CHA 10/23/2006 TO: Charter Commission Members
_ FROM: Deb Skogen, City Clerk and Staff Liaison
Date: October 18, 2006
CITY OF Re: October 23, 2006, Charter Meeting
FRIDLFY
Reminder:
The Charter Commission policy requires a member to call or e-mail me before 8:00 a.m.
Monday, September 25th as to whether or not they plan on attending the meeting.
If there will not be a quorum, those Commissioners who called will receive a phone call
notifying them there will not a quorum and the meeting will be cancelled. A notice will then be
placed on the door of the cancellation of the meeting for those commissioners who did not call,
but came to the meeting.
Please find a copy of the agenda and minutes for your reference. The meeting is actually in
Conference B this time. Conference Room B is in the offices of the upper level. Please be
prompt as the door will be locked shortly after arrival for security purposes.
Because there are several laws governing municipal powers, I went to the League of Minnesota
cities and printed chapters 1-4 of the League of Minnesota Cities Handbook for Cities. I hope
this helps provide the information you are looking for.
Deb Phone: 763-572-3523
e-mail: skogend(a&,ci.fridley.mn.us
CITY OF FRIDLEY
CHARTER COMMISSION
AGENDA
MONDAY, OCTOBER 23, 2006 7:00 P.M.
LOCATION: Fridley Municipal Center
Conference Room B (Upper Level)
CALL TO ORDER:
ROLL CALL:
1. APPROVAL OF AGENDA:
2. APPROVAL OF MINUTES
September 25,2006
3. Administrative Matters
4. Discussion of Chapter 1
5. Discussion of Mission Statement(remove from the table)
6. Discussion of Glossary/Index(remove from the table)
7. Discussion of Future Items
8. ADJOURNMENT
Next regular meeting: Monday, November 27, 2006, at 7:00 p.m. in Meeting
Room 1 in the Lower Level
CITY OF FRIDLEY
CHARTER COMMISSION MEETING
September 25,2006
CALL TO ORDER:
Vice Chairperson Borman called the Charter Commission meeting to order at 7:00 p.m.
ROLL CALL:
Members Present: Borman,Braam,Findell,Gordon,Hoiby,Holm,Jorgenson(7:05 p.m.),Kirkwood,Kranz,
Linder,Plummer,Reynolds,Ryan,and Soule(7:10)
Members Absent: VanDan
Others Present: Deb Skogen,City Clerk/Staff Liaison
APPROVAL OF AGENDA:
Commissioner Gorgon MOVED and Commissioner Hoiby seconded a motion to approve the agenda.
UPON A VOICE VOTE,ALL VOTING AYE,VICE CHAIRPERSON BORMAN DECLARED THE MOTION
CARRIED UNANIMOUSLY.
n APPROVAL OF MAY 22,2006,CHARTER COMMISSION MINUTES:
Commissioner Gordon MOVED and Commissioner Reynolds seconded a motion to approve the May 22,2006,
Charter Commission Minutes.
UPON A VOICE VOTE,ALL VOTING AYE,VICE CHAIRPERSON BORMAN DECLARED THE MOTION
CARRIED UNANIMOUSLY.
Chairperson Jorgenson was now present and Commissioner Borman released the meeting to her.
1. ADMINISTRATIVE MATTERS
A. Introduction of New Members
New Commissioners Mary Kirkwood,Ted Kranz,Leslie Plumber and Noel Ryan introduced themselves. Then the
Commissioners went around the room and introduced themselves and welcomed the new members to the
Commission.
2. DISCUSSION OF CHAPTER 1
Chairperson Jorgenson would like to take a look at the state law referencing municipalities and what their powers are
as the Brooklyn Park,Plymouth and Robbinsdale charters reference the state statute and are very short to make sure
that the city would not be giving up any powers.
There was a discussion about whether to change chapter one or just make it more readable and understandable.
Commissioner Holm said to remember that any changes have to go before the Council and that you would not want
to change the substance of the language by simplifying language,omitting language or causing an unexpected
change. He preferred not to make any changes unless a change was really needed.
CHARTER COMMISSION MEETING OF MAY 22,2006 PAGE 2
n Commissioner Reynolds said that changing the format did not change the content,would make the document easier
to read.
Commissioner Borman MOVED and Commissioner Findell seconded a motion to have Ms. Skogen provide Chapter
1 as a double spaced copy separating each section at the semi-colon.
UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON JORGENSON DECLARED THE MOTION
CARRIED UNANIMOUSLY.
There was a discussion about the meaning of semi-colons versus commas
Commissioner Hoiby MOVED and Commissioner Reynolds seconded a motion requesting Ms. Skogen provide the
state statute related to city powers at the next meeting.
UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON JORGENSON DECLARED THE MOTION
CARRIED UNANIMOUSLY.
The Commissioners concurred that there be no changes to Section 1.03 and 1.04 at this time,but that Ms. Skogen
should review Section 1.04 to see that it is in compliance with state and federal election laws.
5. DISCUSSION OF MISSION STATEMENT
This item was not removed from the table,but it was suggested new commissioners review the mission statement and
see if it made sense.
6. DISCUSSION OF GLOSSARY/INDEX
Commissioner Findell said the glossary/index was an aid to the Charter versus part of the Charter.
Commissioner Soule said the Commission needed to be careful not to change the meaning of the Charter by
changing the definitions of some terms.
Chairperson Jorgenson told the new Commissioners that they should feel free to raise any questions they might have
or issues they do not understand.
Commissioner Hoiby asked how the idea of the glossary came to be.
Commissioner Gordon said that the glossary/index began when there was not a lot of work needed on the Charter. It
was determined by the Commission that they would review each chapter and come up with words that might hard to
understand. He said it was not determined as whether it would be an aid for people using the Charter or would
become part of the Charter.
Commissioner Reynolds wondered if the idea of suggesting a glossary was for consistency and Commissioner
Gordon said yes,that it was for consistency and for terms the commissioners did not understand.
Commissioner Soule said if it was used as a tool,rather than as part of the charter, it might help new commissioners
understand the terminology.
Chairperson Jorgenson used eminent domain and the Commission discussed the many different definitions.
7. FUTURE ITEMS
Discussion of Chapter 1 —review of state and federal laws,statutory vs home rule(LMC brochure)and providing
double spacing and numbers for Chapter 1.
ADJOURNMENT:
CHARTER COMMISSION MEETING OF MAY 22,2006 PAGE 3
Commissioner Gordon MOVED and Commissioner Holm seconded a motion to adjourn the meeting.
UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON JORGENSON DECLARED THE MOTION
CARRIED AND THE MEETING WAS ADJOURNED AT 8:30 P.M.
Respectfully submitted,
Debra A. Skogen, Cynthia Soule, Secretary
City Clerk/Staff Liaison
FR DLEY CITY CHARTER
CHAPTER 1. NAME,BOUNDARIES,POWERS AND CONSTRUCTION OF GOVERNMENT
Section 1.01. NAME AND BOUNDARIES.
1. Upon the taking effect of this Chapter, the Village of Fridley in the County of Anoka and State of
Minnesota shall become a City under the name of City of Fridley and shall continue to be a
municipal corporation with boundaries the same as they now are established or as they may
hereafter be established.
Section 1.02. POWERS OF THE CITY.
2. The City of Fridley shall have perpetual succession;
3. may sue and be sued;
4. may use and alter its seal at pleasure;
5. shall be capable of contracting and being contracted with;
6. may take by purchase, condemnation, gift, devise, or otherwise, and hold, lease, sell and convey all
n such real and personal property as its purposes may require, or the transaction of its business may
render convenient,within or without the limits of the City;
7. may acquire, construct, own, lease and operate public utilities, and render public service of every
kind;
8. may grant franchises or licenses for the construction, operation and maintenance of public utilities
in, over, upon and under the streets and public places in the City, and shall have power to fix and
regulate the fares, tolls, or charges which may be collected, the extensions which shall be made, and
regulate the services which shall be rendered by any owner or operator of a public utility franchise
of license;
9. may assess, levy and collect taxes, for general or special purposes, on all subjects or objects which
the city may lawfully tax;
10. may borrow money on the faith and credit of the City or on a public utility or other property owned
by the City or the revenues therefrom by the issuance and sale of bonds or certificates of
indebtedness;
11. may appropriate the money of the City for all lawful purposes;
12. may provide for, construct,regulate, and maintain public works and local improvements;
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Fridley City Charter Chapter 1 Section 1.04.4
^ 13. may levy and collect assessments against real property within the City for local improvements and
services including garbage and refuse collection and disposal;
14. may license and regulate persons, corporations and associations engaged in any occupation, trade or
business;
15. may define, prohibit, abate, and suppress all things detrimental to the health, morals, comfort,
safety, convenience and welfare of the inhabitants of the City, and all nuisances and causes thereof;
16. may regulate the construction, height and materials used in all buildings, and the maintenance and
occupancy thereof;
17. may regulate and control the use for whatever purposes of the streets and other public places;
18. may make and enforce local police, sanitary, and other regulations;
19. may pass ordinances for maintaining and promoting the peace, good government and welfare of the
City, and for the performance of all the functions thereof; shall have all the powers possessed by
municipal corporations at common law;
20. shall have, retain and may exercise all powers, functions, rights, and privileges, heretofore
possessed by the Village of Fridley;
21. may exercise such powers beyond its corporate limits as may be necessary for the effective exercise
of any powers granted herein as now authorized by law;
22. and in addition thereto, the City of Fridley shall have and exercise all powers, functions, rights, and
privileges exercised by, or which are incidental to, or inherent in, municipal corporations and are
not denied to it by the Constitution or general laws of the State of Minnesota.
23. The enumeration of powers herein shall not be construed to limit or restrict the powers granted in
general terms, nor shall any specific power granted in this charter be construed to limit or restrict
the powers granted in this Section.
24. In addition to the powers herein and hereafter granted, the City of Fridley shall have full power to
deal with all matters of municipal concern and have complete self-government in harmony with and
subject to the Constitution and laws of the State of Minnesota.
Section 1.03. CHARTER, A PUBLIC ACT.
25. This Charter shall be a public act and need not be pleaded or proved in any case. It shall take effect
fifteen(15)days from and after its adoption by the voters.
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Fridley City Charter Chapter 1 Section 1.04.4
Section 1.04. DEFINITIONS.
1. Eligible voter.
A resident of the City of Fridley who is qualified to register to vote.
2. Registered Voter.
An eligible voter who is currently registered in the City of Fridley.
3. Voter.
A registered voter who has voted in the City of Fridley within the last four years.
4. Electorate.
The whole body of eligible voters. (Ref. Ord. 857)
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n
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Chapter 1
PART I
FORM AND STRUCTURE OF THE MINNESOTA CITY
CHAPTER 1 : LOCAL GOVERNMENT IN MINNESOTA
I. General nature of local government 3
A. Local government in the federal system 3
B. Local government in Minnesota 4
II. City government 5
A. Classes of cities by population 5
B. Types of cities by government structure 5
1. Statutory cities 6
2. Home rule charter cities 6
3. How statutory cities and home rule charter cities differ 6
4. How to change from a statutory city to a home rule charter city 7
C. Forms of city organization 7
1. Weak mayor-council 7
2. Strong mayor-council 8
3. Council-manager 8
4. Commission 9
III. Town(township) government 9
IV. County government 10
V. Special districts 12
A. Special-service districts 12
B. Lake-improvement districts 12
C. Soil-and-water-conservation districts 13
D. Watershed districts 13
E. School districts 13
F. Regional-development commissions and the Metropolitan Council 14
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CHAPTER 1
Chapter 1
Local government in Minnesota
Over the years, local governments in Minnesota have become increasingly
complex—changing from simple service centers for a largely agricultural society
to extended urban areas that serve as hubs for industry,commerce,and
recreation.As transportation and communications systems have progressed,the
interaction among all levels of government, including local,state,and federal has
become necessary in order to provide a growing network of services. This
chapter discusses the relationship of local government to state and federal
government and outlines the different kinds of local government. Topics include:
I. General nature of local government
H. City government
III. Town government
IV. County government
n
V. Special districts
VI. The future of local government
I. General nature of local
government
A. Local government in the federal system
The U.S. Constitution does not mention local units of government. The division
of powers described by the U.S. Constitution is between the states and the
national government. The federal constitutional restrictions on the exercise of
governmental powers refer to the states and the national government.
As creations of the individual states,however, local governmental units are
subject to restrictions placed on them by the U.S. Constitution. Like a state,a
local government cannot take action to deprive an individual of life,liberty or
property without due process of law. The U.S. Constitution authorizes the federal
government alone to act in matters of war, interstate commerce,coinage,and
bankruptcy. Local governments and states cannot perform these activities.
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With the exception of the District of Columbia,the federal government does not
create local units of government or set their governmental organization and
framework. State governments alone control the existence and powers of local
governments within their boundaries.
Because of its superior financial resources,which remain in spite of the deficit,
the federal government has maintained an indirect, administrative relationship
with local governments. Through the use of loans and grants,the federal
government is able to stimulate and regulate certain programs carried out by
cities. In some areas,such as housing and redevelopment,federal aid goes
directly to cities. In other areas, such as roads,wastewater treatment,and other
infrastructure, state agencies administer or distribute federal aid to cities.
The federal government makes several mandates on local governments. Federal
laws, such as the Occupational Safety and Health Act,the Fair Labor Standards
Act, and other laws,are discussed in later chapters of the Handbook.
City of Tacoma v. The federal government may appoint local governments to act as agents in the
Taxpayers of Tacoma,357 exercise of federal functions,as long as state law does not explicitly forbid local
U.S.320,78 S.Ct. 1209 g P Y
(1958).This statement governments from acting in the manner requested by the federal government.
stems from one apparent
interpretation of the case.
'~ B. Local government in Minnesota
Minn.Const.art.XII,§3. The Minnesota Constitution authorizes the Minnesota Legislature to provide for
the"creation,organization,administration,consolidation, division,and
dissolution of local government units and their functions, for the change of
boundaries thereof, [and] for their elective and appointive officers."
The term"local government"applies to counties,towns(townships),cities,and
special-purpose districts,such as school districts, soil-conservation districts,
hospital districts,regional-development commissions,and the Metropolitan
Council.All of these units have essentially the same relationship to the state
because they are established by state law and are subject to the ultimate control
of the state.
Minn.Const.art.XII,§4; In Minnesota,local governments are subject to the absolute sovereignty of the
Minn.Stat.§410.04. state Legislature with one limited exception. This exception is in the
See Handbook,Chapter 4 constitutional home rule provision,which authorizes the enactment of laws that
and the comments enable any city to establish a charter outlining its form of organization and its
concerning home rule overnmental powers. Even in this case,however,charter provisions must be in
charter cities at the end of g
each chapter. harmony with the Minnesota Constitution and with the state statutes that apply to
Minn.Stat.§410.16;State home rule cities. State law can,in certain circumstances, override a charter.
v.City of Crookston,252
Minn.526,91 N.W.2d 81
(Minn.1958).
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CHAPTER 1
II. City government
Minn.Stat.§414.01,subd. Under Minnesota law,Minnesota cities are public corporations. The Legislature
1a(2)' has described cities as the type of government that"most efficiently provides
governmental services in areas intensively developed for residential,commercial,
industrial,and governmental purposes."
Minnesota cities are diverse and provide a wide range of services to their
citizens. The 854 cities in Minnesota form a powerful,grassroots governmental
system that maintains a close relationship with its constituents.
Estimates from the 2000 About 80 percent of the people in Minnesota live in cities, even though cities
census. only cover about 4.9 percent of the state's land area. Since cities are where most
people live,the basic goal of city government is to provide services. Elected city
officials and city staff form an important pool of governmental experience. In
many parts of the state,cities are the main governmental entities.
A. Classes of cities by population
Minn.Stat.§410.01. For certain legislative purposes,state law divides the 854 cities in Minnesota into
four classes based on population.
• . First Class cities are those with more than 100,000 inhabitants. Once a city
becomes a First Class city,it will not lose that status unless its population
decreases by 25 percent from the census figure that last qualified it as a First
Class city. The cities of Minneapolis, St. Paul,and Duluth are First Class cities.
Second Class cities have populations of more than 20,000,but not more than
100,000. Currently,43 cities meet this definition.
Third Class cities have populations of more than 10,000,but not more than
20,000. There are 40 cities that meet this definition.
Fourth Class cities have no more than 10,000 residents. There are 768 cities that
meet this definition.
Changes in classification,if any,take effect when the secretary of state receives
certified copies of the national census.
B. Types of cities by government structure
See Handbook,Chapter 3 Minnesota has two basic types of cities: statutory cities and home rule charter
for Statutory Cities. cities. Chapters 3 and 4 discuss these two types of cities in detail,but here is
See Handbook,Chapter 4 some basic information that describes their differences.
for Home Rule Charter
Cities.
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1. Statutory cities
Minn.Stat.ch.412. Most cities in Minnesota are incorporated as statutory cities. They operate under
Chapter 412 of the Minnesota Statutes, commonly known as the statutory city
code, and under a number of other statutes that apply to all cities.Although all
statutory cities possess the same basic powers,the code permits them to select
one of several forms of organization.The Legislature may,at its discretion,
change any part of the city code. There are 747 statutory cities.
2. Home rule charter cities
Currently, 107 cities have adopted home rule charters. State law allows any city
Minn.Stat.ch.410. to adopt a charter,which in effect is a local constitution approved by the local
voters. Cities have a wide range of discretion in adopting charters; charters may
provide for any form of city government subject only to state laws that uniformly
apply to all cities in the state.
3. How statutory cities and home rule charter cities
differ
The major difference between home rule charter cities and statutory cities in
Minnesota is in the type of enabling legislation under which they have
incorporated.
• Statutory cities derive many of their powers from Chapter 412 of the
Minnesota Statutes.
• Home rule charter cities obtain their powers from a home rule charter,
although many state statutes grant or limit the powers of home rule charter
cities.
Statutory cities and home rule charter cities differ in terms of organization and
powers, and not because of any classification of population,area,geographical
location, or other physical feature.
Another distinction between statutory cities and home rule charter cities is the
degree of citizen control over city-government powers.
• State law grants all statutory city powers. In the absence of that express or
implied authorization,statutory cities do not have power to undertake any
decision or action.
• Home rule charter cities,on the other hand, can exercise any powers outlined
by their locally-adopted charters as long as those powers do not conflict with
state laws. Voters in such cities have more control over their city
government's powers.
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If a statutory city encounters a problem that cannot be solved under general
statutory city laws, it can ask the Legislature to enact a special law or it can
become a home rule charter city with a voter-approved charter.
4. How to change from a statutory city to a home
rule charter city
In order to change from a statutory city to a home rule charter city,the district
Minn.Stat.§§410.05- court of the judicial district in which the city is located may appoint a charter
410.30. commission to frame and amend a charter. A petition signed by at least ten
percent of the city's voters can request this action. If this type of petition is
received,the court must appoint a charter commission.
The charter commission determines whether a charter is necessary or desirable. If
the commission determines a charter is necessary,it then drafts a proposed
charter. A charter generally deals with the organization and operation of city
government.
The draft of the proposed charter is delivered to the city council,which must
submit it to the voters within six months. If 51 percent of the votes cast on the
proposed charter support the charter,the charter is adopted and takes effect 30
days after the election. The charter commission may propose amendments to the
charter,which must also be adopted by the voters.Proposed amendments can
also be proposed by petition of the voters in the city. The charter can be
abandoned in the same way it is amended.
C. Forms of city organization
Cities in Minnesota have used four administrative patterns or formats in their
internal organization: weak mayor-council,strong mayor-council,council-
manager, and commission.
1. Weak mayor-council
The weak mayor-council plan is by far the most common plan in Minnesota.
Besides being the form for Standard Plan,Plan A,and Plan B statutory cities,it is
also the favorite of most home rule charter cities. Under the weak mayor-council
plan, administrative as well as legislative authority is the ultimate responsibility
of the council unless the council has created an independent board, such as a
utilities commission,to handle one or more specific functions. In Plan B statutory
cities,however,administrative power is generally the responsibility of the city
See Council-manager manager.
discussion below at II.C.
3.
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The mayor's powers in weak mayor-council communities are no greater than
those of any other member of the council,with the exception of the mayor's role
as presiding officer at council meetings and several other minor duties.No
individual council member holds specific administrative powers.
Many statutory Standard Plan and Plan A cities create a city administrator
position by resolution or ordinance and specify the responsibilities of the
position. City administrators are appointed because of their professional
qualifications; this is not a political appointment. Many cities have also created
combined city clerk-administrator positions.
2. Strong mayor-council
The strong mayor-council plan is rare in Minnesota; only four cities use this
administrative format.Home rule charter cities are the only cities that may have
this form of organization. Under the strong mayor-council plan,the mayor is
responsible for the operation of all administrative agencies and departments
within the city.
If the plan is the conventional,strong mayor-council plan,the mayor:
• Can appoint and remove department heads and other subordinate staff subject
to civil-service provisions where applicable.
• Is not a council member,but can veto council legislation subject to the right
of the council to override the veto by an extraordinary majority.
• Prepares and administers a budget that the council approves.
The chief functions of the council are to:
• Legislate and set policies.
• Pass budgets and bond issues.
• Review mayoral and administrative actions.
All of these features can vary under city charter provisions.
3. Council-manager
Some home rule charter cities and those 16 statutory cities operating under
Optional Plan B in the statutory city code have a council-manager form of
government. Only statutory cities with populations of more than 1,000 may adopt
Optional Plan B. Under this form,the council has policy-making and legislative
authority,but administration of the government is the manager's responsibility.
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CHAPTER 1
The manager is directly responsible to the council. The manager has indefinite
tenure and is subject to removal by the council after a hearing. The manager
appoints department heads,usually without council approval. Here again,the
home rule charter can change the conventional plan. City managers are appointed
because of their professional qualifications;the position is not a political
appointment.
4. Commission
The commission form of organization is no longer used in Minnesota. In recent
years,only one home rule charter city in the state used a commission structure.
No statutory cities have ever used this structure;and the option for statutory
cities to adopt this form of government is no longer available.
Under this form of organization, each of the elected council members is
responsible for a particular administrative department so that, in addition to
duties as a legislative official,the council member is also a department head.
Many cities,particularly those without an administrator, employ an informal
commission structure,assigning one or two council members to devote particular
attention to specific city services such as public safety or public works.
The mayor,with minor exceptions,has the same powers and duties as council
•-■ members.The council, as a whole, is responsible for administrative coordination
and for the formation of legislative policy. The charter can alter this plan.
See Handbook,Chapter 3. Details on the powers and duties of statutory cities are available in Chapter 3.
See Handbook,Chapter 4. Home rule charter cities are covered in Chapter 4. The role of elected officials is
discussed in Chapter 6. In order to change from one form to another, an
See Handbook,Chapter 6. affirmative vote of the city's voters is required.
III. Town (township) government
Minn.Stat.§414.01,subs. The Legislature describes township government as the form of local government
1 (2). that most efficiently provides governmental services in areas used or developed
For specific information on for agricultural, open space, and rural residential purposes.
town government,contact
the Minnesota Association
of Townships,P.O.Box
267,St.Michael,MN
55376(763)497-2330.
People often incorrectly use the term"town"to describe a small city. In the
strictest sense,a town is the governmental or political organization,while a
township refers to the geographical congressional territory without connection to
the governmental organization.For the most part,Minnesota laws,particularly
state statutes,use the terms interchangeably,as will the Handbook.
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Town boards govern most of the land outside cities. In some counties,there is
unorganized territory;that is, areas outside city borders that have no town
government. In these cases,the county board performs some of the functions of a
town board.
Minn.Stat.chs.365;366; The boards that govern towns are composed of three or five members called
367;368. supervisors. State laws allow a variety of optional plans of town government.
These deal with appointment of the clerk and treasurer,combination of these two
offices,and the appointment of a town administrator. Historically,most towns
have had limited governmental powers and,as a result,were unable to provide a
wide range of services to their citizens.
Over the past two decades,the Legislature has greatly expanded the authority of
towns to provide general governmental services. To accommodate growing
towns in need of more services,the Legislature has created a class of towns
called"urban towns."
Minn.Stat.§368.01. Urban towns are towns that have platted portions where 1,000 or more people
reside,or which meet other statutory criteria. These towns have many of the same
powers statutory cities have under the statutory city code. The Legislature has
also created several urban towns through special laws that define their powers.
Among the few powers that urban towns may not exercise are the following:
annexing abutting land;owning or operating gas,heat, light or power systems;
establishing a municipal liquor store; and,establishing a civil-service system.
For most purposes,the material in the Handbook can apply to urban towns as
well as to statutory cities. Urban towns may join the League of Minnesota Cities
and receive the full range of League services.
IV. County government
For more information Counties are administrative arms of the state and were created primarily to carry
about county government
contact the Association of out certain mandates, such as providing welfare and a corrections system.
Minnesota Counties,125 Counties do not have broad powers like cities, and must have clear statutory
Charles Avenue,St.Paul, authority to provide a service or regulate an activity.
MN 55103(651)224-
3344.
Minn.Stat.ch.373
contains many provisions
concerning the powers and
duties of counties,but
county authority is found
in other statutes as well.
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•
CHAPTER 1
Minn.Stat.§§375.01; The governing bodies of counties are five or seven-member boards.Voters from
375.025;375.056. districts dividing the county elect these board members or commissioners. All
citizens,regardless of whether they live in a city,town or unorganized territory,
are represented by a county commissioner.
Minn.Stat.§382.01. In most counties,voters also elect an at-large county auditor,treasurer, sheriff,
Auditor.Minn.Stat.ch. attorney,and recorder.
384.
Treasurer.Minn.Stat.ch.
385.
Sheriff.Minn.Stat.ch.
387.
Attorney.Minn.Stat.ch.
388.
Recorder.Minn.Stat.ch.
386.
Minn.Stat.ch.375A. Some optional forms of county government are available.
Minn.Stat.ch.373. County boards have authority to provide a variety of services,but lack the power
to provide most municipal types of services.
Because counties levy taxes against all property within the county, cities should
demand that county services within their borders are consistent with the level of
services outside their borders.
For example,in most counties,the county sheriff provides a high level of police
protection outside cities,while cities usually support a police department that is
reliant on their taxpayers' dollars. When a city wishes to contract with a county
for police protection,the calculation of the cost of this service should reflect the
fact that the city taxpayers already pay for part of the county budget relating to
the sheriff's department.
Many counties also provide and administer land-use controls in areas outside
cities. Cities could legitimately request planning assistance from the county
planning department at a reduced or no-cost level since city taxpayers also pay
part of this county budget item.
As a last example,all county attorneys prosecute felony violations that occur
anywhere within the county. However,most only prosecute misdemeanor
violations that occur outside cities even though their budget comes from all
taxpayers within the county.
City officials should pay attention to the way the county board spends the money
the county collects from property taxes levied within cities to ensure city
residents receive a proper share of county services.
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V. Special districts
Special-purpose districts are those units of local government created or
authorized by state law to perform specific duties or provide specific services in a
limited situation. Nationwide,the number of special-purpose units of government
is increasing. In Minnesota,however,the trend has been to avoid creating new
units of local government and to assign the solution of new problems to the
already existing general-purpose local governments—cities,counties,and towns.
A. Special-service districts
Minn.Stat.§§428A.01- Any city can create a special-service district under the general law,but most
428A.101. special-service districts are created under special laws that apply to a specific
city. In either case,the basic concept is the same.
A special-service district is a defined area within a city where special services are
provided and the costs of the special services are paid from revenues collected
from service charges imposed within that area. Under the general law,a special-
service district is created by ordinance. The city either defines the special
services to be provided by ordinance,or, in a special law permitting the
establishment of a district,the area may be specified in the law. Only property
that is classified and used for commercial,industrial or public-utility purposes
can be included in a special-service district.
Special services generally do not include services that are ordinarily provided
throughout the city from general-fund revenues,unless an increased level of
services is provided in the special-service district. The special-service charges are
levied against the net tax capacity of the benefited property in the district and are
collected in the same manner as property taxes.
B. Lake-improvement districts
Minn.Stat.§§ I03B.501- County boards may create lake-improvement districts for lakes within their
103s.581;459.20. boundaries, or a combination of cities and towns may create a district for a lake
located within their joint boundaries.The governing body of the county,city,
town, or a combination of them,may be the governing body of the lake-
improvement district or a governing body may be appointed.
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Lake-improvement districts have a variety of powers and may undertake various
projects to improve the lake and its adjacent shoreline. All the powers of a lake-
improvement district are first granted by the state to the general-purpose unit of
government,which then delegates any or all of the powers to the lake
improvement district.This is an example of how the Legislature has dealt with
the creation of special-purpose districts. The general-purpose units of
government that have the authority for a project, such as lake improvement,may
create a special-purpose district.
C. Soil-and-water-conservation districts
Minn.Stat.ch.103C. The Legislature has established soil-and-water-conservation districts that
geographically cover every part of the state. The boundaries of such districts are
generally consistent with county boundaries. Soil-and-water-conservation
districts include not only the unincorporated area of a county,but also the cities
within a county.
Cities may receive valuable information from these districts, including soil
information,maps of prime agricultural land,and maps of wetlands. Cities and
counties may cooperate with soil-and-water-conservation districts for special
improvements such as drainage and flood control.
The governing bodies of soil-and-water-conservation districts are made up of five
supervisors. Districts within the county nominate people to serve on the board of
supervisors,and voters within the county elect them at large.
D. Watershed districts
Minn.Stat.ch.103D. A watershed district is created through petition. Its governing body is a board of
managers. Watershed districts have considerable land and water-use regulation
authority. They may make improvements within their boundaries. When land and
water-use regulations of the watershed district are not consistent with city
development plans,city officials should work closely with watershed district
managers to resolve these conflicts.
E. School districts
Minn.Stat.ch.123A; Every area of the state has a school district organized to provide public
Minn.Stat.§471.59' education. Cities cooperate with these districts in the areas of elections,
continuing adult education,and recreation programs.
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F. Regional-development commissions and
the Metropolitan Council
Minn.Stat.§§462.381- Regional-development commissions and the Metropolitan Council contain
462.398. several counties within their boundaries. They provide technical assistance for
Minn.star.chs.473-473H. cities. In the metropolitan area,certain regulations of the Metropolitan Council
govern city land-use activities and other matters. The Metropolitan Council also
has operating authority in the areas of wastewater collection and treatment,
transit services, and other areas where a regional approach is necessary.
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Chapter 2
Change of boundaries, status,
and name
I. Minnesota Municipal Board and its successor—the Office of
Strategic and Long-Range Planning(Municipal Boundary
Adjustments)
IL Incorporation
III. Consolidation
IV. Dissolution
V. Separation from town
VI. Detachment
VII. Annexation
VIII. Change of name
I. Minnesota Municipal Board
and its successor—the Office
of Strategic and Long-Range
Planning (Municipal Boundary
Adjustments)
Through the Minnesota Constitution,residents of the state have given the
Minn.Const.art.XII,§3. Legislature the responsibility of establishing and regulating a system of local
government. The Constitution specifies that the Legislature may provide for
the creation,organization,administration,consolidation,division,and
dissolution of local government units and their functions and may change the
boundaries of cities.
The local government system in Minnesota has three basic units:towns,
counties,and cities.The town form of government is used in rural areas.
Towns have very limited taxing and regulatory powers.Emphasis is placed on
giving the electors maximum participation in governmental decision-making at
an annual meeting.
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The city form of government applies to urban and suburban areas.Cities have
broad taxing and regulatory powers.An elected council makes nearly all city
governmental decisions.
The Legislature eliminated the Minnesota Municipal Board as of June 1999,
Municipal Boundary and transferred its duties to the state Office of Strategic and Long-Range
Adjustments can be contacted Planning's Municipal Boundary Adjustments Office(Municipal Boundary
at:Office of Administrative Adjustments).The director of Municipal Boundary Adjustments exercises the
Hearings,Municipal Boundary powers that formerly belonged to the Municipal Board.
Adjustments,658 Cedar Street,
Room 300,St.Paul,MN
55155;651-284-3383.
Minn.Stat.§414.12. The transfer of duties did not change the substantive provisions of the laws
relating to municipal boundary adjustment.A system of alternative dispute
resolution,however,is now in place of the old system of hearings before the
Municipal Board.
Minn.Stat.§414.01.subd.1. The purpose of the law pertaining to incorporation,detachment,annexation,
and consolidation is stated in the law.In fulfilling these purposes,Municipal
Boundary Adjustments hears petitions and issues orders.
Minn.Stat.§414.02. With certain exceptions discussed in the section of this chapter on annexation
by ordinance and orderly annexation,Municipal Boundary Adjustment's
jurisdiction extends to all proposed annexations,consolidations,detachments,
and incorporations of new cities.
Minn.Stat.§414.09. Municipal Boundary Adjustments follows uniform procedures when
considering matters.To accomplish its tasks,Municipal Boundary
Adjustments may issue subpoenas;administer oaths and affirmations;compel
Minn.R.6000.0100-3400. the attendance and testimony of witnesses;and require the production of
books,papers,and documents.Municipal Boundary Adjustments has also
adopted rules of practice to follow in all of its proceedings.
U. Incorporation
Organizing as a city has certain advantages.Areas wishing to become cities
can initiate incorporation by petition or by resolution.The League maintains
a list of all incorporated places and their dates of incorporation.
A. Petition or resolution
Minn.Stat.§414.02,subd.1. To initiate an incorporation proceeding by petition, 100 or more property
Minn.stat.§414.011,subd.5. owners residing within an area can file a petition."Property owner"means
the fee owner of land,or the beneficial owner of land whose interest is
primarily one of possession and enjoyment in contemplation of ultimate
ownership.The term includes,but is not limited to,vendees under a contract
for deed and mortgagor.
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In the alternative,the town board with jurisdiction over the land in question
can also pass a resolution to initiate incorporation.The land cannot be within
the limits of an incorporated city,and some of the land must be platted into
lots and blocks according to law.
The law does not require any specific amount of land to be platted.Municipal
Boundary Adjustments must receive a copy of the petition or resolution for
incorporation,and it must contain the following information:
• The proposed name of the city.
• The names of all parties entitled to mailed notice under the law.
• The reason for incorporation.
• A map showing the proposed boundaries of the area to be incorporated.
B. Basic procedure
The basic procedure for incorporation includes the following steps:
• Serving a notice of intent to incorporate.
• The filing of the incorporation petition or resolution.
• Notice of hearing.
• A public hearing by Municipal Boundary Adjustments.
• Issuance of an order to make the incorporation.
Minn.Stat.§414.02,subd.4. • The election and qualification of city officers,at a date specified by
Municipal Boundary Adjustments.
C. Items that must be considered
Minn.Stat.§414.02,sued.3. As a guide in determining whether to approve a petition for incorporation,
Municipal Boundary Adjustments must consider the following items:
• Present population,number of households,past population,and projected
population growth for the subject area.
• Quantity of land within the subject area and the natural terrain, including
recognizable physical features,general topography,major watersheds,
soil conditions,and natural features like rivers, lakes,and major bluffs.
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• • Present pattern of physical development,planning,and intended land
uses in the subject area,including residential,industrial,commercial,
agricultural,and institutional land uses and the impact of the proposed
action on these uses.
• The present transportation network and potential transportation issues,
including proposed highway development.
• Land-use controls and planning presently in use in the area,including
comprehensive plans and policies of the Metropolitan Council where
applicable,and whether there are inconsistencies between the proposed
development and existing land-use controls.
• Existing levels of governmental services provided to the area,including
water and sewer service,fire rating and protection, law enforcement,
street improvements and maintenance,administrative services,
recreational facilities,and the impact of the proposed action on the
delivery of services.
• Existing or potential environmental problems and whether the
incorporation is likely to improve or to resolve these problems.
• Fiscal impact on the subject area and adjacent units of local government;
the present bonded indebtedness;the local tax rates of the county,school
district,and township;and other tax and government aid issues.
• Relationship and effect of the proposed incorporation on adjacent and
affected school districts within and adjacent to the area.
• Whether delivery of services to the subject area can be adequately and
economically delivered by the existing government.
• Whether necessary governmental services can best be provided through
incorporation or through annexation to an adjacent city.
• The degree of contiguity of the boundaries of the subject area and
adjacent units of local government.
• The applicability of the state building code.
Minn.Slat.§414.02.subd.3. Even though an area meets the legal test for incorporation,Municipal
Boundary Adjustments may deny the petition if annexation to an adjoining
city would better serve the area.
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Minn.Stat.§414.02,subd.3. At the hearing,Municipal Boundary Adjustments has authority to alter the
boundaries of the proposed incorporation by increasing the area to be
incorporated to include land that is,or is about to become,urban or suburban
in character.Municipal Boundary Adjustments may also exclude property
that may be better served by another unit of government.Municipal
Boundary Adjustments may also alter the boundaries to follow clearly
recognizable physical features.
D. Organizing the city government
Minn.Stat.§414.09,subd.3. If the incorporation is successful,the citizens must elect a slate of city
officers who will organize the new city's affairs and carry on its government.
Municipal Boundary Adjustments may provide for a ward system with not
less than three or more than seven councilmembers if it finds that wards will
provide proper representation in the incorporated area. A ward system may be
preferable if there is uneven population density in different parts of the area
or if agricultural lands are in the path of development. The city may abolish
the ward system after four years by a four-fifths vote of the council.
See Handbook,Chapter 3 for If Municipal Boundary Adjustments does not determine that a ward system is
procedures for adoption of necessary,the new city will be a statutory Plan A city.The city could,
optional plans.
however,adopt another optional plan at any time or the city could adopt a
charter.
See Handbook,Chapter 4 for
the process for adopting a
home rule charter.
III. Consolidation
Minn.Stat.§414.041; Proceedings for the consolidation of two or more cities in Minnesota are
Village of Lakeville v. Village under the jurisdiction of Municipal Boundary Adjustments.The courts will
of Farmington,297 Minn.524, not interfere with a decision of Municipal Boundary Adjustments unless it
211 N.W.2d 897(Minn.1973). appears it has not kept within its jurisdiction,has proceeded upon an
erroneous theory of law,or has acted arbitrarily and unreasonably without the
support of substantial evidence.
There are three ways to initiate proceedings for consolidation:
• The governing body of each included city must pass a resolution that is
submitted to Municipal Boundary Adjustments;
• A number of residents eligible to vote that is equivalent to at least five
percent of the voters who voted for governor at the last general election
must sign a petition.
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• Municipal Boundary Adjustments makes a motion.
Minn.Stat.§§414.041,subd The cities must be abutting.The statute defines"abutting"to include areas
1;414.011,subd.6 whose boundaries at least touch one another at a single point,including areas
where boundaries would touch except for an intervening roadway,railway,
waterway or parcel of publicly-owned land.Two or more cities can
consolidate if they have common boundaries,so that each city shares a
common boundary with at least one of the other cities.
The petition or resolution must include the following information about each
Minn.Stat.§414.09. city:name,description of boundaries,the reasons for requesting the
consolidation,and the names of all parties entitled to mailed notice. The party
initiating the proceeding must also serve copies of the petition or resolution
on all of the included cities.
A. Consolidation commission
Minn.Stat.§414.041,subds. When Municipal Boundary Adjustments receives a petition or a resolution
z,s. requesting consolidation or when it makes its own motion for consolidation,
it must appoint a consolidation commission from a list of candidates.Each
city council must submit ten names.The commission will include at least five
members from each city.The council in each city will submit three names
from which Municipal Boundary Adjustments will choose a chair for the
commission.The chairperson cannot be a resident of one of the cities,but
must reside in one of the counties.
People holding other elected or appointed offices may serve on the
consolidation commission.Commission members hold office until the
commission issues a consolidation report.Municipal Boundary Adjustments
fills vacancies in the commission by appointment.The commission makes
rules with reference to its operation, including quorum requirements.
The consolidation commission conducts hearings regarding the proposed
consolidation.The hearings must include,but are not limited to:a review of
the content of any city charter for the proposed consolidated city or the form
of government of the proposed consolidated city,and an analysis of whether
a ward system would best serve the proposed consolidated city.
Minn.Stat.§§414.041,subd. The consolidation commission must also consider the same factors specified
3;414.02,subds.3,5. for incorporation of a municipality.
Based on these and other factors,the commission must issue a report with
findings and recommendations to Municipal Boundary Adjustments.The
report is due within two years from the date Municipal Boundary
Adjustments appoints the commission.
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B. The role of Municipal Boundary
Adjustments
Minn.Stat.§414.041,subds. After receiving the commission's report,the director of Municipal Boundary
4,s. Adjustments designates a time and a place for a hearing.
Municipal Boundary Adjustments must consider the subjects and factors
reviewed by the consolidation commission.It may accept,amend,return to
the commission for amendment or further study,or reject the commission's
recommendations.
Municipal Boundary Adjustments must order the consolidation if it finds that
Minn.Stat.§§414.02,subd.3; it is in the best interest of the cities.Municipal Boundary Adjustments must
414.09.subd.3;414.01,subd. consider the same factors specified for incorporation of a municipality.If it
15 orders consolidation,it must provide for election of new city officers in
accordance with Minn.Stat. §414.09.The order must indicate the estimated
increased costs to the newly enlarged city resulting from the consolidation
and the time period that such cities shall be allowed special levies for those
increased costs.
Minn.Stat.§414.041,subd.5. If the most populous of the consolidating cities is a statutory city,the new
city will be a statutory city with an Optional Plan A government.However,
the new city may adopt an alternate plan or a city charter at any time.If the
most populous of the consolidating cities is a home rule charter city,that
city's home rule charter will govern the new city.
Minn.Stat.§414.041,subd.5. If the commission proposes a home rule charter for the new city,Municipal
Boundary Adjustments may combine the issue of the adoption of the charter
and the vote on approval of the order for consolidation into one question on
the ballot,and submit it at a special or general election.Municipal Boundary
Adjustments may recommend not less than three or more than seven wards.
The city may abandon the ward system by a four-fifths vote of the council
any time after two years.The provisions for approval of the consolidation
vary depending on how the consolidation was initiated.
Minn.Stat.§414.041,subd.5. The ordinances of all the cities remain in effect within their former
boundaries until repealed by the governing body of the new city.
Minn.Stat.§414.041,subd.5. The new city assumes the name of the most populous city,unless a majority
of the cities or the consolidation commission passes a resolution selecting
another name.
Minn.Stat.§414.041,subd.5. The consolidation will not reduce the number of license privileges in the
included cities.
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Upon consolidation,all money,claims or properties,including real estate the
former cities owned,held or possessed,and any proceeds or taxes the cities
levied(collected and uncollected)become the property of the new city to use
or dispose of as the council deems best.
Minn.Stat.§414.041,subd.7. Where one city is receiving substantially fewer services before consolidation,
the director may require a gradual increase in the levy in that city,over a
period not to exceed five years,so it is equal to the tax rate in the new city.
Minn.Stat.§414.067,subd.2. Any bonded indebtedness of a town or former city,which was consolidated
into a new city,must be paid for by the persons living within the boundaries
of the old community unless the councils of the affected communities agree,
by resolution,that the new community will assume the bonded indebtedness
of the old units of government.
Minn.Stat.§272.67,subds.1, Municipal Boundary Adjustments may order the consolidated city divided
2. into urban service districts and rural service districts.These districts are
separate taxing districts for the purpose of all municipal property taxes except
those levied for the payment of bonds and judgments.In other words,the
rural district would be taxed at a lower rate than the urban district because it
would receive less service from the city. These districts may be changed by
the city council in the same way an ordinance is changed.
C. Consolidation by petition
Minn.Stat.§414.041,subd.6. If the resident voters of a city initiated the consolidation by petition,
Municipal Boundary Adjustment's consolidation order is final when the city
council in each of the cities approves the resolution,unless voters of an
affected city petition their city council for a referendum on the consolidation.
At least ten percent of the number of resident voters who voted for governor
at the last general election must sign the referendum petition.
The residents must submit the petition within 90 days of the final date of
Municipal Boundary Adjustment's order or the date of the city council's final
approval of Municipal Boundary Adjustment's order,whichever is later.
After Municipal Boundary Adjustments receives and verifies the petition,it
must order the cities to conduct separate referendums at a general or special
election in each city on the same day. The cities must hold the referendums
within six months of Municipal Boundary Adjustment's receipt of the
petition.
The cities must cover the costs of the referendums.A majority of those voting
in each city must approve the proposed consolidation.The chief election
judge must certify the results to Municipal Boundary Adjustments within ten
days after the referendums,and then Municipal Boundary Adjustments must
notify all parties of the election results.
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D. Council resolution
Mimi.Stat.§414.041,subd.6; If resolutions of the city councils initiated the consolidation,the director's
See requirements under order for consolidation is final unless ten percent or more of the resident
consolidation by petition.
voters petition for a referendum.
E. Director's own motion
If the director's own motion initiated the consolidation,the director's order
Mimi.Stat.§414.041,subd.6. will take effect only after the council of each city approves it by a majority
vote,or after the qualified voters vote on the order at a general or special
election.The director will fix the form of the ballot. If a majority of those
voting on the question in each city are in favor of its adoption,the director's
order will become effective.
F. Referendum
Minn.Stat.§414.041,subd.6. Even if the city council in one of the cities does not approve the director's
consolidation order,ten percent or more of the resident voters of that city
who voted for governor at the last general election can petition the city
council for a referendum on the consolidation.(See requirements under
consolidation by petition.)If a majority of those voting in that city approve
the director's order, the consolidation will occur.
Minn.Stat.§414.041,subd.5. If the consolidation is denied or defeated in a referendum, no proceeding for
consolidation of the same cities can be initiated for at least two years from the
date of the order unless authorized by the director.
G. Effective date for consolidation
Minn.Stat.§414.041,subd.8. The consolidation is effective upon the election and qualification of new
municipal officers,or at such later date as set by the director's order.
H. Alternative procedure for consolidation
Minn.Stat.§465.81. An alternative procedure provides for the consolidation of two or more cities
with each other,cities with towns,towns with other towns,or counties with
other counties.The process requires neither application to nor approval from
Municipal Boundary Adjustments.
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Minn.Stat.§465.82. This procedure for consolidation begins when two or more contiguous local
units of government jointly develop a plan for cooperation and consolidation.
The statute is very specific about the information the plan must contain.For
instance,it must describe cooperative activities and combining of services
that would lead to an eventual merger of the local governments.Each
governing body must approve the plan by resolution.Local governments in
the metropolitan area must also submit their plan to the Metropolitan Council
for review and comment.
Minn.Stat.§465.84. The local governments must hold a consolidation election during the first or
second year of implementation.If voters reject the consolidation,the local
governments may submit the same or similar question to a vote one more
time,the following year.
IV. Dissolution
Two processes are available to dissolve,or"unincorporate"a statutory city.
• A number of voters equal to one-third of those voting at the last city
Minn.Stat.§412.091. election may petition the council for a special election on the question of
dissolving the city.Municipal Boundary Adjustments must hold hearings
prior to the election and determine what town(s)the land will belong to if
the dissolution occurs.A favorable majority vote of those voting on the
question at the special election will dissolve the city.
Minn.Stat.§412.093. • Whenever a city fails to hold city elections for two consecutive years,
and if one or more bonds or claims against the city remain unpaid,any
bondholder or claimant may secure the dissolution of the city and
payment of the city's bonds and claims.
In any of these events,the net result is the same.All city assets will go
toward repayment of outstanding bonds or claims after which all remaining
assets become the property of the town or the towns in which the city was
located.
Minn.Stat.§410.30. These provisions apply only to dissolution of statutory cities.For a home rule
charter city to dissolve,it must return to statutory city status by abandoning
its charter and then dissolve in the above manner.
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V. Separation from town
Minn.Stat.§412.081. Some Minnesota cities that incorporated prior to July 1, 1949,have never
been separated from the town or towns where they are located.The city is
still part of the town for purposes of general town government,town
elections,town assessments,and ownership of the town hall and other
property.All statutory cities incorporated after July 1, 1949,were
automatically separated from the town when they incorporated.All cities in
the seven-county metropolitan area,regardless of the date of their
incorporation, are separate from the town for election purposes.
For most purposes,cities not separated from the town have four distinct
characteristics:
• The town assessor is also responsible for assessing all property in the
city.The city has no assessor of its own.
• The town levies taxes for general town purposes against property in the
city.
• The city does not constitute a separate election district in state and
national elections.Town officials still administer these elections.
• While town voters living outside city limits can't vote on city matters or
hold city offices,city residents may vote at town meetings,in town bond
elections,and hold town offices.
None of these characteristics exist in cities that have been separated from the
town for governmental purposes.
There are two methods of separating cities from towns for election and
assessment purposes.One is by action of the city,with or without notice to
the town.The other is by petition of town or city voters,or both,to the town
board for a vote on the proposal at the next annual town meeting.Either of
these methods may be used,but they may not be used concurrently.
Minn.Stat.§412.081. Cities may separate from their respective towns for election and assessment
purposes by getting the approval of their voters with a ballot question at a
general or special election.The question of separation can be brought to the
voters either by the council's own motion,or by a petition signed by a
number of voters equal to 25 percent of those voting in the last preceding city
election.If the voters favor separation,the city clerk must notify the county
auditor and the secretary of state.The separation then takes effect 30 days
after the date of the election.
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Minn.scat.§365.44. Some towns may take the initiative in separating from the city.At least 50
voters of the town must sign a petition requesting an election on the question
and file it with the town clerk. The clerk must insert a statement in the notice
calling the next annual town meeting indicating the separation proposal will
be before the voters at the meeting.
If a majority of the votes cast at that meeting favor separation,the town is
separated from the city for all purposes.Although both town and city
residents may sign the original petition,only town voters may actually
participate in the election.The town clerk should notify the county auditor,
secretary of state,and state auditor of the change in status of the city.
This procedure is the only method a town may use to separate itself from a
city.The county board has no power to separate governmental units.
VI. Detachment
Minn.Stat.§414 06. The only way to detach land that is already part of a city(remove it from the
city boundaries)is with Municipal Boundary Adjustment's approval.To
qualify,the land must be adjacent to the city's boundaries,rural in character,
and not developed for urban residential,commercial or industrial purposes.
The following procedures govern the process of detaching land:
• Municipal Boundary Adjustments must receive a petition requesting the
detachment.The petition may be initiated by council resolution or by the
owners of the land to be detached.If the land constitutes less than 40
acres,all of the property owners must sign the petition.If the land is
more than 40 acres,the signatures of 75 percent of the owners are
sufficient.The petition must describe the boundaries of the land,the
resident population,the number and character of any buildings on the
land,and any city improvements to the land.
Minn.Stat.§414.12,subd.1. • Unless the city and the owners of the land to be detached submit identical
petitions,Municipal Boundary Adjustments must hold a hearing on the
proposal.Municipal Boundary Adjustments may also apply the
alternative dispute resolution process authorized in state law.
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• After the hearing,Municipal Boundary Adjustments must issue its order.
No popular vote is necessary in any detachment proceedings.The
director may grant the petition if it finds:the conditions set forth in the
petition exist;the detachment would not affect the symmetry of the
detaching city;and,the land is not needed for reasonably anticipated
future development of the detaching city.Municipal Boundary
Adjustments may decrease the size of the detachment area. It may also
relieve the detached area of any city from indebtedness,and require the
assumption of town indebtedness in such proportions as it deems
equitable.The detached land then becomes a part of the town in which it
is located.Municipal Boundary Adjustments may deny the detachment if
it finds the remainder of the city cannot continue to carry on the functions
of government without undue hardship.
A. Concurrent detachment and annexation
Minn.Stat.§414.061,subds. Property in one city that is contiguous or bordering upon another city may be
1''' concurrently detached and annexed by the adjoining city.There are three
Minn.Stat.§414.12,subd. 1; ways to initiate the procedure:by the concurrent resolutions of the cities;by
Minn.Stat.§414.061,subd.4. Municipal Boundary Adjustment's own initiative(if a neighboring city
In re City of Brooklyn Park, completely surrounds the area);or,by a petition of all property owners in the
305 N.W.2d 596(Minn.1981). affected area.Municipal Boundary Adjustments must conduct a hearing and
issue an order either approving the concurrent action with or without
modifications,or denying the detachment and annexation of the property.
The alternative-dispute-resolution process authorized by law may also be
applied.Municipal Boundary Adjustment's order is final and no subsequent
elections are necessary.
VII. Annexation
Annexation questions pose some of the most difficult technical and policy
problems facing municipal officials.Annexations present such difficulties
because sound,realistic facts and estimates regarding the financial and
service implications of a proposed annexation are necessary.Annexation
involves important policy questions relating to the welfare of the entire urban
community,including both the city and surrounding land.
The council must determine if the city,as a corporate entity,will grow with
the surrounding economic community.The council must also decide whether
the city can extend services to the surrounding developing areas and annex
those areas without incurring a heavy financial responsibility that results in
increased taxes or other fees and charges.
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Annexation allows cities to grow in an orderly,planned manner.Cities need
to evaluate and study five questions before deciding to pursue an annexation.
• How will annexation affect the residents,landowners,and property in the
area to be annexed?
• What additional costs will the city incur when providing city services to
the annexed area?
• How much revenue can and will the city obtain through taxes and other
charges levied against the annexed area?
• What is the present status of land available in the area and the outlook for
future development?
• What impact,if any,will annexation have on development in the area?
The most important considerations should be the annexation's impact on the
area,and whether annexation to the city will provide residents and taxpayers
in the area with benefits commensurate with any additional taxes they may
have to pay.For example,will police and fire protection improve?Will more
protective building codes,zoning laws,and subdivision regulations apply and
will the city enforce them?Will more city utilities be available or be
available at lower rates?Benefits such as these should at least be equivalent
to any added costs to taxpayers in the annexed area.Annexation's value is
questionable if its major consequence is to increase tax revenues of the
annexing community.
A second consideration is the cost the annexing city will incur. Newly
annexed areas might cause three different kinds of cost burdens.
The first of these cost burdens is the daily operating cost. This includes the
additional cost of providing the area with police protection, fire protection,
street maintenance,park maintenance,street lighting,and recreational
programs.
The second cost burden is capital cost.Unless it is already fully developed,
the new area will need certain capital improvements as it develops,including
streets;park land and improvements;and sewer,water,and other utility
facilities.In many cases,the city may partially recover these costs through
special assessments,but usually some cash outlay is necessary.Furthermore,
public-improvement bonds that are repayable through special-assessment
levies still add to the city's gross debt and,thus,place a greater burden on its
ultimate borrowing capacities.
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Finally,the city must allow for an increase in demands on existing public
facilities.After the annexation,the residents in the new part of the city will be
eligible to use all the services provided by the city.The council should
determine what impact,if any,this will have on the operation of the library,
hospital,nursing home,swimming pool,golf course,and similar facilities
that charge more for non-residents.
Only when the council thoroughly evaluates these and similar factors will a
true picture of added city expenditures emerge.
The third set of questions relates to taxes and other revenues the city might
obtain from the annexed area. This involves more than just a determination of
receipts from the area during the next tax and budget year.The council
should also consider the long-term revenue liabilities of the area in terms of
its ability to support municipal services as it either develops or declines.
In addition to knowing how much revenue a certain mill-rate levy will
produce,it is also important to know whether property in the annexed area
can bear the burden of added charges for governmental services.The council
must determine if the property owners in the annexed area will be able to pay
the additional taxes and special assessments the city will levy once the area
becomes part of the city.The council should look at this issue in terms of the
present and future paying capacity of the property owners.
The solutions to these issues depend on the answers to the questions dealing
with present development and estimates for probable future development in
the area.Such estimates must be both reasonable and conservative.It is better
to underestimate than to overestimate when evaluating the taxpaying
potential of a given geographic area.
The council should also attempt to determine what impact,if any,the
proposed annexation would have on future development in the area. This
involves more than determining whether development will be faster or slower
due to the change in governmental status.The council should also look at
which governmental form will most effectively stimulate and control future
development and keep it in harmony with the interests of the urban
community and with the social and economic area.In addition,the council
should decide whether city control would best enforce regulations governing
building standards,population density,land use,and other factors
instrumental in the proper,healthy urbanization of the area.
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Often, an area being considered for annexation has been developed in a less
dense manner than the adjoining city;thus,the property tax revenues from
that area in relation to the amount of services it will receive as part of the city
will not be in the same proportion as the adjoining city.The council may
wish to weigh this factor against the long-term implications of not bringing
the area into the city.
This information will let the city council make policy decisions regarding the
merits and demerits of an annexation proposal.Having obtained this
information,the council should seek a final decision that will protect and
promote the best interests of the city,the area to be annexed,the county and
town in which the area is located,and the entire social and economic
community surrounding the city.
A. Statutory requirements for annexation
Minn.Stat.§§414.031- Annexation of land cannot occur unless it meets the following three
414.033. requirements:
Minn.Stat.§414.031,subd.4. First,the land must adjoin the corporate limits of the annexing city.The
Minn.Stat.§414.011,subd.6. statute speaks of annexation of unincorporated territory abutting a city.Land
abuts a city when its boundaries and those of the city coincide or touch one
See,2 McQuillin Municipal another so that after annexation,the annexed territory will be united with the
Corporations§7.20(3 ed.
Revised 1996)(citing cases to city in forming a homogeneous community that can provide all of its parts
this effect);See also,State v. with the benefits of local government.The statute defines"abuts"to include
Village of Mound,234 Minn. areas with boundaries that at least touch one another at a single point,or with
531,48 N.W.2d 855(Minn.
1951);Village of Orono v. boundaries that would touch but for an intervening road,railroad,waterway
Village of Long Lake,247 or parcel of publicly owned land.In those cases where an annexation needs
Minn.264,77 N.W.2d 46 the approval of Municipal Boundary Adjustments,it may alter the boundaries
(Minn.1956). of the area to preserve or improve the symmetry of the area.
Minn.Stat.§414.031,subd.4. Second,Municipal Boundary Adjustments may approve an annexation if it
finds city governance of the area is necessary to protect the public health,
safety,and welfare;if annexation is found to be in the best interests of the
Village of Orono v. Village of city and the territory to be annexed;or,if land is,or is about to become,
Long Lake,247 Minn.264,77
N.W.2d 46(Minn.1956). suburban or urban in character. This generally refers to land in close
proximity to the city,of limited size,suburban in character,and with a
community of interest so it will adapt to city government.
Minn.Stat.§414.061. Third,the land may not already be part of another city.A concurrent action
See Section VI on detachment. of the involved cities,however,could result in a detachment from one and
annexation to the other through a different procedure.
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B. Annexation procedures
Contact Municipal Boundary Although the statutes set out three different annexation procedures,only one
Adjustments for more p rocedure may apply in an y g iven situation.The appropriate procedure information at Office of
Administrative Hearings, depends on the ownership,size,and other characteristics of the land under
Municipal Boundary consideration.For annexation purposes,the jurisdiction and authority of
Adjustments,Room 300,658 Municipal Boundary Adjustments is uniform for all communities throughout
Cedar Street,St.Paul,MN
55155;(651)284-3383. the state.Municipal Boundary Adjustments has information to assist units of
government in presenting evidence in boundary-adjustment proceedings.
The three annexation procedures are applicable in different situations and
require completing certain steps.
1. Annexation by ordinance
Minn.Stat.§414.033. In some circumstances,a city may annex unincorporated property simply by
passing an ordinance declaring the land as annexed to the city.Cities may
annex by ordinance when: (1)the city owns the land to be annexed;(2)the
land is completely surrounded by land already within city limits;(3)the land
abuts the city and the area to be annexed is 120 acres or less,not presently
served or capable of being served by available public wastewater facilities,
■-"N and all the landowners petition the city for annexation(except as provided for
by an orderly-annexation agreement,the director must not accept a petition
from a property owner for more than one annexation per year of property
contiguous to the parcel previously annexed under this clause);or(4)the land
is within two miles of the city and has been approved for platting after Aug.
1, 1995,and the platted lots average 21,780 square-feet or less.
The law considers land described above to be urban in character.The city can
annex it merely by passing an ordinance in all these situations. The city must
file copies of the ordinance with Municipal Boundary Adjustments,the town
clerk,the county auditor,and the secretary of state.Annexation does not
become effective until Municipal Boundary Adjustments approves the filing.
Before a city may annex land under the criteria specified in 2,3 or 4 above,it
must serve notice of intent to annex upon the town board and all landowners
within and contiguous to the area to be annexed,and hold a public hearing.
Minn.Stat.§§115.49,subd. Land may also be annexed by ordinance if the Minnesota Pollution Control
2a;414.0335. Agency(MPCA)has required the city to extend a government service outside
its jurisdiction into an unincorporated area.
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Minn.Stat.§414.033,subd.3. If 60 percent or more of the perimeter of the area to be annexed borders the
See discussion of hearings city and the area is 40 acres or less,the city may annex it by ordinance under
under section VII B 3 Petition, the criteria specified in 3 above.However,the city must serve notice of its
hearing and order of intent upon the town board and wait 90 days for the town's objection.If the
Minnesota Planning. town board raises objections,the city may abandon the proceedings or
Municipal Boundary Adjustments will hold hearings and order or deny the
annexation.
Minn.Stat.§414.033,subds. If the land is platted,or if unplatted does not exceed 200 acres,a majority of
5,13 the owners may petition the council for annexation.At least 60 days before a
petition is filed,the petitioner must notify the municipality that the petitioner
intends to file a petition for annexation.
Minn.Stat.§414.033,subd. At least 30 days before a petition is filed for annexation,the petitioner must
13. be notified by the municipality that the cost of electric utility service to the
petitioner may change if the land is annexed to the municipality.The notice
must include an estimate of the cost impact of any change in electric utility
services,including rate changes and assessments,resulting from the
annexation.Within ten days,copies of the petition must go to Municipal
Boundary Adjustments,the town board,and the county board of the town and
county in which all or any part of the land is located,and to the governing
body of all cities abutting the land to be annexed.
r.
Minn.Stat.§414.033,subd.s. The town board or the governing body of another city can submit written
objections to the annexation to Municipal Boundary Adjustments and to the
city within 90 days of the filing of the petition.If either the town or a city
files objections,the annexing city can take no further action on the petition.
The petition automatically goes to Municipal Boundary Adjustments,which
will hold a hearing and issue its order.
Minn.Stat.§414.033,subd.s. If no one files objections and the council determines the property proposed
for annexation is currently or is about to become urban or suburban in
character,the council may pass an ordinance annexing the land.However,if
all property owners involved do not sign the petition,a public hearing before
the city council is necessary before the city can adopt the ordinance.All
property owners in the affected area must receive a mailed notice at least 30
days before the hearing.
Minn.Stat.§414.033,subds. Except when a town or city objects to an annexation,no action by Municipal
7,12. Boundary Adjustments is necessary to annex land in this manner. However,
the city must file copies of the annexing ordinance with Municipal Boundary
Adjustments,the county auditor,the town clerk,and the secretary of state.
The annexation does not become effective until Municipal Boundary
Adjustments approves the ordinance.
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Minn.Stat.§414.033,subd.6. If a city receives a petition for annexation of land, and all or part of the land
is already included in a petition pending before Municipal Boundary
Adjustments for incorporation or annexation,the city cannot act on the
petition until Municipal Boundary Adjustments makes a final order on the
pending petition.
Municipal Boundary Adjustments stresses that most annexations by
ordinance are exceptions to the requirement for a hearing.Cities must clearly
show that the facts making the exception operative are present.Municipal
Boundary Adjustments will not approve an annexation ordinance without this
Gilbert v.Minnesota stare information.The Minnesota Court of Appeals has held,however,that once
Office of Strategic and Long- the criteria in the statute authorizing annexation by ordinance have been
Range(Minn.Planning,No.cx-01-
satisfied,Municipal Boundary Adjustments does not have authority to
1221 in.Ct.App.Jan.29, p �' �'
2002)(unpublished decision). conduct a further review of the proceeding,and it must approve the
annexation.
2. Orderly annexation
Minn.Stat.§414.0325. Municipal Boundary Adjustments promotes orderly annexation because it
emphasizes negotiation and agreement.At least ten days before the city or
township adopts an orderly-annexation agreement,a notice of the intent to
include property in an orderly-annexation area must be published in a
newspaper of general circulation in both the township and city.The notice
must clearly identify the boundaries of the area proposed to be included in the
orderly-annexation agreement and the date,time,and place of the public
Minn.Stat.§414.033 informational meeting to be held as provided in section 414.0333.The cost of
providing notice must be equally divided between the city and the township,
unless otherwise agreed upon by the city and township.
Minn.Stat.§414.0325. One or more townships and one or more cities can initiate an orderly-
annexation process by passing a joint resolution designating an
unincorporated area in need of orderly annexation.One or more cities,by
joint resolution with the county may also designate an unincorporated area in
which there is no organized township government as in need of orderly
annexation.
Once Municipal Boundary Adjustments has received the joint resolution,an
initiation of an annexation of any part of the designated area can occur by
either the submission of a resolution from any party to the original joint
resolution or by Municipal Boundary Adjustments on its own motion.
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Minn.Stat.§414.0325,subd. If the joint resolution for orderly annexation of an area states that no
1;city of Waite Park,.Minn. alteration of the area is appropriate,Municipal Boundary Adjustments may
(free ofAdmin.Hearings,No.
A05-1888(Minn.Ct.App. review and comment on the resolution,but it may not alter the boundaries.
July 18,2006)(unpublished Likewise,if the joint resolution sets conditions for the annexation and states
decision). Municipal Boundary Adjustment's consideration is not necessary,Municipal
Boundary Adjustments may only review and comment on the resolution and
must order,within 30 days,the annexation under the terms of the resolution.
Minn.Stat.§414.0325,subd. An orderly-annexation agreement is a binding contract upon all parties to the
6. agreement,and is enforceable in the district court in the county in which the
unincorporated property in question is located.The provisions of an orderly-
annexation agreement are not pre-empted by any other provision of
annexation law unless specifically provided for by the agreement.If an
orderly-annexation agreement provides the exclusive procedures by which
the unincorporated property identified in the agreement may be annexed to
the city,the city shall not annex that property by any other procedure.
Minn.Stat.§§115.03; Whenever the MPCA or another state agency orders a city to extend
115.071;115.49;414.0335. municipal services to a certain unincorporated area,Municipal Boundary
Adjustments may consider designating the area for orderly annexation.
Minn.Stat.§462.3535,subd. If a city designates an urban growth area based on a community-based
5.
comprehensive plan,an orderly-annexation agreement must then be
See Handbook,Chapter 16 for negotiated.
a discussion of community-
based planning.
Minn.Stat.§414.09. When Municipal Boundary Adjustments receives a joint resolution for
annexation of part of the designated orderly-annexation area,it must schedule
a hearing following the requirements for hearings in other annexation actions.
Minn.R.6000.0100-.3400. If the joint resolution provides for the conditions for annexation of an area
and states that board consideration is not necessary,Municipal Boundary
Minn.Stat.§414.0325,subas. Adjustments may review and comment on the resolution,but it shall,within
1.3;City of Waite Park v. 30 days,order the annexation under the terms of the resolution.
Minn.Office ofAdmin.
Hearings,No.A05-1888
(Minn.Ct.App.July 18,2006)
(unpublished decision).
If the resolution allows for consideration by Municipal Boundary
Adjustments,Municipal Boundary Adjustments may order the annexation if it
makes any of the following findings:
• The area proposed for annexation is currently,or is about to become,
urban or suburban in character, and the annexing city is capable of
providing the needed services within a reasonable time.
• The existing town form of government is not adequate to protect public
health,safety and welfare.
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• Annexation would be in the best interest of the proposed area.
Municipal Boundary Adjustments may deny the annexation if it conflicts
with any provision of the joint agreement.Municipal Boundary Adjustments
may increase or decrease the boundaries of the proposed annexation to
include property that is in need of,or will be in need of,city services,unless
the joint resolution states no alteration of boundaries is appropriate.
If Municipal Boundary Adjustments denies annexation,the law prohibits any
other proceedings for the annexation of substantially the same area within
two years of its order,unless a majority of the area's property owners initiate
the new proceeding and affected parties to the resolution support the
resolution.In all cases,Municipal Boundary Adjustments will set out the
factors that are the basis for its decision.
Minn.Stat.*471.59. In the area designated for orderly annexation,a joint resolution may provide
for the establishment of a planning and land-use-control board under the Joint
Powers Act. This board would have all of the powers contained in the
Minn.Stat.0462.35-.364. Municipal Planning Act. It also would have the authority to adopt and
enforce the uniform fire code.The joint resolution may provide that joint
planning and land-use controls apply to any or all parts of the area designated
for orderly annexation,as well as to any adjacent unincorporated or
n
incorporated area described by the joint resolution.
Minn.Stat.§462.357,subd. 1. If the joint resolution does not provide for joint planning and land-use
Minn.Stat.§462.358,subd.1. control,the following procedures take effect.If the county and townships
agree to exclude the area from their zoning and subdivision ordinances,the
city may extend its zoning and subdivision regulations to include the orderly-
annexation area.If the county and township do not agree to such
extraterritorial zoning and subdivision regulation,zoning and subdivision
regulation within the orderly-annexation area will be under the control of a
three-member committee.The governing bodies of the city,town,and county
will each appoint one member to the committee.The committee serves as the
governing body and the board of appeals and adjustments within the orderly-
annexation area. The committee has all the powers provided by the Municipal
Planning Act,plus the authority to adopt and enforce the uniform fire code.
Municipal Boundary Adjustment's order is effective when the director issues
it or at some later date,if specified in the order.No annexation election is
necessary.
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•
CHAPTER 2
Contact Municipal Boundary
Adjustments for more 3. Petition, hearing, and order by Municipal
information at Office of
Administrative Hearings, Boundary Adjustments
Municipal Boundary
Adjustments,Room 300,658
Cedar Street,St.Paul,MN
55155; (651)284-3383.
Minn.Stat.§414.031. If a city cannot annex land by ordinance or by orderly annexation,the
annexing procedure is outlined in this section.
a. Initiating the proceeding
Before initiating any boundary-adjustment request,the city,township,county
or property owner should meet to discuss planning issues.Any affected party
may call a meeting at which the public should be allowed to participate.The
party requesting the boundary adjustment should notify Municipal Boundary
Adjustments of the outcome of any meetings.Holding these meetings is
optional,but it is strongly encouraged by Municipal Boundary Adjustments.
b. The petition
A petition for a public hearing before Municipal Boundary Adjustments may
come from:(1)a resolution of the annexing city;(2)a resolution of the town
containing the area to be annexed;(3)a petition of 20 percent of the property
owners or 100 property owners,whichever is less,residing in the area to be
annexed;or(4)a resolution of the city council,together with a resolution of
the town board,stating a desire to annex the entire township to the city. In
addition,in the case of state-owned property,the executive council of the
Minn.Stat.§414.065. state may petition for a hearing.
The petition must go to Municipal Boundary Adjustments.If property owners
initiate the proceeding,they must also include a copy of a resolution of the
annexing city supporting the proposed annexation.The petition must set forth
the boundaries of the area proposed for annexation,names of all parties
entitled to notice,and reasons for requesting annexation.For jurisdictional
purposes,the petition should also show the area meets the three minimum
statutory requirements for annexation.
All petitions for boundary adjustment must include a fact-finding form.The
form must detail the results of the planning meeting outlined above if one
was held. If the boundary adjustment is contested,Municipal Boundary
Adjustments may require the parties to meet at least three times over a 60-day
Minn.Stat.§414.01,subd.16. period.At least one of the meetings must be open to the public and allow
public comment.In addition,a contested boundary adjustment will trigger the
preparation of a fact-finding report by Municipal Boundary Adjustments.
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c. Mediation and arbitration
Minn.Stat.§414 12. If efforts to resolve boundary issues fail,and the issues have not previously
been mediated,the parties may be required to participate in an alternative-
dispute-resolution process.Municipal Boundary Adjustments may require
parties to:choose a mediator of their own;accept a mediator assigned by the
Office of Dispute Resolution;or accept the mediation services provided by
the Office of Administrative Hearings.Fees for mediation may be split as
agreed to by all the parties. If the parties do not agree to a division of the
costs,they must be allocated on an equitable basis by the mediator,arbitrator
or chief administrative law judge.
d. Joint informational meeting
2006 Minn.Laws ch.270§10 There must be a joint informational meeting of the city council of the
to be codified as Minn.Stat.§ annexing city and the town board of supervisors of the township containing
414.0333. the land proposed to be annexed or included in annexation proceedings under
section 414.031.For an annexation under section 414.031,the joint
information meeting must be held after the final mediation meeting or the
final meeting held pursuant to section 414.01,subd. 16, if any,and before the
hearing on the matter is held.If no mediation meetings are held,the joint
/"•■ information meeting must be held after the initiating documents have been
filed and before the hearing on the matter. The time,date,and place of the
public informational meeting must be determined jointly by the chair of the
town board of supervisors and the mayor of the annexing city.A joint notice
shall be published in a newspaper of general circulation within both the city
and the township at least ten days before the date for the meeting.The clerk
of the township must record minutes of the proceedings of the informational
meeting and the city clerk must make an audio recording of the informational
meeting.
e. The powers and duties of Municipal Boundary
Adjustments
After mediation and arbitration,Municipal Boundary Adjustments or its
designated decision-maker(mediator or arbitrator)may order the annexation
if it makes any of the following findings:
• City government of the property will protect the public health,welfare,
and safety.
• The property is,or is about to become,urban or suburban in character.
• Annexation would be in the best interest of the subject area.
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Municipal Boundary Adjustments or its designated decision-maker may deny
the annexation if it makes any of the following findings:
Town of Burnsville v.City of • The increase in revenues for the annexing city bears no reasonable
Bloomington,268 Minn.84, relation to the monetary value of benefits conferred upon the annexed
128 N.W.2d 97(Minn.1964).
area.
• Annexation of all or a part of the property to an adjacent city would
better serve the interest of the residents of the property.
• The remainder of the town would suffer undue hards hip.
Municipal Boundary Adjustments or its designated decision-maker may alter
the boundaries of the area to be annexed:
• By increasing or decreasing the area to include only property that is,or is
about to become,urban or suburban in character.
• To add property abutting the area proposed for annexation in order to
follow visible,clearly recognizable features.
• To exclude property that may be better served by another unit of
government.
If Municipal Boundary Adjustments or its designated decision-maker
determines another city or town could better serve part of the area,Municipal
Boundary Adjustments may initiate and approve annexation on its own
motion by conducting further hearings and issuing orders.In all cases,
Municipal Boundary Adjustments must indicate the basis for the decision.
Minn.Stat.§414.031,subd.4. In arriving at its decision,Municipal Boundary Adjustments or its designated
decision-maker must consider the following factors:
• Recordings and public documents from joint informational meetings
under section 414.0333.
• Present population and number of households,past population,and
projected population growth of the annexing city,subject area and
adjacent units of local government.
• Quantity of land within the subject area and adjacent units of local
government and natural terrain, including recognizable physical features;
general topography;major watersheds;soil conditions;and such natural
features as rivers,lakes,and major bluffs.
• Degree of contiguity of the boundaries between the annexing city and the
subject area.
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• Present pattern of physical development,planning and intended land uses
in the subject area and the annexing city including residential,industrial,
commercial,agricultural,and institutional land uses and the impact of the
proposed action on those land uses.
• The present transportation network and potential transportation issues,
including proposed highway development.
• Land use controls and planning presently in use in the annexing city and
in the subject area, including comprehensive plans for development in the
area and plans and policies of the Metropolitan Council and whether
there are inconsistencies between the proposed development and the
existing land use planning controls.
• Existing levels of governmental services in the annexing city and the
subject area, including water and sewer,fire rating and protection,law
enforcement,street improvements and maintenance,administrative
services,and recreational facilities,and the impact of the proposed action
on the delivery of these services.
• The implementation of previous annexation agreements and orders.
• Existing or potential environmental problems and whether the proposed
action is likely to improve or resolve these problems.
• The annexing city's plans and programs for providing needed and
enhanced governmental services to the subject area in a cost-effective and
feasible manner within a reasonable time from the date of the annexation.
• An analysis of the fiscal impact on the annexing city and the property
proposed for annexation,and adjacent units of local government,
including assessed valuation and the present bonded indebtedness and the
mill rates of the county,school district,and town.
• Relationship and impact of the proposed action on affected and adjacent
school districts and communities.
• Adequacy of town government to deliver services to the subject area.
• Analysis of whether necessary governmental services can best be
provided through the proposed action or another form of boundary
adjustment.
• If only part of a town is annexed,the ability of the remainder of the town
to continue,or the feasibility of it being incorporated separately or
annexed to another city.
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CHAPTER 2
f. Annexation of an entire township
Minn.Stat.§414.031,subd. Whenever annexation by Municipal Boundary Adjustment's order involves
aa. the annexation of an entire township,the order must include a provision for
the election of new city officers.The expanded city would have a home rule
charter or statutory form of government depending on what form is currently
used in the annexing city.However,any ward system for the election of
councilmembers would be inoperable.The ordinances of both the annexing
city and the town would continue within the former boundaries until repealed
by the governing body of the city.
g. Other powers of Municipal Boundary Adjustments
Minn.Stat.§§414.031,subd. Municipal Boundary Adjustments may also order the election of new city
4a;414.09. officers as part of any other annexation order under this procedure,if the
director or the director's designee determines that such an election would be
equitable.Municipal Boundary Adjustments may provide for election of
councilmembers by wards,not less than three or more than seven in number,
if it finds that area representation is necessary for proper representation due to
an uneven population density or the existence of agricultural lands in the path
of suburban development.After four years from the effective date of an
n annexation,the council may adopt a resolution by a four-fifths vote to abolish
the ward system and provide for election of councilmembers at large.
Minn.Stat.§414.031,subd. Until the effective date of the annexation order,the town board and other
4a. officers of the town continue to exercise their powers and duties under the
town laws in the portion of the city that was formerly the town.The council
and other officers of the annexing city continue to exercise their powers and
duties in the portion of the expanded city that was formerly the city. When
the order takes effect,the town board and the council of the annexing city
have no jurisdiction within the city.Then,the new city council and other new
officers have jurisdiction,including jurisdiction over improvements and the
levying of special assessments.The new city council can continue or
discontinue any board that may have previously existed in the town or former
city.
C. Apportionment of assets, liabilities, and
population
Minn.Stat.§414.067. Whenever Municipal Boundary Adjustments divides an existing
governmental unit,it must apportion property and obligations.It should
consider the value of land in the existing town,the indebtedness,the taxes
due and delinquent,other revenue accrued but not received,and the ability of
the rest of the town to function effectively.
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CHAPTER 2
The order cannot relieve any property from any tax liability for payment of
bonded indebtedness,but the taxable property in the new city may become
primarily liable.When a city annexes an entire town or consolidates with an
existing city,all money,claims or properties,including real estate and any
taxes that have been levied(whether collected or uncollected),become the
annexing city's property.The city has full authority to use and dispose of
such property.
Any bonded indebtedness of the town annexed to an existing city is borne
only by the property within the boundaries of the former town.However,the
governing bodies may,by resolution,agree the new city will assume the
former town's bonded indebtedness that was outstanding at the time of the
annexation.
2006 Minn.Laws ch.270§11 Unless otherwise agreed to by the annexing municipality and the affected
amending Minn.Stat.§ town,when an order or other approval annexes part of a town to a city,the
414.036
order or other approval must provide a reimbursement from the municipality
to the town for all or part of the taxable property annexed as part of the order.
The reimbursement shall be completed in substantially equal payments over
not less than two or more than eight years from the time of annexation.The
city must reimburse the township for all special assessments assigned by the
township to the annexed property,and any portion of debt incurred by the
n town prior to the annexation and attributable to the property to be annexed
but for which no special assessments are outstanding,in substantially equal
payments over a period of not less than two or more than eights years.
Minn.Stat.§4A.02(bX10). Boundary changes approved by Municipal Boundary Adjustments must be
reported to the state demographer.The affected cities and towns must make a
population estimate as a result of the change in boundaries and submit it to
the state demographer,who must then certify a population and household
estimate of the affected area.
D. Appeals
Minn.Stat.§414.07. Any person aggrieved by an annexation order may appeal it in district court if
the person contends Municipal Boundary Adjustments lacked jurisdiction or
exceeded its jurisdiction;the order was arbitrary,fraudulent,capricious or
oppressive;or,the order was based on an erroneous theory of law.
Rockford Township v.City of The appeal must be filed within 30 days of the director's annexation order in
x°` °'d,6 08 tv.w.2d 905 the district court of the county where the majority of the area is located.An
(Minn.Ct.App.2000).
appeal does not stop the order.
Minn.Stat.§572.19. Minnesota's Uniform Arbitration Act also provides a limited basis for
appeals that may apply to annexations proceedings involving arbitration.
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CHAPTER 2
City of Waite Park v.Minn. In addition,the Minnesota Court of Appeals has held that a city that has been
Office afAdmia.Hearings,No. denied its statutory right to a summary annexation under the orderly-
A05-1888(Minn.Ct.App.
July 18,2006)(unpublished annexation statute(Minn. Stat. §414.0325)can seek a writ of mandamus to
decision). compel Municipal Boundary Adjustment to perform its statutory duty of
ordering the annexation without conducting further hearings.
VIII. Change of name
Minn.Stat.§§413.02;410.07- A statutory or home rule charter city may change its official name after
410.12. successful completion of the following four-step procedure. (A home rule
charter city may also change its name by charter amendment.)
• A number of voters equal to 20 percent of the number voting in the last
city election must petition for the name change.The request must be filed
with the council.
• The proposal must go to the voters for approval at either a general or
special election.A majority of those voting on the question must favor
the change.
• • The election authorizes,but does not require,the council to change the
name of the city.The council must adopt an ordinance approving the
change.
• The city must file certified copies of the ordinance with the county
auditor,the commissioner of finance,and the secretary of state.It is also
advisable to file a copy with the register of deeds.The name change
becomes effective with the completion of these filings.
Minn.Stat.§413.02,subd.3. The name of any statutory city may also be changed to the same name as its
post office designation by ordinance.The change is effective upon the filing
of a certified copy of the ordinance with the county auditor,the state auditor,
and the secretary of state.
A change in name does not affect any liability,obligation,power,duty,law
or ordinance of the city except the city must thereafter use the new name.
Minn.Stat.§413.02,subd.5. Any statutory city that was a village or a borough on Dec.31, 1973,may
continue to use the term"village"or"borough"for any purpose including,
but not limited to,internal administration,public communications,and
published and posted notices.However,in all proceedings governed by
statute or rule or regulation of a state agency,and in all legal proceedings the
city is a party to,it must use the term"city."
Should a city wish to continue to use the designation"village"on a
permanent basis,it might be wise to consider an official name change.In
such a case,the city would be known officially as the"City of
Village"or the"City of the Village of ."
�'" 2-30 This chapter last revised 9/27/2006 HANDBOOK FOR MINNESOTA CITIES
PART I
FORM AND STRUCTURE OF THE MINNESOTA CITY
CHAPTER 2: CHANGE OF BOUNDARIES, STATUS AND NAME
Minnesota Municipal Board and its successor—the Office of Strategic and Long-Range Planning
(Municipal Boundary Adjustments) 3
II. Incorporation 4
A. Petition or resolution 4
B. Basic procedure 5
C. Items that must be considered 5
D. Organizing the city government 7
III. Consolidation 7
A. Consolidation commission 8
B. The role of Municipal Boundary Adjustments 9
C. Consolidation by petition 10
D. Council resolution 11
E. Director's own motion 11
F. Referendum 11
G. Effective date for consolidation 11
H. Alternative procedure for consolidation 11
IV. Dissolution 12
V. Separation from town 13
VI. Detachment 14
A. Concurrent detachment and annexation 15
VII. Annexation 15
A. Statutory requirements for annexation 18
B. Annexation procedures 19
1. Annexation by ordinance 19
2. Orderly annexation 21
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This chapter last revised 9/27/2006
3. Petition,hearing,and order by Municipal Boundary Adjustments 24
a. Initiating the proceeding 24
b. The petition 24
c. Mediation and arbitration 25
d. Joint informational meeting 25
e. The powers and duties of Municipal Boundary Adjustments 25
f. Annexation of an entire township 28
g. Other powers of Municipal Boundary Adjustments 28
C. Apportionment of assets,liabilities,and population 28
D. Appeals 29
VIII. Change of name 30
n
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CHAPTER 3
PART I
FORM AND STRUCTURE OF THE MINNESOTA CITY
The statutory city 3
I. The statutory city code 3
II. Forms of statutory city government 4
A. The Standard Plan 5
1. Distinct features of the Standard Plan 5
B. Plan A 6
1. Distinct features of Plan A 6
C. Optional Plan B 7
1. City manager 7
2. Clerk,treasurer 8
3. Boards and commissions 8
4. Manager's duties 8
5. City budget 9
6. Payment of claims and emergency borrowing 10
7. Distinct features of Plan B 10
D. Changing the form of government 11
1. Changing to an Optional Plan 11
2. Changing to Plan A 13
3. Changing to Plan B 14
4. Changes to all optional plans 14
5. Changing from one plan to another 15
E. Abandoning Plan A or Plan B 15
III. General powers of a statutory city 16
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CHAPTER 3
Chapter 3
The statutory city
Minnesota has two basic types of cities: statutory cities,those operating under
the statutory city code;and home rule charter cities,those operating under a
local charter. This chapter will examine the organization and general powers
of the statutory city,under the following topics:
I. The statutory city code
II. Forms of statutory city government
III. General powers of a statutory city
NOTE:BECAUSE THIS CHAPTER APPLIES ONLY TO STATUTORY CITIES,THE
TERM"CITY"WILL MEAN STATUTORY CITY UNLESS OTHERWISE INDICATED.
I. The statutory city code
Minn.Stat.ch.412. Communities incorporated as statutory cities constitute the vast majority of
Minnesota cities.They all operate under the statutory city code(city code)
found at Chapter 412 of the Minnesota Statutes and a number of other statutes
that cover special cases or apply to home rule charter cities as well as to
statutory cities.Although all statutory cities have the same basic powers,the
city code allows them to select one of several forms of organization.The
Minnesota Legislature may,at its discretion,change any part of the city code.
Mum.Stat.§41 2.891. The great benefit of the city code is that it uniformly applies the laws
regarding city government to all statutory cities in the state.There is, however,
one important exception:the city code covers Iron Range statutory cities
operating under cash-basis laws only to the extent that it is not in conflict with
any of the cash-basis laws.In all other respects,the city code applies to all
statutory cities of the state.Therefore,the city code is the primary source of
authority for the actions taken by statutory cities through their councils.
Besides the powers the city code grants,all cities—including home rule
charter cities—receive additional authority from other state statutes.For
example,powers for land-use planning,creating police civil-service
commissions,and municipal-forest maintenance are detailed in laws outside
the city code.
Statutory cities lack the power to change the city code.They are dependent
upon the Legislature for all changes.
HANDBOOK FOR MINNESOTA CITIES 9/21/2006 3-3
II. Forms of statutory city
government
Minn.Stat.§412.541. The Legislature has provided three forms of organization for statutory cities—
the Standard Plan,Optional Plan A, and Optional Plan B.These plans provide
voters with a wide range of choices in determining the structure of their city.
The Standard Plan has the common weak mayor-council form of government
consisting of an elected mayor,an elected clerk(or a combined
clerk-treasurer)who serves as a voting member of the council,and three or
five council members.The treasurer is also an elected official,but is not a
member of the council.
Plan A is a modification of the Standard Plan.It retains the weak
mayor-council characteristics,but provides for an appointed clerk, an
appointed treasurer(or a combined clerk-treasurer), and a mayor and four
council members.
Optional Plan B is the council-manager plan.
Minn.Stat.§412.541,subd.2. While the Standard Plan and Plan A are available to all cities,only cities with
a population over 1,000 may adopt Optional Plan B. The law does not restrict
any Optional Plan to any particular geographic location in the state.All new
cities automatically organize under Plan A unless they complete the required
legal steps to put one of the other plans into effect.Voters must approve a
change of plan.
Minn.Stat.§412.02,subd.6. The council of any statutory city may,by ordinance,adopted at least 60 days
before the next regular city election,submit to the voters of the city the
question of whether to increase the size of the city council to seven or reduce
the size to five members. The ordinance must include a schedule of elections
and terms to accomplish the change.Citizens vote on the proposal at the next
general city election.If a majority of those voting on the question approve,the
ordinance goes into effect under the schedule specified in it.
Minn.Stat.§§414.02,subd.3; There is no provision in statutory city law for the adoption of a system of
414.031,subd.4a;414.041, wards.Only home rule charter cities can have wards,except that in certain
subd.5.
incorporation,annexation,and consolidation proceedings,the Office of
Strategic and Long—Range Planning(Municipal Boundary Adjustments)may
include the establishment of a ward system in its order.Also, a few statutory
cities that were originally incorporated by legislative act,also have ward
systems.
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CHAPTER 3
A. The Standard Plan
Minn.Stat.§412.572. In 1967,the Legislature required every city operating under the Standard Plan
to assume the Plan A form by Jan. 1, 1970,unless the voters rejected it
between May 4, 1967,and Jan. 1, 1970.In Minnesota 117 out of the 854 cities
remain on the standard plan,thus the term is somewhat dated and misleading.
The Standard Plan of city government was the form used by the majority of
smaller Minnesota cities prior to 1970.
As in all plans,the Standard Plan has a council of five members. It is different
from other plans because an elected clerk fills one of the council seats.Voters
also elect a treasurer if the city has not combined the positions of clerk and
treasurer.The treasurer,however,is not a member of the council.By
ordinance and a vote of the electorate,the city may increase the council to
seven members.
A.G.Op.471-H(Mar.29, As council members,the mayor and clerk have the same duties and powers as
1957. the other council members.In addition,they have their own special duties.The
council possesses all legislative and administrative powers;it cannot delegate
the power to enact ordinances or to prescribe rules and regulations.All
administrative personnel are appointed by and directly accountable to the
council.For example,the council is responsible for the direction of the police
chief,the liquor-store manager,and the street superintendent. The same is true
with regard to appointment of members to independent and advisory boards
and commissions.
See Handbook,Chapter 6 for The council can delegate certain functions to appointed administrative boards.
more details on administrative For example,the statutes authorize the establishment of a utilities commission,
boards.
a civil-service commission,or a park board(if the city has more than 1,000
population)with direct responsibility for their specific programs. The council
may also establish advisory boards,such as a planning commission,to conduct
studies and make recommendations.
1. Distinct features of the Standard Plan
The council has five or seven members consisting of a mayor,a clerk,and
three or five council members.
See Handbook,Chapters 6 and Voters elect a clerk and a treasurer.The city may combine these offices into
x,which discuss the duties of one elective office of clerk-treasurer.
these offices.
The council has all administrative authority and responsibility.
The council has the power to appoint independent or advisory boards and
commissions,and to delegate certain functions to these bodies.
HANDBOOK FOR MINNESOTA CITIES 9/21/2006 3-5
B. Plan A
Minn.Stat.§§412.572; Plan A constitutes a simple change in organization from the Standard Plan. In
412.581;412.591. Minnesota,614 cities presently operate under the Plan A form of government.
One of the distinctive features of this plan is that it removes the clerk from the
Minn.Stat.§412.541,suhd.t. council and replaces that position with a fourth(or sixth)elected council
member.Another feature is that the council appoints the clerk and treasurer for
Minn.Stat.§412.572. indefinite terms of office.The duties of these two appointed officers are the
same under Plan A as they are under the Standard Plan of government except
that the clerk is not a member of the council and cannot vote at council
meetings.
This plan allows cities to hire trained and experienced people who can perform
the complex duties of the clerk and treasurer.Because the council appoints
people to these positions,it has more control over how these employees
perform their functions than it does in the Standard Plan where voters elect
these employees.
Minn.Stat.§415.16. To help ensure the selection of qualified people for these positions,state law
allows the council to appoint people who are not residents of the city and
prohibits the council from requiring residence as a condition of employment.
In the selection of a clerk, for example,many cities have gone outside the city
to hire a person with training and experience in city management.
1. Distinct features of Plan A
A five or seven-member council,consisting of a mayor and four or six council
members,runs the government.
See Handbook,Chapter 8 for a The council appoints a clerk and a treasurer(or a combined clerk-treasurer)for
more detailed discussion of the indefinite terms.The council may remove these employees at any time in
duties of these offices.
accordance with state law and any personnel policy,contract,or ordinance in
effect for that city.
The council may appoint independent boards and commissions,such as a
utilities commission,and advisory bodies,such as a planning commission.
The council appoints all personnel,including the police chief,attorney,fire
chief,and liquor-store manager.
The council has all the administrative and legislative authority and
responsibility that councils in Standard Plan cities have.
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CHAPTER 3
C. Optional Plan B
Minn.Stat.§§412.601- Optional Plan B embodies the council-manager plan of government.At
412.751. present,only 16 statutory cities operate under this plan.At least 30 cities in
See research memo 1998 Minnesota have adopted the council-manager form under their home rule
Charter and election data for charters. Some of these cities previously operated as Plan B statutory cities.
Minnesota cities(390e.1).
Under Plan B,the elected city council consists of a mayor and four or six
Minn.Stat.§412.611. council members.All policy and legislative decisions are the responsibility of
the council.The council delegates the administrative duties to a city manager.
The manager is accountable to the council for the effective administration of
city business in accordance with council decisions.
1. City manager
Minn.Stat.§412.641. Under Plan B,the council chooses a manager on the basis of training,
experience,and administrative qualifications.The manager does not need to
be a resident of the city.The council must appoint the first manager as soon as
practicable after adopting this plan.The term of office is indefinite so the
council may remove the manager at any time.If the manager has been in
office for one year or more,however,he or she may demand that the council
make written charges and hold a public hearing prior to discharge.The law
does not require specific grounds for dismissal,either before or after the
hearing.Pending the hearing,the council may suspend the manager and
designate some properly qualified person to perform those duties.
Minn.Stat.§412.651. The manager has responsibility for the administration of all city business,and
is answerable to the council.The law prohibits the council as a whole or any
of the individual council members from interfering with the manager's
prerogative to hire employees.It also prohibits any individual council member
from attempting to deal with or control any administrative person who is
subordinate to the manager.Instead,the council must exert all of its controls
through the manager. This provision,however,does not prohibit individual
council members from obtaining information pertaining to city business from
employees other than the manager.
�"`'■ HANDBOOK FOR MINNESOTA CITIES 9/21/2006 3-7
2. Clerk, treasurer
Minn.Stat.§412.651,subd.3. Plan B provides for a manager,an appointed clerk,an appointed treasurer,and
Minn.Stat.§412.681. any other officers subordinate to the manager as the council may create by
ordinance.The manager also appoints the attorney,but the council must
A.U.Op.469-a-2(Sept.20, confirm the appointment.In the performance of their duties,the clerk and
1951).
treasurer are subject to the direction of the manager,but their functions are the
same as those of their counterparts in other cities.The only exception to this
rule is that the manager,not the clerk, signs written instruments,such as
contracts,on behalf of the city.The council may also give additional duties to
the clerk and treasurer.Or the council can abolish or combine positions,
including these offices,as it deems fit.It may also direct the manager to
perform the duties of any of the various offices except that of treasurer.
3. Boards and commissions
Minn.Stat.§412.621. Plan B abolishes all independent administrative boards and commissions
except for the civil-service commission,if there is one.The council itself,
then,must assume the functions of such boards as the library board,park
board,and public-utility commission.The council may continue or create
commissions for joint operations with other units of government.For example,
the council could create a park board that would administer parks under a
cooperative program with two or more cities acting together.The council also
could establish advisory boards or commissions to study any municipal
function or to investigate any subject of interest to the city.As a result,the city
may continue to have a planning commission after the adoption of Plan B. If a
city abandons Plan B and adopts the Standard Plan or Plan A,the city may
again establish independent boards and commissions as authorized by law.
4. Manager's duties
Minn.Stat.§412.651. Under Plan B,the manager has the following duties:
• Enforcing city ordinances and resolutions.
• Appointing and removing,on the basis of merit and fitness,the clerk and
all department heads and subordinate employees. Where there are civil-
service provisions applicable to the city,they are binding upon the
manager.
• Exercising administrative control over all city departments and divisions
created by law or by the council.
• Attending all meetings of the council and participating in the discussion,
but not voting.
• Recommending to the council measures necessary for the welfare of
citizens and the efficient administration of the city.
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• Making reports on the financial condition and needs of the city.
• Preparing,if the council directs,an administrative code for council
adoption.
• Assuming all duties required under state laws,city ordinances,and council
resolutions.
Minn.Stat.§412.691. • Acting as the chief purchasing agent for the city.As purchasing agents,
managers are responsible for all purchasing.Managers may,in
conformance with the budget,but without prior council approval,make
purchases and let contracts when the amount does not exceed$20,000,
unless the city council provides for a lower limit.City councils must audit
claims resulting from such transactions.Larger purchases and contracts
need council approval.
5. City budget
Minn.Stat.§§412.701- One of the most important provisions of Plan B is that the manager must
412.731' prepare estimates for an annual budget and submit them to the council.The
manager must budget on a"funds"basis and must include all city funds except
for the bond,utilities,and special-assessment funds.Inclusion of these is
optional,but budgeting and appropriations procedures should include all the
moneys the city receives and spends.The manager may use either a cash or an
accrual basis for preparing the budget.
A cash budget is one that includes only those items for which the city actually
receives money(cash)in the case of receipts,or pays out in the case of
disbursements or expenditures,during the 12-month period covered by the
budget.
An accrual basis budget is one that includes only those funds that become due
and payable to the city during the budget year,whether or not the city actually
receives payment,and those expenses that the city incurred during the year no
matter when the city pays them.
The main purpose of a budget is to collect data on the anticipated revenues and
expenses of the city for the coming year,and to allow for comprehensive fiscal
planning.The budget should include anticipated revenues and expenditures for
the next year.Once the council has approved the budget,the manager may not
change it without council consent.
The laws establishing the Plan B form of government detail the procedures for
preparing and adopting a budget.These procedures are flexible and could
easily apply to all cities regardless of their form of government.
HANDBOOK FOR MINNESOTA CITIES 9/21/2006 3-9
6. Payment of claims and emergency borrowing
Two other special features of Plan B relate to the payment of claims against
the city and to emergency-borrowing procedures.
Minn.Stat.§412.741. Plan B cities follow the usual city procedure for the payment of claims, i.e.,
See Handbook,Chapter 25 for filing of claim,audit,approval,and issuance of orders.In Plan B cities,
payment of claims however,the manager rather than the clerk must sign the order,and there is no
authorization for marking an order"not paid for want of funds."Every council
resolution or motion authorizing a disbursement must specify the purpose of
the disbursement and the fund the city will use to pay it.The manager must
make a notation on each contract showing which fund the city will use to pay
it.
Although the law prohibits the council from marking an order"not paid for
Minn.Stat.§412.751. want of funds,"Plan B city councils may authorize the treasurer to sell
emergency-debt certificates.The council may authorize this in any year, if the
receipts,through an unforeseen cause,become insufficient to cover the
ordinary expenses of the city,or if any disaster or other public emergency
causes extraordinary expenditures.
Emergency-debt certificates may not run for a period longer than two years
and may not bear an interest rate in excess of 7 percent per annum. The city
must levy a tax sufficient to redeem all such certificates at maturity.The levy
would be part of the budget for the following year.Issuing emergency-debt
certificates is possible only if all members of the council approve an ordinance
authorizing the issue.Thus,any council member can,in effect, veto the
issuance of emergency debt certificates.
7. Distinct features of Plan B
Plan B cities have the following distinct features:
• A council composed of an elected mayor and four(or six)elected council
members runs the government. They exercise legislative authority and
appoint a city manager.
• A city manager,appointed by and responsible to the council,must
effectively administer the city business in accordance with the decisions of
the council.
• The manager appoints a clerk and treasurer for indefinite terms.
• The manager appoints an attorney subject to the approval of the council.
• All independent administrative boards and commissions,except for a
civil-service board(if there is one), expire and the council assumes their
functions.
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CHAPTER 3
• Advisory boards and commissions may continue to operate.
• The manager has full responsibility,subject to existing civil-service rules
and regulations,to appoint all city administrative officials and their
subordinates.
• The manager must prepare estimates for an annual budget and submit
them to the council.
• No authorization exists for marking an order"not paid for want of funds."
• A council may,in specified circumstances with a unanimous vote,
authorize the treasurer to issue emergency-debt certificates.
D. Changing the form of government
Changing the form of government in a statutory city requires two procedures.
The first procedure involves the necessary legal steps,which include the
initiation of the proposal,its submission to the voters,and the certification of
the results to the county auditor and the secretary of state.
The second procedure is the gradual alteration of the government structure to
conform to the requirements of the new plan.This step takes time because the
change cannot cut short the term of office for an elected official or change the
time of election for any elected person.All cities use the Plan A form of
organization,unless they have voted to remain on the Standard Plan or to
adopt Plan B.If a city abandons an Optional Plan,its government reverts to
the Standard Plan unless the abandonment procedure specifies the adoption of
an Optional Plan previously in effect.
1. Changing to an Optional Plan
Minn.Stat.§1 412.541- Cities must take several steps to change to an Optional Plan.
412.572;412.601.
a. Initiating the proposal
Minn.Stat.§412.551. A city may initiate the proposal in one of two ways.The council may,upon its
own motion,submit an Optional Plan for voter consideration.Alternatively,
the voters may require the council to submit the question at an election by
presenting a written petition with signatures from a number of voters equal to
at least 15 percent of the total number of people voting in the last city election.
Once the council has received a petition requesting a referendum on one of the
optional forms of government,it is doubtful that the council could submit a
different plan at the same election or could call an earlier election for a vote on
a different plan. Such actions would circumvent the provision making the
petition mandatory.
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b. Submitting the plan to the voters
See Handbook,Chapter 5 for Ordinarily,the council has discretion to determine whether the Optional Plan
special elections. should go to the voters at either a regular election or a special election.If the
council decides on a special election,it must also set the date. The procedures
for calling a special election on the adoption of an Optional Plan are the same
as for any other special election.
Minn.Stat.§205.10,subd.1. A petition requesting the submission of the Optional Plan to the voters may
also request a special election on the question.A special-election petition,
however,requires a number of signers equal to 20 percent of the number
voting at the last city election,rather than the 15 percent for the Optional Plan
petition.If petitioners present a special-election request that meets the 20-
percent requirement,the council must order a special election and set a date
for that election.If the council fails to comply within a reasonable time,a
A.G.op.472-0(Mar.20, court order could presumably force the city to act.The attorney general has
1961). determined the city must hold an election when voters submit the proper
petition.
If the council receives a petition asking for the submission of an Optional Plan
before a regular city election and there is enough time to allow for the
necessary 53-day notice to the county auditor,the council probably cannot
delay submitting the question until a later time without the consent of the
petitioners.
Minn.Stat.§412.551,subd.2. When submitting an Optional Plan question to the voters,the question on the
ballot must follow substantially one of the following:
For plan A:"Shall Optional Plan A,modifying the Standard Plan of city
government by providing for the appointment by the council of the clerk and
treasurer(or clerk-treasurer),be adopted for the government of the city?"
For plan B:"Shall Optional Plan B,providing for the council-manager form of
city government,be adopted for the government of the city?"
The question should be followed by the words:"yes"and"no"with
appropriate squares in which voters may indicate their choices.
Passage requires a majority vote on the question.Once an Optional Plan goes
Minn.Stat.§412.551,subd.4. into effect,the city may not change it for three years.If a majority of the votes
are negative,the Optional Plan proposal fails and the city continues to operate
under its existing form of government.In this case,voters may not petition the
Minn.Stat.§205.10. council to call a special election on the question of adopting an Optional Plan
within the following six months.This restriction does not apply to the council,
which may generally call a special election at any time.
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c. Certifying the plan's adoption
Minn.Stat§205.185,subd.3. When a majority of the voters approve an Optional Plan,the clerk must
promptly notify the county auditor and the secretary of state by filing a
certificate stating the date of the election,the question submitted,and the vote.
If the voters reject a proposed change in the form of government,the clerk
must certify the election results to the county auditor.
Minn.Stat.§414.02,subd.3. New cities are incorporated directly under Plan A, but may adopt an alternate
plan by following the procedures outlined above.
2. Changing to Plan A
See generally Minn.Stat.§ After the adoption of Plan A,the elected clerk and treasurer serve out the
412.571. balance of their respective terms.During this period,their relationship to the
council is the same as before, with the clerk continuing in the dual role of
A.G.op.470-1.(Oct.8,1951). council member and administrative officer.If a vacancy occurs in any of these
offices before the end of the incumbent's term,the council must fill the
A.G.Op.471-M(Apr.12, vacancy just as it would have done had the city not adopted the Optional Plan.
1956). A successor,during the unexpired term,serves in the same manner and with
the same duties as the predecessor. The successor to the clerk, for example,
would continue to act as a member of the council until the end of the term.
Plan A goes into effect upon the expiration of the term of the incumbent clerk.
When that term expires,the council appoints a new clerk who performs the
duties given by statute and by council action.The differences in the
relationship to the council are that the council appoints the clerk for an
indefinite term,the clerk is no longer a member of the council,and the council
may remove that person at any time as permitted under the city's personnel
policy,any relevant city contracts,and state law. When the treasurer's term
ends,the council should appoint someone to fill this position.
To replace the clerk on the council,voters elect an additional council member
at the election that precedes the end of the incumbent clerk's term. The new
council member serves a term of four years beginning on the first Monday in
January of the next year.This new member is like any other person serving as
a member of the council and receiving a council member's compensation.
When the voters adopt an Optional Plan at the same election at which they
A.G.Op.472-C(Sept.10, elect the clerk,the elected clerk becomes the fourth or sixth council member
1964). upon taking office in January,unless the council wishes to appoint that person
to the office of clerk. The council must then declare a vacancy in the position
of the council member and fill the vacancy as it normally would.When voters
elect the treasurer in the election at which they adopt an Optional Plan,the
A.G.Op.484e-4(Dec.17, election for treasurer is nullified.At the first council meeting in the following
1957). year,the council should fill the office of treasurer by appointment for an
indefinite term.
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3. Changing to Plan B
See generally Minn.Stat.§ When a city adopts Plan B,the status of the incumbent clerk and treasurer is
412s71' the same as in a city adopting Plan A.Plan B goes into effect as soon as the
voters adopt it,but it does not become fully operative until the council
appoints and qualifies the first city manager.The council must make this
appointment as soon as practicable after voters adopt the plan. When the
manager has taken office,the independent boards and commissions go out of
existence,except for an existing civil-service commission.
When changing from a Standard Plan to Plan B, the manager cannot remove
Minn.Stat.§§412.571,sand. the elected incumbent clerk and treasurer before the expiration of their
2;412.681. respective terms,but these positions become subordinate to the manager and
are subject to the manager's direction. The statutes,however,specify the
duties of the treasurer;therefore,the manager may not curtail the treasurer's
duties or assign another officer to perform those duties during the holdover
period.
If a vacancy in the office of the elective clerk or treasurer occurs before the
expiration of the incumbent's term,it is the council and not the manager who
appoints the successor.As in the case of Plan A cities,the appointment is only
for the unexpired term.When the terms of the clerk and treasurer expire,the
manager appoints the successors.The manager also has the power to remove
them.
4. Changes to all optional plans
The general statutory city law is applicable to all cities operating under the
Standard Plan,Plan A, and Plan B,except to the extent that it is inconsistent
with the statutory provisions relating to the plan under which the city is
operating.The same is true of all the ordinances passed by the city prior to the
adoption of the new plan.The old ordinances are still in effect until the
Micro.star§412.561 s„na.2. council repeals or amends them,unless they are inconsistent with the state law
governing the newly adopted Optional Plan.Thus,the ordinances for the
preservation of the peace would still be valid and effective,but ordinances
establishing certain council committees or prescribing duties for certain
officers might be inoperative.
The change to another plan does not change judicial proceedings that began
prior to the city's adoption of another plan,nor does it change rights or
liabilities the city acquired before such an adoption.The council and city
officers must make organizational,accounting,and other adjustments in
accordance with the scheme of their new form of government.
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5. Changing from one plan to another
Minn.Stat.§412.551,subd. 1. Any time after three years following the adoption of a plan,the voters or the
council may request a change to another plan.The three steps of initiation,
submission to voters,and certification are the same as for the original adoption
proceedings.
When a city changes from one Optional Plan to another,incumbent members
of the council continue to serve until the expiration of their respective terms,
and the change does not affect the election schedule.The new Optional Plan
goes into effect as soon as is practicable after approval.
When the council receives a petition requesting a transfer to another Optional
Plan,or when the council itself initiates such a proposal,only one question,
that of adopting the suggested Optional Plan,goes on the ballot.An
A.G.on.484-E-4(Nov.20, affirmative vote means the adoption of the suggested Optional Plan.A
1957).
negative vote,however,means only the rejection of the suggested option.In
such a case,the city continues to operate under the Optional Plan that was in
effect at the time of the election;it does not revert to the Standard Plan.
E. Abandoning Plan A or Plan B
Minn.Stat.§412.551,subd.4.
The council may submit a question on the abandonment of a plan to the voters
at any time after three years have elapsed since the plan's adoption.A vote in
favor of abandoning an Optional Plan means the city will revert to the
Standard Plan.Either the voters through petition,or the council through its
own motion,may request an abandonment.The question goes to the voters in
the same manner as the original adoption question did.The only change in the
procedure is the substitution of the word"abandoned"in the proposition
statement on the ballot.If the voters favor abandonment,the incumbent
council members continue in office until their terms expire.
In the election in the year when the terms of two council members expire,
voters will elect only one council member. They will also elect a clerk.The
clerk does not serve as a member of the council until the first council meeting
in the year following the election.
The appointed treasurer would continue to hold office until voters elect a
successor and he or she officially begins the term of office.
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1
III. General powers of a statutory
city
Minn.Stat.cll.412,especially The basic listing of powers of statutory cities,whether they are Standard Plan,
Minn.Stat.§§412.21 l; Plan A, or Plan B cities,is in the law called the statutory code(city code).
' ' ry ci Ty ( �' )
That list contains most,but not all,of the powers councils can'exercise.For
See also the list of lawful example,the city code authorizes cities to do the following:
expenditures in Handbook,
Chapter 25.
• Create departments and advisory boards,and appoint officers,employees
and agents for the city to conduct city affairs.
• Prescribe the duties,compensation,and employment conditions for its
employees.
• Make the annual tax levy,and exercise full authority over the financial
affairs of the city.
• Own and operate any waterworks,gas,light,power or heat plant.
• Purchase gas,electricity,water or heat for wholesale prices and resell it to
local consumers.
• Provide parks,parkways,recreational facilities,and,in cities of more than
1,000 population,a park board for the maintenance of the park.
• Designate a legal newspaper.
• Prosecute people who violate ordinances.
Scattered throughout the statutes are many powers that statutory cities can
exercise.Among these are the following:
Minn.Stat.§§462.351- • Plan for the future development of the city and take steps to implement
462.365. that plan.
Minn.Stat.§469.001-.047. • Carry out a program of housing and redevelopment in the city.
Minn.Stat.ch.429. • Levy special assessments for public improvements(see Part VI,Finance,
budgeting and debt).
Minn.Stat.ch.475. • Borrow money.
Minn.Stat.§462.358;Minn. • Control the subdivision of land.
Stat.ch.505.
Minn.Stat.§459.14. • Provide off-street parking facilities.
Minn.Stat.§459.06. • Acquire and maintain a municipal forest.
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Minn.Scat.§416.01. • Construct and maintain war memorial buildings.
Minn.Stat.§134.07. • Operate libraries.
Minn.Stat.§360.032. • Construct and operate municipal airports.
See Handbook Table of Cities have many powers in addition to these.To determine whether a
Contents. statutory city has a certain power,begin by checking the table of contents of
this Handbook, use the search engine connected to the online version of this
See Handbook,Chapter 4 for Handbook,or contact the League.City officials in statutory cities should refer
home rule charter city powers. to the statutes when they have questions concerning city authority.Both state
laws and the city charter govern home rule charter cities.
A common problem that arises in a discussion of city powers is the
interpretation of how such powers apply in actual practice. Will the courts
allow cities to exercise only those powers that the law strictly spells out,or
will they allow a city to exercise any functions or powers reasonably related to
a statutory grant of authority?Traditionally,the courts solved this problem by
referring to a rule that Judge John F.Dillon put forth in 1872.Dillon's rule
held that a strict or literal interpretation of the law should be used in defining
municipal powers.
City of Duluth v.Cerveny,218 Minnesota courts,however,have deviated markedly from Dillon's rule.They
Minn.511,16 N.W.779 have tended toward more liberal interpretations of statutory or charter grants
(Minn.1944).See also Tousley
v.Leach, 180 Minn.293,230 of authority to cities.In commenting upon the interpretation of city authority
N.W.788(Minn.1930); "to provide for the general welfare,"the Minnesota Supreme Court has stated,
Sverkerson v.City of "The council's estimate of the general welfare should be followed unless it is
Minneapolis,204 Minn.388,
283 N.W.555(Minn.1939); plainly erroneous."The important point is that cities can generally assume that
City of St.Paul v.Fielding& they can exercise any powers the statutes expressly grant to them or any
Shepley,, 155 Minn.471,194 powers that directly relate to the statutory grant and are necessary for its
N.W.18(Minn.1923). fulfillment.
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PART I
FORM AND STRUCTURE OF THE MINNESOTA CITY
CHAPTER 4: THE HOME RULE CHARTER CITY
Distinction between home rule cities and statutory cities 3
II. The home rule charter 4
A. Advantages of a home rule charter 5
B. Disadvantages of a home rule charter 6
C. Essentials of a good home rule charter 6
D. Adopting and amending a home rule charter 7
E. The charter commission 7
1. Appointment of commission members 8
2. Vacancies 9
3. Functions of a charter commission 9
4. Drafting the charter 10
5. The charter election 11
a. The charter campaign 11
b. Form of ballot,required majority,certification 12
c. Filing copies of the charter 12
F. Amendments to the charter 13
1. The vote on an amendment 14
2. New or revised charter 15
G. Abandoning a home rule charter 15
III. General powers of a home rule charter city 16
A. Broad grant of powers 16
1. Taxes 17
2. Finance 17
3. Utility regulation 17
4. Municipal utilities 18
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5. Ordinance procedure 18
6. Personnel 18
7. Contracts 19
8. Tort liability 19
9. Special assessments 19
10. Real estate 19
11. Elections 20
12. Accounting 20
13. Regulation of activities 20
14. Removal of council members by the council 21
B. Delegation of powers 21
IV. Conflict between state laws and home rule charters 21
A. General rule 21
B. Identifying a conflict 22
C. Resolving conflicts 22
V. How charter cities should use the LMC Handbook 23
rte,
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CHAPTER 4
Chapter 4
The home rule charter city
Minnesota's two basic types of cities are home rule charter cities(operating under
a local charter)and statutory cities(operating under the statutory city code).
This chapter will examine the organization and general powers of the home rule
charter city.The following topics will be discussed:
I. Distinction between home rule cities and statutory cities
II. The home rule charter
III. General powers of a home rule charter city
IV. Conflict between state laws and home rule charters
V. How charter cities should use the Handbook
I. Distinction between home rule
cities and statutory cities
The major difference between home rule cities and statutory cities in Minnesota is
the kind of enabling legislation from which they gain their authority.Statutory
cities derive their powers from Chapter 412 of Minnesota Statutes.Home rule
cities obtain their powers from a home rule charter.The distinction between home
rule cities and statutory cities is one of organization and powers,and is not based
on differences in population,size,location or any other physical feature.
Minn.Const.art.XII,§4. The Minnesota Constitution permits the Legislature to establish home rule charter
Minn.Stat.§§410.04- cities,counties,and other units of local government.State law enacted under this
410.33. constitutional authority authorizes cities to adopt home rule charters.
Home rule charter cities can exercise any powers in their locally adopted charters
as long as they do not conflict with state laws.Conversely,charter provisions can
specifically restrict the powers of a city.Consequently,voters in home rule cities
have more control over their city's powers.
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CHAPTER 4
Minn.Stat.§410.33. State law provides that if a charter is silent on a matter that is addressed for
Minn.Stat.Ch.412. statutory cities by Chapter 412 or other general law,and general law does not
prohibit the city charter from addressing the matter or expressly provide that a city
charter prevails over general law on the matter,then the home rule charter city can
apply the general law on the matter.
Charters,therefore, are of interest to statutory cities when they encounter special
problems that cannot be solved under general city laws.If a statutory city finds
itself in such a situation,it can either request the Legislature to change the city
code or adopt a special law applying to that specific city,or it can become a home
rule city with a home rule charter that specifies its powers. The voters must
approve the charter in a local election.
II. The home rule charter
Home rule charters are, in effect, local constitutions.State laws give cities a wide
range of discretion in the contents of a charter when one is adopted.The charter
may provide for any form of municipal government,as long as it is consistent
with state laws that apply uniformly to all cities in Minnesota.
Minn.Stat.§410.16. The four forms of government home rule charter cities in Minnesota have used
See Handbook Chapter 1. are:weak mayor-council,strong mayor-council,council-manager,and
See also League research commission.
memo Charter and
Election Data for
Minnesota Cities(390c.1).
The weak mayor-council plan is the most predominant. This form is used by 73 of
the 107 home rule charter cities.Under this plan,administrative and legislative
authority is the council's ultimate responsibility.The powers of the mayor are
generally no greater than those of any other member of the council.No individual
councilmember holds any specific administrative powers.
The strong mayor-council plan is not very common in Minnesota.This plan is
used by only four home rule charter cities.Under this plan,the mayor is
responsible to the council for the operation of all administrative agencies.Under
the usual strong mayor-council plan,the mayor can generally appoint and remove
subordinates,is not a councilmember but can veto council legislation,and
prepares and administers a budget that is subject to council approval.The chief
function of the council is to legislate and set policies.A charter can alter any of
these features.
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Thirty of the home rule cities in Minnesota have a council-manager form of
government.Under this form,the council has policy-making and legislative
authority,but administration of the government is the responsibility of a manager
who answers directly to the council.Here again,the home rule charter can change
this plan.
The commission form of organization has never been very popular.Over the years,
only a few home rule cities have followed this form.Today,no home rule city in
Minnesota uses the commission form;no statutory city has ever used it.In a
commission city,each elected councilmember is responsible for a particular
administrative department. So,in addition to having duties as a legislative official,
the councilmember is also a department head.The charter can also alter this form.
Any city may adopt a home rule charter.Of the 853 cities in the state, 107 now
operate under a voter-approved home rule charter.
A. Advantages of a home rule charter
The home rule charter form of city government has advantages as well as
disadvantages.Briefly,the advantages of home rule include the following:
• Every home rule charter city may have the form of government and the range
of local powers and functions desired by city residents.Residents of the city
draft the charter locally.The electors of the city adopt it. Changes that are
needed in the local government can occur locally instead of waiting to propose
a new law when the Legislature is in session.
• The entire home rule process educates the voters of the city. Some voters work
on charter commissions.All voters must learn about the charter and
amendments since they usually may vote on proposed changes.
• A city charter may cover many functions and procedures,or it may be as
simple as the statutory city form of government. Subject to state law,a home
rule city,unlike a statutory city,has the power to make changes to fit its own
needs by amending its charter. If state law is silent on a subject,local citizens
may assume powers for their city by including those powers in their charter.
Likewise,citizens may include limitations that are more stringent than those in
the general state laws.For example,several home rule charters contain tax and
debt limitations.
• The cost of government under a city charter need not be greater or less than the
cost of the statutory city form of government.
• A charter may provide for initiative and referendum, recall,and election of
council members by wards.
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CHAPTER 4
B. Disadvantages of a home rule charter
Disadvantages of home rule charters may include the following:
• The experiences of other cities concerning the application of a charter or of the
statutory city law are of little direct help to the home rule charter city.For
example,the Supreme Court or the attorney general can give a ruling
concerning a statutory city that,in most instances,will be equally applicable to
all other statutory cities in the state.Rulings affecting a home rule charter
usually concern only those cities that have very similar charter provisions.
See League research memo • Poor local drafting of the charter may be a problem. A city can minimize this
A Model Charter for potential difficulty by using model charters and relying on competent
Minnesota Cues(100a 5) professional advice.
• Anyone looking for the applicable law relating to a home rule charter city must
consult not only the statutes,but also the particular home rule charter.Only a
few collections of home rule charters exist. When seeking advice,an up-to-
date copy of a city charter is of utmost importance to ensure the advice is
accurate.
• The cost of preparing a home rule charter should be relatively minor. The
smaller the community,the larger the cost in proportion to population.
• The process for amending a charter is often time-consuming and cumbersome,
and the procedure for abandoning a charter may also be complicated.
• Charter amendments can be difficult to pass,especially when they are
controversial. Sometimes supporters or opponents of the proposal,in order to
bypass local opposition or to avoid dividing the community,go to the
Legislature for a solution.This action tends to defeat the original purpose of
adopting a charter.
C. Essentials of a good home rule charter
Because of the difficulty in amending and abandoning a home rule charter,the
charter should deal with fundamentals and give the city council the authority to
provide more detailed regulations through ordinance. Simplicity and brevity are
essential to a good charter.A charter should be brief enough to be read in a
reasonable amount of time.Provisions should be simple and clear in order to
avoid the possibility of more than one interpretation.
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Another essential element of a good charter is a comprehensive grant of power to
the city in general terms.Because cities are organized to promote the welfare of
the people,and people are in control of their affairs in a charter city through their
elected representatives and charter commission members,citizens should not be
afraid of entrusting city government with a wide range of powers.If citizens feel it
necessary,the charter can include initiative,referendum,and possibly recall
provisions as additional checks to prevent the abuse of power.
A good city charter provides for a workable,responsive organization of the city
government.It is simple so that all citizens and officials understand it. Its design
eliminates red tape and makes city government more effective by reducing the
number of working parts.It encourages and rewards expertise and efficiency in
the administration of the city.
A city should have only a few elective offices so voters will be able to
intelligently cast their ballots.The charter should never ask voters to elect non-
policy-making administrative officers. The city should have only a single body
elected by voters to legislate and determine policies for the city.This single
legislative body,the city council,should be composed of between five and nine
members.Council members should hold office for fairly long terms,up to four
years,in order to gain experience. State law mandates that most council terms be
four years,although a two-year mayoral term is allowed.
If possible,the city should centralize responsibility for administration in one
person:a chief administrative officer.All advisory boards should report directly to
the city council.
D. Adopting and amending a home rule
charter
See League research memo One of the principle virtues of the home rule charter is that it allows each city to
A Model Charter for tailor its charter to its own individual needs and desires.Cities are also
Minnesota Cities(100a.5).
encouraged to contact the League of Minnesota Cities for model and sample
charters,research memos,and advice that will assist in drafting,amending or
adopting a charter.
E. The charter commission
Minn.Stat.§410.05.subd. There are three ways to appoint a charter commission:
t.
• First,the district court, acting through the chief judge of the district in which
the city lies,may appoint a charter commission.The court will probably not do
this,however,until city residents or local clubs express some interest in the
matter.
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• Second,the court must make the appointment if it receives a petition signed by
voters who constitute at least 10 percent of the number of voters who voted at
the last city election. Smaller cities may find it easier to get the necessary
number of signatures.
• Third,the council of any city may,by resolution,request the appointment of a
charter commission.This action would require the district court to appoint
commission members.
1. Appointment of commission members
Minn.Stat.§410.05.subd. The district court usually makes charter commission appointments.The only
1 statutory qualification for members of charter commissions is that they be
qualified voters of the city.Commission members may hold some other public
office or employment except for a judicial office.City council members may
serve on charter commissions.However,the city's charter may provide that
members of the governing body cannot serve on the charter commission.Charter
commission members may serve unlimited successive terms.
Minn.Stat.§410.05,subd. Having determined to make the appointments or having been directed by petition
3. or council resolution to do so,the court listens to information from interested
citizens concerning appointments.A city council,the petitioners requesting
appointment of a commission or,in the case of new appointments to an existing
commission,the charter commission itself, may suggest names of eligible
nominees to the district court for consideration.
Minn.Stat.§410.05.subd. The court,acting through the chief judge,makes the charter commission
2. appointments by filing an order with the district court clerk.Appointments are for
staggered or overlapping terms.Of the initial appointments,half the members plus
one serve two-year terms,and the other half serve four-year terms.Thereafter, the
chief judge appoints new members every two years and fills vacancies as they
occur.
After the chief judge makes the appointments,the district court clerk notifies the
appointees,who have 30 days to file their written acceptances and oaths of office
with the district court clerk.
Minn.Stat.§410.05.subd. Charter commissions can have between seven and 15 members.The court
determines the size,unless a petition of the voters or resolution of the city council
specifies the size of the commission.Any city having a home rule charter may
amend the charter to fix the size of the commission to be between seven and 15
members.
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Minn.Stat.§410.05,subd. Once appointed,a charter commission becomes a permanent body.Its
2.
membership changes from time to time,but the commission goes on indefinitely.
Failure of the body to meet or to function does not end its existence.When a
vacancy occurs,the chief judge has 30 days to make an appointment. If the judge
fails to make an appointment,the governing body of the city may appoint the new
members,unless the chief judge indicates in writing to the governing body within
the 30-day period of his or her intention to make the appointments.In this case,
the judge has an additional 60 days to make the appointment.
2. Vacancies
The commission may experience vacancies in various ways,as by death,inability
to perform duties,resignation(including failure to file the acceptance and oath of
office)or removal from the corporate limits of the city.The district court may
Minn.Stat.§410.05,sand. remove members from the commission at any time by written order.The order
2.
must show the reason for removal.If any member fails to perform the prescribed
duties and fails to attend four consecutive meetings of the commission without
satisfactory explanation,a majority of the members may sign a request for the
member's removal and the court must order the removal. The chief judge fills all
vacancies by appointment for the unexpired term.The commission should always
contain its full complement of members.
3. Functions of a charter commission
Unless the charter commission of a statutory city determines that a home rule
Minn.Stat.§410.05,subs. charter is not necessary or desirable and discharges itself by a vote of three-
5. fourths of its members,the city is never legally without a charter commission.The
commission's function is to continue to study the local charter and government.
The commission is required by law to meet at least once each calendar year.In
addition,the commission must meet upon presentation of a petition signed by at
Minn.Stat.§410.05,subd. least 10 percent of registered voters,according to the last annual city election,or
4. by resolution of a majority of the city council.Further,the commission must
Minn.Stat.§410.12,subs. specifically convene to propose charter amendments upon presentation of a
1. petition of at least 5 percent of the number of votes cast at the last state general
election in the city.
Minn.Stat.§410.12,subd. If voters reject the first charter proposed by a commission,the commission may
1. continue to submit proposals until the voters finally adopt one.Thereafter,the
commission may submit new charters or amendments to the old charter,whenever
it sees fit.
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The charter commission is like a standing constitutional convention.It has the
power to propose charter changes at any time.If the city's charter does not work
or proves to be faulty in operation,it is the commission's duty to propose
improvements. It should,therefore,meet at regular intervals at least twice a year,
and keep its organization intact should any emergency arise.
4. Drafting the charter
Mimi.Stat.§410.05.subd. Within 30 days after its appointment,the charter commission must make rules,
2. including quorum requirements,on its operations and procedures.The
commission must file an annual report of its activities with the chief judg e on or
before Dec.31 of each year,and must send a copy of the report to the city clerk.
Minn.Stat.§410.07. In a city without a home rule charter,the new charter commission must deliver to
the city clerk as soon as practicable,a report that states a home rule charter is not
necessary or desirable,or the draft of a proposed charter.A majority of the
members of the commission must sign the report or the charter draft.
Drafting a city charter is a complex and difficult job that requires special skill.A
Minn.Stat.§410.06. charter commission may,subject to the dollar limitations contained in the law,
employ an attorney and other personnel to assist in drafting a charter.Before
getting too far along in the process,a charter commission should seek advice on
what should be included in a charter and should also submit a draft to an impartial
expert for final review.
See League research The League of Minnesota Cities can be of assistance in furnishing the commission
memos Charter and with pertinent charter materials.The charter commission may also find it helpful
Election Data for
Minnesota Cities(390c.1); to have a member of the League's staff attend an early meeting of the commission
A Model Charter for to talk about forms of government,drafting procedures,and major policy
Minnesota Cities(100a.5); problems. The League will also provide general advice.For a nominal fee,League
handbook Chapter I;and
the National Civic counsel will examine and comment on an existing charter,charter draft or
League's Model City amendment.Almost all proposed charters have been sent to the League for this
Charter,Eighth Edition kind of review and comment.
(2003).
The commission and its committees should secure informed and interested
opinions from citizens and city officials about the existing form of government
and the proposed changes.The charter commission should consider criticism or
positive experiences with the existing government when drafting the charter.The
commission should bring tentative proposals to the attention of the public and city
officials before making final decisions.Often,the mayor,council members,and
city officials may have special insights into the merits or practicality of particular
proposals.
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When a majority of commission members approves a charter draft,the
commission should make and authenticate at least three identical,clear copies.All
the members who approved the draft should sign each of the copies.One copy
should go to the clerk of the city,who will deliver it to the city council.The
charter commission should keep the second copy in its files.A third copy might
be useful for newspaper publication.
5. The charter election
Minn.Stat.§410.10,surd. After receiving the signed draft charter,the clerk notifies the city council of its
receipt and reminds the council to submit the charter to an election by the voters.
If the council fails to do this,the court may order it.
The council has several options regarding the time of the election.If no general
city election is to occur within six months after the clerk receives the draft,the
council must call a special charter election within 90 days of receipt of the draft
charter.If a general city election will occur within six months,the council may
either postpone the election on the charter until that general election,or it may call
for a special election prior to the general election.
Minn.Stat.§410.10, The charter commission may recall its proposed charter at any time before the
sut>ds. 1,2. council has fixed a date for the election.The council may authorize the
commission to recall the charter at any time prior to its first publication.The
notice of election must include the complete charter. The notice must be published
once a week for two successive weeks in the official newspaper and may also be
published in any other legal newspaper in the city.In First Class cities,the
publication must be made in a newspaper having a regular paid circulation of at
least 25,000 copies.
a. The charter campaign
Charter commission members have differed in their views of the role of the
charter commission and its members in the charter campaign.The law does not
give the commission any responsibility after the charter has left the commission,
nor does it set any restrictions. Some charter commissions have served as the
principal sponsoring organization for the charter.Commission members have been
responsible for publicity and have made public speeches on the charter's behalf.
In other cities,the commission as a whole has not been involved in the campaign,
but sometimes individual members have participated.Because the statutes do not
address the subject,what commission members do will depend on their perception
of an appropriate role. Surely no other group is likely to know more about what
the charter contains and why,and none is likely to be more interested in the
outcome of the charter election.
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No outsider can give much advice on how to campaign for adoption of the charter.
Local conditions and the kind of opposition that might develop will determine the
necessary community response.Overconfidence,however,frequently results in
the defeat of a charter. The opposition is usually vocal and well organized.It is no
easy task,especially at a general election,to get the necessary majority to vote in
favor of the charter. Frankness and honesty about the contents of the charter can
help to disarm opposition.Throughout its entire proceedings,the commission
should inform the public of its actions.
A..G.Op.442-A-20(Jul. Charter commissions should keep in mind that expenditure of public funds to
18.1927);A.G.op.442- promote a particular election outcome may be questionable. While efforts to
A-20(Jul.10,1952);A.G.
Op.476-B-2(Apr.29, inform voters about the charter and to encourage voters to cast their ballot seem
1954). reasonable,a"vote yes"campaign brochure is more questionable.Campaign
efforts by commission members in their role as private citizens seem acceptable,
provided they do not claim to speak for the entire commission.
b. Form of ballot, required majority, certification
Minn.Stat.§410.10. The city covers the expense of a charter election.The ordinary rules of the
s°t'ds.t'3. conduct of elections apply,but the statutes add the following provision:"If the
election is held at the same time as the general election,the voting places and
election officers shall be the same for both elections. . .The ballot shall bear the
printed words: `Shall the proposed new charter be adopted?Yes No,'(with a box
after each of the last two words,in which the voter may place a cross to express a
choice).If any part of such charter be submitted in the alternative,the ballot shall
be so printed as to permit the voter to indicate a preference in any instance by
inserting a cross in like manner."
Minn.Cont.art.x11,§4. The Constitution provides the Legislature may set,by law,the majority necessary
Minn.Stat.§410.11. to adopt a proposed charter. The majority needed to adopt a charter is 51 percent
of those voting on the question at the election.A three-fourths majority,however,
Minn.Stat.§410.12 L. is needed to amend a charter to change liquor patrol limits.Provisions to remove
Minn.Stat.§410.04. or amend charter provisions changing the sale of intoxicating liquor require a 55
A.G.Op.59a-1 I(Dec.30, percent majority. Statutory provisions specifying the percentage of necessary
1981). votes to adopt a new or revised charter or to amend a charter supersede conflicting
charter provisions.
c. Filing copies of the charter
If voters adopt the charter,the city clerk must file copies in the office of the
Minn.Scat.§410.11. secretary of state,the office of the county recorder,and the clerk's office.A
certificate attesting to the accuracy of the charter giving the date of the election
and the vote by which the charter was adopted,must accompany each copy.
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Although the Minnesota Constitution and laws do not require it,the charter
commission should retain at least one copy of the charter.Printed copies of the
charter should be sent to the League of Minnesota Cities,the Minnesota Historical
Society,and to state and local libraries.
These groups will frequently refer to the charter,and the League can use one or
two copies to send on loan to other Minnesota charter commissions considering
new charters.
In addition,if the city has a web site,it may want to consider posting an electronic
copy of the charter for increased public access.
Once the city clerk files the copies and certificates,the new charter will take effect
Minn.Stat.*410.11. 30 days after the election or at another time specified by the charter. The charter
supersedes any previous charter of the city.The courts must take judicial notice of
the charter.
The officials elected and appointed under the charter may take control of the city's
records,money,and property at any time specified by the charter. The charter
may provide that until an election of officers occurs,the officers under the old
charter will continue to function.When the new charter becomes fully operational,
the re-organized city corporation is in all respects the legal successor of the
corporation organized under the old charter or state law.Existing,consistent
ordinances and contracts continue until the council changes them or they expire
by their terms.
F. Amendments to the charter
Minn.Stat.§410.12. Amendments may originate in one of five ways:
The charter commission may propose amendments at any time.
A number of registered voters,equal to 5 percent of the total votes cast at the last
state general election in the city,may sign and file a petition with the charter
commission.This percentage of voters cannot be changed by a provision in a
A.G.Op.59a-11(Dec.30, charter.The petition must state the proposed amendment to the charter. The
1981).
commission must submit the petition to popular vote. The amendment goes to the
city clerk,who notifies the council.The council then provides for the election
Davies v.City of under the same rules that apply to a new charter.The council may not refuse to
Minneapolis,316 N.W.2d submit or change the amendment as long as it is constitutional.A city council does
498(Minn.1981). not need to submit an unconstitutional charter amendment to the voters.The
secretary of state is required to develop rules governing the manner in which
petitions required for any election in this state are circulated,signed,filed,and
inspected.The secretary of state shall provide samples of petition forms for use by
Minn.Stat.§20413.071. election officials.
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The city council may propose an amendment by ordinance subject to charter
commission review.The council submits the ordinance proposing an amendment
to the commission,which has 60 days for review.If the commission formally
requests an extension,the council may extend this review period by an additional
Minn.Stat.§410.12,subd. 90 days.After the review period,the commission returns the amendment or its
5. own substitute amendment to the council.The council submits to the voters either
the amendment it originally proposed or the commission's substitute amendment.
Minn.Stat.§410.12,subd. The charter commission may recommend the council amend the charter by
7' ordinance.In this case,within one month of receiving a recommendation to amend
the charter by ordinance,the city must publish notice of a public hearing of the
proposal.The notice must contain the text of the proposed amendment.The city
must hold the public hearing on the proposed charter amendment at least two
weeks but not more than one month after the notice is published. Within one
month of the public hearing,the city council must vote on the proposed charter
amendment ordinance.The vote must be unanimous,including approval by the
mayor if the mayor has veto power.The ordinance proposing the amendment is
subject to the same publication requirements as other ordinances.The ordinance
does not become effective for 90 days.During the first 60 days,registered voters
equal to 2 percent of the votes at the last state general election or 2,000 voters,
whichever is less,may submit a petition forcing a referendum on the amendment.
If voters file a proper petition,the city must handle the amendment like any other
charter amendment,except the council may submit the ordinance at a general or
special election that occurs within 60 days after filing the petition, or it may
reconsider its action in adopting the ordinance.
Minn.Stat.§410.12,subd. In cities of populations less than 10,000,the council may propose amendments by
6 ordinance without submitting them to the charter commission.Four-fifths of the
council members must vote for the ordinance.Two weeks published notice is
necessary before the vote.The council must then submit the ordinance to the
voters like any other amendment.
1. The vote on an amendment
The election concerning proposed amendments and the arrangement of the ballot
Minn.Stat.§§410.10. are substantially the same as in the case of the adoption of a new charter. An
410.12,410.04. amendment needs the favorable vote of 51 percent of those voting on the question.
Minn.Stat.§410.12,subd. When an amendment to a charter is proposed by the charter commission or
l petitioned for by the voters of the city,the proposed amendment must be
submitted at least 12 weeks before the general election.
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Amendments,like charters,need the clerk's certification. Copies must be filed in
the offices of the secretary of state and county recorder, as well as in the clerk's
office.Amendments take effect either at the end of 30 days after the election,or at
some other time if the amendment so specifies.The law also allows for alternative
proposals.The League of Minnesota Cities would also appreciate receiving a copy
in order to keep the LMC charter collection up-to-date. State and local libraries
and the Minnesota Historical Society are also suggested recipients.A city may
also want to consider posting charter amendments to its web site to keep the
online charter up-to-date.
2. New or revised charter
Any city having a home rule charter may adopt a new or revised charter in the
same manner as an original charter. If a new or completely revised charter is to go
to the voters,the preparation of the ballot and other procedures are substantially
the same as for the original charter.
G. Abandoning a home rule charter
Minn.Const.art.x11.§5. Any home rule city may abandon its charter and become a statutory city. Since the
state was formed,only three cities—Jordan,Isanti,and Sauk Centre,all since
1989—have abandoned their charter form of government.These three cities are all
Minn.star.§410.30. now Plan A statutory cities.A city may abandon its charter by presenting a
proposal,adopting it,and having it become effective in the same manner as a
charter amendment.Accordingly,abandonment would require the approval of 51
percent of those voting on the question.
The proposal must include a schedule containing necessary provisions for
transition to the statutory city form of government in order to place the city on a
regular election schedule as soon as practicable.The proposal may provide for
continuation of specified provisions of the home rule charter for an interim period,
and must specify the plan under which the city will operate as a statutory city.
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III. General powers of a home rule
charter city
Concerning the form of A city charter should deal only with the fundamentals of the governmental
government of a home rule organization of the city,leaving the council free to exercise a broad grant of
charter city see Mitm.Stat.
§410.16 and Handbook authority by ordinance.Modern charters contain provisions that claim for the city
Chapter 1. all powers that the home rule provision of the Constitution permits a city to
See League research memo assume.Older charters contain a long list of specific grants giving various powers
A Model Charter for to the city.The strong statements of intent found in League and National Civic
Minnesota Cities(100a.5) League model charters should be adequate to ensure that the omnibus grant gives
Chpt.1,sec.1.02;and the city all municipal power it might receive through more specific grants.
National Civic League's
Model Ciry Charter,
Eighth Edition(2003)Art.
1,sec.1.01.
Park v.City of Duluth, 134 Minnesota Supreme Court decisions generally have given a liberal construction to
Minn.296,159 N.W.627 all-powers grants in city charters. In addition to powers granted by the charter,
(1916);State v.City of
Duluth, 134 Minn.355, various state statutes may give additional powers to a city and regulate certain
159 N.W.792(1916);city activities.For example,authority for planning,police civil service commissions,
of Duluth v.Cerveny,218 and municipal forest maintenance is included in laws dealing specifically with
Minn.551,16 N.W.2d 779
(1944). these subjects.
A. Broad grant of powers
The following list of powers of home rule charter cities is not complete or all-
inclusive.Many powers of charter cities are discussed in more detail in other
chapters of the LMC Handbook.
A home rule charter may provide any municipal powers the Legislature could
have delegated to the city,as long as the powers are consistent with state statutes.
A number of city charters have attempted to do this.Under such a grant,the
charter may authorize the city to provide for medical clinics,public transit,and
industrial parks.It may authorize any of a range of public enterprises as long as
they do not involve the use of public funds for an unconstitutionally private
purpose.The limits depend more on public policy than on the lack of home rule
charter power.
Nordmarken v.City of A city,however,even one organized under a city charter,has no inherent
Richfield,641 N.W.2d 343 powers—only such powers as are expressly conferred by statute or are implied as
(Minn.Ct.App.2002);
Lilly v.City of necessary in aid of those powers. If a matter presents a statewide problem,the
Minneapolis,527 N.W.2d implied necessary powers to regulate are narrowly construed unless the
107(Minn.Ct.App. Legislature has provided otherwise.
1995).
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Minn.Stat.§410.33. If a charter is silent on a topic that Chapter 412 or another statute addresses for
Minn.Stat.ch.412, statutory cities,home rule cities may usually apply the general law on the subject.
If,however,general law prohibits a charter from addressing the matter or provides
that the charter prevails over general law,the home rule city may not apply the
general law.
1. Taxes
See Handbook Part VI. Presumably,a charter may grant a home rule city power to tax although the state
has largely pre-empted two local non-property taxes:the sales tax and the income
tax. State law has historically provided some differences between home rule
charter cities and statutory cities in property tax levy authority.
Minn.Stat.§275.75. For example,the Legislature allows charter cities,for the years 2004 and 2005,to
exceed their charter limits or referendum requirements for levy increases if the
increased levy is needed to offset reductions in city local government aid.
However,state imposed levy limits still apply.
2. Finance
The charter may,but does not need to,require a budget system.However,current
See Handbook Chapter 22 truth-in-taxation laws require all cities to prepare a budget.The charter may
on Budgeting and Chapter regulate the payment of claims.The charter also may limit or broaden the
23 on the Property Tax purposes for which the city may spend money beyond the limits set for statutory
Levy. cities.For example,a charter could allow appropriations to private agencies
performing work of a public nature,while statutory cities probably could not.The
law limits statutory cities in their issuance of warrants in anticipation of the
collection of taxes.A charter may broaden or curtail this authority.
Minn.Stat.§410.325. Both statutory and home rule charter cities may use a system of anticipation
See Handbook Part VI. certificates.A charter may lower the debt limit applicable to cities,but it may not
raise the limit.A charter can restrict the purposes for which the city may issue
bonds,and it can make the procedure easier or more difficult. The charter may
authorize the city to borrow money directly from banks and other lending
institutions,rather than issuing bonds or certificates.
3. Utility regulation
See handbook Chapter 12. The Minnesota Public Utilities Commission and the Department of Commerce
Minn.Stat.§410.09. regulate the service and rates of private gas,electric and telephone utilities.
Charters may require gas and electric franchises and may adopt regulations,
including requirements for a gross earnings tax or similar fees. Strict limitations
on the use of franchises,taxation,and fees for the use of public rights-of-way
exist,whether or not a city has a charter.
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4. Municipal utilities
Minn.Stat.§412.321. Statutory cities may establish electric,gas,light,and power utilities only after a
vote by the people—regardless of the method of financing.A charter may provide
for acquisition without a vote or may require a different majority from the
majority necessary in statutory cities.A charter may give the right of
condemnation without a time limit.A charter may also allow the city to use
surplus utility funds to support general funds.
5. Ordinance procedure
Minn.Stat.§412.191, Statutory cities may pass an ordinance on a single reading at the same meeting
subd.4. that the ordinance first comes before the council.The ordinance must be published
Minn.Stat.§410.20. in full or in summary form in the local newspaper. Statutory cities may,but do not
need to,require several readings and a lapse of time between readings.Charters
may or may not provide for publication,and they may impose other restrictions on
the ordinance process. Statutory cities may not submit ordinances to the people
under the initiative and referendum process;home rule charters may provide for
initiative and referendum.
Minn.Stat.§410.20. Only ordinances that are legislative in character may be enacted through the
• •■., Hanson v.Ciry of Granite initiative and referendum process.Legislative actions are those that are general in
Falls,529 N.W.2d 485 nature and lay down a permanent and uniform rule of law.Administrative actions,
(Minn.Ct.App.1995); on the other hand, are those of a temporary and special character.They merely
Housing&Redev.Auth.v.
carry out existing laws relate to the daily administration of municipal affairs.
City of Minneapolis,293 g aws and �' p
Minn.227,198 N.W.2d Administrative actions include the settlement of lawsuits,entering of contracts,
531(Minn.1972); acceptance or rejection of bids,sale of municipal bonds,appointment of city
Oa/anan v.City ojEveleth,
officials,levying of taxes,granting of licenses and permits,and the adoption of
163 Minn.100,203 N.W.
514(1925).See also A.G. budgets.
Op.858(Oct.26,1970);
A.G.Op.858(August 5.
1970).But see City of
•
Cuyahoga Falls v.Buckeye
Comty.Hope Found,538
U.S. 188,123 S.Ct.1389
(11.S.2003);A.G.On
185b-2(Mar.8.1962).
6. Personnel
In home rule cities,the charter may set procedures for appointments and removals
of non-elective officers and employees at the discretion of the council.The charter
may include restrictions,such as a formal civil service system,and it may
authorize the council to fix administrative salaries subject to the limitations and
procedures provided by the charter.
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7. Contracts
Minn.Stat.§421.345. State law establishes bidding procedures and uniform dollar limits for all city
contracts for the purchase,sale or rental of supplies,materials or equipment,or the
construction,alteration,repair or maintenance of real or personal property. While
the language leaves some doubt about the application of the law to home rule
A.G.Op.59-a-15(Aug. charter cities,the attorney general is of the opinion that the statute supersedes all
22.19691. charter provisions concerning uniform dollar limitations.Presumably,the charter
See Handbook Chapter 24. may regulate some phases of the contracting procedure,but most charters deal
only with subjects not covered by the state law.
8. Tort liability
See Handbook Chapter 19. Both statutory and home rule cities are subject to the same tort liability imposed
by statutes and court decisions.Home rule charter cities may not extend or curtail
this liability for torts to any extent.
9. Special assessments
See Handbook Chapter 26. Both statutory and home rule cities may finance almost any type of local public
Minn.Const.art X,§1;
improvement by special assessments against benefited property under a uniform
Minn.Stat.ch.429. constitutional and statutory procedure.While most home rule cities follow state
law,a city charter may provide a different procedure or authorize the council to
Minn.Stat.§429.111. adopt a different procedure and may require the city to use that method
Minn.Stat.§429.021. exclusively.A charter city,however,must conform to certain requirements of
subd.3. state law.The charter can require the city to use general funds or service charges
rather than special assessments for local improvements.Any special assessments
used must comply with the constitutional requirement that the amount of the
Minn,coast.art.X,§1. special assessments cannot exceed the increased market value of the property as a
result of the benefit due to the local improvement.
10. Real estate
See Handbook Chapters 15 Charter and statutory cities may acquire real estate that is needed for public
and 24. purposes and the council can dispose of it when it is no longer needed. State law
does not require bids and approval of the voters,but a charter may impose such
restrictions.
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11. Elections
Minn.Stat.§205.02,subd. State statutes regulate many phases of election procedure,but others are open to
2.
city regulation through the charter. State law fixes the date of city elections in
Minn.Stat.§205.07,subd. both statutory and home rule cities for the first Tuesday after the first Monday in
1. November in even or odd years.A charter may not impose term limits.
Minneapolis Term Limits
Coalition v.Keefe,535
N.W.2d 306(Minn.1995).
Minn.Stat.§410.20. The charter can provide for recall elections,although the Minnesota Constitution
See Minn.Const.art.VIII, and court decisions have restricted recall of elected city officials only to cases of
§6 and Jacobsen v.Nagel, serious malfeasance or nonfeasance during the term of office in the performance
255 Minn.300,96 N.W. of the duties of the office or conviction during the term of office of a serious
2d 569(1959). crime.No recall system exists in statutory cities.
Minn.Stat.§410.16. The charter may use proportional representation as a method of election and may
set up different nomination procedures from those in statutory cities.The charter
may provide for ward representation,which is generally not available to statutory
cities.
12. Accounting
Minn.Stat.§412.222. Under the law, statutory cities may employ a public accountant or the state auditor
Minn.Stat.§§6.54 and to perform an audit.By charter,cities may require an audit each year or
6.55. periodically,and they may designate a person to perform the audit.Charter cities
are also subject to the law that requires the state auditor to examine a city's
records on the initiative of the council or a petition of citizens.
Minn.Stat.§§471.695 to State law requires all cities to publish their annual financial statements.In home
471.698. rule cities,the charter may require additional reports and publication of the reports
depending on the desires of the community. The number and kinds of funds,and
the authority to transfer between funds,may come under charter regulation with
only a minimum of statutory restriction. In statutory cities,the law is more
See Handbook Part VI. restrictive on this subject.
•
13. Regulation of activities
See Handbook Chapter 12. Statutory cities must find a specific statute authorizing the licensing or regulation
of an activity before they can regulate that activity.A charter city can use an all-
powers provision in its charter to license or regulate activities within its borders.
Without an all-powers or other broad grant of authority,a charter city must find a
specific charter provision or state law authorizing the regulation.
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14. Removal of council members by the council
Minn.Stat.§351.02. State law establishes the specific situations that create vacancies in elective office.
A.G.Op.59a-30(Jul.24, A charter may not provide for removal of council members by the council for a
1996). reason not explicitly stated in the statute.
B. Delegation of powers
A.G.Op.624a-3(June 28, Absent specific statutory or charter authority,the council of a charter city may not
1999);A.G.Op.1001-a delegate its powers and duties calling for the exercise of judgment and discretion
(Sept.15,1950).
to other persons or bodies. Specific language must exist in the charter authorizing
Muhring v.School District any delegation of these powers.
No 31,244 Minn.432,28
N.W.2d 655(1947);
Minneapolis Gas and
Light Co.v.City of
Minneapolis,36 Minn.
159,30 N.W.450(1886).
IV. Conflict between state laws and
home rule charters
Harmonizing general statutory language and charter provisions dealing with the
same subject is often difficult. Cities can resolve potential conflicts between state
laws and charter provisions through the following process:
A. General rule
Nordmarken v.City of The general rule is that when a charter provision is in conflict with the state
Richfield,641 N.W.2d 343 statutes,the statutory provision prevails and the charter provision is ineffective to
(Minn.Ct.App.20021);
Sinclair Oil Corp.v.City the extent it conflicts with the state policy.
of St.Paul,2002 WL
1902920(Minn.Ct.App.
2002);Columbia Heights
Relief Ass'n v.City of
Columbia Heights,305
Minn.399,233 N.W.2d
760(1975).
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B. Identifying a conflict
When state law is silent on an issue covered by charter and the issue is one that
the Legislature has the power to delegate to a city,the assumption is that there is
no conflict with state policy.On the other hand, when a charter provision and state
Mangold Midwest Co.v. law deal with the same issue,the possibility for conflict occurs.Rather than
Vill.of Richfield,274
Minn.347,143 N.W.2d requesting an attorney general's opinion or having a court resolve the possible
813(1966). conflict,a city council can,by resolution,rely on the opinion of its attorney as to
whether a conflict exists.In making this decision,the attorney should consider the
following points:
• Is there a court case or attorney general's opinion that deals with the same or
similar provisions?If so,the city must follow the court ruling.Even though
attorney general opinions are only advisory,the city should seriously consider
the reasoning behind such an opinion.The LMC Handbook attempts to
identify all court decisions and attorney general opinions that deal with charter
and state law conflicts in order to assist charter city officials in determining
what state laws apply to their city.
• In the absence of a court decision or attorney general ruling,does the state law
clearly outline or imply a policy decision by the Legislature that the law
applies to charter cities as well as to statutory cities?For laws passed by the
Legislature since 1976,this determination is easy.In any law taking effect
after July 1, 1976,the word"city"means statutory city only.After that date,in
Minn.star.§410.015. order for a law to apply to charter cities,the law itself must clearly state it
applies to both statutory and home rule charter cities.A mere reference to all
cities would not be sufficient to include charter cities.
For laws enacted before that time,cities should look for phrases such as,"all cities
shall"or"unless the council determines to proceed under charter provisions"for
clues of legislative intent.Generally,mandatory laws enacted by the Legislature
prior to July 1, 1976, for the protection of the public probably apply to all cities.
C. Resolving conflicts
Columbia Heights Relief Even if a general state law applies to a charter city,it does not necessarily
Assn v.City of Columbia supersede a charter provision.If both the charter and state law direct the city to
Heights,305 Minn.399,
233 N.W.2d 760(1975). take certain actions or follow certain procedures,it may be advisable to follow
both the charter provision and the state law,in order to resolve any conflicts
between the two provisions. State law supersedes charter provisions only to the
extent the charter provisions conflict with state policy.
4-22 HANDBOOK FOR MINNESOTA CITIES
This chapter last revised 10/10/2006
CHAPTER 4
V. How charter cities should use
the LMC Handbook
This Handbook is for both statutory and home rule charter cities.Each of the
following chapters includes a section on how the chapter relates to charter cities.
Because of the differences in city charters, it is difficult to generalize about the
ways in which they are affected by state laws.The Handbook does mention when
statewide laws and rules,court decisions,and attorney general opinions apply to
charter cities.
HANDBOOK FOR MINNESOTA CITIES 4-23
This chapter last revised 10/10/2006