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<br />Special Service Districts <br /> <br />The 1996 Legislature authorized cities to establish special service districts without special legislation. <br />Prior law eontained no general grant of authority for cities to fom1 these special tax areas to finance a <br />particular improvement or government service. The self-executing provision is scheduled to sunset on <br />June 30, 2005. Enabling legislation will once again be required for special service districts created <br />thereafter. <br /> <br />Special service districts have their own set of limitations and procedures. Thc steps necessary to create a <br />special service district are as follows: <br /> <br />. Twenty-five percent or more of the owners of the land area of property that would be subject to <br />service charges and owners of 25 percent or more of the net tax capacity of propeliy subject to the <br />district must file a pctition calling for a public hearing or otherwise modified so that the 25 percent <br />requirement is lost, a new petition will be required. <br /> <br />. The city couneilll/ay create an advisory board. Before thc adoption of any proposal by the governing <br />body to provide serviccs or imposc service charges within the district, the advisory board, if created, <br />must have thc opportunity to rcview and comment on the proposal. <br /> <br />. A hearing must be held on the creation of the district and/or the imposition of chargcs. Thc hearing <br />must be precedcd by two published notices (in two issues of the official papcr) two weeks apart, and <br />must be hcld at least three days following the last publication. Not less than 10 days before the <br />hearing, notice must also be mailcd to the owner of each parcel of property within the area proposed <br />to be included in the district, including tax-exempt parcel owners or property paying on a gross <br />earnings basis such as public utilities. <br /> <br />. Notice of the hearing must include the time and place of the hcaring, a map showing the boundaries <br />of the proposed district, and a statement that all persons owning property in the proposcd district that <br />would be subject to a service charge will be given an opportunity to be heard at the hearing. <br /> <br />· The hearing may be adjourned from time to time, and the ordinance establishing thc district may be <br />adopted at any time within six months after the date of the conclusion of the hearing by a vote of the <br />majority of the governing body ofthe city. <br /> <br />. At the hearing, or before the ordinance is adopted, any affected landowner may filc a written <br />objection with the city clerk asserting that the landowner's property should not be included in the <br />district, or should not be subjected to a service charge. The governing body must makc a <br />deternlination on the objection within 30 days of filing. The owner may appeal the council's <br />detennination to district court. <br /> <br />. The charges can bc fixed on any equitable basis, but shall be reasonably related to the special services <br />provided and shall be as nearly as possible proportionate to the cost of furnishing the service. <br /> <br />League of Minnesota Cities Local Improvement Guide (October 2000) pages 35- 37 <br />