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HomeMy WebLinkAbout7B2 - Street Overlay Definition AGENDA #: PREPARED BY: SUBJECT: DATE: INTRODUCTION: BACKGROUND: DISCUSSION: 7 B-2 RALPH TESCHNER FINANCE DIRECTOR CONSIDER APPROVAL OF ASSESSMENT POLICY REVISIONS AND ORDINANCE 95-18 AMENDING SECTION 9-1-6 OF THE PRIOR LAKE CITY CODE NOVEMBER 20, 1995 The City Council requested Staff to incorporate certain revisions within the context of the Assessment Policy. The purpose was to provide clear interpretation on how the policy would apply in certain instances. Attached is a list of the recommended amendments which Staff believes addresses the issues and concerns of the Council. Much discussion in the past has revolved around what appropriate level of tax subsidy should be applied in our street overlay/reconstruction program. Currently our policy is the present 60/40% method of assessing 60% of the cost to the property owner and the remaining 40% picked up by a general ad valorem property tax levy. This practice has been followed since 1985 when it was adopted as an ordinance. The reason that it was placed in ordinance form was that its continued existence would be more assured as opposed to recommended policy. The idea was that in order to be fair to those property owners of the earlier overlay projects the percentage should remain consistent over time. Also it would not be fair to the general taxpayer if their tax contribution would change from year to year. These principals were again discussed and reaffirmed by the Council during the Prior South hearings of last year whereby consistency and equity were considered to be very important elements of the street rebuilding program. Other than continuing the benefited property owner assessment on the 60/40% basis the Council directed Staff to modify the Assessment Policy to include the following provisions; I. Provide clarification with respect to how corner lots are affected under multiple projects. 2. Revise the definition of Street Overlaying under Section 9-1-6 (B) of the City Code to include street reconstruction and change Section III D. Street Resurfacing to also include reconstruction. 3. Determine which project improvements are subject to 100% assessment versus those those that fall under the 60% application. 16200 Eagle Creek Ave. S.E., Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER Tt Under SECTION II - Methods of Assessment the language should be amended (in bold) as follows; C 7. Corner Lots. (page 8) a.) Residential Zoned Corner Lots - The adjusted front footage will be assessed on the short side. A 150 foot lot allowance will apply along the adjacent side street. Any remaining frontage will constitute an additional assessment. The short side will be assessed in those cases where the improvement may exist on one side only as well as for improvements abutting on both sides. Such corner lots shall only be assessed once when the improvements abut the addressed side. Under SECTION III - Improvement Type Application the language should be amended (in bold) as follows; D. Street Resurfacing (page 11) Street resurfacing is commonly known and referred to as street overlaying whereby a new bed of road material such as bituminous is installed over an existing paved road to a specific thickness or in the case where the bituminmous pavement has deteriorated to such a condition that complete reconstruction is necessary. (If street construction is done over a non-bituminous surface i.e., gravel, sand etc. then the assessment shall be for 100% of the total project cost). Street overlay and curb improvements of presently paved streets in the City of Prior Lake shall be assessed at (60%) of the total project cost against the benefited properties or a unit charge as determined by the City Council. The remaining (40%) shall be recovered by means of the general ad valorem property tax paid by the entire community. Assessments. All assessments shall be on a current basis and shall not be subject to a maximum footage or deferred classification. Under SECTION IV - Assessment Conditions the following section should be added; F. Assessment Cost (page 15) All such improvements described under Section IV (A) with the exception of #4 (Street Resurfacing) shall be assessed 100% of the cost of improvements not to exceed the amount of benefit to the property at the time of original installation. Replacement of such utility improvements will also be subject to 100% assessment with the exception of #4 (Street Resurfacing). Because the description of "Street Overlay" is contained in the City Code the attached Ordinance 95-18 amending Section 9-1-6 of the Prior Lake City Code contains the new definition of "Street Overlay" to include street reconstruction. T T ALTERNATIVES: The following alternatives are available for Council consideration: 1. Approve the amended language within the Assessment Policy as proposed and adopt Ordinance 95-18. 2. Approve the amendments to the Assessment Policy subject to specific Council revisions. 3. Delay action on the Assessment Policy due to request by Council for further information. RECOMMENDATION: Staff would recommend Alternative 1. We believe that the amendments are responsive to the Council concerns and provide the clarity desired by the City Council for application to future assessment proceedings. ACTION REQUIRED: REVIEWED BY: A9S08.WRT ,. r 'A950S.WRr CITY OF PRIOR LAKE ORDINANCE NO. 95-18 AN ORDINANCE AMENDING SECTION 9-1-6 OF THE PRIOR LAKE CITY CODE The Council of the City of Prior Lake does hereby ordain: Section 9-1-6 (B) of the Prior Lake City Code is hereby amended to read as follows: 9-1-6: (B) STREET OVERLAYING: A street improvement whereby a new bed of road material such as bituminous is installed over an existing bituminous paved road to a specific thickness or complete road reconstruction if the condition of the existing bituminous paved road has deteriorated to a state whereby repair is no longer determined to be economically feasible. This ordinance shall become effective from and after its passage and publication. Passed by the City Council of the City of Prior Lake this 20th day of November, 1995. City Manager Mayor Published in the Prior Lake American on the 25th day of November, 1995. Drafted by: Ralph Teschner Finance Director City of Prior Lake 16200 Eagle Creek Avenue SE Prior Lake, MN 55372 - ~