Laserfiche WebLink
DS-3. MUNICIPAL. SERVICE DISTRICTS (B) <br />Recent court decisions concerning special assessments have made it more <br />difficult for cities to use special assessments to finance public services and <br />improvements. The Minnesota Supreme Court has interpreted the State <br />Constitution to require not only that a special assessment project "specially <br />benefit" affected parcels of property, but also that the city be able to prove <br />that the market value of a property will increase in direct relation to the <br />amount of the special assessment applied to that property. <br />This interpretation has created particular problems for several important <br />city functions. First, it is more difficult assess all (or even part) of a <br />capital improvement project to repair or replace, as opposed to newly built <br />improvements. This result hinders cities from meeting the widely recognized <br />need for maintenance of the existing public infrastructure. <br />Second, cities' ability to finance annual operating and maintenance costs <br />of some services to property through the use of special service charges is <br />either unclear or nonexistent under current law. <br />The only current financing alternative to special assessments or service <br />charges is the general property tax. But it may not be desirable to use the <br />general property tax to finance some capital or operating expenses. For <br />example, if a road is used aimost exclusively by people living in one corner of <br />a city, it may be bad public policy to require the cost of replacing that road <br />This <br />city <br />pto ber pertytrue <br />rne in theall resthofprty theecityihashalready been assessedcforlsimilarif the <br />improvements. <br />Or, if the central business district or mall of a city benefits from more <br />frequent snowplowing or street cleaning, better lighting, etc. it may not be <br />good policy to have all the city taxpayers share in those expenses. <br />DS-4. TAX INCREMENT FINANCING (B) <br />a <br />Tax increment financing has permitted many cities in various parts of the <br />state to define and carry out rehabilitation, redevelopment, housing, and <br />economic development projects on their own initiative. It represents the most <br />feasible and effective legal strategy <br />andwhich <br />conomiccurrently <br />nmentavailable to cities to <br />preserve and improve their physical <br />DS-5. PORT AUTHORITIES (B) <br />The legislature should adopt <br />A number of cities have benefitted from special acts of the legislature <br />allowing them individually to create port authorities. These cities have <br />benefitted from additional flexibility in the economic development field. These <br />opportunities should be available to all cities rather than requiring individual <br />acts of the legislature. <br />-i6- <br />