Agenda - Council Work Session - 10/14/2014

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operations on streets, sidewalks, water main, sanitary sewers, storm drainage and similar facilities can often and should be financed with special assessments. 3. A significant new use of special assessments is in the redevelopment of existing neighborhoods. When residential areas are confronted with progressive deterioration, or even when presently sound neighborhoods can be made more desirable through the development of parks, playgrounds, tree planting and new street patterns, the city can utilize special assessments to good advantage. THE BENEFIT PRINCIPLE Special assessments may be levied only upon property receiving a special benefit from the improvement. In Minnesota, the Constitution and courts apply this general rule by placing the following limitations upon the power to levy special assessments: (1) the rate must be uniform and equal upon all property receiving special benefit; (2) the assessment must be confined to property specially benefited; and (3) the amount of the assessment must not exceed the special benefit. SUMMARY OF STEPS IN SPECIAL ASSESSMENT PROCEEDINGS 1. Initiation of proceedings. This may be done either by the council or by petition of affected property owners. If a petition is used, it must be signed by the owners of at least 35% of existing or potential units bordering on the proposed improvements. Even if the council acts originally on its own initiative, an extraordinary majority is not needed to initiate the proceedings. In initiating proceedings, or in accepting a petition requesting such proceedings, the council should simultaneously order a feasibility report on the proposed improvement. 2. Preparation of a report. The law requires that a report on the feasibility of the proposal be prepared by the City Engineer or by some other competent person selected by the council. It must cover such factors as the need for the project, an estimate of cost, and any other information thought pertinent and necessary for complete council consideration. 3. Public Hearing. This step may be omitted when a petition requesting the improvement has been signed by 100% of the affected land owners. Notice of the hearing must be published twice in the official newspaper with each publication appearing at least a week apart. At least three days must elapse between the last publication date and the date set for the hearing. Furthermore, a notice must be mailed to each property owner in the area to be assessed stating the time and place of the hearing, the general nature of the improvement, the estimated cost and the area proposed to be assessed. At the hearing, all interested persons -4-