HomeMy WebLinkAbout[12a] 2009 Legislative PrioritiesCITY pF 1T.,1(k~B.NN
MEETING DATE:
AGENDA ITEM:
SUBMITTED BY:
February 5, 2009
Council Agenda Item 11 a
2009 Legislative Priorities
Administration
BOARD/COMMISSION/COMMITTEE RECOMMENDATION:
PREVIOUS COUNCIL ACTION: The Mayors and Administrations met in a brainstorming session to
discuss potential items for listing as 2009 Legislative Priorities. This list was then compiled and discussed
at the Intergovernmental Meeting on January 27, 2009.
BACKGROUND INFORMATION: Since the Intergovernmental Meeting last week, the proposed
resolution for joint Legislative Priorities has been modified. The category for tax exempt properties has
been changed to payment in Lieu of Taxes and it requests support for legislation that provides some sort
of financial relief for taxes lost for large governmental or non profit businesses. This relief can be
accomplished through the LGA formula or some other means.
The other item that has changed was the listing of required unfunded mandates. Rather than list
specific items, we have attached the League of MN Cities list for reference. We are simply asking for
relief from some of the mandates.
A new category has been added, Street Improvement District Authority. This a provision that would
allow the City's to start collecting funds for street improvements. The City's have been discussing this in
the past, but this is one charge that must be implemented regionally or it does not work. The League is
proposing implementation and the City's are proposing to support such.
The Water Conservation Pricing Legislation is an important piece to the City's. This mandate requires
that the City tiers their water rates to charge non residential customers more for the water use. St.
Joseph had already implemented a plan, that being the water line charge and then charging separately
for water, the more you use the more you pay. The base line charge is an equal sharing of the cost to
run the water operation. Based on the new legislation, that rate would not meet the requirements. The
City would specifically have to charge 25% more than residential customers. For some commercial
customers this would not be economical and they may not be able to continue. The City is supportive
of water conservation, but we need to balance the impact of business viability with implementing tiered
rates.
f3UDGET/FISCAL IMPACT:
ATTACHMENTS: 2009 Legislative Priorities and LMC Mandates
REQUESTED COUNCIL ACTION: Authorize execution of the resolution supporting the 2009 Joint
Legislative Priorities.
Joint Resolution of the Central MN Cities of St. Cloud, Sartell, Sauk Rapids,
Waite Park, St. Joseph, St. Augusta, Rockville Advocating Support for Certain
Legislative Issues and Proposals of Common Interest or Concern
to the Central Minnesota Region
WHEREAS, the Central Minnesota-St. Cloud area has a strong history of collaboration
and coordination amongst its local units of government to facilitate well planned communities
that are provided municipal services in the most cost-effective and environmentally responsible
manner possible; and
WHEREAS, to better assist our State legislative leaders, we have collectively identified
certain legislative issues and proposals that are of specific impact and interest to our
communities to enable them to respond in a manner that strengthens the partnership between
our local unites of government and the State in fostering the continuation and enhancement of
socially, economically, and culturally vibrant.
NOW THEREFORE BE IT RESOLVED, by the Councils for the Cities of St. Cloud, Sartell,
Sauk Rapids, Waite Park, St. Joseph, St. Augusta, and Rockville, Minnesota, that the following
legislative issues and proposals are of common interest or concern to the Central Minnesota
Region and therefore officially support and advocate the following actions of the MN State
Legislature:
CENTRAL MN SPECIFIC ISSUES:
1. Local Government Aid: OPPOSE reductions to the LGA formula and funding that
was approved in the 2008 legislative session.
2. Tax Exempt Credit Proeram: SUPPORT legislation to assist Cities with
disproportionately high amounts of governmental and nonprofit business properties
such as Colleges, Universities and Hospitals.
3. Levy Limits: SUPPORT eliminating levy limits, or at a minimum modify levy limits to
enable cities to levy on organic growth. OPPOSE making levy limits more restrictive.
4. Market Value Homestead Credit (MVHCI: SUPPORT legislation that provides the
relief directly to the property owners rather than through the local units of
government. Any reductions in MVHC should result in a reduction in relief to the
property owner benefiting from credit.
5. State Mandate Relief: SUPPORT legislation that reduces or eliminates unfunded
and/or onerous mandates to local governments. Legislators are urged to seek
direction from and reference the comprehensive listing of laws compiled by the
League of MN Cities.
State Airports Fund: SUPPORT the restoration of the $15 Million to the State
Airports Fund.
Water Conservation Pricine Leeislation: SUPPORT legislation to repeal the water
conservation pricing legislation that was enacted in the 2008 legislative session.
Photo Cop: SUPPORT legislation that allows cities the ability to utilize the Photo
Cop technology.
9. Civic Center: SUPPORT additional funding or financial incentives that could be used
towards the St. Cloud Civic Center expansion project.
10. Reeional Collaboration: SUPPORT regional efforts of local government jurisdiction
by providing additional incentives that encourage these types of effort.
11. Street Improvement District Authority: SUPPORT legislation that would give
municipalities the authority to establish street improvement districts to collect fees
from property owners within a district to fund municipal street maintenance,
construction, reconstruction and facility upgrades
12. Green Acres Leeislation: SUPPORT the repeal or reform of the Green Acres
legislation adopted last Legislative session.
13. Green House Gas Reduction Initiatives: SUPPORT land use reform that includes the
following initiatives:
a. Encourage fewer and shorter vehicle trips, encourages the use of transit and
non-motorized forms of transportation through land use that targets housing
development near existing employment, and targets new commercial and
industrial development near existing housing;
b. Control urban sprawl by prohibiting new urban development in townships and
unorganized territory;
c. Prohibit the incorporation of new municipalities;
d. Encourage the establishment of urban growth areas that are determined by
municipalities based on projected population or economic development and the
municipalities' ability to do land use planning and provide services upon
development of the area;
Encourage land use planning and implementation through the provision of
grants to help municipalities plan with the reduction of vehicle miles travelled as
its primary goal;
Encourage redevelopment of Brownfield properties through the expansion of
tax increment financing, which would encourage higher commercial and
industrial densities, as well as the use of other economic development tools;
and
Remove acreage minimums for new school construction and encourages
policies that promote the re-use or expansion of current school facilities where
possible.
Adopted this day of , 2009, by the Council for the City of St.
Cloud.
Mayor
City Clerk
Adopted this day of , 2009, by the Council for the City of
Bartell.
Mayor
City Clerk
Adopted this day of , 2009, by the Council for the City of
Sauk Rapids.
Mayor
City Clerk
Adopted this day
Waite Park.
2009, by the Council for the City of
Mayor
City Clerk
Adopted this day of , 2009, by the Council for the City of St.
Joseph.
Mayor
City Clerk
Adopted this day of , 2009, by the Council for the City of St.
Augusta.
Mayor
City Clerk
O®
LEAGUE of CONNECTING & INNOVATING
MINNESOTA S[NCE 1913
CITIES
MANDATES AFFECTING
MINNESOTA CITIES
The following list represents a compilation of some of the state and federal laws that directly
impact city government operations in Minnesota. The list does not represent every law that
impacts city operations nor does the list necessarily reflect the annual legislative agenda o the
Lead e ofMinnesota Cities. (Updated //z9~o9)
PERSONNEL/EMPLOYEE RELATIONS
Aa~re~ate value of benefits (M.S 471 6161 subd 51-Cities are prohibited from reducing the
aggregate value of benefits in a group insurance contract without the agreement of the
union. Court and arbitration decisions have interpreted this to mean that cities cannot
change a provider network or increase a co-pay~ven when required by the insurance
carrier -- without negotiating this with the union.
Pay equity, implementation and reporting(M S 471 991-99}-Personnel costs have been
increased by the state requirement that cities and other local governments conduct job
evaluation studies, report on implementation, and meet equitable compensation standards
as defined in state rules.
Workers' Compensation (M.S.176?-Cities are responsible for enforcing state requirements for
workers' compensation for local contractors and licensees.
Public pensions -Basic and Coordinated plans (M S 353 27~--Cities are required to participate in
the state Public Employee Retirement Association (PERA), that requires city employer
contribution rates of 11.78 percent for Basic plan members and 5.53 percent (6.75 for
2009) for Coordinated plan members.
Public pensions-Police and Fire plan (M S 353 65~Cities are required to participate in the state
PERA Police and Fire Plan that requires a city employer contribution rate of 9.3 percent
(14.1 for 2009).
Continuation of health and life insurance coverage following termination (M S 62A 17 M S
471.61 subd. 2b and M.S. 61A.092)--Cities must comply with a state requirement to offer
continued health and life insurance coverage to former employees following voluntary or
involuntary termination.
145 UNIVERSITY AVE. WEST PHONE: (651) 281-1200 FA?C: (6S1) 281-1299
ST. PAUL, MN 55103-2044 TOLL FAEE: (800) 925-1122 WEB: WWW.LMC.ORG
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Continued health insurance for injured public safety officers (M.S. 299A.465)-Cities must
provide continued health insurance benefits for police officers and firefighters injured in
the line of duty. Prior to 2003, the law required the Department of Public Safety to
reimburse cities for the full cost of administering this benefit. Since 2003, the
reimbursement to cities has been on a pro-rata basis.
Prevailing wages paid on public contracts (M.S. ].77.4]. and A.G. Op.415c1)-The state's Davis-
Bacon requirements (prevailing wage requirements), as interpreted by the Attorney
General, can increase the costs of city contracts.
Veterans preference (M.S. 197.447, 455, 46, 48, 481 and 192.26)---Cities are required to give
preferential treatment to veterans for hiring, protection from discharge, fully paid leave
while challenging any discharge or disciplinary action, and full salary for up to three weeks
for all city employees serving in the military reserves or on active duty.
Mandatory Binding Arbitration (M.S. 179A.16, .18~Employee classes such as peace officers
and firefighters are not allowed to strike. Rather, cities are mandated to comply with
the compensation and benefit determinations of an appointed arbitrator, even if the
elected representatives of the city's residents determine that a strike would be
preferable.
PERA membership and service credit (M.S. 353.01 subd 2a)-Employees who earn more than
$425 per month are eligible to participate in PERA. This threshold has not been adjusted
since 1988, which results in more part-time workers being included in the retirement
system.
PUBLIC SAFETY
Peace officer standards and trainingsPOST) (M.S.626.84-863~Cities are required to assure that
their public safety personnel complete mandated pre-service and continuing in-service
training to maintain licensed law enforcement officer status.
Temporary detention facilities/detoxification centers (M.S. 241.021)-City facilities for temporary
holding of persons who have been arrested must meet state standards for the building and
its maintenance.
Confined space entr~(OSHA~-State and federal standards are imposed for situations where a
confined space (such as a manhole) is entered. For example, there is a requirement that a
minimum of two employees are present whenever a confined space is entered.
Animal control (M.S.346, 347-State regulations set standards for facilities used for animal
control, procedures for apprehending animals, and minimum holding periods.
"First responder" and firefighting by city employees on state hi h~~ ways-State reimbursement for
these public safety services does not adequately cover the costs of performing these
services.
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800 megahertz radio system (M.S. 473.891-.905)-Regional public safety radio communications
system for which metro-area cities must implement plans.
Ambulance staffin a~quipment requirements (M S 144E 101}-Governed by the Emergency
Medical Services Board -most recently changed in 2008.
Suspense file reduction (M.S. 299C.10-1 l )-Requires peace officers and community corrections
agencies to immediately collect identifying information relating to persons arrested or
appearing in court on certain charges. ,information includes fingerprints and known aliases.
Identification data must be furnished to the Bureau of Criminal Apprehension.
Peace officers post traumatic stress syndrome benefit (M S 299A 411)-Cities are required to pay
for unreimbursed loss of wages during the time of the post-traumatic disability, not to
exceed one year and for the unreimbursed expenses for medical treatment, including
psychiatric or psychological counseling to relieve the effects of the post-traumatic stress
syndrome, not to exceed one year.
Fine Distribution (M.S. 357.021 subd. 6~--Minnesota statutes define the distribution of fine
revenue for enforcement of state laws. Although local enforcement costs have increased in
recent years, the distribution to cities has not been modified. In addition, recent state-
imposed traffic citation surcharges have increased the challenges of citations which
increases local prosecution costs.
Notification of 3.2 percent liquor licensees (M S 340A 403-Cities are required to notify the
commissioner of public safety within 10 days of issuing a 3.2 malt liquor license.
Must use certain colors for police uniforms and police vehicles (M S 626 88 169 981-State law
sets the colors allowed for police officer uniforms. Uniforms must be predominantly blue,
brown, or green. Police department motor vehicles used in patrol must be predominantly
blue, brown, green, black, or white. The vehicle must display in letters at least two-and-a-
half inches tall the governmental unit's identity on both front-door panels and on the rear of
the vehicle. Each vehicle must have its own identifying number on the rear of the vehicle.
Use of part-time police officers restricted (M S 626 8468)---State law limits the use of part-time
police officers. A law enforcement agency that employed a licensed part-time peace officer
that was in the process of training an individual to become a licensed part-time police
officer on Feb. 1, 1999, may continue to do so. No city may employ more part-time police
officers than it employed in calendar year 1996, 1997, or 1998.
Profits from sale of firearms must be shared with county and state (M S 609 5313)-Law
enforcement agencies can sell firearms, ammunition, and accessories to federally licensed
firearms dealers or use them for law enforcement purposes. 'The proceeds are distributed 70
percent to the law enforcement agency, 20 percent to the county attorney, and 10 percent to
the state.
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Cities must train and eauin firefighters (29 CFR 1910, M.S. 299W.01 & 299W.02~While there
is no state licensing or certification requirement for firefighters, federal and state
Occupational Safety and Health Administration (OSHA) rules contain minimum training
and equipment requirements. OSHA requires that employees be appropriately trained to
manage the hazards they may encounter on the job.
Dangerous dog enforcement (M.S. 347.50 to 347.56)-Animal control authorities or law
enforcement agencies must now enforce dangerous dog laws whether or not there is a local
ordinance on the issue.
Prosecution for ordinance violations (M.S.412.861~-Cities are responsible for prosecuting all
ordinance violations. The suit is brought in the name of the city upon complaint and
warrant as in other criminal cases.
Hazardous buildings (M.S. 463)-To enforce the city's order to repair or raze a hazardous
building, the city must initiate and proceed with a civil court action.
BUILDING CODES
Uniform buildin cg ode (UBC) (M.S.13)-Cities are required to adopt and enforce a state uniform
building code which regulates heating, ventilation, energy conservation, electric, fire
standards, and plumbing. Handicap accessibility is one of the requirements which must be
assured for public buildings. Cities no longer receive excess building code fees to help
train local officials.
Minor residential improvements M.S. 16B.63)-Limits permit fees to $15 or five percent,
whichever is greater, for improvement, installation or replacement of a residential fixture or
appliance that does not modify electric or gas service, has a labor cost of $500 or less, and
is done by the homeowner or a licensed contractor.
Building code administration (M.S. 16B.65)-Municipalities are given specific direction on how
to designate a certified building official who is responsible for code administration in the
city.
Bleacher Safety (M.S. 326B.112 and rules)-Establishes safety requirements that apply to all
bleachers over 30 inches above grade or the floor below. Municipalities are required to
provide the commissioner of administration with a signed certification of compliance
prepared by a qualified and certified building official or state licensed design professional
that certifies the bleachers have been inspected, are in compliance with the safety
requirements, and are structurally sound.
Pool Safety (M.S. 144.1222)---Requires cities to inspect and maintain municipal pools to new
safety standards that include the installation of secure drain covers and the installation of
outlets or drains that are unblockable. The outlet/drain requirements are effective for pools
under four feet on January 1, 2009 and for deeper pools on January 1, 2011.
Page 5
Development & Permit Fees Resort (M.S. 326B.145)-Cities are required to report in detail all
fees collected related to building and development in their communities if the cumulative
fees collected exceeded $5,000 in the reporting year. In addition, the report requires a
comprehensive identification of all costs and expenses related to providing services related
to those activities.
DATA PRACTICES/OPEN MEETING LAW
Minnesota Government Data Practices Act (M.S.13)-Nearly all government data is to be
considered to be "public" under the Minnesota Government Data Practices statutes and
public access to, and reproduction of this information is required. The costs and fees
charged by local units of government for this data are minimal and limited.
Open Meeting Law (M.S. 471.705~ities are generally required to open all of their meetings to
the public. State law includes specific requirements for meeting notices, agendas, and
minutes. Unlike violations of the law by the Legislature, city officials may be sued for
alleged violations.
Job reference liability (Chapter 137 2004 Session Laws)-Regulates city disclosure of
employment information regarding current and former employees, requiring that disclosure
procedures and policies be implemented to assure that information provided is complete
and accurate; that disclosure of information regarding acts of violence, etc. are to be
provided only in writing; that the city obtain authorization from current or former
employee to the release of such information prior to disclosing public personnel data,
evaluations conducted prior to separation and employee responses, employee's personnel
record and reasons (in writing) for employment separation; and provide current and former
employees by mail a copy of employment information disclosed and to whom it was
disclosed.
Compliance with new data practice government data classifications (Chanter 290 2004 Session
Laws -Information such as payroll time sheets or other data that would reveal city of
residence of current and former employees, volunteers and independent contractors; data
regarding employees of secure treatment facilities and their immediate family members
that would reveal where they have received training or attended educational courses if such
data would reveal work assignments, home address or phone number, location during non-
work hours, or location of immediate family members; nonpublic classification status for
preliminary and final market value appraisals of property owned by the city until a
purchase agreement has been finalized or appraisals are exchanged; release to domestic
abuse victim and victim's attorney of written police report and arrest data related to
domestic abuse prosecution; implementation of procedures for closing, tape recording and
maintaining recordings of meetings to receive security briefings.
ELECTIONS
Administrative remedy for violations of fair campaign practices (Chanter 277 2004 Session
Laws Cities are subject to payment of costs for the Office of Administrative Hearings to
consider such complaints regarding any ballot question or elective office.
Page 6
Co ~liance with federal Help America Vote Act (HAVA) (Chapter 293, 2004 Session Laws)-
Cities are required to comply with HAVA voter registration absentee voting, military and
overseas voter record reporting procedures as well as with assisted voting equipment
requirements. Cities that administer absentee voting are to be open extended hours the day
before election.
Conducting elections (M.S. 205}-State requirements determine when and how cities conduct
elections. These laws apply to: primary, regular and special elections; elections for
county, state, federal, city and some school races; the timing of the election; publication
and posting of the election; the hours that polls must remain open; state-certified voting
equipment; time lines for testing of voting equipment; preparation of ballots; absentee
ballot procedures; and same-day voter registration.
Election,~ud eg_s (M.S. 204B)-Head election judge must be present in the polling place all day.
Other judges may serve shifts. Head election judges must also obtain additional training
(extra 2hours--for which the head judge must be paid, plus any additional transportation
costs for attending the training). State law requirements determine how many election
judges are required, election judge duties, and what election judges must be paid.
Absentee ballots for overseas voters (M.S. 203B.16-17~Overseas voters (military or civilian)
may submit absentee ballot applications by fax or email (if Secretary of State determines
that security concerns have been adequately addressed) as well as in writing -meaning the
local election administrator must set up a process for receiving and processing fax and
email absentee applications and mailing out ballots, return envelopes, etc. to additional
voters living outside the U.S.
Absentee ballots for subsequent elections (M.S. 203B.16-171~In future elections (beginning in
2001) local election administrators must automatically arrange to mail out absentee ballots
for any general or special election for the remainder of the calendar year to overseas voters
who previously in 2001 applied for an absentee ballot for the primary that year.
Recounts (M.S. 204C.35~Changes to when automatic recounts must be recounted for federal,
state and judicial elections means that beginning in 2001, if, in a primary, the difference in
votes cast is less than one-half of one percent of the total number of votes counted for that
nomination - or if the difference is 10 votes or less and the total of votes cast is 400 or less,
the canvassing board (city council in most cases) must conduct a recount if the difference
would determine the outcome. In a general election, if the difference is less than one-half
of one percent or ten votes or less and the total number of votes cast is 400 or less, the
canvassing board must also conduct a recount.
Use of public facilities for elections (M.5.202A.19, subd. 4, 202A.192, 204B.16, subd. 6)--City
councils must make their public facilities available for holding holding precinct caucuses
and legislative district or county conventions. These facilities (including parking) must be
available for city, county, state, and federal elections as well. A local government may
charge no more than the lowest amount it charges any other group.
Page 7
Election equipment and supplies (M.S. 204B.1.8 204B.27-.29. 204C.26 204B.32 subd. 1 (c))-
The city should supply, at city expense, necessary election equipment and supplies. Each
precinct should receive all necessary supplies.
Ballot Question Titles (Minn. R. 8250.0390)-The city attorney must review the title of a ballot
question to determine whether it accurately describes the question asked; the title cannot be
used on the ballot until approved by the city attorney.
Ballot. question petitions (Minn. R. 8205.1040, 8205.1050)-The city clerk must accept petitions
for ballot questions. The clerk must provide the person filing the petition with a receipt for
the petition. The clerk must also inspect the form of the petition to determine if it complies
with all form and filing requirements, including determining whether the petition has been
signed by the required number of signatories and whether the signatories meet the
applicable eligibility requirements. The clerk must complete the verification of a petition as
soon as practicable but no later than ten working days after the day on which the petition
was filed.
EMERGENCY MANAGEMENT
Compliance with emergency medical service training requirements (Chanter 144 2004 Session
Laws ities must comply with eligibility requirements for first responder trainers and to
provide a physician at training and to conform to other provisions related to modifications
to salary limits for ambulance service personnel; repeal on restrictions on maximum period
of service for receipt of credit awards; and other measures related to local ambulance
service.
Federal NIMS & MNIMS com liant 44CFR Part 201 MN Stat 115E.01-115E.11 ities must
certify that they are compliant with NIMS by adopting a resolution formally recognizing
NIMS principles and policies. Cities must train members of their emergency management
system (including staff and elected officials) using NIMS standards.
Must Adopt Emergency Mana eg ment plan (MN Stat 12.25--State law requires each city to
establish a local organization to perform emergency management functions.
ENVIRONMENT
Wastewater treatment standards (PCA-MN Rules Chapters 7050/7052)-State requirements
exceed those set by the federal government for many standards affecting wastewater
treatment. Extensive and complicated reporting requirements are mandated by the
pollution control agency.
Wetlands (MN Rules Chapter 8470)-The Wetland Conservation Act must be administered by a
city, county, or other local government unit including wetlands replacement, environmental
review requirements, mitigation and enforcement.
Solid Waste Management (M.S. 115A, MN Rules Chapters 7035/7048-State law specifies the
existence and parameters of local recycling programs, waste collection practices, etc.
Page 8
Drinking water standards (MN Rules Chapter 4720; 40CFR 141/1.42)-State and federal
regulation of drinking water requires frequent testing and reporting to assure adherence to
standards.
Surface water management organizations or plan (M.S.103)-Cities are required to participate in
the development and costs of a comprehensive water management plan.
Waste disposal facilities (PCA-MN Rules Chapters 7001/7048)-State and federal regulation
mandates most aspects of waste to energy facilities and sanitary landfills.
Hazardous substance transportation M.S.221 and federal SARA)-State and federal regulations
govern the transportation of hazardous substances. Cities are required to select routes for
transport, and police those routes, even though they are frequently not city streets.
Minnesota Clean Indoor Air Act (M.S.144.411-17)-Cities are required to comply with and
enforce the act within their public buildings.
NPDES Phase II permitting (Federal Clean Water Act; MN Rules Chapter 7050}-public
education, management, mitigation and enforcement of federal clean water requirements.
Wastewater Permit Requirements (Laws 2002, chapter 220, article 8, section 15 and chapter 374,
article 6, section 15)-Increase in fees to comply with permit requirements.
LAND USE/PLANNING/ZONING
Land use plannin (M.S. 473HI~Cities in the seven-county metro area are required by the state to
have a comprehensive land use plan.
State zoning standards (M.S. 463.365)-Local zoning decisions for manufactured homes, group
homes, earth-sheltered homes, etc., are limited by the state.
Flood Main man~ement (M.S. 104.04~The commissioner of natural resources is authorized to
require and approve local government reporting on flood plain management ordinances.
Costs associated with imposing local ordinances are usually borne by the local government.
Flood insurance (M.S. 104.08-The state requires that all local governments subject to recurrent
flooding participate in the national flood insurance program.
Shoreland regulations (M.S. 105.485)-The commissioner of natural resources is authorized to
require and approve local government reporting on shoreland management ordinances, and
monitor ongoing land use in the vicinity of the shoreland.
Must plan for growth in accordance with the President Theodore Roosevelt Memorial Bill to
Preserve Agricultural, Forest, Wildlife, and Open Space Land Act (M.S. 462.357, 462.355,
103G.005 Requires cities to consider certain open space goals promoted by the Act
when adopting a comprehensive plan or amending any official control.
Page l0
in court, and prevails, the court may -and in some situations must -pay the person's court
costs and attorney's fees.
Cities must pay for landowners appraisals in eminent domain proceedings (M.S. 117.036 Subd
2~-A land owner may obtain an appraisal by a qualified appraiser of the property
proposed to be acquired. The owner is entitled to reimbursement for the reasonable costs of
the appraisal from the acquiring authority up to a maximum of $1.,500 for single family and
two-family residential property and minimum damage acquisitions and $5,000 for other
types of property, provided that the owner submits to the acquiring authority the
information necessary for reimbursement including a copy of the owner's appraisal, at least
five days before a condemnation commissioners' hearing.
Reporting all construction and development related fees. (M.S. 16B.685)-Cities must report
annually to the Department of Administration all construction and development-related
fees collected, information on the number and valuation of the units for which fees were
paid, the amount of permit fees, plan review fees, administrative fees, engineering fees,
infrastructure fees, other related fees, and the expenses associated with the municipal
activities for which the fees were collected. Although this requirement applies primarily to
building permit fees, it also includes certain land use fees. Cities that collect $5,000 or less
in fees are exempt from this filing requirement.
Hearing for land use and zoning decisions. (M.S. 462.357, 462.3595, 462.3597)-Prior to adopting
or amending a zoning ordinance, issuing a conditional use permit, or granting an interim
use permit, the planning agency or city council must hold a public hearing. Notice of the
hearing must be published in the newspaper. In some cases, notice must be mailed to
property owners within 350 feet of the subject property.
Hearing for subdivision applications (M.S. 462.358)-Prior to preliminary approval of a
subdivision application, there must be a public hearing. Notice of the hearing must be
published.
PUBLICATION
Notice of election filing dates (M.S. 205.13-At least two weeks before the first day to file
affidavits of candidacy, the municipal clerk is required to publish a notice stating the first
and last dates on which affidavits of candidacy may be filed in the clerk's office and the
closing time for filing on the last day for filing. The clerk shall post a similar notice at least
ten. days before the first day to file affidavits of candidacy.
Sample ballot publication (M.S. 205.16)-For every municipal election, the municipal clerk is
required at least one week before the election to publish a sample ballot in the official
newspaper of the municipality, except that the governing body of a fourth class city or a
town not located within a metropolitan county as defined in section 473.12] may dispense
with publication.
Notice of Proposed Taxes (M.S. 275.065 Subd. Sa.)-A city that has a population of more than
2,SOOis required to advertise in a newspaper a notice of its intent to adopt a budget and
Page 9
Feedlot zoning (M.S. 462.351 subd ] g)-When adopting land use controls related to feedlots cities
must prepare a report on the economic effects from specific provisions in the feedlot
ordinance. Upon completion, the report must be submitted to the commissioners of
employment and economic development and agriculture along with the proposed
ordinance.
Cities must provide a Board of Zoning Adjustment and Appeals to reconsider zoning decisions
they have already made (M.S. 462.354 subd 2, 442.351 subd 6,~-When a city has a zoning
ordinance, it must, by ordinance, create a Board of Appeals and Adjustments. The board
hears appeals where an error is alleged in the administration of the zoning ordinance, and
hears requests for variances from the literal provisions of the ordinance. Variances can only
be granted by the Board of Appeals and Adjustments
Cities must conduct studies when imposing moratoria (M.S. 462.255 subd 41-A city council may
adopt an interim ordinance (or moratorium) only if a study is being conducted or has been
authorized.
Cities face restriction in the collection of park and open. space dedication fees from developers
~M.S. 462.358 Subd 2b~ The cash fee must now be based on fair market value of the
unplatted land for which park fees have not already been paid. In order to collect these
fees, cities must also adopt a capital. improvement budget, have a parks and open space
plan or a parks and open space component in its comprehensive plan, place the cash
payments in a special fund to be used only for the purposes for which the money was
obtained, use the cash payments only for the acquisition and development or improvement
of parks, recreational facilities, playgrounds, trails, wetlands, or open space based on the
approved park systems plan. Cash payments must not be used for ongoing operation or
maintenance of parks, recreational facilities, playgrounds, trails, wetlands, or open space.
Eminent domain law requires cities to offer to sell unneeded property acquired by eminent
domains to original owners at on final purchase price (M.S. 117.226)-If a city determines
that property acquired through eminent domain is no longer needed for a public purpose,
the city must offer to sell the property back to the person it was acquired from at the
original price or the current fair market value, whichever is lowest.
Cities must pav some relocation costs if eminent domain is used (42 USCA 4601-4655, M.S.
117.52 Subd lai~Both state and federal law protect property owners and tenants who are
required to move because of eminent domain proceedings; cities, or condemning
authorities, must pay relocation costs for the people who must move. In some limited
circumstances, owner-occupants may waive relocation benefits. If a person must relocate
but does not accept the city's relocation offer, the state law now requires that a city must
seek resolution using state contested case procedures and an administrative law judge.
Cities in contested eminent domain proceedings may need to pav landowners costs and attorney's
fees (M.S. 117.031~If a person challenges a city's condemnation proceeding or amount
Page I 1
property tax levy at a public hearing, if a public hearing is required. The notice must be
published not less than two business days nor more than six business days before the
hearing. The advertisement must be at least one-eighth page in size of a standard-size or a
tabloid-size newspaper. The advertisement must not be placed in the part of the newspaper
where legal notices and classified advertisements appear. The advertisement must be
published in an official newspaper of general circulation in the taxing authority. The
newspaper selected must be one of general interest and readership in the community, and
not one of limited subject matter. The advertisement must appear in a newspaper that is
published at least once per week. In addition to other requirements, a city having a
population of more than 2,500 must show in the public advertisement the current local tax
rate, the proposed local tax rate if no property tax levy increase is adopted, and the
proposed rate if the proposed levy is adopted.
Charter Election Publication Requirement (M S 410 101-The notice of a charter election is
required to contain the complete charter and shall be published once a week for two
successive weeks in the official newspaper of the city, or if there be none, in a legal
newspaper of general circulation in the city. For cities of the first class, the publication
shall be made in a newspaper having an aggregate regular paid circulation of at least
25,000 copies. The governing body may in addition thereto publish the notice in any other
legal newspaper published in the city.
Charter Amendments By Ordinance (M.S. 410 121-Within one month of receiving a
recommendation to amend the charter by ordinance, the city must publish notice of a public
hearing on the proposal and the notice must contain the text of the proposed amendment.
The city council must hold the public hearing on the proposed charter amendment at least
two weeks but not more than one month after the notice is published.
Council proceedings (M.S. 412.191 subd 3?-The council, after every regular or special meeting,
shall publish the official council proceedings or a summary conforming to section 331A.01,
subdivision 10. As an alternative to publication, the city may mail, at city expense, a copy
of the proceedings to any resident upon request. The publication shall occur within 30 days
of the meeting to which the proceedings relate. Cities with a population of less than 1,000
according to the latest federal census are not required to comply with this section, but may
do so at their discretion.
Ordinances (M.S. 412.191, subd 41-Every ordinance must be published once in the official
newspaper. In the case of lengthy ordinances, or ordinances which include charts or maps,
if the city council determines that publication of the title and a summary of an ordinance
would clearly inform the public of the intent and effect of the ordinance, the council may
by a four-fifths vote of its members direct that only the title of the ordinance and a
summary be published, conforming to section 331A.01, subdivision 10, with notice that a
printed copy of the ordinance is available for inspection by any person during regular office
hours at the office of the city clerk and any other location which the council designates. A
copy of the entire text of the ordinance shall be posted in the community library, if there is
one, or if not, in any other public location which the council designates. Prior to the
publication of the title and summary the council shall approve the text of the summary and
Page 12
determine that it clearly informs the public of the intent and effect of the ordinance. The
publishing of the title and summary shall be deemed to fulfill all legal publication
requirements as completely as if the entire ordinance had been published. The text of the
summary shall be published in a body type no smaller than brevier or eight-point type.
Proof of the publication shall be attached to and filed with the ordinance.
Municipal Contracts (M.S. 41.2.3 ] 1)-Whenever the amount of a contract for the purchase of
merchandise, materials or equipment or for any kind of construction work undertaken by
the city is estimated to exceed the amount specified by section 471.345, subdivision 3, the
contract shall be let to the lowest responsible bidder, after notice has been published once
in the official newspaper at least ten days in advance of the last day for the submission of
bids. If the amount of the contract exceeds $1.,000, it shall be entered into only after
compliance with the uniform municipal contracting law (MS 471.345).
Utility Annual Financial Statements (M.S. 412.381~An annual financial report is required to be
made and a copy filed with the clerk at the close of the calendar year and shall be included
as part of the annual financial report or statement of the clerk in conformity with section
471.697 or 471.698. The cost of publication of any other official statement required by law
to be published shall be paid from public utility funds.
Vacation of streets (M.S. 412.851)---No vacation is permitted unless it appears in the interest of
the public to do so after a hearing preceded by two weeks' published anal posted notice. The
council shall cause written notice of the hearing to be mailed to each property owner
affected by the proposed vacation at least ten days before the hearing. The notice must
contain, at minimum, a copy of the petition or proposed resolution as well as the time,
place, and date of the hearing.
Announcement of hearing on annexation (M.S. 414.0333)-Both the city and town shall publish,
at their own expense, notice in their respective official newspapers. If the city and town use
the same official. newspaper, a joint notice may be published and the costs evenly divided.
All notice required by this section must be provided at least ten days before the date for the
public informational meeting.
Local Improvements (M.S. 429.041~If the estimated cost of a local improvement project
exceeds $100,000, publication is required to be made no less than three weeks before the
last day for submission of bids once in the newspaper and at least once in either a
newspaper published in a city of the first class or a trade paper. To be eligible as such a
trade paper, a publication shall have all the qualifications of a legal newspaper except that
instead of the requirement that it shall contain general and local news, such trade paper
shall contain building and construction news of interest to contractors in this state, among
whom it shall have a general circulation. The advertisement shall specify the work to be
done, shall state the time when the bids will be publicly opened for consideration by the
council, which shall be not less than ten days after the first publication of the advertisement
when the estimated cost is less than $100,000 and not less than three weeks after such
publication in other cases, and shall state that no bids will be considered unless sealed and
filed with the clerk and accompanied by a cash deposit, cashier's check, bid bond, or
Page 13
certified check payable to the clerk, for such percentage of the amount of the bid as the
council may specify.
Hearing on pro on sed special assessment (M.S. 429.091-Cities must publish notice that the
council will meet to consider the proposed assessment. Such notice shall be published in
the newspaper at least once and shall be mailed to the owner of each parcel described in the
assessment roll. Such publication and mailing shall be no less than two weeks prior to such
meeting of the council.
Cooperation and Combination Plan (M.S. 465.82)-In the official newspaper of each local
government unit proposing to take part in a combination, the governing body shall publish
at least a summary of the adopted consolidation or combination plan, each significant
modification and resolution of items, and, if appropriate, the results of each council review
and comment.
Contracts to be Let (M.S. 469.015--Before receiving bids the authority is required to publish
once a week for two consecutive weeks in an official newspaper of general circulation in
the community a notice that bids will be received for that construction work, or that
purchase of equipment, supplies, or materials. The notice shall state the nature of the work
and the terms and conditions upon which the contract is to be let, naming a time and place
where bids will be received, opened and read publicly, which time shall be not less than
seven days after the date of the last publication.
Tax Levv Increases for Port Authorities (M.S. 469.053-A city is required to publish the
resolution for a port authority tax increase together with a notice of public hearing on the
resolution for two successive weeks in its official newspaper or, if none exists, in a
newspaper of general circulation in the city. The hearing must be held two to four weeks
after the first publication.
Creation of an industrial development district (M.S. 469.0581-A port authority may create and
define the boundaries of industrial development districts in their port districts after holding
a public hearing on the matter. At least ten days before the hearing, the authority shall
publish notice of the hearing in a daily newspaper of general circulation in the port district.
Sale of propert~y a port authority (M.S. 469:0651-At least ten, but not more than 20, days
before the hearing the authority is required to publish notice of the hearing on the proposed
sale in a newspaper. The newspaper must be published and of general circulation in the
port authority's county and port district. The notice must describe the property to be sold
and state the time and place of the hearing. The notice must also state that the public may
see the terms and conditions of the sale at the authority's office and that at the hearing the
authority will meet to decide if the sale is advisable.
Port Authority contracts for construction, equipment and supplies (M.S.468.068)-Before
receiving bids for all construction work or equipment, materials and supplies greater than
$1,000, the authority is required to publish, once a week for two consecutive weeks in the
official newspaper of the port's city, a notice that bids will be received for the construction
Page l4
work, or purchase of equipment, supplies, or materials. The notice is required to state the
nature of the work, and the terms and conditions upon which the contract is to be let and
name a time and place where the bids will be received, opened, and read publicly, which
time shall be not less than seven days after the date of the last publication.
Creation of economic development districts (M.S. 469.101) At least ten days before the hearing
on the creation of an economic development district, the authority is required to publish
notice of the hearing in a daily newspaper of general circulation in the city.
Economic Development Authority Sale of Property (M.S. 469.1051-At least ten, but not more
than 20, days before the hearing the authority is required to publish notice of the hearing on
the proposed sale in a newspaper. The newspaper must be published and have general
circulation in the authority's county and city. The notice must describe the property to be
sold and state the time and place of the hearing. The notice must also state that the public
may see the terms and conditions of the sale at the authority's office and that at the hearing
the authority will meet to decide if the sale is advisable.
Economic Development Authority Tax Levies (M.S. 469.1071-A city is required to publish the
resolution on an EDA levy together with a notice of public hearing on the resolution for
two successive weeks in its official newspaper or if none exists in a newspaper of general
circulation in the city. The hearing must be held two to four weeks after the first
publication.
Tax Classification of Em~loyment Property in an enterprise zone (M.S. 469.170-The municipal
clerk or auditor is required to publish a notice in the official newspaper of the time and
place of a hearing to be held by the governing body on an application to classify property
as employment property in an enterprise zone, to be held not less than 30 days after the
notice is published. The notice shall state that the applicant, the assessor, representatives of
the affected taxing authorities, and any taxpayer of the municipality may be heard or may
present their views in writing at or before the hearing.
TIF district annual disclosure (M.S. 469.175, subd. 5)-An annual statement showing for each TIF
district the information required to be reported under M.S. 469.175, subdivision 6,
paragraph (c), clauses (1), (2), (3), (11), (12), (18), and (19); the amounts of tax increment
received and expended in the reporting period; and any additional information the authority
deems necessary is required to be published in a newspaper of general circulation in the
municipality that approved the tax increment financing plan. The annual statement is
required to inform readers that additional information regarding each district may be
obtained from the authority, and must explain how the additional information maybe
requested. The authority must publish the annual statement for a year no later than August
15 of the next year. The authority must identify the newspaper of general circulation in the
municipality to which the annual statement has been or will be submitted for publication
and provide a copy of the annual statement to the county board, the county auditor, the
state auditor, and, if the authority is other than the municipality, the governing body of the
municipality on or before August 1 of the year in which the statement must be published.
Page 15
Infrastructure replacement reserve fund levy (M S 471 572)-Before a tax is levied under this
section, the city is required to publish in the official newspaper of the city an initial
resolution authorizing the tax levy.
Financial Reports for cities over 2 500 population (M S 471 697~Cities are required to publish
the financial report or a summary of the report, in a form as prescribed by the state auditor,
in a qualified newspaper of general circulation in the city or, if there is none, post copies in
three of the most public places in the city, no later than 30 days after the report is due in the
office of the state auditor. The report is required to contain financial statements and
disclosures which present the city's financial position and the results of city operations in
conformity with generally accepted accounting principles. The report shall include such
information and be in such form as may be prescribed by the state auditor
Financial Reports for cities under 2 500 population (M S 471 698)---Cities are required to publish
the financial statement, or a summary of the statement in a form as prescribed by the state
auditor, within 90 days after the close of the fiscal year in a qualified newspaper of general
circulation in the city or if there is no qualified newspaper of general circulation in the city,
the clerk shall, at the direction of the city council, post copies in three of the most public
places in the city.
Summary Budget Statement (M.S. 471.6965--Annually, upon adoption of the city budget, the
city council is required to publish a summary budget statement in either the official
newspaper of the city, or if there is none, in a qualified newspaper of general circulation in
the city or in a city newsletter or other city mailing sent to all households in the city.
Municipal liquor store balance sheet (M S 471 69851 Any city operating a municipal liquor store
is required to publish a balance sheet using generally accepted accounting procedures and a
statement of operations of the liquor store within 90 days after the close of the fiscal year in
the official newspaper of the city.
vital improvement bonds (M.S 475 5211-Before the issuance of capital improvement bonds,
the municipality is required to publish a notice of its intention to issue the bonds and the
date and time of the hearing to obtain public comment on the matter. The notice must be
published in the official newspaper of the municipality or in a newspaper of general
circulation in the municipality. Additionally, the notice may be posted on the official Web
site, if any, of the municipality. The notice must be published at least 14 but not more than
28 days before the date of the hearing.
Alternative dissemination of bids and re uests (M S 331A 03)-In addition to or as an alternative
to the statutory requirements for newspaper publication, a political subdivision may
disseminate solicitations of bids, requests for information, and requests for proposals by a
means authorized in paragraph (b), if the political subdivision simultaneously publishes,
either as part of the minutes of a regular meeting of the governing body or in a separate
notice published in the official newspaper, a description of all solicitations or requests so
disseminated, along with the means by which the dissemination occurred.
Page l6
(b) A political subdivision may use its Web site or recognized industry trade journals as an
alternative means of dissemination. Dissemination by alternative means must be in
substantially the same format and for the same period of time as a publication required by
this chapter.
(c) For the first six months after a political subdivision designates an alternative means of
dissemination, it must continue to publish solicitation of bids, requests for information, and
requests for proposals in the official newspaper in addition to the alternative method. The
publication in the official newspaper must indicate where to find the designated alternative
method. After the expiration of the six-month period, an alternative means of dissemination
satisfies the publication requirements of law for solicitation of bids, requests for
information, and requests for proposals.
TRANSPORTATION
Municipal state aid roads (M.S.162.09 and MnDOT rules)---Cities must comply with standards in
order to receive reimbursement for funding for construction and maintenance of certain
roads. These standards often result in "overbuilding" city streets. Many items, such as full
signals, landscaping, pre-engineering, and certain legal costs are not eligible for
compensation.
Computer requirements (Dept. of Transportation)-The MnDOT Office of State Aid requires that
cities receiving municipal state aid must purchase, and may only use, MnDOT specified
network computer hardware and software.
Biodiesel fuel mandate (M.S. 239.77)--Requires that fuel sold in the state after June 30, 2005, for
use in internal combustion engines, contain a minimum of two percent of biodiesel fuel by
volume. The percentage is increased on May 1, 2009 to five percent. This requirement
could increase fuel costs or increase maintenance costs for affected vehicles.
Railroad Quiet zones (M.S. 219.1661-Authorizes cities and others to establish "quiet zones" in
which the sounding of railroad horns, whistles and other audible warnings is regulated or
prohibited. Requires quiet zone ordinances and regulations to conform to federal law and
regulation. Federal Railroad Administration localities are allowed to regulate train whistles
only if they establish quiet zones where all rail highway grade crossings have protective
measures, including crossing gates that "fully compensate for the absence of the audible
warning provided by the locomotive horn."
Cities ma by a required to create cartways for landlocked pro ep~rty owners (M.S. 435.37}--Cities
must establish a road in certain situations. A property owner who has limited access to their
land may petition the city council to connect the land to a public road.
GENERAL GOVERNMENT/RECORD KEEPING
Minncor (M.S.16B.1811-1f annual performance goals to maximize inmate work program
participation are not met, state law requires all political subdivisions that are supported in
whole or in part with funds from the state treasury to purchase only from MINNCOR when
purchasing the products MINNCOR produces.
Page 17
Non-visual. technologv-A 1998 law mandates the state and all political subdivisions to require all
technology hardware and software purchases and upgrades to satisfy non-visual technology
standards that exceed the Americans with Disabilities Act (ADA) requirements. This
mandate requires the purchase of technology that is either not yet available or is cost
prohibitive.
Street li hting (M.S. 216C.19)-State law requires all new and replacement lighting for street and
parking lot lighting to meet energy efficiency standards adopted by the Department of
Transportation. Lamps with initial efficiencies of at least 70 lumens per watts, such as
high-pressure sodium or metal halide lamps, are required; mercury vapor lamps may not be
used.
State record retention schedule (Dept of Administration)-State regulations determine what
records cities must keep and for what length of time. Requirements include storage time
ranging from three years to infinity.
60-Da~pproval Requirement (M.S. 15 99~-Cities are required to complete their decision on
written applications for permits and zoning changes or variances within 60 days.
Competitive bidding (M.S. 471.345 and M S 429 041}-The uniform municipal contracting law
contains extensive regulation of the requirements for the advertising of and bidding on
municipal contracts.
Examination of bonded public emplovees (M S 574 231--An examination process is required
whenever there is a change in the personnel for city clerks and treasurers.
Summarv budget statement publication (M S 471 6965)-Annual publication of the city's
summary budget must include information relating to anticipated revenues and
expenditures in a design so that a comparison may be made between the current and budget
years. 'This must be published in the official newspaper of the city.
Home rule city charters (M.S. 4101-State regulations are provided for the framing, adoption, and
amendments to the charter, and the operation of the charter commission.
Municipal liquor store financial statements (M S 471 69851-Cities that operate municipal liquor
stores must publish a balance sheet with a statement of liquor store operations within 90
days after the end of the fiscal year.
Fee limits for many liquor licenses (M.S 340A 408 340A 504 340A 414 The maximum fee for
many liquor licenses is limited by statute, these may not reflect actual city costs in
administering the license.
Annual Tax Increment District Reporting Requirements (M S 469 175)-Comprehensive and
detailed annual reports of each TIF district are required and they must be provided by cities
to County Board(s), County Auditor(s), School Board(s), and the State Auditor.
Page 18
Business Subsidy Reporting-(M.S. 116J.993-9951~Local governments providing business
subsidies or financial assistance are required to submit information to the DEED for two
years after the benefit date, or until the goals are met, whichever is later.
Securing vacant buildings (M.S.463.251)-Notice must be sent to the owner or owner's agent, the
property taxpayer of record, holders of mortgage or sheriffs' certificates, and the
neighborhood association in the metro area.
Development fees (M.S. 462.353~Requires fees imposed under M.S. 462 must be fair,
reasonable and proportionate to the actual cost of the service for which the fee is imposed.
This requirement has added a level of complexity to the calculation of local development
fees. The law also requires cities to establish procedures to account for the use of the fees.
Cities face penalties related to developer financial securities held b t~city (M.S. 462.358 Subd
2a~-Cities have 30 days to release any financial securities after the applicant notifies the
city, by certified letter, that all the city's requirements for approval are met; if a city fails to
release and return letters of credit, the applicant receives any interest accrued.
Cities must bill developers for application review services at an established billin rg ate (M.S.
462.358 Subd 2a~Services provided by municipal staff or contract professionals must be
billed at an established rate, which may not account for unique circumstances related to
individual projects and may discourage contract professionals from offering cities
discounted rates for uniquely city services.
Cities utilities must follow the cold weather rule (M.S. 216B.097)--The municipal rule states that
no utility shall disconnect and must reconnect utility service to a residential unit during
cold weather months (Oct. 15 through April 15), if that disconnection would in any way
affect the primary heat source of the unit and the consumer complies with the provisions of
the rule. "Disconnection" includes a service or load limiter or any device that limits or
interrupts electric service in any way. The rule also requires various notices and hearings.
Cities must pay interest on utility_deposits (M.S. 325E.02~State law requires that any privately
or publicly owned water, gas, telephone, cable television, electric light, heat, or power
company pay interest on deposits of more than $20. The rate of interest must be set
annually and be equal to the weekly average yield of one-year United States Treasury
securities adjusted for constant maturity for the last full week in November. The interest
rate must be rounded to the nearest tenth of one percent. By December 15 of each year, the
commissioner of commerce shall announce the rate of interest that must be paid on all
deposits held during all or part of the subsequent year.
Cities must turn over unclaimed utility deRosits to state (M.S. 354.34-Utility deposits left
unclaimed for more than one year after service is terminated are considered abandoned.
State law requires abandoned utility deposits be paid over to the state each year.
Page l9
Governmental Accounting Standards Board (GASB) (GASB Statement No 34~-Established new
financial reporting standards for state and local governments throughout the United States.
All cities in Minnesota must now comply with extensive GASB 34 standards for financial
reporting including but not limited to reporting costs of terminations, intangible assets, and
depreciation schedules for all city assets, other post employment benefits and implicit
subsidies.
Federal audits 31 U.S.C.A. 7502 a 1 et se . 31 U.S.C.A. 7503 The Federal Single Audit
Act, requires that all local units of government receiving $300,000 or more per year in
federal funds obtain either a single audit or aprogram-specific audit. The federal audits
must be conducted annually unless the city is authorized by statute to undergo less frequent
audits; in this case, the audit may be done biennially. The biennial audit must cover both
years within the biennium.
State mandated audits (M.S. 471.697)-Cities with populations over 2,500 must conduct an annual
audit. Cities may use their audit to report to the agencies that gave the federal aid, rather
than conducting separate audits for each agency.
State summa bud et ublication M.S. 471.6965 Annually, upon adoption of the city budget,
the city council must publish a summary budget statement. The statement must be
published either in the official newspaper of the city, or if there is none, in a qualified
newspaper of general circulation in the city; or in a city newsletter or other city mailing
sent to all households in the city.
Summary bud eg t reports (M.S. 6 745~Cities must send summary budget information to the state
auditor, using forms prescribed by the state auditor. This summary budget data must be
provided to the state auditor no later than Jan. 31.
State required financial activity reports (M S 6 74)-In addition to all of the above, cities are
required to report their financial activities each year to the Office of State Auditor.
TAXES/REVENUE RESTRICTIONS
Pr_~~ax personnel trainine (M.S. 273 0755~Requires that every person licensed by the state
board of assessors at the Accredited MN Assessor level or higher shall successfully
complete aweek-long MN laws course sponsored by the Department of Revenue at least
once every four years.
Training for local boards of review (M.S 274 014)-Requires that at least one member of the local
boards of review must attend an appeals and equalization course developed or approved by
the commissioner of revenue starting January 1, 2006.
Valuation and classification notice (M.S 273 121)-Requires notices for all properties on the tax
rolls, not just for those that were reassessed or reclassified that year, requiring the notices
to show the market value and classification of the property for both the current and
previous year's assessment and authorizing the commissioner to specify the form of the
notice for all counties.
Page 20
Department of Revenue cost of collecting local sales taxes (M.S. 297A.99i~Requires the
Commissioner of Revenue deduct from the payments of local sales tax collections to local
jurisdictions, the cost of constructing and maintaining a zip code or geo-code data base as
required by the streamlined sales and use tax agreement for administration of local sales
taxes. This requirement only impacts those cities that currently impose a local sales tax.
Levy limits (M.S. 275.70-.73)-Cities with populations of 2,500 or more are restricted under state
law from increasing property taxes beyond aatate-imposed level. This restriction is in
effect for taxes payable years 2009, 2010 and 2011.
Tax exempt propert~State Constitution and M.S. 272.02)-Many properties in cities are defined
by state statute as exempt from property taxes imposed by the city. The use and nature of
these properties frequently increase city costs (police and fire protection, road maintenance,
street lighting, etc.). Examples include: state institutions, such as universities, hospitals,
corrections facilities, and other state-owned properties.
Limitations on local special assessments (M.S. 4291-Statutory restrictions are imposed on the
uses, notices, hearings, bidding, contracts, apportionment of cost, assessment procedures,
and collection of special assessments.
Local improvement requirements (M.S. 429.031)-Feasibility reports must contain information
showing the need and cost effectiveness of the project.
Limitations on maximum penalties and fine (M.S. 609.033-0391)--Statutory restrictions are
placed on allowable penalties and fines for ordinance violations, and petty and gross
misdemeanors.
Truth-in-taxation (M.S. 275.065)-State law requires cities to provide pre-notification of property
tax changes, newspaper advertisements, multiple special hearings, and compliance with
state rules. Cities must certify a proposed levy amount by September 15 and, with few
exceptions, are not allowed to increase this amount. Cities must also pay a proportional
share of the counties' costs of preparing and mailing parcel specific notices.
Truth in Taxation Published Notice and Public Hearings (M. S. 275.065, subd. 6)-The Truth in
Taxation requires published notice of and up to three hearings: an initial hearing, a
continuation hearing, and a subsequent hearing. The initial hearing, and the continuation
hearing if necessary, is held to discuss the city's proposed budget and proposed property
tax levy for the following year. The subsequent hearing is held to adopt the city's final
property tax levy.
MISCELLANEOUS
State sales and MVET on citespurchases M.S. 297A>-Cities are required to raise, through
property taxes or fees, adequate revenue to pay the 6.5 percent sales tax on most city
purchases of goods and services. In addition, they must pay the motor vehicle excise tax
(MVST) on vehicles such as road maintenance vehicles, plows, dump trucks, etc.
Page 21
Maintenance of Effort-Grandfathered contributions to regional libraries (M S. l34 34)-The state
requires that once a city participates in funding a regional library, the minimum
contribution made may not be reduced.
Ordinance copies to law libraries (M.S.415.021)-Cities are required to furnish copies of any
ordinances they adopt to the local county law libraries and do not receive reimbursement
for reasonable copying charges unless they make a request to the library.
TIF grant fund cancellation-Cancels the appropriations to the TIF grant fund ($91 million in FY
2002 and $38 million in FY 2003 and thereafter) and repeals the entire grant program
enacted in 2001 for grants payable in 2003 and thereafter. At least part of the rationale for
the TIF grant fund was that the impacts on existing districts resulted from the state's
changes to the property tax system. Where a city has outstanding bonds or other
obligations, it will now have to look for internal solutions to address the impacts from prior
state actions. (Laws 2002, chapter 220, article l 3, section 8)