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CITY OF BLAINE - PUBLIC IMPROVEMENT - SPECIAL ASSESSMENT POLICY <br />I. GENERAL <br />Minnesota State Law, Chapter 429 provides a municipality the authority "to levy and collect <br />assessments for local improvements upon property benefited thereby" for public improvements such <br />as sanitary sewer; storm drainage; water source, storage, and distribution facilities; street <br />improvements including grading, curb and gutter, and surfacing; sidewalks; trails; sound barriers; <br />street lighting; recreational facilities; etc. To ensure full protection for property owners, state law and <br />courts applying the law insist on following a strict set of procedural requirements when assessing a <br />local improvement project. This policy statement summarizes Chapter 429 special assessment <br />procedures and also details project cost apportionment procedures. <br />1. The Theory of Special Assessments <br />Special assessments are a compulsory charge for a particular improvement or service which <br />benefits the owners of certain properties and which are also undertaken in the interest of the <br />public. Special assessments have three distinct characteristics: <br />a) They are a compulsory levy used to finance or partially finance a particular public <br />improvement program. <br />b) The levy is charged only against those particular parcels of property deemed to receive a <br />special benefit from the program. <br />c) The amount of the charge bears a direct relationship to the value of the benefits the <br />property receives. <br />Special assessments are imposed only on real estate. They are never levied against personal <br />or movable property. In theory, special assessments are frequently regarded as more <br />equitable than property taxes because those who pay them obtain direct benefits from the <br />improvements undertaken and because they are not a function of the relative value of homes <br />or buildings. <br />2. Special Assessment Uses <br />Special assessments have three important applications: <br />a) The first and most popular use is for financing new public improvements, particularly <br />when new tracts of land are being converted to urban use. In this application, they are <br />frequently used to pay for sanitary sewer, storm drainage, water source, storage, and <br />distribution facilities, street improvements including grading, curb and gutter, and <br />surfacing, sidewalks, trails, street lighting, recreational facilities, etc. <br />b) Special assessments may also be used to finance the cost of major public reconstruction <br />programs. Large-scale repairs and maintenance operations on streets, sidewalks, trails, <br />water mains, sanitary sewers, storm drainage, and similar facilities can and often should <br />be financed with special assessments. <br />c) Special assessments can also be utilized in the redevelopment of existing neighborhoods <br />when areas are confronted with progressive deterioration, or even when presently sound, <br />neighborhoods can be made more desirable through the development of parks, <br />H.\7FSNTGISENG PVMT MGIISPECIAL ASSESSMENT POLICYISPECIAL ASSESSMENT POLICY.DOC <br />