05-29-07 Item 6A, 2007 PMP Assessment Hearing

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Minn. Stat ~ 429.061, subd. 2 Minn. Stat.. ~ 429.061 24 /- ('r) {! UX!tJJ JnLP((J-WJ/((fjLf 6tf.l1lt Whether the proceeding at the adjourned hearing will bring the assessment determination within the quoted phrase, without the use of an impartial reviewing officer or body, remains to be seen. The procedure will at least save the council from the need for a more expert determination until a property owner objects at the original assessment proceeding. Another possibility is available under the local improvement code. The law has provided that the city could not calculate the total expense of the improvement until after the city had let a contract or ordered the work done by day labor. Only then could the city propose the assessment roll. Under an amendment, the city may now calculate the expense at any time, and the council may determine the assessment amount and prepare the assessment roll. It is now possible to advertise bids and allow sufficient time after the closing date to permit the city to prepare the assessment roll on the basis of the bid, and hold a hearing on that basis. Alternatively, the council might, when the financial situation warrants, proceed with the proposed assessment on the basis of estimates, with a reserve fund from general taxes and other uncommitted sources of revenue making up any difference between the assessments and the project cost. This method may be particularly attractive if the city follows the policy of paying some substantial part of improvement costs from tax revenues. Either method avoids the danger of proceeding on estimates, and having to make a substantial reassessment when actual costs turn out to be in excess of the estimates. If a reserve fund from general revenues is available, no reassessment will be necessary unless the cost is less than estimates, and no one is likely to object when that process results in lower special assessments. H. Interest limits on special assessments The statutes no longer impose limits on the interest rates cities may charge on special assessments. This is true both for local improvement projects where the city uses the assessments to repay the bonds it issued for the project, and for special assessment projects the city finances with general fund moneys without using bonds. The 1987 Legislature gave city councils authority to set the interest rate' on special assessments in the resolution making the asse'ssment. ',. Soine charter cities may still be subject to a charter assessment limit, however. League of Miuuesota Cities