OTHER BUSINESS - Jon Haukaas, Director of Public Works
Title
AMENDING PUBLIC IMPROVEMENT SPECIAL ASSESSMENT POLICY
Background
City Council held a long discussion regarding the various components of the City of Blaine Special Assessment Policy at its January 17, 2019 Workshop. There was general consensus on a number of parts yet remained divided on the cost share percentage for residential properties.
Funding for street improvement projects are received from either the Special Assessments levied to the benefitting properties or through a tax levy. The amount of cost share through assessment inversely affects the amount of levy necessary to fund the projects, i.e. a higher assessed cost share results in a lower levy required and vice versa.
The Councilmembers present at the meeting voted to adopt the new Policy with a 35% cost share to the benefitting properties. The motion to adopt the Resolution failed as Charter requires an affirmative four votes of all members for approval.
The Mayor has called a Special Meeting to revisit the Policy with a proposed cost share to benefitting residential properties at 40%.
Areas of consensus included:
• Adjusting the Assessments for Mill and Overlay Projects and Pavement Replacement Projects to a ‘per lot’ calculation for single family residential property and a five year assessment period
• Adjusted the costs for Pavement Replacement projects to reflect current construction costs
• Adjusting the Assessment period for partial or full reconstruction projects from 10 years to 15 years
• Maintain the cost share for commercial/industrial/multi-family residential at 50%
• Adopting a number of language updates in the Policy as detailed below.
§ Add “All properties of a similar nature on an improvement project will be grouped together for purposes of calculating assessments using the Unit Method. As such there may be differing unit assessments on an improvement project based on the different property types present.” to Section III.6.b Unit Method.
§ Change “will” to “may” in “Such lots may be measured and assessed on their average width, with the lot width at the setback line taken into consideration where appropriate” in Section III.6.c Front Footage Method.
§ Add “condominiums or townhomes” to the sentence “In addition, corner Industrial and Commercial properties, multi-family residential properties of 5 units/acre or greater density (i.e. apartments, condominiums or townhomes), and manufactured home parks will be assessed for any improvement on each side abutting the property” in Section III.6.c Front Footage Method
§ Add “Individually owned properties, i.e. “condominiums” or “townhomes” located on a common owned parcel will be assessed by taking the front footage of the common owned parcel and dividing it equally amongst the individually owned condominiums or townhomes.” to Section III.6.c Front Footage Method.
§ Add “For improvement projects where there are multiple condominium or townhome common owned parcels, a hybrid Front Footage/Unit Method may be used where the total of all common owned parcel front footages is divided equally amongst all of the condominiums or townhomes.” to Section III.6.c Front Footage Method.
§ Add “Minnesota State Law, Chapter 435 provides a municipality the authority to defer special assessments for property under certain hard ship criteria.” Add “property owner who is a senior citizen, a person with permanent total disability, or on active military service…” in Section III.9.
§ Add “The property has frontage abutting the street.” to Section IV.6.d.
§ Add “when assessed on the long side.” To the sentence “Corner lots will be assessed for each street abutting the property. A 150 foot corner lot credit will be given on the long side of the property when assessed on the long side.” in Section IV.6.d.
Recommended Council Action
By motion, adopt the Resolution to amend the Special Assessment Policy.
Body
WHEREAS, on May 2, 1991, City Council approved Resolution No. 91-53 adopting a Public Improvement Special Assessment Policy in order to standardize procedures for determining special assessments for City Council authorized public improvement projects; and
WHEREAS, subsequent amendments were adopted in September 1991, February 1995, April 1999, October 2010, May 2012 and August 2012 which were incorporated into the adopted policy; and
WHEREAS, the City Council has determined that it is in the public interest to operate a Pavement Management Policy to maintain City streets in a cost-efficient manner and provide the public with functional, safe and efficient travel; and
WHEREAS, the continued operation of a Pavement Management Policy requires changes and updates to the existing Public Improvement Special Assessment Policy.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Blaine to amend the adopted Public Improvement Special Assessment Policy as follows:
1. Adjust the assessment rate to 35% for single family residential properties on all reconstruction projects.
2. Adjust the term of the assessments for reconstruction projects to 15 years.
3. Establish a flat rate assessment of $1,400.00 per lot for single family residential and $27.00 per front foot for commercial/industrial/high density residential properties for bituminous replacement projects for the 2019 construction year and then index for inflation yearly.
4. Adopt the proposed language changes to the Special Assessment Policy.
PASSED by the City Council of the City of Blaine this 24th day of January, 2019.