HomeMy WebLinkAbout7A - Special Assessment Hearing
MEETING DATE:
AGENDA #:
PREPARED BY:
SUBJECT:
DISCUSSION:
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CITY COUNCIL AGENDA REPORT
OCTOBER 21, 2002
7A
SUE MCDERMOTT, CITY ENGINEER
SPECIAL ASSESSMENT PUBLIC HEARING FOR 2002 IMPROVEMENT
PROJECT #02.11 GREEN OAKS TRAIL, PIXIE POINT CIRCLE, LORI ROAD,
AND ESTATE AVENUE IMPROVEMENTS AND CONSIDER APPROVAL OF A
RESOLUTION ADOPTING THE ASSESSMENT ROLL FOR THE PROJECT.
Historv
At its regular meeting of September 16, 2002, the Council approved Resolution 02-
155, which declared the cost to be assessed and ordered the preparation of the
assessment roll for Green Oaks Trail, Pixie Point Circle, Lori Road, and Estate
Avenue Improvements. Also Resolution 02-156 was approved establishing the date
of the Assessment Hearing as October 21, 2002.
Current Circumstances
All benefiting property owners have been mailed a Statement of Special
Assessments, which included information pertinent to their property such as the total
proposed assessment amount and the assessment rate. The Notice of the Special
Assessment Hearing was published in the newspaper on September 28th and
October 5th, 2002.
The total project cost for the improvements is $1,778,892.00. It is proposed to be
funded through tax levy, trunk reserve funds, water quality funds, enterprise funds
and assessments. The Assessment Review Committee recommends that $718,978
41 f of the total project cost be paid though trunk reserve, water quality and enterprise
j'/\ 51 I O<b, A funds. The remaining project cost of $1,059,914 would be paid for by tax levy
!pn J _ p}rUf $635,949 (60%) and special assessments against benefiting property owners
Jv 5}W'1~';) - -I \ $423,965 (40%) in accordance with City policy. There are 83 benefiting properties in
(P/~O( ~f) the project. The project is being assessed on a unit basis.
The assessment term is ten (10) years for paving. Added to the first installment
(2002) will be an additional 71 days of interest, which accounts for the remainder of
2002 following the Assessment Hearing. An interest rate of 8% will be charged in
accordance with the City Assessment Policy.
l~OOJ:agle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
T
T
Under state statute, the City may only assess a property up to the amount the
property is specially benefited by the public improvement. Special benefit is defined
as the amount the property value is increased by the Public Improvement.
The Property owners who believe that the proposed assessment exceeds the
special benefit have a right to appeal their assessments as per Minnesota Statutes
Chapter 429. Written objections must be signed and filed with the City Manager prior
to the Assessment Hearing or presented to the Council at the Hearing. Within 30
days of the hearing, the owner must also file the appeal in District Court. No appeals
were received at the time this report was prepared. We have apprised each of the
property owners of our Deferred Assessment Program.
Issues
The Assessment Review Committee has evaluated the proposed assessments and
proposes the following findings and recommendations to the City Council:
The Assessment Review Committee recommends that the Unit Assessment method
be used for the project. The proposed unit rate of assessment for street/storm
sewer is $5,108.00 per unit. The Assessment Review Committee believes that the
special benefit received by each of the affected properties exceeds the proposed
assessment.
The Assessment Review Committee recommends the unit rate of assessment be
used for this project. The method is appropriate because the lots in the area are of
similar size and/or value and all of the properties receive the same benefit.
Summary
The Council should receive public input and then close the public hearing. If certain
issues need additional study, those issues could be referred to the Special
Assessment Committee for evaluation and recommendation. If all questions were
answered at the public hearing, it would be appropriate to approve the attached
resolution. Statutes require that special assessments must be certified to the County
by November 30th. Since property owners must be allowed 30 days to payoff their
assessments interest free, the assessment roll must be adopted prior to November
1 J 2002. If the council wishes to defer action on this item it would have to schedule a
special City Council meeting before November 1.
FINANCIAL IMPACT: The following is a summary of the financing of the improvements.
Funding Source Project #02-11
Assessments. $423,965
T ax Levy. $635,949
Trunk Reserve $220,400
Water Qualitv $80,000
Enterprise Funds $418,578
Project Total $1,778,892
02IMPAH
ALTERNATIVES:
RECOMMENDED
MOTION:
02IMPAH
* The numbers shown above include 28% indirect costs for design, survey, inspection,
administration, and financing.
The focus of tonight's hearing is whether the affected properties have been specially
benefited equal to or greater than the amount of the proposed assessment for each
property, and whether the assessment has been calculated accurately and in
accordance with City Assessment Policy.
The alternatives are as follows:
1. Approve a resolution adopting the assessment roll as submitted.
2. Approve a resolution subject to Council approved changes.
3. Close the hearing and direct the Special Assessment Review Committee to examine
issues or concerns raised at the hearing and provide a recommendation for Council
action at a special meeting.
A motion and second to adopt a Resolution Adopting Assessment Rolls for Project
02-11 Green Oaks Trail, Pixie Point Circle, Estate Avenue and Lori Road
Improvements.
T
T...
RESOLUTION ~ / 1r
RESOLUTION ADOPTING ASSESSMENTS FOR PROJECT #02.11 FOR
GREEN OAKS TRAIL, PIXIE POINT CIRCLE, LORI ROAD AND ESTATE AVENUE IMPROVEMENTS
MOTION BY:
SECOND BY:
WHEREAS, pursuant to proper notice duly given as required by law, the Council has met and heard and passed
upon all objections to the proposed assessments for Project 02-11 Green Oaks Trail, Pixie Point
Circle, Lori Road and Estate Avenue Trail Improvements.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA:
1. Such proposed assessment, a copy of which is attached hereto and made part hereof, is hereby accepted
and shall constitute the special assessment against the lands named therein, and each tract of land
therein included is hereby found to be benefited by the proposed improvement in the amount of the
assessment levied against it.
2. Such assessments shall be payable on an equal principal method extending over a period of ten (10)
years for paving. The first installment shall be the annual principal plus interest calculated from the Public
Hearing date to the end of this year pi twelve months of the next year and shall bear interest at the rate
of eight (8) percent per annum fro the e of adoption of this assessment resolution. To the first
installment shall be added seventy-s en (71) d of interest on the entire assessment from the date this
resolution is adopted to December 31, To ach subsequent installment when due shall be added
interest for one year on all unpaid installments.
3. The owner of any property so assessed may, at any time prior to certification of the assessment to the
County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of the
payment, except that no interest will be charged if the entire assessment is paid within thirty (30) days, and
the individual may at any time thereafter, pay to the City's Finance Director the entire amount of the
assessment remaining unpaid, excepting the installment portion appearing upon the current year's
property tax statement.
4. The Finance Director shall forthwith transmit a certified duplicate of this assessment to the County Auditor
to be extended on the property tax lists of Scott County. Such assessments shall be collected and paid to
the City in same manner as other municipal taxes.
5. The final project cost apportionment has been determined to be $1,778,892.00 of which $635,949.00,
$220,400.00, $80,000.00, and $418,578.00 shall be paid from Tax Levy, City's Trunk Reserve Fund,
Water Quality Fund, and Enterprise Fund, respectively, and $423,965.00 to be assessed to the benefited
Jz~1AQ,,~agle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
---.--~
property owners at the assessment rate of $5,108.00 per unit as per the attached assessment roll.
Passed and adopted this 21st of October, 2002.
YES
NO
HauQen 1\ HauQen
Gundlach \ Gundlach
LeMair \ LeMair
Petersen \ Petersen
Zieska \ Zieska
\
{Seal}
Frank Boyles, City Manager
02IMP AHpixie
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