastructure, trails, or pathways. "Fixed transit 1.18 infrastructure" does not include commuter rail rolling stock, light rail vehicles, or 1.19 transit way buses; capital costs for park- and -ride facilities; feasibility studies, planning, 1.20 alternative analyses, environmental studies, engineering, or construction of transit ways; 1.21 or operating assistance for transit ways. 1.22 (d) "Maintenance" means striping, seal coating, crack sealing, pavement repair, 1.23 sidewalk maintenance, signal maintenance, street light maintenance, and signage. 1.24 (e) "Municipal street" means a street, alley, or public way in which the municipality 1.25 is the road authority with powers conferred by section 429.021. Section 1. 1 HF745 SECOND ENGROSSMENT REVISOR DI H0745 -2 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 2.3 municipality and located within the municipality within which street improvements and 2.4 maintenance may be undertaken and financed according to this section. 2.5 (h) "Undeveloped parcel" means a parcel of land that abuts an unimproved municipal 2.6 street and that is not served by municipal sewer or water utilities; or in the case of a parcel 2.7 abutting an improved municipal street and served by municipal sewer or water utilities, 2.8 the parcel contains a structure that has not previously been occupied. 2.9 Subd. 2. Authorization. A municipality may establish by ordinance municipal 2,1 0 street improvement districts and may defray all or part of the total costs of municipal street 2.11 improvements and maintenance by apportioning street improvement fees to all of the 2.12 developed parcels located in the district. A street improvement district must not include 2.13 any property already located in another street improvement district. 2.14 Subd. 3. Uniformity. The total costs of municipal street improvements and 2.15 maintenance must be apportioned to all developed parcels or developed tracts of land 2.16 located in the established street improvement district on a uniform basis within each 2.17 classification of real estate. 2.18 Subd. 4. Adoption of plan. Before establishing a municipal street improvement 2.19 district or authorizing a street improvement fee, a municipality must propose and adopt a 2.20 street improvement plan that identifies the location of the municipal street improvement 2.21 district and identifies and estimates the costs of the proposed improvements during the 2.22 proposed period of collection of municipal street improvement fees, which must be for 2.23 a period of at least five years and at most 20 years. Notice of a public hearing on the 2.24 proposed plan must be given by mail to all affected landowners at least 30 days before 2.25 the hearing and posted for at least 30 days before the hearing. At the public hearing, the 2.26 governing body must present the plan and all affected landowners in attendance must have 2.27 the 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 2.29 a separate account and used only for projects located within the district and identified 2.30 in the municipal street improvement plan. 2.31 Subd. 6. Collection; up to 20 years. (a) An ordinance adopted under this section 2.32 must provide for billing and payment of the fee on a monthly, quarterly, or other basis 2.33 as directed by the governing body. The governing body may collect municipal street 2.34 improvement fees within a street improvement district for a maximum of 20 years. Section 1. 2 HF745 SECOND ENGROSSMENT REVISOR DI H0745 -2 3.1 (b) Fees that, as of October 15 of each year, have remained unpaid for at least 30 3.2 days may be certified to the county auditor for collection as a special assessment payable 3.3 in the following calendar year against the affected property. 3.4 Subd. 7. Improvement fee. A municipality may impose a municipal street 3.5 improvement fee by ordinance. The ordinance must not be voted on or adopted until after 3.6 public notice is provided and a public hearing is held in the same manner as provided in 3.7 subdivision 4. 3.8 Subd. 8. Not exclusive means of financing improvements. The use of the 3.9 municipal street improvement fee by a municipality does not restrict the municipality from 3.10 imposing other measures to pay the costs of local street improvements or maintenance, 3.11 except that a municipality must not impose special assessments for projects funded with 3.12 street improvement fees. 3.13 Subd. 9. Undeveloped parcels; fees. A municipality may not impose a street 3.14 improvement fee on any undeveloped parcel located within an established street 3.15 improvement district until at least three years after either the date of substantial completion 3.16 of the paving of the previous unimproved municipal street or the date which a previously 3.17 unoccupied structure is first occupied, whichever is later. • 3.18 EFFECTIVE DATE. This section is effective July 1, 2013. • Section 1. 3