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RELEVANT LINKS: <br />See Section II-A-2: By <br />council. <br />Ruzic v. City of Eden Prairie, <br />479 N.W.2d 417 (Minn. Ct. <br />App. 1991). <br />Minn. Stat. § 429.081. <br />Minn. Stat. § 462.3531. <br />See Form 2. <br />Using this "coordinated procedure" means the city knows both important <br />numbers up front -- how much money will be available through special <br />assessments and the cost of the local improvement. Because the time for <br />appeals is over before the contract is issued, the city will not need to cover <br />potential budget shortfalls that may occur if a property owner successfully <br />challenges a special assessment or the lowest bid comes in higher than <br />expected. This Guide and the forms attached track this coordinated <br />procedural format. <br />For larger projects in particular, city councils should seriously consider <br />having provisions in the specifications that give the city more time to accept <br />or reject bids. Either the city can make the improvement contract conditional <br />on the absence of objections filed within 30 days after the assessment <br />hearing, or the city may specify (in the bid documents, or specifications) that <br />the improvement work will not begin until 90 days after the city receives <br />bids. Under both strategies, the council would not enter into a binding <br />contract, nor would any improvement work start until after the improvement <br />and assessment hearings and the time for appeals elapses. <br />2. Specially assessing less of the cost <br />The city can also avoid appeals by paying a substantial portion of the cost of <br />all improvements out of general funds. The larger the portion of cost the city <br />assumes, the less the chances that any individual assessment would exceed <br />the benefit from the improvement as measured by the increase in market <br />value. Indeed, the council can proceed with the proposed assessment based <br />on estimates -- and plan to use monies from a reserve fund from general <br />taxes and other uncommitted sources of revenue making up any difference <br />between the assessments and the project cost. <br />3. Waivers <br />The council might obtain, under certain circumstances, waivers of rights to <br />appeal before entering into the contract and ordering the improvement. Any <br />waiver of rights is effective only for the amount of assessment agreed on by <br />the city and property owners or developers. An effective waiver of rights of <br />appeal is essentially a contract and may contain additional conditions <br />providing for the increases in assessments that will not be subject to appeal; <br />consult the city attorney for specific advice on effective waivers. <br />D. Pros and cons of special assessments <br />Following is a summary of the advantages and disadvantages of special <br />assessment financing. The council can avoid many of the disadvantages with <br />adequate plans and a long-range capital improvement program. <br />Advantages of special assessment financing include: <br />League of Minnesota Cities Information Memo: 9/22/2011 <br />Special Assessment Guide Page 5 <br />