Misc News Propaganda - Laserfiche WebLink

Home Browse Search

a V. Conclusion. (Modified from a League of Minnesota Cities Improvement Guide.) Special assessments are intended to reflect the influence of a specific local improvement upon the value of the property. No matter what particular formula or method is used to establish the amount of the assessment, the real measure of benefits is the increase in the market value of the land as a result of the improve- ment. In the past, councils have been given broad discretion in determining benefits and their determination has not been overturned unless that discretion was abused; however, recent cases have made this council determination more vulnerable and has thus called for a re-examination of council procedures in order to safeguard special assessment financing. Now, when a dissatisfied property owner appeals from a special assessment and alleges that the assessment exceeds the increase in market value of his property resulting from the improvement, the reviewing court will not grant any deference to the decision of the council. Instead, on such appeals, the court will take new evi- dence and determine the amount of benefit as if the council had never made a decision on that issue. Cities continuing to finance local improvements by special assessments will be required to use much more care in the conduct of such a proceeding. Certainly, before ordering an improvement, the council should, as in the past, gather as much evidence as possible on the issue of whether or not the benefits to be derived from in- stallation of a particular improvement are sufficient to justify the cost and make specific findings as to increases in market value. Where an improvement has been petitioned for and the benefit does not substantially exceed the cost, a council might adopt different strategies depending upon its objectives and what it sees as the potential for appeals. When the council would not order an improvement unless vir- tually all the cost can be collected through special assessments, it may want to obtain waivers of rights to appeal before entering into the contract and ordering the improvement. That plan may be feasible only if the assessable area is small. For similar larger • projects, the council might consider making the improvement contract conditional on the absence of filing of objections for 30 days after the assessment hearing. If this plan were followed, a binding con- tract would not be entered into nor would any improvement work start until after both the improvement and assessement hearings were con- cluded and the time for appeal had run. While the city might be sada .ed with some unforeseen cost if this plan were used, a council might decide that avoidance of litigation costs would be worth that chance. -6-