HomeMy WebLinkAbout7 - Assessment Policy Amendments
AGENDA NUMBER: .'"
PREPARED BY:
SUBJECT:
DATE:
INTRODUCTION:
BACKGROUND:
CENSUS '90
.
7
DAVID J. UNMACHT, CITY MANAGER AND LARRY
ANDERSON, DIRECTOR OF PUBLIC WORKS
CONSIDER AMENDMENTS TO ASSESSMENT POLICY
FEBRUARY 5, 1990
to request the
changes in the
The purpose of this item is
City Council to consider
Assessment Policy.
Staff has been reviewing the Assessment
Policy, which was adopted by the City Council
on February 2l, 1989. The intent of both the
Staff and citf Council is to have an
Assessment Pol~cy which would not cause any
adverse im~act u~on the various property
classificat~ons w~thin the community nor
result in any unfair advantage or disadvantage
as a result policy implementations. Therefore,
restated, the three basic goals and objectives
of the Assessment Policy are:
1. Provide for a fair and equitable method of
cost distribution of public improvements.
2. Encourage development consistent with the
overall Comprehensive plan of the City.
3. To promote quality development reflecting
the highest standards of compliance.
In that context, Staff believes the discussion
of these issues is important for Council
consideration, not withstanding any action you
elect to take.
An initial reaction may be that why even
consider changes, the "Policy is the Policy".
This is not appropriate for two reasons:
First, the Policy is new and with all new
requirements some post adoption changes or
"bugs" need to be worked out of the policy
and, s~cond, if the Policy doesn't meet the
three tests described above, then it is in our
best interest to review, consider, and
possibly amend those section(s) inconsistent
with our goals.
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 I Fax (612) 447-4245
This discussion was prom~ted by numerous
issues regarding the S1enna Corporation
development. Over a course of several
meetings many issues relating to the
Assessment Policy were discussed. Staff
believes that some of these issues warrant
consideration and are being presented to the
Council. Many of the issues are not being
presented as our position remains the same as
the Assessment Policy. These issues under
consideration are outlined in the proposed
Amended Assessment POlicy, which is attached.
Please review pages 4 and ll. The new
language is underlined and deletions are
crossed out.
DISCUSSION:
The intent of the park dedication ordinance is
to accept on an equal value basis, either cash
or land for the ~urpose of improving our park
system. The prov~sion "cash in lieu of land"
means the interchangeable substitution of one
for the other. Our Assessment Policy as it
currently prescribes unfavorable treatment
when land dedication is involved. This is
true because the developer would be charged an
additional cost, equivalent to our acrea~e
charges, above and beyond what he would pay 1f
cash were required.
The subsequent example illustrates this
disparity. In a typical.100 acre development
the developer would 1ncur either a cash
dedication cost of $60,000.00 or a similar
land dedication cost of $60,000.00 assuming an
approximate land acquisition cost of
$6,000.00/acre. However, the developer would
actually pay an additional $85,000.00 if the
park land option was selected, in storm water
and trunk acreage charges assessed under our
current policy.
By not charging the storm water management fee
and trunk sewer and acreage charge to park
land being dedicated, equity is restored
between the two development scenarios.
However, in order to compensate for the loss
of revenue by exempting park land the fees
need to be increased to offset the
assimilation of park land into the overall
system. In effect, Staff supports the
elimination of fees for dedicated park land,
but at the same time also recommends that our
other fees be raised to accommodate this
result. This, of course, is an equity issue.
Therefore, the storm water management fee
should be increased from 14.0 cents per square
foot to 16.8 cents per s~are foot for
residential property. In add~tion, the storm
water rates for multiple housing and
RECOMMENDATION:
Industrial/Commercial properties have also
been adjusted as per the outlined changes in
the amended Assessment Policy. The
corresponding trunk sewer and water acreage
charge should be increased from $2,SOO.00jper
acre to $2,750.00 per acre. Staff has
compared the new level of storm water
management fees and trunk sewer and water
acreage charges to other communities and the
proposed fees are comparable.
The next issue relates to dedicating land for
storm water purposes. In some cases,
developers will be required to provide
additional land for storm water runoff from
adjacent properties. staff has reviewed cases
where the "buildable land" area required for
the storm water ponding is double that which
is required for the development. In other
words land which normally could sustain
development (not lowlands or marshes) is
needed to provide pondin9 for off-site storm
water runoff, not relat1n9 to the specific
development. The City tak~ng land could be
construed as taking land without due
process and compensation for the additional
land required. The City would have a land
appraiser determine the rate to be paid for
such land acquisition.
The application of this policf would apply
only when land is being acqu1red which is
developable and being capable of having
utilitarian use, such as streets and or lots.
Land acquired which does not support use such
as streets or lots will continue to provide
the same environmental amenity to adjacent
lots, as prior to the acquisition of ponding
easements. Thus there is no loss to the
developer in the acquisition of easements for
land already constituting non-buildable
areas.
For such compensation to occur, the excess
land acquired must exceed 25% of the land
needed for on site ponding purposes for the
development. This will eliminate the argument
that we should pay for very small parcels that
are insignificant in terms of development
impact.
To implement these changes, the attached
Assessment Policy will require modification.
The changes are on the cover sheet and pages 4
and 11.
the revised
Staff, to
Assessment
The recommendation is to adopt
Assessment Policy as presented by
provide a more fair and equitable
Policy.
ALTERNATIVES:
ACTION REQUIRED:
The alternatives are as follows:
1. Adopt the Assessment Policy changes as
proposed.
2. Modifr the Assessment Policy based upon
Counc~l discussion.
3. Table the discussion on the Assessment
Policy based upon Council direction.
4. Leave the Assessment Policy as is with no
modifications.
Action may
discussion.
depending
on
Council
vary
City of Prior Lake
ASSESEMENI' roLICY
FOR PUBLIC INITIATED IMPRcmMENTS
Adopted by the Prior Lake Council
Fe.brl:J6~ 21, 1989
Amended February 5, 1990
ASSESSMENT POLICY STATEMENT
Table of Contents
~
Section I General Policy Statement 1
section II Methods of Assessment 3
section III Improvement Type Application 10
Section IV Assessment Conditions l3
section V Supplemental Assessment Policy Guidelines 15
Section VI Definitions 18
CITY OF PRIOR LAKE
ASSESSMENT POLICY STATEMENT
FOR PUBLIC INITIATED IMPROVEMENTS
SECTION I - GENERAL POLICY STATEMENT
The purpose of this Assessment Pol icy 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 are 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 uniform 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
important to recognize that the actual cost of extending an
improvement past a particular parcel is not the determining factor in
determining 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 the 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 tees
C. Administrative tees
D. Right-of-way acquisition/condemnation costs
E. Legal tees
F. Capitalized interest
Initiation ot public improvement projects can be undertaken in 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,
wi thout 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
the project cost in accordance with these assessment guidelines.
While there is no perfect 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 brief summary, consists of five
main sectIons addressing purpose, methods 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 for a systematic
assessment process in the CIty of Prior Lake.
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SECTION II - METHODS OF ASSESSMENT
The nature of an improvement determines the method of assessment. The
objective is to choose an assessment method which will arrive at a
reasonable, fair and equitable assessment which will be uniform upon
the same class of property wi thin 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
proj ect. A description of each assessment and its corresponding
pOlley 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
propertr will be assigned RED unit values equivalent to the
underly ng 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 everyone to
the same degree and the cost of the improvement is not generally
affected 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:
1. 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
storm water ponding easement to the Citr for the land under
the lake, pond or swamp if integrated nto the storm water
management syste.. If such ponding easement is accepted
based upon its functional integration into the storm water
management system, a reduction in area equal to the area of
')
"
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the easement for the lake, pond or swamp will be subtracted
froB the gro.. acreage assessment of the parcel. Lot.
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 purposes wi thin unplatted parcels of
five acres or more depending upon the parcel configuration.
Parcels of less than five acres may not qualify and may be
assessed full acreage. The reason for this size restriction
is that, in most instances, parcels of less than five acre.
cannot support an internal road system.
)~ ~;
Park Dedication Assessment Consideration. When park land is ~
dedicated as part of a residential development, as required ?i(&~j
by the Park Comprehensive Plan, the developer shall not be ~~1'
assessed an acreage charge, eR \k8 per.ieR ef laRd d8~igat8~' ~
;:;:tre~~t!.-~j.\t. ,~_~~.a~ parle dadieAticn
3.
C. Front Footaae Assessment. The actual physical dimensions of a
parcel abutting an improvement (1. e., street, sewer, water,
etc.) shall NOT be construed as the frontage util ized to
calculate the assessment for a particular parcel. Rather, an
"adjusted front footage" will be determined. The purpose of this
method i. to equal ize 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 measurement. will be acaled
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 Lota
2. Rectangular Variation Lot.
3. Triangular Lot.
4. CUl-de-sac Lots
S . CUrved Lot.
6. Irregularly Shaped Lots
7. Comer Lot.
a. Flag Lota
9. Double Frontage Lot.
10. Large Tract.
The ultimate objective of these procedures i. to arrive at a
fair and equitable distribution of cost wherebI consideration i.
given to lot size and all parcels are comparab y assessed.
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1. Standard LotI. In this instance, the adjusted front footage
for rectangular lots wil~ be the actual front footage of the
lot. The frontage measured shall be the lot width at the
front lot line.
MAIN AVENlE
~,.- 90'
Adj. Front Footage
EXAMPLES
Lot A-50'
Lot B - 90'
A 'B
2. Rectangular Variation Lots. For a lot which i.
approximately rectangular and uniform in shape, the adjusted
front footage is computed by averaging the front.. and back
sides of the lot. This method is used only where the
divergence between front and rear lot lines is 20 feet or
less.
MAN AVEf'lE
90' 7d
A B
Adj. Front Footage
EXAMPLES
Lot A - 90 + 110 - lOO'
2
Lot B - 70 + 80 - 75'
2
110' 80'
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 line shall not
exceed a maximum distance in depth of 150 feet.
Adj. Front Footage
MAIN AVENUE EXAMPLES
100' 120' Lot A - 100 + 40 - 70'
2
A B Lot B - 40 + 130 - 85'
2
1&0' Lot C - 120 + 0 - 60'
J_M 2
130'
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4. CUl-de-sac Lots. The adjusted front footage for those lot.
that exist on cul-de-sacs will be calculated at the
midsection of the lot at the most reasonably defined and
determinable position. Thi. 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.
A
......
......
7,' .....
110'
Adj. Front Footage
EXAMPLES
Lot A - 75'
Lot B - 110'
Lot C - 80'
5. Curved Lots. In certain situations such as those where lots
are located along meandering trail system streets, road
patterns create curvilineal 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'
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6. Irregularly Shaped LotI. In many case., unplatted parcel.
that are leqally described by a mete. and bound. description
are irreqular and odd shaped. The adjusted front footaqe
will be calculated by mea.urinq the lot width at the 25 foot
building setback line.
U5'
-----
140'
------
125'
-----
Adj. Front Footage
EXAMPLES
Lot A - 115'
Lot B - 140'
Lot C - l25'
MAIN
AVENUE
-1
B
A
c
7. Corner Lots.
a. Residentially Zoned Corner Lots. The adjusted front
footage will be assessed on the short side. A l50 foot
side lot allowance credit will apply alonq 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 o~ both
sides.
Adj. Front Footage
EXAMPLES
Lot A - 95'
Lot B - 225'
I
.
I
I
.
.
-JJ B I
- I
I
ISO' ! 100'
AVENlE
A
-It)
en
125'
MAN
-7-
b. Com.ercial and Industrial Zoned Corner Lot.. No
allowance relief will be granted because ot the higher
inherent property value associated with imfroved traftic
trontaqe and greater visibility along bus ness district
and industrial park intersections. The adjusted front
tootaqe shall be the entire trontage measured along the
setback line comprisinq the buildinq envelope.
Adj. Front Footaqe
EXAMPLES
Lot A - 280'
Lot B - 390'
.0
.
-
.
.
.
.
.
L
1m B-
.- 275'
L__________~_~_____
\l
AVEN.E
I
300
MAN
I
8. Flag Lots. Properties which utilize a narrow private
easement or maintain ownership of access to their property
exceeding a minimum length of 125 feet, thereby having a
small frontage on a street, will be assighed an adjusted
front footage of 80 feet. This dimension is consistent with
the subdivision ordinance which prescribes such length as
the minimum lot frontage along a public roadway. The
adjusted front footage for flag lots whose driveway access
is under 125 teet will be measured at the buildinq setback
line from the access terminus.
A
Adj. Front Footage
EXAMPLES
Lot A - 80'
Lot B - 90'
Id
.0
!
170
-8-
9. Double Frontage Lots. If a parcel, other than a corner lot,
comprises frontage on two streets and i. eligible tor
subdivision, then an adfusted front footage assessment will
be charged along each street. For double frontage lot.
lacking the necessary depth for subdivision, only a single
adjusted front footage will be computed.
Adj. Front Footage
EXAMPLES
~ AVE.
110'
MA~ AVE.
80'
Lot A - 220'
Lot B - 80'
e., A
,..
N
.0
N B
110'
10. Large Tracts. The first 150 feet of 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 deferred assessments will
automatically be called down and currently certified on the
property tax rolls upon hardshell approval by the City
Council.
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SECTION III - IMPROVEMENT TYPE APPLICATION
A. Bridae 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, benefit is provided on an equal and proportionate basi.
to the affected property owners. Therefore the unit assessment
basis will be used as the most representative and cost effective
method of distribution.
B. Sidewalk/Bike 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 Resurfacina. 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 percent (60') of the total
project cost against the benefiting properties. The remaining
forty percent (40') shall be recpvered 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. Sealcoatina street Improvements. Sealcoating shall be treated
as a general maintenance expense which shall be one hundred
percent (100'> supported by taxes through a special levy spread
over the entire City. No assessments will be associated with
sealcoating.
F. Sani tary Sewer and Water Lateral Improvements. All water and
sewer lines, regardless of size or designation, are considered
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. Sani tary Sewer and Water Trunk Improvements. Trunk sewer and
water mains are usually larger than eight 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
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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 experience, a charge of $2,509
$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 $2,500 $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 will 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 Drainage Irrprovements..!,. 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, sh~l be assessed according to the area assessment
method. Storm water fees will be paid at tine of platting and/or
development in all zoning districts on net included acreage exclusive of
roadways and public ponding areas. Park land will be iflcluaca excluded for
the purpose of the assessment calculation. The rate will be computed on a
"per square foot" net lot basis according to the following schedule:
Zoning Classification
Rate
R-l, R-2 and R-4
R-3 and POD's with a
density greater than
5.5 units per acre
B-I, B-2, B-3, I-I
and 1-2
~i-4oe- cents/square foot
l2..s.5.. ~ cents/square foot
.2.O...l ~ 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 appl icable 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 eliqible for payment, the land area must exceed twenty-five percent of
the land area reauired for the developnent needs to inplement the Storm
Water Management Guide Plan. The land must also be capable of providing.
utilitarian use such as street and home sites.
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Ponds are considered an amenity to the development and must
conform to the intent of the storm Water Management Guide Plan.
A storm water tee will not be collected tor the pondinq area.
which are dedicated to the city. The City Engineer will
determine if the ponding areas meet the intent of the Storm
Water Management Guide Plan. The rate for storm water fees shall
be adjusted annually according to the Engineers' News Record
index.
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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:
l. Bridge improvements - lO years
2. Sidewalk improvements - 10 years
3. Street, curb and gutter - lO years
4. Street resurfacing - lO years
5. Sanitary sewer and water laterals - 20 years
6. Trunk acreage charge - 5 years
7. Storm sewer improvements - 10 years
8. Nuisance abatements - 1 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 (l'>
greater than the net interest rate of the bond issue. This is
necessary in order to ensure 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:
1. 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 within 30 days of the date of adoption of
the assessment roll.
3. Partial Payment - The property owner has a one-ti.e
opportuni ty to make a partial payment reduction ot any
amount against hiS/her assessment. This option may only be
exercised within the 30-day period immedIately following
adoption ot 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.
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5. Senior citizen Deferment - Any individual who is 65 year. of
age or older and can satisfy the property classification and
income criteria specified in City of Prior Lake Ordinance
86-03 may have their assessments deferred.
o. 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'. office
prior to the assessment hearing or presented to the presiding
officer at the hearing. The property owner may appeal an
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 upon 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 preliminary plat. Road right-Of-way within the proposed
street alignments will not be subject to assessment.
c. Tax Exemnt Property. Other than land under City ownership,
there are three categories of tax exempt properties. Said
properties shall be assessed as follows:
1. Churches and schools 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 un1es8
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 Property Assessments. City owned property is divided
into three classifications for the purpose of determining
assessment participation. They are:
1. Public facility land
2. Public right-Of-way
3 . Park land
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Public facility prof-erty ia defined aa land utilized for public
buildings such as c ty halls, fire halla, libraries, 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.
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 obj ectives
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 percent (25') of the
aggregate project area. Larger parks representing an area
greater than twenty-fIve percent (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
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consideration. In that event, the City may, upon notice and
hearing, assess all unplatted parcels according to thi. Policy
if the improvements are approved prior to hardshe1l consent of
the unplatted properties.
G. state Aid ParticiDation. 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 of one Council member, the City Manager, the City
Engineer and the City Finance Director.
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ADJUSTED FRONT FOOTAGE
ASSESSMENT
CONDOMINIUM
DRAINAGE DISTRICT
LATERAL
MULTI-FAMILY
NUISANCE ABATEMENTS
SECTION VI - DEFINITIONS
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.
The dollar amount charged against a
property receiving an improvement
benefit.
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.
An area defined by the City Engineer
which shall form the physical boundaries
where benefit exists within a storm
sewer proj ect. 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.
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.
A structure of more than two units, the
primary purpose of which is to provide
rental or leased living spaced to the
general public. Building characteristics
include common hallways for access
purposes and a common parking lot.
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.
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OVERSIZING
PUBLIC IMPROVEMENT
TOWNHOUSE
TRUNK
UTILITY IMPROVEMENT AREA
A pipe which is designed and constructed
larger and/or deeper than necessary to
serve a specific project area.
A proj ect undertaken by the City under
the authority granted in M.S.A. 429.021
for the purpose of installation of
improvements such as street, curb and
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 construction and
administration of the project.
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
properties are deemed to have been
served by an improvement project and are
considered to receive benefit.
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