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HomeMy WebLinkAbout2002.09.03 RESO 2002-0046RESOLUTION NO. 200246 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUGO, WASHINGTON COUNTY, MINNESOTA, ADOPTING SPECIAL ASSESSMENT POLICIES WHEREAS, the City Council deems it advisable and in the best interest of the City of Hugo to adopt policies relating to special assessments. WHEREAS, the City Council intends that these policies not be construed as exclusive but instead to provide general guidelines for addressing assessments in the City and in enacting these policies, the City Council aclmowledges that special cases and variations may be required based on the particular facts present in any given situation. NOW, THEREFORE, rr IS HEREBY RESOLVED by the City Council of the City of Hugo that the following assessment policies will be followed for all public improvements in the City of Hugo: 1. Assessments. The total of assessme=nts cannot exceed the project costs and must be apportioned equally within properties having the same general land use, based on benefit. The total assessment against any particular parcel shall not exceed the benefit to that parcel. Project costs may include part or all of the costs of previously installed projects, which were not previously assessed. 2. When Assessments WM Not be Levied. No special assessments will be levied against designated flood plains, municipal storm water ponds or wetland areas on private property as determined by criteria in the Wetland Conservation Act of 1991 and the Minnesota Department of Natural Resources. The limits of wetlands will be determined by the City on a case by case basis at the time of preliminary project design and feasibility report preparation. No special assessments will be levied against railroad, county highway or state highway right-of-ways. 3. Interest Rate. The rate of interest on assessments for which bonds were issued to finance the project shall be two percent (2%) greater than the rate of interest on the bonds. In the event that no bonds were issued to finance the project, the rate of interest shall be two percent (2%) greater than the average rate of interest on all bonds issued in the prior calendar year, or if no bonds were issued in the prior calendar year, two percent (2%) greater than the current bond market rate for the City of Hugo. 4. Method of Assessment. When residential parcels are assessed on a unit basis, a unit shall be defined as one buildable lot. In all other areas, the definition of unit shall be made based on the circumstances. The special assessment method described in this policy statement cannot be considered as all inclusive. Unique or unusual circumstances may at time justify special considerations. In such situations, the City Council may, from time to time, establish by resolution new assessment policies to cover situations that may not have been contemplated in this policy. S. How Particular Improvements Will Be Assessed: A. Public Street ImDrovements (Not Indudim Mmor Maintenance). 1. For improvements to existing public streets, roadways or alleys, including sidewalks, curb and gutter, fifty percent (50%) of the project costs shall be assessed against the owners of parcels adjacent to the improved street, roadway or alley. 2. For new developments or properties petitioning for improvements not in the Capital Improvements Plan, one hundred percent (100%) of the project costs shall be assessed to all parcels within the development. 3. Minor maintenance (for which no assessment will be charged) includes sealcoating and bit uninous milling and overlays, pothole patching and crack sealing. 4. All street improvements will be assessed on a front footage basis with one hundred percent (100%) of the frontage being improved subject to assessment. (or all street improvements will be assessed on a unit basis). 5. Properties adjacent to local streets being reconstructed will be given the option of having their driveways reconstructed at contract unit prices. Residents will be notified of this program at informational meetings for each street project. N a resident participates in this program, staff will coordinate construction with the contractor and will measure the quantities of pavement installed. The cost of driveway reconstruction will be added to the assessment for the subject property. 6. When a corner lot has frontage on two (2) local streets, it will be charged thirty-seven percent (37%) of the front footage charge to the front side, and thirteen percent (13%) for the side. Land Use Types % of Cost Retail/COmmerciaUlndustrial 100% Non-ProfidTax exempt 75% Multi Family Residential 75% Single-Family/Duplex 50% B. Ptivate Street Improvements. 1. Unless otherwise specified by the City, the developer or owners of lands adjoining private streets shall undertake and pay for improvements to private streets and appurtenances according to City specifications. 2 C. Sanitary Sewer Amus. Watermains. 1. For improvements to existing sanitary sewer and watermain laterals, fifty percent (50%) of the project costs shall be assessed against the owners of parcels adjacent to the improved street, roadway or alley. 2. For new developments and projects petitioned by benefiting properties and not included in the Capital Improvements Plan, one hundred percent (100%) of the project costs for sanitary sewer and water utilities shall be assessed to all parcels within the development. 3. Sewer and water services shall be assessed on a per service basis at one hundred percent (100%) of the City's expenses for such services. D. Sanitary Sewer and Water Main Trunks. The assessment for trunk uses is based on area. The full cost of the trunk system shall be assessed equally over the benefited area, at a determined rate per unit. K Storm Sewer. For new developments, or improvements petitioned for by benefiting properties not included in the Capital Improvements Plan, one hundred percent (100%) of the storm sewer costs shall be assessed to all parcels within the development, or the assessment shall be the fee required to be paid by the City's Stormwater Trunk and Ponding Fee Ordinance. F. Sidewalks. 1. For improvements to existing sidewalks, fifty percent (50%) of the project costs shall be assessed against the parcel through which the sidewalk runs. 2. For newly constructed sidewalks- in existing residential developments, fifty percent (50%) of the project costs shall be assessed against the parcels through which the sidewalk runs. 3. For new developments, one hundred percent (100%) of the project costs shall be assessed against all parcels within the development. G. Curb and Gutter Improvements. 1. For improvements to curbs and gutters on existing roadways, fifty percent (50%) of the project costs shall be assessed against the adjacent parcels. 2. For new developments, one hundred percent (100%) of the project costs shall be assessed against the adjacent parcels within the development. 7. Assessable Costs. The amounts included in the costs assessable under this policyshall include the following: A. Contract costs, including amounts paid - to contractors for constructing the improvements, and engineering, legal, right of way and condemnation costs. 3 B. Construction Interest. The costs of financing during the period between the date when the first payment is made to the contractor exceeding any amount placed in escrow pursuant to the development agreement, and the date that the assessment rule is approved by the City Council. The interest rate paid shall be the same as the expected assessment rate. C. Expenses. Costs incurred by the City in addition to the contract costs, including advertising, finance charges, administration and the assessment process. D. Project Cost (total cost of the improvement). Total of contract costs, interest, and expenses for work previously done but not assessed. & Calculation of Payment. The assessment amount shall be amortized over the term of the assessment, at the applicable interest rate, with equal installment payments through the term. 9. Delay or Deferment of Assessments. A. Sanitary sewer, storm sewer and water improvement projects -Pursuant to Mmn.Stat. S. 429.051, the City may delay making assessments for these types of improvements on property that is not completely developed, such as property which is presently served with a septic system. These costs may be deferred until the property develops, subdivides, or hooks up to the system. B. Street, Curb, Gutter and Sidewalk projects No deferment will be made for these costs unless they front unimproved property. C. Unimproved Property. The City may, in its discretion, defer the first installment of any assessment upon unimproved property until some designated future year, until the property is platted or until improvements are constructed on the property. In these cases, if deferral is made, then the entire assessment for the property is deferred. The minimum assessment for which deferral can be considered is $500.00 and the minimum size of the parcel for which deferral can be considered is a buildable lot in the respective district. Interest may accrue on the deferred amount. 10. Low Income Senior Citizen and Disability Deferments: As required by Minnesota Statute, the City has a special assessment deferral policy for low income senior citizens and disabled persons meeting all of the following criteria: A. The property upon which the assessment is deferred must be homestead; B. The property is owned by a person at least sixty-five (65) years of age on January I' of the year in which payment of the first installment of the subject assessment is due; or is owned by a person who is retired due to permanent and total disability. 4 C. The applicant must have a "financial hardship" defined as: 1. An annual income at or below a level established annually by City fee resolution and; 2. The aggregate total of all special assessments levies will exceed one and one- half percent (1 %%) of the applicant's annual income. . Any homestead property, at least one of the owners and occupiers of which is sixty-five (65) years of age or older, and for whom the total household income does not exceed the federal poverty guidelines per year, shall qualify for deferment of special assessments. Interest at the rate determined in the assessment policy shall be added to the assessment each year for which a deferment is sought. The total assessment, and all interest accruing thereon, shall be payable at the time that the property changes ownership. This deferment policy shall be changed from time to time to confirm with any changes which taken place in the Minnesota Statute which allows said deferments. Application for said deferment shall be made annually, by completing a form provided by the City of Hugo. WHEREUPON, said Resolution was declared duly passed and adopted by the City Council for the City of Hugo this P day of September 2002. n, Mayor ATTEST: Mary Ann Creager, City Clerk