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<br />MEMORANDUM <br /> <br />TO: <br /> <br />Scott T. Anderson <br /> <br />FROM: <br /> <br />Stacey L. Wilson <br /> <br />DATE: <br /> <br />February 10, 2003 <br /> <br />SUBJECT: Special Service Districts <br />File No. 4002(1)-0001 <br /> <br />This memorandum addresses the steps the Roseville City Council must take to <br />establish a special service district to finance the burying of electric power lines along <br />County Road C in Roseville. <br /> <br />The City of Roseville has the authority, under state law, to establish a special <br />service district by ordinance. 1 See 1995 Session Laws, Chapter 264, section 39. <br />Minnesota statute Chapter 428A governs the establishment and operation of a special <br />service district, stating a "special service district means area within the city where special <br />services are rendered and the costs of the special services are paid from revenues <br />collected from service charges imposed within that area." Minn. Stat. ~ 428A.0, subd. 4. <br /> <br />A. What property can be included within the service district? <br /> <br />All types of property can be included within the designated special service district. <br />However, only property which is subject to the general property tax and used for <br />commercial, industrial or public utility purposes (or is vacant land zoned or designated on <br />a land use plan for commercial or industrial use) can be subject to an additional charge. ~ <br />428A.02. Residential property cannot be subject to an additional tax within a special <br />service district. Property that is exempt from taxation under ~ 272.02 is exempt from any <br />service charges based on net tax capacity. ~ 428A.03, subd. 2. <br /> <br />B. How much can the City charge? <br /> <br />The City Council can impose an additional tax on the property owners within a <br />designated service district, as long as the charge is reasonably related to the services <br />provided and is as nearly as possible proportionate to the cost of furnishing the service. ~ <br />428A.02, subd. 3. The City may not impose a service charge to finance a special service <br /> <br />1 This enabling legislation is only effective for special service districts created prior to June 30, 2005. New enabling <br />legislation will be required for Roseville to establish a special service district after this date. <br /> <br />1 <br />