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Question of the Month

February  2006

How do states allow cities, villages or municipalities to incorporate?

Laws regarding city incorporation are complex and vary widely, but most states use one of several approaches — a provision in law, approval by the legislature or voter approval. Here are some examples from the Midwest:

• In Indiana, only towns with populations over 2,000 may be changed into cities. For this to be done, at least 10 percent of the voters in the town’s last election for secretary of state must sign a petition asking their local legislative body to adopt a resolution stating that the town wishes to become a city. Once the resolution passes, the question is posed to the voters in an election. If there is a majority of "yes" votes, the town will become a city.

• Iowa law states that 25 percent of those who voted in the last city election must sign a petition asking the city council to pose the question to residents. An election must be held within 60 days after the posting of a valid petition.

• In Minnesota, the incorporation process can begin in two ways: a petition signed by at least 100 property owners that is submitted to the town board or passage of a resolution by the board. Hearings are then held that include a review of the impacts of incorporating, such as the fiscal impact on the area and neighboring local governments, the effect on school districts, and transportation and environmental issues. After the hearings, the state Office of Long-Range Planning makes a decision that could include full incorporation or a recommendation that the area consider annexation by a neighboring city.

• Ohio requires that a petition be signed by 51 percent of voters within the area wishing to incorporate. The area must be at least 2 square miles in size and have a population of at least 800 people per square mile. A hearing is held within 90 days after the petition is presented to the county board. If the board grants the petition, the incorporation becomes effective as soon as the record is filed with the secretary of state.

• South Dakota’s incorporation petition must be signed by 25 percent of qualified voters who are registered in the proposed municipality or landowners in the proposed municipality who are also registered voters in the state. The petition should include details such as an area map and population. The county board then decides whether the petition will be placed on the ballot.

For more information on this or any other public policy issue, please call 630-925-1922 or complete the online form for research services.

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