HomeMy WebLinkAbout2. Assessment Policyi
i� o(Rosemount
PHONE (612) 4234411 2875 • 145th Street West, Rosemount, Minnesota MAYOR
Edward B. Mdulenomy
FAX (612) 4235203 Mailing Address:
P.O. Box 510, Rosemount, Minnesota 55068.0510 COUNCILMEMBERS
Sheila Wasson
James (Red) Steals
Harry Willcox
Dennis Wippermann
TO: Mayor MCMenomy ADMINISTRATOR
Council Members Klassen, Staats, Willcox, WippermanwPhanJinc
FROM: Stephan Jilk, City Administrator
DATE: March 13, 1992
RE: Assessment/Improvement Policy
Pursuant to our discussion on Tuesday evening and comments
provided to me by Council Member Willcox Several revisions have
been made to the draft copy you received on Tuesday evening.
Some of these changes are typo's, some are made to clarify the
comments, some were corrective in nature.
I have also revised some sections based on your suggestions. I
will attempt to note all changes for your benefit here and
discussion on Monday evening at 6:30 p.m..
Page Table of Contents Change "Exhibit" to Appendix
Section
Page 3 Changed "Street" to "improvements"
Sec. I. 2
Page 4 Last Line - rewritten to clarify MSA use in a
Sec. II. 2 "Revenue Pool Fund"
Page 5 Added "petition"
Sec. III.A.S
Page 6 Second to last paragraph, last sentence - added
Sec. III.C. "or before ther'
Page 7
Sec IV Second paragraph — changed "of" to "and" in first
line
Sec IV A. Changed - (SDR36) to (SDR26)
B. Changed - (SD26) to (SDR26)
E. First line, last paragraph - added lateral and
catch basins and trunk facilities
Page 12
Sec. VI A. Changed III -1-A to III -A-1
1
6verylking s COoming (Up (Rosemounly
`� rKVCttl DaAe
D. Removed "Method Of"
Page 13
Sec. VI E & F Revised a. & b. to include reference to "current"
cost and Section VI. C.
G. Added - 2. - This references a 80* limit on the
actual assessment to be paid no matter what land
use, type of improvement etc. is done. This is a
example of what you would do if you wanted to
reduce, from a 100k, the actual assessment levied.
This refers back to page 21 of the appendix. If
you wish to leave it at 100% this "80-" could be
changed, 90W etc., whatever you wish to set it at.
Page 14
Sec. VI. H. Added language to end of paragraph to clarify that
all improvements are included.
I. Removed "(Interest on the assessment will begin
accruing from the date of the adoption of the
assessment roll)"
I. 1. Revised last part of first paragraph to indicate a
ten (10) year payback. Note that Appendix A has
been revised to calculate costs using a 10 year
bond issue instead of a 8 year.
I. 2. Added this.
Page 16
Sec. VII. B. Second paragraph this page. Revised first sentence
to add "or within 30 days... assessment roll."
Page 17
Sec. VII. D. Added this.
Appendix A Revised this entire section to calculate cost
example using 10 year bonds and a 80k assessable
cost.
If the 80t rate is changed we can easily revise to
reflect t chosen.
OTHER CON KENTS :
Council Member Willcox has suggested that we discuss options on
how to deal with deferments on AG land so not as to cause
hardship on farmers retiring or disabled but still maintaining
ownership of the farm. Such as not causing a lump sum payment of
an assessment and interest immediately. This may be covered in
the required deferment section. Further discussion and
clarification should be had on this.
Also, if at all possible we hope to wrap up discussion on this
Monday night so that Tuesday we could adopt it.
3
I t
CITY OF ROSEMOUNT
ASSESSMENT/IMPROVEMENT POLICY
FINAL DRAFT
MARCH 6, 1992
TABLE OF CONTENTS
Section
Page
1
Preface
Page
2
Introduction
Page
3
I.
Definitions
Page
4
II.
Policies and Procedures
Page
4
III.
Project Initiation &
Hearing Process
Page
7
IV.
Construction Standards
Page
9
- -
Useful Service Life
Page
9
V.
New Development
Improvements
Page
12
VI.
Existing Development
Improvements
Page
14
VI. I.
Method of Payment
Page
15
VII.
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
PREFACE
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
5. 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.
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City of Rosemount
Assessment/Improvement Policy
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 I.2)
4. Preventive Maintenance - see definitions (Section I.3)
5. Extensions - Construction of improvements generally made to
extend services to a certain area. Extensions normally
pertain to water, sanitary sewer and storm sewer trunks.
Pa
The special assessment is
of Rosemount as a means to
improvements to benefitted
over a number of years.
City of Rosemount
Assessment/Improvement Policy
a financing tool employed by the City
allocate the cost of specific
properties and to spread those costs
Minnesota Statues Chapter 429 regulates the procedure for 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.
SECTION I
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. REHABILITATION - 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 MAINTENANCE - 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.
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City of Rosemount
Assessment/Improvement Policy
SECTION II
GENERAL POLICIES AND PROCEDURES
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 equitable assessment approach such that the
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,
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City of Rosemount
Assessment/Improvement Policy
circulated by the affected property owners should bear the
signatures of the property owners of 51t 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
II.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 1001 Signed Petition: When a petition is signed by 1001
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 1001 of the benefitted
property owners. The Council may order the project without
a public hearing.
5. Projects may be petitioned or initiated by City Council at
any time during the year, but projects which are initiated
after February 1st 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
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City of Rosemount
Assessment/Improvement Policy
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.
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City of Rosemount
Assessment/Improvement Policy
SECTION IV
CONSTRUCTION STANDARDS AND EXPECTED LIFE
Construction Standards and Expected Life Minimum Design 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"
(GLUMB) 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 4" 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 1" 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
Wr
City of Rosemount
Assessment/Improvement Policy
designed to handle a 100 year event as determined by the
City Engineer.
F. Sidewalks, Trails and Bikeways
Concrete - 5 ' wide with 6" sand base - 4" thick (6" thick
at driveways)
Bituminous - 8' wide (2341) Bit. with 6" CL5, 100 percent
crushed rock and 2" Bit.
All trails and sidewalks will be located 1' off property
line, pedestrian ramps and curb drops will be installed
according to MNDOT Standards.
G. Streets
AG, AG -P and RR Zones - minimum 24, edge to edge, 4' gravel
shoulders, rural ditch cross section and 7 ton pavement - or
- minimum 28' 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, R1 & R2 Zones - minimum 32' 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, 49' 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 - 37' minimum, 49' 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 - 371 back of curb to back of curb, urban cross
section, with concrete curb and gutter and 7 ton pavement;
secondary and post -secondary schools: 49' back of curb to
back of curb, urban cross section, with concrete curb and
gutter and 9 ton pavement.
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City of Rosemount
Assessment/Improvement Policy
Useful Service Life
Public improvements are judged to have a normal useful life
expectancy. For the purpose of this policy, this life 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 I, the assessments to
be levied will be prorated from 0t at one-half life
expectancy to 1001 at full life expectancy as noted above or
beyond.
SECTION V
PUBLIC IMPROVEMENTS IN NEW DEVELOPMENTS
General Procedures 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.
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City of Rosemount
Assessment/Improvement Policy
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 60%- 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.
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City of Rosemount
Assessment/Improvement Policy
Public Improvement Work by Private Developers
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 Minnesota 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 dateofconstruction
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 developers 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.
5. 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 look 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
City of Rosemount
Assessment/Improvement Policy
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
E.
F.
City of Rosemount
Assessment/Improvement Policy
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)
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
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.
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City of Rosemount
Assessment/Improvement Policy
G. Adjusted Assessments
1. Assessments may be adjusted due to public easements
recorded on a parcel.
2. All assessments required under this section will be
charged at 80* of that amount calculated under E. and
F.
H. Multiple Frontage Assessments
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.
I. 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.
2. Assessments which are deferred under Section VII will
have payment schedules as determined in that section
(Section VII D.)
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City of Rosemount
Assessment/Improvement Policy
SECTION VII
ASSESSMENT DEFERMENT POLICY
Deferment of Special Assessments
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:
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 33'{* of the total family income of
the owner is derived from 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
(3) Is the homestead of a share holder in a
family farm corporation; or
(4) Is in the possession of a nursery or
greenhouse.
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City of Rosemount
Assessment/Improvement Policy
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 1st 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 §273.111.
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.
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
MR
City of Rosemount
Assessment/Improvement Policy
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.
1. 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
Assessment/Improvement Policy
The following narrative and cost information is provided as
supportive information 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 $5,700,000 over 5 years(,.. 23)
Est. Cost of Maintenance/Overlays $ 300,000 over 5 years (P,.=
Sources of Revenue Will Be:
1. Assessments
2. MSA Funds
3. CIP
4. General Tax Levy
Concept
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 60g, but could range from a
low of 50t to a high of 1001 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.
APPENDIX A
18
City of Rosemount
Assessment/Improvement Policy
on some projects the amount of dollars that the city
can receive for reconstruction of an MSA designated
street is almost loot of the cost. The city receives a
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 "General 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 Rosemount
Assessment/Improvement Policy
Example:
YEAR RECONSTRI
1 $ 800,000
2 800,000
3 1,000,000
4 1,600,000
5 1,500,000
TOTAL COST $5,700,000
Revenues
MAINTENANCE
TOTAL
$ 60,000
$ 860,000
60,000
860,000
60,000
1,060,000
60,000
1,660,000
60,000
1,560,000
$ 300,000
$ 6,000,000
1. Assessments - Assume average of 50* of
Reconstruction cost would be assessable cost, but
80% of that is assessed.
Assessments would be spread for ten(10) years in
these issues.
2. 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.
3. General Tax/CIP - The shortfall created between
the total needed and those dollars available in
No. 1 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 $2,780,000 in cost
MSA Allocation (900,000)
(3 yrs X 300, 000)
$1,880,000
CIP Funding $ 300,000
Per Yr. (100,000)
Debt Needed $1,580,000
Issue $1,600,000 in Bond at 8% for 10 yrs. in Year 1
Annual debt payment
Assume 40% Assessments
Increase in Debt Levy
20
$232,950
161,899
71,000 (rounded)
APPENDIX A
City of Rosemount
Assessment/Improvement Policy
B. Year 4, Year 5
MSA Allocation
(2 yrs X 300,000 yr)
CIP Funding
Per Yr.
Debt Needed
$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 50% Assessable 187,524
Increase in Debt Levy 151,000 (rounded)
This example shows what two debt issues over a
five year period would cause as an increase in
debt services levy. The amount of $222,000 is
equal to about a 2.5% 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
90% 2,880
80% 2,560 - Note: Section VII D. limits
50 1,600 assessment % to 80%. All the
40% 1,280 above calculations are based
30% 960 on that 80%.
20% 640
10% 320
APPENDIX A
21
-------------
S I'REET
CAMBRIAN AVE
CAMARO LANE
C1LARI STON AVE
C1IAIANTI AVE:
CIIILI AVE
146111 sr.w.
146711 ST.W.
L. 147111 sr.w.
147111 Sr.W.
U.147nI sr.w.
148'111 ST.W.
U.14911i sr.w.
L.150111 ST.W.
143RD S'r.W.
144111 sr.w.
CIIORLEY AVE
147111 S"1'.W.
14011 S'r.W.
149TH ST.W.
U. 147111 sr.w.
DALLARA AVE
DATA ARA AVE
DANVILLE AVE
DELFT AVE
U. 145111 ST.W.
U. 145'111 ST.W.
U. 148111 ST.W.
121ST Sl'. W.
BURNLEY AVE
1..147111 SI'.W.
149'111 ST.W.
CIMAId" AVE
146111 ST.W.
U. 148111 Sr.W.
149111 Sl'. 14.
DAMASK CI'.
L.14G11I ST.W.
150'111 SI'.W.
STRUCTURAL
--- Route
E12CM
L. 147711 ST.W.
CAMBRIAN AVE
148'11l ST.W
145111 ST.W.
L. 147111 Sr.W.
BURNLEY AVE:
CAMEO AVE
CANADA AVE.
CANADA AVE
CANADA AVE
CANADA AVE
C7IARLSI1ON AVE.
CAMFIEL.D CIR.
C111I.E AVE
CIIII,I AVE
U.148'lll ST.W.
C31IPP. AVE.
C1iIPP AVE
CiIIPP.AVE.
CIIORLEY AVE.
145111 Sr.W.
DOM BLVD
0.145111 ST.W.
U.145111 ST.W.
DALLARA AVE
DANV I L LE AVE
DELFT AVE
AKRON AVE
145'111
BURMA AVE
CANADA AVE
14(Y111 or.W.
CHIPP. AVE:.
CHORLEY AVE
CIIORLEY AVE
N. END
DANBURY AVE
DALLARA AVIS
City of Rosemount
Assessment/Improvement Policy
------------------
To
16IY 3
S.END
L. 150111 Sr.W.
L. 147111 ST.W.'
148'111 S'r.w.
11WY 3
CIIIPP.AVE
CIIIIJ AVE
C111PP. AVE
C11ILT AVE
C11ILI AVE
CHI PP. AVE
CIIARLSTON AVE
CIMiARON
CIM ARON AVE
U.149'rll Sr.W.
CIMARRON AVE
CIMARRON AVE
C11ORLEY AVE
CIMARtIM AVE
DODD BLVD
15UK,i sr.w.
DODD BLVD
DODD BLVD
DAMASK AVE
DELFT AVE
DIAMOND PA'11I
WES'r E71D
146W Sr.W.
HWY 3
CiiARLSTON AVE
U.148'111 SI'.W.
CIMMARRON AVE
C:IMARRON AVE
CHRYSLER AVE
DODD BLVD
DANVILLE AVE
W.END
22
PRLORMIL.ES
FEET
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
11.09
4
0.15
792
4
0.16
845
4
0.21,
1309
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
1.0
0.09
475
1.0
0.16
845
10
0.2
1056
10
0.17
898
10
0.1
528
10
0.13
686
10
0.06
33.7
10
0.18
950
TOTAL 7.13 37646
TOTAL
$13,000.00
$11.000.00
$6,000.00
$6,000.00
$8,000.00
$6,000.00
$18,000.00.
$9,000.00
$11,000.00
$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
$7,000.00
$9,000.00
$7,000.00
$4,000.00
$5,000.00
$2,000.00
$7,000.00
$311,000.00
APPENDIX A
STREET RECONSTRUCTION
(XI NSIlt------------------ Route
YEAR S'rREEr
HIM
MSA
91 145111 ST. W.
Slim PKWY
FIWr
91 DIAN(WID PAIII
144111 sr
ELLICIBLE
92 aIILi AVE
N. END
0.36
92 1451111 sr- W.
CAMED AVE
$575,100
92 CAMEU AVE
145111 S7'.W.
5 '
92 L.147'111 sr.W.
IIWY 3
64
92 143RD ST.W.
IRNY 3
93 CAMEO AVE
143RD ST.
W
93 145111 Sr. W.
S11AN 1'KIJY
94 160111 sr
APPLE VALLEY
94 169111 Sr
111 3
2
94 01IPP. AVE
151ST ST.W.
32
95 145111 sr. 41.
BISCAYNE AVE
G111PP. AVE
95 DODD BLVD
CINIPP. AVE.
2746
95 AKRON AVE
CSAR 42
96 145111 sr. 1.1.
CU. RD. 42
jy
+rob
97 DODD BLVD
SHAN. PKWY
$83,117
CANADA AVE
3
0.24
1267
H
$117,341
$874,400
W.END
6
0.1
528
32
$48,892
STREET RECONSTRUCTION
:0' n
N H -
E4 ft
m '•C
In
S M
N
[t 0
\ N
H m
100
ft
19
m
1i'
LINEAL PROP.
TMAL
MSA
10
PRIORMILES
FIWr
WID'NI
OOS'rS ASSESSIBLE CITY SHARE
ELLICIBLE
DIA. PAIII
2
0.36
1901
40
$575,100
$503,1.00
138'111 Sr
5 '
0.7
3696
64
$214,000
$789,100
$555.000
145111 Sr.
2
0.2
1056
32
$48,892
G111PP. AVE
2
0.52
2746
40
$585,900
L.147111 ST.W.
3
0.17
898
32
$83,117
CANADA AVE
3
0.24
1267
32
$117,341
$874,400
W.END
6
0.1
528
32
$48,892
$884,142
145TH ST.
2
0.17
898
32
$83,117
CIIIPP. AVE
4
0.40
2534
40
$941,308
$1,02.1.424
111 3
2
1.0
5280
52
$945,000
$373,000
$287,000
US IIWY 52
4
5.0
26400
44
$331,000
160TH MR.
6
0.9
4750
48
$373,000
$1,649,000
BRAZIL AVE
2
0.33
1742
40
$318,000
$426,000
S�, VFW.
4
0.54
2851
40
$505,900
INVElt (;ROVE ACPs
8
2.5
13200
44
$647,712
$1,551,612
BISCAYNE AVE.
2
0.38
2006
40
$461,000
DELFT` AVE
4
0.53
.2798
"40
$585,900
:0' n
N H -
E4 ft
m '•C
In
S M
N
[t 0
\ N
H m
100
ft
19
m
1i'
City of Rosemount
Assessment/Improvement Policy
RESIDENTIAL STREET E UIVALENT ESTIMATE
The quantities listed below are for a 500' length
of residential street, 321 wide bituminous,
including lateral storm drain
and street lights
Quantity
2000
600
135
135
1000
1
1
2
1
250
Units
C.Y.
Ton
Ton
Ton
L.F.
L.S.
Each
Each
Each
L.F.
Total Construction
10% Contingency
Subtotal
Plus 30% Administration
Total
Unit Price
$ 4
5
17
19
5
3,500
1,800
800
1,000
23
$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)
24
Total
$8,000
3,000
2,295
2,565
5,000
3,500
1,800
1,600
1,000
5,750
$34,510
3,450
$37,960
11,390
$49,350
APPENDIX A
Item
1.
Soil Correction
2.
6" Class 5 Aggregate
3.
1 %" 2331 Bitum. Base
4.
1 W 2341 Bit. Wear Crs
5.
Concrete Curb & Gutter
6.
Restoration
7.
Street Light
8.
Catch Basins
9.
Manhole
10. RC Pipe
Quantity
2000
600
135
135
1000
1
1
2
1
250
Units
C.Y.
Ton
Ton
Ton
L.F.
L.S.
Each
Each
Each
L.F.
Total Construction
10% Contingency
Subtotal
Plus 30% Administration
Total
Unit Price
$ 4
5
17
19
5
3,500
1,800
800
1,000
23
$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)
24
Total
$8,000
3,000
2,295
2,565
5,000
3,500
1,800
1,600
1,000
5,750
$34,510
3,450
$37,960
11,390
$49,350
APPENDIX A