Purpose of the Bill

This bill seeks to empower municipalities in Minnesota to establish street improvement districts. These districts would allow cities to manage and finance street improvements and ongoing maintenance more effectively.

Main Provisions

• Definitions: The bill defines key terms such as "governing body," "improvements," "municipal street," and "street improvement district."
• Authorization: Cities can create street improvement districts and impose fees to fund construction and maintenance within those districts.
• Street Improvement Fees: Fees are assessed on all developed properties within a district, based on vehicular traffic estimates. However, properties in multiple districts cannot be charged more than once.
• Plan Adoption and Public Involvement: A street improvement plan must be proposed, including cost estimates for the district. Public notice and a hearing must occur before any fees are imposed.
• Use of Fees: Revenue from these fees must be used for projects within the district as indicated in the improvement plan.
• Collection Procedures: Fees can be charged on various schedules and remain capped at a collection period of 20 years. Unpaid fees may be added to property taxes.
• Exclusive Measures: Municipalities cannot use street improvement fees alongside other special assessments for the same project.
• Exemptions: Fees cannot be assessed on unimproved parcels until sufficient development, nor on properties owned by charitable institutions.
• Appeals Process: Affected landowners can appeal fee assessments to the district court within 30 days.

Significant Changes to Existing Law

The bill introduces a new legal framework under which municipalities can designate street improvement districts and fund street projects via direct fees, expanding beyond traditional funding mechanisms like general taxes or special assessments.

Relevant Terms

• Street improvement district
• Municipal street
• Street improvement fees
• Public hearing
• Vehicular traffic estimates
• Special assessment
• Charitable institution exemption
• District court appeal