HomeMy WebLinkAbout4C - Assessment Policy Charges
CONSENT AGENDA #: 4 (c)
PREPARED BY: RALPH TESCHNER FINANCE DIRECTOR
SUBJECT: CONSIDER APPROVAL OF SPECIAL ASSESSMENT POLICY
CHANGES
DATE: MARCH 7,1994
INTRODUCTION:
The purpose for this agenda item is for the City Council to approve those
changes discussed during the course of the assessment policy workshop
conducted on 2/28/94.
BACKGROUND:
In 1988 the City Council established an Assessment Review Committee to
develop a written assessment policy that would guide the City during its
assessment proceedings on public initiated improvements. The formal
"Assessment Policy" was adopted on February 21, 1989. Since that time it
has been modified on three occasions, with the most recent amendment
approved on 10/19/92.
DISCUSSION:
During the context of the workshop discussion, the following amendments
were agreed to per Council consensus:
. Section III - G. (p.l1) Water/Sewer trunk acreage rate
increased from $27 SO/acre to $3000/acre per 1994 adopted
fee schedule.
. Section III - I. (p.13) Collector street trunk street trunk
acreage rate increased from $700/acre to $1250/acre and
collector building pelmit fee increased from $250 to $350.
. Section III - I. (p.13) Developer shall dedicate up to a
maximum of 60 feet of right-of-way and the City will
reimburse any right-of-way in excess of 60 feet at a current
rate cost of $8,000/acre.
. Section IV - A. (p.14) Minimum interest rate floor of 8%.
. Section V - H. (p.17) Elimination of councilmember
participation on assessment review committee.
The present 60/40% frontage method of assessing street reconstruction
improvements was reaffIrmed by the Council with no appraisal
requirement necessary. Assessment hearings are to be conducted shortly
after the project bid opening. Upon the expiration of the 30 day appeal
period following the assessment hearing, bid award will occur unless bids
al'e excessive or the extent of appeals is significant. Assessment payments
4629 Dakota 51. 5.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
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would not be accepted until bid award. This would effectively extend the
interest free time period for prepayments by approximately an additional
30 days.
ALTERNATIVES:
The following alternatives are available to the City Council:
1. Approve these special assessment policy changes as outlined.
2. Modify these changes per Council consensus.
RECOMMENDATION: Staff would recommend that all amendments be incorporated into the
City's formal written assessment policy as submitted.
ACTION REQUIRED: A motion as part of the consent agenda to approve these specific
amendments to the City of Prior Lake's "Assessment Policy for Public
Initiated Improvements".
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CITY OF PRIOR LAKE
ASSESSMENT POLICY
FOR PUBLIC INITIATED IMPROVEMENTS
Adopted by City Council
February 21, 1989
Amended by City Council;
February 5, 1990
April 16, 1990
October 19, 1992
March 7, 1994
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ASSESSMENT POLICY STATEMENT
Table of Contents
PSection I.
~
General Policy Statement.............. .............. .................. ...... ............ 3
Section II.
Methods of Assessments .................. .......... .............................. .......5
Section III.
Improvement Type Application .................................................... 11
Section IV.
Assessment Conditions................................................................. 14
Section V.
Supplemental Assessment Policy Guidelines................................ 16
Section VI.
Definitions ................................................................................... ..18
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City of Prior Lake
ASSESSMENT POLICY STATEMENT
FOR PUBLIC INITIATED IMPROVEMENTS
SECTION I - General Policy Statement
The purpose of this assessment policy is to determine a fair and equitable manner of recovering
and distributing the cost of public improvements. The procedures used by the City of Prior Lake
("City") for levying special assessments are those specified by Minnesota Statutes, Chapter 429,
which provide that all or a part of the cost of improvements may be assessed against benefiting
properties.
While establishing the authority by which communities may proceed to construct public facility
projects, the statutes provide no guide as to how costs aloe to be apportioned. Therefore, it is the
responsibility of the local legislative body to establish a fair and reasonable method by which
properties will be assessed. '
Three basic criteria must be satisfied before a particular parcel can be validly assessed. They are:
A.) The land must have received special benefit from the improvement.
B.) The amount of the assessment must not exceed the special benefit.
C.) The assessment must be unifOlm in relation to the same class of property within
the assessment area.
The test for determining the validity of a special assessment is whether the improvement for
which the assessment was levied has increased the market value of the property against which
the assessment operates in at least the amount of the assessment. It is impOltant to recognize that
the actual cost of extending an improvement past a pa11icular parcel is not the determining factor
in detelmining the amount to be assessed. However, in most cases the method for determining
the value of the benefit received by the improvement, and therefore the amount to be assessed,
shall be the cost of providing the improvement, as long as the cost does not exceed the increase
in market value of the property being assessed. The entire project shall be considered as a whole
for the purpose of calculating and computing an assessment rate. In the event City staff has
doubt as to whether or not the costs of the project may exceed the special benefits to the
property, the City Council should obtain such appraisals as may be necessary to support the
proposed assessment.
The project cost shall include, but not be limited to the following:
a) Construction Cost
b) Engineering Fees
c) Administrative Fees
d) Right of Way Acquisition/Condemnation Costs
e) Legal Fees
f) Capitalized Interest
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Initiation of public improvement projects can be undertaken by any of the three following ways.
A. Direct Action of the City Council - The City Council may decide an improvement is
necessary or desirable for the community.
B. Property Owner Petition - The City Council may decide on an improvement after
receiving a petition for said improvement by the owners of not less than thirty-five
percent (35%) in frontage of the real property abutting on the streets named in the
petition as the location of the improvement. In addition, all owners of real property
abutting upon any street named as the location of any improvement may petition the City
Council to construct the improvement and to assess the entire cost against their property.
In the latter case, the City Council may. without a public hearing, adopt a resolution
determining such fact and ordering the improvement.
C. Developer Request - A developer who is the owner of all the property within the
proposed subdivision may petition the City Council to construct the improvement and to
assess the entire cost against the developer's property pursuant to Minnesota Statutes
Chapter 429. In such event, the City may, without a public hearing, adopt a resolution
determining such fact and ordering the improvement. However, a developer's agreement
shall be negotiated and executed prior to said authorization.
The City must recover the expense of installing public improvements, if undertaken, while
ensuring that each parcel pays its fair share of a project cost in accordance with these assessment
guidelines. While there is no petfect assessment policy, it is important that assessments be
implemented in a reasonable, consistent and fair manner. There may be exceptions to the
Assessment Policy or unique situations or circumstances which may require special
consideration and discretion by City staff and the City Council.
The Assessment Policy statement, in blief summary, consists of five main sections addressing
purpose. method of assessment, improvement type and correlating application, assessment
conditions and a supplementary guide section. A glossary section, devoted to specialized terms
and definitions, is included as an index. The Assessment Policy is intended to serve as a guide to
a systematic assessment process for the City of Prior Lake.
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SECTION II - Methods of Assessments
The nature of an improvement determines the method of assessment. The objective is to choose
the assessment method which will arrive at a reasonable, fair and equitable assessment which
will be uniform upon the same class of property within the assessed area. The most frequently
recognized assessment methods are: the unit assessment, the front footage assessment and the
area assessment. Depending upon the individual project, anyone or a combination of these
methods may be utilized to arrive at an appropriate cost distribution. City staff will consider all
methods and weigh their applicability to the project. A description of each assessment and its
corresponding policy application is presented. Separate sections will identify the appropriate
matchup of method with a specific type of project and analyze why each is generally used.
A. Unit Assessment A unit assessment shall be derived by dividing the total project cost by
the number of Residential Equivalent Density (RED) units in the project area. A RED
unit is defined as a single family residential unit. All platted and unplatted property will
be assigned RED unit values equivalent to the underlying zoning. When the existing land
use is less than the highest and best permitted use, the Council may consider the current
use as well as the full potential of land use in determining the appropriate number of RED
units. Otherwise, the following RED chart will apply on a per unit basis, subject to
adjustment by the Council for any inequities:
Single Family
Duplex
Condominium
Multifamily
Townhouse
Commercial
Industrial
1.00 RED
1.00 RED
0.80 RED
0.80 RED
1.00 RED
RED units = SAC units
RED units = SAC units
The unit approach has proven to be the best method in those instances whereby the
improvement largely benefits everybody to the same degree and the cost of the
improvement is not generally effected by parcel size.
B. Area Assessment The assessable area shall be expressed in terms of the number of acres
or the number of square feet subject to assessment. When determining the assessable
area, the following considerations will be given.
I. Ponding Assessment Consideration. - Lakes, ponds and swamps may be
considered part of the assessable area of a parcel. However, the property owner
has the option of providing a stOlm water ponding easement to the City for the
land under the lake, pond or swamp if integrated into the storm water
management system. If such ponding easement is accepted based upon its
functional integration into the stOlm water management system, a reduction in
area equal to the area of the easement for the lake, pond or swamp will be
subtracted from the gross acreage assessment of the parcel. Lots utilizing a
ponding area for the purpose of density credit shall be charged for that area within
the portion of the easement necessary to meet minimum lot standards.
2. Road Right-of-Way Assessment Consideration. - Up to twenty percent (20%)
of the gross acreage may be deducted for street right-of-way purpose within
unplatted parcels of five (5) acres or more depending upon the parcel
configuration. Parcels less than five acres may not qualify and may be assessed
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full acreage. The reason for this size restriction is that, in most instances, parcels
of less than five acres cannot support an internal road system.
3. Park Dedication Assessment Consideration. - When park land is dedicated as
part of a residential development, as required by the Park Comprehensive Plan,
the developer shall not be assessed an acreage charge on the portion of land
dedicated.
C. Front Foota~e Assessment The actual physical dimensions of a parcel abutting an
improvement (ie., street, sewer, water, etc.) shall NOT be construed as the frontage
utilized to calculate the assessment for a particular parcel. Rather, an "adjusted front
footage" will be determined. The purpose of this method is to equalize assessment
calculations for lots of similar size. Individual parcels by their very nature, differ
considerably in shape and area. The following procedures will apply when calculating
adjusted front footages. The selection of the appropriate procedure will be determined
by the specific configuration of the parcel. All measurements will be scaled from
available plat and section maps and will be rounded down to the nearest foot dimension
with any excess fraction deleted, Categorical type descriptions are as follows:
1.) Standard Lots
2.) Rectangular Variation Lots
3.) Triangular Lots
4.) Cul-de-sac Lots
5.) Curved Lots
6.) In'egularly Shaped Lots
7.) Corner Lots
8.) Flag Lots
9.) Double Frontage Lots
10.) Large Tracts
The ultimate objective of these procedures is to arrive at a fair and equitable distribution
of cost whereby consideration is given to lot size and all parcels are comparably assessed.
1. Standard Lots. In this instance, the adjusted front footage for rectangular lots will be the
actual front footage of the lot. The frontage measured shall be the lot width at the front
lot line.
Adj. Front Footage
EXAMPLES
Lot A-50'
Lot B - 90'
2. Rectan&ular Variation Lots. For a lot which is approximately rectangular and uniform in
shape, the adjusted front footage is computed by averaging the front and back sides of the
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lot. This method is used only where the divergence between front and rear lot lines is 20
feet or less.
Adj. Front Footage
EXAMPLES
Lot A - 100'
Lot B - 75'
3. Triangular Lots. For a triangular shaped lot, the adjusted front footage is computed by
averaging the front and back lot lines. The measurement at the back lot width shall not
exceed a maximum distance in depth of 150 feet.
Adj. Front Footage
EXAMPLES
Lot A - 70'
Lot B - 85'
Lot C - 60'
4. Cul-de-sac Lots. The adjusted front footage for those lots that exist on cul-de-sacs will
be calculated at the midsection of the lot at the most reasonably defined and determinable
position. This line will be computed by connecting the midpoints of the two side lot
lines. Or, if the lots are similar in nature and configuration, a common lot width may be
assigned based upon an evaluation of typical lots within the subdivision.
Adj. Front Footage
EXAMPLES
Lot A - 75'
Lot B - 110'
Lot C - 80'
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5. Curved Lots. In certain situations such as those where lots are located along meandering
trail system su'eets, road patterns create cUlVilineal frontages. In such instances, the
adjusted front footage will be the width of the lot measured at the midpoint of the shortest
side lot line.
Adj. Front Footage
EXAMPLES
Lot A - 70'
Lot B - 90'
Lot C - 150'
6. lrre~ularly Shaped Lots. In many cases, unplatted parcels that are legally described by a
metes and bounds description, are irregular and odd shaped. The adjusted front footage
will be calculated by measuring the lot width at the 25 foot building setback line.
Adj. Front Footage
EXAMPLES
Lot A - 115'
Lot B - 140'
Lot C - 125'
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7. CornerLots.
a. Residentially Zoned Corner Lots. The adjusted front footage will be assessed
on the short side. A 150 foot side lot allowance credit 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.
Adj. Front Footage
EXAMPLES
Lot A - 95'
Lot B - 225'
b. Commercial & Industrial Zoned Corner Lots. No allowance relief will be
granted because of the higher inherent property value associated with improved
traffic frontage and greater visibility along business district and industrial park
intersections. The adjusted front footage calculation shall be the entire frontage
measured along the setback line compIising the building envelope.
Adj. Front Footage
EXAMPLES
Lot A - 280'
LotB - 390'
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8. Flae Lots. Properties which utilize a narrow private easement or maintain ownership of
such access to their property exceeding a minimum length of 125 feet, thereby having a
small frontage on a street, will be assigned an adjusted front footage of 80 feet. This
dimension is consistent with the subdivision ordinance which prescribes such length as a
minimum lot frontage along a public roadway. The adjusted front footage for flag lots
whose driveway access is under 125 feet will be measured at the building setback line
from the access terminus.
Adj. Front Footage
EXAMPLES
Lot A - 80'
Lot B - 90'
9. Double Frontage Lots. If a parcel, other than a corner lot, comprises frontage on two
streets and is eligible for subdivision, then an adjusted front footage assessment will be
charged along each street. For double frontage lots lacking the necessary depth for
subdivision, a single adjusted front footage only will be computed.
Adj. Front Footage
EXAMPLES
Lot A - 220'
Lot B - 80'
10. Large Tracts. The fIrst 150 feet for oversized residential parcels having large frontages
will be currently assessed" Remaining excess frontage will be deferred for a period of fIve
years to allow for planned and orderly development of the property. During the fIve year
period simple interest will accrue at the rate established at the project assessment
hearing. The defelTed assessments will automatically be called down and currently
certifIed on the property tax rolls upon hal"dshell approval by the City Council.
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SECTION III . Improvement Type Application
A. Brid~e Installation. The project cost of a bridge is confined to a very limited and
restricted area. The benefit conferred to property owners bears little relationship to
property size. Rather the benefit is provided on an equal and proportionate basis to the
affected property owners. Therefore the unit assessment basis will be used as the most
representative and cost effective method of distribution.
B. SidewalklBike Path Installation. Although construction normally occurs only on one
side of the street, channelization and safety of pedestrian traffic is regarded as an overall
neighborhood benefit. Therefore it shall be the policy of the City to assess concurrently
both sides of a street on an adjusted front footage basis.
C. Street. Curb and Gutter. The cost of the original installation of a bituminous mat upon an
existing gravel base shall be recovered by the adjusted front footage method. The front
footage rate shall be determined by dividing the project cost by the total number of
adjusted front feet in the project area.
D. Street Resurfacin~. 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. Street overlay and curb improvements of
presently paved streets in the City of Prior Lake shall be assessed at sixty per cent (60%)
of the total project cost against the benefiting properties. The remaining forty per cent
(40%) shall be recovered by means of the general ad valorem property tax paid by the
entire community. Assessments shall be determined by the adjusted front footage method.
All assessments shall be on a current basis and shall not be subject to a maximum footage
or deferred classification.
E. Sealcoatin~ Street Improvements. Sealcoating shall be treated as a general maintenance
expense which shall be one hundred per cent (100%) supported by taxes through a special
levy spread over the entire City. No assessments will be associated with sealcoating.
F. Sanitary Sewer & Water Lateral Improvements. All water and sewer lines, regardless of
size or designation, are considered as laterals to adjacent property. Lateral lines are
normally not larger than eight inches in diameter in most residential areas. For purpose of
specific benefit determination, the lateral cost of sewer and water improvements will be
assessed on an adjusted front footage basis.
G. Sanitary Sewer & Water Trunk Improvements. Trunk sewer and water mains are usually
larger than 8 inches in diameter and are designed to carry larger volumes of flow than are
necessary within an immediate property area in order to serve additional service areas in
the City. The difference between a normal sized lateral and the actual sized trunk
represents "trunk oversizing". The cost in extra pipe sizing and depth shall be paid from
the City's Trunk System Reserve Fund. Based upon calculations and past expelience, a
charge of $3,000 per acre to finance the City's Trunk System Reserve Fund is fair and
equitable. Therefore, all parcels within a utility improvement area shall be levied an area
assessment charge of $3,000 per acre. For unplatted property that can be developed at a
greater density than its present use, a maximum of 2.5 acres shall be assessed currently.
The remaining acreage assessment will be deferred for five years. Interest will accrue
annually but will not be compounded.
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The purpose of the Trunk System Reserve Fund will be to pay for central system
improvements such as non-assessed trunk mains, lateral loopings, forcemains and
pumping stations which are essential for the functional operation of the entire municipal
system. Revenue sources to support this Fund shall be derived principally from the
acreage charge and non-dedicated sewer and water connection fees. Enterprise fund
transfers may occasionally be necessitated to provide interim financing.
H. Storm Water Draina~e Improvements. The fundamental concept underlying a storm
sewer assessment is that all land within a drainage area is considered to be benefited
because all land contributes water runoff to the system. Upon this premise the City
Engineer shall establish a drainage district within a storm sewer project basin and all
property, subject to Assessment Policy reductions, shall be assessed according to the area
assessment method. Storm water fees will be paid at time of platting and/or development
in all zoning districts on net acreage exclusive of roadways and public ponding areas.
Properties will be considered exempt and not subject to a storm water charge if all the
following conditions occur:
I. Adequate on-site and off-site storm sewer facilities are
available to serve the property with respect to runoff capacity.
2. There are no associated street improvements required within
the subdivision application or building permit review process.
3. The entire area proposed to be developed has been previously
assessed.
Park land will be excluded for the purpose of assessment calculation. The rate will be
computed on a "per square foot" net lot basis according to the following schedule:
Zonin~ Classification
R-l, R-2 and R-4
16.8 cents/square foot
R-3 and PUD's with a
density greater than
5.5 units per acre
19.5 cents/square foot
B-1, B-2, B-3, I-I and 1-2
20.3 cents/square foot
At the time the improvement is constructed, the developer shall construct such drainage
facilities as are required for storm water control as determined and approved by the City
Engineer. The cost of such facilities, normally limited to catch basins, manholes, conduits
and pond excavation, shall be credited against the applicable storm water fees. The cost
for any additional right-of-way required for off-premises runoff storage, as it relates to
the specific site project, may be paid from the Trunk System Reserve Fund, subject to
topographical and/or unique runoff considerations. To be eligible for payment, the land
area must exceed twenty-five percent of the land area required for the development needs
to implement the StOlm Water Management Guide Plan. The land must also be capable
of providing utilitarian use such as street and home sites.
Ponds are considered an amenity to the development and must conform to the intent of
the Storm Water Management Guide Plan. A storm water fee will not be collected for the
ponding areas which are dedicated to the City. The City Engineer will determine if the
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ponding areas meet the intent of the Storm Water Management Plan. The rate for storm
water fees shall be adjusted annually according to the Engineers' News Record index.
I. Collector Street Improvements.
The City's designated Municipal State Aid system of roadways has evolved into a
network of collector streets that direct traffic to distribution points connecting with
central trunk arteries such as State and County highways. While collector streets serve
and benefit the entire community, certain aspects of construction provide a more local
impact upon a neighborhood and should be borne by that specific area.
All collector pedestrian related improvements Le., bikeways, sidewalks, trail systems plus
excess right of way are designated as area-wide beneficiaries. While actual costs
associated with construction of the collector street such as engineering, grading,
bituminous and curb and gutter installation al'e deemed to be reimbursable from MSA
funds.
The most equitable funding approach is to be a two-tier fee incorporating an acreage fee
to be collected at time of developer's agreement, complemented by a road charge on the
building permit. This distribution method shares the financial responsibility between the
builder and the land owner/developer. The Collector Street Fees are calculated as
follows:
Development Acreage Fee
*
$1250.00 per net developer acre of property, due and payable at time of
final plat approval.
Building Permit Lot Fee
**
$350.00 per residential lot or RED unit due at time of building permit
application.
The developer shall dedicate up to a maximum of 60 feet of right-of-way and the City
will reimburse any right-of-way in excess of 50 feet at a current rate cost of
$8,000.00/acre. The fees are to be dedicated to the Collector Street Fund and are to be
used for the purpose of reimbursement of excess ROW, collector street improvements and
pedestrian trail improvements associated with such MSA streets and the City's municipal
share of County road related trail improvements.
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SECTION IV . Assessment Conditions
A. Term of Assessments. Special assessments shall be collected in equal annual installments
of principal for a period of years as indicated for the following types of improvements.
1. Bridge Improvements - 10 years
2. Sidewalk Improvements - 10 years
3. Street. Curb & Gutter - 10 years
4. Street Resurfacing - 10 years
5. Sanitary Sewer & Water Laterals - 20 years
6. Trunk Acreage Charge - 5 years
7. Storm Sewer Improvements - 10 years
8. Nuisance Abatements - I year
9. Delinquent Connection Fees, Utilities - 1 year
B. Interest Rate. The interest rate charged on assessments for all projects financed by debt
issuance shall be one percent (1 %) greater than the net interest rate of the bond issue with
a minimum interest rate of 8%. This is necessal'y in order to insure adequate cash flow
when the City is unable to reinvest assessment prepayments at an interest rate sufficient
to meet the interest cost of debt or when the City experiences problems of payment
collection delinquencies. Interest on initial special assessment installments shall begin to
accrue from the date of the resolution adopting the assessment. Owners must be notified
by mail of any changes adopted by the City Council regarding interest rates or
prepayment requirements which differ from those contained in the notice of the proposed
assessment.
C. Payment Procedures. The property owner has five available options when considering
payment of assessments.
I. Tax Payment - If no action is undertaken by the property owner, then special
assessment installments will appear annually on the individual's property tax
statement for the duration of the assessment term.
2. Full Payment - No interest will be charged if the entire assessment is paid off
within 30 days from the date of adoption of the assessment roll.
3. Partial Payment - The property owner has a one time opportunity to make a partial
payment reduction of any amount against his/ber assessment. This option may only
be exercised within the 30-day period immediately following adoption of the
assessment roll.
4. Prepayment - The property owner may at any time prior to November 15 of the
initial year prepay the balance of the assessment with interest accrued to December
31 of that year. The property owner may also choose to pay the remaining
assessment balance at any time, with the exception of the current year's installment
of principal and interest.
5. Senior Citizen Deferment - Any individual who is 65 years of age or older and can
satisfy the property classification and income criteria as specified in City of Prior
Lake Ordinance 86-03 may have their assessments deferred.
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D. Appeal Procedures. No appeal may be taken as to the amount of any assessment adopted
unless a written objection signed by the affected property owner is filed with the City
Manager's office prior to the assessment hearing or presented to the presiding officer at
the hearing. The property owner may appeal the assessment to District Court by serving
notice of the appeal upon the Mayor or City Manager within 30 days after the adoption of
the assessment and filing such notice with the District Court within 10 days after service
of the appeal upon the Mayor or City Manager.
E. Reapportionment Upon Land Division. When a tract of land against which a special
assessment has been levied is subsequently divided or subdivided by plat or otherwise,
the City Council may, on application of the owner of any part of the tract or on its own
motion, equitably apportion among the various lots or parcels in the tract all the
installments of the assessment against the tract remaining unpaid and not then due if it
determines that such apportionment will not materially impair collection of the unpaid
balance of the original assessment against the tract. The City Council may require
furnishing of a satisfactory surety bond in certain cases as specified in Minnesota Statutes
Section 429.071, Subd. 3. Notice of the apportionment and of the right to appeal shall be
mailed to or personally served upon all owners of any part of the tract. In most cases,
dividing the assessment balance evenly on a unit or lot basis would result in an equitable
apportionment. If equitable in a particular case, such a procedure would be most
practical and administratively effective.
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SECTION V . Supplemental Assessment Policy Guidelines
A. Areas Partially Served By Utilities. Any tract of land, lot or parcel whereby a project
improvement such as a sewer or water lateral or ending street terminus does not extend
fully past or beyond the property shall be considered served, benefited and assessed
accordingly. The current special assessment shall be subject to an adjusted front footage
not to exceed 150 feet and a maximum current acreage of 2.5 acres, provided said
assessment does not exceed the special benefit conferred up the affected property. If an
improvement benefits non-abutting properties which may be served by the improvement
when later extensions or improvements are made but are not initially assessed, the City
may reimburse itself for all or part of the costs incurred by assessing those non-abutting
properties at the time of the later extensions or improvements. However, proper notice
must be given of that fact at the time of making the extensions or improvements to the
previously unassessed non-abutting properties.
B. Preliminary Plat Consideration. Land could be considered for assessment based on
preliminary plat consideration. This consideration will occur only when the following
scenarios exist: (1) the City Council has approved a preliminary plat, and (2) a public
hearing ordering the improvement project has not yet occurred. In the event this exists,
assessment frontages may be calculated based upon the proposed lot configuration within
the preliminal"y plat. Road right-of-way within the proposed street alignments will not be
subject to assessment.
C. Tax Exempt Propelty. Other than land under City ownership, there are three categories of
tax exempt properties. Said properties shall be assessed as follows:
I. Church and school property shall be assessed in the same manner as commercial and
industrial zoned property, as long as the assessments do not exceed the special
benefits conferred. Acreage assessments shall be based upon the gross acreage of the
site. Adjusted front footage shall be similarly calculated along the building setback
line in its entirety.
2. State land is normally exempt from assessment unless otherwise negotiated or agreed
upon by the affected State agency.
3. County land is subject to assessment and shall be assessed in the same manner as
commercial and industrial zoned property, as long as the assessments do not exceed
the special benefits conferred.
D. Municipal Propelty Assessments. City owned property is divided into three
classifications for the purpose of determining assessment participation. They are:
I. Public Facility Land
2. Public Right of Way
3. Park Land
Public Facility propelty is defined as land utilized for public buildings such as city halls,
fire halls, libnu1es, maintenance garages, municipal parking lots etc. Public facility
property within a project area will participate in the total assessable cost of an
improvement and will be treated in the same manner as any other benefited parcel.
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Public right-of-way property consisting of all City acquired easements, subject to fee
title, for the specific purpose of utility placement or street construction will be exempt
from assessment.
Park Land assessment eligibility IS further categorized according to the following
descriptions:
1. "Community Parks" are characterized by a higher degree of intense public use and
are relatively large in area size. They are normally associated with athletic events and
sporting activities i.e., softball, football, baseball. hockey etc. Park lands of this
nature will be subject to assessments. Because community parks provide citywide
benefit, the cost of these assessments shall be recovered by a special levy upon the ad
valorem taxes.
2. "Neighborhood Parks" accommodate open space objectives within residential
development and are passive in use as indicated by such features as playground
structures. Because neighborhood parks are commonly used by the immediate
residents of the area, such park land will not be assessed if it comprises less than
twenty-five (25%) of the aggregate project area. Larger parks representing an area
greater than twenty-five (25%) of the aggregate project area shall participate in the
assessment process in the same manner as community parks.
3. "Parkland Dedication" is required either in the form of cash in lieu of land or a land
grant. The developer shall be responsible for the payment of all special assessments
existing at the time of dedication. Depending upon the amount of land involved, the
development shall not be assessed trunk acreage for that portion exceeding the
minimum percentage dedication requirement for park purposes.
E. Tax Forfeiture Assessments. When a parcel of tax forfeited land is returned to private
ownership and the parcel is benefited by an improvement for which special assessments
were cancelled because of the forfeiture, the City may, upon notice and hearing as
provided for the original assessment, make a reassessment or a new assessment as to the
parcel in an amount equal to the amount remaining unpaid on the original assessment.
F. First Serve Situations. If the plans of the City and a developer coincide in regard to
utility installations on certain properties, the plans of the City shall receive first
consideration. In that event, the City may, upon notice and hearing, assess all unplatted
parcels according to this Policy if the improvements are approved prior to hardshell
consent of the unplatted properties.
G. State Aid Participation. Residential lots abutting and having access to collector streets
(streets which are designated as part of the City's Municipal State Aid System and qualify
for state aid funding) shall be assessed the residential equivalent of a standard City street,
normally consisting of a 30 foot paved roadway within a 50 foot right-of-way. This cost
shall be determined by the City Engineer during the preparation of the feasibility report.
The difference in cost shall be reimbursed by applicable state aid funds.
H. Assessment Review Committee. Before any assessment hearing, a review committee
may be established by the City Council to assist staff in its evaluation of all properties in
accordance with this Policy and preparation of the proposed assessment rolls. This
committee, subject to Council discretion, shall consist the City Manager, City Engineer
and the City Finance Director.
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SECTION VI - Definitions
ADJUSTED FRONT FOOTAGE The number of feet actually utilized in calculating an
assessment for a particular property. This may differ from
the actual front footage of the property.
ASSESSMENT A dollar amount charged against a property receiving an
improvement benefit.
CONDOMINIUM Individual ownership of a unit in a multi-unit structure
(similar to an apartment building). A spacial relationship
exists whereby the individual owns the actual air space
within the physical confines of the unit but not the barrier
walls themselves.
DRAINAGE DISTRICT An area defined by the City Engineer which shall form the
physical boundaries where benefit exists within a storm
sewer project. Property to be included within a district shall
be all land which contributes to storm water runoff as well
as land serving as a collector basin for storing such water.
Natural geographical features normally form these
boundaries.
LATERAL A lateral sewer is designed to collect the sewage from a
project area for conveyance to a trunk facility. A water
lateral is sized to provide water in sufficient volumes and
pressure as required to serve a defined project area.
MULTI-FAMILY A su'ucture of more than two units, the primary purpose of
which is to provide rental or leased living space to the
general public. Building characteristics include common
hallways for access purposes and a common parking lot.
NUISANCE ABATEMENTS The elimination of a nuisance whereby the City acts on
behalf of the property owner as authorized by ordinance to
eliminate problems such as junk, weeds, dead trees, etc.
The City may collect the charges for all or any part of the
cost of eliminating any such nuisance by levying a special
assessment against the property benefited.
OVERSIZING A pipe which is designed and constructed larger and/or
deeper than necessary to serve a specific project area.
PUBLIC IMPROVEMENT A project undeltaken by the City under the authority
granted in M.S.A. 429.021 for the purpose of installation of
improvements such as street, curb & gutter, sewer, water,
etc. A public hearing shall be conducted to determine the
necessity and common good of the project as it affects the
community. Upon authorization, the City will proceed with
constl1lction and administration of the project.
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TOWNHOUSE
TRUNK
UTILITY IMPROVEMENT
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Single family attached units in structures housing three or
more contiguous dwelling units, sharing a common wall,
each having separate individual front and rear entrances;
the structure is that of a row-type house as distinguished
from multiple-dwelling apartment buildings.
Water and sewer lines that are large mains requiring greater
size capacity and deeper pipe construction than the
immediate surrounding area requires. However, trunk lines
may also be used to provide lateral service as well.
A defined area within which all AREA properties are
deemed to have been selVed by an improvement project
and are considered to receive benefit.
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