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HomeMy WebLinkAbout2.c. Assessment PolicyCITY OF ROSEMOUNT ASSESSM]EWMIPROVEMENT POLICY I F.13 re I D1 I March 18, 1992 CIIT OF ROSSIMM POLICY TT -TLE: ASSZSSHMJT/n1PR0VMG= POLICr POLICY NUMBER: An - 4 PROPOSED- BY: ADM=STRATION DATE APPROVED Narch 17, 1992 BY CITY COUNCIL: — — — — — — — — — — — — — — — — — — — — PU OSE The purpose of the policy is to provide a program for the reconstruction of streets, sanitary sewer, water, stormwater and provides a equitable assessment approach so that an assessed property will pay an equitable amount on each project no matter what other funding sources are available. POLICY The following "Assessment/Improvement Policyff sets forth the methods and policies relating to local improvements and special assessments practiced in the City of Rosemount. W-"010-4 TABLE OF CONTIMITS Sectiou Page I Preface Page 2 Introduction Page 3 Definitions Page 4 Policies and Procedures Page 4 111. Project Initiation & Hearing Process Page 7 IV. Construction Standards Page 9 Useful Service Life Page 9 V. New Development Improvements Page 12 V1. Existing Development Improvements Page 14 V1. 1. Method of Payment Page 15 V11. Assessment Deferment Policy Appendix A Pg 18 19 20 21 Five Year Street Reconstruction Program Appendix A Pg 22 Structural Maintenance Appendix A Pg 23 Street Reconstruction Appendix A Pg 24 Residential Street Equivalent Estimate CITY OF ROSEMOUNT POLICY AD - 4 This policy is the basis for, and plays an integral part in, the long range construction and reconstruction of streets, sanitary sewer, water, stormwater and trail improvements in the City of Rosemount. in construction of such improvements it is necessary to consider two basic issues: one is the improvement needed, and two, how will it be paid for. The City is entering a new era in regards to these types of improvements. Sections of the City are still developing with new residential, commercial and industrial developments which require utilities and streets. At the same time a section of the City is ageing and the infrastructure has aged and deteriorated such that it needs major upgrading and replacement. in new developments the cost of making such improvements can generally be born by the developer and development agreements where the costs are assessed over a rather short period of time and no additional burden is placed on the rest of the taxpayers. In older areas which are already developed, this may not be the case. When existing infrastructure is replaced after those improvements have "lived their normal life" the replacement costs may become such a burden to the property owners that those costs may be unacceptable and to assess all of these costs may prove difficult. Therefore, the City is attempting to develop a "Reconstruction" program utilizing revenue sources from several areas including: 1. Assessments 2. Minnesota State Aids for Highway Improvements 3. Sanitary Sewer Connection Charges 4. water Utility Connection Charges S. Stormwater utility user fees & connection charges 6. General Taxes. This concept, wherein revenues from various sources will be "pooled" to develop a reconstruction fund, allows assessments to be generated on a more equitable and consistent basis and still not create an extreme burden on the property owners. it also allows the City as a whole to share in the responsibility to maintain and protect the entire infrastructure for city services. 1 CITY OF ROSEMOUNT POLICY AD - 4 The policy which follows outlines most specifically as to how improvements are initiated, how they are designed and finally how they are funded. This approach is taken so that those involved in improvement projects will be able to comprehend the approach taken and how they are to be charged for the benefit they receive through the improvement process. INTRODUCTION This document sets forth the methods and policies relating to local improvements and special assessments practiced in the City of Rosemount. it is emphasized that the following summarization is general in nature and that certain circumstances may justify deviations from stated policy as determined by the Rosemount City Council. A local improvement involves one or more of the following types of improvements: Roadway grading and base Bituminous surfacing Curb and gutter Sidewalks, trails and driveways Water trunklines and laterals Sanitary sewer trunklines and laterals Service connections Storm sewer trunks, laterals and ponds Street Lighting All appropriate appurtenances associated with the above improvements Improvements are classified as follows: 1. New Developments - The construction of improvements related to newly developed areas, normally made in conjunction with the plat approval process. 2. Reconstruction - see definitions (Section I.1) 3. Rehabilitation - see definitions (Section 1.2) 4. Preventive Maintenance - see definitions (Section 1.3) S. Extensions - Construction of improvements generally made to extend services to a certain area. Extensions normally pertain to water, sanitary sewer and Storm sewer trunks. 2 The special assessment is a of Rosemount as a means to improvements to benefitted over a number of years. CITY OF ROSEMOUNT POLICY AD - 4 financing tool employed by the allocate the cost of specific properties and to spread those city costs Minnesota Statues Chapter 429 regulates the procedure f or the construction and financing of local improvement projects when at least part of the cost is defrayed by special assessments. Special assessments are collected from the property owner along with real estate taxes. When an improvement is of benefit to certain areas, it is the intent of the Council that special assessments be levied against benefitted properties. A major goal of this document is that special assessments be allocated and levied in an equitable and consistent manner. SECTIQN I DEFINITIONS 1. RECONSTRUCTION - will be defined as a project whereby all meaningful elements of an improvement are being removed and replaced. This would include curb and gutter, sidewalks, trail, bituminous or concrete pavement, granular base, water mains, sewer mains, laterals, curb boxes and items appurtenant to these elements. 2. RMIABILITATION - will be defined as a project in which one or more of the aforementioned elements is modified or supplemented in-place, to restore the serviceability of the entire improvements, such as bituminous overlays. 3. PREVENTATIVE KAM1TEKANCE - will be defined as work that involves a level of effort less than that involved in reconstruction or rehabilitation, the intent of which is to extend the life of the existing improvement. Preventative maintenance will include but not be limited to crack filling, patching, milling and cold planing, and seal coating. 3 CITY OF ROSEMOUNT POLICY AD - 4 The following are general principles, policies and procedures applicable to all types of improvement: 1. Project costs shall include the cost of all necessary construction work required to accomplish the improvement, plus engineering, legal, financing, easement acquisition and contingency costs. 2. Assessable costs are project costs minus the City and County share and other credits. MSA funds will not be credited to offset assessments as they will be utilized in a revenue pool fund to offset total reconstruction program costs. 3. Special assessments will be levied as soon as practical. Normally this will be within one year after completion of the project. 4. Publicly owned properties, including but not limited to municipal building sites, schools, parks, County, State and Federal building sites, but not including public streets and alleys, are regarded as being assessable on the same basis as if such property were privately owned. 5. Revenue sources for these types of improvements will be many, including, but not limited to assessments, MSA Funds, core facility funds and general tax levies. This policy determines an eauitable assessment approach such that thg property will pay an "equivalent" amount on each project no matter what other funding sources are available. SECTION III SPECIFIC POLICIES Project Initiation --and Hearing Process This section describes the initiation of improvement projects and the administration required to receive final City Council action, pursuant to the requirements of MSA 429. A. Project Initiation 1. By Petition: Petitions for initiating improvements will be prepared by City staff upon request. Such petitions, 4 CITY OF ROSEMOUNT POLICY AD - 4 circulated by the affected property owners should bear the signatures of the property owners of Sit or more, of the benefitted property(ies). When projects are initiated through this process the costs of doing engineering feasibility studies and associated project consideration costs will be born by the property owner so petitioning. If the project proceeds through construction and assessment those costs will be considered project costs under Section 11.1 above. if the project does not proceed through construction these costs will be billed back to the property owners petitioning or will be recorded for future project costs consideration at which time the project is concluded. Determination of the method of cost recovery will be made by the City Council. 2. By Council Action: If the Council determines that an improvement is in the best interest of the City, it can, without petition, initiate the improvement with a four/fifths vote of the Council. 3. By 100k Signed Petition: When a petition is signed by 100* of the property owners benefitted by the improvement, and there is no City cost participation, the Council may order the improvement without holding an improvement hearing. 4. By Development Contract: improvement projects for new development will only be considered upon execution of a developers agreement signed by 100t of the benefitted property owners. -The Council may order the project without a public hearing. S. Projects may be petitioned or initiated by City Council at any time during the year, but projects which are initiated after February ist will not be scheduled for construction until the construction season of the following year. The normal time required for receiving petitions, processing, scheduling hearings and preparing construction documents is six months. B. Hearing Process 1. improvement Hearing: After a petition is filed and its adequacy determined, or the Council initiates the project, the City Engineer is directed to study and report as to the 5 CITY OF ROSEMOUNT POLICY AD - 4 feasibility of the improvement. If after reviewing the feasibility report, the Council feels the project has merit, a public hearing is scheduled, notice published twice, and all persons benefitted by the project notified in writing. When an improvement project is to be financed by the sale of improvement bonds, there is a statutory requirement that at least 20k of the total costs of the project be assessed against the benefitted properties. If after the improvement hearing, at which all persons are heard, the Council feels that the project still has merit, then the Council will authorize the preparation of necessary plans and specifications, and upon receipt and acceptance of those plans, will authorize the advertisement for bids, by resolution, for the construction of the project. C. Final Hearing (Assessment) After the improvement is ordered and bids received and the improvement is completed, an assessment roll will be prepared and the affected property owners will be mailed a Notice of the Assessment Hearing stating the time and date that an assessment hearing will be held. The prepared assessment roll will be posted at the City Hall for review prior to the assessment hearing. All interested parties shall have an opportunity to be heard regarding the proposed assessment. Necessary and proper adjustment to the assessment roll can be made by Council at the time the hearing is being held. If an appeal is made regarding the amount of the special assessment, written notice must be filed with the Council prior to or at the assessment hearing. After the hearing, the assessment roll is adopted by the Council. The property owners have a 30 day period in which to pay their assessment in part or in full at the City Hall, interest free. After this period, the assessment begins to accumulate interest. On or before the date as determined by the County of each year, the assessment roll is certified to the County Auditor's office where it is added to the tax roll for the following year. The assessment shall be levied over a period to be established by the City Council, in equal annual installments on the principal with interest due and payable on the declining balance. The annual interest rate shall also be established by the City Council upon the sale of the improvement bonds. 6 CITY OF ROSM40UNT POLICY AD - 4 SECTION CONSTR=ION STAMUM AND MCPZ== LIFE Construction Standar&s and E2Mected Lif e-MinimuM Desicm Standards. The following are minimum design standards applied to the design and construction of improvements in the City of Rosemount and are for reference to this policy. The design and construction Of improvements will be completed referencing City Construction and Engineering Guidelines and Minnesota Department of Transportation Reference Book dated 1988 as amended. Sanitary sewer and water mains will be designed and constructed per the standard for "Sewage and Waterworks" as established by the "Great Lakes Upper Mississippi Board" (GLUM) and the City Engineer's Association of Minnesota. Design and construction Of such improvements may be enhanced as is determined by the City Engineer to serve areas being serviced. A. Sanitary Sewer Laterals Minimum 8" pVC (.SDR35), (SDR26), or DIP, (CL52). B. Sanitary Sewer Services Minimum 40 pVC (SDR26) C. Water Main Lateral Minimum 6" loop or as determined by the City Engineer D. water main services 1. Single Family Residences - Minimum 10 Type K copper. 2. multiple Family Residences - To be determined by City Engineer based on Minnesota State Plumbing Code. 3. Commercial/Industrial - To be determined by City Engineer based on Minnesota State Plumbing Code. E. Storm Sewer System Lateral pipe and catch basin size shall be designed to handle a 10 year event and trunk facilities shall be 7 CITY OF ROSEMOUNT POLICY AD - 4 designed to handle a 100 year event as determined by the City Engineer. F. Sidewalks, Trails and Bikeways Concrete - 5 1 wide with 6" sand base - 4" thick (6" thick at driveways) Bituminous - 81 wide (2341) Bit. with 6" CLS, 100 percent crushed rock and 2" Bit. All trails and sidewalks will be located 11 off property line, pedestrian ramps and curb drops will be installed according to MNDOT Standards. G. Streets AG, AG -P and RR Zones - minimum 241 edge to edge, 41 gravel shoulders, rural ditch cross section and 7 ton pavement - or - minimum 281 back of curb to back of curb, urban cross section with concrete curb and 7 ton pavement (no street parking). In certain cases bituminous curb will be allowed and considered temporary. RL, Ri & R2 Zones - minimum 321 back of curb to back of curb, urban cross section, with concrete curb & gutter and 7 ton pavement. R-3 & R-4 Zones - minimum 371 back of curb to back of curb, urban cross section, with concrete curb & gutter and 9 ton pavement. Commercial Zones - 371 minimum, 491 maximum back of curb to back of curb, urban cross section, with concrete curb and gutter and 9 ton pavement as determined by the city Engineer. WM and Industrial Zone - 371 minimum, 491 maximum back of curb to back of curb, urban cross section, with concrete curb and gutter and 9 ton pavement as determined by the City Engineer. Public Zone - Churches, government offices and primary schools - 37, back of curb to back of curb, urban cross section, with concrete curb and gutter and 7 ton pavement; secondary and post -secondary schools: 491 back of curb to back of curb, urban cross section, with concrete curb and gutter and 9 ton pavement. 8 CITY OF ROSEMOUM POLICY AD - 4 public improvements are judged to have a normal useful life expectancy. For the purpose of this policy, this 1 . ife expectancy - shall be as follows: A. Surface Improvements Concrete Curb and Gutter 30 years Bituminous Roadways 20 years Pedestrian Walkways - Concrete 30 years Pedestrian Walkways - Bituminous 20 years B. Subsurface Improvements Water Main 50 years Sanitary Sewer �50 years Storm Sewer 50 years When any existing improvement is ordered to be reconstructed or replaced as defined under Section 1, the assessments to be levied will be prorated from 0% at one-half life expectancy to 100% at full life expectancy as noted above or beyond. SECTION V pTjBLIC IMpgoyM�MS__ IN_ -NEW DMLOPVMMS General Progedures and Policies City Code requires execution of a development contract at the time of land platting. The developer's agreement normally references means and methods of providing for public improvement construction. As a standard, the City of Rosemount has pursued policies by which all costs Of improvement are directly attributable and fully paid by cost allocation or assessments against the development, developer or properties requiring and benefiting by the improvement. The policies are established with the intent that no developmental costs are incurred by existing lots or parcels, by the existing residents, or by the City in general. The exception is for improvements which are determined to have an area wide benefit which exceeds the scope of the development. 9 CITY OF ROSEMOUNT POLICY AD - 4 At the time of platting, the cost responsibilities for any development for trunk improvements shall be defined. This responsibility includes trunk sanitary sewer facilities, trunk water facilities (including source, supply, storage and distribution components), storm water drainage and control facilities, arterial street, park dedication, pedestrian walkway systems and other public improvements, existing or proposed, of an area wide benefit. Normally the City will require a cash payment by the developer for the development's share of improvements for an area wide benefit. The amount to be determined by the City Council. At the time of platting, the development contract may provide details on construction and timing of local or lateral improvements of various nature for the benefit and improvement of the individual properties as required by the Rosemount Subdivision Ordinance. City Improvement Financing and Construction As a general policy, the City of Rosemount will assist developers in the financing and construction of public improvements through authority granted to the City by Chapter 429 of Minnesota Statutes. Such assistance is granted by specific Council action for each development proposal based on perception by the Council of the project, viability, and development benefit to the City. The City may elect to sell bonds for such improvement and assess the costs of bond retirement against individual benefitted land parcels for a period of repayment 3-5 years or as otherwise determined by Council. Typically, the total project costs for improvements benefiting the development will be assessed on an equal basis against all buildable lots in the development. For such City assessed developments and improvements, the City, through the development contract, requires a 60t down payment, cash escrow or letter of credit to protect the City from potential project default, and requires assessment payment concurrent with building permit issuance or per the assessment payment schedule whichever comes first. For such City assisted projects, the City provides design, contract administration and assessment roll processing, legal, fiscal and administrative services and charges costs for those services back to the project. Im CITY OF ROSEMOUNT POLICY AD - 4 WS No public improvements may take place before a development contract has been executed. A private developer may have his plans prepared by other than City forces under the following conditions: 1. All plans, drawings, specifications and related documents required shall be prepared by a professional engineer, registered in the State of Minn sota and approved by the city. 2. The developer must keep the City informed as to the time table of development and design, the letting date of a construction contract, and the starting date of construction work. 3. In order to warrant the construction for the life expectancy as previously set forth, the City will provide inspection of all phases of construction as set forth in the contract documents at the developer's cost. 4. The City of Rosemount may perform such engineering and contract administration services which include, but are not limited to, construction surveys, staking and other engineering services when requested by the contractor or developer. The city will also assist the contractor in interpretation of the contract documents, ordinances, codes and other items necessary to meet the criteria as established by the City of Rosemount. s. No public improvement work shall be performed by any developer or other private party in City right of way or easement unless a development contract has been executed and the final construction plans have been approved by the City. 6. The city will require a surety deposit of 100t of the estimated project costs in the form of cash, escrow deposit, or irrevocable letter of credit. The City and its representatives shall at all times have access to the work in order to complete the services as herein provided, and the developer shall give the City timely notice of his readiness for inspections or other work to be rendered. Permits, licenses and easements or permanent changes in existing facilities shall be secured and paid for by the developer. The developer shall be charged for these services, and the value of the services shall be determined on a percentage basis as 11 CITY OF ROSEMOUNT POLICY AD - 4 agreed upon by the developer and the City before the project is started. The fee for City administration services is set annually by resolution of the City Council. Upon proper completion of sanitary sewers, storm sewers, water mains, curb and gutter, roadway base, surfacing and pedestrian walkway by the developer, the City will accept said improvements by resolution under a two (2) year guarantee to the City. SECTION VI IMPROVEMENTS IN EXISTING DEVELOPMENTS (RECONSTRUCTION/REHABILITATION) A. Initiation Improvements may be initiated by petition or by City Council as set out in Section III -A-1. B. Reconstruction and rehabilitation work proceeding under the terms of this policy shall provide for the standards set out in Section IV. A -G. C. Computation of Assessable Costs Property Cost Assessable Allocation - Assessable costs will be allocated to properties based upon their zoning designation at the time of the improvement. The "current" cost for constructing the improvement in Section IV. A -G. will be determined using actual bid prices for those units averaged over the previous two years as constructed by the City plus the last 12 months change in the ECI (Engineering Construction Index). D. Determining Assessment Method to Use 1. Front Footage Assessment - The front footage assessment method will be used on all multiple land use projects. That is, if an improvement project affects parcels that are not zoned similarly the front footage method will be used. 2. Unit Assessment - Where a project affects parcels which are all zoned similarly, the Unit Assessment method will be applied. 12 CITY OF ROSEMOU= POLICY AD - 4 E. Front Footage Method - Calculation of Assessment 1. Assessable costs will be determined by multiplying the lessor of the following by the assessable front footage for the parcel. a. The actual "current" cost, as determined in Section VI C., per front foot abutting the parcel for the improvement being made, or b. The corresponding "current" cost, as determined in Section VI C., based upon the design criteria for the use identified in Section IV. 2. Assessable front footage for each parcel is equal to the lessor of: a. The actual front footage of the parcel abutting the project. b. The minimum lot size front footage required times the number of lots into which the parcel can be divided according to the provisions of the zoning ordinance and subdivision ordinance. Where the zoning ordinance does not stipulate a minimum front footage for a lot the actual front footage of the benefitting parcel will be used. (Public, C-2, IP, WM & IG) F. Unit Method - Calculation of Assessment 1. Assessable costs will be the lessor of the following: a. The actual "current" cost, as determined in Section VI C. of the improvement, or b. The "current" cost, as determined in Section VI c., for constructing the improvement according to the design criteria as described in Section IV. 2. Unit assessments for each parcel will be determined by first: determining how many total units are assessable based on how the parcels can be subdivided according to the provisions of the Zoning and Subdivision Ordinances and the number of access points allowed to city, county and state highways/streets, then dividing the assessable (F.1 a or b above) cost by the total number of units which can be developed then multiplying that by each parcels' developable units to get the parcels' assessable cost. 13 CITY OF ROSEMOUNT POLICY AD - 4 G. The City will obtain representative to be assessed on any improvement to determing potential benefit to those completion of the improvements. H. Adjusted Assessments appraisals of properties assist the City in properties from the 1. Assessments may be adjusted due to public easements recorded on a parcel. 2. All assessments required under this section will be charged at 75* of that amount calculated under E. and F. I. Multiple Frontage Assessments 1. Parcels with multiple frontage may be assessed for more than one improvement project. Determination of the assessments will be based upon the actual access or connection to improvements that benefit the parcel including streets, sewer, water and stormwater improvements. 2. Property owners with parcels that may be assessed for more than one improvement will be advised, by certified mail, of the potential multiple assessments and be given an opportunity to notify the City to eliminate the access to a improvement prior to the project being ordered. J. Method of Payment 1. A schedule for the payments of special assessments will be determined by the City for each project. The payment schedule for projects in new developments will be set through a development contract. Schedules for the payment for projects in existing developments will be ten (10) years. The owner may pay the entire or partial amount of assessment at City Hall within 30 days of adoption of the assessment roll without interest. The remaining amount shall be paid in equal principal installments plus interest as determined by the Council (typically 2%- above the net interest rate of the bond issue). Annual payments will be remitted with the property taxes. An owner may pay off the assessments in full at any time, but will be charged the entire year's interest after the assessment is certified to the County. 14 CITY OF ROSEMOUNT POLICY AD - 4 2. Assessments which are deferred under Section VII will have payment schedules as determined in that section (Section VII D-) SECTION Vil ASSESSbg= DEFERMENT EOLICY [01ITTi-M - - AF -V I ---- A. Purpose - To indicate in which instances the City may legally allow deferment of special assessments levied under this policy. B. Situations of Mandatory Deferment: I 1. Certain agricultural/nursery/greenhouse deferments. Generally, real estate consisting of 10 acres or more or a nursery or greenhouse shall be entitled to a deferment from special local assessments provided that: a. The property is actively and exclusively devoted to agricultural use evidenced by: (1) At*least 33Xk of the total family income of the owner is derived f rom the property or the total production income including rental from the property is $300.00 plus $10.00 per tillable acre; and (2) The property is devoted to the production for sale of agricultural products. b. The property: (1) is the homestead of the owner, the owner's surviving spouse, child or sibling of the owner or is real estate which is farmed with the real estate containing the homestead property; or (2) Has been in possession of the applicant, the applicant's spouse, parent, or sibling or a combination of the foregoing for a period of at least seven (7) years prior to application for the deferment of special assessments or is real estate which is physically near and farmed with the real estate which qualifies under this provision; or is CITY OF ROSEMUNT POLICY AD - 4 (3) Is the homestead of a share holder in a family farm corporation; or (4) Is in the possession of a nursery or greenhouse. When the above described property no longer qualifies for deferment, all deferred special assessments plus interest shall be payable in equal installments spread over the time remaining until the last maturity date of the bonds issued to finance the improvements for which the assessments were levied. If such bonds have matured, the deferred special assessments plus interest, if accrued, shall be payable within 90 days. Application for deferment of special assessments under these provisions must be filed by May ist of the year prior to the year in which the assessments would be payable or within thirty (30) days from the date the assessment roll is adopted which ever date falls closest to the adoption of the assessment roll. Applications granted shall continue in effect for subsequent years until the property no longer qualifies. Applications shall be filed with the assessor of the taxing district in which the real property is located. The agricultural/nursery/greenhouse special assessments deferment is subject to the provisions of Minnesota Statutes 5273.111. C. Situations of Discretionary Deferment. 1. Senior citizen/low income deferment. At its discretion the City may defer assessments against any homestead property owned by a person 65 years of age or older and for whom it would be a hardship to make the assessment payments. The standards and guidelines governing what constitutes hardship are established by City ordinance or resolution. Additionally, the City may grant a deferment in situations where its hardships standards and guidelines have not been met if exceptional and unusual circumstances exist and no preference or discriminatory treatment will occur. This deferment is subject to the provisions of Minnesota Statutes §435.193. 16 a - CITY OF ROSEMUNT POLICY AD - 4 2. unimproved property deferment. The City may also defer the assessment of improvements with respect to property which is not directly and immediately affected by the improvement for which the assessment is levied. if applicable, at such times as extensions or connections regarding the improvement directly benefit such unimproved property, the City may require payment of the deferred assessments as well as those relating to the connection or extension. This deferment is subject to the provisions of Minnesota Statutes §429.051. D. Interest On Assessment Forgiven. Interest on the assessment so deferred under Sections VII B. and C., will not begin to accrue until the assessment becomes due and payable. 17 CITY OF ROSEMOUNT POLICY AD - 4 The following narrative and cost information is provided as supportive info=ation to the establishment of the policy. Five Year Street -Reconstruction Program The City is developing a 5 Year Street Reconstruction Program with an: Est. Cost of Reconstruction Est. Cost of Maintenance/Overlays Sources of Revenue Will Be: 1. Assessments 2. MSA Funds 3. CIP 4. General Tax Levy Cgncept $5,700,000 over 5 years(,,= $ 300,000 over 5 years (,.= Develop five year, ongoing, street reconstruction program to reconstruct and maintain city streets. Initially this program would cover 5 years. Each year this program would be reviewed and upgraded to add the next year. In order to fund this general reconstruction/maintenance program it is necessary to look at sources of funding in a broader sense than on a project by project basis. It is necessary to consider "pooling" of all available sources so that a "financing program" can be generated. These sources would be: 1. Assessments - under the proposed assessment policy a portion of all construction costs, will be assessed. The percentage of individual project costs to be assessed will typically be 60*, but could range from a low of 50k to a high of 100k depending on what type of street it is and how many abutting properties have access to the street, the type of development ... occurring, etc.. Generally if the street is larger than a residential street MSA Funds offset city costs. (Those not collected through assessments.) 2. MSA Funds are available to the city through the State of Minnesota from the MVET Fund. There is no indication now that those funds are in any great extent, in jeopardy. on some projects the amount of dollars that the city can receive for reconstruction of an MSA designate street is almost 100k of the cost. The city receives a APPMMIX A 18 CITY OF ROSEMOUNT POLICY AD - 4 maximum amount per year from MSA Funds even if the city,s costs are greater. The City doesn't lose those funds which are not covered in a single year but the city must wait for its allocation to be great enough to cover those costs. The City's allocation for MSA is about $300,000 per year. This amount would expand as the number of street miles that are eligible increases. what many cities do is to develop a 5 year reconstruction plan and borrow against their MSA allocation. That. is, say borrow money to fund large projects which have to be done before MSA Funds are available and use their allocation as it comes in to pay off the debt. This is actually quite a common and a good approach if you have a "Street Reconstruction Program" in place. 3. CIP. As part of a reconstruction and maintenance program it is appropriate to set aside, as part of a 5 year CIP Program, monies for general maintenance. This is simply part of the General Fund but funds specifically designated for the Street Reconstruction Program. In fact, the Street Reconstruction Program should be just one part of an overall 5 year CIP Program for the city and the nGeneral Tax" contribution would be part of it. The specific dollar amount to be designated in the CIP would vary depending on the overall needs. 4. General Tax Levy. Funds made available through general taxes could be provided in a couple of ways. a. in a five year street reconstruction program as we borrow money to pay for projects a certain portion of that debt could be calculated as "General Fund" debt, and, if the levy needed to pay for that debt is greater than the assessments available, the general tax base would support that debt. b. Through a CIP Program, as noted in No. 3 above, the general taxes used to help finance a program would compete with other uses of our tax levy. APPENDIX A 19 CITY OF ROSEMUNT POLICY AD -.4 Example: YEAR RECONMUCTION MAINTENANCE TOTAL 1 $ 800.000 $ 60,000 $ 860,000 1 800,000 60,000 8601000 3 1,000,000 601000 1,060,000 4 1,600,000 60,000 1,660,000 5 115001000 60,000 1,560,000 TOTAL COST $5,700,000 $ 300,000 $6,000,000 Revenues 1. Assessments - Assume average of 50?k of Reconstruction cost would be assessable cost, but 75k of that is assessed. Assessments would be spread for ten(10) years in these issues. 2. 3. APPMMIX A MSA - Based on the projects now projected for complete reconstruction over the next 5 years it is calculated that $3,000,000 would be MSA Fundable. Since our MSA allocation is only $300,000 per year we could either use that $300,000 per year to offset that amount of debt to incur or borrow against this allocation up front and utilize our allocation to pay off that debt. General Tax/CIP - The shortfall created between the total needed and those dollars available in No. I and 2. above would have to be picked up through general taxes wither through a debt levy or general tax levy and funding the CIP. Assume: A. Year 1, Year 2, Year 3 MSA Allocation (3 yrs X 300,000) CIP Funding Per Yr. Debt Needed $2,780,000 in cost (900,000) $1,880,000 $ 300,000 (100,000) $1,580,000 Issue $1,600,000 in 13ond at 8% for 10 yrs. in Year 1 Annual debt payment $232,950 Assume 35.5k Assessments 151,781 Increase in Debt Levy 81,000 (rounded) 20 B. Year 4, Year 5 MSA Allocation (2 yrs X 300,000 yr) cip Funding Per Yr. Debt Needed CITY OF ROSMMUNT POLICY A33 - 4 $3,220,000 in cost (600,000) $2,620,000 300,000 (150,000) $2,325,000 Issue $2,325,000 in Bonds at 8% for ten years in Year 4. Annual debt payment $ 338,504 Assume 37.5k Assessable 175,804 increase (in Debt Levy) 160,000 (rounded) This example shows what assessment two debt issues aver a five year period would cause as an increase in debt services levy. The amount of $241,000 is equal to about a 6% increase in the city's portion of our tax levy. TYPICAL ASSESSMENT Assume a 80 foot frontage residential street lot. Assume residential equivalent front footage cost equals $40. Percentage Assessed Assessment Amount: 100%, $3,200 90ir 2,880 80% 2,560 - Note: Section VI G. limits 75% 2,400 assessment % to 75k. All the so% 1,600 above calculations are based 40t 1,280 on that 75%. 30% 960 20%* 640 10%. 320 APPENDIX A 21 CITY OF ROSEMOUNT POLICY AD - 4 ------------ Sl'REUr CAMBRIAN AVE CANAR0 LANE ClLvu.s" AVE ClIAlAwrl AVE CllILI AVE 146'111 Sr.W. 14671f Sr.W. L. 147111 S`V.W. 147111 S -1'.W. U. 147ni Sr.W. 148111 ST.W. U.14Srlll Sr.W. L. 150111 ST. W. 143RD Sr.W. 144'111 sr.w. ClIORLE"Y AVE 147111 SrJi. 14lVnI 9r.W. 149'H-1 ST.W. U.1490111 Sr.W. DALLARA AVE DALLARA AVE DANV I LLE AVE DELFT AVE U. 145111 ST.W. U. 145'111 ST.W. U. 148*ni ST.W. 121S`r S"r. -W. BURNLE'l AVE L. 147111 S"r.W. 149PIll ST.W. CIMAHI" AVE 146111 ST.W. U. 148111 Sr.W. 149*11f Sl'.W. DAmAsK cr. L. 146111 Sr.W. 150111 ST.W. APPENDIX A Route bim L.14771 Sr.W. CAMBRIAN AVE 148`111 Sr -W 145111 ST.W. L.147111 Sr.W. 11HINLEY AVE CMEO AVE CANADA AVE. CANADA AVE CANADA AVE CANADA AVE CliAlUSIX0 AVE. CAMFIELD CIR. C111LE AVE C111111 AVE U.14&111 Sr.W. CllIPP. AVE. (311 PP AVE ClIIPP.AVE. C[IORLEY AVE. 145111 Sr -W. DOM BLVD U.145111 Sr.W. U.145111 Sr.W. DALLARA AVE DANVILIZ AVE DELFT AVE AKRON AVE 145'111 ST.W. BURMA AVE CANADA AVE 14&111 Sr.W. ClUPP. AVE. CHORLEY AVE 01ORLET AVE N. END DANIVIRY AVE DALLARA AVE TO IlWY 3 S. END L. 150111 sr.w. L. 147111 Sr.W. 148111 ST.W. I IWY 3 (311PP.AVE C111LI AVE C111PP. AVE ClIILI AVE afILI AVE Cli I PP. AVE ClIARLSTON AVE CIMMARON CIMMARON AVE U.1491111 Sr.W. CIMARRON AVE CIMARRON AVE ClJORLEY AVE CIMARRON AVE DODD BLVD 150'Ll sr -w - DODO BLVD DODD BLVD DAMASK AVE DELFT AVE DIAMOND PAW wwr END 146711 Sr.W. HWY 3 ClIARLSTION AVE U.148'111 Sr.W. CIMMARRON AVE CIMARRON AVE ClIRYSLER AVE DODD BLVD DANVILLE AVE W. END 22 PRIORMILES FELT 4 0.25 1320 4 0.19 1003 4 0.13 686 4 0.14 739 4 0.18 950 4 0.1 528 4 0.38 2006 4 0.21. 1109 4 0.24 1267 4 0.21 1109 4 0.21 1109 4 0.15 792 4 0.16 845 4 0.21 1109 4 0.24 1267 4 0.1 528 4 0.21 1109 4 0.21 1109 4 0.04 211 4 0.16 845 4 0.31 1637 4 0.16 845 4 0.38 2006 4 0.42 2218 4 0.06 317 4 0.11 581 8 0.09 475 10 0.64 3379 10 0.09 475 10 0.06 317 10 0.09 475 10 0.16 845 10 0.2 1056 10 0.17 898 10 0.1 528 10 0,13 686 10 0.06 31.7 10 0.18 950 WrAL 7.13 37646 lxn%L $13.000.00 $11.000.00 $6,000.00 $6.000.00 $8,000.00 $6,000.00 $18,000.00 $9,000.00 $111,000.00 $9,000.00 $9,000.00 $7,000.00 $7,000.00 $9,000.00 $11,000.00 $4,000.00 $9,000.00 $9,000.00 $2,000.00 $7,000.00 $14,000.00 $7,000.00 $15,000.00 $17,000.00 $2,000.00 $4,000.00 $4.000.00 $24,000.00 $4,000.00 $4,000.00 $4,000.00 V 1 000. 00 sq, 0()(). 00 $7,000.00 $4.000.00 $5,000.00 $2,000.00 $7,000.00 $311,000.00 0,41slit ------------------ Y FAR SJI(Mr 91 14 5111 ST. H - 91 DIMAID I'Alil 92 CIIIIII AVE 92 14m sr. W. 92 mijo AVE 9-2 1.. 147*111 ur.w. 92 143111) ST.H. 93 cmM- AVE 4)3 i-is,m sr. W. 94 160111 Sr 94 16M11 Sr 94 011PP. AVE 95 14 Slit Sr. 11 95 IMM) HIND 95 AKR011 AVE 96 145111 :s!r. if. to 97 tYM DIND d d Rcmde 21tAff PKW 144111 Sr H. END cAmy) AVE 145111 Sr-W- IIWY 3 IRJY 3 143RD Sr. MAH MY APPLE VALLEY lif 3 151ST Sr.". BISCAYNE AVE alipp. AVE CSAII 42 a). RI). 42 bimm. MY STREET RECONSTRUCTION 71, 9 n H H I goV ftj H 0 w 1,1"EAL PROP. TMAL HSA ------------------ Im PRIORFITLES Fwr HIUIII 0WrS ASSFUSSIBLE MY MIARE ELLIGIFILK 01h. PNIII 2 0.36 1901 40 $575,100 $503.100 13WIII Wr 5 0.7 3696 64 $2t4,000 $789,100 $555,000 145MI ST. 2 0.2 1056 32 $46,692 aimp. AVE 2 0.52 2746 40 $505.900 L.147,111 MR. 3 0.17 090 1267 32 32 $03,117 $117,341 cmiffim AVE 3 6 0.24 0.1 528 32 $40.092 $074,400 If. MD $004,142 145'111 ST- 2 0.17 898 32 $03.117 aiiPP. AVE 4 0.4o 2534 40 $941,300 $t.024,424 111 3 2 I.o 5280 52 $945.000 $373,000 $287,000 US MY 52 4 5.0 26400 44 $331.000 160111 SIM4. 6 o.9 4750 40 $373,600 $1,649,000 WhZ 11. AVE' 2 0.33 1742 40 40 $318.000 $505,900 $426.000 1991M. I'My - IHVw (AWE IKMS 4 a 0.54 2.5 2851 13200 44 $647,712 $1.551.612 DISMYNE AVE. 2 0.30 2006 40 $461,000 I)ELrr AVE 4 0.53 2798 *40 $585,900. 71, 9 n H H I goV ftj H 0 w CITY OF ROSEMOUNT POLICY AD - 4 RESIDMITIAL ST—REET ZQV1"LMM-- ZSTnQTZ The quantities listed below are for a 5001 length of residential street, 321 wide bituminous, including lateral storm drain and street lights item Quantity Unm Unit Price Total 1. Soil Correction 2000 C.Y. 4 $8,000 2. 6" Class 5 Aggregate 600 Ton 5 3,000 3. 1 2331 Bitum. Base 135 Ton. 17 2,295 4. 1 2341 Bit. Wear Crs 135 Ton is 2,565 5. Concrete Curb & Gutter 1000 L.F. 5 5,000 6. Restoration 1 L.S. 3,500 3,500 7. Street Light 1 Each 1,800 1,800 8. Catch Basins 2 Each 800 1,600 9. Manhole 1 Each 1,000 11000 10. RC Pipe 250 L.F. 23 5,750 Total Construction $34,510 10% Contingency 3,450 Subtotal $37,960 Plus 30% Administration 11,390 Total $49,350 $49,350 divided by 500 L.F. = $98.70 per foot of street. $98.70 divided by 2 sides = $49.35 per assessable foot. Equivalent residential street assessment = $49.35 per foot for all items. Street only = $34.85 per assessable foot (items 1-6) Storm Drain only = $11.95 per assessable foot (items 8-10) Street Light only = $ 2.57 per assessable foot (item 7) APPENDIX A 24 1996 RESIDENTIAL WATERMAIN EQUIVALENT ESTIMATE Project #243 Project #248 Project #251 Project #254 ITEM QUANTITY UNITS UNIT PRICE UNIT PRICE UNIT PRICE UNIT PRICE 1. 8" D.I.P. 500 L.F. 12.00 13.00 14.50 17.00 2. Fittings 500 Lbs. 2.00 0.30 1.00 1.60 3. 8" Gate Valve 1 Each 440.00 500.00 435.00 4. Hydrant I Each 1,300.00 1,200.00 1,100.00 1,200.00 Totals $ 8,740.00 $ 8,350.00 $ 9,330.00 $ 10,935.00 Average Total $ 9,338.75 + 5% Contigency 466.94 Subtotal $ 9,805.69 + 30% Administration 2.941.71 Total $ 12,747-39 Total / 500 L. F. $ 25.49 /2 $ 12.75 Equivalent Residential Watermain Assessment *Based on Construction Year 1994,1995* 96H2OEST.XLS 71W 7:43 AM 1996 RESIDENTIAL SANITARY SEWER EQUIVALENT ESTIMATE Project #243 Project #248 Project #251 Project #254 ITEM QUANTITY UNITS UNIT PRICE UNIT PRICE UNIT PRICE UNIT PRICE 1. 811 PVC - SDR 35 400 L.F. 8.00 9.00 15.00 14.50 2. 8"X4" PVC Wye 10 Each 37.00 35.00 40.00 29.00 3. 411 PVC Service Pipe 450 L.F. 5.00 5.00 5.50 5.20 4. Manhole 10' Deep I Each 1,000.00 1,150.00 900.00 1,165.00 ---- Totals $ 6,820.00 $ 7,350.00 $ 9,775.00 $ 9,595.00 Average Total $ 8,385.00 + 5% Contigency 419.25 Subtotal $ 8,804.25 + 30% Administration 2,641.28 Total $ 11,445.53 Total / 400 L.F. $ 28.61 /2 $ 14.31 Equivalent Residential Sanitary Sewer AssessmentOW, M, *Based on Construction Year 1994, 1995* 96SANSEWALS 715196 7:42 AM 1996 32' WIDE RESIDENTIAL STREET ASSESSMENT ESTIMATE ITEM QUANTITY UNITS Project #242 Unit Price Project #261 Unit Price Project #254 Unit Price Project #248 Unit Price 1. Common Excavation 2,000 C.Y. 1.86 2.50 2.50 1.86 2. Granular Borrow 2,000 C.Y. 3.24 4.50 4.50 3.24 3. 6" Class 5 600 Ton 6.25 6.70 8.94 6.25 4. 1 1/2" 31 Bit. Base 135 Ton 17.50 18.50 18.00 17.50 5. 1 1/2" 41 Bit. Wear 135 Ton 19.50 21.50 19.00 19.00 6. Concrete C & G 1,000 L.F. 4.60 5.70 4.59 4.60 7. Sodding 723 S.Y. 2.00 1.75 1.60 2.00 8. Street Light I Each 1,100.00 1,100.00 1100.00 1,100.00 9. Catch Basins 2 Each 725.00 750.00 615.00 725.00 10. Manhole 1 Each 785.00 850.00 776.00 785.00 11. 15" RCP 250 L.F. 14.00 17.00 20.00 14.00 TOTALS $ 31,826.00 $ 38,085.25 $ 38,211.80 $ 31,758.50 Average ConstructionTotal $ 34,970.39 5% Contingency $ 1,748-52 Subtotal $ 36,718.91 30% Administration $ 11,015.67 Total $ 47,734.58 *Based on Construction Year 1994,1995* Total/500 L.F. $ 95.47 / 2 Sides $ 47.73 per foot Assessment Equivalent Residential Street Assessment��� *Based an Construction Year 1994,1995* . . Street Only $ 37.26 Storm Drain Only $ 8.46 Street Light Only $ 1.49 96ROFST X1 S 715196 7 43 AM 1996 38' WIDE RESIDENTIAL STREET ASSESSMENT ESTIMATE 19 12AZIMIX it A:) AAAnn it A97A7.Ab a 3f).ZfJtJ.tJJ I U I AL -0 %P I I I Project #242 Project #251 Project #254 Project #248 ITEM QUANTITY UNITS Unit Price Unit Price Unit Price Unit Price 1. Common Excavation 2,375 C.Y. 1.86 2.50 2.50 1.86 2. Granular Borrow 2,375 C.Y. 3.24 4.50 4.50 3.24 3. 6" Class 5 713 Ton 6.25 6.70 8.94 6.25 4. 11/2" 31 Bit. Base 160 Ton 17.50 18.50 18.00 17.50 5. 11/2" 41 Bit. Wear 160 Ton 19.50 21.50 19.00 19.00 6. Concrete C & G 1,000 L.F. 4.60 5.70 4.59 4.60 7. Sodding 723 S.Y. 2.00 1.75 1.60 2.00 8. Street Light I Each 1,100.00 1,100.00 1100.00 1,100.00 9. Catch Basins 2 Each 725.00 750.00 615.00 725.00 10. Manhole I Each 785.00 850.00 776.00 785.00 11 15" RCP 250 L.F. 14.00 17.00 20.00 14.00 19 12AZIMIX it A:) AAAnn it A97A7.Ab a 3f).ZfJtJ.tJJ I U I AL -0 %P I I I Average ConstructionTotal $ 38,971.20 5% Contingency $ 1,948.56 Subtotal $ 40,919.76 30% Administration $ 12,275.93 Total $ 53,195.69 *Based on Construction Year 1994,1995* Total/500 L.F. $ 106.39 / 2 Sides $ 53.20 per foot Assessment Equivalent Residential Street Assessment *Based on Construction Year 1994,1996* Street Only $ 42.66 Storm Drain Only $ 8.46 Street Light Only $ 1.49 n.1.nnr:Q Vf Q 7MW 0 An AM 1996 COMMERCIAL (521) STREET ASSESSMENT ESTIMATE Project #249 Project #242 Project #251 Project #254 Project #248 ITEM QUANTITY UNITS Unit Price Unit Price Unit Price Unit Price Unit Price - 1. Common Excavation 3,000 CY 2.50 1.86 2.50 2.50 1.86 2. Granular Borrow 3,000 C.Y. 2.50 3.24 4.50 4.50 3.24 3. 8" Class 5 1,150 Ton 6.63 6.25 6.70 8.94 6.25 4. 3" 31 Bit. Base 450 Ton 20.40 17.50 18.50 18.00 17.50 ,5. 31141 Bit. Wear 450 Ton 21.93 19.50 21.50 19.00 19.00 6. Concrete C & G 1,000 L.F. 5.07 4.60 5.70 4.59 4.60 7. Sodding 1,100 S.Y. 1.43 2.00 1.75 1.60 2.00 8. Street Light I Each 1,100.00 1,100.00 1,100.00 1100.00 1,100.00 9. Catch Basins 2 Each 746.00 725.00 750.00 615.00 725.00 10. Manhole I Each 3,279.85 785.00 850.00 776.00 785.00 11. 15" RCP 250 L.F. 20.00 14.00 17.00 20.00 14.00 - TOTALS $ 99,187.85 $ 52,772.50 $ 62,030.00 $ 62,387.00 $ 52,547.55 Average ConstructlonTotal $ 57,784.97 5% Contingency $ 2.889-25 Subtotal $ 60,674.22 30% Administration $ 18,202.27 Total $ 78,876.48 Total/500 L.F. $ 157.75 / 2 Sides $ 78.88 Equivalent Residential Street Assessrnent��� *Based on Construction Year -1994,1996* Street Only $ 67.12 Storm Drain Only $ 9.41 Street Light Only $ 1.49