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HomeMy WebLinkAbout6 - Assessment Policy Amendment AGENDA ITEM: REQUESTED BY SUBJECT MATTER: DATE: INTRODUCTION: DISCUSSION: HERITAGE 1891 COMMUNITY 1991 U!7,J.5(!J AI 20)1 6 RALPH TESCHNER, FINANCE DIRECTOR CONSIDER AMENDMENT TO ASSESSMENT POLICY APRIL 16, 1990 The Prior Lake Assessment Policy stipulates the collection of storm water fees at the time of platting and/or development. The intent of this policy provision was to charge all those properties which have NOT been served with utilities NOR previously assessed. However, there are certain exceptions to the application of this requirement. The purpose of this agenda item is to grant consideration to those parcels and amend the policy accordingly. A number of small scale parcels exist, which are yet to to be developed that do not conform to the above criteria. The development of these lands would normally be subject to the abbreviated subdivision process or the administrative plat procedures as provided in our subdivision ordinance. No improvements are necessary, subsequently an assessment charge would be inappropriate as benefit would have already been provided and paid for by past assessments. Many times the subdivision of these properties are simply initiated to amend property lines. Therefore, in such cases these parcels should be excluded from storm water fees. Staff would recommend the following language be adopted and incorporated into Section III, Subd. H, Storm Water Drainaqe Improvements of the Prior Lake Assessment Policy: "Properties will be considered exempt and not subject to a storm water charge if all the following conditions occur: 1. Ade9?ate on-site and off-site storm sewer fac1lities 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 previous assessed. 4629 Dakota 51. 5.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 4474245 RECOMMENDATION: ALTERNATIVES: ACTION REQUIRED: Attached with your agenda report is page 11 of the Assessment Policy appro~riate insertion of this addit10n highlighted. The alternatives are as follows: a copy of with the amendment 1. Adopt the policy revision as submitted. 2. Table this item for a specific reason. 3. Direct staff to change the policy statement as per Council direction. 4. Reject assessment policy amendment. Motion to approve the amendment as drafted and prepared for Council consideration. 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 Sfstem Reserve Fund. Based upon calculations and past exper~ence, a charge of $2,750 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 $2,750 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. 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 Drainaqe 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 accordin~ to the area assessment method. storm water fees will be pa~d 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 sub~ect to a storm water charge if all the following condit~ons occur: 1. 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: Zoninq Classification R-l, R-2 and R-4 R-3 and PUD's with a densitr greater than 5.5 un~ts per acre B-l, B-2, B-3, 1-1 and 1-2 16.8 cents/square foot 19.5 cents/square foot 20.3 cents/square foot 11