Agenda - Council - 05/13/2014 - Laserfiche WebLink

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assessment rate between 20% and 50%, with most cities landing in the middle at 25% to 40%. Below is a table showing a range of estimated special assessments between 20% and 50% assuming the costs are applied uniformly across the 13 residential properties directly abutting the streets proposed for reconstruction. As is noted below, these assessment rates were calculated using only project costs related to streets and drainage improvements. All sanitary sewer and watermain utility improvements would be fully funded through from the utility enterprise funds. Estimated Special Assessment per Residential Property* 20% 30% 40% 50% $18,204 $27,306 $36,409 $45,511 *Assessments only include street and drainage costs (no utilities). Based on the assessments above, staff is of the opinion that it may be very difficult to justify the benefit to each project as a result of this project based on any of the assessment rates above, even at the minimum of 20%. The primary reason that the estimated assessment costs are so high is that the abutting lots are large lots so there are fewer lots to share in the costs than there would be in developments with smaller lots and greater densities. It should be noted that some cities do not assess costs for certain project elements such as sidewalks, so there may be some latitude for reducing project costs that are applicable to assessments. It should be noted that on May 20 the Public Works Committee will be discussing the framework for developing a Special Assessments Policy for use in applying special assessments to help pay for public improvement projects in the City of Ramsey. Such a policy would specify how special assessments should be applied based on the project type, property use, size and location, etc. Other considerations such as assessment deferrals or non -assessable project costs can also be incorporated into the policy. If a decision is made to develop a Special Assessments Policy, it would likely take some time to complete the policy but this project may be impacted by discussions on the development of such a policy, and vice versa. Based on discussion at tonights Council meeting, as well as during the May 20th Public Works Committee meeting, staff can further research potential assessment reductions for future discussion purposes. Notification: No notifications are required for this case. Observations/Alternatives: It is likely too late to reconstruct these streets in 2014 so this project will be added to the CIP as a 2015 project. Funding Source: The project funding program for this project could include a mix of several funding sources including bond proceeds, special assessments, and/or general levy funds. Neither street is a Municipal State Aid Street so MSA funds are not an option for this project. A recommended funding program will be identified within the completed Feasibility Report, and any input received from the City Council will be considered in shaping the funding program. Recommendation: Staff recommends continuing to work towards completing the Feasibility Report to make sure the City is ready to move forward with this much needed project in the near future. Completing the Feasibility Report will also allow staff to generate accurate estimated costs to help budget for this much needed project. In order to complete the Feasibility Report in a timely manner, staff is seeking input from Council on a proposed funding program for the project. Action: The City Council is asked to provide input on the proposed funding program for the reconstruction of Garnet Street and 168th Avenue, more specifically whether special assessments should be utilized and, if so, what percentage of applicable project costs should be assessed. Motion to defer to Public Works Committee to review a possible assessment policy and to analyze the impacts of various levels of assessment to this project. No file(s) attached. Attachments Form Review Inbox Reviewed By Date Kurt Ulnch Kurt Ulnch 05/08/201412 41 PM Form Started By Bruce Westby Started On 04/29/2014 08 14 AM Final Approval Date 05/08/2014