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-2- <br /> <br />Key Points to Know About the Bill <br /> <br />1. What are "special services"? <br /> <br />Special services are defined broadly as a) maintenance, operation or construction of <br />improvements cities already have the power to do under M.S. 429.021; b) parking services; <br />and 3) any other service the city is authorized to provide. However, if a service is <br />ordinarily provided by the city from general fund revenues it may not be considered a <br />"special service" unless it is an increased level of service (e.g., a commercial area <br />may have twice as many street lights - the extra lights could be considered a "special <br />service" to be paid for separately by people in a specified area). <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />! <br />I <br /> <br />2. How is the district established? <br /> <br />The city would adopt an ordinance, after notice and hearing. Notice would have to be <br />mailed to every property owner in the district° The bill specifies various information <br />that must be included in the notice. <br /> <br />3. What type of taxes or service charges could be imposed in the district? <br /> <br />The property in the district could be subject to an ad valorem tax (e.g., i25 mill) or <br />a service charge. In addition, a tax could be imposed on sales of liquor, restaurants <br />(which serve liquor), hotels, motels, parking, admissions or amusements. Individual <br />notice would have to be given to all property owners in the district before a tax could <br />be imposed. The maximum rate of the tax or service charge would have to be specified as <br />well as the nature of the special services to be rendered. <br /> <br />4o Could bonds be sold for special services? <br /> <br />If a special service involves the construction of an improvement, the city may issue bonds <br />to be payable primarily out of the proceeds of any ad valorem Or sales taxes imposed in <br />the special district. The obligations would be issued in accordance with M.S. Chapter 475 <br />except that an election would not be required and net debt limits would not apply. (Note - <br />this is accepted procedure for bonds which have as their security revenues generated from <br />something other than the general tax base.) <br /> <br />5. In what ways might my city use a special service district? <br /> <br />Ao "Main Street" or downtown parking. <br /> <br />A city may decide to build a municipal parking lot with free parking for downtown <br />shoppers, or to subsidize parking by allowing free parking at meters during certain <br />times. A special service district could be created in the downtown area, and either <br />an ad valorem tax or a service charge could be paid by property owners within the <br />district. <br /> <br />B. Special Police Protection <br /> <br />A particular residential or commercial area or neighborhood may have been plagued by <br />unusually high levels of vandalism or crime and may wish to have police patrol the <br />area much more intensively than is customary'.throughout the city. The city could <br />establish a special district and the special police service be financed through an <br />ad valorem tax or service charges. <br /> <br />C. Mall Improvements <br /> <br />A street might be made into'a mall with special sidewalks, lighting, street ~urniture <br />and other amenities. Extraordinary maintenance costs would also be incurred. The <br /> <br /> <br />