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Prepared by: Bolton & Menk, Inc. FUNDING & ASSESSMENTS 2026 PMP Street & Utility Improvements ǀ 25X.137753 Page 18 VIII. FUNDING & ASSESSMENTS Assessments for street improvement costs are proposed to be levied to benefiting properties as outlined in Minnesota Statute 429 and the City of Arden Hills Assessment Policy. A preliminary assessment roll was compiled for all adjacent benefitting properties per the City’s assessment policy and is included in Appendix C. Identified properties were proposed to be assessed at a calculated assessment rate of 50% of the street project costs for residential properties and 70% of the street project costs for commercial/industrial properties. The street project costs were split between mill & overlay improvements and reclamation improvements for each property zoning classification. To determine properties eligible for assessment, each property’s frontage and access to the street(s) proposed for improvements were evaluated (including access via private roads and shared driveways, specifically in the case of Cummings Park Drive). As indicated in the City’s assessment policy, properties with frontage abutting a street identified for improvement shall be assessed on a unit basis at the calculated assessment rate, however, corner lots shall be assessed on the street that is used for the mailing address. Further, “the City Council shall retain the right to review each project on its own merit and deviate from any portion of the Assessment Policy Manual, as it deems proper. These deviations may occur in unique situations or where application of the policy produces unfair or undesirable results. The residential equivalent assessment rate shall be determined by the City Council.” The project area includes a few unique property situations as it relates to the city’s assessment policy. Five of the industrial properties identified for assessments have access to Cummings Park Drive, either directly, from a private road, or from a shared driveway, but do not have a Cummings Park Drive address. Further, one of these properties has alternative access options to County Road F. Each of these properties have been included in the assessment calculations but the City Council should specifically evaluate these properties, in addition to the project as a whole, to determine if the City’s assessment policy was accurately applied. Assessments for the proposed street improvements were calculated using the Residential Equivalent Unit (REU) method as outlined in the City’s assessment policy. Each property eligible for assessment was identified as either a residential mill & overlay property, residential reclamation property, or industrial reclamation property based on the proposed street improvement classification and the associated property zoning. The assessable costs for each improvement/zoning category were divided by the number of eligible REU’s to determine an assessment rate for each improvement/zoning category. Calculations for the estimated assessment rates are provided below: Residential Mill & Overlay Areas 50% Estimated Street Project Costs = $81,500 Residential Equivalent Units = 21 Assessment Rate = $3,880 Residential Reclamation Areas 50% Estimated Street Project Costs = $614,500 Residential Equivalent Units = 105 Assessment Rate = $5,850 DRAFT