01-25-10 Council Special Minutes

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MINUT);S CITY COUNCIL JANUARY 25, 2010 Bergstrom asked about the impact of the improvement on property values. He noted that his value has remained flat. Blesener cited an instance where a property owner on Lakeside Court opposed a street and watermain improvement, but later thanked the City for proceeding as it allowed his house to sell quickly. The City Administrator reviewed the "benefits received" provisions in State Statute relative to assessments. Under this principle, property values must increase equal to the greater than the amount of the assessment. However, given declining property values, this is difficult to show, unless a before and after appraisal analysis is done. The City Administrator reported that appraisers have supported the application of the City's assessment policy; and while the amount of the assessment may not be transmitted to the property value shown on a property tax statement, the improvement will benefit the property equal to the amount of the assessment. The City Administrator reported that John Hendricks, Iona Lane, called in and left a message stating his opposition to the improvement. Mr. Hendricks felt that a mill and overlay, done right this time, is what is needed rather than a full reconstruction. "1 he City Administrator indicated that if City staff felt a mill and overlay of Iona Lane made sense, staff would propose it However, given the subbase contamination that is occurring, a full reconstruction is the most cost-effective option for the long term. With regard to comments on property values, Blesener noted that his street was reconstructed last fall. Most of the property owners on the street are retired and on fixed incomes. However, the majority felt that having a fully reconstructed street with concrete curb and gutter would make their homes easier to sell. Keis noted the option for senior citizens or disabled individuals meeting certain income guidelines to defer the payment of their assessments. I Iowever, it should be noted that interest would continue to accrue on deferred assessments. The City Administrator pointed out that last year the Council set the maximum assessable lot width at 100 feet in order to hold the line on assessments. He noted the wide lots on Iona bane and suggested an option would be to reduce the maximum width fi•om 125 feet to something less. If the bids received are favorable, this is a way to pass some of the cost savings on to those property owners being assessed. 9