2012-03-27_PWETC_Minutes - Laserfiche WebLink

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Richfield doesn't assess at all, but levied the funds, similar to the City of Roseville's Pavement Management Plan (PMP) and current Assessment Policy. Ms. Bloom noted that the City of St. Louis Park had switched almost entirely to basing their assessments on appraisals and expected benefit of a project and assessing accordingly, similar to the Cities of Maplewood and Inver Grove Heights. Ms. Bloom advised that staff had held good discussions with those communities on their rationale in making those transitions and subsequent results of those methods. Depending on the properties identified that will benefit from a project—with a commercial or residential appraisal completed—to determine the maximum benefit, with a base assessment rate of less than that, and consistent with State Statutes. Regarding Zoning Districts, Ms. Bloom identified several examples of businesses in commercial and mixed-use districts. At the request of Member Felice, Ms. Bloom noted that assessments were based on Chapter 429 of Minnesota State Statutes, allowing cities to assess for projects based on adding more value to a home or business, rather than a city arbitrarily deciding on assessments, allowing property owners protection, applicable to all zoning districts and a consistent policy. Discussion included types of benefits (e.g. mill and overlay, total reconstruction); property owner rights of appeal and potential renegotiation of assessments; lead time for assessable projects, estimated to be one (1) year in accordance with Chapter 429 scheduling. Over the last six (6) years, Ms. Bloom advised that the City of Roseville process usually included four (4)informational meetings with affected property owners, in addition to the formal Public Hearing process. Since the City of Roseville did not currently assess property owners for mill and overlay projects, Ms. Bloom advised that projects were much better received by its constituents. Ms. Bloom reviewed current project funding for those mill and overlay through interest earnings from the PMP; however, she noted the challenges with current interest rates and keeping the PMP sustainable. Ms. Bloom noted that other communities didn't necessarily have such program as the City of Roseville's PMP, and therefore were forced to consider other options, such as assessments, as a funding source. Discussion included the appraisal process done by communities, such as the City of Maplewood, to determine the percentage of increased benefit for properties averaging between 25-30%, comparable to the City of Roseville's total project cost breakdown per linear foot. Ms. Bloom noted that the City of Maplewood's before and after appraisal property values averaged an increase of 30%; with the City of Roseville's current reconstruction projects averaging an assessment value of 25% in accordance with its existing Assessment Policy. Page 6 of 15