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