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Home My WebLink About07-25-1995 Charter Agenda Lino Lakes Charter Commission 22 5 Public Hearing Agenda • OVERVIEW AND INTRODUCTIONS • REASON FOR AMENDMENT • AMENDMENT HISTORY/SCHEDULE • SUMMARY OF CURRENT CHARTER, CHAPTER 8 • AMENDMENT • IMPACT OF AMENDMENT • EXAMPLES OF IMPROVEMENT PROJECTS/ASSESSMENTS • QUESTIONS AND ANSWERS Lino Lakes Charter Commission 25Ju195 Reason for Amendment LINO LAKES HAS ROADS THAT ARE AGING AND CAN NO LONGER BE PATCHED, BUT NEED TO BE REPLACED(RECONSTRUCTED). • Current road construction lasts approx. 20-25 years before deteriorating • Roads built 20 years ago were not built to todays standards • Wetlands, poor road conditions accelerate road wear-out • Lino Lakes currently spends -$200K annually on road maintenance Lino Lakes Roadway Mileage: TRUNK HIGHWAYS 17.6 miles COUNTY STATE AID HIGHWAYS 18.4 miles COUNTY ROADS 9.6 miles MUNICIPAL STATE AID STREETS 9.0 miles 54.6 miles LOCAL ROADS 68.9 miles 123.5 miles Age of local roads (year constructed): Pre - 1966 22.1 miles 1966 - 1970 6.6 miles 1971 - 1975 1.9 miles 1976 - 1980 14.6 miles 1981 - 1985 5.8 miles 1986 - 1990 6.9 miles 1991 - 1994 11.0 miles 68.9 miles • 5.58 miles of local roads are currently identified as needing reconstruction ($4.9M) CURRENT CITY CHARTER DETERS CITY FROM PLANNING AND EXECUTING THESE IMPROVEMENTS Lino Lakes Charter Commission 25Ju195 Amendment History/Schedule 30Mar95 • Initial street improvement presentation by city engineer • Charter Commission requested more detailed information 4May95 • Detailed street condition/cost presentation to Charter Commission • Charter Commission defined 6 options to address situation • Sub-committees to research options 1 Jun95 • Presentations and discussion on each of 6 options • Options reduced to one • Process to place amendment on November ballot defined 7Jun95 • Charter Commission informed City Council of amendment and requested assistance June95 • Specific language of amendment defined with League of Minnesota Cities attorney and Lino Lakes City attorney 30Jun95 • Notification mailing sent to all Lino Lakes residents 24Ju195 • City Council status'ed on amendment 25Ju195 • First Public Informational Hearing 10Aug95 • Second Public Informational Hearing 12Sep95 • Exact language for ballot due October95 • Informational mailing to all residents 7Nov95 • Election Lino Lakes Charter Commission 25Ju195 Charter Chapter 8 Summary Chapter 8: Public Improvements and Special Assessments 8.01 • Gives city power to make improvements -- • Limits assessments to: - Cost with interest - Benefits received 8.02 • Charter governs improvements 8.03 • City to create ordinances, etc. to detail specifics for improvements and assessments 8.04 Special Assessment Procedure Subdiv. 1 • Initiated by >25% petition of benefited land owners and majority of council; or, 4/5 majority of council • Detailed process for hearings, timing, etc. • Improvement stopped if: - Greater number petition against than proposed (or subsequent pro petition) - >50% petition against if proposed by 4/5 council Subdiv. 2 • Improvement must go to voters if general funds used Subdiv. 3 • Improvement start to commence between 60 days and 1 year of hearings (if costs exceed estimate by >10% must rebid) Subdiv. 4 • One year moratorium on improvement if disallowed 8.05 • Services can be assessed (mistaken reference of 8.03 instead of 8.04) 8.06 • If 100% of affected petition for, process can be expedited 8.07 Local Improvement; Special Provisions Subdiv. 1 • Three economic districts to follow State Statute 429 Subdiv. 2 • Legal description of three districts Subdiv. 3 • Residential in these districts can petition out • Right lasts as long as property is residential Lino Lakes Charter Commission 25Jul95 Chapter 8 Amendment Draft Replace entire sections of 8.04, 8.05, 8.06 and 8.07 of current charter with below two sections. 8.04 Special Assessment Limitations Subdivision 1. The amount of the special assessment against a benefited property shall be limited to the special benefit received from an improvement project. Subdivision 2. The amount of the special assessment which may be levied against a benefited property shall be limited to the lower of: A. 10% of assessed property value as established for property tax purposes, or B. $25,000.00 All special assessments levied shall be spread with equal principal and interest payments over a minimum of 10 years. Subdivision 3. The amount by which a special benefit received under Subdivision 1 hereof exceeds the amount that may be levied under Subdivision 2, shall be considered a deferred assessment. Subdivision 4. The deferred assessment shall bear interest accrued from the date of the resolution establishing special assessments, at a rate not to exceed 1% in excess of the interest rate paid by the City on the improvement financing. The deferred assessment shall be due and payable in full upon subdivision of or sale of the property. 8.05 Additional Funding Improvement costs not covered by special assessments may be funded by the use of general funds of the City. Lino Lakes Charter Commission 25Ju195 Impact of Amendment • Allows use of general funds for public improvements • Removes ability of benefited properties to stop a public improvement Current charter stops an improvement if >50% of benefited property owners petition against it Amendment reverts this control back to State Statute 429 which requires initiation of a public improvement by one of two methods, but then does not provide for petition rights to stop improvement. To initiate requires: Petition for improvement by 35% of benefited owners, and majority council vote, or; 4/5 majority council vote • Provides a cap on assessments levied in effort to prevent owners being forced to sell or subdivide land to finance an assessment • Deferred assessments payable at sale or subdivision of property in fairness to taxpayers • Allows city to more easily plan, coordinate and manage improvements • Simplifies complicated and tangled language of current chapter 8 • Other redundant charter codifications: - Assessments limited to benefits received (SS 429) - Provides 10 year minimum spread of assessment (policy - 15 years) Establishes interest rate limit (policy) Example 1 Example 2 Example 3 Assessable Lot Area . 303 Acres 1 . 09 Acres 10.45 Acres Assessable Front Footage 80 feet 125 feet 660 feet Assumed Property Valuation $90, 000 $125, 000 $200, 000 Sanitary Swr. Lateral Benefit - 100% $ 2 , 640 $ 4 , 125 $ 21, 780 Watermain Lateral Benefit - 100% $ 1, 840 $ 2 , 875 $ 15, 180 Street/Storm Sewer Lateral Benefit - 20% $ 1, 343 $ 2 , 099 $ 11, 081 Total Assessable Lateral Benefit $ 5, 823 $ 9 , 099 $ 48 , 041 Assessment $ 5, 823 $ 9 , 099 $ 20, 000 Deferred Assessment 0 0 $ 28 , 041 NOTE: 1. These figures represent lateral benefits only, not connection charges. 2 . Assumed improvement costs: Sanitary Sewer $33/assessable front foot Watermain $23/assessable front foot Street/storm swr $83 . 95/assessable front foot Number of Lots Zoned R1 or RI-X 2 , 835 Number of Lots Zoned R1 or R1-X larger than 5 acres in size 44 Number of Lots Zoned R, R-BR or RX less than 5 acres in size 1, 752 Number of Lots Zoned R, R-BR or RX greater than 5 acres in size 378 NOTE: These numbers are approximates LINO LAKES HOME RULE CHARTER COMMISSION June 30, 1995 PUBLIC HEARINGS ON CHARTER AMENDMENT When: TUESDAY, JULY 25, 1995 and THURSDAY, AUGUST 10, 1995 Time: 7:00 PM Where: Rice Lake Elementary School 575 Birch Street The Charter Commission will be placing a Charter amendment on the ballot in the November 7, 1995 election. This will have an effect on all Lino Lakes residents and property owners. This Charter amendment will deal with: PETITION RIGHTS for special assessments and LIMITING ASSESSMENTS that may be levied Please attend to provide additional input into the process, as well as to obtain critical information to make an informed decision in November. The meetings will include a brief presentation of the current charter and the proposed amendment; examples of assessments under both options; and, questions and discussion. An attorney. from the League of Minnesota Cities will attend both meetings, and the City Attorney will be at the July 25, 1995 meeting, to help answer questions. Please contact any of the Charter Commission members (listed below) if you have any questions concerning these meetings. Mark Benson 429-0405 Judy Michaud 484-251 5 Dana Berg 653-6570 Paul Montain 653-0859 Bill Bohjanen 784-4762 Bart Rehbein 780-5043 Bob Doocy 7 8 6-21 6 9 Joyce Scharpen 7 8 6-1 6 0 3 Bill Houle 429-2086 Ron Solfest 785-1 823 Ray Johnson 784-9578 Diana Turner 784-8672 Rick Lafond 490-9250 Bob Williams 780-801 1 LINO LAKES CHARTER COMMISSION Ron Solfest, Chairman 162 Egret Lane Lino Lakes, Minnesota 55014 OPEN IMMEDIATELY: Important Public Meeting