SF2366 (Legislative Session 94 (2025-2026))

Municipal street improvement district establishment authorization provision

AI Generated Summary

This bill (S.F. No. 2366) proposes allowing municipalities in Minnesota to establish municipal street improvement districts to fund street improvements and maintenance through a street improvement fee. Key provisions of the bill include:

  1. Definitions – Defines key terms such as "municipality," "street improvement district," "improvements," and "maintenance."
  2. Authorization – Municipalities may impose a street improvement fee through an ordinance after holding a public hearing.
  3. Apportionment of Fees – Fees must be distributed among developed parcels based on traffic generated.
  4. Street Improvement Plan – Municipalities must develop a plan, estimate costs, and hold a public hearing before implementing the fee.
  5. Use of Fees – Revenue from fees must be used solely for improvements and maintenance within the designated district.
  6. Collection – Fees may be collected for up to 20 years, and unpaid fees can be certified to the county auditor for collection as special assessments.
  7. Alternative Funding – Using these fees does not prevent municipalities from using other financing methods, except special assessments cannot be used alongside these fees for the same projects.
  8. Unimproved Parcels – Unimproved parcels are exempt from fees for up to three years after street paving or until a structure is built and occupied.
  9. Exemptions – Institutions of purely public charity are exempt from the fee.
  10. Appeals – Property owners can appeal a fee within 30 days to district court, which can affirm, set aside, or order a reapportionment.

The bill essentially enables cities to create districts and charge property owners a fee to fund street repairs and maintenance, as an alternative to special assessments.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 09, 2025HouseFloorActionIntroduction and first reading
March 09, 2025SenateFloorActionIntroduction and first reading
March 09, 2025HouseFloorActionReferred toState and Local Government
March 09, 2025SenateFloorActionReferred toState and Local Government