HomeMy WebLinkAbout2019-12-09 City Council Workshop PacketPLEASE NOTE START TIME
AGENDA
MAPLEWOOD CITY COUNCIL
MANAGER WORKSHOP
5:30 P.M. Monday, December 9, 2019
City Hall, Council Chambers
A. CALL TO ORDER
B. ROLL CALL
C. APPROVAL OF AGENDA
D. UNFINISHED BUSINESS
None
E. NEW BUSINESS
1. ClearGov Financial Transparency Solution Presentation
2. Special Assessment Policy Revision Discussion
F. ADJOURNMENT
RULES OF CIVILITY FOR THE CITY COUNCIL, BOARDS, COMMISSIONS AND OUR COMMUNITY
Following are rules of civility the City of Maplewood expects of everyone appearing at Council Meetings -
elected officials, staff and citizens. It is hoped that by following these simple rules, everyone's opinions can be
heard and understood in a reasonable manner. We appreciate the fact that when appearing at Council
meetings, it is understood that everyone will follow these principles:
Speak only for yourself, not for other council members or citizens - unless specifically tasked by your
colleagues to speak for the group or for citizens in the form of a petition.
Show respect during comments and/or discussions, listen actively and do not interrupt or talk amongst each
other.
Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or others
in public.
Be respectful of each other's time keeping remarks brief, to the point and non -repetitive.
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CITY COUNCIL WORKSHOP STAFF REPORT
Meeting Date December 9, 2019
REPORT TO: Melinda Coleman
REPORT FROM: Ellen Paulseth, Finance Director
PRESENTER: Ellen Paulseth, Finance Director
AGENDA ITEM: ClearGov Financial Transparency Solution Presentation
Action Requested: ❑ Motion ✓ Discussion ❑ Public Hearing
Form of Action: ❑ Resolution ❑ Ordinance ❑ Contract/Agreement ❑ Proclamation
Policy Issue:
The finance department established an initiative for 2019 to implement an affordable solution to make
the City's budget and financial information more transparent in a platform that will better engage the
community. The City's website now contains a link to a cloud -based, public -facing transparency
profile that contains easily understandable interactive infographics, benchmarking and metrics.
Recommended Action:
No action is required. This item is informational.
Fiscal Impact:
Is There a Fiscal Impact? ❑ No ✓ Yes, the true or estimated cost is $4,500
Financing source(s): ✓ Adopted Budget ❑ Budget Modification ❑ New Revenue Source
❑ Use of Reserves ❑ Other: N/A
Strategic Plan Relevance:
•� Financial Sustainability Integrated Communication •/ Targeted Redevelopment
Operational Effectiveness ✓ Community Inclusiveness ✓ Infrastructure & Asset Mgmt.
Financial activities intersect with all areas of the strategic plan.
Background
The finance department researched several solutions, preferring the most cost-effective approach
over other solutions ranging from $10K - $30K. The cost for the ClearGov solution is $4,500 for the
first year and less than $2K in subsequent years. The ClearGov solution provides for the comparison
of key financial data against peer communities. The City can end the contract at any time.
A44arhmanfe
1. None
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CITY COUNCIL WORKSHOP STAFF REPORT
Meeting Date December 9, 2019
REPORT TO: Melinda Coleman, City Manager
REPORT FROM: Steven Love, Public Works Director / City Engineer
Ronald Batty, City Attorney
PRESENTER: Steven Love
Ronald Batty
AGENDA ITEM: Special Assessment Policy Revision Discussion
Action Requested: ❑ Motion ✓ Discussion ❑ Public Hearing
Form of Action: ❑ Resolution ❑ Ordinance ❑ Contract/Agreement ❑ Proclamation
Policy Issue:
Staff has reviewed the City's Special Assessment Policy and is recommending revision to the
existing policy. The Public Works Director and City Attorney will give a presentation on the
proposed revisions and are looking for feedback from City Council on the proposed changes.
Recommended Action:
No formal action is required at this time.
Fiscal Impact:
Is There a Fiscal Impact? ✓ No ❑ Yes, the true or estimated cost is $0.00
Financing source(s): ❑ Adopted Budget ❑ Budget Modification ❑ New Revenue Source
❑ Use of Reserves ❑ Other: N/A
Strategic Plan Relevance:
✓ Financial Sustainability ❑ Integrated Communication ❑ Targeted Redevelopment
❑ Operational Effectiveness ❑ Community Inclusiveness ✓ Infrastructure & Asset Mgmt.
Special assessments are utilized as a funding source for Capital Improvement Projects (CIP) such
as street improvement projects.
Background
Minnesota Statutes, Chapter 429, grants cities the authority to use special assessments to levy and
collect assessments to help fund a broad range of public improvement projects. Special
assessments are one of several funding sources that the City utilizes to fund public improvement
projects.
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Maplewood's Special Assessment policy was adopted on February 8, 2010. City staff and the City
Attorney have reviewed the existing policy and are recommending revisions to the policy. The
proposed revisions are being recommended primarily to clean up definitions and ensure the policy
follows the Minnesota Statutes.
The following is a summary of the key revisions to the policy:
• Updated introduction language
• Updated definitions
• Removal of language that covers engineering standards
• Updated language for methods of assessments
• Removal of assessment rates
• Updated language for payment of assessments
• Updated language for deferred assessments
o Limit deferrals to those allowed per State Statutes
o Updated language on how a financial hardship is determined
A redlined copy of the existing policy showing the proposed changes and a clean copy with the
proposed changes has been attached to this report.
Attachments
1. Special Assessment Policy — With Redlined Proposed Changes
2. Special Assessment Policy — Clean With Proposed Changes
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E2, Attachment 1
Maplewood �'!*q
Special Assessment Policy
City of Maplewood, Minnesota
Adopted by the Maplewood City Council on February 8th
2010xxxxxxxxxx
Policy Revisions
xxxxxxxx
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TABLE OF CONTENTS
6.0 PAYMENT OF ASSESSMENTS..........................................................................................487
7.0 DEFERRED no nD' ED ASSESSMENTS.....................................................................448
722 WAde„eiGped PFGpe4y Deferreic 1
8.0 ASSESSMENT CONSIDERATIONS...................................................................................4�8
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, 7 Z-1' L L
Together We Can
Maplewood �7J
1.0 POLICY GOALS
The goals of Maplewood's special assessment policies and procedures are to:
4 -)_Provide a stable and continuing source of funding within the financial capacity of the City
Formatted: Bullets and Numbering
to accommodate infrastructure needs for new development, redevelopment, and
maintenance within the community in a cost-effective manner.
�}B_To be responsive to community needs and desires for health, safety, welfare,
Formatted: Bullets and Numbering
accessibility, and mobility provided by new infrastructure and the maintenance of existing
assets.
�34C_Provide for and ensure consistent, uniform, fair, and equitable treatment, insofar as is
Formatted: Bullets and Numbering
practical, lawful, and possible, of all property owners in regard to the assessment of cost
for benefits to properties for the qualifying improvements listed in Minnesota Statutes,
Chapter 429.
4)D_Provide the City Council and staff with guidelines and methods to efficiently distribute
Formatted: Bullets and Numbering
infrastructure costs to beaefitfagbenefited properties in an equitable and consistent
manner
..tG to the properties deFiViRg frees. the Rt
54_Provide a comprehensive, well -constructed and well-maintained infrastructure system
Formatted: Bullets and Numbering
that services individual properties and takes advantage of economies of regional scale and
allows for flexibility in the timing of infrastructure development.
g-)F_To provide an effective tool for the management of municipal resources to supporta
Formatted: Bullets and Numbering
highly functional and well-maintained system of infrastructure that promotes economic
development and growth, fosters a sense of pride throughout the community, and
facilitates the development and adoption of short and long-range capital improvement
plans by identifying the magRitw extent and sources of funding available.
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2.0 INTRODUCTION
A special assessment is a kw -y -charge imposed on a property
�s.for a particular improvement that benefits those selected properties. Minnesota
S4a4e-Statutes, Chapter 429, grants cities the authority to use special assessments as a
menhanis;rn to to levy and collect assessments to help fund a broad range of public
improvements. pecial assessments are one of several funding
sources that the City utilizes to
A dippet h. Refit f.....-. ^fund public improvement pfejeet rp oiects, thereby reducing the reliance on
the general tax levy.
Chapter 429 limits a special assessment to the benefit the
property receives, which is equal to the increase in direr't b c„^ ^fitmarket value of the property as
a result of the public improvement. This can be determined by appraisals completed prior to
and after the subject public improvement project.
Special assessments are a valuable tool tefor cities O^ that t th^to help fund public improvement
projects by assigning a portion of the improvement costs aTe assigned to beee#+t+-@benefited
properties. This mdures the h„rdeR OR the ^ +„ . . ,, o^d fh^^^The properties
benefiting from the public improvements also have the opportunity for involvement with the City
Council as outlined in the Chapter 429 PMGessprocess, notably through o6111i public
hearings.
While the special assessments goals, policies, and procedures have been identified herein, the
City Council has the authority to deviate from this policy when s u^h FatieRale i^ equity ^per ses cr
the whe+^compliance with the law 9F stat6ites Fe96iiF--LtgLires such deviation.
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Formatted FontNot Bold
3.0 POLICY DEFINITIONS
A_A-,°, �'�Abuttinq Property: A property which has a boundary line that directly
touches a public improvement project.
B. Non -Abutting Property: A property which is adjacent, near, or close to a public
Formatted: Numbered + Level: 1 + Numbering Style:
+aRPFeV@I*I@Rtsimprovement protect but is not abutting.
A, B, C, ... + Start at: 1 + Alignment: Left + Aligned at:
0.13" + Indent at: 0.38"
C_t-Access: Properties shall be considered to have access to public street improvements
Formatted: Indent: Left: 0.38"
when they may enter onto the improvement from their own private driveway, private road,
common driveway, shared easement, or
Formatted: Numbered + Level: 1 + Numbering Style:
A, B, C, ... + Start at: 1 + Alignment: Left + Aligned at:
150 feet of the utility -a public street.
0.13" + Indent at: 0.38"
Formatted: Indent: Left: 0.38"
D_�Adlusted n ^. n ^ ^ ^s ^ �^ ^s �^ r +.• �M^� M^^^^ ^ r e^ r �.• ^
adjustmen Factor: A factor that modifies the assessment rate, assessable area, or
Formatted: Numbered + Level: 1 + Numbering Style:
assessable front footage to more accurately represent the true benefit that the property
A, B, C, ... + Start at: 1 + Alignment: Left + Aligned at:
receives from an nt OR GGFnpaFiGGR tG etheF rr^r^Fti^^ OR tM^ ^
0.13" + Indent at: 0.38"
afea-the public improvements. The adjustment factor will be based on the improvement
design parameters that are applicable to that parcel, as approved by the City Council.
Design parameters that may be used to determine the adjustment factor include, but are
not limited to: developable area, lot area comparison to surrounding lots in order to
calculate equivalent front footage, trip generation; storm water runoff coefficients; water or
sanitary sewer use; needed fire flow; and zoning or future land use.
Formatted: Indent: Left: 0.38"
E_^. AdoustedAdoustable Frontage: Theme front footage of a benefited property that
has been modified by an adjustment factor to more accurately represent the true benefit Formatted: Numbered + Level: 1 +Numbering style:
A, B, C, ... +Start at: 1 +Alignment: Left +Aligned at:
that
0.13" + Indent at: 0.38"
the property receives
from the public improvements. This is useful for flag lots or other improved properties that
have little direct frontage adjacent to the improvement, but from which access is available
directly to and from the improvement area. ^^^i^^ pa FaFneteFs that may be "sed to
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Formatted: Indent: Left: 0.38"
Formatted: DocID, Left, Right: 0"
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F_F ^ ^,-^d Ge&t^ssessable Costs: Those costs of public improvements that have occ�-^^^^ Formatted: Numbered + Level: 1 + Numbering Style:
detpip Rpid to benefit spesif+sabutting and/or non -abutting properties. The assessed Gest A, B, c, ... +start at: 1 +Alignment: Left +Aligned at:
will be equal te the pFejeGt Gest minus the Gity Gest. PFejeGt Gests eligible fGF assessmeRt 0.13" + Indent at: 0.38"
include all Ae Riated with the ""', but are not limited to,
land acquisition, demolition, construction, administration, and engineering, legal, financing
and other costs as determined by the City Council. The financing charges include all costs
of financing the project. These costs include, but are not limited to, financial consultant's
fees, bond attorney's fees, and capitalized interest.
Workshoop Packet Page Number 9 of 26
�� Formatted: Indent: Left: 0.38"
G.
Assessable Area: The assessable area is the total area of All of the heRefitiRg
prGl;94ies2 benefited property, when using an area based assessment.
Formatted: Numbered + Level: 1 + Numbering Style:
A, B, C, ... + Start at: 1 + Alignment: Left + Aligned at:
H_Q—Assessable
Footage: The assessable footage is the total front footage of a of the
~ 0.13" + Indent at: 0.38"
a benefited property, calculated by using the front footage method.
Formatted: Indent: Left: 0.38"
Formatted: Numbered + Level: 1 + Numbering Style:
A, B, C, ... + Start at: 1 + Alignment: Left + Aligned at:
0.13" + Indent at: 0.38"
Formatted: Indent: Left: 0.38"
Formatted: Numbered + Level: 1 + Numbering Style:
1_'
°��,�^,�^'^+ Assessment Rate: Is determined by taking the lesser of the Maximum
A, B, C, ... + Start at: 1 + Alignment: Left + Aligned at:
0.13" Indent 0.38"
Assessment Rate and the assessment rate established by the special benefit appraisal.
+ at:
j
Formatted: Indent: Left: 0.38"
J.
Assessment Unit: Front footage, area or u4 Aa single family residential standard lot.
Formatted: Numbered + Level: 1 + Numbering Style:
' A, B, C, ... + Start at: 1 +Alignment: Left +Aligned at:
K.
J --Benefit: The increase in pfepel#ymarket value as a result of a public improvement such
0.13" + Indent at: 0.38"
as, but not limited to, a street, sidewalk, trail, curb and gutter, water main, sanitary sewer,
storm sewer, park, or street landscaping.
Formatted: Indent: Left: 0.38"
atted: Numbered + Level: 1 +Numbering Style:
L_#�Deferment:
A process of postponing the collection of the G96t of ^""'O^ OFA ^ 84 ^^'�
FAB,C, ... + Start at: 1 + Alignment: Left + Aligned at:
and funding them as a syste^,--Gst ecial assessment with the intention of collecting it at
+ Indent at: 0.38"
a later date.
Formatted: Indent: Left: 0.38"
Formatted: Numbered + Level: 1 + Numbering Style:
A, B, C, ... + Start at: 1 + Alignment: Left + Aligned at:
0.13" + Indent at: 0.38"
M.
Front Footage: The distance of a property measured along the right-of-way line that
Formatted: Indent: Left: 0.38"
directly abuts an Improvement.
Formatted: Numbered + Level: 1 + Numbering Style:
A, B, C, ... + Start at: 1 + Alignment: Left + Aligned at:
N.
N—Lot Definitions:
0.13" + Indent at: 0.38"
1. Standard Lot: A lot that abuts and has access to a street on only one side of the lot.
Formatted -indent: Left: 0.38"
Formatted: Numbered + Level: 1 + Numbering Style:
4-2. Corner Lot: A lot located at a street intersection 4.a*i+;1a2buttinq a street on both
1, 2, 3, ... + Start at: 1 + Alignment: Left + Aligned at:
the front and side- of the lotfeetage.
0.38" + Indent at: 0.63"
Formatted: DocID, Left, Right: 0"
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/
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2—Double Frontage Lot: A let ^+" aggess +^ twe GepaFate non iRteFGeGtiRg GF
+r^^+^ but ^^+ ^ corner lot -
3. lFFeEw!a rl.. Ch.,.. dI ..+Th9h96P_IN+sa h�1�+m^H^'ed GtFeetG,Gcri -crde �T+heF flet-.
Formatted: Numbered + Level: 1 +Numbering Style:
1, 2, 3, ... + Start at: 1 + Alignment: Left + Aligned at:
4Re-sabutting two separate streets. 0.38" + Indentat: 0.63"
Re^+^ ^,. I., r
4—Non-Abutting Lot: A lot Formatted: Underline
4.which benefits from a public Formatted: Numbered + Level: 1 + Numbering Style:
improvement but does not directly abut the iFAPFGVeFAeRt shall "^ GR a Pe 1, 2, 3, ... + Start at: 1 + Alignment: Left + Aligned at:
.-,Rot hAROG of the imppeverRAR4 Pan he app"664improvements. 0.38" + Indent at: 0.63"
6. SPGGi@l !'`@66? I -Qt r'`grAPRer.. i^I D L,+ A41109h A G +he i .,+ h. ,+ PA have little
G_
O. Maximum Assessment Rate: The maximum assessment rate is determined and annuall
adopted by the City Council. The Council adopts a unit rate which is associated with a
single family residential lot as defined by the City's zoning code. If a residential property
has frontage that allows for a future lot split (such as 150 feet allowing for two 75 foot wide
lots), the second lot would be assessed. Commercial and multi -family properties are
assessed on a front footage basis, while single family residential is assessed on a unit
basis. The commercial rates are 1.5 times the amount of a single family residential rate
due to the increased use of the improvement. The commercial and multi -family rate is
calculated by multiplying the single family residential unit rate by 1.5 and then dividing by
75. which is the minimum frontaae of a sinale familv residential lot defined by the Citv's
zoning code.
P. Public Improvement: Improvements as allowed by State statiite.Minnesota Statutes,
section 429.021, that provide a special benefit to properties, including but not limited to
streets, sidewalks, trails, curb, gutter, sanitary sewer systems, storm sewer systems, water
treatment and distribution systems.
O. o.special Assessment: A legal process whereby the benefited property is charged for all
or a portion of the cost of public improvements.
R_P—Street: All public ways designed as means of vehicular and pedestrian access to the
adjoining properties.
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Special Assessment Policy
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Formatted: Numbered + Level: 1 + Numbering Style:
A, B, C, ... + Start at: 1 + Alignment: Left + Aligned at:
0.13" + Indent at: 0.38"
Formatted: Indent: Left: 0.38"
Formatted: Numbered + Level: 1 + Numbering Style:
A, B, C, ... + Start at: 1 + Alignment: Left + Aligned at:
~\ 0.13" + Indent at: 0.38"
Formatted: Indent: Left: 0.38"
Formatted: Numbered + Level: 1 + Numbering Style:
A, B, C, ... + Start at: 1 + Alignment: Left + Aligned at:
0.13" + 1entat: 0.38"
Formatted: Indent: Left: 0.38"
Formatted: DocID, Left, Right: 0"
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S. Undeveloped Property: A property that lacks physical improvements and has the potential
to be developed/improved for commercial, industrial, residential or other uses.
T. Unit: A unit represents the assessment for one single family residential property or one
buildable single family residential property, consistent with the City's zoning code.
4.0 METHODS OF ASSESSMENT
The following are several methods utilized to allocate special assessments to properties
benefited by public improvements:
Residential Unit Method: This method is used for single 4we44gfamily residential properties.
,+
A. Standard Lot: A standard lot will be assessed one unit.
E2, Attachment 1
Formatted: Don't adjust space between Latin and
Asian text, Don't adjust space between Asian text and
numbers
4-.B. Corner Lot: A let Ierated at ^ street +erre^+ h. ^ he+h fregnt and side -let fee+^, a Formatted: Indent: Left: 0.13", Numbered + Level: 1 +
corner will be assessed one unit. If a driveway abuts both streets Numbering style: A, B, c, ... + start at: 1 + Alignment:
and only one street is being improved then the lot will be assessed 50% of the per unit Left + Aligned at: 0" + Indent at: 0.25"
basis for the street that is being improved. When the other street is improved in the future
the property will then be assessed 50% of one unit for the second improvement project.
C. Double Frontage Lot:
2-1. A double frontage lot vVith aggess +^ twe GepaFate RGR iRteFseGtiRg ^ ^+^rr.^^+;^^
Formatted: Numbered + Level: 1 + Numbering Style:
that has a driveway which accesses only one of the streets h, it Retand cannot be split to 1, 2, 3, ... + start at: 1 + Alignment: Left + Aligned at:
form a eeFRe second developable lot twill be assessed fey aR one unit when the 0.25" + Indent at: 0.5"
street i^,r,r^„^^,^^++h^+ it h^^ dike^ + ^^^^^^ +^ that the driveway accesses is improved.
3. llcicequlalcly Shaped � „ose IGtG-aG6lPg's#Feefs, G611 de same, GIC GtheF letis
2. A double frontage lot that has a driveway that accesses both streets will be assessed
using the same method as a Corner Lot.
3. A double frontage lot that can be split into a two or more developable lots will be
assessed one unit for each developable lot when the street that provides access is
improved.
D. Non -Abutting Lot: A Non -Abutting Lot will be assessed one unit. Adjusted frontage, area,
or the use of an adjustment factor shall be considered.
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Commercial/ Multi -Family Front Footage Method: This method is used for multi -family and Formatted: Font: Bold
commercial properties. The commercial "^t^^ ^"^ ^^^l`^61 and multi -family rates are 1.5 the
amount of a single family residential rate due to the increased use of the improvement. The
commercial and multi -family rate is calculated by +tmultiplying the residential unit rate;
1.5 then dividing +-by 754, which is the minimum " sideRti^1 let width) and `RUltip1.,i^^ by 1.5
frontage of a single family residential
%te*lot as defined by the City's zoning code.
&A. Corner Lot: A let 1epated at a ^tFeet i^teF^eF.ti^^ hF ^ 199th fFGRt F,^,t ^„te 'At feet-age
ee -aa Formatted: Indent: Left: 0.13", Numbered + Level: 1 +
corner lot shall be assessed for Numbering Style: A, B, Q ... + Start at: 1 + Alignment:
ach side of the property abutting an Left + Aligned at: 0" + Indent at: 0.25"
improvement.
-7--B. Double Frontage Lot: A let`"'°th ^ to twe ^ F.
Fate ^ ^teFeGt;^^ ^ ^+e"^^ +°^^ Formatted: Indent: Left: 0.13", Numbered + Level: 1 +
GtP86tG hl -It double frontage lot shall be assessed using the same method as a comer Numbering Style: A, B, Q ... + Start at: 1 + Alignment:
lot FAay be assessed fGF aRY ^tFeet ° ^t that ;t hAG ,t;FeF.t F ^ to Left + Aligned at: 0" + Indent at: 0.25"
6lL,FhY 94aP6
These 1e+; Abli++i^^ ^ ed ^+Feet^ ��I_de_^^^^ Formatted: Underline
Non -Abutting Lot: , ether 1e+; Where
g Rest^RGI ulaTA Non -Abutting Loft ° 1e+,.,+h 1e^^ +h^ f.„e fee+ef JiffeFe ^e 1e +h Formatted No underline
he W'R AR the fFGRt AR(d hAGk 1..t 1ORRF• GhF,ll he ., e.J I...,. R(d ^^ fFGRt feet `
C. Formatted: Indent: Left: 0.13", Numbered + Level: 1 +
GF Re F,1 eFt y fFORt;^^ the ^t ^h^11 will be assessed in a fair and equitable Numbering Style: A, B, Q ... + Start at: 1 + Alignment:
manner consistent with surrounding properties fronting the improvement. Adjusted Left + Aligned at: 0" + Indent at: 0.25”
frontage, area, or the use of an adjustment factor shall be considered. Formatted: underline
Formatted: DocID, Left, Right: 0"
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Area Method: The Area Method distributes the assessment according to the gross area of the
benefited lot, parcel, or area. The assessable area shall be expressed in terms of the number
of acres or the number of square feet subject to assessment. The assessment for an individual
Property is equal to the assessable area (acres or square feet) x assessment rate per acre or
per sauare feet. The use of an adiustment factor may be considered when appropriate.
5.0 ASSESSMENT RATESAC ^,,o O 2010
Publin Street Im Prevement Arsessme,
Moll @Rd E)Vo,.,��e rIAJ.
Full
Ste ""'mrd rum" ' R age :
Qth e r 1 m r. Feye- a r, t A s s e s c... er.te•
Cashes nester - warmer:
�n,, zee se vs%map is eXistiRg rR�
Sewer sends 'e vd map tGeXiGtiRg F a -
Note• These assessment rates a shwArn ser ..��I.t�....e purposes niy orler to aThe City
Council shall review and set the Maximum Assessment Rate on annual basis For each public Formatted Fnnt Not Bold, No underline
improvement project a "benefits appraisal" shall be conducted to determine the actual special
assessment based on the benefit received by the subject property.
Formatted: DoclD, Left, Right: 0"
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E2, Attachment 1
6.0 PAYMENT OF ASSESSMENTS:
4 -)_Assessments for single family residential and multi -family properties can be paid over a Formatted: Indent: Left: 0.13",Numbered + Level: 1 +
15 year period through certification to property taxes as a special assessment. Interest Numbering Style: A, B, Q ... + Start at: 1 + Alignment:
rates vary, but are set no more than 2% above the City's rate on the bond sale. The Left + Aligned at: 0" + Tab after: 0.25" + Indent at:
increased rate covers administration and collection of the assessments over the life of the 0.25", Tab stops: Not at 0.25^ + 0.5"
repayment period.
�}B_Assessments for commercial properties can be paid over an 8 year period through Formatted: Indent: Left: 0.13",Numbered + Level: 1 +
certification to property taxes as a special assessment. Interest rate vary, but are set no Numbering Style: A, B, Q ... + Start at: 1 + Alignment:
more than 2% above the City's rate on the bond sale. The increased rate covers Left + Aligned at: 0" + Tab after: 0.25" + Indent at:
administration and collection of the assessments over the life of the repayment period. 0.25", Tab stops: Not at 0.25^ + 0.5"
C. For oroiects where the Citv does not utilize aeneral obligation bonds. the interest rate will
be set at 1.5% over the most recent (within a one year period) general obligation bond
sale (rounded to the nearest .25%). If the City has not sold a general obligation bond
within a one year period, the interest rate will be 1.5% over the current market rate for
similarly rated municipal general obligation bonds (rounded to the nearest .25%).
�342.__Property owners may wish to make a payment to the City within 30 days of the
of the assessment roll. Property owners may choose to
make a full or partial 250 ) payment. No interest will be applied -te. harged for
payments received within 30 days of the ^,^^^^m^^' u^aFiRg Payments adoption of the
assessment roll. For payments received a#e-Fmore than 30 days after the adoption of the
....... HeaFin^assessment roll but on or before ^^ * F ^'; ^'^ Ramsey G ^„^'••
{8etel9eF 4}November 15, interest will be applied te the payment GaIGulate4charged from
the date of the A611-3e66raeRtWeaFin The Gity will aGGept ne FAGFe than twe (" payments
Lip,�hol the Ge.pti figaf deg line (GGtebeF 4 ` date Wnpa gdoption of the assessment roll
to the date of payment. After November 15, unpaid balances will be certified to Ramsey
County for payment with property taxes aftep Q Ate.heip I e4beginning the year OR
the ssessment roll was seate42dopted.
Formatted: Indent: Left: 0.13", Numbered + Level: 1 +
Numbering Style: A, B, Q ... + Start at: 1 + Alignment:
Left + Aligned at: 0" + Tab after: 0.25" + Indent at:
0.25", Tab stops: Not at 0.25" + 0.5"
4)E_It should be noted that if only a partial payment is made before certification to Ramsey Formatted: Indent: Left: 0.13",Numbered + Level: 1 +
County4teff, the assessment balance sa+Rmay be paid over the same 15 year period for Numbering Style: A, B, C, ... + Start at: 1 + Alignment:
single family residential property or multi -family property and 8 years for commercial Left + Aligned at: 0" + Tab after: 0.25" + Indent at:
property. 0.25', Tab stops: Not at 0.25" + 0.5"
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7.0 DEFERRED ^o n LAYSD ASSESSMENTS:
Minnesota �#a�l#eStatutes, Chapter 429 allows for deferred and delayed assessments. This
section is only meant to cover the most frequent cases encountered by the City in past years.
Minnesota Statutes shall govern in all cases.
A. Senior Citizen, Disability National Guard 2^r1lHardship Deferral for Seniors, Disabled
Minnesota Statutes, section 435.193 authorizes the City Council to enact said deferrals.
There#ere the The City Council hereby provides for the
payme #deferral of m2 special assessment fGFregarding any homestead property owned by a
person f9FWh0 iR GRA Of th^
E2, Attachment 1
Formatted: Underline
Formatted: Underline
-)o- ^ ^^F^^^ Wh^ is 65 years of age or older.-
-A_A-p&wG4-wlie-is or retired by virtue of a permanent and total disability- for whom it would Formatted: Indent: Left: 0.13", Numbered + Level: 1 +
be a hardship to make the payments; or Numbering Style: A, B, Q ... + Start at: 1 + Alignment:
Left + Aligned at: 0" + Indent at: 0.25"
-)O-B.A member of the Minnesota National Guard or other military reserves ea4edwho is Formatted: Indent: Left: 0.13", Numbered + Level: 1 +
ordered into active sew+semilitary service for whom it would be a hardship to make the Numbering Style: A, B, Q ... + Start at: 1 + Alignment:
Payments. Left + Aligned at: 0" + Indent at: 0.25"
As a aeneral guideline. a financial hardship exists if the total pavment for the first vear of the
assessment is greater than 2% of the household's adjusted gross income. In order to determine
financial hardship, the City'spublic works director or Fina..re
S+resteFfinance director shall review the applicant's income state ,^^f ^^ a ^^^^F^' guideline,
belew 0
WARIth ^CGI u,,,.. AR SeR4^^ This financial hardship guideline is intended to make clear the
standard basis for financial hardship and remain non-discriminatory in financial hardship
reviews. However, the public works director or FORA^^^ ^OP^^f^•finance
director may approve deferrals where extenuating circumstances exist as presented by the
applicant.
It should be noted that a deferred assessment accrues interest. The deferment comes due with
interest upon death of the owner; (provided that the spouse is not otherwise eligible),
sale/transfer/subdivision of property, termination of eligibility for the deferral, loss of homestead
status of the property, or determination by the City Council that requiring immediate or partial
payment would impose no hardship. The deferred assessment, with accrued interest, shall be
oavable over such period as may be determined by the Citv Council but no lonaer than 30 vears
from the year in which the assessment was levied.
Q. llndevel^ne4Unimproved. Property Formatted Underline
The City Council may grant deferrals for unimproved properties. The City Council &4a4may
defer assessments for a period of 15 years, after which time if no improvement occurs the
assessment shall be terminated. If improvements are made within 15 years the assessment
shall come due with interest. The deferred assessment, with accrued interest, shall be payable
City of Maplewood, MN
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Formatted: Dodo, Left, Right: 0"
over such period as may be determined by the City Council but no longer than 30 years from
the year in which the assessment was levied.
8.0 ASSESSMENT CONSIDERATIONS:
Deyeleper^ ^re^e^;^^come private development projects thatwill bill be require the
construction of public infrastructures►pew semplet+ew. All such infrastructure shall be
GeFnpletedgonstructed as a o„Mr^ ImpFeyement o., jeGt and . ^ the Deyeleper to
public improvement °
tetakproject Gest shall he paid by the ..tine..°(^) unless stipulated ethepwi e The
developer must execute a
E2, Attachment 1
Formatted: Font: Not Bold
Formatted: Tab stops: Not at -0.82" + -0.5" + 0" +
0.31" + 0.5" + V. + 1.5" + 2" + 2.5" + 3" + 3.5" +
4" + 4.5" + 4.75" + 5" + 5.5" + 5.75"
�A—
Formatted: Indent: Left: 0.13", Numbered + Level: 1 +
Epetition and waiver agreement providing for the assessment of a RGighl@GFheed
Numbering Style: A, B, Q ... + Start at: 1 + Alignment:
stxeet100 percent of the costs of the public improvement pFgj@Gt Will RGt 1@8 Arressed fAr A
Left + Aligned at: 0" + Indent at: 0.25"
to the property within the development,
unless otherwise agreed to by the City.
34_AII properties benefiting from improvements are subject to the special assessment.
Formatted: Indent: Left: 0.13", Numbered + Level: 1 +
Numbering Style: A, B, Q ... + Start at: 1 + Alignment:
4)�_The assessment rates will change year to year depending on
Left + Aligned at: 0" + Indent at: 0.25"
seNnsi4City rate adjustments and benefit appraisal information. Special assessments
sa-n ay be reimposed for improvements listed in Minnesota Statutes, Chapter 429 and
Formatted: Indent: Left: 0.13", Numbered + Level: 1 +
are not limited to those listed In this policy.
Numbering Style: A, B, Q ... + Start at: 1 + Alignment:
Left + Aligned at: 0" + Indent at: 0.25"
&)_The special assessment methods described in the policy statement sannetshould not be
Formatted: Indent: Left: 0.13", Numbered + Level: 1 +
considered as all inclusive. Unique or unusual circumstances may, at times, justify special
Numbering Style: A, B, Q ... + Start at: 1 + Alignment:
consideration In ^ wnh Gitl ln+.0en^ the Gity reg Innil may, crewn time to tome e^H,hG^h by
Left + Aligned at: 0" + Indent at: 0.25"
th.,t FAaY Gt haV8 h.. Rt8FAPlat Gl OR this ^^c^.• and the use of adjustment
factors.
E. Prior to the adoption of the assessment •^I^ adeptien th^ roll, a special benefit appraisal. Formatted: Indent: Left: 0.13", Numbered + Level: 1 +
will be performed to determine the benefit to the properties from the improvement project. Numbering Style: A, B, c, ... + Start at: 1 + Alignment:
The assessment levy ^h^u heye,-icied to amount may not be ^c ^' hL-.WAX th^c ^c rg eater Left +Aligned at: o" + Indent at: 0.25"
than the benefit received by subject properties. ale -The assessment amount will be the
lesser of the special benefit appraisal determination or the Maximum Assessment Rate as
set by the City Council F Gid8F aGG8GGiRg LIP c^ 100,04 ec total . ^c ^ ^c^ GF PFG'g,e-R
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Maplewoodrq
Special Assessment Policy
City of Maplewood, Minnesota
Adopted by the Maplewood City Council on February 8th, 2010
Policy Revisions
xxxxxxxx
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TABLE OF CONTENTS
1.0 POLICY GOALS...................................................................................................................3
2.0 INTRODUCTION...................................................................................................................3
3.0 POLICY DEFINITIONS.........................................................................................................4
4.0 METHODS OF ASSESSMENT.............................................................................................6
5.0 ASSESSMENT UNIT RATES................................................................................................7
6.0 PAYMENT OF ASSESSMENTS...........................................................................................7
7.0 DEFERRED ASSESSMENTS...............................................................................................8
8.0 ASSESSMENT CONSIDERATIONS.....................................................................................8
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Maplewoodrq
1.0 POLICY GOALS
The goals of Maplewood's special assessment policies and procedures are to:
A. Provide a stable and continuing source of funding within the financial capacity of the City
to accommodate infrastructure needs for new development, redevelopment, and
maintenance within the community in a cost-effective manner.
B. To be responsive to community needs and desires for health, safety, welfare, accessibility,
and mobility provided by new infrastructure and the maintenance of existing assets.
C. Provide for and ensure consistent, uniform, fair, and equitable treatment, insofar as is
practical, lawful, and possible, of all property owners in regard to the assessment of cost
for benefits to properties for the qualifying improvements listed in Minnesota Statutes,
Chapter 429.
D. Provide the City Council and staff with guidelines and methods to efficiently distribute
infrastructure costs to benefited properties in an equitable and consistent manner.
E. Provide a comprehensive, well -constructed and well-maintained infrastructure system that
services individual properties and takes advantage of economies of regional scale and
allows for flexibility in the timing of infrastructure development.
F. To provide an effective tool for the management of municipal resources to support a highly
functional and well-maintained system of infrastructure that promotes economic
development and growth, fosters a sense of pride throughout the community, and
facilitates the development and adoption of short and long-range capital improvement
plans by identifying the extent and sources of funding available.
2.0 INTRODUCTION
A special assessment is a charge imposed on a property for a particular improvement that
benefits those selected properties. Minnesota Statutes, Chapter 429, grants cities the authority
to use special assessments to levy and collect assessments to help fund a broad range of
public improvements. Special assessments are one of several funding sources that the City
utilizes to fund public improvement projects, thereby reducing the reliance on the general tax
levy.
Chapter 429 limits a special assessment to the benefit the property receives, which is equal to
the increase in market value of the property as a result of the public improvement. This can be
determined by appraisals completed prior to and after the subject public improvement project.
Special assessments are a valuable tool for cities to help fund public improvement projects by
assigning a portion of the improvement costs to benefited properties. The properties benefiting
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E2, Attachment 2
from the public improvements also have the opportunity for involvement with the City Council as
outlined in the Chapter 429 process, notably through public hearings.
While the special assessments goals, policies, and procedures have been identified herein, the
City Council has the authority to deviate from this policy when equity or compliance with the law
requires such deviation.
3.0 POLICY DEFINITIONS
A. Abutting Property: A property which has a boundary line that directly touches a public
improvement project.
B. Non -Abutting Property: A property which is adjacent, near, or close to a public
improvement project but is not abutting.
C. Access: Properties shall be considered to have access to public street improvements
when they may enter onto the improvement from their own private driveway, private road,
common driveway, shared easement, or a public street.
D. Adjusted Factor: A factor that modifies the assessment rate, assessable area, or
assessable front footage to more accurately represent the true benefit that the property
receives from the public improvements. The adjustment factor will be based on the
improvement design parameters that are applicable to that parcel, as approved by the City
Council. Design parameters that may be used to determine the adjustment factor include,
but are not limited to: developable area, lot area comparison to surrounding lots in order to
calculate equivalent front footage, trip generation; storm water runoff coefficients; water or
sanitary sewer use; needed fire flow; and zoning or future land use.
E. Adjustable Frontage: The front footage of a benefited property that has been modified by
an adjustment factor to more accurately represent the true benefit that the property
receives from the public improvements. This is useful for flag lots or other improved
properties that have little direct frontage adjacent to the improvement, but from which
access is available directly to and from the improvement area.
F. Assessable Costs: Those costs of public improvements that benefit abutting and/or non -
abutting properties include, but are not limited to, land acquisition, demolition,
construction, administration, and engineering, legal, financing and other costs as
determined by the City Council. The financing charges include all costs of financing the
project. These costs include, but are not limited to, financial consultant's fees, bond
attorney's fees, and capitalized interest.
G. Assessable Area: The assessable area is the total area of a benefited property, when
using an area based assessment.
H. Assessable Footage: The assessable footage is the total front footage of a benefited
property, calculated by using the front footage method.
Assessment Rate: Is determined by taking the lesser of the Maximum Assessment Rate
and the assessment rate established by the special benefit appraisal.
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J. Assessment Unit: Front footage, area or a single family residential standard lot.
K. Benefit: The increase in market value as a result of a public improvement such as, but not
limited to, a street, sidewalk, trail, curb and gutter, water main, sanitary sewer, storm
sewer, park, or street landscaping.
L. Deferment: A process of postponing the collection of the special assessment with the
intention of collecting it at a later date.
M. Front Footage: The distance of a property measured along the right-of-way line that
directly abuts an improvement.
N. Lot Definitions:
1. Standard Lot: A lot that abuts and has access to a street on only one side of the lot.
2. Corner Lot: A lot located at a street intersection abutting a street on both the front and
side of the lot.
3. Double Frontage Lot: A non -corner lot abutting two separate streets.
4. Non -Abutting Lot: A lot which benefits from a public improvement but does not directly
abut the improvements.
O. Maximum Assessment Rate: The maximum assessment rate is determined and annually
adopted by the City Council. The Council adopts a unit rate which is associated with a
single family residential lot as defined by the City's zoning code. If a residential property
has frontage that allows for a future lot split (such as 150 feet allowing for two 75 foot wide
lots), the second lot would be assessed. Commercial and multi -family properties are
assessed on a front footage basis, while single family residential is assessed on a unit
basis. The commercial rates are 1.5 times the amount of a single family residential rate
due to the increased use of the improvement. The commercial and multi -family rate is
calculated by multiplying the single family residential unit rate by 1.5 and then dividing by
75, which is the minimum frontage of a single family residential lot defined by the City's
zoning code.
P. Public Improvement: Improvements as allowed by Minnesota Statutes, section 429.021,
that provide a special benefit to properties, including but not limited to streets, sidewalks,
trails, curb, gutter, sanitary sewer systems, storm sewer systems, water treatment and
distribution systems.
Q. Special Assessment: A legal process whereby the benefited property is charged for all or a
portion of the cost of public improvements.
R. Street: All public ways designed as means of vehicular and pedestrian access to the
adjoining properties.
S. Undeveloped Property: A property that lacks physical improvements and has the potential
to be developed/improved for commercial, industrial, residential or other uses.
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T. Unit: A unit represents the assessment for one single family residential property or one
buildable single family residential property, consistent with the City's zoning code.
4.0 METHODS OF ASSESSMENT
The following are several methods utilized to allocate special assessments to properties
benefited by public improvements:
Residential Unit Method: This method is used for single family residential properties.
A. Standard Lot: A standard lot will be assessed one unit.
B. Corner Lot: A corner will be assessed one unit. If a driveway abuts both streets and only
one street is being improved then the lot will be assessed 50% of the per unit basis for the
street that is being improved. When the other street is improved in the future the property
will then be assessed 50% of one unit for the second improvement project.
C. Double Frontage Lot:
1. A double frontage lot that has a driveway which accesses only one of the streets and
cannot be split to form a second developable lot will be assessed one unit when the
street that the driveway accesses is improved.
2. A double frontage lot that has a driveway that accesses both streets will be assessed
using the same method as a Corner Lot.
3. A double frontage lot that can be split into a two or more developable lots will be
assessed one unit for each developable lot when the street that provides access is
improved.
D. Non -Abutting Lot: A Non -Abutting Lot will be assessed one unit. Adjusted frontage, area,
or the use of an adjustment factor shall be considered.
Commercial/ Multi -Family Front Footage Method: This method is used for multi -family and
commercial properties. The commercial and multi -family rates are 1.5 the amount of a single
family residential rate due to the increased use of the improvement. The commercial and multi-
family rate is calculated by multiplying the residential unit rate by 1.5 then dividing by 75, which
is the minimum frontage of a single family residential lot as defined by the City's zoning code.
A. Corner Lot: A corner lot shall be assessed for each side of the property abutting an
improvement.
B. Double Frontage Lot: A double frontage lot shall be assessed using the same method as a
corner lot.
C. Non -Abutting Lot: A Non -Abutting Lot will be assessed in a fair and equitable manner
consistent with surrounding properties fronting the improvement. Adjusted frontage, area,
or the use of an adjustment factor shall be considered.
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Area Method: The Area Method distributes the assessment according to the gross area of the
benefited lot, parcel, or area. The assessable area shall be expressed in terms of the number
of acres or the number of square feet subject to assessment. The assessment for an individual
property is equal to the assessable area (acres or square feet) x assessment rate per acre or
per square feet. The use of an adjustment factor may be considered when appropriate.
5.0 ASSESSMENT RATES
The City Council shall review and set the Maximum Assessment Rate on annual basis. For
each public improvement project a "benefits appraisal" shall be conducted to determine the
actual special assessment based on the benefit received by the subject property.
6.0 PAYMENT OF ASSESSMENTS:
A. Assessments for single family residential and multi -family properties can be paid over a 15
year period through certification to property taxes as a special assessment. Interest rates
vary, but are set no more than 2% above the City's rate on the bond sale. The increased
rate covers administration and collection of the assessments over the life of the repayment
period.
B. Assessments for commercial properties can be paid over an 8 year period through
certification to property taxes as a special assessment. Interest rate vary, but are set no
more than 2% above the City's rate on the bond sale. The increased rate covers
administration and collection of the assessments over the life of the repayment period.
C. For projects where the City does not utilize general obligation bonds, the interest rate will
be set at 1.5% over the most recent (within a one year period) general obligation bond
sale (rounded to the nearest .25%). If the City has not sold a general obligation bond
within a one year period, the interest rate will be 1.5% over the current market rate for
similarly rated municipal general obligation bonds (rounded to the nearest .25%).
D. Property owners may wish to make a payment to the City within 30 days of the adoption of
the assessment roll. Property owners may choose to make a full or partial payment. No
interest will be charged for payments received within 30 days of the adoption of the
assessment roll. For payments received more than 30 days after the adoption of the
assessment roll but on or before November 15, interest will be charged from the date of
the adoption of the assessment roll to the date of payment. After November 15, unpaid
balances will be certified to Ramsey County for payment with property taxes beginning the
year after the assessment roll was adopted.
E. It should be noted that if only a partial payment is made before certification to Ramsey
County, the assessment balance may be paid over the same 15 year period for single
family residential property or multi -family property and 8 years for commercial property.
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E2, Attachment 2
7.0 DEFERRED ASSESSMENTS:
Minnesota Statutes, Chapter 429 allows for deferred assessments. This section is only meant
to cover the most frequent cases encountered by the City in past years. Minnesota Statutes
shall govern in all cases.
Hardship Deferral for Seniors, Disabled or Military Persons
Minnesota Statutes, section 435.193 authorizes the City Council to enact said deferrals. The
City Council hereby provides for the deferral of a special assessment regarding any homestead
property owned by a person who is:
A. 65 years of age or older or retired by virtue of a permanent and total disability for whom it
would be a hardship to make the payments; or
B. A member of the Minnesota National Guard or other military reserves who is ordered into
active military service for whom it would be a hardship to make the payments.
As a general guideline, a financial hardship exists if the total payment for the first year of the
assessment is greater than 2% of the household's adjusted gross income. In order to determine
financial hardship, the City's public works director or finance director shall review the applicant's
income. This financial hardship guideline is intended to make clear the standard basis for
financial hardship and remain non-discriminatory in financial hardship reviews. However, the
public works director or finance director may approve deferrals where extenuating
circumstances exist as presented by the applicant.
It should be noted that a deferred assessment accrues interest. The deferment comes due with
interest upon death of the owner (provided that the spouse is not otherwise eligible),
sale/transfer/subdivision of property, termination of eligibility for the deferral, loss of homestead
status of the property, or determination by the City Council that requiring immediate or partial
payment would impose no hardship. The deferred assessment, with accrued interest, shall be
payable over such period as may be determined by the City Council but no longer than 30 years
from the year in which the assessment was levied.
Unimproved Property
The City Council may grant deferrals for unimproved properties. The City Council may defer
assessments for a period of 15 years, after which time if no improvement occurs the
assessment shall be terminated. If improvements are made within 15 years the assessment
shall come due with interest. The deferred assessment, with accrued interest, shall be payable
over such period as may be determined by the City Council but no longer than 30 years from
the year in which the assessment was levied.
8.0 ASSESSMENT CONSIDERATIONS:
A. Some private development projects require the construction of public infrastructure. All
such infrastructure shall be constructed as a public improvement project. The developer
must execute a petition and waiver agreement providing for the assessment of 100
percent of the costs of the public improvement to the property within the development,
unless otherwise agreed to by the City.
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E2, Attachment 2
B. All properties benefiting from improvements are subject to the special assessment.
C. The assessment rates will change year to year depending on City rate adjustments and
benefit appraisal information. Special assessments may be imposed for improvements
listed in Minnesota Statutes, Chapter 429 and are not limited to those listed in this policy.
D. The special assessment methods described in the policy statement should not be
considered as all inclusive. Unique or unusual circumstances may, at times, justify special
consideration and the use of adjustment factors.
E. Prior to the adoption of the assessment roll, a special benefit appraisal will be performed
to determine the benefit to the properties from the improvement project. The assessment
amount may not be greater than the benefit received by subject properties. The
assessment amount will be the lesser of the special benefit appraisal determination or the
Maximum Assessment Rate as set by the City Council.
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J2 -Moved from Council
Meeting to Workshop
CITY COUNCIL STAFF REPORT Agenda Item E3
Meeting Date December 9, 2019
REPORT TO: City Council
REPORT FROM: Melinda Coleman, City Manager
PRESENTER: Melinda Coleman, City Manager
Ron Batty, City Attorney
AGENDA ITEM: Closed Session Pursuant to Minn. Stat., Section 13D.05, subd. 3(b) for
Attorney -Client Privileged Discussion Regarding Pending Litigation, Myth
Live II, Inc v. City
Action Requested: ✓ Motion ❑ Discussion ❑ Public Hearing
Form of Action: ❑ Resolution ❑ Ordinance ❑ Contract/Agreement ❑ Proclamation
Policy Issue:
The purpose is to discuss pending litigation.
Recommended Action:
Before the meeting is closed, the City Council must state on the record the specific grounds
permitting the meeting to be closed and describe the subject to be discussed. Therefore, it is
recommended the City Council introduce the following motion:
Pursuant to Minnesota Statutes Section 13D.05, subd. 3b, I hereby motion to close the
regular meeting and go into closed session to discuss pending litigation related to the Myth
Live II, Inc.
Fiscal Impact:
Is There a Fiscal Impact? ✓ No ❑ Yes, the true or estimated cost is $0.
Financing source(s): ❑ Adopted Budget ❑ Budget Modification ❑ New Revenue Source
❑ Use of Reserves ❑ Other: n/a
Strategic Plan Relevance:
❑ Financial Sustainability ❑ Integrated Communication ❑ Targeted Redevelopment
❑ Operational Effectiveness ❑ Community Inclusiveness ❑ Infrastructure & Asset Mgmt.
Background
4ffnrhmnn+c
None
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