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HomeMy WebLinkAbout02 20 2018 Assessment Policy TH13 Trail Discussion Report Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL WORK SESSION REPORT MEETING DATE: FEBRUARY 20, 2018 AGENDA #: A, B AND C PREPARED BY: FRANK BOYLES, CITY MANAGER PRESENTED BY: VARIOUS AGENDA ITEM: A. ASSESSMENT POLICY REVIEW RE: PRIVATE STREETS B. TH13 TRAIL DISCUSSION C. EMERGING ISSUES INTRODUCTION: The purpose of this agenda item is to provide the city council with information about the work session agenda items scheduled to be discussed at your Tuesday Meeting. TOPICS: A) Assessment Policy Review Re: Private Streets The staff is seeking direction from the city council regarding how private streets with utilities below them should be addressed when improvements are necessary. Of our 100 miles of streets, about 10 miles are private. Property owners served by private streets pay the same property taxes as those served by public streets. There is no credit provided to the property owner on a private street even though they pay for the maintenance, plowing, sweeping and rebuilding of such streets. Below the private streets are public utilities including sanitary sewer and watermain. Even though these utilities are located beneath private streets, they are deemed public. We do not want anyone but city crews responsible for the sewer and water systems for purity and contamination reasons. The sewer and water rates paid by property owners served by private streets are the same as for properties served by public streets. Attached for city council review is a chart which shows the origin and purpose of the city’s various fees. Also included is the city code section on the same topic. Finally, we have included the city’s current Special Assessment Policy. The policy provides the city with alternative approaches to assessment to equitably address the myriad of lot types and sizes throughout the city. The policy does not address private streets. We have surveyed other communities who have private streets but few of them have a clear policy on the subject. 2 The staff would like to provide the city council with various options for discussion. It would be helpful if the city council would provide direction on one or a combination of the options so we can draft amendments to the policy for future council consideration. The good news is that there are no city projects involving private streets this year but there are in 2019. B) TH13 Trail Discussion For years the installation of a trail or sidewalk along TH13 has been a high priority considering the amount of traffic and accident experience. Considering cost and topography trail/sidewalk installation has occurred incrementally. A new opportunity will present itself in 2019 when TH13 receives a full depth reclamation from CR21 south to CR282. There will be an opportunity to complete a segment of trail along TH13 from County Road 12 north to Anna Trail. The cost of the segment is considerable because of grading and retaining walls which will be necessary. The total estimated cost is about $500,000. The state is willing to pay 60% of the project cost. The city would be responsible for approximately $200,000. The source of city funding would be park dedication fees. This fund contains about $1.2 million now. However there has been discussion about using as much a $500,000 for new Pickle Ball Courts. It would be helpful for the city council to discuss whether they desire to move forward with this project. Jason will have graphics for the city council to view. C)Emerging Issues CONCLUSION: If time is available, there may be other issues that the city council wishes to discuss. The staff seeks direction from the city council on each the issues enumerated above. Public Ways Property City of Prior Lake 704 p1 SECTION 704 UTILITY RATES CHARGES AND FEES SUBSECTIONS 704 100 PURPOSE 704 200 CONNECTION AND AVAILABILITY CHARGES DUE ON DEVELOPMENT 704 300 CONNECTION AND AVAILABILITY CHARGES DUE WITH PERMIT OR WORK 704 400 WATER AND SANITARY SEWER CHARGES AND RATES 704 500 STORM SEWER CHARGES AND RATES 704 600 OTHER CHARGES 704 700 ACCOUNTS RESPONSIBILITY OF OWNER 704 800 BILLS FOR SERVICE 704 900 CERTIFICATION 704 1000 PENALTY 704 100 PURPOSE 704 101 The rates charges and fees established by this Part are for the purpose of paying 1 The operation construction reconstruction maintenance repair enlargement improvement use and administrative expenses of the City water storm sewer and sanitary sewer facilities and 2 The City s share as allocated by the Metropolitan Council for the operation and maintenance costs of the metropolitan disposal system and as defined in M S 473 121 Subd 24 704 102 Use and Availability Charges The City Council may as authorized by statute impose just and equitable charges for the use and for the availability of the City facilities and for connection with them Fee justification studies shall be prepared to support changes in use and availability fee except where the fees are established by Metropolitan Council 704 103 Annual Fee Schedule Usage charges connection charges storm sewer sanitary sewer and water availability charges permit fees and penalty fees except those imposed by special assessments shall be set forth in the City s fee schedule adopted annually by the City Council 704 200 CONNECTION AND AVAILABILITY CHARGES DUE ON DEVELOPMENT The City may impose utility connection and availability charges due upon development All such fees shall be set forth in the City fee schedule and shall be in addition to any connection and availability charges imposed by the Metropolitan Council 704 300 CONNECTION AND AVAILABILITY CHARGES DUE WITH PERMIT OR WORK 704 301 City Connection Charges All City sanitary sewer and water connection charges Public Ways Property City of Prior Lake 704 p2 shall be paid before a permit to connect to the public sanitary sewer or water facilities will be issued unless payment is deferred pursuant to the City s deferral policy The amount of the connection charge shall be determined by the number of units that will occupy the property as defined by the Metropolitan Council and based on the type of land use that will be conducted on the property multiplied by the unit charge set forth in the City fee schedule Upon any change in use of the property the charges shall be recalculated and any additional charge resulting from the change in use or additional units shall be paid prior to the issuance of building or connection permits 704 302 Metropolitan Council In addition to the City charges the sanitary sewer availability charge as determined by Metropolitan Council shall be paid prior to the issuance of any building or connection permits 704 303 Water Storage Availability Charge A water storage availability charge shall be determined by the City Council on an annual basis and set forth in the City fee schedule Said fees shall be placed in a fund maintained by the City to accumulate funds for the construction of water storage facilities 704 400 WATER AND SANITARY SEWER CHARGES AND RATES 704 401 Minimum Charges Minimum charges for the availability of public water and or sanitary sewer shall be imposed on properties where water and or sanitary sewer facilities are available regardless of the volume of water used or sewage discharged or whether the property is connected to the facilities For purposes of this Section the definition of available in Subsection 705 200 shall apply For properties where water and or sanitary sewer become available the minimum charges will be imposed beginning on the date of connection or one year from the date such facilities become available whichever occurs sooner The minimum charges shall be set forth in the City fee schedule and shall be imposed per billing period per account 704 402 Rates Rates and charges for the collection and treatment of sewage and for the treatment and distribution of water shall be established by the Council and set forth in the City fee schedule The rates may not exceed an amount reasonably calculated to cover the cost of the proper maintenance and operation of the facilities including the cost of amortization of any indebtedness and a reserve for capital replacement For properties served by another entity the rates for sewer and water are set forth in the intergovernmental agreement with that entity Ord Amd 117 20 publ 12 09 2017 704 403 Users Not Connected to Public Water Rates and charges for the collection and treatment of sewage for those properties not connected to public water shall be set in the City fee schedule 704 404 Sanitary Sewer Rate Cap The charge for sanitary sewer usage for each billing cycle for bills issued in June August October and December actual usage March 21 through November 20 shall not exceed one hundred and fifty percent 150 of the average charge for sanitary sewer usage for the bills issued in February and April actual usage Public Ways Property City of Prior Lake 704 p3 November 21 through March 20 The purpose for this sanitary sewer cap is to provide consideration for lawn and garden sprinkling and other related outside water usage which does not flow into the sanitary sewer system 704 405 Metropolitan Council In addition to the City charges the sanitary sewer use rates as determined by Metropolitan Council shall be imposed per billing cycle 704 406 Bulk Water Rate Charges for bulk water shall be set forth in the City fee schedule 704 500 STORM SEWER CHARGES AND RATES 704 501 Stormwater Management Fee Calculation The Stormwater Management Fee is based on residential equivalency factors for various land uses The residential equivalency factor is the ratio of runoff volume in inches for a particular land use to the runoff volume in inches for an one third acre residential lot assuming a four and two tenths inches 4 2 10 year frequency rainfall and USDA Hydrologic Soil Group B The factors for various land uses are as follows Classification Land Use RE Factor 1 Single Family Residential 1 00 2 Multiple dwelling units residential 1 65 3 Business Commercial 2 07 4 Industrial 1 82 5 Institutional schools churches and govt buildings 1 38 704 502 Special Circumstances 1 Agricultural and conservation zoned areas which have a residential or commercial building on the property will be considered a single family residential classification and be charged the single family residential parcel rate 2 Property that has been platted or subdivided and has a structure on it will be charged the single family residential parcel rate 3 Planned unit development zoning and government agency parcels other than the City will be charged at the rate deemed most appropriate for each individual parcel 704 503 The Stormwater Management Fee shall be determined by the following steps 1 The stormwater rate will be periodically determined and set by the City Council 2 The Stormwater Management Fee for all single family residential parcels shall be the product of stormwater rate the RE factor and one third of an acre 3 The Stormwater Management Fee for all individual parcels other than single family residential parcels shall be defined as the product of the stormwater rate the RE and the total acreage of the parcel 4 A minimum of one third acre shall be computed for commercial site locations within agricultural and conservation land areas 704 504 Credits The City Council in its discretion may adopt policies for adjustment of the storm water management fee Information to justify a fee adjustment must be supplied by the property owner Public Ways Property City of Prior Lake 704 p4 704 505 Exemptions The following land uses are exempt from the storm water management fee Public right of way Lakes Wetland with easements dedicated to the City Municipal owned property Open space cemeteries golf courses Property which has been platted or subdivided but does not have a structure on it Property which has not been platted or subdivided and which does not have a structure on it such as agricultural and conservation zoned land 704 600 OTHER CHARGES 704 601 Capital Facility Charge A capital facility charge may be imposed for the purpose of paying for the operation construction reconstruction maintenance repair enlargement improvement use and administrative expenses of the City s capital facilities 704 602 Industrial User Extra Strength Charges Each user receiving waste treatment services within or served by the City for industrial strength waste shall be charg ed an industrial strength charge in order to pay the charges allocated to the City by the Metropolitan Council The strength charge shall either be billed directly by the Metropolitan Council to the user or shall be billed by the Metropolitan Council to the City and by the City to the user 704 603 Water Meter Charges Prior to issuance of a water meter for initial installation or for replacement or repair due to damage caused by the owner occupant or tenant a water meter charge and if appropriate a pressure reducer charge and or a frost plate charge shall be imposed in the amount set forth in the City fee schedule Ord Amd 117 20 publ 12 09 2017 704 604 Meter Testing Charges for testing of water meters shall be set forth in the City fee schedule 704 605 Water Shut Off and Door Hanger Charges for shutting off or restoring water services and for door hangers shall be set forth in the City fee schedule 704 606 Metropolitan Council In addition to the City charges fee and charges as determined by Metropolitan Council shall be imposed 704 700 ACCOUNTS RESPONSIBILITY OF OWNER All charges rates fines and penalties relating to City utilities are the responsibility of the property owner regardless of whether the property is subject to a lease or occupied by a person other than the owner 704 800 BILLS FOR SERVICE Public Ways Property City of Prior Lake 704 p5 704 801 Billing and Delinquency Utilities including water sanitary sewer storm water and any other utility services billable by the City shall be billed in the form and at intervals determined by the City All charges shall be delinquent if they are unpaid by the bill due date Each bill not paid by the due date shall be charged a late payment penalty of 1 5 per month until paid or until certified to taxes Utility charges are a lien against the property and the property owner remains responsible at all times for the payment of the charges in a timely manner 704 802 Faulty Meters If a meter fails to register or accurately measure the water usage the water and sanitary sewer charges shall be paid for at the established rate based upon past average billings as determined by the City 704 900 CERTIFICATION All charges and payments provided for herein are the primary responsibility of the owner of the premises served and all such charges and payments shall be a lien upon the property Delinquent charges including late payment penalties shall be certified to the County Auditor to be paid with property taxes The Finance Director shall determine the certification amounts for each property including the applicable interest rate as set forth in the Special Assessment Policy and the delinquent assessment administrative charge set by the City fee schedule The owner of the property shall be given written notice stating the amount due the date by which payment shall be made to avoid certification the time date and location of the hearing where the City Council will consider certification and the interest rate on the certification The amounts shall be certified to the County Auditor for collection in accordance with M S 444 075 as it may be amended from time to time along with property taxes 704 1000 PENALTY 704 1001 Civil penalties for violations of Sections 704 705 and 706 shall be set forth in the City fee schedule Any violation of Sections 704 705 or 706 which does not have a fee associated with it shall be charged to the violator at the cost incurred by the City in relation to the violation 704 1002 In addition to the fees set forth in subsection 705 1001 any person violating any provision of this Section shall upon conviction thereof be guilty of a misdemeanor and be punishable in accordance with the penalties established by Minnesota Statute Section 609 02 as may be amended A separate offense shall be deemed committed for each day the violation shall continue Any person violating any of the provisions of this Section shall become liable to the City for any expense loss or damage incurred by the City by reason of such violation Ord Amd 115 17 publ 06 13 15 Public Ways Property City of Prior Lake 704 p6 This space intentionally left blank Prior Lake Utility & Street Funds Fund Description Funding Source Use 225 Park Dedication Fee Development Fees Initial construction of new park improvements 430 Revolving Park Equipment Fund Tax Levy Replacement of existing park equipment 450 Permanent Improvement Revolving (PIR) Fund Tax Levy Mill and overlay projects 502 Trunk Storm Sewer Acreage Charge Development Fees To pay for construction of facilities designed to serve areas beyond the immediate development. Includes extra pipe sizing and depth. 502 Trunk Water Acreage Charge Development Fees To pay for construction of facilities designed to serve areas beyond the immediate development. Includes extra pipe sizing and depth. 502 Trunk Sanitary Sewer Acreage Charge Development Fees To pay for construction of facilities designed to serve areas beyond the immediate development. Includes extra pipe sizing and depth. 502 Trunk Line Availability Charge - Sanitary Sewer Development Fees To pay for the cost of bringing the sewer infrastructure to the subject property 502 Trunk Line Availability Charge - Water Development Fees To pay for the cost of bringing the water infrastructure to the subject property 502 Sewer Connection Charge Building Permit To pay for permit/plan review and provide on site inspections 502 Water Connection Charge Building Permit To pay for permit/plan review and provide on site inspections 503 Street Oversize Acreage Charge Development Fees To pay for construction of streets in excess of 36-feet in width in combination with MSAS funds. 505 Water Tower Charge Building Permit For construction of water storage facilities 601 Water Fund Utility Rates To cover costs for maintenance, operations and future replacement 602 Storm Water Fund Utility Rates To cover costs for maintenance, operations and future replacement 604 Sanitary Sewer Fund Utility Rates To cover costs for maintenance, operations and future replacement Assessment Policy dated May 23, 2016 City of Prior Lake Assessment Policy for Public and Development initiated Improvements 1 ASSESSMENT POLICY FOR PUBLIC AND DEVELOPMENT INITIATED IMPROVEMENTS Adopted May 23 2016 Section I General Policy Statement Section II Definitions Section III Methods of Assessment Section IV Types of Improvements Section V Assessment Details Section VI Supplemental Policy Guidelines Section VII New Development Section VIII Other Types of Assessments SECTION I GENERAL POLICY STATEMENT The purpose of this Assessment Policy is to establish guidelines for the use of special assessments This Policy describes the types of local improvements the City undertakes and the various methods used to calculate special assessments including illustrations of how each method is applied depending on the type of property and type of improvement This Policy establishes guidelines to address City participation in the cost of an improvement Minnesota Statute Chapter 429 provides the authority for the City to construct local improvements The cost of any improvement or any portion thereof may be assessed upon property benefited by the improvement based on the benefits received whether or not the property abuts on the improvement Minn Stat 429 051 The Chapter also sets out the procedures the City must follow in order to specially assess the cost of an improvement Minnesota Statute Chapter 429 as amended from time to time is adopted by reference herein Although the Chapter authorizes the City to specially assess benefited properties for the cost of an improvement it does not provide any guidance concerning how to determine on a parcel specific basis the amount of an assessment This Policy is intended to aide the City Council in arriving at a fair and equitable method to distribute and assess the cost of an improvement against the benefited properties To assist in that responsibility the Council has established an Assessment Review Committee This Committee works with City Staff to review the allocation of project costs for each improvement and recommend a special assessment method based on the guidelines established in this Policy There will be unique situations or circumstances that arise from time to time that are not addressed in this Policy and that will require special consideration by City Staff the Assessment Review Committee and the City Council It is important that assessments be implemented in a reasonable consistent and fair manner Three basic criteria must be satisfied in order for the cost of a project or improvement hereinafter improvement to be specially assessed against a particular parcel 1 The land must have received a special benefit from the improvement 2 The amount of the assessment must not exceed the special benefit 3 The assessment must be uniform in relation to the same class of property within the assessment area City of Prior Lake Assessment Policy for Public and Development initiated Improvements 2 The test of whether a property has been benefitted by an improvement and whether the amount of the special assessment is legally sustainable is determined by the Fair Market Value test The Fair Market Value test FMV analyzes the FMV of the property before the improvement and FMV of the property after the improvement The difference in the FMV before and after the improvement is defined as the benefit the property received from the improvement The amount of a special assessment may not exceed the benefit of the improvement on the property The actual cost to construct an improvement is not the determining factor in determining the amount to be assessed In the event City staff has doubt as to whether or not the costs of the improvement will be equal to or exceed the special benefit to the properties served by the improvement the City Council should obtain such appraisals as may be necessary to support the proposed assessment The cost of an improvement project includes all project support costs both direct and indirect associated with the improvement and incurred by the City including but not limited to 1 Construction Cost 2 Engineering 3 Administrative 4 Right of Way Acquisition Condemnation Costs 5 Legal 6 Capitalized Interest 7 Bonding Costs A local improvement may be initiated by the City Council or by a petition from owners of real property that abut any street named as the location of the improvement If the improvement is initiated by the City Council a four fifths 4 5ths vote of the Council is required to approve the project If an improvement is initiated by petition of the property owners it must contain the signatures of not less than thirty five percent 35 of the owners of real property abutting the streets named in the petition as the location of the improvement A majority vote of the City Council is required to approve an improvement petitioned by not less than 35 of the property owners The last way to initiate an improvement is for all owners of real property abutting upon any street named as the location of any improvement petition the City Council to construct the improvement and to assess the entire cost against their property In this case the City Council may by majority vote without a public hearing adopt a resolution determining such fact and order the improvement SECTION II DEFINITIONS For the purpose of this Policy certain words and phrases have been defined below If a word or group of words used in this Policy are not defined the user should refer to the City Zoning and Subdivision Ordinances and Public Works Design Manuel to determine whether definitions are provided in those documents Where the definition of a word or phrase is more clearly understood in the context of how it is applied in a particular situation its definition is included elsewhere in this Policy 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 City of Prior Lake Assessment Policy for Public and Development initiated Improvements 3 Apartment A multi family structure where tenants rent from the owner of the building Building characteristics include common hallways for access purposes and a common parking lot Assessment Area An area defined by the City Engineer which shall form the physical boundary where benefit exists within an area Assessment Review A committee established by the City Council to assist City Committee Staff in its analysis of the most equitable special assessment method to apply to a particular improvement project and to provide input on any issues relating to a particular property The Assessment Review Committee also reviews the proposed assessment rolls This committee consists of the City Manager City Engineer and or Assistant City Engineer City Attorney Finance Director and two members of the City Council appointed at the Council s Annual Meeting Collector Street Streets that connect individual neighborhoods to the minor arterial system Streets are identified as major or minor collector streets by the Comprehensive Plan Condominium A form of individual ownership of a unit in a multi family structure similar to an apartment building Drainage Distrit An area defined by natural geographic features that form the boundaries for a drainage basin Drainage district boundaries shall be determined by the City Engineer Duplex A residential structure divided into two dwelling units for purposes of occupancy by ownership or rental Flag Lot A parcel of land shaped like a flag with a narrow strip providing access to a public street and the bulk of the property containing no frontage Improvement Area A defined area within which all properties are deemed to be served and receive benefit from an improvement project Lateral A sewer lateral 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 The lateral line does not include the service for individual structures City of Prior Lake Assessment Policy for Public and Development initiated Improvements 4 Multi Family A structure of more than two units Net Area for Development Fee Calculation Net area is defined as the gross area of land within the proposed subdivision less any stormwater ponding or wetland easements conveyed to the City Internal street right of way is included in net area Any road right of way necessary for County or State highway dedication are excluded for the purpose of applicable net area fee calculations Nuisance Abatements The elimination of a nuisance whereby the City acts on behalf of the public 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 that is designed and constructed larger and or deeper than necessary to serve a specific improvement area or a street constructed wider than 36 feet Project Support Costs Costs associated with the delivery of an improvement including surveying testing design administration bonding construction staking inspection soil borings publication or other services Public Improvement An improvement undertaken by the City under the authority granted in M S A 429 021 Residential Equivalent Density Unit Residential Equivalent Density units RED is defined as a single family residential unit Street Construction The initial first time improvement of a street from a condition of no street or gravel to a paved street with concrete curb and gutter Street Reconstruction Paved street replacement including all pavement curb and gutter base material and storm sewer Street Reclamation Rehabilitation Paved street replacement including full depth milling of the existing surface base material correction and recompacting and placement of a new full depth pavement section Street Overlay Resurfacing Partial depth milling of the pavement surface and overlay of a street with a new bituminous layer Street Overlay Resurfacing does not include the base material replacement although may include small area or spot corrections City of Prior Lake Assessment Policy for Public and Development initiated Improvements 5 Townhouse Single family attached units in structures housing three or more contiguous dwelling units sharing a common wall individual front and rear entrances the structure is that of a row type house as distinguished from multiple dwelling apartment buildings Trunk Utility Pipe A water or sewer pipe sized to provide sufficient capacity to serve an area larger than the immediate improvement area Trunk sewer and water pipes are generally greater than 8 in diameter unless the development itself requires larger than 8 diameter pipe SECTION III METHODS OF ASSESSMENTS This Section of the Policy describes the various assessment methods used by the City The type of improvement determines the method of assessment The objective is to choose the assessment method which will arrive at a reasonable fair and equitable assessment and which will be uniform upon the same class of property within the improvement area The most frequently used assessment methods are the unit assessment the area assessment and the front footage assessment Depending upon the individual type of improvement any one or a combination of these methods may be utilized to arrive at an appropriate cost distribution City Staff and the Assessment Review Committee will consider each assessment method and weigh its applicability to the improvement A description of each assessment method and its corresponding policy application is presented below In Section IV of this Policy the various types of improvement are described along with which assessment method is generally applied to a particular type of improvement 1 Unit Assessment A unit assessment is derived by dividing the total cost of the improvement by the number of Residential Equivalent Density RED units in the improvement area A RED unit is defined as a single family residential unit Each platted and unplatted property in the improvement area is assigned a RED unit value based on the underlying zoning If the existing use of the land is less than the highest and best permitted use of the land permitted in the zoning district the Council may consider the current use of the property as well as the potential future uses of the property in determining the appropriate number of RED units to assign to the property The following chart specifies the number of RED units that will be assigned to a property based on use Single Family 1 00 RED Duplex 1 00 RED Condominium 0 80 RED Multifamily 0 80 RED Townhouse 1 00 RED Commercial Industrial RED units are determined based on appraisals and approved by the City Council RED units may be adjusted by the City Council to resolve inequities The unit assessment method is the most commonly used method for assessing improvements in single family residential neighborhoods where the improvements City of Prior Lake Assessment Policy for Public and Development initiated Improvements 6 largely benefit each property to the same degree and the cost of the improvement is not generally affected by parcel size 2 Area Assessment Method The area assessment method is used when an improvement project benefits all properties within a specific geographic area 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 exceptions may apply a Ponding Assessment Consideration Lakes ponds and swamps are included in the assessable area of a parcel If the lake pond or swamp is suitable for integration into the City s storm water management system a property owner may offer to provide the City with a storm water ponding easement for the land under the lake pond or swamp If the proposed area subject to the easement can be functionally integrated into the storm water management system the City may accept the easement in which case the lake pond or swamp area subject to the easement will be subtracted from the gross acreage of the parcel A pond easement cannot be used to reduce the assessable area of the property below the required minimum lot standards b Road Right of Way Assessment Consideration Up to twenty percent 20 of the gross acreage within unplatted parcels of five 5 acres or more depending upon the parcel configuration may be deducted for street right of way purposes Parcels of less than five 5 acres are not subject to the road right of way consideration because in most instances parcels of less than five 5 acres cannot support an internal road system c Park Dedication Assessment Consideration When land is dedicated for park purposes as part of a subdivision as required by the Subdivision Ordinance the developer shall not be assessed an acreage charge on the portion of land dedicated 3 Front Footage Assessment The purpose of the front footage assessment method is to equalize assessment calculations for lots of similar size Individual parcels by their very nature differ considerably in shape and area The actual front footage abutting the improvement i e street sewer water etc is not used to calculate the assessment for a particular parcel Rather an adjusted front footage is used In those instances where a lot s gain access from a common driveway or private street that abuts the improvement the front footage will be based on its frontage along the private street or common driveway The following procedures will apply to calculate the adjusted front footage of a parcel depending 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 Specific parcel configurations include a City of Prior Lake Assessment Policy for Public and Development initiated Improvements 7 b c d City of Prior Lake Assessment Policy for Public and Development initiated Improvements 8 e f City of Prior Lake Assessment Policy for Public and Development initiated Improvements 9 g City of Prior Lake Assessment Policy for Public and Development initiated Improvements 10 h City of Prior Lake Assessment Policy for Public and Development initiated Improvements 11 i j Large Tracts of Land An adjusted front footage of 150 feet will be applied to a large parcel of residential property subject to subdivision that has a front footage of 172 feet or greater abutting an improvement The assessment on the remaining frontage exceeding City of Prior Lake Assessment Policy for Public and Development initiated Improvements 12 150 feet will be deferred for a period of five years to allow for the planned and orderly development of the property During the five year deferral period simple interest will accrue at the rate established in the resolution adopting the assessment roll The deferral of the assessment will cease upon any of the following occurring 1 Five 5 year period expires 2 Final platting of the property 3 Sale or transfer of ownership SECTION IV TYPES OF IMPROVEMENTS 1 Bridge Installation The benefit of a bridge improvement is confined to a specific area The area assessment method or the unit assessment method will be used to recover the assessable portion of the improvement 2 Sidewalk Bike Path Installation Although construction normally occurs only on one side of the street the safety of pedestrian traffic is regarded as an overall neighborhood or regional benefit therefore the City will not assess for this type of improvement unless the City is petitioned for said improvement 3 Street Construction The cost of the original street construction including storm sewer improvement shall be recovered 100 by special assessment The assessment method shall be determined by the Assessment Review Committee and City Council 4 Street Reconstruction Reclamation Rehabilitation The cost of a street reconstruction reclamation rehabilitation improvement shall be allocated on a 40 60 division Forty percent 40 of the total project cost shall be assessed against the benefiting properties and the remaining sixty percent 60 shall be paid through the general ad valorem property tax paid by the entire community 5 Street Overlay Resurfacing The cost of a Street Overlay Resurfacing project shall be assessed on a per unit basis The cost per unit shall be set in the City s Official fee schedule and annually adjusted for inflation based on the Construction Cost Index CCI for the Twin Cities Area 6 Sealcoating Sealcoating is an application of oil and aggregate material over the existing paved road Street sealcoating shall be treated as general maintenance activities and shall not be assessed unless the City is petitioned for the improvements 7 Sanitary Sewer Water Lateral Improvements All water and sewer lines regardless of their 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 Original sewer and water improvements will be assessed at one hundred percent 100 of the cost of the improvements The cost of repair or replacement of sewer and water laterals is treated as general maintenance and supported by utility fees and will not be assessed City of Prior Lake Assessment Policy for Public and Development initiated Improvements 13 8 Trunk Sanitary Sewer Water Improvements Trunk sewer and water mains are usually larger than 8 inches in diameter and are designed to carry large volumes of flow Trunk lines are regional facilities designed to serve areas beyond the immediate property The difference between a normal sized lateral and the actual sized trunk represents trunk oversizing The cost in extra pipe sizing length and depth shall be paid from the City s Trunk Reserve Fund Regardless of pipe size when a sewer and water line is extended through a developed area but also would serve an undeveloped area or provides for looping of the system the cost of the pipes may be divided between assessments trunk funds or other funds at the discretion of the City Council 9 Trunk Storm Sewer Improvements Trunk lines are regional facilities designed to serve areas beyond the immediate property The difference between a normal sized storm sewer pipe and the actual sized trunk represents trunk oversizing The cost in extra pipe sizing and depth shall be paid from the Water Quality Fund tax levy or the Trunk Reserve Fund and will not be part of the assessment 10 Drainage District Improvements All land within a drainage area is considered to be benefited by a drainage improvement because all land contributes water runoff to the drainage system The City Engineer shall establish a drainage district and all property within the drainage district shall be assessed according to the area assessment method 11 Collector Street Construction The City s designated Municipal State Aid system of roadways has evolved into a network of collector streets that route traffic to distribution points that connect with central trunk arteries such as State and County highways While collector streets serve and benefit the entire community certain aspects of their construction provide a more local benefit to a neighborhood and should be borne by that specific neighborhood Benefitting properties will be assessed up to a 36 foot wide street Street width above 36 feet are normally paid from general ad valorem taxes Municipal State Aid funds or the Street Oversize Fund SECTION V ASSESSMENT DETAILS 1 Term of Assessments Special assessments shall be collected in equal annual installments of principal for a period of years determined by the type of improvement a Sidewalk Improvements 10 years b Street Construction 10 years c Street Resurfacing 10 years d Street Reconstruction Reclamation Rehabilitation 10 years e Street Overlay Resurfacing 5 years f Sanitary Sewer Water Laterals 20 years g Storm Sewer Improvements 10 years h Nuisance Abatements 1 year 1 000 or less 5 years 1 001 or more i Delinquent Connection Fees Utilities 1 year j Diseased Tree Abatement 1 year 1 000 or less 5 years 1 001 or more City of Prior Lake Assessment Policy for Public and Development initiated Improvements 14 2 Interest Rate on Assessments The interest rate for the assessment shall be 2 percent higher than the net interest cost of the bonds that have been issued for the project or if no bonds were issued for the project the interest rate shall be 2 percent higher than the net interest cost of the most recent bonds sold by the City 3 Payment of Special Assessments A property owner has four 4 available options regarding the payment of assessments including the option to make annual installment payments that appear as part of the individuals property tax statement pay the assessment in full within thirty 30 days from the adoption of the assessment without incurring any interest pay the remaining balance on an assessment to the municipality at any time prior to November 15th of a given year with interest accrued to December 31st of the year paid or apply for a payment deferral if the individual meets the age and income criteria set out in City Ordinance Section 111 as may be amended from time to time Minnesota Statute Section 429 061 Subd 3 deals with certification of the assessment roll to the county auditor and payment options 4 Reapportionment Upon Land Division When a tract of land against which a special assessment has been levied is thereafter divided or subdivided by plat or otherwise the 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 council may and if the special assessment has been pledged to the payment of improvement warrants shall require the owner or owners as a condition of such apportionment to furnish a satisfactory surety bond fully protecting the municipality against any loss resulting from failure to pay any part of the reapportionment assessment when due Notice of such 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 The practice of unit assessment redistribution and recertification to the Scott County Auditor s Office will be followed when the amount of the unit assessment exceeds One Thousand Dollars 1 000 In those instances when the property subdivision would result in smaller increments the entire assessment shall be paid at the time the developer s agreement is approved SECTION VI SUPPLEMENTAL POLICY GUIDELINES 1 Areas Partially Served By Utilities Any large tract of land lot or parcel whereby an improvement abuts or extends to the property shall be considered served and assessed accordingly The current special assessment shall be calculated based on the adjusted front footage method 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 based on the Section VII New Development 2 Assessments Based On Preliminary Plat Property and lots subject to an approved preliminary plat may be specially assessed only if the public hearing ordering the improvement project has not yet occurred In the event this exists assessment frontages may be calculated based upon the lot configurations in the approved the preliminary plat City of Prior Lake Assessment Policy for Public and Development initiated Improvements 15 3 Tax Exempt Property There are three categories of tax exempt properties Assessments are applied as follows a Church and school property will be assessed in the same manner as commercial and industrial zoned property b State land is normally exempt from assessment unless otherwise negotiated or agreed upon by the affected State agency c County land is subject to assessment and will be assessed in the same manner as commercial and industrial zoned property See also Minnesota Statute Section 429 061 Subd 4 4 Municipal Property Assessments City owned property is divided following three classifications for the purpose of determining assessment participation Public Facility Land Public Right of Way and Park Land a Public Facility Land is defined as land utilized for public buildings such as city halls fire halls libraries maintenance garages municipal parking lots etc Public facility property within an improvement area will participate in the total assessable cost of the improvement and will be treated in the same manner as any other benefitted parcel b 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 c Park Land is categorized according to the following descriptions 1 Community Parks Community Parks are characterized by a high degree of public use and the area is relatively large in size These parks 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 The cost of improvements to community parks will be recovered by a special levy upon the ad valorem taxes 2 Neighborhood Parks Neighborhood Parks provide open space within a residential development and include features such as playground structures Because neighborhood parks are commonly used by the immediate residents of the area such park land will not be assessed if the area of the park comprises less than twenty five 25 of the area served by the improvement project Larger parks comprising an area greater than twenty five 25 of the area served by the improvement project will be included in an assessment in the same manner as community parks 5 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 City of Prior Lake Assessment Policy for Public and Development initiated Improvements 16 canceled 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 6 First Serve Situations If the plans of the City and a developer coincide for the installation of utilities the plans of the City will prevail When this situation occurs the City may upon notice and hearing assess all lots in an approved preliminary plat if the improvements are approved prior to approval of the final plat 7 Utility Impact Costs associated with the restoration for utility work will not be assessed for street improvement projects 8 Project Support Costs Project support costs are part of the total cost of the improvement project and are included in the assessment calculation Project support costs for utility or water quality improvements shall be charged to the associated funding source used to finance the improvements 9 Street Lighting Street lighting costs are an assessable component of an improvement project 10 Private Streets and Common Driveways Properties accessed from a private street or common driveway within an improvement area or adjacent to the improvements will be assessed SECTION VII NEW DEVELOPMENT New Development benefits from and creates a burden on existing public improvements and infrastructure Development that has preceded a new subdivision or the platting of property has paid its share of the cost of existing public improvements such as streets sanitary sewers storm water sewers and drainage and ponding facilities and the park and trail system New development could not occur if certain types of public improvements were not already in place There is a nexus between new development and the necessity to expand enlarge and extend public improvements When new development occurs the City collects various categories of fees described below to recover the benefit realized and the burden imposed by the new development on public infrastructure The City has undertaken studies to compute the cost at build out of the various types of city wide public infrastructure and facilities improvements Based on these studies the City has developed a fee schedule that calculates the share of the cost the new subdivision should pay towards existing and future infrastructure and facility improvements The City also contributes to new development by paying a developer to oversize a local improvement where necessary to provide capacity for future development Types of Fees 1 City Administration The Developer will pay a fee to the City for administration expenses associated with the development project City administration will include all activities necessary to develop implement and administer the Development Contract The calculation of this fee is based on 4 of the estimated cost of Developer Installed Improvements Extraordinary costs incurred by the City over and above the 4 will be billed to the Developer City of Prior Lake Assessment Policy for Public and Development initiated Improvements 17 2 Construction Observation The Developer will pay a fee for the City construction observation associated with the development project Construction observation includes inspection of all of the public improvements the developer will install as part of the subdivision Fees for this service are calculated at 5 of the estimated cost of Developer Installed Improvements Extraordinary costs incurred by the City over and above the 5 will be billed to the Developer 3 Trunk Storm Sewer Acreage Charge The Developer shall pay a trunk stormwater acreage charge at the time of subdivision or platting The acreage charge is adopted as a part of the Official City Fee Schedule 4 Trunk Water Acreage Charge The Developer will pay a trunk water acreage charge at the time of subdivision or platting The trunk water acreage charge is adopted as part of the Official City Fee Schedule 5 Trunk Sanitary Sewer Acreage Charge The Developer will pay a trunk sanitary sewer acreage charge at the time of subdivision or platting The trunk sanitary sewer acreage charge is adopted as part of the Official City Fee Schedule 6 Street Oversize Acreage Charge The Developer will pay a street oversize acreage charge at the time of subdivision or platting The street oversize acreage charge is adopted as part of the Official City Fee Schedule 7 Sanitary Sewer and Water Connection Charges The Developer will pay a sanitary sewer connection charge and a water connection charge at the time of subdivision or platting The connection charge at the time of subdivision or platting is a one time fee imposed on that property that is connecting to the City sanitary sewer and water systems Outlots in a subdivision where the connection fee was paid will not be charged again when the outlot is final platted The sanitary sewer and water connection charge covers the cost of bringing the sewer and water infrastructure to the subject property Building permit sewer and water connection charges are a separate connection charge collected at the time a building permit is issued The connection charges are adopted as a part of the Official City Fee Schedule 8 Park and Trail Dedication Developers are required to dedicate a portion of the net developable acreage of the subdivision for parks and or trails At the discretion of the City the dedication requirement may be satisfied in the form of cash in lieu of land Any land dedicated and accepted by the City for park purposes or purchased by the City for park purposes in excess of the park and trail dedication requirement will not be subject to the trunk acreage fees The Park Dedication Fee is adopted as part of the Official City Fee Schedule SECTION VIII OTHER TYPES OF ASSESSMENTS This Special Assessment Policy applies to those types of local improvements authorized in Minnesota Statute Section 429 021 where the cost of the improvement is apportioned among the properties that are benefited In addition to the twenty 20 categories of local improvements authorized in Minnesota Statute Section 429 021 the City also has the authority to collect unpaid special charges and to recover City of Prior Lake Assessment Policy for Public and Development initiated Improvements 18 the cost to remove abate remedy or eliminate certain conditions on private property that create a public safety hazard Minn Stat Section 429 101 The City s authority to collect unpaid charges through a special assessment is not limited to costs for activities undertaken pursuant to Chapter 429 For example if a property owner after notice from the City fails to raze remove or repair a hazardous building secure a vacant or unoccupied building that creates a hazardous condition or remove a dangerous condition from their property the City can do the work and charge the cost to the property owner If the property owner fails to reimburse the City the unpaid charges can be certified to the County Treasurer as a special assessment against the property Bureau of Labor Statistics Series Id Series Title Area Item Base Period Years Year Annual Percent Change 1 person 2 persons 3 persons 4 persons 5 persons 6 persons 7 persons 8 persons 1986 108 4 16 662 00 18 982 00 21 373 00 23 764 00 25 648 00 27 531 00 29 488 00 31 371 00 1987 111 6 3 0 17 153 87 19 542 35 22 003 94 24 465 52 26 405 14 28 343 72 30 358 49 32 297 08 1988 117 2 5 0 18 014 63 20 522 97 23 108 08 25 693 18 27 730 13 29 765 99 31 881 86 33 917 72 1989 122 0 4 1 18 752 44 21 363 51 24 054 48 26 745 46 28 865 83 30 985 07 33 187 60 35 306 85 1990 127 0 4 1 19 520 98 22 239 06 25 040 32 27 841 59 30 048 86 32 254 95 34 547 75 36 753 85 1991 130 4 2 7 20 043 59 22 834 44 25 710 69 28 586 95 30 853 31 33 118 47 35 472 65 37 737 81 1992 135 0 3 5 20 750 65 23 639 94 26 617 67 29 595 39 31 941 70 34 286 76 36 723 99 39 069 05 1993 139 2 3 1 21 396 22 24 375 41 27 445 77 30 516 13 32 935 44 35 353 46 37 866 51 40 284 53 1994 143 6 3 2 22 072 54 25 145 90 28 313 31 31 480 72 33 976 50 36 470 96 39 063 44 41 557 89 1995 147 0 2 4 22 595 15 25 741 27 28 983 68 32 226 09 34 780 96 37 334 47 39 988 34 42 541 85 1996 151 9 3 3 23 348 32 26 599 32 29 949 80 33 300 29 35 940 32 38 578 96 41 321 28 43 959 92 1997 155 4 2 3 23 886 30 27 212 20 30 639 89 34 067 58 36 768 44 39 467 87 42 273 39 44 972 82 1998 158 3 1 9 24 332 05 27 720 02 31 211 68 34 703 33 37 454 60 40 204 40 43 062 27 45 812 08 1999 163 3 3 2 25 100 60 28 595 58 32 197 52 35 799 46 38 637 62 41 474 28 44 422 42 47 259 08 2000 170 1 4 2 26 145 81 29 786 33 33 538 26 37 290 19 40 246 54 43 201 32 46 272 22 49 227 00 2001 176 5 3 8 27 129 55 30 907 04 34 800 13 38 693 23 41 760 81 44 826 77 48 013 21 51 079 17 2002 179 6 1 8 27 606 04 31 449 88 35 411 35 39 372 83 42 494 29 45 614 09 48 856 50 51 976 31 2003 182 7 1 7 28 082 54 31 992 73 36 022 57 40 052 42 43 227 76 46 401 42 49 699 79 52 873 45 2004 187 9 2 8 28 881 82 32 903 30 37 047 85 41 192 39 44 458 11 47 722 09 51 114 35 54 378 33 2005 193 1 2 8 29 681 11 33 813 88 38 073 12 42 332 37 45 688 46 49 042 77 52 528 90 55 883 21 2006 196 2 1 6 30 157 61 34 356 72 38 684 34 43 011 96 46 421 93 49 830 09 53 372 19 56 780 35 2007 201 247 2 6 30 933 37 35 240 50 39 679 45 44 118 39 47 616 08 51 111 91 54 745 12 58 240 96 2008 208 958 3 8 32 118 62 36 590 78 41 199 81 45 808 84 49 440 54 53 070 32 56 842 74 60 472 52 All items in Minneapolis St Paul MN WI all urban consumers not seasonallyadjustedMinneapolisStPaul MN WI All items 1982 84 100 1986 to 2017 CPI All Urban Consumers Current Series Original Data Value CUURA211SA0 CUUSA211SA0 Not Seasonally Adjusted Source Bureau of Labor Statistics Generated on October 3 2017 09 33 17 AM Bureau of Labor Statistics 2009 207 889 0 5 31 954 30 36 403 59 40 989 04 45 574 49 49 187 61 52 798 82 56 551 94 60 163 15 2010 211 728 1 8 32 544 39 37 075 84 41 745 96 46 416 09 50 095 94 53 773 83 57 596 27 61 274 16 2011 219 339 3 6 33 714 27 38 408 61 43 246 61 48 084 61 51 896 74 55 706 85 59 666 68 63 476 79 2012 224 459 2 3 34 501 25 39 305 17 44 256 11 49 207 04 53 108 16 57 007 20 61 059 47 64 958 52 2013 228 811 1 9 35 170 19 40 067 25 45 114 18 50 161 11 54 137 86 58 112 51 62 243 35 66 217 99 2014 232 013 1 4 35 662 37 40 627 96 45 745 52 50 863 07 54 895 47 58 925 74 63 114 39 67 144 65 2015 230 567 0 6 35 440 10 40 374 75 45 460 41 50 546 07 54 553 34 58 558 49 62 721 03 66 726 17 2016 234 145 1 6 35 990 07 41 001 30 46 165 88 51 330 46 55 399 92 59 467 21 63 694 35 67 761 65 2017 Source Bureau of Labor Statistics Generated on October 3 2017 09 33 17 AM