2023.07.24 Packet - Laserfiche WebLink

Home

Council Meeting Minutes for July 10, 2023 Page 8 of 11 Klein made motion, Petryk seconded, to approve RESOLUTION NO. 2023-20 A RESOLUTION ORDERING PREPARATION OF A FEASIBILITY REPORT FOR PUBLIC IMPROVEMENTS TO ALL OR PORTIONS OF ROADWAYS IDENTIFIED AS THE 2024 STREET IMPROVEMENT PROJECT. All Ayes. Motion carried. Discussion on Assessment Fees City Engineer Mark Erichson explained that the City of Hugo last amended its assessment policy in 2013, and occasional review of the policy to confirm or modify the assessment approach was a good municipal practice. He said some communities do not assess, but many do. In Hugo, this system was the way road projects were financed. He talked about different assessment types that could be used. Hugo had a set rate per unit that was uniform for all properties and based on the type of project being done. Rates had not been changed in ten years, and construction costs had gone up. He questioned whether Council felt those rates were where the City wanted them to be. Miron asked about the state statute governing assessments and what percent of the projects were assessed. Erichson replied that it was Chapter 429 that provided legal guidance to the process. It defined who and how much could be assessed, and he said it was related to the benefit received. The percent of the project costs assessed was typically in the single digits to somewhere in the 30 percent range. Last year’s project was assessed around 33 percent. The City typically funds around 80 percent. Commercial and multifamily rates were different because they were essentially based on 80-foot-wide lots, and there was a factor of 1.5 applied to commercial and multifamily. Those assessments were often significantly less due to the density. Erichson talked about unique circumstances that were not covered in the assessment policy such as the Oneka Parkway project last year where most units did not have frontage but had common space and outlots. He would like to include language to clarify this in the policy. Weidt asked about roadway reclamations (rural). Erichson replied that most often when these projects were done, the material remained in place and paved over. In areas where there was curb and gutter, the material could not be reclaimed because it raised the road. Erichson said the policy could be modified to include more concise language on that. Petryk said she was on the Council when the current policy was drafted which involved a lot of work. She said she was in favor of the policy in 2013 and thought the policy had worked well. Klein agreed with Petryk saying this had worked for the City for years. The City picks up approximately 80% of the costs. He felt projects turn out nice and increased property values. Weidt talked about roads being a community network, and when a project comes into a neighborhood, there was an expectation and requirement for property owners to pay an assessment. He said this would be an opportunity to clean up the policy, and all Council members agreed.