01-23-2013 Council Agenda - Laserfiche WebLink

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tLf(RING ARMIES Memo TO: Mayor Blesener & Members of the City Council FROM: Lee Elfering, City Engineer DATE: January 18, 2013 RE: 2013 Proposed Assessments As has been our past practice, informational meetings are being held with residents adjacent to proposed street improvements to be completed in 2013. At these meetings we explain the anticipated improvements and costs to gauge resident acceptance of each project. An important piece of the cost information provided to the residents at the meeting is an estimate of the assessable cost that they would pay. Since the adoption of the City's assessment policy, a maximum capped assessment rate per front foot has controlled the assessable portion of a reconstruction project. In the past the maximum assessment rate has typically been increased between 0 -3 percent annually in an attempt to account for inflation. The last reconstruction project that was completed was in 2011 when Dianna Lane was completed and the maximum capped residential assessment rate was $61.50 per assessable front foot. We have seen some increase in construction cost since 2011. Gas prices have had some peaks and valleys, but gas prices are currently in relatively the same range as they were in 2011 at this time. With those factors in mind staff is recommending a 3% increase be applied to the maximum assessment rates bringing that number to $63.35 for residential property and $126.70 for commercial property. This would effectively be a 1.5% annual increase for two years. At this time we would like to request council direction on the matter so that accurate information can be provided to those attending the informational meetings. If you have any questions please feel free to call me at 763 -780 -0450. 10062 Flanders Court NE — Blaine, MN 55449 — (763) 780.0450 tax (763) 780.0452 Z: \PROD \120164E - 2013 Street & Utility Improvements \0030 \Memo - 011013 -CC (2013 Assessment Rate).daa