League’s Street Improvement District Initiative Introduced

A League initiative that would allow cities to create street improvement districts was introduced in the House and Senate this week.
(Published Feb 22, 2013)

A League initiative that would allow cities to create street improvement districts was introduced in the House on Feb. 20 and in the Senate on Feb. 21. HF 745 (Erhardt, DFL-Edina) and SF 607 (Carlson, DFL-Eagan) would allow cities to collect fees from property owners within a district to fund municipal street maintenance, construction, reconstruction, and facility upgrades. If enacted, this legislation would provide cities with an additional tool to build and maintain city streets.

The street improvement district initiative has been a high legislative priority for the League in recent years, and it may have renewed momentum in 2013 due to its endorsement by the Governor’s Transportation Finance Advisory Committee and the growing likelihood of passage of a meaningful transportation funding package this year.

The House bill has been referred to the Government Operations Committee and the Senate companion has been referred to the State and Local Government Committee. Both bills have a mix of Republican and Democratic-Farmer-Labor (DFL) co-authors. If the bills pass through initial committees, they are expected to travel to transportation committees in both bodies.

We need your help
The League is encouraging city officials to ask their legislators to support this initiative as it moves through the committee process. League policies LE-6 and LE-30 (pages 46 and 62 in 2013 City Policies) reference the League's support for this tool.

In advocating for this tool, the League is stressing the following points:

  • This is enabling legislation. No city would be required to create a municipal street improvement district.
  • The street improvement district authority legislation is modeled after Minn. Stat. 435.44, which allows cities to establish sidewalk improvement districts.
  • This authority would provide a funding mechanism that is fair. It establishes a clear relationship between who pays fees and where projects occur, but stops short of the benefit test that sometimes makes special assessments vulnerable to legal challenges. It also does not prohibit cities from collecting fees from tax exempt properties within a district.
  • This tool allows cities to perform maintenance and reconstruction on schedule. Timely maintenance is essential to preserving streets and thereby protecting taxpayer investments.
  • This tool would allow property owners to fund expensive projects by paying relatively small fees over time. The tool could be used to mitigate or eliminate the need for special assessments.

Access additional background information and talking points (pdf).

Access contact information for your legislators.

Questions? Contact Anne Finn at (651) 281-1263 or afinn@lmc.org

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