5.0. 6.0. 7.0. HRSR 02-23-1998 - Laserfiche WebLink

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often create parameters for assessments. • The assessment must strike a balance between equity and feasibility. Properties that benefit from improvements should pay a fair share of the costs. The assessment must be affordable for both the property owner and the City. Reducing the assessment to the property requires the City to allocate other revenues to the project. A special service district is a tool for financing the construction and mainte- Special Service District nance of public improvements within a defined area. Special legislation is required to access these powers in Minnesota Statutes, Chapter 428A. This legislation also defines the nature of special services that can be provided and financed. The nature of the applicable services can be tailored to meet the needs of Monticello. A special service district has several applications for the Plan. The district provides an alternative means of financing the construction of any of the pub- lic improvements discussed previously with special assessments. The service district approach avoids the "benefits" test imposed by special assessments. The test for the district is that the amount of service charges imposed must be "reasonably related" to the special services provided. The costs of parking improvements, for example, may be better spread across a district than through assessments to individual properties. An important use of the special service district is the maintenance of public improvements. Some of the improvements described in the Plan require a level of maintenance above the typical public improvement. Items such as banners and planted materials must be maintained and replaced. Higher levels of cleaning and snow removal may be needed. Without a special service dis- trict, these costs are borne through the General Fund of the City. The use of a special service district is subject to some important constraints: • Process to create district and to levy taxes to use must be initiated by petition of property owners and is subject to owner veto. The use of a special service district requires a collaboration of property owners and the City. There are two separate steps in the process: (1) adoption of an ordinance establishing the service district and (2) adop- tion of a resolution imposing the service charges. Neither step can be initiated by the City. The City must be petitioned to undertake the processes to create a special service district and to impose service charges. At a minimum, the petitions must be signed by owners repre- senting 25% of the area that would be included in the district and 25% of the tax capacity subject to the service charge. The actions of the City Council to adopt the ordinance and the resolution are subject to veto of the property owners. To veto the ordinance or the resolution, objections must be filed with the City Clerk within 45 days of initial Council action to approve. The objections must exceed 35% of A New Bridge ' Revitalizing Monticello's Downtown and Riverfront - Page 4:17