TOWNSHIP DAY Is March 10Th!

2020 SPRING SHORT COURSES: PAGES 23-26 MINNESOTA

Grassroots Government Minnesota Association of Townships Townsh2020 Winter Issue Insideip r

TOWNSHIP DAY is March 10th!

more on TOWNSHIP DAY More Township Stories Pages 8-13 Page 33

Minnesota Town Law Association of Townships Town Law

Grassroots Review Government Page 28 Review Executive Perspective

by David Hann, MAT Executive Director Recently our youngest son services they are entitled. graduated from the Naval The last admonition to the graduates of the Naval Officer Candidate School in Officer Candidate School was to Get Input. Leaders Newport, Rhode Island. My aren’t leaders by virtue of a title or position. They are wife and I made the trip to leaders because there are people who follow them. A the ceremony and spent a leader without followers is just a person out for a walk. long weekend with our son We often think military officers just give commands and other family members and things happen. But everyone who has served in celebrating his transition the military knows that some officers are leaders, and from recent college graduate to active duty naval of- some are not! And, it is always better to be in a unit ficer. At the graduation ceremony the President of the that has leadership and not simply forceful direction. Naval War College, Rear Admiral Shoshana Chatfield, Naval leaders learn to listen to those who they lead, was the keynote speaker. Taking on the challenge of and township officers need to listen to the citizens of leading young men and women in a difficult and pos- their towns as well. Listening doesn’t mean putting our sibly dangerous environment is the unique duty of a fingers in the wind to see which way it’s blowing. It newly minted Ensign. The counsel and encourage- doesn’t mean just following the crowd from the front! ment the Admiral offered is worthy of passing on. When we listen to those we serve, we are seeking to The Admiral had three pieces of advice. First, Get gain a bigger understanding of the problems we face. Qualified. Every job in the Navy, and every job in every Often, especially in a political context, solutions are environment, requires learning new things. We cer- better when they represent a compromise among sev- tainly bring our past experiences and knowledge, but eral options. we need to become expert in our new occupation. The Our Association is dedicated to advocating for town- people we serve depend on and expect nothing less. ship government at the state and national level. In do- Our Association takes this task very seriously; we ing this, we seek to find others who may be willing to want every township officer to “Get Qualified.” The join with us in advancing our interests; we try to build various training and education opportunities are de- coalitions. Part of the reason we have been encourag- signed to make sure newly elected officers have a ing greater participation from township officers across sound understanding of their duties and responsibili- the state is to build relationships with state representa- ties. But even experienced officers need to have their tives and senators. We want them to listen to us, but knowledge refreshed. Sometimes we develop habits we need to listen to them as well! and practices that may need to be reevaluated and So, the advice I pass on to you is: Get Qualified – changed. Our training is designed to do this as well. attend MAT training and continue to learn what du- Secondly, the new Ensigns were advised to Get Busy! ties and skills are required to be a great town officer. Each of us has been gifted with unique talents and abil- Get Busy! Continue to find ways to apply the unique ities. Combining those innate characteristics with our talents you have to solve local problems and help ad- newly acquired skills and knowledge gives us a unique vance the cause of local government in Minnesota. role that can be filled by no one else. We all know why And, Get Input. Keep your ear to the ground and form military duty is called “Service.” But all of us are called the habit of continuous communication. Understand to serve others. what your constituent’s concerns are and build good Accepting the call to serve on a township board is relationships with all your elected representatives and just as important. Our fellow citizens need the leader- senators. Don’t forget to keep us at the MAT office in- ship that a township board can provide. Communities formed as well! We want to hear from you! don’t just “happen;” they are the result of long years Finally, a reminder: Our spring L&R meeting is later of care and nurturing provided by those who recog- than usual this year due to the delay in the start of the nize they have something to offer to others. Part of legislative session. Please make sure to put April 22 the mission of the Minnesota Township Association is and 23 on your calendar and plan to join us in St. Paul. to secure for township officers the tools necessary for And, don’t forget to sign up on our website to receive them to fulfill their obligations as public servants; and the legislative alerts and to participate in our advocacy to strengthen and extend our form of township gov- efforts! ernment in such a way as to provide to the citizens the

4 Winter 2020 • Minnesota Township Insider State of the Township by Gary Burdorf, MAT Board President A New Year The holidays accessible to more township officers. We need are over and now your input. it starts anew. April 22-23 are set for the Legislative and Re- The weather is search Committee meetings in St. Paul at the Best cold, and we all Western Plus Capital Ridge. I’ve noticed in some wish for spring, of my county units that some L&R members but be careful have either left because of jobs, or maybe some what you wish have passed away. If you are interested or know for… remember last spring’s frost boils? someone who might be – just let your county unit know. There are no limits as to who can attend an We’ll deal with all of that and do the best we can L&R from a county, it’s just the voting that is lim- for our townships. ited to one per committee. We welcome anyone who wants to be informed. This process is very The new year also brings lots to do as far as poli- important to townships. It is the information we tics. You are all likely having County Unit meet- and our lobbyists use to communicate with our/ ings where we can pass on information of con- your legislators. cern. Your district directors are planning a Lobby Day at the Capital. Reach out to them for details. We will have a NATaT (National Association of A Lobby Day is one of the very important parts of Towns and Townships) Fly In May 11-13. We are how we can connect with our legislators and we sending six of our directors and 10 township of- need to do that. How else will they know what ficers from around the state. This year we’ve heard townships need? that county units are still putting funds aside for the fly in and there are officers waiting to attend. March 10, the first Tuesday in March, is Town- This trip and all expenses are to be paid by the ship Day! You may have your township elections participant’s county unit, not by MAT. As of this in November, or they may be in March, at this writing, we had 4 of the 10 slots filled, but If you meeting. No matter when you have your elections, are interested, contact David Hann at the MAT of- your annual meeting is where business of your fice to see if there are any slots left. township is done. Most importantly, the township levy is set at this meeting. Hopefully, you all Costs are estimated: Hotel room rate $359+tax have good attendance at your annual meetings. If and fees per night. Airfare from Minneapolis to you’ve figured out a way to do that, please share DC estimated at $500. Meals and miscellaneous that with the rest of us! about $100 a day. Total estimated cost per person is $1500-2000. You can also reach out to me with Spring Short Courses will be on the way in the questions by phone or email. last half of March and into April, and I hope you all have or will have a chance to attend and bring Until next time, think Spring! We’ll try to forget a friend. about the frost boils for now!

April 16th marks the date for our Town Law Review at the Best Western in Burnsville. We are hoping in the future to be able to make this more

Minnesota Township Insider • Winter 2020 5 - Director Insight - Lyle Stai, District 6 Director How did you initially get involved with Township governance? The day in 2004 was memorable for two reasons: At the grocery store in Kerkhoven, the township clerk approached me and asked me if I’d be willing to be clerk. Later that day, I was also asked if I’d like to go along with the group to fire the local minister! I said yes to the township, but the minister resigned before the meeting could take place. How long have you lived in your Township? 33 years Why did you decide to become a MAT District Director? After attending several township association events, I got to know a lot of the directors and they impressed me. Lowell Simpson was retiring and I had sent in a filing, but asked the office to hold it until the last day. I called that day, and no one else had filed so I went ahead with it. It’s been a challenging and rewarding venture. Tell us one thing no one would know about you. I used to be afraid of public speaking. Pets? Reese is 14 years old (and you can see his tail in the photo) and Tucker was a rescue (in my lap) and is about 3 years old. IRS mileage rate in 2020

The Internal Revenue Service today issued the 2020 optional standard mileage rates (PDF) used to calculate the deduct- ible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on January 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 57.5 cents per mile driven for business use, down one half of a cent from the rate for 2019, • 17 cents per mile driven for medical or moving purposes, down three cents from the rate for 2019, and • 14 cents per mile driven in service of charitable organizations.

The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

For all the details, please visit the IRS website: https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2020

Minnesota Township Insider • Winter 2020 7 Tradition and History in Our Hands by Steve Fenske, MAT Attorney Putting aside arguments of whether the decade This brief statement tells us that 53 years ago, begins in the year ending in ‘0’ or in ‘1’, usually townships faced claims, the same claims they do based on Seinfeld references, the change in the today, that other units of government could take third digit of the year gets more attention than the their work. But the Forward states confidently their change in the fourth. The arguable change in the belief that government closest to the governed was decade and the approach of March encouraged us better than the alternatives. The authors felt town- to take stock of the tradition of the Annual Town- ships proved themselves historically, and we can ship Meeting. Townships are Minnesota’s oldest see they have. These statements are reminiscent of form of local government, and remarkably, the rea- one of Thomas Jefferson’s famous quotes but are sons townships were valued in the late 1800’s are no less valued because they are not novel. Town the same reasons they are valued today. Those val- officers and voters continue to attend the township ues center on township voters and their access to meeting, set their local levy, discuss budgets and and control of the township. values, and set up a local government that is re- This is shown by the Forward of “The Township sponsive to the needs of their neighbors. This form Manual”, 50th Edition, published in 1967. This of government challenges other governments to be small manual was given to me this past year and as responsive and close to their voters. sits as a piece of township-nostalgia on my book- Township residents have been gathering for case. Besides the fact that there were 49 previous an Annual Meeting for over 150 years to do fun- editions and a publication date, the depth of time damentally the same thing we do today. Looking it represents, evident from its condition - the book back, the powers of voters in their township has re- has the smell of an old library and its cover and mained much the same. The crown jewel of town- page-edges are yellowed from use and time. The ship voter powers has been the power to set the Forward reads, in part: township’s local property tax levy. The range of this Effort has been made in the past by some to power is shown each year when some townships combine the administration of township affairs increase the tax on themselves, or when some dras- with that of larger government units. However, tically reduce their levy. There are real and personal such efforts have proven that no one can ad- consequences to those actions, but it allows those minister laws as cheaply, efficiently and un- who show up to direct their township. If the vot- derstandably as those such as township officers ers at one meeting go too far, the voters who didn’t who are in daily contact with the legal necessi- show up tend to get involved in town government ties of their local government. quickly. There is dispute but also eventual resolution as the voters participate to set the course. But other powers remain too, including powers to authorize fire or police protection; provide for parks and recreation facilities; approve or deny new buildings and their cost; allow money for town cel- ebrations; care for cemeteries; provide local health, recreational, and social services; and allow local regulations and ordinances. Even when the powers aren’t used, the Annual Meeting is a place for the community to come to- gether and connect with their neighbors. They can discuss their concerns, usually civilly, to produce better understanding. Sometimes the voters come to complain – a valid use of the Annual Meeting as they are petitioning their leaders for change. Re- gardless of their reason, we should take pride in continuing this long tradition of local self-government. 8 Winter 2020 • Minnesota Township Insider Township Day: March 10, 2020 The Annual Town Meeting: From Beginning to End Before the meeting: The clerk must post the The Electors. While any member of the pub- financial report that was approved by the Board of lic can attend the Annual Meeting, only those el- Audit at least 30 minutes before the Annual Meet- igible to vote in the township election may cast ing starts. Minn. Stat. § 366.22. The clerk may a vote or act on motions (making or seconding) also set out a sign-in sheet for those attending the at the meeting. Only town residents may vote – meeting. A sign-in sheet is not required, but it en- landowners who do not reside in the township hances the record of the meeting and can help en- cannot vote. A person’s eligibility to vote may be sure that only eligible people are voting. challenged by any resident, and the validity of the challenge is determined by the election judges ap- The Meeting Begins. The clerk opens the pointed for the township election. Minn. Stat. § meeting. If the clerk is absent, the voters elect a 365.57. Because the statutes assign certain roles chair by acclamation. Minn. Stat. § 365.54, subd. for election judges at the Annual Town Meeting, 3. Then the electors choose a moderator to con- the clerk should request the election judges attend duct the meeting. Minn. Stat. § 365.54, subd. 4. the meeting. Electors decide how to cast votes, be The moderator must state the order of business it by voice, show of hands, paper ballot, or use any for the meeting. Minn. Stat. § 365.56, subd. 1. other method a majority feels most appropriate. It is common for the clerk to prepare an agenda for the Annual Meeting. Voters may modify the Town Levy and Much More. The main rea- agenda during the meeting, except the vote on any son for the Annual Town Meeting is to vote on tax must occur in the order listed on the approved the town levy – the tax rate that residents pay for agenda. local services, like roads and bridges. But, there Supervisors can participate as citizens in the An- is a lot more that can happen at your township nual Meeting and provide information, but the meeting. Minn. Stat. § 365.10 lists the powers the town board does not run the meeting. electors have at the meeting. If desired, the board may ask electors to authorize amounts of money Reports: the Board can spend on a town celebration or rec- 1. The Board of Audit report must be read at ognition of service, like volunteers or a retiring the meeting. Minn. Stat. § 366.22. board member. The money does not have to be 2. A written Road Report must be provided; spent, but without this authorization, it makes it but there is no requirement it be read. Minn. difficult to provide a plaque for a retiring clerk, Stat. § 164.03. treasurer or supervisor. In addition, Agenda item 3. Townships may have other reports that may 9 on the Sample Agenda (page 11) provides a full be of interest to members: Town Hall, Gar- list of items electors may authorize at the meeting. bage and Refuse, Cemetery, or Fire. The common theme here is that the electors provide “authorization,” but the Town Board will de- Parliamentary Procedure. While no par- cide whether to use the powers given to them and liamentary procedure is required for town board decide all spending matters. meetings, the Annual Town Meeting is different. Continued on Pg. 10 Minn. Stat. § 365.56 provides parliamentary procedures that must be used. The only significant deviation from many parliamentary procedures is the motion to reconsider, which can only be made within 30 minutes of the vote. Because of this time limitation, it is recommended that the clerk note in the minutes when motions are voted on. The 30-minute time limit prevents reversing a vote after a majority of those interested in the vote have left the meeting.

Minnesota Township Insider • Winter 2020 9 Township Day: March 10, 2020 The Annual Town Meeting: From Beginning to End (from page 9) In addition, the electors at the Annual Town Meet- that the township is prohibited from contributing to ing may vote to: because the contribution isn’t authorized or would • Establish, alter, or vacate a road. If your town- not serve a public purpose. Town supervisors, acting ship wants to vacate a road, the electors can as the board, are responsible for the proper spending vote to allow the township to proceed with the of town funds. vacation process at the Annual Town Meeting. This is the first step in the vacation process, Don’t Forget to Set the Meeting Time. the Board will then set the date for the hearing The voters or town board may set the time for the An- and road viewing within 30 days. Minn. Stat. nual Town Meeting. The meeting cannot take place § 164.07 between 6:00 pm and 8:00 pm for towns conducting • Police and Fire Protection. The electors may March elections. If voters don’t set the time, the law vote for the township to provide for police says the next annual meeting will convene at 9:00 and fire protection, including approving the a.m. Minn. Stat. 365.54 subd. 1 & 2. This could be amount of money to be raised for this purpose. a surprising change for some of you. If the motion Minn. Stat. § 365.15. to set the time of the next year’s meeting is missed, a • Authorize the regulation of the placement of special town meeting could be called to set it. manure lines in the right-of-way. Minn. Stat. § 160.27. Once authorized, the board of su- Confirm Meeting Place. State law gives vot- pervisors is not required to regulate manure ers the right to set the location, so it can change lines, but may choose to do so if they find it from year-to-year. The location does not have to appropriate. Having the authorization in place be in your township. It can be at a location within means the town board can act immediately to five (5) miles of your township. Minn. Stat. 365.51, regulate the manure lines without having to subd. 1. If a location for the next year’s meeting is wait. not set by the attendees at the Annual Town Meet- ing, the board may select a location or allow the To Donate, or Not to Donate? MAT fre- prior year’s site to kick in by default. quently is asked questions about whether donations can be made at the Annual Town Meeting. To Adjourn or Continue Meeting. The vot- The short answer is no. Town residents may indi- ers may adjourn the meeting, or if they want to re- cate a preference on whether money is spent, but turn later in the year to finish the meeting, they only the Town Board is empowered to spend the may continue the annual meeting. To continue the town’s money. For a town board to donate money, meeting, the voters must approve a motion to con- two elements must be satisfied: tinue that includes the date, time, and location that 1. a statute specifically authorizing the town to the meeting will resume. Some townships continue contribute the money, and their meeting every year so they may consider the 2. the contribution must have a public purpose levy in August or September. The final levy date is and be in the town’s interest. now September 30. (Minn. Stat. § 275.065, subd. MAT has a list of the statutes that currently allow 1.) If the meeting is adjourned, and not continued, townships to donate to an entity. It can be found in a special town meeting will have to be called to set the Information Library under Finances, F1000, the levy if it is not done at the March meeting. Contributions & Donations by Townships. The public purpose doctrine means that money Minutes of Meeting. The Clerk must take the can only be spent on an “activity as will serve as a meeting minutes if present. If not present, the vot- benefit to the community as a body, which, at the ers can elect a clerk for the meeting. The clerk and same time, is directly related to the functions of gov- the moderator of the meeting must sign the min- ernment,” City of Pipestone v. Madsen, 178 N.W.2d utes of the meeting. If the town clerk is elected as 594, 599 (Minn. 1970). moderator, the minutes must also be signed by a supervisor in attendance at the meeting. The min- Both the statutory authorization and public pur- utes must be filed in the office of the town clerk pose elements must be present, or the township can- within two days after the meeting. Minn. Stat. § not give money. There are many worthwhile causes 365.55. 10 Winter 2020 • Minnesota Township Insider Sample Annual Meeting Agenda The following is a sample agenda only, but the bolded red items are mandatory at every annual town meeting:

1. Call the meeting to order. (Clerk) 2. Election of a moderator. (By the voters) 3. Announce Agenda for Rest of Meeting (Moderator, subject to modification by vote of electorate) 10. Motion(s) to approve general levy and any dedi- 4. Reading of previous year’s annual meeting minutes. cated levies (road & bridge, plus others deter- (Clerk) mined helpful to treat as designated and not just a 5. Reading of Board of Audit Report as posted prior budget item from the general fund) and to affirm to meeting. (Clerk) total levy. (Note: once the agenda has been set, the 6. Road report (Note: A written report must be avail- levy must be voted on in the order determined by able, but there is no requirement to read it) Minn. the agenda) Stat. § 164.03. 11. General Discussion of Items of Concern. (Note: 7. Motion(s) to authorize town board to initiate spe- This section can be used to allow the residents to cific road opening, vacation, or alteration process. voice their opinions on any matter, but such input 8. Motion to authorize the Board of Supervisors to is only advisory to the board. Common issues may adopt an ordinance to allow permitting and regu- include culvert policies, preferred newspaper for lation of pressurized flexible force mains (manure publication, desired posting locations, etc.). lines) in the right of way under Minn. Stat. § 160.27. 12. Motion to set later starting time for any State elec- 9. Motion(s) as needed to authorize actions provided tion (Note: Applies only to State election, not town in Minn. Stat. § 365.10, subds. 1-18 as well as other elections, and only for townships with a population statutes requiring approval or prior authorization under 500 located outside the 11-county metropol- at the annual meeting, common examples include: itan area (a later starting time for March elections a. authorization of new town hall site, may be discussed at the annual meeting, but only b. construction and maximum expenditure; the town board can set the later starting time, and c. authorization for town cemetery; the voters may subsequently petition for an earlier d. authorization for certain town park expen- starting time.) ditures; 13. Motion to set the location for the next annual meet- e. authorization to contribute to construction ing. of a community center; 14. Motion to set time to convene and call to order next f. authorization to spend money on previous- annual meeting. (Note: if no time is set, 9:00 a.m. ly abandoned road; is the default.) g. authorization to expend funds for historical 15. Motion to adjourn, or to recess to a specific con- town celebration and/or a general commu- tinuation date, time and location. nity celebration; 16. Adjourn Meeting or Continue to a Later Date. h. authorization to recognize retirees, volun- (Note: If desired, voters may continue the Annual teers, and/or special service efforts; Meeting rather than adjourn if they want to return i. authorization to expend up to $10,000 for later in the year to finish their meeting. To continue contracted health, social or recreational ser- the meeting, voters must approve a motion that in- vices; cludes the date, time, and location the meeting will j. authorization to pass “nuisance” ordinanc- resume. es; k. authorization to fund an emergency service agency such as EMT’s, first responders, etc.)

Minnesota Township Insider • Winter 2020 11 Are you Ready for the Annual Town Meeting? Preparation list: • The 1st alternate date is always the third Tuesday in Review TM-6000, Preparing for and Conducting the An- March. Minn. Stat. § 365.51, subd. 1. nual Town Meeting. It can be found in MAT’s Information • The 2nd alternate date is set by the supervisors and must Library on the MAT website, www.mntownships.org. Each be within 30 days of the third Tuesday in March. township must have an Annual Meeting the 2nd Tuesday of The law allows an alternative to published notice – the March. supervisors may order the notice be posted instead of published unless the voters at any prior annual meeting voted Hold a Board of Audit Meeting. The Town Board must to do something different. Minn. Stat. § 365.51, subd. 2. meet as the Board of Audit at a meeting between the close of the fiscal year (Dec. 31) and one week before the an- Township Election Notice. About two-thirds of the town- nual meeting. The Board of Audit examines and audits the ships hold their election on the 2nd Tuesday in March. town’s accounts. From the Board of Audit meeting, a finan- Townships in the 11-County Metro area (Anoka, Carver, cial report is prepared, which the Clerk is required to post Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sher- at least 30 minutes before the annual meeting convenes. burne, Washington & Wright) must publish two notices of Even though the report must also be read at the meeting, election – 14 days and 7 days before the election. Non-met- MAT recommends copies of the report be made available ro counties do not have to publish notice of the election. for those attending the meeting. Minn. Stat. § 366.22. See However, many townships combine notice of their Annual a checklist for preparing for the Board of Audit meeting at Meeting along with the notice of the election and a notice the end of the article. of the Board of Canvass meeting. (See bottom of page). At the Board of Audit meeting, the Board can recommend the local tax levy that voters will need to approve at the Treasurer’s Report. Within five days before the Annual Annual Meeting. CTAS provides a good budgeting pro- Town Meeting the town treasurer must make and file with gram and supervisors can review last year’s expenses and the town clerk a written statement indicating: look at anticipated expenses for the following year: road • the money received from the county treasurer and from all and bridge maintenance, fire protection, town hall main- other sources; tenance, town cemetery or park expenses or any other proj- • all money paid out as town treasurer; ects the township will need to fund in the future. • the items of money received and from whom; • on what account and when each item of money was Notice. The clerk must provide ten (10) days published received; notice of the time and place of the Annual Town Meet- • when each payment was made and the amount; and the ing in a qualified unexpended balance on hand. newspaper of Best Practice: Publish & Post Minn. Stat. § 367.16(7). The best practice is for the trea- general circula- The best practice is to publish and post no- surer to run these items before the Board of Audit meets tion within the tice of the Annual Town Meeting. Remember and to work with the Clerk so both the Clerk and Treasurer books balance. town. Minn. Stat. the notice must be published in a Legal Pu- §365.51, subd. 2. The notice must blication. The list of publications is available Other Resolutions or Motions. If the electors need to act include the 1st on the Secretary of State’s website: https:// on any items the Town Board wants to move forward – and 2nd alternate www.sos.state.mn.us/business-liens/start-a- establishing or vacating a road, manure line authorization, dates for the an- business/legal-newspapers/ building a new town hall, or purchasing new fire equip- nual meeting. The ment – make sure the paperwork is prepared so electors alternate dates are used only if inclement weather prevents can review and vote on any proposals. the meeting from being held. Notice of Annual Meeting and Election of Officers Notice is hereby given to the qualified voters of ______Township, County of ______, State of Minnesota that the Annual Election of Town Officers and Annual Town Meeting will be held on Tuesday, March ___, 20___. In case of inclement weather, the meeting and election may be postponed until the third Tuesday in March (include date) and if inclement weather also postpones the election and meeting on the third Tuesday they shall be held on ______(Board must set a date within 30 days following the third Tuesday in March) The Election Poll hours will be open from ___ to ___, at which time the voters will elect: (List of offices to be filled) (List all propositions-questions) The Board of Canvass will meet on ______, ______at ____ P.M to certify the official election results. The Annual Meeting will commence at _____ to conduct all necessary business prescribed by law. (Add agenda items if so desired. If the board intends to seek a motion for a later starting time for State elections, that intent must be included in this section of the notice pursuant to Minn. Stat. § 204C.05) The Annual Election and Meeting will be held at the following location: (Name of Building) (Address of Building) Town Clerk, Town of ______Date: ______12 Winter 2020 • Minnesota Township Insider Board of Audit Preparation - Checklist Determine if the Board will meet at a regular meeting If special meeting, it must be posted or special meeting Minutes are different than the financial report. The Minutes are required report is a summary of the findings. Clerk and Treasurer should meet in advance to compare books. Disbursements 1. If using CTAS: Run Disbursement Ledgers – compare Fund/Account/Object Codes 2. If doing it by Hand: Compare each transaction’s accounting (Fund/Account) 3. EFT Transactions: a. is there a paper trail? b. Are EFT’s listed somewhere other than bank withdrawal? c. Do all EFT approvals show in minutes? Receipts 1. CTAS: Run Receipts Ledgers – compare Fund/Account 2. By Hand: Compare each transaction and fund account Triplicate Pre-numbered Receipt Book: any missing for year? 3. If so, are they noted in minutes as void or reason? 4. Automatic Deposits – do they have a triplicate receipt? 5. Automatic Deposits – check all interest payments – are they receipted? Automatic Deposits – do both C/T have a copy of original paperwork? 6. Is this email/paperwork attached to the triplicate receipt? 7. Any disallowed claims? Reason included? For Board of Audit: • Clerk to provide a statement/listing of all money received from the county. • Treasurer to provide listing of all monies received/outgoing Bank Statements Are they balanced with the Clerk and Treasurer books?

Do Cash Control Reports demonstrate this? Board of Audit Meeting has arrived Clerk/Treasurer Book Review If CTAS – C/T BOTH provide receipts registers to board 1. If Manual – C/T BOTH provide receipts list to the board 2. Board members select 3+ receipts Check 3. 1) that identification is the same on C/T records 2) that deposit can be noted on the appropriate bank statement If CTAS – C/T BOTH provide disbursements registers to the board 4. If Manual – C/T BOTH provide disbursements lists (likely the book) to the board Board members select 3+ disbursements to review and check 1) that identification is the same on C/T records 5. 2) transaction matches 3) check went through bank for approved amount Board members should also verify that 1) C/T have been balancing bank statements 6. 2) C/T have the same balance for each fund 3) C/T Schedule 1 matches (called statement of receipts, disbursements and balances in a manual system) 7. Best Practice: Board members to review the budget Budget Note: if you haven’t used budgeting, start with Road and Bridge Fund – easiest to begin. Related Anticipated expenses for next year Road projects, new town hall, new equipment Budget by Fund CTAS can provide a list for you. CTAS – Interim Financial Report by Account Previous year’s expenses by category number & Budget Reports work well for this 8. Board members to recommend the levy for the following year

Minnesota Township Insider • Winter 2020 13 Represented by Counsel Road Liability – As roads are the Reasonability – maybe the primary township ‘reasonability’ standard is un- infrastructure, reasonable. The elements of most town- “reasonable care” and “rea- ship’s time sonably safe” condition and posed in the first ques- money tion are often the is fo- most-disputed ques- cused tions. It’s because on “reasonability” is a main- difficult standard to taining apply. Reasonability those roads. There isn’t much credit has some objective limit given for good road conditions, but com- – some standards would be plaints seem to pour in from bad conditions. unfair or unrealistic to impose In those times of dispute, township boards on a town. For example, a pot- sometimes ask where their liability for road claims hole in a road is an unsafe condi- comes from. tion, but it is not fair to expect local governments to completely prevent them While some statutes affect townships’ liability for or to repair them before any harm could be done. injuries on roads, road liability claims are based Instead, its understood and accepted that roads will primarily on common law negligence. Common have potholes that will be repaired over time. In law negligence alleges that someone failed to per- other words, a road can have some potholes and form their duty and that they are responsible for still be considered in reasonably safe condition. the damages they caused. As far back as 1871, Min- nesota courts imposed on local governments a duty to keep their roads “in repair” and “in a safe, pass- able condition” that is “reasonably secure against all dangers of accident.” See Shartle v. City of Min- neapolis, 17 Minn. 308, 315 (Minn. 1871). Re- markably, courts use the same or similar language when considering road liability claims in our mod- ern time. Since this duty is well-established, townships should understand how they can be liable for injuries on their roads. This is an objectively unreasonable condition in which to leave a road open. There isn’t any real dispute that it must be The Standards: Whether a town is liable to a person for injuries closed and repaired. related to road maintenance, is based on the following two questions: At the same time, reasonability is partially subjec- tive because fair-minded people can disagree about 1. Did the township exercise reasonable care whether a condition was reasonable. For example, to keep the road in reasonably safe condi- imagine a township maintains a sharply curved tion? road, without any stop sign or other traffic control, and the curved part of the road is angled outward 2. Did the township have actual or construc- rather than inward. Had the angle on the curve tive notice of problem and enough time been inward, the road’s angle would act against the to address the problem? vehicle’s centrifugal (outward) force to keep it on the road. An outward angle though, acts to tip a vehicle over as the centrifugal force is not balanced. Most people would probably find the township at

14 Winter 2020 • Minnesota Township Insider by Steve Fenske, MAT Attorney When is a Township Liable? unless the government knew about the problem and had time to fix it. This ensures there is fairness in the expectations and duties upon the township. To Reduce Liability: To limit or reduce liability, the township board should regularly and carefully inspect their roads. Most towns already do this during their spring road tour and as needed through the year, but many could do a better job of documenting what they see and find. Whether this road is reasonably safe is open to debate, Photographs are a fantastic means of showing conditions and preserving a record. Since camera likely depending on the circumstances of an accident. phones are ubiquitous and dashboard cameras are fault for creating a dangerous condition. But the routinely under $100 to purchase, this method same group of people could change their opinions of noting conditions should become standard. depending on whether the town board did some- Adopting policies can also help townships use the thing to warn of the condition, whether the town- special governmental immunities they are granted ship performed proper maintenance, whether the to prevent liability even when it may otherwise vehicle operator was intoxicated or distracted, apply. MAT’s Sample Road Policies in the MAT In- whether the vehicle operator had driven the curve before, the weather conditions at the time, or any other of dozens of factors that affect reasonability. Those variables raise subjectivity into the question.

Notice – But Did You Know About It? The second question considers whether the township knew about the problem and had time to address it. Because townships cannot know the road conditions at all times, they can’t be expected to fix all problems before someone is damaged by them. When considering this element, courts ask whether the township knew about a problem, called actual notice, or should have known about the problem, called constructive notice. Constructive notice could be found if a defect exists for so long a time than a township exercising reasonable care should have discovered it. Constructive notice prevents towns from being apathetic about their maintenance duties.

Once a problem is found, the township still must Real MN frost boil with prybar showing depth! Towns can’t have enough time to address the problem. If a per- fix them right away, and the law recognizes that. But – towns son is injured because of a road washout hours af- should strive to fix them in ‘reasonable’ time. ter a bad storm, the township is unlikely to be held liable for the accident. In that event, the township formation Library may be a good start. The board may not be aware of the issue to begin addressing should consult experts like road engineers when it. Even if the township had been informed of the considering the safety of their roads. Besides hav- washout, they may not have been able to respond ing the advice of an expert, there are some immu- to the problem yet, whether that be by closing the nities from liability that are provided by relying road or having a maintenance crew start a repair. on the advice of experts. Overall, a little bit of pre- The pothole example is again useful. Local govern- vention goes a long way when it comes to road ments are generally not responsible for damage to liability claims and it should be within the reach a person’s vehicle caused by a pothole or frost boil of any town board. Minnesota Township Insider • Winter 2020 15 Insurance Insight

Grassroots by Jon Mocol, Manager of MAT Agency Government Winter Maintenance and Claims

As this article is being written, damaged the hose. So it is impor- we are starting to see the signs tant to make sure that all claims that we are entering the dread- are turned in on a timely basis, ed winter season for townships. and if it is suspected that the dam- While to most people the snow is age is due to a covered cause, that a beautiful sight, but to township MATIT be contacted prior to the officers it creates many challeng- repair being made, so the damage es. Some of those challenges are can be assessed at that time. simple such as keeping the town Here is our recommendation for hall shoveled and the walkways a proper claim reporting process. salted to prevent people from slipping and falling. Other sim- Claims reporting procedures: ple tasks that townships can do is 1. As soon as an accident or making sure that rugs and mats damage occurs, please call 1-800- are at the front doors to make sure 262-2864 to report the potential that no one slips and falls as they claim. Make sure that you docu- walk into the townhall. Also, it ment the incident with both writ- is important to remember things ten documentation and photos to like placing wet floor signs to ensure that people make sure we have all the facts. are aware of the risks of the dreaded winter. 2. Do not admit fault after an accident; wait for Some of the more difficult areas are keeping the the authorities to investigate the accident. roads plowed and salted and sanded. The chal- 3. Once the Claim has been called in to the lenges that are faced are making sure that the agency the Claims Administrator will be in trucks, graders and loaders are properly main- contact to instruct the township on the how tained and that they have all the appropriate the claim will be handled. safety features and lights are working. It is also 4. Make sure that everything surrounding the important to make sure that the pre-plowing and loss is well documented. If it is property or post-plowing checklists are completed (which is auto damage, make sure that you take pho- on the next page). This may seem elementary to tos of the damaged property as well as the some but, as we have seen in the last year, claims surroundings. that have been presented and denied were because they did not have the records to support that the When protecting your township from a loss, it is equipment was damaged while it was out moving important to make sure that you document things snow in the townships. Proper inspection of the very thoroughly. If you are looking at starting a township’s equipment will lead to safer equipment culvert replacement, make sure that you take pho- as well as making the equipment last longer. tos of the markings for the buried wires. That way Another issue that we have seen with townships we have the documentation for the markings in is the timing on when claims are turned in. The the event a cable is cut. earlier in the process of a potential claim the better job of adjusting the claim MATIT can do, which may result in the approval of a claim. The longer it takes a township to report the claim, the harder it is to see if there was damage that occurred from Jon Mocol’s Contact Information a covered cause. There was one township recently that turned in a claim extremely late and in trying [email protected] to adjust the claim, the parts that were damaged were already out of the repair shop, and the me- chanic could not remember if the damage was due Office Phone: 800-228-0296 to a maintenance issue or if there was a rock that

16 Winter 2020 • Minnesota Township Insider Daily Equipment

Grassroots Government InspectiOn Form 2020

Daily Equipment Inspection

Date: ______Township:______

Truck\Equipment Description ______

Ok Problem Ok Problem Ok Problem HEADLIGHTS SNATCH BLOCKS FUEL CAN(S)

STOP/TAIL/TURN LIGHTS WINCHES FIRE EXTINGUISHER

RADIATOR FLUID WHEEL LIFT TOW LIGHTS

OIL TOW CHAINS STROBES-ROTATORS LIGHTBAR

BATTERY T-HOOK, J-HOOK ASSEMBLIES WORK LIGHTS

FAN BELTS SAFETY CHAINS CLEARANCE LIGHTS

MIRRORS JACK STANDS JUMPSTART EQUIPMENT

PTO UNIT JACK FLARE-TRIANGLE-FLAGS

HORN V-ASSEMBLIES DOOR TOOLS/MANUAL

WINDSHIELD WIPERS TIE DOWN STRAPS-RATCHETS TOOL KIT

DEFROSTERS STEERING WHEEL LOCK LUG WRENCH SET

STEERING SCOTCH BLOCKS FLASH LIGHT

TRANSMISSION TRASH CAN FIRST AID KIT

CLUTCH SHOVEL/BROOM SAFETY VEST

PTO/THROTTLE CABLES PRY BAR RAIN GEAR

SPEEDOMETER\TACHOMETER HITCH(ES) GLOVES

PARKING BRAKE -BRAKE LOCK TOWING MANUAL

SERVICE BRAKES

2-WAY RADIO

BACK UP ALARM Body Damage:______

FUEL ______

FRAME ______

DRIVE LINE/U-JOINT ______

SUSPENSION ______

TIRES/PRESSURE

TIRE CHAINS OVERALL APPEARANCE : EXCELLENT GOOD POOR

EXHAUST/MUFFLER

MUD FLAPS OIL ADDED (QTS): ______FUEL ADDED(GALS): ______

HYDRAULIC HOSES, VALVES, LEVERS

LATCHES, DOOR CHECKS MISCELLANEOUS: ______

TOW SLING/TOW BAR ______

SLING STRAPS ______

WIRE ROPE ______

SHEAVES ______

Person Inspecting Unit ______

Minnesota Township Insider • Winter 2020 17 Advocate’s Account by Karl-Christian Johannessen, MAT Attorney What to do When there are Vacant Seats Sometimes a town of- With all this legalese out of the way, let’s look at some ficer must leave office examples of filling vacant seats. - it can be because of illness, moving, resigna- Example 1: John, a supervisor, moves to Florida tion, or any other rea- when he has 8 months left on his term. Since he is not son for a vacancy found a resident of the town, he is ineligible to serve as super- in Minnesota Statute § visor. The remaining supervisors and the clerk form an 351.02. There are two appointment committee and, at a properly posted public ways a vacancy can hap- meeting, they appoint a supervisor to fill that seat until pen, which, for clarity, I will give the names “mandatory” the next election. and “permissive,” even though these names do not ap- This first example is the most basic of vacancy prob- pear in the statute. lems. The elected official has less than one year left on their term, so the appointed officer only serves until the Mandatory Vacancies: Minnesota Statute § 351.02 next election (when the position would have been on the lists all the events leading to a “mandatory” vacancy and ballot anyway). Minn. Stat. § 367.03 subd. 6, discusses the appointment procedure. When appointing the clerk or treasurer, the Example 2: Kate, a town supervisor, resigns Decem- supervisors make the appointment. But when appointing ber 20th, 2019 to care for her sick spouse, before the end a new supervisor, the method changes. Rather than the of her term in 2022. The town has March elections, so supervisors appointing the officer, the remaining supervi- December 17th, 2019, is 84 days prior to the township sors and the town clerk must form an appointment com- election. The newly appointed supervisor will hold office mittee to appoint the new supervisor. The appointed su- until the election in 2021. In 2021, the seat will be on the pervisor must meet the same requirements as an elected ballot for the remaining 1 year of the term. supervisor, including: 21 years or older, resided in the The second example shows what happens when the va- town for 30 days, and an eligible voter. cancy is within 84 days of the next election. Because the Usually, the person appointed to a vacant seat will serve vacancy is too close to the next election, the appointed until the next election when the position is placed on the officer’s term will be longer than one year. At the very ballot for either the remainder of the original term or be- most, this period provides an appointed officer with just cause of natural expiration of the term. An exception to under a 1 year and 112-day term, but if this situation hap- the rule says that if there is a vacancy when it is too late pens, it is usually not much longer than a year. to put the position on the ballot, the appointed officer serves until the next election. Meaning that if at least one Example 3: Pete, an elected town treasurer, falls ill year remains on the term and the resignation is at least and misses board meetings. After the 3rd missed regular 84 days before the March elections or 112 days before the meeting, which is at least a 90-day absence, the board November elections, then the appointment will continue passes a resolution declaring the seat vacant and appoints until the following year’s election. This is confusing but a new treasurer. The new treasurer begins serving the re- there are examples below to help. mainder of Pete’s original term. Later, Pete, healthy again, asks for his old role back. At the next meeting, the board Permissive Vacancies: Permissive vacancies are must restore Pete to the position. governed by Minn. Stat. § 367.03, subd. 7, which arise This example details the permissive vacancy discussed because of inability or refusal to serve. This states that a in Minn. Stat. § 367.03, subd. 7, where an officer is un- vacancy of town office may be declared by the town board able or refuses to complete their duties. It allows removal when an officer is unable to serve in the office or attend of an inactive officer, but gives the person the chance to board meetings for a 90-day period. After the 90 days, the return when ready. town board may, by resolution, declare a vacancy to exist When a vacancy arises, look at Minn. Stat. § 367.03, and appoint someone to fill the vacancy for the remainder subd. 6 & 7, so that you can follow the correct procedure of the term. Contrary to the general rule, the appointed and determine how long the appointed supervisor may officer serves the remainder of the original term. How- remain in office. ever, the original member may be restored if they are able to resume duties and attend board meetings.

18 Winter 2020 • Minnesota Township Insider Township Advocacy by Leslie Rosedahl, Rosedahl Public Affairs Help Wanted!

The mission of Governor, Tim Walz, is a Democrat from Mankato the Minnesota As- and former U.S. Congressman. Every member of sociation of Town- the Minnesota House and Senate will be on the ships is, in part, to election ballot this November, and the election promote townships hangs heavily over members during session, par- through advocacy ticularly those in swing seats. efforts at the State Capitol in St. Paul. From February through May, the Minnesota As- In addition to our sociation of Townships will be providing easy and lobbyists, MAT has impactful opportunities to advocate to state legis- newly organized and is promoting opportunities lators: for township officers and residents to advocate 1. ADVOCACY EMAIL ALERTS: MAT will for our important priorities with state legislators. email township officers on timely topics, and Transportation funding, broadband funding, and ways to weigh in with legislators. annexation equality are some of our top issues in 2. MAT’S ADVOCACY WEBPAGE: https:// 2020. mntownships.org/alert is a one-stop-shop to find pre-written, customizable letters to Your voice and sharing your story are particu- legislators that automatically send to the larly important and impactful to our success. right House and Senate members – all without leaving home. Non-officers can also sign Minnesota’s 2020 Legislative Session will kick up to receive our advocacy alerts from this off on February 11 in St. Paul and largely focus on page. policy issues and the “bonding” bill – which funds 3. LEGISLATIVE & RESEARCH DAY AT THE state capital improvement projects. There will also CAPITOL: This is a terrific day (coming in be a small supplementary budget created to up- April) to educate and energize legislators for date the state’s two-year budget approved last year. our priorities. Stay tuned for more details The legislature is expected to adjourn mid-May. and registration. 4. DISTRICT LOBBY DAYS: In-person visits We have “divided government” in St. Paul. are easy, fun, and most effective. I hope to Democrats control the MN House (74-54 votes) see you at the Capitol this year! I’ll be pre- with some special elections pending to replace scheduling meetings, preparing supplies, members who have recently resigned. Republi- and making sure the day is most effective cans lead the MN Senate (currently 35-32). Our and efficient for everyone’s travels to St. Paul. Your engagement in advocacy is vi- tal to educate and influence legislators, and as local-elected officials, your voice is incredibly impactful. It’s my job to make it as easy as possible. Please be in touch with your ideas and feedback, and I hope to see you in St. Paul! Leslie Rosedahl Rosedahl Public Affairs 651.353.1818 [email protected] P.S. Don’t forget to follow the MAT on Facebook at: www.facebook.com/ MNAssociationofTownships and on Twitter at https://twitter.com/MN- Townships Minnesota Township Insider • Winter 2020 19 ______Capitol Corner_____ by Shep Harris, Fredrikson & Byron, P.A. Digging in on Our Priorities Welcome to legislation protecting Towns which enter into 2020: a year of Orderly Annexation Agreements with neighboring many elections, entities. The Supreme Court decision is behind us politics and the now, and we have been working over the interim state legislature’s to educate key legislators. “short session.” That means the Elections will also garner a lot of attention this state legislature year, especially when it comes to election security. will gavel back into MAT will work with the Secretary of State and session on Feb. 11 and move quickly to pack in key legislators on adequate funding and right- as much work as possible before adjournment in sized policies to improve and/or protect the Town mid-to-late May. election process.

But it won’t be easy. Pressure is on the House But none of this can be accomplished without DFL and Senate Republican majorities to satisfy the active involvement of YOU! MAT needs Town their primary constituencies in an election year, officers to strongly urge your legislators and the which means much potential gridlock. Add to that Governor – many times between now and end of a smaller than expected budget surplus and there the legislative session -- to support and champion is some thinking that the only bills of significance the needs and desires of our Towns. to reach the Governor’s desk will be a bonding bill and a tax bill. And finally, members of the MAT Government Relations Team – including your lobbyists at Within this political environment, MAT Fredrikson & Byron – are regularly monitoring continues to advance its legislative priorities: and reacting to any legislation that may impact Towns. We are at the State Capitol scouring • Transportation funding several thousand bills that have been introduced • Annexation and watching hundreds of committee hearings • Elections over the two-year biennium. If there is legislation that is of interest to your Township or a crucial As the condition of our roads and bridges conversation you have had with your legislators, continues to decline, necessary transportation please let us know so we can speak with one, funding is a high priority for many at the State coordinated voice. Capitol. One way or another – via constitutional amendment, creation of a dedicated fund for For more information about the MAT legislative Towns, bonding dollars or other means, MAT is priorities and how to engage your legislators on working to get $20 million dedicated specifically these and other efforts, don’t hesitate to contact for Town roads and bridges. MAT Executive Director David Hann at dhann@ mntownships.org or 800-228-0296. Thank you On Annexation, MAT continues to push for for all of your efforts to best serve your residents!

Minnesota Township Insider • Winter 2020 21