HomeMy WebLinkAbout1997-118 CCRMember V2, pt IS 'Orn introduced the following resolution and moved
• its adoption:
RESOLUTION NO.
RESOLUTION AMENDING THE CITY OF BROOKLYN CENTER'S SPECIAL
ASSESSMENT POLICY
WHEREAS, the City Council by Resolution No. 93-49 established an Assessment
Stabilization Program; and
WHEREAS, the City Council finds that sufficient funds are not available to
continue financing said Assessment Stabilization Program; and
WHEREAS, the City Council by Resolution No. 78-87 established a policy
providing for the deferral of special assessments under the provisions of Minnesota Statutes
435.193 through 435.195. Said policy was subsequently amended by Resolutions 85-143 and 90-
,137; and
WHEREAS, the City Council desires to update the City's Deferment of Special
• Assessments Policy; and
WHEREAS, the City Council by Resolution No. 94-274 adopted a Special
Assessment Policy which incorporated numerous policies related to special assessments for
improvement projects into a single document.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center, Minnesota that the City of Brooklyn Center's Special Assessment Policy is
hereby amended as follows:
1. The Assessment Stabilization Program is hereby discontinued.
2. The Deferment of Special Assessments Policy is hereby amended as
follows:
"Financial hardship" is defined as having an annual income for the
household's size which is at or below the "Very Low Income" limit
established annually by HUD for the Minneapolis and St. Paul
Metropolitan Area.
0
I •
is
Resolution No. q -7-11S
3, The City of Brooklyn Center's Special Assessment Policy is hereby
amended to delete references to the Assessment Stabilization Program and
to insert the Deferment of Special Assessments Policy as amended by this
resolution.
7 l4 1 Iq7
ate Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
RDber+ Peffe and upon vote being taken thereon, the following voted in favor
thereof:
M,jrna kra5re,(Bj)?bax h0S-i&'vI, i ay IAA- marl, IRAe(+ CPPPe-
and the following voted against the same: ►i)pne
whereupon said resolution was declared duly passed and adopted.
q � -) )w
City of Brooklyn Center Special Assessment Policy
SECTION
r. oo CE?44 STABILIZATION
ST A BI 77 A TION PROGRAM
n OG A A,f
June, 1997
Page 8
City of Brooklyn Center Special Assessment Policy
•
SECTION IV. ASSESSMENT DEFERRAL PROGRAM
There shall exist a program to defer a portion of the special assessments of qualifying persons
under the provisions of Minnesota Statutes 435.193 through 435.195. Said program shall defer the
payment of a portion of certified special assessments by property owners who are at least 65 years of
age or older or who are retired due to permanent and total disability whose households meet certain
financial characteristics.
A. Eligibility
The property upon which the assessment is deferred must be homesteaded;
2. The property is owned by a person at least 65 years of age on January 1st of the year in
which payment of the first installment of the subject assessment levy is due; or is
owned by a person who is retired due to permanent and total disability.
3. The applicant must have a "financial hardship" defined as:
a. An annual
• income for the applicant's household size which is at or below the "Very Low
Income" limit established annually by HUD for the Minneapolis and St Paul
Metropolitan Area: and
b. The aggregate total of special assessment installments from previously -existing
special assessment levies plus the first year of the current levy will exceed 1-1h
percent of the applicant's annual income.
B. Calculation
1. The portion of the current levy which will be deferred will be that portion of the levy
against the applicant's property which requires a first year installment payment which,
when added to the applicant's annual payments from previously existing special
assessment levies, would result in an aggregate total of special assessment installments
totaling more than 1-1h percent of the applicant's annual income. The portion of the
current levy which can be paid without aggregating total installments above 1-1h
percent of the applicant's annual income shall not be deferred.
2. Special assessments levied due to the applicant's failure -to -pay charges for City
services or failure to comply to City codes (i.e. delinquent utility assessments,
assessments for weed removals, assessments for nuisance abatement, etc.) shall not be
deferred, and installment payments for existing levies for such services shall not be
included in calculating the maximum 1-1/2 percent aggregate payment defined in
paragraph B.1. above.
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City of Brooklyn Center Special Assessment Policy
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C. Interest
Simple interest at the rate of that particular assessment levy shall be added to the
deferred assessment, calculated from the date interest started to accrue on the original
levy (usually the October 1 immediately following he certification date) to the date of
payment of the deferred portion of the assessment.
D. Termination
The option to defer the payment of special assessments shall terminate and all amount
accumulated plus applicable interest, shall become due upon the occurrence of one of
the following events:
L The death of the owner, provided that the spouse is otherwise not eligible for the
benefits.
2. The sale, transfer, or subdivision of the property or any part thereof.
3. If the property should for any reason lose its homestead status.
• 4. The City Council determines that a hardship no longer exists.
•
June, 1997
Page 10
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CITY OF BROOKLYN CENTER
• SPECIAL ASSESSMENT POLICY
TABLE OF CONTENTS
SECTION I. GENERAL POLICIES .................... ........ .. ... 1
A. Initiation of Public Improvement Projects ........................... 1
B. History .................................................. 1
C. Financing and Assessment Policies Applicable to all Types of Improvements .... 1
SECTION II. SURFACE IMPROVEMENTS ................................ 2
A. Standards for Surface Improvements ... ......... ............... 2
B. Assessment Formula for Surface Improvements ... .. ....... ... 3
1. Residential Streets ..................................... 3
2. Municipal State Aid Streets ............................... 4'
3. Alleys ............................. 5
SECTION III. SUBSURFACE IMPROVEMENTS .............................. 5
A. Standards ................................................ 5
B. Water Mains ................................. .... ...... 5
C. Sanitary Sewer ............................................ 6
D. Storm Drainage ................. 7
SECTION IV. ASSESSMENT DEFERRAL PROGRAM ............................ 8
A. Eligibility ...... .................... .......... 8
B. Calculation ................................................ 8
C. Interest ............................................ 9
D. Termination ............................................... 9
June, 1997 Page i
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SECTION I. GENERAL POLICIES
A. Initiation of Public Improvement Projects
Public improvement projects may be initiated by petition of affected property owners.
Public improvements may also be initiated by the City Council when, in its judgment, such
action is required.
The Capital Improvements Program shall detail a program of street improvements
based on Pavement Management Program data, street and utility maintenance records,
Municipal State Aid Standards, and the Local Storm Water Management Plan.
B. History
In .1964, the Village Council approved a Special Assessment Policy which detailed
matters regarding the financing of public improvements as the community developed. This
Policy has been periodically amended, and related policies approved by separate resolution. In
1985, a substantial change in policy was approved by resolution, when the City abandoned
• residential assessments based on frontage to adopt a policy based on residence unit. This policy
is intended to incorporate all policies related to improvement project financing. It is
understood that this policy cannot anticipate every situation, and that certain circumstances may
justify deviations from this policy.
C. Financing and Assessment Policies Applicable to all Types of Improvements
When an improvement is constructed which is of special benefit to properties within a
definable area, it is the intent of the City Council that special assessments be levied against the
benefitted properties within that area to the extent that the costs of such project can be deemed
to benefit the properties. The following general principles shall be used as a basis of the City's
assessment policy:
1. The "project cost" of an improvement shall be deemed to include the costs of all
necessary construction work required to accomplish the improvement, plus
engineering, legal, administrative, financing, and other contingent costs.
2. The "assessable cost" of an improvement shall be defined as being those costs which, in
the opinion of the City Council, are attributable to the need for service in the area
served by the improvement. Said "assessable cost" shall be equal to the "project cost"
of the current project, minus any credit attributed to remaining useful life expectancy or
to that part of the improvement deemed to benefit the community as a whole.
June, 1997 Page 1
City of Brooklyn Center
Special Assessment Policy
is 3. Terms of special assessments shall be as follows:
a. Street improvements - 10 years
b. Bituminous alley improvements - 10 years
Concrete alley improvements - 20 years
C. Water and sanitary sewer hookups and improvements - 10 years
d. Storm sewer improvements - 10 years
Interest is charged at a rate established by the City Council at the time of certification
of the levy.
SECTION II. SURFACE IMPROVEMENTS
Surface improvements shall include grading and base construction, sidewalks, curb and
gutter, surfacing, resurfacing, undergrounding overhead utilities, landscaping, beautification, and street
lighting.
A. Standards for Surface Improvements
1. Arterial streets—shall be of "9 ton" design, of adequate width to accommodate
• projected traffic volumes. Sidewalks shall be provided on both sides of all arterial
streets unless specifically omitted by the City Council, and shall be of the width
approved by the City Council.
2. Collector streets—(including commercial and industrial access streets) shall be of "7
ton" design, or "9 ton" design, based on anticipated usage, and shall normally be
constructed in accordance with state aid standards. Sidewalks may be provided on one
or both sides of all collector streets in accordance with the comprehensive plan and
shall be at least 5 feet in width, unless otherwise approved by the Council. Wherever
feasible, a boulevard at least 7 feet in width shall be provided, measured from the street
face of curb to the street face of the sidewalk.
3. Residential streets—shall be of "5 ton" design, 30 feet in width, measured between
faces of curbs or edge of street, unless otherwise approved by the Council. The
Council may order the construction of sidewalks when such construction is warranted.
4. Alleys, in residential areas, shall be of "5 ton" design. Alleys shall be of bituminous
construction unless drainage or other conditions require concrete.
5. Street lighting, when installed, shall be installed in accordance with the Council's
policy on street lighting. Mid -block lights may be installed when the length of one
block from the centerline of one intersecting street to the next intersecting street
exceeds 700 feet, or when it is determined that a special public safety benefit would
accrue.
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City of Brooklyn Center Special Assessment Policy
• B. Assessment Formula for Surface Improvements
The assessments to be levied against properties within the benefitted areas shall be
distributed to those properties on the basis of the following provisions:
Residential Streets
For residential properties zoned R1, the assessment to be applied against each
non-subdividable property shall be a unit amount established annually by the
City Council. Said assessment is intended to represent a specific proportion of
the average cost of making a typical improvement, such as the average cost of
reconstructing a typical block of residential street. For properties which may
be legally subdividable into two or more lots, the assessment to be applied shall
equal the maximum number of lots allowable times the unit assessment. The
assessment shall be calculated as follows:
1. For reconstruction or resurfacing of a residential street, the average
cost of a typical similar project shall be multiplied by the Council's
designated proportion to be assessed. The total assessed shall be
divided by the average number of lots to be assessed to determine the
unit assessment.
2. Absent any other policy changes, such as an increase in the proportion
of cost to be assessed, the unit assessment shall be adjusted annually to
reflect cost of living increases as measured by the Construction Index.
b. For residential properties zoned R2, the assessment shall be applied on a front
foot basis, said unit being calculated as follows: The R1 unit assessment shall
be divided by 75 feet, to determine the front foot rate. The minimum
assessment for an R2 property shall be the Rl unit assessment.
C. For residential properties zoned R3, the assessment shall be applied per unit on
the following basis. The R2 front foot rate shall be multiplied by the total feet
of frontage to determine the total benefit. The total benefit shall be divided by
the total number of units in the development to determine the unit rate.
d. For R4 to R7 properties, commercial, industrial, institutional, or special use
properties, the benefits and resulting assessments shall be determined on an
individual project basis.
e. For those properties zoned R1 or R2 having frontage on two or more streets,
special assessments shall be levied for improvements on only one of those
frontages, at the owner's choice. For example, a property on the corner of A
street and B Avenue may choose to be assessed when A street is improved, or
• B Avenue, but not both.
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City of Brooklyn Center Special Assessment Policy
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Municipal State Aid Streets
a. For properties that are not commercial or industrial in project areas which are
primarily residential in character:
1. Benefitting properties abutting a state aid designated street shall be
assessed in the same manner as those abutting other residential streets.
2. In those cases where a municipal state aid street improvement project
removes parking from a residential street where parking was previously
allowed, no special assessments shall be levied. Where parking
arrangements have been made, special assessments shall be levied.
b. For properties which are commercial or industrial in project areas which are
primarily residential in character, and for those properties in commercial areas:
1. Commercial and industrial properties shall be assessed based on an area
(acreage) basis. An "A" zone of benefit shall be determined on a
project basis, but would typically include that area of all properties
abutting the street to be improved, extending to a depth of 200 feet or
the property depth, whichever is less. A "B" zone of lesser benefit
may be established to identify those properties or portions of properties
which do not abut the improved roadway, but which accrue benefit.
2. Unless otherwise approved by the City Council, benefitting properties
within this category will be assessed for 70 % of the total project cost.
The Brooklyn Center State Aid Fund will be liable for the remaining
30% of the project costs.
3. If there is a combination of commercial, industrial and residential
properties, the commercial -industrial rate will be determined by
calculating an equivalent footage rate based on assessing 70% of the
total project cost, while the residential properties will be assessed in
accordance with Subsection 2.a. of these policies.
3. Alleys
a. The cost of installation, resurfacing, or reconstruction shall be assessed on a
unit basis. Forty percent of the cost to be assessed shall be assessed equally to
all owners of lots abutting the alley. The remaining 60 percent shall be
assessed equally to all owners of lots currently having access to the alley.
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City of Brooklyn Center Special Assessment Policy
is b. The cost to be assessed shall include all project costs. For properties where a
non -hard surfaced driveway exists, the cost of constructing an asphalt driveway
between the paved portion of the alley and property line, minus the cost of sod
restoration for an equivalent area, shall be individually computed and added to
the uniform assessment for the specific property involved.
SECTION M. SUBSURFACE IMPROVEMENTS
Subsurface improvements shall include water distribution lines, sanitary sewer lines and storm
sewer lines, ponds, or other drainage improvements.
A. Standards
Subsurface improvements shall be made to serve current and projected land use. All
installations shall conform to the minimum standards therefore as established by those state,
local, or federal agencies having jurisdiction over the proposed installations. All installations
shall also comply, to the maximum extent feasible, to such quasi -official, nationally recognized
standards as those of the American Insurance Association (formerly National Board of Fire
Underwriters).
Service lines to the property line of each known or assumed building location shall be
Is
installed in conjunction with the construction of the mains.
B. Water Mains
All properties shall be assessed their share of the cost of installing water main to serve
the property and the cost of installing the water service line between the water main and the
property line. In addition, all properties shall be assessed their share of city-wide or area
improvements such as distribution mains, wells, above ground storage, and elevated storage
tanks.
For those improvement projects where existing main or appurtenances are repaired or
replaced, including service replacement to the property line, no special assessments
shall be charged. The full cost of said improvements shall be financed by the Water
Utility Fund.
2. For those improvement projects where main or appurtenances are installed to provide
new service to previously unserved properties, the full cost of said improvement shall
be assessed, with the basis being the Engineer's determination of benefit to each newly
served property.
3. All properties not previously assessed for water main, storage, and source
improvements shall be charged at the appropriate rate as established by the most
current "Water Hookup Fee Schedule", unless the City Council by previous or current
action has established a different rate.
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City of Brooklyn Center
Special Assessment Policy
• a. For those properties zoned R1 or R2, the hookup fee shall be charged on a unit
basis. If the City had previously installed a water service to the property and
the property had not been assessed, the rate shall be "residential unit with
service." If the service had not been installed, the property shall be assessed
the "residential unit without service" rate, and the property owners shall be
responsible for the full cost of installing a service from the main to the
building.
•
b. For those properties not zoned R1 or R2, the hookup fee shall be charged on a
combination front foot and area basis. The total lineal feet of frontage shall be
charged at the front feet rate. This charge shall represent the hookup fee for
that part of the property from the property line to a depth of 135' or the back
property line, whichever is less. That part of the property outside the "front
135 feet" shall be charged a hookup fee based on area, at a rate per 100 square
feet. Properties for which one or more services have been extended to the
property line which had not previously been assessed for those services shall be
charged the residential service rate per service. Properties without services
shall be responsible for the full cost of installing service from the main to the
building.
C. Sanitary Sewer
All properties shall be assessed their share of the cost of installing sanitary sewer
laterals to serve the property and the cost of installing the sanitary sewer service line between
the street and the property line. In addition, all properties shall be assessed their share of city-
wide or area improvements such as interceptors and pumping stations.
For those improvement projects where existing lateral or appurtenances are repaired or
replaced, including service replacement to the property line, no special assessments
shall be charged. The full cost of said improvements shall be financed by the Sanitary
Sewer Utility Fund.
2. For those improvement projects where lateral or appurtenances are installed to provide
new service to previously unserved properties, the full cost of said improvement shall
be assessed, with the basis being the Engineer's determination of benefit to each newly
served property.
3. All properties not previously assessed for sanitary sewer, interceptor, or pumping
station improvements shall be charged at the appropriate rate as established by the most
current "Sanitary Sewer Hookup Fee", unless the City Council by previous or current
action has established a different rate.
June, 1997 Page 6
City of Brooklyn Center Special Assessment Policy
• a. For all properties, the hookup fee shall be charged on a front foot basis. If the
City has previously installed a sanitary sewer service to the property and the
property had not been assessed, the rate shall be "residential unit with service."
If the service had not been installed, the property shall be assessed the
"residential unit without service" rate, and the property owners shall be
responsible for the full cost of installing a service from the main to the
building.
D. Storm Drainage
All properties shall be assessed their share of the cost of installing storm drainage
facilities to serve the property. In addition, all properties shall be assessed their share of city-
wide or area improvements such as interceptors and detention ponds.
For a project which includes construction of a storm sewer interceptor, detention pond,
or other regional facility, an engineering study shall establish the distribution of benefit
and determine the assessable portion of the project cost.
The assessable cost of a storm sewer interceptor or detention pond shall be assessed
equally per unit of area (square foot, acre, etc.) over the entire district served by the
• interceptor or detention pond.
The assessment is generally levied in the current year of construction of the interceptor
storm sewer or detention pond, and it is entirely likely that a large number of properties
will be assessed which do not receive immediate and total drainage relief. It is,
however, considered that such properties do accrue benefit from the interceptor storm
sewer since the interceptor is available to receive lateral storm sewer connections, or
the detention pond or other regional facility may provide relief from storm events of
greater magnitude than a 5 year storm.
•
2. For those improvement projects where existing lateral or appurtenances are repaired or
replaced, or slightly upgraded, no special assessment shall be charged. The full cost of
said improvements shall be financed by the Storm Drainage Utility Fund.
3. For those improvement projects where laterals or appurtenances are installed to provide
new service to previously unserved properties, or where service is substantially
upgraded, a portion of the cost of said improvement shall be assessed. Said portion
shall be the same as the assessable portion of residential street improvement costs, as
established in subsection B.1.a.
June, 1997 Page 7
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City of Brooklyn Center
SECTION IV. ASSESSMENT DEFERRAL PROGRAM
Special Assessment Policy
There shall exist a program to defer a portion of the special assessments of qualifying persons
under the provisions of Minnesota Statutes 435.193 through 435.195. Said program shall defer the
payment of a portion of certified special assessments by property owners who are at least 65 years of
age or older or who are retired due to permanent and total disability whose households meet certain
financial characteristics.
A. Eligibility
1. The property upon which the assessment is deferred must be homesteaded;
2. The property is owned by a person at least 65 years of age on January 1st of the year in
which payment of the first installment of the subject assessment levy is due; or is
owned by a person who is retired due to permanent and total disability.
The applicant must have a "financial hardship" defined as:
a. An annual income for the applicant's household size which is at or below the "Very
Low Income" limit established annually by HUD for the Minneapolis and St.Paul
Metropolitan Area; and
b. The aggregate total of special assessment installments from previously -existing
special assessment levies plus the first year of the current levy will exceed 1-1h
percent of the applicant's annual income.
B. Calculation
The portion of the current levy which will be deferred will be that portion of the levy
against the applicant's property which requires a first year installment payment which,
when added to the applicant's annual payments from previously existing special
assessment levies, would result in an aggregate total of special assessment installments
totaling more than 1-'h percent of the applicant's annual income. The portion of the
current levy which can be paid without aggregating total installments above 1-1h
percent of the applicant's annual income shall not be deferred.
2. Special assessments levied due to the applicant's failure -to -pay charges for City
services or failure to comply to City codes (i.e. delinquent utility assessments,
assessments for weed removals, assessments for nuisance abatement, etc.) shall not be
deferred, and installment payments for existing levies for such services shall not be
included in calculating the maximum 1-ih percent aggregate payment defined in
paragraph B.1. above.
June, 1997 Page 8
City of Brooklyn Center Special Assessment Policy
• C. Interest
•
•
Simple interest at the rate of that particular assessment levy shall be added to the
deferred assessment, calculated from the date interest started to accrue on the original
levy (usually the October 1 immediately following the certification date) to the date of
payment of the deferred portion of the assessment.
D. Termination
The option to defer the payment of special assessments shall terminate and all amount
accumulated plus applicable interest, shall become due upon the occurrence of one of
the following events:
1. The death of the owner, provided that the spouse is otherwise not eligible for the
benefits.
2. The sale, transfer, or subdivision of the property or any part thereof.
3. If the property should for any reason lose its homestead status.
4. The City Council determines that a hardship no longer exists.
June, 1997 Page 9