03-20-2018 Council Work Session Packet

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April 8, 2013 Senator David Osmek 4933 Crestview Road Mound, MN 55364 Representative Jerry Hertaus . 80552 Davis Street Greenfield, MN 55357 Representative Cindy Pugh 260 Mountain View Court Chanhassen, MN 55317 Item #10 - CC Agenda - 04108/2013 Street Imporovement District - Letter of Support [Page 2 of 51 CITY OF ORON® StreetAddress: Mailing Address: Telephone (952) 249-4600 2750 Kelley Parkway P.O. Box 66 Fax (952) 249-4616 Orono, MN 55356 Crystal Bay, MN 55323 www.d.orono.mmus Dear Senator Osmek, Representative Hertaus, and Representative Pugh I am writing to request your support for HF 745 (Erhardt, DFL -Edina) and SF 607 (Carlson, DFL -Eagan), legislation that would allow cities to create street improvement districts. This authority 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. Here are some answers to questions that have been raised about the legislation: • 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.