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RESOLUTION PROVIDING FOR THE IMPOSITION OF SERVICE CHARGES WITHIN THE LINCOLN PARK SPECIAL SERVICE DISTRICT.
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BY COUNCILOR CLANAUGH AND VICE-PRESIDENT KENNEDY:
BE IT RESOLVED, by the city council of the city of Duluth, Minnesota, as follows:
Section 1. PURPOSE AND AUTHORIZATION.
1.01. Under and pursuant to the provisions of Minn. Stat. §§ 428A.01 - 428A.101 (the “Act”), the city is authorized to establish a Special Service District.
1.02. The Act provides that service charges may be imposed by the city, within the Special Service District, at a rate or amount sufficient to produce the revenues required to provide the Special Services in the District.
1.03. Property owners in Lincoln Park who want to improve the safety, cleanliness, and economic vitality of the Lincoln Park district by establishing the District pursuant to the Act have petitioned the city to establish the District and to establish service charges, all as more particularly set forth in an Operating Plan for Duluth’s Lincoln Park District dated May 2026 (the “Operating Plan”), incorporated herein by reference. The Operating Plan, which has been incorporated into the Ordinance establishing the District, sets forth the Special Services to be provided, the particular area of the city to be included within the District’s boundaries, the amount and manner of imposing service charges, and the manner in which Special Services will be implemented. A copy of the Operating Plan is available for public inspection in the city clerk’s Office, 411 West First Street, Duluth, Minnesota.
Section 2. SERVICE CHARGE IMPOSED.
2.01. A service charge is hereby imposed upon all property that is classified under Minn. Stat. § 273.13 and used for commercial, industrial, or public utility purposes, or is vacant land zoned or designated on a land use plan for commercial or industrial use and located within the boundaries of the District. The service charge is imposed on the basis of net tax capacity. As used in this ordinance, the term “net tax capacity” has the meaning set forth in the Act. Service charges not paid on or before the applicable due date for ad valorem taxes shall be subject to the same penalty and interest as in the case of ad valorem tax amounts not paid by the respective due date. The due date for service charges payable in the same manner as ad valorem taxes is the due date given in law for the real or personal property tax for the property on which the service charge is imposed. Service charges will be collected in the same manner as ad valorem real estate taxes. The assessment for service charges will be based on a total assessment of $40,000 for the year 2027. The maximum service charge that will be imposed on any single property will be capped at $1,000 in 2027. The total assessment and maximum service charge will increase each year as follows; $41,600 in the year 2028, $43,264 in the year 2029, $44,995 in the year 2030, and $46,795 in the year 2031. The cap will increase to $1,040 in 2028, $1,082 in 2029, $1,125 in 2030, and $1,170 in 2031.
Section 3. ANNUAL CERTIFICATION
3.01. Service charges imposed on net tax capacity which are to become payable in the following year, must be certified to the county auditor by the date provided in Minn. Stat. § 429.061, subd. 3, for the annual certification of special assessment installments. Pursuant to a Joint Powers Agreement with St. Louis County (City Contract No. 21789), the county assessor is directed to provide this certification annually and on a timely basis.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution establishes service charges based on net tax capacity to pay for Special Services in Lincoln Park for the years 2027 through 2031.