Res. #16-030 - Receiving Report, Calling for P.H. 2017 Mill & Overlay

Home Browse Search

IID1111 'F11:1III!i EblyrlII IIjIIi..#ky IIIpIIYialaIR 1110Project Fina ncin g /Assess men ts PROJECT FINANCING Improvement projects like the one contemplated in this report can be financed in whole or in part by a combination of funds from the City's Thin Overlay program fund in the general levy and Special Assessments under the authority of MN Chapter 429 law. In general, this law allows municipalities to assess benefiting properties for all or a portion of the cost of public improvements. The maximum amount which can be assessed is the lesser of the total project costs (divided uniformly over the same classes of property) or the increase in property value afforded by the improvement to the benefiting properties. Road Irnorovernents For this project, residential property assessments are proposed on a per parcel basis. For commercial property, assessments have been calculated based on square footage of each parcel. The square footage assessment amount is based on the cost estimate for Gateway Circle. Then divide the total by the square footage in the cul-de-sac. Typically, the amount being assessed in residential areas as a percentage of the project costs has been approximately 25%. Therefore, applying that same percentage to the square foot cost, gives a value of $0.012/square foot. The area to be assessed is shown on Figure 3 in the appendices. Trail Improvements Trail improvements will not be assessed and will be funded entirely out of the city's general fund (road fund). FUNDING SUMMARY Road/Thin Overlay Assessments Funding Sources Fund (General Levy) Total Residential Properties $134,615 (35%* $25,850 (15%- $160,465 approx.) approx.) Comm./Industrial Properties $13,365(75%* $4,450 (25%*approx.) $17® 15 approx.) Trails $81,42.0(1007.) (0%) $81,420 Totals .$229,400 $30,300 $259,700 *Target values for typical projects. City of Centerville Page 5 2017 Thin Overlay Program 193803756