86-129 WNITE - CITV GIERK
PINK - FINANCE GITY OF SAINT PAUL Council �f /%j �
CANARV -DEPARTMENT File NO. v� r ���/
BLUE -MAYOR
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O� indnce Ordinance N�.
Presented By
Referre To Committee: Date
Out of mmittee By Date
WHEREAS, several Minnesota municipalities have been authorized by the
State of Minnesota to form Special Service Districts within
their communities; and
WHEREAS, Special Service Districts are a flexible tool for financing
costs associated with �ervices and improvements within a designa-
ted portion of the city; and
WHEREAS, several neighborhood business associations in the City of Saint
Paul have expressed a desire to form and operate special service
di�tricts in Saint Paul;
W�iEREAS, special service district legislation has been requested by
neighborhood business organizations;
THEREFORE, BE IT RESOLVED, That the City of Saint Paul supports legislation
authorizing the establishment of Special Service Districts in
St. Paul, for Grand Avenue and Highland Park, and include a require-
ment that 35� of the property owners of the land valuation and
land area can initiate a petition, and that 25� of the property
owners of the land valuation and land area can veto a special
fee or tax levy, and directs city lobbying staff to propose such
legislation in 1986.
COUNCILMEN Requested by Department of:
Yeas ���� Nays
�F��i�her
p��,,, In Favor
����� �
Nicosia B
scnetbei Against Y
seasszo
Wilson
Adopted by Council: Date
FEB �� — 1985 Form Approved by City Attorney
Certified by ounc' cre BY ,
By
Ap by Mayor: Da � " '' ^°�K Approved by Mayor for Submission to Council
By By
Pu��&�r��a :_-� 1 51986
WHITE - CITV CLERK �
PINK - FINANCE G I TY OF SA I NT PA IT L Council ///^^^���lll
CANARV - DEPARTMENT � /� �
BLUE - MAVOR Flle NO.
�
� ' Council Resolution
Presented y ° ' ��'`�
Refe r�d To LC�I S�-./°I-T I �N Committee: Date ��� �"'��
Ou cYF Committee By Date
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WHEREAS, Se`tr�eral Minnesota municipalities have been authorized by the State
of �nnesota to form Special Service Districts within their communi-
t�ies; '�nd,
WHEREA5, Special ��5,ervice Districts are a flexible tool for financing costs
associate� with services and inprovements within a designated portion
of a city; �,nd,
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WHEREAS, Several neighb�rhood business associations in the City of Saint Paul
have expressed ��desire to form and operate special service districts
in Saint Paul; �
.,
THEREFORE, BE IT RESOLVED, TAat the City of Saint Paul supports legislation '
authorizing the establishment�f Special Service Districts throughout the
state, and directs city lobbyiri staff to propose such legislation in 1986.
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COUNC[LMEN Requested by Department of:
Yeas Nays
Drew
��maac Rettman In Favor
Nicosia
Scheibel
Sonnen A gainst BY
Tedesco
Wilson
Form Approved by City Attorney
Adopted by Council: Date
Certified Passed by Council Secretary BY
By
Approved by �Navor: Uate Approved by Mayor for Submission to Council
By By
�.., CITY OF S�.INT PAUL � �
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OFFZCE OF THE CITF CQIINCZL
11��s��NS�� .
'":.',-�=�'= �'� Ddte : January 21, 1986
COM (�ii (TT � E REPORT
TO = Sa�nt Pau t Cit`y CounciE
FR011r� = COt"tI171i�'tGe Oh� LEGISLATION
C H A i R : JOHN DREW •
Resolution proposing 1986 State Legislation requiring Public Utilities (supplier of
steam, hot water or chilled water) to be regulated by MPUC - COM�IITTEE SUBMITS T0 .
THE CITY COUNCIL WITHOUT RECOMMENDATION. .
Resolutions relating to the City's propasals for State Legislation in the 1986
� Session:
Residual Fuel Oil - No action taken.
� Charitable Gambiing - Approved with amendments. (New Resolution to be
ra te provi ing that the City of Saint Paul be exempt from State
gambling regulations, and if that is not acceptable, that the State
� return 5Q°�.�.f the revenues generated in Saint Paul to Saint Paul .)
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Child Care Sliding Fee Program - Approved.
�����-,,;�,�������,�+�`- Approved wi th amendments. (Legi sl ati on wi 1 l -
e ra te wit wou require 35% of the property owners of the land
valuation and land area to initiate a petition, and would require 25� of
the property owners of the land valuation and land area to veto a tax ler�y
or special fee. Also, the downtown Saint Paul area will be excluded) �
State Development Fund - Housing - Approved.
Fingerprinting of Fire Fighters - Approved.
.
Home Care Licensure - Approved with amendment. (The amendment will add
a provision so that local ordinances could be more stringent than .the State
]aw.)
Fiscal Disparities - Approved. �
CITY HALL SEVENTH FLOOR SAINT PAU4 MINNESOTA SSI02
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A bill for an act
relating to the city of St. Paul ; permitting the
establishment of special service districts in the city
and providing taxing and other authority.
BE I'' ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
SECTION 1 . DEFINITIONS.
Subdivision 1 . For the purpose of this act the terms
defined in this section have the following meanings.
Subd. 2. "City" means the city of 5t. Paul .
Subd. 3. "Special services" means all services rendered or
contracted for by the city, including, but not limited to:
(a) the repair, maintenance, operation and construction of
any improvements authorized by Minnesota Statutes, section
429. 021 and section 459. 14.
(b) parking services rendered or contracted for by the
city; and
(c) any other service provided to the public by the city
that is authorized by law or charter provision; and
(d) the promotion and management of the district as a trade
or shopping area. Special services do not include services that
are ordinarily provided throughout the city from ordinary
revenues of the city unless an increased level of service is
provided in the special service district.
Subd. 4. "Special service district" means a defined area
within the city where special services are rendered and their
costs are paid from revenues collected from taxes and service
charges imposed within the area.
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Subd. 5. "Assessed value" means the assessed value as most
recently certified by the commissioner of revenue on the
effective date of the ordinance or resolution adopted pursuant to
section 2 or 3.
Subd. 6. "Land area" means the land area located within the
district that is subject to property taxation.
Sec. 2. ESTABLISHMENT OF SPECIAL SERVICE DISTRICT.
Subdivision 1 . ORDINANCE. The governing body of the city
may adopt ordinances establishing special service districts in
the area of Grand Avenue between Oakland and Cretin Avenues and
in the area of Cteveland Avenue between Bayard and Bohland
Avenues and Ford Parkway between Howell Street and East
Mississippi River Boulevard. The ordinance shall describe with
particularity the areas to be included in the district and the
special service to be furnished. The ordinance may not be
adopted until after a public hearing on the question. Notice of
the hearing shall include:
(a) the time and place of the hearing.
(b) a map showing the boundaries of the proposed district;
and
(c) a statement that all persons owning property in the
proposed district will be given an opportunity to be heard at the
hearing.
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Subd. 2. NOTICE. Notice of the hearing shall be given by
publication in two issues of a newspaper of generai circulation
in the city. The two publications shall be a week apart and the
hearing shall be heid at least three days after tt�z last
publication. Not less than ten days before the hearing, notice
shall also be mailed to the owner of each parcel of real estate
proposed to be included in the district. For the purpose of
giving mailed notice, owners shall be those shown on the records
of the county auditor. Other records may be used to supply
necessary information. For properties which are subject to
taxation on a gross earning basis in lieu of property tax and are
not listed on the records of the county auditor, the owners shall
be ascertained by any practicable means and mailed notice given
them. At the public hearing, any person included in a proposed
district may be heard orally in respect to .any issues embodied in
the notice. The hearing may be adjourned from time to time and
the ordinance establishing a district may be adopted at any time
within six months after the date of the conclusion of. the hearing
by a vote of the majority of the governing body of the city.
Sec. 3. TAXING AUTHORITY; NOTICE AND HEARING REQUIREMENTS.
Subdivision t . TAXES; HEARING. Upon a finding of public
purpose, a special service tax based upon property value, square
footage, or front footage or allocated by another fair method
determined by the governing body, maybe levied on all classes of
taxable property, exciuding homestead property found within the
special district at a rate or amount sufficient to produce
revenues required to provide the special services within the
district. If the ad vatorum or property value method is used, .
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taxable property or vaiue shall be determined without regard to
captured or original assessed value under Minnesota Statutes,
section 273.76, or to the distribution or contribution value
under Minnesota Statutes, section 473F.08. Special service taxes
may be imposed to finance a special service that is ordinarily
provided by the city only if the service is provided in the
district at an increased level and, then, only in an amount
sufficient to pay for the increase. A special service tax may
not be imposed on the receipts from the sale of intoxicating
liquor, food or lodging. Before the levy of special service
�xes 1 n a d f s�r��et, for each �a�er�ar yy+eaT, r�t�c�e �pa` f hac
given and hearing shall be held pursuant to section 2. For
purposes of this section the notice shall include:
(a) A statement that all persons included in the proposed
district will be given an opportunity to be heard at the hearing
regarding the proposed special service tax levy.
(b? The estimated cost of improvements to be paid in whole
or in part by special service tax imposed by this section, the
estimated cost of operating and maintaining the improvements and
providing other special services during the first year after
compietion of the improvements, the proposed method and source of
financing the improvements, and the annual cost of operating and
maintaining the improvements and providing other special
services.
(c) The proposed rate or amount of special service taxes to
be levied in the district during the calendar year and the nature
and character of special services to be rendered in the district
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during the calendar year.
(d) A statement that the petition requirements of section 5
have either been met or do not appiy to the proposed special
service taxes�
Within the six months of the public hearing, the city may
adopt a resolution levying a special service tax within the
district that does not exceed the amount or rate stated in the
notice issued pursuant to this section. Any amendment increasing
the amount of special service taxes from those estimated in the
notice shall only be considered after the giving of further
notice in accordance with the requirements of this subdivision.
Subd. 2. EXEMPTION OF CERTAIN PROPERTIES FROM TAXES.
Property exempt from taxation by Minnesota Statutes, section
272.02, is exempt from any special service taxes imposed pursuant
to sections 1 to 11 .
Subd. 3. LEVY LIMIT EXEMPTIONS. Special service taxes
imposed pursuant to this act shall not be included in the
calculation of levies or limits on levies provided by other law
or home rule charter.
Subd. 4. EXCLUSION FROM HOMESTEAD CREDIT. Speciat service
taxes levied under this section shall not be reduced pursuant to
Minnesota Statutes, section 273. 13 , subdivisions 7, 7d, or 14a.
Sec. 4. ENLARGEMENT OF SPECIAL SERVICE DISTRICTS. The
boundary of a special service district may be entarged only after
hearing and notice as provided in section 2. Notice shall be
served in the original district and in the area proposed to be
added to the district. Property added to the district shall be
subject to all speciat service taxes levied within the district
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after the property becomes a part of the district. The petition
requirement in section 5 and the veto power in section 6 shall
only apply to property owners in the area proposed to be added to
the special service districts.
Sec. 5. PETITION REQUIRED.
No public hearing may be held pursuant to section 2 unless
owners of� 35 percent or more of the land area of the proposed
special service district and owners of 35 percent or more of the
assessed value of the proposed special service district file a
petition with the city clerk requesting the hearing. No public
hearing may be held pursuant to section 3 to impose a special
service tax unless owners of 35 percent or more of the land area
subject to the proposed tax and owners of 35 percent or more of
the assessed vatue subject to the proposed tax file a petition
with the city clerk requesting the hearing. If the boundaries of
a proposed district are changed or the land area of assessed
value subject to a tax are changed after the public hearing, a
petition meeting the requirements of this section must be filed
with the city clerk before the ordinance establishing the
district or resolution imposing the tax may become effective.
Sec. 6. VE70 POWER OF OWNERS.
Subdivision 1 . NOTICE OF RIGHT TO FILE OBJECTIONS. Except
as provided in section 7, the effective date of any ordinance or
resolution adopted pursuant to sections 2 and 3 shall be at least
45 days after it is adopted. Within ten days after adoption of
the ordinance or resolution, a copy of the ordinance or
resolution shall be mailed to the owner of each parcel of real
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estate included in the special service district, in the same
manner that notice is mailed pursuant to section 2. The mailing
shall include a notice that owners sub,�ect to a special service
tax have a right to veto the ordinance or resolution by fiting
the required number of objections with the city clerk before the
effective date of the ordinance or resolution.
Subd. 2. REQUIREMENT FOR VETO. If owners of 25 percent of
the land area in the district and owners of 25 percent of the
assessed valule in the district file a written objection to the
ordinance adopted by the city pursuant to section 2 with the city
clerk before the effective date of the ordinance, the ordinance
shall not become effective. If owners of 25 percent of the land
area subject to a tax and owners of 25 percent of the assessed
value subject to a tax file an objection to the resolution
adopted pursuant to section 3 with the city clerk before the
effective date of the resolution, the resolution shall not become
effective.
Sec. 7. EXCLU5ION FROM PETITION REQUIREMENTS AND VETO
POWER.
The petition requirement of section 5 and the right of
owners to veto a resolution in section 6, do not apply to the
second or a subsequent year's appiication of a special service
tax which is authorized to be in effect for more than one year
pursuant to a resolution which has met the petition requirements
of section 5 and which has not been vetoed under section 6 for
the first year's application. A resolution levying a special
service tax for more than one year shall not be adopted unless
the notice of public hearing required by section 3 and the notice
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mailed with the adopted resolution pursuant to section 6 include
the following information:
(a) In the case of improvements, the maximum rate or amount
of special service taxes to be imposed in any year and the
maximum number of years the taxes witi be levied to pay for the
improvement.
(b) In the case of all other special services the maximum
rate or amount of special service taxes to be levied in any year
and the maximum number of years the taxes will be levied or a
statement that they will be levied for an indefinite number of
years.
The resolution may provide that maximum amount of special
services taxes to be levied in any year will increase or decrease
from the maximum amount authorized in the preceding year based on
an indicator or increased cost or a percentage amount established
by the resolution.
Sec. 8. COLLECTION OF TAXES.
Special service taxes levied within a special service
district shall be collected like other real estate taxes but only
from property described in the ordinance. Taxes collected
pursuant to this act shall not be inciuded in computations under
Minnesota Statutes, section 273 .76, chapter 473F, or any other
law that applies to general property taxes.
Sec. 9. CERTIFICATES OF INDEBTEDNESS.
The city council may issue certificates of indebtedness
within existing debt limits but without election for purposes of
• any work or service authorized pursuant to this act. The
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certificates shall be payable in not more than five years and be
issued on the terms and in the manner determined by the council .
A tax tevy shall be made on the taxable property within the
special service district to pay the principal and interest on the
certificates in the same way as for bonds. Certificates may be
paid by a special service tax.
Sec. ) 0. BONDS.
After a contract providing for part or all of the special
services authorized pursuant to this act has been entered into or
the work has been ordered done by day labor, the council may, by
resolution adopted before the sale of obligations, pledge the
full faith, credit and taxing power of the city to assure payment
of the principal and interest 9f the proceeds of the tax levy in
the district are not sufficient to pay the principal and
interest. Obligations shall be issued in accordance with
Minnesota Statutes, chapter 475, except that an election shall
not be required, and the amount of the obligations shall be
disregarded in calculating the net debt of the city under the
provisions of any law or charter limiting debt.
Sec. ll . ADVISORY BOARD.
The governing body of the city may create and appoint an
advisory board for each special service district in the city to
advise the governing body in connection with the construction,
maintenance, and operation of improvements, and the furnishing of
all other special services in a district. The advisory board
shall make recommendations to the governing body on the requests
and complaints of owners, occupants, and users of property within
the district and members of the public. Before the adoption of
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any proposat by the governing body to provide service or impose
special service taxes within the district, the advisory board of
the district must have an opportunity to review and comment upon
the proposal .
Sec. 12. EFFECTIVE DATE.
Sections 1 to 11 are effective the day after compliance with
Minnesota Statutes, section 645.021 , subdivision 3, by the
governing body of the city of St. Paul .
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