Minnesota Statutes 2002, Chapter 428A.

Copyright 2002 by the Office of Revisor of Statutes, State of Minnesota.


==428A.01 
     428A.01 Special service district procedures; definitions.

    Subdivision 1.    Applicability.  As used in sections 
 428A.01 to 428A.10, the terms defined in this section have the 
 meanings given them. 

    Subd. 2.    City.  "City" means a home rule charter or 
 statutory city. 

    Subd. 3.    Special services.  "Special services" has 
 the meaning given in the city's ordinance but special services 
 may not include a service that is ordinarily provided throughout 
 the city from general fund revenues of the city unless an 
 increased level of the service is provided in the special 
 service district. 

    Subd. 4.    Special service district.  "Special service 
 district" means a defined area within the city where special 
 services are rendered and the costs of the special services are 
 paid from revenues collected from service charges imposed within 
 that area. 

    Subd. 5.    Net tax capacity.  Except as provided in 
 section 428A.05, "net tax capacity" means the net tax capacity 
 most recently certified by the county auditor under section 
 428A.03, subdivision 1a, before the effective date of the 
 ordinance or resolution adopted under section 428A.02 or 428A.03.

    Subd. 6.    Land area.  "Land area" means the land area 
 in the district that is subject to property taxes. 

    HIST: 1988 c 719 art 5 s 84; art 14 s 1; 1989 c 329 art 13 s 
 20; 1995 c 264 art 16 s 16; 1996 c 471 art 8 s 3,4 

==428A.02 
     428A.02 Establishment of special service district. 

    Subdivision 1.    Ordinance.  The governing body of a 
 city may adopt an ordinance establishing a special service 
 district.  Only property that is classified under section 273.13 
 and used for commercial, industrial, or public utility purposes, 
 or is vacant land zoned or designated on a land use plan for 
 commercial or industrial use and located in the special service 
 district, may be subject to the charges imposed by the city on 
 the special service district.  Other types of property may be 
 included within the boundaries of the special service district 
 but are not subject to the levies or charges imposed by the city 
 on the special service district.  If 50 percent or more of the 
 market value of a parcel of property is classified under section 
 273.13 as commercial, industrial, or vacant land zoned or 
 designated on a land use plan for commercial or industrial use, 
 or public utility for the current assessment year, then the 
 entire market value of the property is subject to a service 
 charge based on net tax capacity for purposes of sections 
 428A.01 to 428A.10.  The ordinance shall describe with 
 particularity the area within the city to be included in the 
 district and the special services to be furnished in the 
 district.  The ordinance may not be adopted until after a public 
 hearing has been held on the question.  Notice of the hearing 
 shall include the time and place of hearing, a map showing the 
 boundaries of the proposed district, and a statement that all 
 persons owning property in the proposed district that would be 
 subject to a service charge will be given opportunity to be 
 heard at the hearing.  Within 30 days after adoption of the 
 ordinance under this subdivision, the governing body shall send 
 a copy of the ordinance to the commissioner of revenue. 

    Subd. 2.    Notice.  Notice of the hearing must be given 
 by publication in at least two issues of the official newspaper 
 of the city.  The two publications must be two weeks apart and 
 the hearing must be held at least three days after the last 
 publication.  Not less than ten days before the hearing, notice 
 must also be mailed to the owner of each parcel within the area 
 proposed to be included in the district.  For the purpose of 
 giving mailed notice, owners are those shown on the records of 
 the county auditor.  Other records may be used to supply the 
 necessary information.  For properties that are tax exempt or 
 subject to taxation on a gross earnings basis in lieu of 
 property tax and are not listed on the records of the county 
 auditor, the owners must be ascertained by any practicable means 
 and mailed notice given them.  At the public hearing a person 
 affected by the proposed district may testify on any issues 
 relevant to the proposed district.  The hearing may be adjourned 
 from time to time and the ordinance establishing the 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. 

    Subd. 3.    Charges; relationship to services.  The city 
 may impose service charges under sections 428A.01 to 428A.10 
 that are reasonably related to the special services provided.  
 Charges for service shall be as nearly as possible proportionate 
 to the cost of furnishing the service, and may be fixed on the 
 basis of the service directly rendered, or by reference to a 
 reasonable classification of the types of premises to which 
 service is furnished, or on any other equitable basis. 

    Subd. 4.    Benefit; objection.  Before the ordinance is 
 adopted or at the hearing at which it is to be adopted, any 
 affected landowner may file a written objection with the city 
 clerk asserting that the landowner's property should not be 
 included in the district or should not be subjected to a service 
 charge and objecting to:  

    (1) the inclusion of the landowner's property in the 
 district, for the reason that the property would not receive 
 services that are not provided throughout the city to the same 
 degree; 

    (2) the levy of a service charge on the landowner's 
 property, for the reason that the property is exempted under 
 sections 428A.01 to 428A.10 or the special law under which the 
 district was created; or 

    (3) the fact that neither the landowner's property nor its 
 use is benefited by the proposed special service.  

 The governing body shall make a determination on the objection 
 within 30 days of its filing.  Pending its determination, the 
 governing body may delay adoption of the ordinance or it may 
 adopt the ordinance with a reservation that the landowner's 
 property may be excluded from the district or district service 
 charges when the determination is made.  

    Subd. 5.    Appeal to district court.  Within 30 days 
 after the determination of the objection, any person aggrieved, 
 who is not precluded by failure to object before or at the 
 hearing, or whose failure to object is due to a reasonable 
 cause, may appeal to the district court by serving a notice upon 
 the mayor or city clerk.  The notice shall be filed with the 
 court administrator of the district court within ten days after 
 its service.  The city clerk shall furnish the appellant a 
 certified copy of the findings and determination of the 
 governing body.  The court may affirm the action objected to or, 
 if the appellant's objections have merit, modify or cancel it.  
 If the appellant does not prevail upon the appeal, the costs 
 incurred shall be taxed to the appellant by the court and 
 judgment entered for them.  All objections shall be deemed 
 waived unless presented on appeal.  

    HIST: 1988 c 719 art 5 s 84; art 14 s 2; 1989 c 329 art 13 s 
 20; 1996 c 471 art 8 s 5 

==428A.03 
     428A.03 Service charge authority; notice, hearing 
  requirement. 

    Subdivision 1.    Hearing.  Service charges may be 
 imposed by the city within the special service district at a 
 rate or amount sufficient to produce the revenues required to 
 provide special services in the district.  To determine the 
 appropriate rate for a service charge based on net tax capacity, 
 taxable property or net tax capacity must be determined without 
 regard to captured or original net tax capacity under section 
 469.177 or to the distribution or contribution value under 
 section 473F.08.  Service charges may not be imposed to finance 
 a special service if the service is ordinarily provided by the 
 city from its general fund revenues unless the service is 
 provided in the district at an increased level.  In that case, a 
 service charge may be imposed only in the amount needed to pay 
 for the increased level of service.  A service charge may not be 
 imposed on the receipts from the sale of intoxicating liquor, 
 food, or lodging.  Before the imposition of service charges in a 
 district, for each calendar year, a hearing must be held under 
 section 428A.02 and notice must be given and must be mailed to 
 any individual or business organization subject to a service 
 charge.  For purposes of this section, the notice shall also 
 include: 

    (1) a statement that all interested persons will be given 
 an opportunity to be heard at the hearing regarding a proposed 
 service charge; 

    (2) the estimated cost of improvements to be paid for in 
 whole or in part by service charges imposed under this section, 
 the estimated cost of operating and maintaining the improvements 
 during the first year and upon completion of the improvements, 
 the proposed method and source of financing the improvements, 
 and the annual cost of operating and maintaining the 
 improvements; 

    (3) the proposed rate or amount of the proposed service 
 charge to be imposed in the district during the calendar year 
 and the nature and character of special services to be rendered 
 in the district during the calendar year in which the service 
 charge is to be collected; and 

    (4) a statement that the petition requirements of section 
 428A.08 have either been met or do not apply to the proposed 
 service charge. 

    Within six months of the public hearing, the city may adopt 
 a resolution imposing a service charge within the district not 
 exceeding the amount or rate expressed in the notice issued 
 under this section. 

    Subd. 1a.    Certification of net tax capacity.  Upon a 
 request of the city, the county auditor must certify the most 
 recent net tax capacity of the taxable property subject to 
 service charges within the special service district. 

    Subd. 2.    Exemption of certain properties from taxes and 
 service charges.  Property exempt from taxation by section 
 272.02 is exempt from any service charges based on net tax 
 capacity imposed under sections 428A.01 to 428A.10. 

    Subd. 3.    Levy limit.  Service charges imposed under 
 sections 428A.01 to 428A.10 are not included in the calculation 
 of levies or limits on levies imposed under law or charter. 

    HIST: 1988 c 719 art 5 s 84; art 14 s 3; 1989 c 329 art 13 s 
 20; 1995 c 264 art 16 s 17 

==428A.04 
     428A.04 Enlargement of special service districts. 

    Boundaries of a special service district may be enlarged 
 only after hearing and notice as provided in sections 428A.02 
 and 428A.03.  Notice must be served in the original district and 
 in the area proposed to be added to the district.  Property 
 added to the district is subject to all service charges imposed 
 within the district after the property becomes a part of the 
 district if it is property of the type that is subject to 
 service charges in the district.  On the question of 
 enlargement, the petition requirement in section 428A.08 and the 
 veto power in section 428A.09 apply only to owners, individuals, 
 and business organizations in the area proposed to be added to 
 the district. 

    HIST: 1988 c 719 art 14 s 4 

==428A.05 
     428A.05 Collection of service charges. 

    Service charges may be imposed on the basis of the net tax 
 capacity of the property on which the service charge is imposed 
 but must be spread only upon the net tax capacity of the taxable 
 property located in the geographic area described in the 
 ordinance.  Service charges based on net tax capacity may be 
 payable and collected at the same time and in the same manner as 
 provided for payment and collection of ad valorem taxes.  When 
 made payable in the same manner as ad valorem taxes, service 
 charges not paid on or before the applicable due date shall be 
 subject to the same penalty and interest as in the case of ad 
 valorem tax amounts not paid by the respective due date.  The 
 due date for a service charge payable in the same manner as ad 
 valorem taxes is the due date given in law for the real or 
 personal property tax for the property on which the service 
 charge is imposed.  Service charges imposed on net tax capacity 
 which are to become payable in the following year must be 
 certified to the county auditor by the date provided in section 
 429.061, subdivision 3, for the annual certification of special 
 assessment installments.  Other service charges imposed must be 
 collected as provided by ordinance.  Service charges based on 
 net tax capacity collected under sections 428A.01 to 428A.10 are 
 not included in computations under section 469.177, chapter 276A 
 or 473F, or any other law that applies to general ad valorem 
 levies.  For the purpose of this section, "net tax capacity" 
 means the net tax capacity most recently determined at the time 
 that tax rates are determined under section 275.08. 

    HIST: 1988 c 719 art 5 s 84; art 14 s 5; 1989 c 329 art 13 s 
 20; 1995 c 264 art 16 s 18; 1996 c 471 art 11 s 12 

==428A.06 
     428A.06 Bonds. 

    At any time after a contract for the construction of all or 
 part of an improvement authorized under sections 428A.01 to 
 428A.10 has been entered into or the work has been ordered done 
 by day labor, the governing body of the city may issue 
 obligations in the amount it deems necessary to defray in whole 
 or in part the expense incurred and estimated to be incurred in 
 making the improvement, including every item of cost from 
 inception to completion and all fees and expenses incurred in 
 connection with the improvement or the financing.  The 
 obligations are payable primarily out of the proceeds of the 
 service charge based on net tax capacity imposed under section 
 428A.03, or from any other special assessments or nontax 
 revenues available to be pledged for their payment under charter 
 or statutory authority, or from two or more of those sources.  
 The governing body may, by resolution adopted prior to the sale 
 of obligations, pledge the full faith, credit, and taxing power 
 of the city to assure payment of the principal and interest if 
 the proceeds of the service charge in the district are 
 insufficient to pay the principal and interest.  The obligations 
 must be issued in accordance with chapter 475, except that an 
 election is not required, and the amount of the obligations need 
 not be included in determining the net debt of the city under 
 the provisions of any law or charter limiting debt. 

    HIST: 1988 c 719 art 5 s 84; art 14 s 6; 1989 c 329 art 13 s 
 20 

==428A.07 
     428A.07 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 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 
 any proposal by the governing body to provide services or impose 
 service charges within the district, the advisory board of the 
 district shall have an opportunity to review and comment upon 
 the proposal. 

    HIST: 1988 c 719 art 14 s 7 

==428A.08 
     428A.08 Petition required. 

    No action may be taken under section 428A.02 unless owners 
 of 25 percent or more of the land area of property that would be 
 subject to service charges in the proposed special service 
 district and owners of 25 percent or more of the net tax 
 capacity of property that would be subject to service charges in 
 the proposed special service district file a petition requesting 
 a public hearing on the proposed action with the city clerk.  No 
 action may be taken under section 428A.03 to impose a service 
 charge based on net tax capacity unless owners of 25 percent or 
 more of the land area subject to a proposed service charge and 
 owners of 25 percent or more of the net tax capacity subject to 
 a proposed service charge file a petition requesting a public 
 hearing on the proposed action with the city clerk.  No action 
 may be taken under section 428A.03 to impose any other type of 
 service charge unless 25 percent or more of the individual or 
 business organizations subject to the proposed service charge 
 file a petition requesting a public hearing on the proposed 
 action with the city clerk.  If the boundaries of a proposed 
 district are changed or the land area or net tax capacity 
 subject to a service charge or the individuals or business 
 organizations subject to a service charge 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 service 
 charge may become effective. 

    HIST: 1988 c 719 art 5 s 84; art 14 s 8; 1989 c 329 art 13 s 
 20 

==428A.09 
     428A.09 Veto power of owners. 

    Subdivision 1.    Notice of right to file objections.  
 Except as provided in section 428A.10, the effective date of any 
 ordinance or resolution adopted under sections 428A.02 and 
 428A.03 must be at least 45 days after it is adopted.  Within 
 five days after adoption of the ordinance or resolution, a 
 summary of the ordinance or resolution must be mailed to the 
 owner of each parcel included in the special service district 
 and any individual or business organization subject to a service 
 charge in the same manner that notice is mailed under section 
 428A.02.  The mailing must include a notice that owners subject 
 to a service charge based on net tax capacity and individuals 
 and business organizations subject to a service charge imposed 
 on another basis have a right to veto the ordinance or 
 resolution by filing the required number of objections with the 
 city clerk before the effective date of the ordinance or 
 resolution and that a copy of the ordinance or resolution is on 
 file with the city clerk for public inspection. 

    Subd. 2.    Requirements for veto.  If owners of 35 
 percent or more of the land area in the district subject to the 
 service charge based on net tax capacity or owners of 35 percent 
 or more of the net tax capacity in the district subject to the 
 service charge based on net tax capacity file an objection to 
 the ordinance adopted by the city under section 428A.02 with the 
 city clerk before the effective date of the ordinance, the 
 ordinance does not become effective.  If owners of 35 percent or 
 more of the land area subject to the service charge based on net 
 tax capacity or owners of 35 percent or more of the net tax 
 capacity subject to the service charge based on net tax capacity 
 file an objection to the resolution adopted imposing a service 
 charge based on net tax capacity under section 428A.03 with the 
 city clerk before the effective date of the resolution, the 
 resolution does not become effective.  If 35 percent or more of 
 individuals and business organizations subject to a service 
 charge file an objection to the resolution adopted imposing a 
 service charge on a basis other than net tax capacity under 
 section 428A.03 with the city clerk before the effective date of 
 the resolution, the resolution does not become effective.  In 
 the event of a veto, no district shall be established during the 
 current calendar year and until a petition meeting the 
 qualifications set forth in this subdivision for a veto has been 
 filed.  

    HIST: 1988 c 719 art 5 s 84; art 14 s 9; 1989 c 329 art 13 s 
 20 

==428A.10 
     428A.10 Exclusion from petition requirements and veto 
  power. 

    The petition requirements of section 428A.08 and the right 
 of owners and those subject to a service charge to veto a 
 resolution in section 428A.09 do not apply to second or 
 subsequent years' applications of a service charge that is 
 authorized to be in effect for more than one year under a 
 resolution that has met the petition requirements of section 
 428A.08 and which has not been vetoed under section 428A.09 for 
 the first year's application.  A resolution imposing a service 
 charge for more than one year must not be adopted unless the 
 notice of public hearing required by section 428A.03 and the 
 notice mailed with the adopted resolution under section 428A.09 
 include the following information: 

    (1) in the case of improvements, the maximum service charge 
 to be imposed in any year and the maximum number of years the 
 service charges imposed to pay for the improvement; and 

    (2) in the case of operating and maintenance services, the 
 maximum service charge to be imposed in any year and the maximum 
 number of years, or a statement that the service charge will be 
 imposed for an indefinite number of years, the service charges 
 will be imposed to pay for operation and maintenance services. 

    The resolution may provide that the maximum service charge 
 to be imposed in any year will increase or decrease from the 
 maximum amount authorized in the preceding year based on an 
 indicator of increased cost or a percentage amount established 
 by the resolution. 

    HIST: 1988 c 719 art 14 s 10 

==428A.101 
     428A.101 Special service district; sunset of 
  self-executing provisions. 

    The establishment of a new special service district after 
 June 30, 2005, requires enactment of a special law authorizing 
 the establishment. 

    HIST: 1996 c 471 art 8 s 6; 2000 c 493 s 4 

==428A.11 
     428A.11 Housing improvement areas; definitions. 

    Subdivision 1.    Applicability.  As used in sections 
 428A.11 to 428A.20, the terms defined in this section have the 
 meanings given them. 

    Subd. 2.    City.  "City" means a home rule charter or 
 statutory city. 

    Subd. 3.    Enabling ordinance.  "Enabling ordinance" 
 means the ordinance adopted by the city council establishing the 
 housing improvement area. 

    Subd. 4.    Housing improvements.  "Housing improvements"
 has the meaning given in the city's enabling ordinance.  Housing 
 improvements may include improvements to common elements of a 
 condominium or other common interest community. 

    Subd. 5.    Housing improvement area.  "Housing 
 improvement area" means a defined area within the city where 
 housing improvements are made or constructed and the costs of 
 the improvements are paid in whole or in part from fees imposed 
 within the area. 

    Subd. 6.    Housing unit.  "Housing unit" means real 
 property and improvements thereon consisting of a one-dwelling 
 unit, or an apartment or unit as described in chapter 515, 515A, 
 or 515B, respectively, that is occupied by a person or family 
 for use as a residence. 

    Subd. 7.    Authority.  "Authority" means an economic 
 development authority or housing and redevelopment authority 
 created pursuant to section 469.003, 469.004, or 469.091 or 
 another entity authorized by law to exercise the powers of an 
 authority created pursuant to one of those sections. 

    Subd. 8.    Implementing entity.  "Implementing entity" 
 means the city or authority designated in the enabling ordinance 
 as responsible for implementing and administering the housing 
 improvement area. 

    HIST: 1996 c 471 art 8 s 7; 1999 c 11 art 3 s 13,14; 2000 c 
 490 art 11 s 2,3 

==428A.12 
     428A.12 Petition required. 

    No action may be taken under sections 428A.13 and 428A.14 
 unless owners of 25 percent or more of the housing units that 
 would be subject to fees in the proposed housing improvement 
 area file a petition requesting a public hearing on the proposed 
 action with the city clerk.  No action may be taken under 
 section 428A.14 to impose a fee unless owners of 25 percent or 
 more of the housing units subject to the proposed fee file a 
 petition requesting a public hearing on the proposed fee with 
 the city clerk or other appropriate official. 

    HIST: 1996 c 471 art 8 s 8 

==428A.13 
     428A.13 Establishment of housing improvement area. 

    Subdivision 1.    Ordinance.  The governing body of the 
 city may adopt an ordinance establishing one or more housing 
 improvement areas.  The ordinance must specifically describe the 
 portion of the city to be included in the area, the basis for 
 the imposition of the fees, and the number of years the fee will 
 be in effect.  In addition, the ordinance must include findings 
 that without the housing improvement area, the proposed 
 improvements could not be made by the condominium associations 
 or housing unit owners, and the designation is needed to 
 maintain and preserve the housing units within the housing 
 improvement area.  The ordinance shall designate the 
 implementing entity.  The ordinance may not be adopted until a 
 public hearing has been held regarding the ordinance.  The 
 ordinance may be amended by the governing body of the city, 
 provided the governing body complies with the public hearing 
 notice provisions of subdivision 2.  Within 30 days after 
 adoption of the ordinance under this subdivision, the governing 
 body shall send a copy of the ordinance to the commissioner of 
 revenue. 

    Subd. 2.    Public hearing.  The notice of public 
 hearing must include the time and place of hearing, a map 
 showing the boundaries of the proposed area, and a statement 
 that all persons owning housing units in the proposed area that 
 would be subject to a fee for housing improvements will be given 
 an opportunity to be heard at the hearing.  Notice of the 
 hearing must be given by publication in the official newspaper 
 of the city.  The public hearing must be held at least seven 
 days after the publication.  Not less than ten days before the 
 hearing, notice must also be mailed to the owner of each housing 
 unit within the proposed area.  For the purpose of giving mailed 
 notice, owners are those shown on the records of the county 
 auditor.  Other records may be used to supply the necessary 
 information.  At the public hearing a person owning property in 
 the proposed housing improvement area may testify on any issues 
 relevant to the proposed area.  The hearing may be adjourned 
 from time to time.  The ordinance establishing the area 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. 

    Subd. 3.    Proposed housing improvements.  At the 
 public hearing held under subdivision 2, the proposed 
 implementing entity shall provide a preliminary listing of the 
 housing improvements to be made in the area.  The listing shall 
 identify those improvements, if any, that are proposed to be 
 made to all or a portion of the common elements of a 
 condominium.  The listing shall also identify those housing 
 units that have completed the proposed housing improvements and 
 are proposed to be exempted from a portion of the fee.  In 
 preparing the list the proposed implementing entity shall 
 consult with the residents of the area and the condominium 
 associations. 

    Subd. 4.    Benefit; objection.  Before the ordinance is 
 adopted or at the hearing at which it is to be adopted, the 
 owner of a housing unit in the proposed housing improvement area 
 may file a written objection with the city clerk asserting that 
 the owner's property should not be included in the area or 
 should not be subjected to a fee and objecting to the inclusion 
 of the housing unit in the area, for the reason that the 
 property would not benefit from the improvements. 

    The governing body shall make a determination of the 
 objection within 60 days of its filing.  Pending its 
 determination, the governing body may delay adoption of the 
 ordinance or it may adopt the ordinance with a reservation that 
 the landowner's property may be excluded from the housing 
 improvement area or fee when the determination is made. 

    Subd. 5.    Appeal to district court.  Within 30 days 
 after the determination of the objection, any person aggrieved, 
 who is not precluded by failure to object before or at the 
 hearing, or whose failure to object is due to a reasonable 
 cause, may appeal to the district court by serving a notice upon 
 the mayor or city clerk.  The notice shall be filed with the 
 court administrator of the district court within ten days after 
 its service.  The city clerk shall furnish the appellant a 
 certified copy of the findings and determination of the 
 governing body.  The court may affirm the action objected to or, 
 if the appellant's objections have merit, modify or cancel it.  
 If the appellant does not prevail upon the appeal, the costs 
 incurred are taxed to the appellant by the court and judgment 
 entered for them.  All objections are deemed waived unless 
 presented on appeal. 

    HIST: 1996 c 471 art 8 s 9; 2000 c 490 art 11 s 4,5 

==428A.14 
     428A.14 Improvement fees authority; notice and hearing. 

    Subdivision 1.    Authority.  Fees may be imposed by the 
 implementing entity on the housing units within the housing 
 improvement area at a rate, term, or amount sufficient to 
 produce revenue required to provide housing improvements in the 
 area to reimburse the implementing entity for advances made to 
 pay for the housing improvements or to pay principal of, 
 interest on, and premiums, if any, on bonds issued by the 
 implementing entity under section 428A.16.  The fee can be 
 imposed on the basis of the tax capacity of the housing unit, or 
 the total amount of square footage of the housing unit, or a 
 method determined by the council and specified in the resolution.
 Before the imposition of the fees, a hearing must be held and 
 notice must be published in the official newspaper at least 
 seven days before the hearing and shall be mailed at least seven 
 days before the hearing to any housing unit owner subject to a 
 fee.  For purposes of this section, the notice must also include:

    (1) a statement that all interested persons will be given 
 an opportunity to be heard at the hearing regarding a proposed 
 housing improvement fee; 

    (2) the estimated cost of improvements including 
 administrative costs to be paid for in whole or in part by the 
 fee imposed under the ordinance; 

    (3) the amount to be charged against the particular 
 property; 

    (4) the right of the property owner to prepay the entire 
 fee; 

    (5) the number of years the fee will be in effect; and 

    (6) a statement that the petition requirements of section 
 428A.12 have either been met or do not apply to the proposed fee.

    Within six months of the public hearing, the implementing 
 entity may adopt a resolution imposing a fee within the area not 
 exceeding the amount expressed in the notice issued under this 
 section. 

    Prior to adoption of the resolution approving the fee, the 
 condominium associations located in the housing improvement area 
 shall submit to the implementing entity a financial plan 
 prepared by an independent third party, acceptable to the 
 implementing entity and associations, that provides for the 
 associations to finance maintenance and operation of the common 
 elements in the condominium and a long-range plan to conduct and 
 finance capital improvements. 

    Subd. 2.    Levy limit.  Fees imposed under this section 
 are not included in the calculation of levies or limits on 
 levies imposed under any law or charter. 

    HIST: 1996 c 471 art 8 s 10; 2000 c 490 art 11 s 6 

==428A.15 
     428A.15 Collection of fees. 

    The implementing entity may provide for the collection of 
 the housing improvement fees according to the terms of section 
 428A.05. 

    HIST: 1996 c 471 art 8 s 11; 2000 c 490 art 11 s 7 

==428A.16 
     428A.16 Bonds. 

    At any time after a contract for the construction of all or 
 part of an improvement authorized under sections 428A.11 to 
 428A.20 has been entered into or the work has been ordered, the 
 implementing entity may issue obligations in the amount it deems 
 necessary to defray in whole or in part the expense incurred and 
 estimated to be incurred in making the improvement, including 
 every item of cost from inception to completion and all fees and 
 expenses incurred in connection with the improvement or the 
 financing. 

    The obligations are payable primarily out of the proceeds 
 of the fees imposed under section 428A.14, or from any other 
 special assessments or revenues available to be pledged for 
 their payment under charter or statutory authority, or from two 
 or more of those sources.  The governing body of the city, or if 
 the governing bodies are the same or consist of identical 
 membership, the authority may, by resolution adopted prior to 
 the sale of obligations, pledge the full faith, credit, and 
 taxing power of the city to bonds issued by it to ensure payment 
 of the principal and interest if the proceeds of the fees in the 
 area are insufficient to pay the principal and interest.  The 
 obligations must be issued in accordance with chapter 475, 
 except that an election is not required, and the amount of the 
 obligations are not included in determination of the net debt of 
 the city under the provisions of any law or charter limiting 
 debt. 

    HIST: 1996 c 471 art 8 s 12; 2000 c 490 art 11 s 8 

==428A.17 
     428A.17 Advisory board. 

    The implementing entity may create and appoint an advisory 
 board for the housing improvement area in the city to advise the 
 implementing entity in connection with the planning and 
 construction of housing improvements.  In appointing the board, 
 the implementing entity shall consider for membership members of 
 condominium associations located in the housing improvement 
 area.  The advisory board shall make recommendations to the 
 implementing entity to provide improvements or impose fees 
 within the housing improvement area.  Before the adoption of a 
 proposal by the implementing entity to provide improvements 
 within the housing improvement area, the advisory board of the 
 housing improvement area shall have an opportunity to review and 
 comment upon the proposal. 

    HIST: 1996 c 471 art 8 s 13; 2000 c 490 art 11 s 9 

==428A.18 
     428A.18 Veto powers. 

    Subdivision 1.    Notice of right to file objections.  
 The effective date of any ordinance or resolution adopted under 
 sections 428A.13 and 428A.14 must be at least 45 days after it 
 is adopted.  Within five days after adoption of the ordinance or 
 resolution, a summary of the ordinance or resolution shall be 
 mailed to the owner of each housing unit included in the 
 multiunit housing improvement area.  The mailing shall include a 
 notice that owners subject to a fee have a right to veto the 
 ordinance or resolution by filing the required number of 
 objections with the city clerk before the effective date of the 
 ordinance or resolution and that a copy of the ordinance or 
 resolution is on file with the city clerk for public inspection. 

    Subd. 2.    Requirements for veto.  If residents of 35 
 percent or more of the housing units in the area subject to the 
 fee file an objection to the ordinance adopted by the city under 
 section 428A.13 with the city clerk before the effective date of 
 the ordinance, the ordinance does not become effective.  If 
 owners of 35 percent or more of the housing units' tax capacity 
 subject to the fee under section 428A.14 file an objection with 
 the city clerk before the effective date of the resolution, the 
 resolution does not become effective. 

    HIST: 1996 c 471 art 8 s 14 

==428A.19 
     428A.19 Annual reports. 

    Each condominium association located within the housing 
 improvement area must, by August 15 annually, submit a copy of 
 its audited financial statements to the implementing entity.  
 The city may also, as part of the enabling ordinance, require 
 the submission of other relevant information from the 
 associations. 

    HIST: 1996 c 471 art 8 s 15; 2000 c 490 art 11 s 10 

==428A.20 
     428A.20 Special assessments. 

    Within a housing improvement area, the governing body of 
 the city may, in addition to the fee authorized in section 
 428A.14, special assess housing improvements to benefited 
 property.  The governing body of the city may by ordinance adopt 
 regulations consistent with this section. 

    HIST: 1996 c 471 art 8 s 16 

==428A.21 
     428A.21 Sunset. 

    No new housing improvement areas may be established under 
 sections 428A.11 to 428A.20 after June 30, 2005.  After June 30, 
 2005, a city may establish a housing improvement area, provided 
 that it receives enabling legislation authorizing the 
 establishment of the area. 

    HIST: 1996 c 471 art 8 s 17; 2000 c 490 art 11 s 11