HomeMy WebLinkAbout[02] Assessment PolicyAJI�"' ,tom
C"Y of ST. jolt PH
MEETING DATE: April 7 2011
Council Agenda Item 7(a)
AGENDA ITEM: Ordinance Amendment — Assessment Policy
SUBMITTED BY: Administration
BOARD /COMMISSION /COMMITTEE RECOMMENDATION: The City Staff has been working on a
formal assessment policy for a number of months. The assessment policy is intended as guide and
includes general provisions for preparing an assessment roll.
PREVIOUS COUNCIL ACTION: The Council requested the staff prepare a formal assessment policy for
possible adoption. A draft policy was presented to the Council and additional information was
requested. It was suggested that the policy
BACKGROUND INFORMATION: When the policy was drafted samples from other Cities were used as a
foundation with the current practices of St. Joseph included. When the Council reviewed the first draft
a question was raised about the vagueness or terminology that allows for deviation. Included in this
packet is a compilation of statements from other cities polices that indicate the policy is intended as a
guide.
BUDGET /FISCAL IMPACT:
ATTACHMENTS: Request for Council Action ........................ 7(a):1 -2
Draft Assessment Policy ............................ 7(a):3 -12
Summary of guide language ..................... 7(a):13 -16
REQUESTED COUNCIL ACTION: Provide direction to staff
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Draft 28 March 2011
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City of St. Joseph, PO Bbx 558, St. Joseph MN $6374
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II.
III,
IV
V.
TABLE OF CONTENTS
Special Assessment Policy Goals ...... ............................... 2
Surface Improvements ......................
Subsurface Improvements ............
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Section I. Special Assessment Policy Goals
The goals of the City's special assessment policies and procedures are as follows:
1. In combination with federal, state, county, and other local financial resources available to the
City, provide a stable and continuing source of funding within the financial capacity of the City to
accommodate infrastructure needs for new development, redevelopment, and maintenance
within the existing community in the most cost - effective manner.
9
3
4.
5.
1.1
7.
Balance needs and costs for new and existing infrastructure ,ALsupport and promote economic
development and growth as well as maintenance within fisting community by providing for
the equitable distribution of infrastructure costs toe at specific developments are
financially self - supporting to the extent warrante
To provide a comprehensive, well- construc well- maintai frastructure system that
provides service to individual properties es advantage of ec es on a regional scale
and flexibility in the timing of infrastructur elopment.�
To be responsive to communit eds and desirim
mobility provided by new infra and the m
To function in harmony with the ClWcorYM
the infrastructure
safety, welfare',Vessibility, and
of existing infrastructure.
Nft growth area plans by providing
ans by promoting orderly growth
reasonable cost.
and methods to efficiently distribute
equitable and consistent manner thereby
kalue of the improvements to the properties
r1ftanagement of municipal services to support a highly
d syslWf infrastructure which promotes economic
ters a sense of pride throughout the community, and facilitates
n of short and long range capital improvement plans by identifying
funding available.
The special assessment polic intended to be a working document designed to guide the actions of the
City Council and program activities of City staff. Although the special assessment policies and
procedures are intended to provide for the equitable distribution of costs proportionate to the benefits
accruing to each improved property, the methods, in and of themselves, do not guarantee against
challenges, successful or not, to the special assessments derived from them.
The City recognizes that this policy cannot cover every situation. The Council must therefore use its
judgment in applying this policy, sometimes on a case by case basis, in order to assess benefitted
properties in a fair and equitable manner.
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Section 11 Definitions
Assessable costs —Those costs of public improvements that have been determined to benefit specific
properties. The assessed cost will be equal to the project costs minus the City cost. Project costs
eligible for assessment include all costs associated with the improvements, including, but not limited to,
land acquisition, demolition, construction, administration, engineering, legal, financing and other costs
as determined by the City Council.
Adiusted Front Footage: A modified lineal front footage designed to compensate for atypical frontage of
irregularly shaped lots and corner lots to make apportionment of ments more equitable. The
adjusted front footage may be greater than or less than the ac nt footage.
Assessment Rate —The assessment rate is determined by
improvement by the total number of assessment unit;
footage, acreage, number of lots, or number of
City Costs — Those project costs that the City paysl
public improvement project and those project costs
Front Frontage — The distance measu
improvement.
Lot Definitions:
ble costs of an
ted front footage or square
ing property on a
directly abuts or benefits from an
butting on one street and an opposite line
rate non - intersecting or intersecting streets
►t abTWg a curved street, cul -de -sac, or other lot where there is
rence in length between the front and back lot lines.
A lot with less than five feet of difference in length between the
f. Side Lot Footage —In the case of corner lots, the longest distance measured along the
property line shall be considered the side of the lot, regardless of the address the
orientation of the building on the lot, or the driveway location.
Proiect Costs: All costs incurred or estimated costs anticipated to be incurred to complete the project
including land acquisition, construction, engineering, legal, administrative, financing and any contingent
costs.
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Rural Street Design— A road that is usually paved or hard surfaced without curb and gutter.
Special Assessment —A charge that is imposed on real property to help pay for a local improvement that
benefit the property being charged.
Urban Street Design — A road that is constructed with the use of curb and gutter.
Section III General Assessment Policies
It has been and continues to be the policy of the City of St. Joseph
improvements (such as street and utilities) are constructed provi
costs shall be levied against the benefiting properties. Thi
and levying costs against benefitting properties shall be th Chapter 429. MN Statutes Chapter 429 provide that al , of
when infrastructure
t nefit to an affected area, those
for constructing improvements
ed as Minnesota Statutes,
t of an improvement may be
assessed against benefitting properties in accordan the benefits ed. The Statute does not
define a guide as to how the benefits are measur ow the costs are to k ed. Therefore,
the City Council shall use the Assessment Policy as a for fairl ryand equitioning costs for
City improvements.
A.
Public improvements projects maA
majority vote of t ouncil. If
owners, the o it a
found in App A of this y_
consideration, th
Co ill i
fected property owners or by a
�by the affected property
ministrator using the form
reviewed and accepted for
ing of the improvement.
ve a vial useful life expectancy. Below is a listing of
pleted by the City of St. Joseph with the anticipated life
Street vements
a) Bitum Stre erlay — 10 years
b) Bitumino econstruction /Construction —15 years
c) Concrete Cur nd Gutter -25 years
d) Sidewalks— 25 years
e) Alley— residential— 15 years
f) Alley —commercial —15 years
2. Subsurface Improvements
a) Water mains —40 years
b) Sewer sewers —40 years
c) Storm sewers —40 years
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A
When any existing improvement is ordered to be renewed or replaced, the assessment to be
levied therefore will be the proportionate share of the costs based on the ratio of the age of the
existing improvement to the useable life expectancy of the improvement.
Assessment Polices
Where an improvement is constructed which is of benefit to properties within a defined area, it
is the intent of the City Council that special assessments be levied against the benefited
properties within the area to the extent that the costs of such project can be deemed to benefit
the properties. A&
1. The "project costs" of an improvement shall ?nting entto include the costs of all land
acquisition, construction work required to ac h provement, plus engineering,
legal, administrative, financing, and any o
FA
Where the project costs of an impro
service to the area served by said imp
control of the owners of the property in
an inequitable distributio cial as!
will pay such "City cost" wh p
not directly attributable to th a
ar e not entirely at ble to the need for
ent, or where unusua .to beyond the
a se y the impro t would result in
n ity, through the u f other funds,
I of y Council, represents the excess cost
N vernrRlWr State of Minnesota, or
c given improvement, such aid will
iprovem t. If the financial assistance
the remainder of the aid will be used to
nefiting properties, such reductions to be
Wrovement shall be defined as being those costs which, in
nci attributable to the need for service in the area served by
;sessa a costs" shall be equal to the "project costs" of the
"City costs" minus any other financial assistance credited as
City -owned pro s, including municipal building sites, parks, and playgrounds, but not
including public streets and alleys, shall be regarded as being assessable on the same basis
as if such property were privately owned.
6. The term "lot" as used in this policy statement shall that as defined in section II of this
policy.
7. The Council may hold the assessment hearing and adopt the assessment roll prior to, or
following, the installation of public improvements. If the assessment roll is adopted prior to
the installation of public improvements then, in that case, the Council may waive the
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interest payment thereon for the period between the date of the adoption of the
assessment roll and October 31 of the same year. If the assessment is adopted after
October 1 of a calendar year, the assessment shall be due within 30 days of adoption.
8. The Council will consider assessment terms (length of repayment and interest rate) for each
proposed project. Deferments are available in accordance with MN Statute 429.
Section IV Surface Improvements
Surface improvements shall include grading and base
and resurfacing.
A.
Assessment Formula for Surface Improvements
The assessment to be levied against pro
those properties on the basis of the folk
The assessable unit to be assessed for
by the City Council, shall be ased on 1
improvements, such "fron all k
For rectangular interior
of the lot abutting the ii
For rect nthe
short o
the lot For irregul
,walks, curb and gutter, surfacing
ben areas shall be distributed to
P ments, un therwise specified
e property. F ace
follows:
ual to the dimensions of the side
equ the sum of 100% of the
�t 50% of the long side footage of
shall be equal to the average width of
g lot , ' rontage" shall be determined by the specific
W-
and on an adjusted front footage" basis. The adjusted front
kt g an area -to- frontage ration representative of the area
ots of the special assessment improvement area.
In cases the Ci uncil determines that the assessable costs would be more
equitably dis cluding those instances where agreement can be reached between
the City and the oper of a subdivision), the assessable unit may be the "lot" (i.e. — a
uniform "per lot" assessment). Nothing is this policy shall prohibit the City Council from
considering other distributions formulas provided they distribute the "assessment cost"
equitably.
2. The following general provisions shall be used as a guide in distributing the costs of a surface
improvement:
a) If the improvement is constructed as the result of a new subdivision, the entire cost of
the improvement shall be assessable against properties within the subdivision.
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Q
C)
If the improvement is constructed on properties annexed to the City, where an
infrastructure project has not previously been assessed, the abutting properties owners
shall be assessed the entire cost of the improvements, unless the Council determines
otherwise.
If the improvement is constructed in an area that has previously been assessed for
improvements, the benefiting property shall be assessed 60 percent of the total project
costs, with the City paying 40 percent, unless the Council determines otherwise.
However, if the improvement includes the construction of new curb and gutter versus
replacing curb and gutter, the benefiting property s I be responsible for 100% of the
curb and gutter costs.
On Municipal State Aid or County State Aid S provement projects, assessments
shall be levied against these properties w p ents of the type constructed
have not previously existed. The prof s s shall b ated as identified in Section
IV (3) B of this policy.
The following provisions shall ap new sidewalk installa rojects in developed
single - family residential areas: AL
If the sidewalk imo
improvement shall
If the sidewalk imp
impro cost
If t
the
i new subdivision, the
eloper.
o petition of affected property
ffected property owners.
will be assessed 90 percent of the
-cial and industrial areas shall be
taI PIWt costs.
ting future development shall be held by the City as a
Fd in MN Statute 429 and will become payable at the
pecified by the City Council at the adoption of the
assessed unless cause exits to deviate from this policy.
Section V Subsurface Improvements
Subsurface improvements shall include water distribution lines, sanitary sewer lines, and storm sewer
and drainage infrastructure.
A. Standards for Subsurface Improvements
Subsurface improvements shall be made to serve current and projected land use.
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B. Assessment Formula for Subsurface Improvements
The assessment to be levied against properties within the benefited areas shall be distributed to
those properties on the basis of the following provisions:
1. The "assessment rate" to be applied shall be equal to the "assessable costs" of the project
divided by the total number of assessable units benefited by the improvement.
2. The assessable unit to be used for all subsurface improvements, unless otherwise specified
by the City Council, shall be each buildable lot benefittiWrom the improvement.
For large platted or unplatted lots, the subsu
units based on an equivalent basis using an a
frontage ratio prevalent in the normal lot*
served.
3. The following general provisions sha
improvements:
a) If the improvement is 1
the entire cost of the in
subdivision served with
1)
shall be computed by establishing
e ratio representative of the area
sment improvement area
subsurface
ns of the City,
ble against properties within the
I!w subdivision that are
rovide complete water (including
ivision shall be the cost of the
discretion may enter into an agreement
nnections to the oversized service. The City
Sri establish a service area for the improvements
ursed, the amount collected shall be surrendered
ater main o nitary sewer extensions initiated by the City shall be
Nne nat sessed to current and future benefiting properties based on a per
one unit charged for each residential equivalent as described in St.
Ordinance 44. Charges for undeveloped property shall be charged a
trunk charge and will become payable at the time service is requested. If the area
to be assessed contains a disproportionate amount of undevelopable property, the
City Council will consider alternative unit charges which will be proportionate to all
benefitting properties.
3) If the improvement is accomplished in a previously platted or developed area with
multiple properties, the assessable costs shall be divided equally among all
benefiting properties, establishing a per unit charge.
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If the project area includes large platted or unplatted properties, the benefits shall
be computed on an equivalent basis using an area -to- frontage ratio representative
of the area -to- frontage ratio prevalent in the normal lots in the area to be served.
The City Council may consider alternative calculation methods for establishing the
trunk charge.
4) On projects which involve the reconstruction or replacement of existing sanitary
sewer, water main or storm drain utilities within single - family residential areas, the
assessment rate to be applied against each
percent of the per full unit charge.
ual property shall be equal to 60
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Special Assessment Policy Guidelines
Summary of General Statements
City of Robbinsdale - Section I: General Policy Statement
"This assessment policy is intended to serve as a guide for the systematic assessment process in
the City of Robbinsdale."
City of Rochester — None
City of Victoria — Section I: General Policy Statement
"This assessment policy is intended to serve as a guide for a systematic process in the City of
Victoria."
"There may be exceptions to the policy or unique circumstances or situations that may require
special consideration and discretion by City Staff and the City Council."
City of Annandale — Section I: Purpose
"There may be exceptions to the policy or unique circumstances or situations which may require
special consideration and discretion by City Staff and the City Council."
"The assessment policy is intended to serve as a guide for a systematic assessment in the City of
Annandale."
City of Champlin — Section I: General
"The purpose of this assessment manual is to set forth a guide to be utilized by the Engineering
Department when preparing assessment rolls for approval by the City Council so as to assure
uniform and consistent treatment to the various properties from year to year."
City of Circle Pines — Section 2: Intent
"This policy should be viewed as a starting point for conducting assessments for public
improvement projects."
"When applying this assessment policy, the City Council reserves the right to adjust the policy as
to achieve a more equitable distribution. This may occur in the event that the literal application
of the provisions outlined herein would result in an inequitable distribution of special
assessments.
The City maintains the right to apply this policy differently for the purposes of fairness and
equity. IT should also be noted that any errors or omissions in this policy are not to be held
against the City of Circle Pines."
City of Maplewood — Section 2.0: Introduction
"While the special assessments goals, policies and procedures have been identified, herein, the
City Council has the authority to deviate from this policy when such rationale in equity arises or
when the law or statutes require such deviation."
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City of Sauk Rapids — Section 2(A): General Statement
"The City recognizes that this policy cannot cover every situation. The Council must therefore
use its judgment in applying this policy, sometimes on a case by case basis, in order to assess
benefitted properties in a fair and equitable manner."
City of Edina — None
City of Hugo —
"WHEREAS, the City Council intends that these policies not be construed as exclusive but instead
to provide general guidelines for addressing assessments in the City, and in enacting these
policies, the City Council acknowledges that special cases and variations may be required based
on the particular facts present in any given situation."
City of Moorhead — Section 1: Special Assessment Policy Goals
"The special assessment policy is intended to be a working document designed to guide the
actions of the City Council and program activities of City Staff. Although the special assessment
policies and procedures are intended to provide for the equitable distribution of costs
proportionate to the benefits accruing to each improved property, the methods, in and of
themselves, do not guarantee against challenges, successful or not, to the special assessments
derived from them. The true measure of benefits resulting from public improvements is the
increase in market value of land as a result of the improvement."
City of Northfield — Article I: General Sec 66 -1
"Where a project includes unusual or extraordinary circumstances or conditions, the council
may, in its discretion, vary from the standards of this chapter in order to accommodate such
circumstances or conditions in a fair and reasonable manner."
City of Red Wing — Section I: General Policy Statement
"There may be exceptions to the policy or unique circumstances or situations that may require
special consideration and discretion by City Staff and the City Council."
"This assessment policy is intended to serve as a guide for a systematic assessment process in
the City of Red Wing."
City of Pine City — Section I: General Policy Statement
"There may be exceptions to the policy or unique circumstances or situations that may require
special consideration and discretion by City Staff and the City Council."
"This assessment policy is intended to serve as a guide for a systematic assessment process in
the City of Pine City."
City of Cold Spring — Section I(C): General Policy Statement — Cost to the General Public
"There may be exceptions to the policy or unique circumstances or situations which may require
special consideration and discretion by City staff and the City Council. The City Council reserves
the right to vary from these policies if the policies act to create obvious difficulty because of an
extreme and unusual situation which is unlikely to occur in the future, or if such variance is
deemed to be in the best interests of the City."
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City of Becker — Section 1(C): General Policy
"This policy takes into account past practice, equity, revenue productivity, and consideration of
the best interests of the community."
City of St. Cloud — Resolution — BE IT FURTHER RESOLVED....
"...that in the event the literal application of the provisions outlined herein would result in an
inequitable distribution of special assessments, the City Council may, by a two - thirds (2/3) vote,
adjust the policy so as to achieve a more equitable distribution, without formal amendment of
this resolution."
City of Rockville — Section I: General Policy Statement
"The purpose of this assessment policy is to establish a fair and equitable manner of recovery
and distributing the cost of public improvements. These assessment policies are designed to
serve only as a general guide for the City Council in allocating benefits to properties for the
purpose of defraying the cost of installing public facilities."
"There may be exceptions to the policy or unique circumstances or situations which may require
special consideration and discretion by City staff and the City Council. The City Council reserves
the right to vary from these policies if the policies act to create obvious difficulty because of an
extreme and unusual situation which is unlikely to occur in the future, or if such variance is
deemed to be in the best interests of the City.
City of Albert lea — Introduction
"In view of the foregoing, it has been deemed desirable to set forth the general assessment
methods and policies practiced in the City of Albert Lea. It is emphasized that the following
summarization is general in nature, and that certain circumstances may justify deviations from
stated policy, as determined by City Council."
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