ADMINISTRATION - Jon Haukaas, Director of Public Works
Title
AMENDING PUBLIC IMPROVEMENT SPECIAL ASSESSMENT POLICY
Background
City Councilmembers requested additional information regarding how some of our neighboring Cities, plus one other metro comparison city, assess benefitting properties for street reconstruction projects. The following information is being provided to help Councilmembers understand the various ways this is being done and determine what is the right assessment policy for the City of Blaine.
Blaine (current)
The current policy is to assess 25% of the construction costs of partial or full reconstruction projects to the benefitting residential properties. Commercial and Industrial properties are assessed at 50% or approximately $45 per front foot for partial reconstruction and $73 per front foot for full reconstruction. Assessment period is 10 years.
Blaine (proposed)
The proposed policy would increase that assessment to 50% of construction costs to residential properties. The increase to 66% for Commercial or Industrial properties equates to $60 per front foot for partial reconstruction and $96 per front foot for full reconstruction. Assessment period would become 15 years.
Overview of policies from neighboring Cities:
Andover
Residential properties are assessed at 25% of the project costs based on a standard street width for each of the various types of land use (residential, commercial, rural). Costs are apportioned on a per lot basis or front foot for larger, sub dividable or commercial/industrial lots.
The assessment period is 8 years.
Coon Rapids
Coon Rapids assessments are based on a 50% cost to the benefitting properties on a per lot basis. Coon Rapids has a standard street pavement depth of only 2 inches (City of Blaine Standard is a 3½” pavement thickness) and does not assess the costs for rebuilding the base material below the streets. Commercial properties are assessed at $52 per front foot and Industrial properties are assessed at $67 per front foot.
They assess prior to the project based on estimated pavement construction costs. The assessment period is 10 years.
Ham Lake
Ham Lake has a city wide levy to cover the costs of basic overlays and general maintenance. For new construction or reconstruction to current standards, they assesses street projects at 100% to the adjacent benefitting properties.
Lino Lakes
Lino Lakes requires any street reconstruction project to be approved by a referendum of the voters. Reconstruction costs would be an additional levy to all properties. They have not conducted any street reconstruction projects in many years.
Moundsview
Moundsview is considered fully built out. Moundsview chose to enact a city-wide tax levy to reconstruct all streets in a 10 year period. Moundsview has approximately 55 miles of city streets.
Spring Lake Park
Spring Lake Park assesses benefitting residential properties for 45% of the project cost divided on a per lot basis. Commercial and Industrial properties are assessed at the full 100% rate. Term of the assessment period is 10 years.
Other Metro Comparison Cities:
Plymouth
The City of Plymouth assesses benefitting residential properties at 40% of the street reconstruction costs. Commercial / Industrial properties are assessed at the same rate. The assessment period is 10 years for amounts less than $10,000 and 15 years for higher amounts.
Woodbury
Per the City’s current assessment policy, residential properties that have front yard frontage or private street/driveway access to a residential roadway being rehabilitated would be responsible for 33% of the street and storm sewer costs on a per residential lot basis. Commercial properties that have frontage on a rehabilitated roadway would be assigned 100% of the street and storm sewer costs. The assessment period is 15 years.
Direction needed from the City Council
Decide on a special assessment cost participation level (percent of project costs) for partial and full reconstruction street improvement projects.