4.b) League of MN Cities Special Assessment and Trunk Area Policies and Procedures for Public Improvements and Maintenance Costs 00
j�EAGUE oF CONNECTING & INNOVATING
MINNESOTA SINCE 1913
CITIES
SPECIAL ASSESSMENT AND TRUNK AREA POLICIES AND PROCEDURES FOR
PUBLIC IMPROVEMENTS AND MAINTENANCE COSTS
This sample policy was compiled by
Ehlers &Associates Inc. at the request of
the League of Minnesota Cities.
SECTION 1. General Policy Statement.
SECTION 2. Improvements and Maintenance Costs Eligible for Special Assessment.
SECTION 3. Initiation of Public Improvement Projects.
SECTION 4. Public Improvement Procedures.
SECTION 5. Financing of Public Improvements.
SECTION 6. General Assessment Policies.
SECTION 7. Methods of Assessment.
SECTION 8. Standards for Public Improvement Projects.
SECTION 9. Policies of Reassessment.
SECTION 10. Assessment Computations.
SECTION 11. Deferment of Assessments.
SECTION 1. GENERAL POLICY STATEMENT.
The purpose of this policy is to establish a fair and equitable manner of assessing the increase in
market value (special benefit) associated with public improvements. The procedures used by the
City for levying special assessments are those specified by Minnesota Statutes, Chapter 429 which
provides that all or a part of the cost of improvements may be assessed against benefiting
properties.
Three basic criteria must be satisfied before a particular parcel can be assessed. The criteria are as
follows:
1. The land must have received special benefit from the improvement.
2. The amount of the assessment must not exceed the special benefit.
3. The assessment must be uniform in relation to the same class of property within the assessment
area.
It is important to recognize that the actual cost of extending an improvement past a particular
parcel is not the controlling factor in determining the amount to be assessed. However, in most
cases the method for assigning the value of the benefit received by the improvement, and therefore
the amount to be assessed, shall be the cost of providing the improvement. This shall be true
provided the cost does not demonstrably exceed the increase in the market value of the property
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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 may obtain such
appraisals as may be necessary to support the proposed assessment.
The assessment policy is intended to serve as a guide for a systematic assessment process in the
City. 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.
SECTION 2. IMPROVEMENTS AND MAINTENANCE COSTS ELIGIBLE FOR SPECIAL ASSESSMENT.
Subd. 1. The following public improvements and related acquisition, construction, extension, and
maintenance of such improvements2 authorized by Minnesota Statutes, Sections 429.021 and
459.14, subd. 7, are eligible for special assessment within the City:
1. Streets, sidewalks, pavement, curbs and gutters, including the beautification thereof.
2. Parking lots.
3. Water works systems and appurtenances, within and without the corporate limits.
4. Sanitary sewer and storm sewer systems including appurtenances, within and without the
corporate limits.
5. Street boulevard trees.
6. Street lights, street lighting systems and special lighting systems.
7. Steam heating mains.
8. Parks, playgrounds, and recreational facilities, including the purchase of equipment, within or
without the corporate limits.
9. Abatement of nuisances; including but not limited to, draining and filling swamps, marshes,
and ponds on public and private property.
10. Dikes and other flood control works.
11. Retaining walls and area walls.
12. A pedestrian skyway system upon a petition pursuant to section 429.031, subdivision
13. Underground pedestrian concourses.
14. Public malls, plazas or courtyards.
15. District heating systems.
16. Fire protection systems in existing buildings upon a petition pursuant to section 429.031,
subdivision 3.
17. Highway sound barriers.
18. Gas and electric distribution facilities.
Subd. 2. The City is also autharized by ordinance adopted pursuant to Minnesota Statutes Section
429.021 to recover, through special assessment, the following maintenance costs:
1. Snow, ice, or rubbish removal from sidewalks.
2. Weed elimination from streets or private property.
3. Removal or elimination of public health or safety hazards from private property excluding any
structure included under the provisions of Minnesota Statutes, sections 463.15 to 463.26.
4. Installation or repair of water service lines, street sprinkling, sweeping, or other dust treatment
of streets.
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5. The trimming and care of trees and the removal of unsound trees from any street.
6. The treatment and removal of insect infested or diseased trees on private property.
7. The repair of sidewalks and alleys.
8. The operation of a street lighting system.
9. The operation and maintenance of a fire protection or a pedestrian skyway system.
SECTION 3. INITIATION OF PUBLIC IMPROVEMENT PROJECTS.
Public improvement projects can be initiated in the following ways.
l. Public improvement projects may be initiated by petition of owners of at least 35% in frontage
of the property abutting the proposed improvement.
2. Public improvements also may be initiated by the City Council when, in its judgment, such
action is required.
3. A resolution ordering any improvements initiated by the Council or by owners of less than
35% of abutting property owners requires a four-fifths majority vote of all members of the
Council. A resolution ordering any improvements initiated by owners of not less than 35% of
abutting property owners requires a majority vote of all members of the Council. A resolution
ordering any improvements initiated by all owners of abutting property, and assessing the
entire cost against their property, may be adopted without a public hearing. The Council may
consider the request of a Developer to construct the improvements and assess them.
SECTION 4. PUBLIC IMPROVEMENT PROCEDURE.
The following is the general procedure followed by the City Council far all public improvement
projects from initiation of such a project through certification of the assessment roll to the County
Auditor. Formats for the various reports and resolutions referenced in this section are made a part
of the policies and procedures of the City.
1. Staff reviews petition or Developer's request for submission to Council.
2. Council accepts or rejects petition or request. If based upon a petition, the Council adopts a
resolution declaring whether the required percentage of property owners has signed. If the
petition or request is accepted, Council orders preparation of feasibility report.
3. Staff prepares feasibility report. The report shall preliminary evaluate whether the proposed
improvement is necessary, cost-effective, and feasible and whether it should be made as
proposed or in conjunction with another project. The report shall include an estimate of the
cost of the improvement as proposed. Council may refer the report to the Planning and Zoning
Commission.
4. Council accepts or rejects feasibility report. If accepted, Council orders public hearing on the
improvements.
5. Staff posts and publishes hearing notice and mails notices to affected property owners as
provided in Minn. Stat. § 429.031(a).
6. Council conducts public hearing.
7. Within six (6) months of the hearing date, Council adopts or rejects resolution ordering
improvement to be constructed and advertisement of bids. If adopted, staff prepares final plans,
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advertises for and opens bids as provided in Minn. Stat. § 429.041, prepares bid tabulation,
makes recommendation to City Council for award, and prepares proposed assessment roll.
Bonds to finance project costs may be issued at any time after the improvements are ordered.
8. Council reviews proposed assessment roll and orders assessment hearing.
9. Staff publishes hearing notice, mails notice of hearing date and proposed assessments to the
affected property owners as provided in Minn. Stat. § 429.061.
10. Council conducts assessment hearing and adopts, revises, or rejects resolution determining the
amount of the total expense the City will pay, if any, and establishing the assessment roll. If
adopted, Council authorizes certification of the assessment to the County Auditor.
11. Council awards contract based on the bids received.
12. Staff certifies the assessment roll to the County Auditor.
13. Staff supervises construction and prepares payments.
SECTION 5. FINANCING OF PUBLIC IMPROVEMENTS.
The City encourages public improvement projects as the area(s) benefiting and needing such
improvements develop. Examples of this policy can be seen through the subdivision regulations,
zoning ordinance, and building codes. Developers are required to provide the needed
improvements and services before development occurs, thereby avoiding unexpected hardships on
the property owners purchasing such property and the general public. However, it is recognized
that certain areas of the City have developed without all needed public improvements (e.g. parks,
water, sewer, and street improvements) and that methods must be found to provide these
improvements without causing undue hardships on the general public or the individual property
owner.
Special assessments are generally accepted as a means by which areas can obtain improvements or
services; however, the method of financing these is a critical factor to both the City and the
property owner. Full project costs spread over a very short term can cause an undue hardship on
the property owner and, likewise, city costs and systems costs spread over a long period of time
can produce and undue hardship on the general public of the City.
It is the policy of the City to not defer assessments except in cases where hardship to senior
citizens 65 years of age or older or persons retired by virtue of a permanent and total disability
would result. Also, the City Council may elect to defer assessments on undeveloped land for a
specified length of time or until the lands are developed. Terms and conditions of any such
deferral will be established in the resolution adopting the assessments.
SECTION 6. GENERAL ASSESSMENT POLICIES APPLICABLE TO ALL TYPES OF IMPROVEMENTS.
The cost of any improvement shall be assessed upon property by the improvements based upon
benefits received. The following general principles shall be used as a basis of the City's
assessment policy:
1. Project Cost. The "project cost"of an improvement includes the costs of all necessary
construction work required to accomplish the improvement, plus engineering, legal,
administrative, financing and other contingent costs, including acquisition of right-of-way and
other property. The finance charges include all costs of financing the project. These costs
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include but are not limited to financial consultant's fees, bond rating agency fee, bond
attorney's fees, and capitalized interest. The interest charged to the project shall be included as
financing charges.
2. City Cost. The "city cost" of an improvement is the amount of the total improvement expense
the City will pay as determined by Council resolution. Where the project cost of an
improvement is not entirely attributed to the need for service to the area served by said
improvement, or where unusual conditions beyond the control of the owners of the property in
the area served by the improvement would result would result in an inequitable distribution of
special assessments, ar for any other reason determined by the City, the City, through the use
of other funds, may pay such"city cost."
3. Assessable Cost. The "assessable cost" of an improvement is equal to the "project cost"
minus the "city cost."
4. Interest. The City will charge interest on special assessments at a rate specified in the
resolution approving the assessment ro1L If bonds were sold to finance the improvement
project,the interest rate shall be two percent (2%) more than the average interest rate of the
bonds, rounded to the nearest quarter of a percent. If no bonds were sold, the interest rate shall
be set at the same rate.
5. Prepayment. Property owners may pay their assessments in full interest free for a period of
30 days after the assessment hearing. After such period interest shall be computed from the
date specified in the assessment resolution. The City will transmit a certified duplicate of the
assessment roll with each installment, including interest, to the County Auditor, or in lieu of
such certification, annually certify to the County Auditor by November 30 in each year, the
total amount of installments of and interest on assessments on each parcel which are to become
due in the following year. Prior to certification of principal and interest or the first installment
thereof,to the County Auditor, a property owner may make a partial prepayment of the
principal to the City. Such partial prepayment must be at least $100.00. If the partial
prepayment is made after the 30-day"interest free"period allowed by state law, interest will be
charged on the amount of the partial prepayment from the date specified in the resolution and
paid along with the partial prepayment. After the City has made the first certification of
principal and interest to the County Auditor, prepayment will be accepted only for the total
amount still owing including interest and must be made prior to November 15 of any year. If a
parcel has two or more separate special assessments, prepayment of the remaining principal
balance may be made on one or more assessment totals. Tax-exempt parcels such as churches
and school properties may make only one partial prepayment to the first certification to the
County Auditor. The remaining principal after the partial prepayment will be paid in equal
installments over the remaining term of the special assessments.
6. Extensions. Where an improvement is designed for service of an area beyond that receiving
the initial benefit, the City may pay for increased project costs due to such provisions for future
service extensions. The City will levy assessments to cover this cost when a new improvement
is installed as an extension of the existing improvement upon identification of such additional
amount in the notice of hearing for the extensions or new improvements. As an alternative, the
City may assess these costs to the area of future benefit immediately.
7. Frontage Roads. Because frontage roads along highways or other arterial streets are deemed
to be of benefit to commercial or industrial properties,the entire costs of any improvement on
such frontage roads shall be assessable to the benefited properties, even if only those properties
on one side of such frontage roads are benefited.
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8. Project Assistance. If the City receives financial assistance from the Federal Government, the
State of Minnesota, the County, or from any other source to defray a portion of the costs of a
given improvement, such aid will be used first to reduce the "city cost" of the improvement. If
the financial assistance received is greater than the "city cost,"the remainder of the aid will be
placed in the Capital Improvement Fund to be applied towards other City projects.
9. Assessable Property. Property owned by the City and other political subdivisions including
municipal building sites, parks and playgrounds, but not including public streets, alleys, and
right-of-way, shall be regarded as being assessable on the same basis as if such property was
privately owned. Private right-of-way shall be assessable.
10. Individual Benefits. The City must construct improvements specifically designed for or
shown to be of benefit solely to one or more properties. The costs for these improvements will
be assessed directly to such properties, and not included in the assessments for the remainder
of the project. An example of this would be utility service lines running from the main lines to
the property.
11. Benefit Appraisals. In the event that city staff has doubt as to whether or not the proposed
assessments exceed the special benefits to the property in question, the City Council may order
benefit appraisals as deemed necessary to support the proposed assessments. As a general rule,
benefit appraisals may be ordered when the proposed assessment exceeds $5,000 for a standard
city reconstruction on a residential lot or$20,000 per acre for commercial or industrial
property.
12. Condemnation Awards. A property owner may elect to offset special assessments against
condemnation awards. In such case, the property owner must execute an agreement(Net
Assessment Agreement) with the City Council.
SECTION 7. METHODS OF ASSESSMENT.
Subd. 1. General Statement. There are different methods of assessment: per lot, adjusted front
foot, and area. The feasibility report will recommend one or a combination of these methods for
each project, based upon which method would best reflect the benefit received for the area to be
assessed. The City Council will select the preferred method of calculating the assessments at the
time the project is ordered.
Subd. 2. Policy Statement. The following methods of assessment, as described and defined
below, are hereby established as methods of assessment in the City.
A. "Adjusted Front Footage"Method of Assessment.
The "cost per adjusted front foot"method of assessment shall be based on the quotient of the
"assessable cost" divided by the total assessable frontage benefiting from the improvement. For
the purpose of determining the "assessable frontage," all properties, including governmental
agencies, shall have their frontages included in such calculation.
The actual physical dimensions of a parcel abutting an improvement (i.e., street, sewer, water, etc.)
shall not be construed as the frontage utilized to calculate the assessment for a particular parcel.
Rather, and"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 adjusted
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front footage. The selection of the appropriate procedure will be determined by the specified
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.
1. Rectangular Interior Lots. The rectangular lot is defined as having no more than 2.0 feet
difference between the front and rear lot lines. The adjusted front footage is the actual front
footage of the lot. For rectangular lots whose frontage is greater than its depth, the "odd
shaped lot"method shall be used.
2. Odd Shaped Lots. For odd shaped lots such as exist on cul-de-sacs and curved streets where
there is more than 2.0 feet of difference between the front and rear lot lines, and where the lots
frontage is greater than its depth, the "odd shaped lot" method of determining the adjusted
front footage shall be used. The adjusted front footage shall be computed by dividing the area
of the lot by 12,000 square feet to determine the equivalent number of front footage units in the
parcel. The number of units multiplied by 65 feet will give the adjusted front footage.
3. Corner Lot Adjustment. For street and trail assessments, the short side will be assessed the
actual front footage. The long side will be assessed one-half the actual side footage or seventy-
five (75) feet, whichever is greater. Sanitary sewer and watermain will only be assessed on the
short side of a corner lot.
4. Zonal Assessment. When the street along the long side of a corner lot is improved,the cost
shall be assessed equally to all lots within '/2 block in each direction of the street improved.
This method may be selected rather than the corner lot adjusted.
B. "Area"Method ofAssessment.
The "area"method of assessment shall be based on the number of square feet or acres within the
boundaries of the appropriate property lines of the areas benefiting from the project. The
assessment rate (i.e., cost per square foot) shall be calculated by dividing the total assessable cost
by the total assessable area. On large lots, the City Engineer may determine that only a portion of
the lots receives the benefit and my select a lot depth for the calculations equal to the benefit
received.
All properties included in the benefited area, including other governmental areas, churches, etc.,
shall be assessable. The following items may not be included in area calculations: public right-of-
ways, and natural waterways, swamps and lakes and other wetlands designated by the Minnesota
Department of Natural Resources or the City. The City Engineer will make a recommendation on
the boundaries or parameters of the benefited area in the feasibility report.
C. "Per Lot"Method of Assessment.
The "per lot" method of assessment shall be based on equal assessment of all lots within the
benefited area. The "assessment per lot" shall be the quotient of the "assessable cost" divided by
the total assessable lots or parcels benefiting from the improvement. For the purpose of
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determining the "lots" or"parcels" all parcels, including governmental agencies, shall be included
in such calculations.
SECTION 8. STANDARDS FOR PUBLIC IMPROVEMENT PROJECTS.
The following standards are hereby established by the City to provide a uniform guide for
improvements within the City.
A. Surface Improvements
Surface improvements shall normally include all improvements visible on or above the ground
within the right-of-way, and includes, but is not limited to trees, lighting, sidewalks, signing; street
and accessory improvements such as drainage ponds and facilities,parking lots, parks and
playgrounds.
Policy Statement. Prior to construction or completion of surface improvements, all utilities and
utility service lines (including sanitary sewers, storm sewers, water lines, gas and electric service)
shall be installed to all planned service locations such as residences or buildings.
When practicable, no surface improvements to less than both sides of a full block of street shall be
approved except as necessary to complete partially completed improvements initiated previously.
Concrete curbing or curb and gutter shall be installed at the same time as street surfacing.
B. Sub-Surface Improvements
Subsurface improvements shall normally include such items as water distribution, sanitary sewer
and storm sewer lines and electric and gas utilities.
Main lines are the publicly owned and maintained lines or facilities such as trunk lines,
interceptors, mains, and laterals. Service lines are those privately owned lines or facilities
extending from the main line to the property line.
Policy Statement. Sub-surface improvements shall be made to serve cunent and projected land
use. All installations shall conform to applicable standards established by local, state and/or
federal agencies of competent jurisdiction. All installations shall also comply, to the maximum
extent feasible, with nationally recognized standards such as those of the American Insurance
Association.
Service lines from the lateral or trunk to the property line of all planned service locations such as
residences or buildings shall be installed in conjunction with the construction of the mains.
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SECTION 9. POLICIES OF REASSESSMENT.
The City shall design public improvements to last for a definite period. The life expectancy or
service life shall be as stated in the policy statement of this section, or if different, shall be as
stated in the resolution ordering improvement and preparation of plans.
A. Policy Statement
The following are the "life expectancies" or"service lives" of public improvements except as may
be otherwise stated in the resolution ordering improvement and preparation of plans.
1. Sidewalks - 20 years.
2. Street improvements, including surfacing and curb and gutter - 20 years.
3. Ornamental street lighting - 20 years.
4. Water Mains - 20 years.
5. Sanitary Sewers - 30 years.
6. Storm Sewers - 30 years.
SECTION 10. ASSESSMENT COMPUTATIONS.
The following is the typical city assessment for various specified improvements.
A. Street and Curb and Gutter Improvements
1. New Constructions. New streets are assessed 100%to the abutting benefited properties.
Street and curb and gutter improvements will normally be assessed by the adjusted front foot
method, however other methods may be utilized if conditions warrant. Cost of construction of
streets shall be assessed based on the minimum design of 7-ton axle load in residential areas
and 9-ton axle load in commercial and industrial areas. Oversizing costs which are incurred in
excess of the above may be paid by: (1) State funds, (2) larger assessment rates to other
benefited properties, (3) general obligation funds, or(4) any other method or combination of
methods authorized by the City Council.
2. Reconstruction and Overlays. Street reconstructions and overlays are assessed 30%to the
abutting benefited properties. New curb and gutter are 100% assessed.
3. Grave!Streets. Upgrading of existing gravel street by adding pavement, curb and gutter is
considered new construction and all costs are assessed 100%.
4. Seal Coats. Sealcoats are not being assessed.
5. Alleys. Upgrading existing gravel alleys by adding pavement is assessed 100%to all lots
abutting on the alley in the block being improved. Reconstructing existing paved alleys are
100% assessed also.
B. Sidewalks and Trails
1. New Construction. New sidewalks are assessed 100%to the abutting property on which the
sidewalk is located.
2. Reconstruction. Replacement sidewalks are assessed 50%to the abutting property owner and
50% City funded.
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3. Trails. Bituminous walkways and/or bicycle trails are not assessed, but rather funded by the
City. New subdivisions are assessed 100% for bituminous walkways/bicycle trails.
C. Storm Sewer Improvements
Storm sewers are assessed on a project-by-project basis. Storm sewers in new subdivisions are
considered an assessable improvement on an area basis.
Oversizing costs due to larger mains and larger appurtenances are paid for by a combination of
availability charges, user charges and/or trunk area assessment charges. Trunk area storm sewer
charges are levied to all unplatted property at the time of platting, to re-plats that have not been
charged trunk area charges when the land was originally platted, and to re-plats that have been
charged trunk area charges when the land was originally platted but where the use is increasing
(only the cost difference based on current and prior use is charged). The charges will be set in the
annual fee schedule during the first City Council meeting in January of each year.
Normally, storm sewers are assessed on an area wide basis (square foot ar acres), but in certain
situations the per lot method or adjusted front method may be utilized at the City Council's
discretion.
The replacement of existing storm sewers is assessed 30%with the remaining costs paid for by
other funding sources identified by the City Council.
D. Sanitary Sewer Assessments
Assessments for sanitary sewer in residential areas are based upon the cost of construction of 8
inch mains, which is the smallest size installed in residential areas of the City. Assessments for
sanitary sewers in commercial and industrial areas are based upon a standard size of 12-inch
mains.
Oversizing costs due to larger mains and larger appurtenances will be paid for by a combination of
availability charges, user charges and/or trunk area assessment charges. Trunk area sanitary sewer
charges shall be leave to all un-platted property at the time of platting and to re-plats that have not
been charged trunk area charges when the land was originally platted. The charges will be set in
the annual fee schedule during the first City Council meeting in January of each year. Services
installed to individual properties are fully assessed to the benefiting property.
Normally, sanitary sewers are assessed on an area wide basis (square foot or acres), but in certain
situations the per lot method or adjusted front method may be utilized at the City Council's
discretion.
Lateral benefit from major trunk sewers or interceptors is assessed to the properties benefited by
the sewer. Any oversizing cost is assessed as described above.
The replacement of existing sewers is assessed 30% with the remaining costs paid for by other
funding sources identified by the City Council.
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Individual service lines installed directly to specified properties are fully assessed directly to the
benefited properties. Properties that have existing sanitary services, but do not have mainline
sewers adjacent, across or up to their property lines pay 50% of the assessment rate for the new
mainline sanitary sewer as well as 100% of the cost associated with replacing the service lines.
Any existing service lines found to be defective as part of a street reconstruction are replaced as
part of the project and assessed directly to the property.
E. Watermain Assessments
Assessments for watermains in residential areas are based upon the cost of construction of 8 inch
mains, which is the smallest size installed in residential areas of the City. Assessments for
watermains in commercial and industrial areas are based upon the standard size of 12-inch mains.
Oversizing costs due to larger mains and larger appurtenance are paid for by a combination of
availability charges, user charges and/or trunk area assessment charges.
Trunk area water charges shall be levied to all un-platted property at the time of platting and to re-
plats that have not been charged trunk area charges when the land was originally platted. The
charges will be set in the annual fee schedule during the first City Council meeting in January of
each year. Services installed to individual properties shall be fully assessed to the benefiting
property.
Normally, watermains are assessed on a per lot basis, but in certain situations the area or adjusted
front method may be utilized at the City Council's discretion.
The replacement of existing watermains is assessed 30%.
Lateral benefit from major trunk water mains is assessed to properties benefited by the water main.
Lateral water main assessments are be based on the costs for an equivalent 8" diameter water main
for residential properties and for an equivalent 12" diameter water main for residential properties
and for an equivalent 12" diameter water main for commercial/industrial properties.
Individual service lines installed directly to specified properties are fully assessed directly to the
benefited properties. Properties that have existing water services, but do not have mainline
watermains adjacent, across or up to their property lines pay 50% of the assessment rate for the
new watermain as well as 100% of the cost associated with replacing the service lines.
Any existing service lines found to be defective as part of the project, are assessed directly to the
property.
F. Street Boulevard Trees
All street boulevard trees installed as part of new street constructions or in reconstructing existing
streets shall be included as part of the overall project costs included in the assessment calculations.
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G. Street Lights
All costs for new streetlights installed as part of constructing new streets or streetlights relocated
as part of reconstructing streets are included in the overall project costs and included in the
assessment calculations. In new subdivisions, the City may require the developer to finance street
light improvement rather than assessing the cost.
H. Other Improvements
Based on the City Council determination, any other improvements may be fully assessed or
assessed in part.
SECTION 11. DEFERMENT OF SPECIAL ASSESSMENTS.
Subd. 1. The Council may defer the payment of any special assessment on homestead property
owned by a person who is 65 years of age or older, or who is retired by virtue of permanent and
total disability, and the City Clerk is hereby authorized to record the deferment of special
assessments where the following conditions are met:
1. The applicant must apply for the deferment not later than 90 days after the assessment is
adopted by the City Council.
2. The applicant must be 65 years of age or older or retired by virtue of permanent and total
disability.
3. The applicant must be the owner of the property.
4. The applicant must occupy the property as his principal place of residence.
5. The average annual payment for assessments levied against the subject property exceed one
percent of the adjusted gross income of the applicant as evidenced by the applicant's most
recent federal income tax return. The average annual payment of an assessment shall be the
total cost of the assessment divided by the number of years over which it is spread.
Subd. 2. The deferment shall be granted for as long a period of time as the hardship exists and the
conditions aforementioned have been met. However, it shall be the duty of the applicant to notify
the City Clerk of any change in his status that would affect eligibility for deferment.
Subd. 3. The entire amount of deferred special assessments shall be due within sixty days after
loss of eligibility by the applicant If the special assessment is not paid within the sixty (60) days,
the City Clerk shall add thereto interest at a per annum interest rate of two percent (2%) above the
bond interest rate and the total amount of principal and interest shall be certified to the County
Auditor for collection with taxes the following year. Should the applicant demonstrate to the
satisfaction of the Council, that full repayment of the deferred special assessment would cause the
applicant particular undue financial hardship, the Council may order that the applicant pay within
sixty days a sum equal to the number of installments of deferred special assessments outstanding
and unpaid to date, including principal and interest, with the balance thereafter paid according to
the terms and conditions of the original special assessments.
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.
Subd. 4. The option to defer the payment of special assessments shall terminate and all amounts
accumulated plus applicable interest shall become due upon the occurrence of any one of the
following:
1. The death of the owner when there is no spouse who is eligible for deferment.
2. The sale, transfer or subdivision of all or any part of the property.
3. Loss of homestead status on the property.
4. Determination by the Council for any reason that immediate or partial payment would impose
no hardship.
State Law References(s): Minn. Stat. § 435.193, Senior Citizens or retired & disabled persons
hardship special assessment deferral.
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