DETACHMENT:
CURSE OR
CURE?
Part One:
The Rule of Law
Christine M. Scotillo
Municipal Boundary Adjustments
Offi off Ad
Office
Administrative
i i t ti Hearings
H i
P.O. Box 64620
St.
St Paul
Paul, MN 55101
651--361651
361-7910
[email protected]
@
www.mba.state.mn.us
Municipal Boundary Adjustment
Program Overview
„
„
„
„
MBA Unit of the State Office of Administrative
Hearings administers and adjudicates the uniform
system of municipal boundary adjustments
codified in Chapter 414 of the Minnesota Statutes.
MBA acts through its decisiondecision-making authority at
monthly review meetings, administrative hearings
and rulerule-making procedures.
Legal orders are issued for the creation or
dissolution of municipal boundaries through
consolidation, annexation or detachment of land.
Jurisdiction is statewide.
Municipal Boundary Adjustment
Population Served
S
„
„
Local Units of Government:
„ Townships and cities
have the right to initiate
boundary adjustments
and are directly affected
by MBA decisions.
„ Counties can enter into
joint agreements for
orderly annexation with
cities where no organized
township exists.
Individual Property Owners
can initiate proceedings
„
State Level
„ The Department of
Transportation,
Revenue and Natural
Resources, as well as
the Offices of the State
Demographer and
Secretary of State
depend on MBA
decisions to inform and
assist in the
performance of their
various functions.
Municipal Boundary Adjustment
Services Provided
Services
„
Adjudication/Review:
Implement the decisions and orders
of the “Chief Administrative Law
Judge” and other delegated
decision--makers.
decision
„
„
„
„
Monthly Reviews
Alternative Dispute Resolution
Administrative Hearings
Administer:
Staff reviews and facilitates
approximately 200 petitions for
adjustment annually.
„
„
The majority of petitions are from
property owners; the remainder
are from cities and townships.
All adjustments affect local
government and have the
potential for conflict or
agreement.
„
Assistance:
Staff p
provides consultation and
technical assistance on issues
relating to municipal boundary
adjustments.
l
local
l governments
t
property owners
planning authorities
the Legislature
government agencies
professional associations
attorneys
Municipal Boundary Adjustment
Procedural Overview
„
„
„
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„
„
„
„
„
„
Incorporation
Annexation by Order
Annexation by Agreement
Annexation by Ordinance
PCA Ordered Service Extension
Consolidation of Municipalities
Township Review
Detachment of Property
C
Concurrent
tD
Detachment
t h
t and
dA
Annexation
ti
Municipal Dissolution (412.091)
Municipal Boundary
Adjustments
Process Overview
„
„
Non-Contested
N
NonC t t d
a. Administrative review and
decision
b. Monthly and expedited
review
i
Other Hearing and Contested
Cases
a. Notice of Intent
b. First hearing within 30 – 60
days
c. Parties entitled to notice
d. Two weeks published notice
e. Options for resolution prior
to hearing
f Evidentiary hearing
f.
g. Fact Finding and Decision
„
Appeals
a. Within 30 days
b. District Court
Detachment of Property from a
M i i lit
Municipality
Minn. Stat. § 414.06
A. Definition and Requirements
1. Within and abutting city
boundary
2 Rural in character
2.
3. NOT Developed for
urban residential
commercial
industrial
B. Initiating the Proceeding
1 City Resolution or
1.
2. Petition by property owners
3. Less than 40 a. – all property
owners must sign
4 Over
4.
O
40 a. – 75% off property
t
owners sign
C.
Hearing If Necessary
1. Joint Submissions and all
owners
2 Hearing
2.
H i in
i allll other
th cases
a. Notice of hearing:
Towns or city abutting
Countyy
Any planning authority
b. Two week published
notice
c Public hearing
c.
Judicial Authority and Discretion
D.
May Order if
1 Required number of owners
1.
signed the petition
2. Rural in character and not
developed
p for urban residential,,
commercial or industrial uses
3. Detachment would not
unreasonably affect the symmetry of
the city
4. Area is within the city and abuts a
boundary
5. Area is not needed for reasonably
anticipated future development
E.
May Deny if
1
1. City can
can’tt continue government
functions without undue hardship
2. May decrease the area
F
F.
Existing Tax Burdens
1. Detached area may be relieved of
city tax burden and may be assigned
township tax burden
2. ALJ determines proportions
balanced against:
a. amount of taxes due and
delinquent
b. indebtedness of each the city
and
d the
h township
h affected
ff
d
c. for what purpose was the
indebtedness incurred
Trends
500
Number of Adjus
stments
450
400
350
300
250
200
150
100
50
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Fiscal Year
Adjustments
Annexations
Detachments
Part II:
A Case Study
Otto Schmid
Council Member
City of Breezy Point, Minnesota
218 562 5267
218-562-5267
[email protected]
www cityofbreezypointmn us
www.cityofbreezypointmn.us
A QUICK AND DIRTY HISTORY
LESSON
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The City of Breezy Point
Point, Minnesota is
located approximately 30 miles north of
Brainerd.
The City was created in 1939 and originally
was called the Village of Pelican Lakes
Its main industry is tourism and its primary
employer is the Breezy Point Resort
The City’s population is officially listed as
1875 but swells to over 6 times that number
on many summer weekends
A QUICK AND DIRTY HISTORY
LESSON
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The City is classified as a Statutory Plan B form of
government with an appointed administrator/clerk
The City’s
y 2010 budget
g was a mere $1.863 million
The City provides 24/7 police protection and is a
contracted member of the Pequot Lakes Volunteer
Fire Department
The City provides sanitary sewage collection and
treatment for approximately 50% of its residential
units (ERU)
The City completed its second iteration of the
comprehensive plan May 2010 and adopted it June
2010
A QUICK AND DIRTY HISTORY
LESSON
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Historically, Breezy Point was carved out of an area
of forest, lakes and streams.
The Breezy Point Resort was started by Fred
LaPage and sold to Wilfred Fawcett aka “Captain
Billy Fawcett
Fawcett” in 1921
During the prohibition years, the Resort became a
playground
p
yg
of the rich and famous
Captain Billy ran the resort until his passing
February 1940. The resort closed during the war
years.
A QUICK AND DIRTY HISTORY
LESSON
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During the 50’s and 60’s attempts were made to
develop the City as a destination resort area
Limited services were provided by the City
Sanitary sewer collection and waste treatment did
not occ
occurr until
ntil 1978
Most streets remained unpaved until the late 1990’s
The “baby
baby boomer”
boomer impact began to be noticed the
first part of this decade
A QUICK AND DIRTY HISTORY
LESSON
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2000 population was measured at 979 and by
2006 estimated to be 1642
Bill Weber, the City’s planning consultant,
estimated the 2008 p
population
p
to be 2484,
based on 1048 homesteaded units and an
occupancy of 2.37 persons
1684 persons were registered to vote in 2008
City of Breezy Point Pre Detachment
A QUICK AND DIRTY HISTORY
LESSON
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January 2009
2009, the City was placed on notice
that a petition for “detachment” would be
forthcoming
Council members were totally ignorant of
detachment process
Boundary Adjustment 101
F b
February
2009 th
2009,
the Cit
City received
i d notice
ti off a
second detachment petition
Let’s take a look at the
statutes
1 MINNESOTA STATUTES 2009 414 06
1 MINNESOTA STATUTES 2009 414.06
414.06 DETACHMENT OF PROPERTY FROM A MUNICIPALITY.
Subdivision 1. Initiating the proceeding. Property which is situated within a municipality and abutting the municipal boundary rural in character
a municipality and abutting the municipal boundary, rural in character and not developed for urban residential, commercial, or industrial purposes may be detached from the municipality according to the following procedure. The proceeding may be initiated by submitting to the
following procedure. The proceeding may be initiated by submitting to the chief administrative law judge a resolution of the municipality to which the land is attached or by submitting to the chief administrative law judge a petition of all of the property owners of the land to be detached if the area is less than 40 acres or of 75 percent of the property owners if over 40 acres. The petition or resolution shall set forth the boundaries and the area of the land to be detached, the number and character of the buildings, the resident population, and the municipal improvements,
if any, in the area.
Subd. 3. Order. Upon completion of the hearing, the chief administrative law
judge may order the detachment on finding that the requisite number of
property owners have signed the petition if initiated by the property owners,
that the property is rural in character and not developed for urban
residential, commercial or industrial purposes, that the property is within
the boundaries of the municipality and abuts a boundary, that the
detachment would not unreasonably affect the symmetry of the detaching
municipality, and that the land is not needed for reasonably anticipated
future development. The chief administrative law judge may deny the
detachment on finding that the remainder of the municipality cannot
continue to carry on the functions of government without undue hardship.
The chief administrative law judge may decrease the area of property to be
detached and may include only a part of the proposed area to be detached. If
the tract abuts more than one township, it shall become a part of each
township, being divided by projecting through it the boundary line between
the townships. The detached area may be relieved of the primary
responsibility for existing indebtedness of the municipality and be required to
assume the indebtedness of the township of which it becomes a part, in such
proportion as the chief administrative law judge shall deem just and equitable
having in view the amount of taxes due and delinquent and the indebtedness
of each township and the municipality affected, if any, and for what purpose
the same was incurred, all in relation to the benefit inuring to the detached
area as a result of the indebtedness and the last net tax capacity of the
taxable property in each township and municipality.
St t t (continued)
Statutes
(
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d)
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462.351
462
351 MUNICIPAL PLANNING AND DEVELOPMENT; POLICY
STATEMENT.
The legislature finds that municipalities are faced with mounting
problems in providing means of guiding future development of land so
as to insure a safer,
safer more pleasant and more economical environment
for residential, commercial, industrial and public activities, to preserve
agricultural and other open lands, and to promote the public health,
safety, and general welfare. Municipalities can prepare for anticipated
changes and by such preparations bring about significant savings in
both private and public expenditures. Municipal planning, by providing
public guides to future municipal action, enables other public and
private agencies to plan their activities in harmony with the
p y p
plans. Municipal
p p
planning
g will assist in developing
p g lands
municipality's
more wisely to serve citizens more effectively, will make the provision of
public services less costly, and will achieve a more secure tax base. It
is the purpose of sections 462.351 to 462.364 to provide municipalities,
in a single body of law, with the necessary powers and a uniform
procedure
d
ffor adequately
d
l conducting
d i and
d iimplementing
l
i municipal
i i l
planning.
Statutes (continued)
462.355 ADOPT, AMEND COMPREHENSIVE PLAN; INTERIM ORDINANCE.
Subdivision 1. Preparation and review. The planning agency shall prepare the
comprehensive municipal plan. In discharging this duty the planning agency shall
consult with and coordinate the planning activities of other departments and
agencies of the municipality to insure conformity with and to assist in the
development of the comprehensive municipal plan. In its planning activities the
planning agency shall take due cognizance of the planning activities of adjacent
units of government and other affected public agencies. The planning agency shall
periodically review the plan and recommend amendments whenever necessary.
When preparing or recommending amendments to the comprehensive plan, the
planning agency of a municipality
located within a county that is not a greater than 80 percent area, as defined in
section 103G.005, subdivision 10b, must consider adopting goals and objectives
that will protect open space and the environment.
So,, let’s summarize
what we know
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The boundaries of the City of Breezy Point
have remained generally unchanged from
1939 until 2009
Breezy Point is a relatively fast growing City
more than doubling its population between
2000 and 2008
The City describes itself as “up north” in
character
h
t consisting
i ti primarily
i
il off fforest,
t llakes
k
and open lands
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The primary services provided by the
City include police and fire protection,
protection
parks, roads, snow removal and limited
waste water collection and treatment
for approximately 50% of its residential
units
Since 2006, the City’s minimum lot size
has been 2.5 acres
The legislature removed local control
from annexation and boundary
adjustment proceedings in 2002
Administrative Law Judges (ALJ) are
final determiners of petition orders
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ALJ’s are not accountable to any higher
authority such as an electorate
ALJ’s may or may not be cognizant of
conflicting statutes
Townships and counties are not
required to participate in the
proceedings
Costs associated with the petition(s) are
not solely that of the petitioner
The vague and ambiguous wording of
the statute leaves little structure for the
ALJ to follow
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The process requiring “mediation meetings” is
meaningless as the City has nothing to offer a
petitioner determined to be removed from the City
Services p
provided rural residential residents may
y be
the same as services provided sub urban residential
residents but is not addressed
Mediation expenses and hearing expenses are
disproportionately assigned to the municipality
The appeal process in front of district courts would be
another added expense most probably assigned to
the municipality (deep pocket rule)
The planning process undertaken by the municipality
is not a factor and not required of the assigned
township
The issue of lost tax revenues and indebtedness
i
issues
are nott always
l
addressed
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The administrative law judge assumes
“townships” are the best form of
governance for
f areas that
th t are rurall in
i
nature
If the
th above
b
iis ttrue, why
h are public
bli safety
f t
services, planning and regulation activities,
welfare activities delegated to the county?
Just what services are provided by
t
townships?
hi ?
Friday, August 6, 2010 (From the blog of City Administrator/Clerk, Joe Rudberg)
A Different Arena
I know most of you have heard of Annexation. This is where a city brings property from a township into a city and
expands the boundaries.
boundaries If you’re
you re from Breezy Point you have probably heard about Detachment
Detachment. This is
somewhat the opposite. A property owner petitions the state to remove their property from a city.
The statute that addresses this is a very brief one. This statute is a poorly written and accomplishes its goals
but fails to address numerous concerns. I think the issue that generates the most concern is that of the lack
of local control in the process. Here a property owner petitions the state and only the city and property owner
are involved.
i
l d Th
There iis no notice
ti tto th
the receiving
i i ttownship
hi or th
the county.
t Th
They h
have no fformall say iin th
the
matter. After the “required” 3 meetings with property owners an administrative law judge makes a decision.
This person only looks at the detachment law, doesn’t take into consideration the character of the community
nor do they consider any other statute that may conflict with this action. This judge is only accountable to the
governor.
This judge, in the absence of an agreement, allocates costs for the proceedings if a hearing is held. The last
hearings held in Breezy Point resulted in the city paying 75% of the costs. The city didn’t petition to have
land removed, the petitioner did. Does the judge think because we’re a city or have deep pockets we should
have the majority responsibility for loosing tax base and part of the city? It just doesn’t make sense.
The law provides that only abutting property owners are eligible for detachment. The state office allows nonabutting property owners to petition for detachment. They do this by considering that combinations of
property create the abutting situation. This abutting property clause seems to address limited situations
where one jurisdiction may be better able to be served by a neighboring unit of government. The legislative
intent was not to allow wholesale detachment of vast acreages in a municipality without good cause. A very
different interpretation is being used.
There criteria for determining whether or not the property could detach is both vague and broad. Rural in
character, doesn’t affect the symmetry, not commercial or industrial or have utilities. This could be said of
many communities in Minnesota that have a rural flair.
Given legal expenses, hearing expenses, the actions of the past hearings and the lack of common sense
with the state
state’s
s administrative law judge the city council considered our options at the last meeting
meeting. They
reluctantly voted to end the proceedings and the expense by allowing for the detachment. They also
acknowledged indirectly that the resolve for this matter isn’t found at this juncture but rather lies in the need
for change in law. We will be diligently working in this arena.
SYMMETRY
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sym·me·try
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/ sɪmɪtri/ Show Spelled[sim-i-tree] Show IPA
–noun, plural -tries. 1. the correspondence in size, form, and
arrangement of parts on opposite sides of a plane, line, or point;
regularity of form or arrangement in terms of like
like, reciprocal
reciprocal, or
corresponding parts.
2. the proper or due proportion of the parts of a body or whole to one
another with regard to size and form; excellence of proportion.
3. beauty based on or characterized by such excellence of
proportion.
4. Mathematics . a. a geometrical or other regularity that is
possessed by a mathematical object and is characterized by the
operations that leave the object invariant: A circle has rotational
symmetry and reflection symmetry.
b. a rotation or translation of a plane figure that leaves the figure
unchanged although its position may be altered
altered.
5. Physics . a property of a physical system that is unaffected by
certain mathematical transformations as, for example, the work done
by gravity on an object, which is not affected by any change in the
iti f
hi h th
t ti l
f th bj t i
d
And now, for
f the
biggest surprise
of all
ACKNOWLEDGEMENTS
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MN Planning “Annexation Criteria: Report to
th L
the
Legislature,
i l t
A
Aprilil 1995”
Jim Perry, City of Breezy Point
Christopher M. Hood
Flaherty & Hood, P.A.
Steve Reckers