City of Magnolia to adopt
Ordinance 1-154
ORDINANCE NO. 1-154
AN ORDINANCE ESTABLISHING CHAPTER 154 - URBAN AND RURAL
SERVICE DISTRICTS IN THE CITY OF MAGNOLIA
The City Council of the City of Magnolia, does ordain as follows:
Section 1. That a new Chapter 154: Urban and Rural Service Districts be adopted as follows:
Chapter 154: Urban and Rural Service Districts
§ 154.01 PURPOSE.
Minnesota Statutes § 272.67 authorizes the City to divide, by Ordinance, areas of the City into a Rural Service District and an Urban Service District, each constituting separate taxing districts for the purpose of all municipal taxes, except those levied for the payment of bonds and judgments and interest thereon.
§ 154.02 ESTABLISHMENT OF URBAN AND RURAL SERVICE DISTRICTS.
(A) Urban Service District. The Urban Service District shall include all lands within the boundaries of the City which are not included in the Rural Service District.
(B) Rural Service District. The Rural Service District shall include lands that are rural in character and not developed for commercial, industrial or urban residential purposes so that such lands are not benefitted to the same degree as other lands by municipal services financed by general taxation in the judgment of the City Council.
(1) The Rural Service District shall include only lands which are undeveloped, maintained in farm crops or seeded, and are ten or more acres.
(2) Tracts of land need not be contiguous to one another to be included in the Rural Service Taxing District.
(3) No City service beyond that normally provided by the townships of the County of Rock or the Town of Magnolia will be provided by the City of Magnolia to the Rural Service Taxing District.
(4) The rural service taxing district shall include the real estate parcels, identified by tax identification number, the City of Magnolia, County of Rock, and State of Minnesota as attached in Appendix A. The City Council shall review annually the tax ratio applicable to all parcels classified within the Rural Service District and ascertain whether or not such parcels still qualify for inclusion within the Rural Service District in accordance with Minnesota Statutes § 272.67.
(5) Whenever any unplatted parcel or lot or portion of an unplatted parcel of land included in the Rural Service District is hereafter developed for commercial, industrial or residential purposes, or basic urban services such as water, sewer or street improvements are extended to such lots, portion of an unplatted parcel, or whenever application is made for a permit for construction of a commercial, industrial or residential building or improvement; or whenever such improvement or building is commenced without a permit; or the lot, portion of an unplatted parcel otherwise fails to meet the criteria for inclusion in the Rural Service District, the City Council shall adopt an ordinance removing the entire unplatted parcel or the entirety of the lots affected from Appendix A and transferring such parcel or lots from the Rural Service District to the Urban Service District. The City Council shall review annually the tax ratio applicable to all parcels classified within the Rural Service District and ascertain whether or not such parcels still qualify for inclusion within the Rural Service District.
(6) Whenever any unplatted parcel or lot or portion of an unplatted parcel of land included in the Rural Service District is hereafter found to be in violation of the right of way easement agreements for City utilities, such failure shall disqualify such parcel of lot and any additional parcels or lots under the same ownership from inclusion in the Rural Service District and the City Council shall adopt an ordinance transferring the entirety of such unplatted parcel or the entirety of the lots affected from the Rural Service District to the Urban Service District.
(7) Under no circumstances shall any portion less than the whole of an unplatted parcel be transferred from the Rural Service District to the Urban Service District unless a deed which physically divides such unplatted parcel has been filed for record in the office of the Rock County Recorder or such parcel is platted.
§ 154.03 BENEFIT RATIO.
The benefit ratio, as determined by the City Council, shall reflect the comparative benefits received by parcels in the Rural Service District versus those in the Urban Service District based on tax-supported municipal services. The benefit ratio between tax-supported municipal services to parcels of land of like, full and true value situated in the Rural Service Taxing District and in the Urban Service Taxing District, respectively, shall be 50:100. By amendment of this ordinance, the benefit ratio may be changed, and lands may be added to or removed from the Rural Service District.
Section 2. This ordinance shall become effective after adoption and second publication and after a certified copy has been filed with the Rock County Auditor pursuant to Minn. Stat § 272.67.
Passed by the City Council of the City of Magnolia, this 12th day of August, 2025.
ATTEST:
/s/ Ingrid Gonzalez, Clerk Treasurer
/s/ Dennis W Madison, Mayor
(08-21, 08-28)
