AB 768

This bill allows certain towns to designate themselves as “urban towns,” a

designation that would limit the effect of extraterritorial zoning and plat approval

and annexation by other municipalities. The bill also requires local governments to

allow connection, with certain limited exceptions, to their water or sewerage systems

by certain other local governments.

Under the bill, a town that meets all of the following may designate itself as an

“urban town” upon approval by the town meeting:

1. The town has a population of more than 5,000 and a population density of

750 persons in any one square mile.

2. The town provides law enforcement service.

3. The town has enacted a subdivision ordinance.

4. The town has enacted a zoning ordinance or is subject to county zoning.

Under the bill, a town that has been designated as an urban town is not subject

to extraterritorial zoning or extraterritorial plat approval by a neighboring city or

village. Also under the bill, certain significantly developed territory of an urban town

may not be annexed to a city or village except by unanimous approval of all of the

property owners of the property to be annexed. The territory covered by this

limitation is territory in the urban town that is within three miles of the corporate

limits of a first, second, or third class city, or one and one-half miles of a fourth class

city or a village if 1) the territory has an average of more than 30 housing units per

quarter section or 2) the territory has an assessed value, more than 25 percent of

which is attributable to existing or potential mercantile, manufacturing, or public

utility uses.

The bill also requires certain governmental units (cities, villages, and sanitary

or utility districts located in cities and villages) to allow connection with limited

exceptions to their sewer or water systems by urban towns (urban towns and

sanitary or utility districts located in urban towns), and vice versa. Specifically,

under the bill, an urban town may request the extension or connection of water or

sewer service from an adjacent governmental unit by filing a written request for

connection. The governmental unit may disapprove a request only if its water or

sewerage system does not have sufficient capacity to serve the area that is the subject

of the request as of the date of the filing. Likewise, a governmental unit may request

an extension or connection to the sewer or water system of an urban town and the

request must be approved unless the system does not have sufficient capacity to

serve the area covered by the request. The bill also provides that a landowner may

request a lateral connection to the water or sewerage system of a governmental unit

or urban town. A request of this sort may also be denied only upon a determination

of insufficient capacity.