Agenda - Council - 10/13/2015 - Laserfiche WebLink

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Proposed Assessments The 12 benefiting residential properties are proposed to be assessed using the preliminarily approved assessment rate of $6,500 per property accessing improved streets, resulting in a total assessment of $78,000. The proposed interest rate for special assessments is 4.16%, and assessments are proposed to carry a 10 year term. The attached hearing notice includes a schedule of payment showing annual payments including principal and interest. Also attached are assessment rolls and maps showing the locations of the 12 properties proposed to be assessed. As the City continues to implement the long-term street maintenance program, including annual street reconstruction projects, Staff will continue to define reasonable assessment amounts for street reconstruction projects. Based on the findings of the special benefit consultation report, which is not attached per the request of the appraisal firm that completed the report, it is anticipated that properties benefiting from the improvements and proposed to be assessed will be enhanced in value by approximately $23,000 to $26,000 per property. While a significant difference exists between the proposed special assessment amount and the anticipated property value enhancement identified in the special benefit consultation report, it should be noted that a significant portion of the benefit noted in the special benefit consultation report is due to benefit received from the availability of public utilities. Though the availability of utilities does add significant value to a property, given the City Charter's restriction on requiring property owners to connect to utilities such benefit would only be realized at the time a property owner chooses to connect to the utilities. At that time, trunk and lateral fees will be collected by the City thereby recovering much of the enhanced value not being collected with special assessments as part of this project. For reference, sewer and water trunk and lateral connection fees for a typical property in this area currently amounts to approximately $12,500. Based on the findings of the special benefit consultation report for this project, Staff will likely recommend increasing residential assessment rates on future street reconstruction projects slightly. However, this will be explored in greater detail within the Feasibility Report for each future street reconstruction project since assessment rates are project specific based on proposed improvements. No assessment deferrals have been requested, or are being proposed with this project. No assessments are proposed to any of the Feldspar Street properties for the permanent cul-de-sac improvements that were completed as part of this project under alternative bid #1. Public Comment At the time this report was written, no additional comments regarding special assessments were received following the February public hearing. Anoka County requires that assessments be certified to the County Auditor by the end of November for collection on next year's taxes. This deadline will be met by conducting the Assessment Hearing this evening. Alternatives: Alternative Action #1 — Motion to adopt Resolution #15-10-253 adopting the assessment roll certifying Garnet Street and 168th Avenue Reconstruction assessments; Improvement Project 13-10. Alternative Action #2 — Motion to deny adoption of Resolution #15-10-253 at this time. Funding Source: This improvement project is included in the City's 5 -year Capital Improvement Plan for construction in 2015 and is proposed to be funded using a combination of street reconstruction and overlay bond funds, special assessments to benefiting properties, and sewer, water and stormwater funds. Estimated funding splits based on bid prices are shown below. Please note that indirect costs for administration, engineering, legal, and finance, which are estimated at 25% of final construction costs, are excluded from these costs. • Special Assessments = $ 78,000.00 . Street Reconstruction Bonds = $ 405,586.41