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2025 THIN OVERLAY PROJECT <br />Project Financing/Assessments <br />PROJECT FINANCING <br />Improvement projects like the thin overlay discussed in this report can be financed in whole or in <br />part by a combination of funds from the City's Street Fund, and Special Assessments under the <br />authority of MN Statutes Chapter 429. In general, this law allows municipalities to assess benefiting <br />properties for all or a portion of the cost of public improvements. The maximum amount which can <br />be assessed is the lesser of the total project costs (divided uniformly over the same classes of <br />property) or the increase in property value afforded by the improvement to the benefiting <br />properties. <br />Thin Overlay Improvements <br />For this project, residential property assessments have been calculated on a per parcel basis and <br />the commercial and public/institutional property assessments have been calculated based on front <br />footage. The front footage assessment amount is based on the $83.54 centerline foot cost estimate. <br />Dividing $83.54 by two yields a front foot cost of $41.77/front foot. Then, we evaluated the amount <br />being assessed in residential areas as a percentage of the project costs and came up with a rate of <br />approximately 20%. Finally, applying that same percentage to the front foot cost, gives a value of <br />$8.35/front foot. <br />Typically, the amount being assessed as a percentage of the project costs has been approximately <br />20%. Therefore, we recommend the total assessable amount for this project not exceed 20% of the <br />total project costs. The remainder of the costs would be funded via the City's General Levy/Street <br />Fund. <br />Calculating assessments on a street by street basis yields rates ranging from $922/Lot - $1,233/Lot, <br />depending on the density of homes. It has been the city's practice to assess all residential lots on the <br />project the same. With that in mind, a rate per lot of $1,000 may be appropriate for the 2025 project. <br />See Figure 3 for the benefitting properties to be assessed. <br />Funding Summary <br />Funding Sources <br />General Fund (Streets) <br />Assessments <br />Total <br />Residential <br />$585,000 <br />$123,000 <br />$708,000 <br />Commercial <br />$4,980 <br />$1,244 <br />$6,224 <br />Public/Institutional <br />$57,817 <br />$14,445 <br />$72,262 <br />Total <br />$647,797 <br />$138,689 <br />$789,486 <br />City of Centerville Page 5 <br />2025 Thin Overlay Project Stantec 193807381 <br />