HomeMy WebLinkAbout10C - Assessment Policy Amend
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
AL TERNA TIVES:
STAFF AGENDA REPORT
JUNE 2, 2003
10 C
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROVAL OF AMENDMENT TO CITY
ASSESSMENT POLICY
Introduction
The purpose for this agenda item is to consider the addition of a "net
area" definition within Section VI. of the City's Assessment Policy
for the purpose of computing contract development fees.
Current Circumstances
Included within the City's "Assessment Policy" is reference to the
application of various development related charges i.e., trunk
acreage, stormwater and collector street fees that are charged within
the context of a developers agreement when unplatted property
receives final plat approval. These are charged on a "net area" basis.
However there is no definition within the stated assessment policy
guide that clearly defines how the appropriate acreage is arrived at
for calculation purposes.
Since the Subdivision Ordinance was amended to incorporate a net
area definition for park land dedication it would also be appropriate
to incorporate the same definition for all other development fee
calculations to be consistent. As result Staff would recommend the
following language be inserted under the definition section within
the Assessment Policy Guide.
1. Page 20, Section VI - Definitions.
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. Street right-of-
way shall be inclusive. Any road right-of-way necessary
for County or State highway dedication and excess
collector street right-of-way shall be excluded for the
purpose of applicable area fee calculations"
I. A motion as part of the consent agenda to approve the revision
to the Assessment Policy Guide as proposed.
2. Take no action or direct staff to provide further information.
H: \ASSESS\Agendapolicyrevision.doc
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 I Ph. (952) 447-4230 I Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
RECOMMENDED
MOTION:
REVIEWED BY:
Attachments:
H: \ASSESS\Agendapolicyrevision.doc
Altemative #1 - a motion as part of the consent agenda to approve
the NET AREA FOR DEVELOPMENT FEE CALCULATION
definition amendment to City Assessment Policy Guide as
submitted.
CITY OF PRIOR LAKE
ASSESSMENT POLICY
FOR PUBLIC & DEVELOPMENT
INITIATED IMPROVEMENTS
Adopted by City Council
February 21, 1989
Revision Dates;
02/05/90
04/16/90
10/19/92
03/07/94
02/21/95
11/20/95
02/05/96
04/01/96
05/18/98
01/21/03
06/02/03
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 I Fax (952) 447-4245
H:IASSESSIPOLICYDOC
AN EQUAL OPPORTUNITY EMPLOYER
5/28/03
Section I.
Section II.
Section III.
Section IV.
Section V.
Section VI.
H:IASSESS\POLICY.DOC
ASSESSMENT POLICY STATEMENT
Table of Contents
Page
General Policy Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Methods of Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Improvement Type Application. . . . . . . . . . . . . . . . . . . . . . .11
Assessment Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
Supplemental Assessment Policy Guidelines. . . . . . . . . . . . .16
Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
5/28/03
City of Prior Lake
ASSESSMENT POLICY STATEMENT
FOR PUBLIC INITIATED IMPROVEMENTS
SECTION I - General Policy Statement
The purpose of this assessment policy is to determine a fair and equitable manner of recovering
and distributing the cost of public improvements. The procedures used by the City of Prior Lake
("City") for levying special assessments are those specified by Minnesota Statutes, Chapter 429,
which provide that all or a part of the cost of improvements may be assessed against benefiting
properties.
While establishing the authority by which communities may proceed to construct public facility
projects, the statutes provide no guide as to how costs 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
market value of the property being assessed. The entire project shall be considered as a whole
for the purpose of calculating and computing an assessment rate. In the event City staff has
doubt as to whether or not the costs of the project may exceed the special benefits to the
property, the City Council should obtain such appraisals as may be necessary to support the
proposed assessment.
The project cost shall include, but not be limited to the following:
a) Construction Cost
b) Engineering Fees
c) Administrative Fees
d) Right of Way Acquisition/Condemnation Costs
e) Legal Fees
f) Capitalized Interest
3
Initiation of public improvement projects can be undertaken by any of the three following ways.
A. Direct Action of the City Council- The City Council may decide an improvement is
necessary or desirable for the community.
B. Property Owner Petition - The City Council may decide on an improvement after
receiving a petition for said improvement by the owners of not less than thirty five
percent (35%) in frontage of the real property abutting on the streets named in the petition
as the location of the improvement. In addition, all owners of real property abutting upon
any street named as the location of any improvement may petition the City Council to
construct the improvement and to assess the entire cost against their property. In the
latter case, the City Council may, without a public hearing, adopt a resolution
determining such fact and ordering the improvement.
C. Developer Request - A developer who is the owner of all the property within the
proposed subdivision may petition the City Council to construct the improvement and to
assess the entire cost against the developer's property pursuant to Minnesota Statutes
Chapter 429. In such event, the City may, without a public hearing, adopt a resolution
determining such fact and ordering the improvement. However, a developer's agreement
shall be negotiated and executed prior to said authorization.
The City must recover the expense of installing public improvements, if undertaken, while
ensuring that each parcel pays its fair share of a project cost in accordance with these assessment
guidelines. While there is no 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, method of assessment, improvement type and correlating application, assessment
conditions and a supplementary guide section. A glossary section, devoted to specialized terms
and definitions, is included as an index. The Assessment Policy is intended to serve as a guide to
a systematic assessment process for the City of Prior Lake.
4
SECTION II - Methods of Assessments
The nature of an improvement determines the method of assessment. The objective is to choose
the assessment method, which will arrive at a reasonable, fair and equitable assessment, which
will be uniform upon the same class of property within the assessed area. The most frequently
recognized assessment methods are: the unit assessment, the front footage assessment and the
area assessment. DependinKupon the individual project, anyone or a combination ofthese
methods may be utilized to arrive at an appropriate cost distribution. City staffwill consider all
methods and weigh their applicability to the project. A description of each assessment and its
corresponding policy application is presented. Separate sections will identify the appropriate
matchup of method with a specific type ofproject and analyze why each is generally used.
A. Straight Unit Assessment A unit assessment shall be derived by dividing the total project
cost by the number of Residential Equivalent Density (RED) units in the project area. A
RED unit is defined as a single family residential unit. All platted and unplatted property
will be assigned RED unit values equivalent to the underlying zoning. When the existing
land use is less than the highest and best permitted use, the Council may consider the
current use as well as the full potential of land use in determining the appropriate number
of RED units. Otherwise, the following RED chart will apply on a per unit basis, subject
to adjustment by the Council for any inequities:
Single Family
Duplex
Condominium
Multifamily
Townhouse
Commercial
Industrial
1.00 RED
1.00 RED
0.80 RED
0.80 RED
1.00 RED
RED units = SAC units
RED units = SAC units
The unit approach has proven to be the best method in those instances whereby the
improvement largely benefits everybody to the same degree and the cost of the
improvement is not generally affected by parcel size.
B. Modified Unit Assessment This method is particularly applicable in a project whereby
the lots have an extreme variation in frontage from parcel to parcel. This method
establishes an assessment amount for the average size lot in the project area. This
assessment amount is than reduced or increased based upon how the specific lot differs
from the average. If the lot is smaller than the average, the assessment is reduced based
upon how much smaller the lot is. If the lot is larger, the assessment is increased
proportionately. Using the following calculation method, small lots will pay less than if
the straight unit method were used, but less than if the front footage method were used.
This provides a reasonable compromise for the very small and very large lots in a project.
The formula utilizes an adjustment factor that when applied to the lot size either adds to
or deducts from the base unit amount as illustrated below: This method has the potential
to equalize the assessment to a defined range, depending upon the adjustment factor
selected.
5
Formula
Ax = Au + K(Wx- Wa)
Definitions
Au = unit assessment
Wa average lot width
Wx = Specific lot width
K $ per foot adjustment as determined
Sample Assessment (50'vs. 150' lot)
Au $4,000
Wa 80'
Wx 50'
K $20
Ax $4000 + $20(50-80) ... $3400
Ax $4000 + $20(150-80) ... $5400
C. Area Assessment The assessable area shall be expressed in terms ofthe 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 City for the land under the
lake, pond or swamp if integrated into the storm water management system. If such
ponding easement is accepted based upon its functional integration into the storm water
management system, a reduction in area equal to the area of the easement for the lake,
pond or swamp will be subtracted from the gross acreage assessment of the parcel. Lots
utilizing a ponding area for the purpose of density credit shall be charged for that area
within the portion of the easement necessary to meet minimum lot standards.
2. Road Right-of-Way Assessment Consideration - Up to twenty percent (20%) of
the gross acreage may be deducted for street right-of-way purpose within unplatted
parcels offive (5) acres or more depending upon the parcel configuration. Parcels 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 ofless than five acres cannot support an
internal road system.
3. Park Dedication Assessment Consideration - When park land is dedicated as
part of a residential development, as required by the Park Comprehensive Plan, the
developer shall not be assessed an acreage charge on the portion of land dedicated.
D. Front Footage Assessment The actual physical dimensions of a parcel abutting an
improvement (ie., street, sewer, water, etc.) shall NOT be construed as the frontage
utilized to calculate the assessment for a particular parcel. Rather, an "adjusted front
footage" will be determined. The purpose of this method is to equalize assessment
calculations for lots of similar size. Individual parcels by their very nature, differ
considerably in shape and area. The following procedures will apply when calculating
6
adjusted front footages. The selection of the appropriate procedure will be determined by
the specific configuration of the parcel. All measurements will be scaled from available
plat and section maps and will be rounded down to the nearest foot dimension with any
excess fraction deleted. Categorical type descriptions are as follows:
1.) Standard Lots
2.) Rectangular Variation Lots
3. ) Triangular Lots
4.) Cul-de-sac Lots
5.) Curved Lots
6.) Irregularly Shaped Lots
7.) Corner Lots
8.) Flag Lots
9.) Double Frontage Lots
10.) Large Tracts
The ultimate objective of these procedures is to arrive at a fair and equitable distribution
of cost whereby consideration is given to lot size and all parcels are comparably assessed.
I. St::mn::ml Tot!': In this instance, the adjusted front footage for rectangular lots will be the
actual frontage of the lot. The frontage measured shall be the lot width at the front lot
line.
MA
50'
E
Adj. Front Footage
PYAMPT PS
Lot A-50'
Lot B - 90'
A B
2. Rp.~f:mgJ11::lr V::Jri::ttion T of!': For a lot, which is approximately rectangular, and uniform in
shape, the adjusted front footage is computed by averaging the front and back sides of the
lot. This method is used only where the divergence between front and rear lot lines is 20
feet or less.
Adj. Front Footage
PYA MPT.PS
Lot A - 100'
Lot B - 75'
3. Tri::Jngnl::Jr T of!': For a triangular shaped lot, the adjusted front footage is computed by
averaging the front and back lot lines. The measurement at the back lot width shall not
exceed a maximum distance in depth of 150 feet.
7
I
r
Adj. Front Footage
FYAMPT FS
Lot A - 70'
Lot B - 85'
Lot C - 60'
4. rlll-clp.-c::~r T ntc:: The adjusted front footage for those lots that exist on cul-de-sacs will
be calculated at the midsection of the lot at the most reasonably defined and determinable
position. This line will be computed by connecting the midpoints of the two side lot
lines. Or, if the lots are similar in nature and configuration, a common lot width may be
assigned based upon an evaluation of typical lots within the subdivision.
". A
;.5.;............~.
Aclj. Front Footage
FYAUP' FS
Lot A - 75'
Lot B - 110'
Lot C - 80'
5. rllTVf':cl T ,ntc:: In certain situations such as those where lots are located along meandering
trail system streets, road patterns create curvilinear 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.
Aclj. Front Footage
FYA up, FS
C
B 150'
...........9.0:.......... .............................................
A
70'
Lot A - 70'
Lot B - 90'
Lot C - 150'
6. Trrp.gJll~rly ~h~rp.cl T ntc:: In many cases, unplatted parcels that are legally described by a
metes and bounds description, are irregular and odd shaped. The adjusted front footage
will be calculated by measuring the lot width at the 25 foot building setback line.
8
Ad}. Front Footage
FYAMPT F.~
Lot A - 115'
Lot B - 140'
Lot C - 125'
MAIN A VENUE
25"
7. COrnp.T T ,ot"
a. Residentially Zoned Corner Lots The adjusted front footage will be assessed on
the short side. A 150 foot side lot allowance credit will apply along the adjacent side
street. Any remaining frontage will constitute an additional assessment. The short side
will be assessed in those cases where the improvement may exist on one side only as well
as for improvements abutting on both sides. Such corner lots shall only be assessed once
when the improvements abut the addressed side.
Ad}. Front Footage
PYAMPT PS
Lot A - 95'
Lot B - 225'
A 95"
125'
B
MAIN A VENUE
b. Commercial & Industrial Zoned Corner Lots No allowance relief will be
granted because of the higher inherent property value associated with improved traffic
frontage and greater visibility along business district and industrial park intersections.
The adjusted front footage calculation shall be the entire frontage measured along the
setback line comprising the building envelope.
9
Ad}. Front Footage
PYA MPT.PS
150"~5
A ~
..............1.~.Q.:...........j
25'
155'
MAIN A VENUE
I I
Lot A - 280'
Lot B - 390'
. ~ 5'
140'
. 115' B
......................................~?5..:....................................................
25'
300'
8. FI~g T ,ot" Properties which utilize a narrow private easement or maintain ownership of
such access to their property exceeding a minimum length of 125 feet, thereby having a
small frontage on a street, will be assigned an adjusted front footage of 86 feet. This
dimension is consistent with the subdivision ordinance, which prescribes such length as a
minimum lot frontage along a public roadway. The adjusted front footage for flag lots
whose driveway access is less than 125 feet will be measured at the building setback line
from the access terminus.
20 ' MAIN AVE.
90
50' B
Adj. Front Footage
P.J{ A UP T F'.S
. 140'
25'
Lot A - 86'
Lot B - 90'
IN
AV
A
170'
9. f)ol1hlp. Front~gp. T .of.. If a parcel, other than a comer lot, comprises frontage on two
streets and is eligible for subdivision, then an adjusted front footage assessment will be
charged along each street. For double frontage lots lacking the necessary depth for
subdivision, a single adjusted front footage only will be computed.
10
110'
A
80
B
275"
210"
110'
110'
10. T l'Irw" tr'l'Id.:: The first 150 feet for oversized residential parcels having large frontages
will be currently assessed. Remaining excess frontage will be deferred for a period of
five years to allow for planned and orderly development of the property. During the five-
year period simple interest will accrue at the rate established at the project assessment
hearing. The deferred assessments will automatically be called down and currently
certified on the property tax rolls upon hard shell approval by the City Council.
11
SECTION In - Improvement Type Application
A. Bridge Installation The project cost of a bridge is confined to a very limited and
restricted area. The benefit conferred to property owners bears little relationship to
property size. Rather the benefit is provided on an equal and proportionate basis to the
affected property owners. Therefore the unit assessment basis will be used as the most
representative and cost effective method of distribution.
B. 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 pay for such
improvements from the Collector Street Fund.
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 Resurfacing Street resurfacing is commonly known and referred to as street
overlaying whereby a new bed of road material such as bituminous is installed over an
existing paved road to a specific thickness or in the case where the bituminous pavement
has deteriorated to such a condition that complete reconstruction is necessary. (If street
construction is done over a non-bituminous surface i.e., gravel, sand etc., then the
assessment shall be for 100% of the total project cost.)
Street overlay and curb improvements of presently paved streets in the City of Prior Lake
shall be assessed at forty per cent (40%) of the total project cost against the benefiting
properties or a unit charge as determined by the City Council. The remaining sixty
percent (60%) shall be recovered by means of the general ad valorem property tax paid by
the entire community. All assessments shall be on a current basis and shall not be subject
to deferred classification.
E. Sealcoating Street Improvements Sealcoating shall be treated as a general maintenance
expense which shall be one hundred per cent (100%) supported by taxes through a special
levy spread over the entire City. No assessments will be associated with sea1coating.
F. Sanitary Sewer & Water Lateral Improvements All water and sewer lines, regardless of
size or designation, are considered as laterals to adjacent property. Lateral lines are
normally not larger than eight inches in diameter in most residential areas. For purpose
of specific benefit determination, the lateral cost of sewer and water improvements will
be assessed on an adjusted front footage basis.
G. Sanitary Sewer & Water Trunk Improvements Trunk sewer and water mains are usually
larger than 8 inches in diameter and are designed to carry larger volumes of flow than are
necessary within an immediate property area in order to serve additional service areas in
the City. The difference between a normal sized lateral and the actual sized trunk
represents "trunk oversizing". The cost in extra pipe sizing and depth shall be paid from
12
the City's Trunk System Reserve Fund. An acreage fee shall be determined by the City
Council to finance the City's Trunk System Reserve Fund. The rate for Trunk System
Water fees shall be adjusted annually according to the Engineering News Record Index.
All parcels within a utility improvement area shall be levied an area assessment charge as
determined by the City Council. 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, lateralloopings, 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 Improvements The fundamental concept underlying a storm
sewer assessment is that all land within a drainage area is considered to be benefited
because all land contributes water runoff to the system. Upon this premise the City
Engineer shall establish a drainage district within a storm sewer project basin and all
property, subject to Assessment Policy reductions, shall be assessed according to the area
assessment method. Storm Water Trunk fees will be paid at time of platting and/or
development in all zoning districts on net acreage exclusive of roadways and public
ponding areas. Properties will be considered exempt and not subject to a Storm Water
Trunk charge if all the following conditions occur:
1. Adequate on-site and off-site storm sewer facilities are available to serve the property
with respect to runoff capacity.
2. There is 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 acre" net lot basis as determined by the Storm Water
Fee Study adopted by the City Council.
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 for any additional right-of-way required for off-premises runoff
storage, as it relates to the specific site project, may be paid from the Trunk System
Reserve Fund, subject to topographical and/or unique runoff considerations. To be
eligible for payment, the land area must exceed twenty-five percent of the land area
required for the development needs to implement the Storm Water Management Guide
Plan. The land must also be capable of providing utilitarian use such as street and home
sites.
13
Ponds are considered an amenity to the development and must conform to the intent of
the Storm Water Management Guide Plan. A Storm Water Trunk fee will not be
collected for the ponding areas that are dedicated to the City. The City Engineer will
determine if the ponding areas meet the intent of the Storm Water Management Plan.
The rate for Storm Water Trunk fees shall be adjusted annually according to the
Engineering News Record Index.
I. Collector Street Improvements The City's designated Municipal State Aid system of
roadways has evolved into a network of collector streets that direct traffic to distribution
points connecting with central trunk arteries such as State and County highways. While
collector streets serve and benefit the entire community, certain aspects of construction
provide a more local impact upon a neighborhood and should be borne by that specific
area.
All collector pedestrian related improvements i.e., bikeways, sidewalks, trail systems plus
excess right of way are designated as area-wide beneficiaries. While actual costs
associated with construction of the collector street such as engineering, grading,
bituminous and curb and gutter installation are deemed to be reimbursable from MSA
funds.
To finance those collector street system costs not eligible for state aid an acreage fee is to
be collected at time of developer's agreement on all new subdivisions. The Collector
Street Fees are calculated as follows:
Development Acreage Fee
A net development acreage charge shall be due and payable at time of final plat approval
as determined by the City Council.
The developer shall dedicate up to maximum of 60 feet of right-of-way and the City will
reimburse any right-of-way in excess of 60 feet at a per acreage rate to be determined
annually by the City Council. The fees are to be dedicated to the Collector Street Fund
and are to be used for the purpose of reimbursement of excess ROW, collector street
improvements and pedestrian trail improvements associated with such MSA streets and
the City's municipal share of County road related trail improvements.
14
SECTION IV - ASSESSMENT CONDITIONS
A. Term of Assessments Special assessments shall be collected in equal annual installments
of principal for a period of years as indicated for the following types of improvements.
1. Bridge Improvements - 10 years
2. Sidewalk Improvements - 10 years
3. Street, Curb & Gutter - 10 years
4. Street Resurfacing - 10 years
5. Sanitary Sewer & Water Laterals - 20 years
6. Trunk Acreage Charge - 5 years
7. Storm Sewer Improvements - 10 years
8. Nuisance Abatements - 1 year
9. Delinquent Connection Fees, Utilities - I year
B. Interest Rate The interest rate charged on assessments for all projects financed by debt
issuance shall be one percent (1 %) greater than the net interest rate ofthe bond issue with
a minimum interest rate of 8%. This is necessary in order to insure adequate cash flow
when the City is unable to reinvest assessment prepayments at an interest rate sufficient
to meet the interest cost of debt or when the City experiences problems of payment
collection delinquencies. Interest on initial special assessment installments shall begin to
accrue from the date of the resolution adopting the assessment. Owners must be notified
by mail of any changes adopted by the City Council regarding interest rates or
prepayment requirements that 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 offwithin
30 days from the date of adoption ofthe assessment roll.
3. Partial Payment - The property owner has a one-time opportunity to make a partial
payment reduction of any amount against his/her assessment. This option may only be
exercised within the 30-day period immediately following adoption ofthe assessment
roll.
4. Prepayment - The property owner may at any time prior to December 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.
15
5. Senior Citizen Deferment - Any individual who is 65 years of age or older and can
satisfy the property classification and income criteria as specified in City of Prior Lake
Ordinance 86-03 may have their assessments deferred.
D. Appeal Procedures No appeal may be taken as to the amount of any assessment adopted
unless a written objection signed by the affected property owner is filed with the City
Manager's office prior to the assessment hearing or presented to the presiding officer at
the hearing. The property owner may appeal the assessment to District Court by serving
notice of the appeal upon the Mayor or City Manager within 30 days after the adoption of
the assessment and filing such notice with the District Court within lO 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 ofthe 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. 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 $1,000.00. 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.
F. Assessment Cost All such improvements described under Section IV (A) with the
exception of #4 (Street Resurfacing) shall be assessed 100% of the cost of improvements
not to exceed the original amount of benefit to the property at the time of original
installation. Replacement of such utility improvements will also be subj ect to 100%
assessment with the exception of #4 (Street Resurfacing).
16
SECTION V - Supplemental Assessment Policy Guidelines
A. Areas Partially Served By Utilities Any tract ofland, 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 proj ect 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 Exempt Property Other than land under City ownership, there are three categories of
tax exempt properties. Said properties shall be assessed as follows:
1. Church and school property shall be assessed in the same manner as commercial and
industrial zoned property, as long as the assessments do not exceed the special benefits
conferred. Acreage assessments shall be based upon the gross acreage of the site.
Adjusted front footage shall be similarly calculated along the building setback line in its
entirety.
2. State land is normally exempt from assessment unless otherwise negotiated or agreed
upon by the affected State agency.
3. County land is subject to assessment and shall be assessed in the same manner as
commercial and industrial zoned property, as long as the assessments do not exceed the
special benefits conferred.
D. Municipal 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
17
Public Facility property 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 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 objectives within residential
development and are passive in use as indicated by such features as playground
structures. Because neighborhood parks are commonly used by the immediate residents
of the area, such park land will not be assessed ifit comprises less than twenty-five (25%)
of the aggregate project area. Larger parks representing an area greater than twenty-five
(25%) of the aggregate project area shall participate in the assessment process in the same
manner as community parks.
3. "Parkland Dedication" is required either in the form of cash in lieu ofland 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 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.
F. First Serve Situations If the plans of the City and a developer coincide in regard to utility
installations on certain properties, the plans of the City shall receive first consideration.
In that event, the City may, upon notice and hearing, assess all unplatted parcels
according to this Policy if the improvements are approved prior to hardshell consent of
the unplatted properties.
G. State Aid Participation Residential lots abutting and having access to collector streets
(streets which are designated as part of the City's Municipal State Aid System and
qualify for state aid funding) shall be assessed the residential equivalent of a standard
City street, normally consisting of a 30 foot paved roadway within a 50 foot right-of-way.
This cost shall be determined by the City Engineer during the preparation of the
18
feasibility report. The difference in cost shall be reimbursed by applicable state aid funds
or other available city funding sources.
H. Assessment Review Committee Before any assessment hearing, a review committee will
be established by the City Council to assist staff in its evaluation of all properties in
accordance with this Policy and review the staff prepared proposed assessment rolls.
This committee shall consist of the City Manager, City Engineer, Finance Director and
two members of the city council appointed at the Council's annual January meeting.
19
ADJUSTED FRONT FOOTAGE
ASSESSMENT
CONDOMINIUM
DRAINAGE DISTRICT
LATERAL
MULTI-FAMILY
NET AREA FOR
DEVELOPMENT FEE
CALCULATION
NUISANCE ABATEMENTS
OVERS IZING
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.
A 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 district
shall be all 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 proj ect area.
A structure of more than two units, the primary purpose of
which is to provide rental or leased living space to the
general public. Building characteristics include common
hallways for access purposes and a common parking lot.
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. Street right-of-
way shall be inclusive. Any road right-of-way necessary for
County or State highway dedication shall be excluded for
the purpose of applicable area fee calculations.
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.
A pipe that is designed and constructed larger and/or deeper
than necessary to serve a specific project area.
20
PUBLIC IMPROVEMENT
TOWNHOUSE
TRUNK
UTILITY IMPROVEMENT
AREA
A project 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 & 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,
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. Trunk
sewer and water pipes are determined to be pipes greater
than 8" in diameter.
A defined area within which all area properties are deemed
to have been served by an improvement project and are
considered to receive benefit.
21