Planning and Zoning

Appendix G - Special Assessement Policies for Local Improvement Projects

SECTION I GENERAL POLICIES

  1. INTRODUCTION  
    A local improvement project is a project involving the construction of one or more of the following types of improvements, on which part or all of the cost is to be assessed to benefiting properties:  
    1. Street Pavement
    2. Watermain Sidewalk
    3. Sanitary Sewer
    4. Curb & Gutter Driveway
    5. Storm Sewer
    6. Service Connections
    7. Water Tower
    Minnesota Statutes, Chapter 429, regulates the procedure for the construction and financing of local improvement projects when at least part of the cost is defrayed by special assessments against benefited properties.  When an improvement is constructed which is of special benefit to certain areas, it is the intent of the Common Council that special assessments be levied against the benefited properties within that area.

    The objectives of these special assessment policies are: to promote orderly development; to ensure fair and equitable treatment of benefiting properties; and to assure that the City's financial resources are protected.
  2. INITIATION OF PUBLIC IMPROVEMENT PROJECTS
    1. Petition:  Petitions for public improvements received through the last day of May will be scheduled for budget hearings in that year and for construction in the following year. Petitions for public improvements to be acted upon and constructed in the same year will be only by special consent of the Council.
    2. Council Action:  Public improvements may also be initiated by the Common Council when, in its judgment, such action is required.
    3. New Developments:  Minimum improvements required in new additions are street grading and surfacing, concrete curb and gutter, sanitary sewer, watermain, storm sewer, and service connections stubbed into the boulevard.  These improvements shall be constructed in conformance with City requirements and paid for entirely by the developers under contract with the City.
  3. SERVICE LIFE OF IMPROVEMENTS Public improvements are judged to have a normal usable life expectancy. For the purpose of this policy statement, this life expectancy shall be as follows:
    1. Surface Improvements
      1. Concrete pavement......................... 30 years
      2. Concrete curb and gutter................. 30 years
      3. Plant mix bituminous....................... 20 years
      4. Sidewalks...................................... 20 years
    2. Subsurface Improvements
      1. Watermains.................................... 40 years
      2. Sanitary sewers.............................. 40 years
      3. Storm sewers................................. 40 years
    3. When any existing surface improvement is ordered to be renewed or replaced, the assessments to be levied therefore will be prorated from 0% at one-half life expectancy to 100% of new construction assessment at full life expectancy.  When any subsurface improvement is ordered to be renewed or replaced, the assessments to be levied therefore will be prorated from 0% at 1/2 life expectancy to 50% of new construction assessment at full life expectancy.
  4. ASSESSMENT POLICIES APPLICABLE TO ALL TYPES OF IMPROVEMENTS  The following are the basic principles and definitions of the City's assessment policy:
    1. Special assessments against property abutting an improvement or property within the project will be levied as soon as possible after the improvement is completed.  Normally, this will be within one year after completion of the project.
    2. Benefits received by non-abutting property may be designated as a deferred assessment to be levied (with interest, the rate being set by the Council) after a certain number of years or after subsequent improvements are made extending the project so as to abut the property.
    3. Under Minnesota Statutes, Section 429.051, the City does not defer assessments for areas outside the City, but rather assumes any non-assessable cost as a municipal obligation.  When property is annexed and served by the original improvement, the City can then create a new assessment to be reimbursed for all or any portion of the prior assumed municipal costs, including interest, related to the improvement.
    4. Special assessments are based upon the amount of assessable costs of each project.  The term "assessable cost" and related terms as used in this policy statement are defined as follows:
      1. "assessable cost" is the "project cost" less the "City cost".
      2. "project cost" is the cost of all construction work required to accomplish the improvement, plus engineering, legal, financing and other contingent costs.
      3. The assessment rate for any special assessment district is computed by dividing the total assessable cost of such improvement by the total number of assessment units.
    5. Frontage roads along highways or other arterial streets are deemed to be of special benefit to abutting properties and therefore, the entire costs of improvements on frontage roads may be assessed against the benefited property even though those properties may be located only on one side of the frontage road.
    6. Publicly owned properties, other than State and Federal properties, including municipal building sites, schools, parks and playgrounds, but not including public streets and alleys, are regarded as being assessable on the same basis as if such property were privately owned.
  5. BASIC ASSESSMENT DATA REQUIRED FOR EACH PARCEL
    1. Area (Used for sanitary sewer trunk, water towers, and may be used for storm sewer)       Area used is the gross area of the parcel as it is benefited by each separate improvement.
    2. Adjusted Front Footage (Generally used for all improvements except for sanitary sewer trunk, water towers, and in come cases, storm sewers) In the adjusted front footage method, odd-shaped lots are adjusted to an average frontage that would be the equivalent to the frontage of a rectangularly shaped lot of the same area and depth.
  6. DETAILS OF COMPUTING ADJUSTED FOOTAGE
    1. Odd-Shaped Lots
      For odd-shaped lots, such as exist on cul-de-sacs or triangular intersections, etc., the adjusted front footage is computed by dividing the area of the lot, up to a maximal distance of 150 feet from the street where the improvement is to be installed, by 150 (or by the average depth, if less than 150 feet).
    2. Approximately Rectangular Lots
      For a lot which is approximately rectangular, the adjusted front footage is computed by averaging the front and back sides of the lot.  If the lot is deeper than 120 feet, the width at the 120 foot depth is used for the back lot line.  This method is used only where the divergence between front and rear lot lines is five feet or less.
    3. Rectangular Lots
      For the normal rectangular lot, the adjusted front footage is the actual front footage of the lot.
    4. Shallow Lots
      For rectangular lots under 120 feet in depth, or irregular lots averaging less than 120 feet in depth, the adjusted front footage is determined by actual lot area divided by 120 feet.
    5. Corner Lots
      Residential corner lots for street paving, curb and gutter are given a deduction of 120 feet for the long side or are assessed the width of the lot, whichever is greater.  Residential corner lots for sanitary sewer and watermain will be assessed based on the short side frontage plus the long side frontage over 120 feet.

      For sidewalk improvements, one-half the long side of the lot is a City responsibility.  For surface improvements, multi-family, commercial and industrial corner lots shall be assessed at the per foot cost for the entire length of the side lot as well as front of lot.
    6. Large Tracts
      Large tracts may have adjusted front footage on two or more sides.  This adjusted front footage shall apply only to improvements on the particular street upon which the adjusted front footage faces.  The corners of these large tracts shall be considered as side lots.  A distance of 120 feet back from the corner on one of the streets at each street intersection shall be considered as the side of the lot and will not receive an adjusted front footage assessment.  Corner credits are given on last side assessed.
    7. Double Frontage Lots
      For double frontage lots, 120 feet or less in depth, a single adjusted front footage is used.      
      If the lot is more than 120 feet in depth, the area within the first 150 feet of depth abutting the primary access is divided by 120 to arrive at the first adjusted front footage.  The balance of the lot is then used in computing the second frontage.      
      If the second frontage abuts a major arterial street where restricted access is desired by the City, an exemption for the first 150 feet of such frontage may be granted upon receipt by the City of a formal access restriction executed by the property owner.  Such formal access restriction shall be in the form of a deed for planter easement, running to the City of Rochester, with a minimum width of ten feet.
  7. PAYMENT POLICY FOR IMPROVEMENT PROJECTS
    1. The payment policy of special assessments calls for a notice, showing the amount to be paid by each property owner, to be sent to the property owner after the Common Council approves of the assessments, which are proposed during an assessment hearing.
    2. Normal City policy is to allow the property owner a payment period  (with interest) of five years for sidewalks and curb and gutter projects, and a payment period of ten years for all other types of improvement projects.  If the property owner pays the entire assessment within 30 days after the date the assessment has been adopted, no interest will be charged.  3.       If the assessment has not been paid in 30 days, the first installment is certified to the County Auditor, plus interest at a rate determined by the Common Council on the total amount from the date of the resolution levying the assessment until December 31st of the year in which the first installment is due.
    3. This amount is due and payable with property taxes for the year.  Thereafter, installments will be certified to the County Auditor by October 10th of each year, including interest at the rate set by the Common Council on the unpaid balance.  Prepayment of the assessment may be made any time during the year up until November 15th (no payment can be accepted during the period from November 15th through December 31st of any year).

SECTION II - SPECIFIC PROCEDURES

  1. Streets 
    1. In all streets, prior to permanent surfacing or resurfacing, except where physical problems determine otherwise, all utilities and utility service lines (including sanitary sewers and water lines) shall normally be installed to serve each known or assumed building location.  No surface improvements to less than both sides of a full block of street shall be approved, except as necessary to complete the improvement of a block which has previously been partially completed.
    2. Streets are classified as follows according to the amount of traffic they carry or are expected to carry and the type of construction required:   
      1. "arterial streets" and "collector streets" shall be “9 ton" design and of adequate width to accommodate projected traffic volume.
      2. "residential streets" shall normally be of “7 ton" design and shall normally be 32' in width, measured between the faces of the concrete curb and gutter.
      3. The increased cost of constructing a street to a design standard higher than that required to serve the benefited property shall be charged as "City cost".
    3. The following general provisions shall be used in distributing the costs of roadway construction in a previously platted or developed area of multiple ownership: 
      1. The increased cost of constructing a street to a design standard higher than that required to serve the benefited property shall be charged as "City cost".       

        The residential property (zoned or used for R-1, R-2, R-3) on each side of the street shall normally be assessed for one half of the cost of standard 36’ residential street construction, even though a higher type of street is constructed.       

        Commercial property (R-4, B-1, B-2, B-3) on each side of the street located in areas that are mainly residential shall be assessed for one-half the cost of 36’ of collector street construction even if a higher type of street is constructed.        Commercial and industrial properties (R-4, B-1, B-2, B-3, M-1, M-2) on each side of the street, located in areas which are mainly commercial and industrial shall be assessed for one-half the cost of 36’ of arterial street construction whenever it is necessary to construct this type.        

        The maximum assessment for residential street reconstruction shall be $17.00 per assessable foot for street pavement and $25.00 per foot for street pavement and curb and gutter.  
      2. On street resurfacing projects, the cost of constructing a new surface or "wearing" course shall be assessed to properties in the benefited area.
      3. On Municipal State Aid, Federal Aid, Urban or other State or Federal Aid projects, assessments shall be levied against the benefited properties on the same basis as other streets, except as modified in 3,d, below.  
      4. On Municipal State Aid, Federal Aid, Urban or other State or Federal Aid projects, the cost of the intersection and curb and gutter intersection radius shall not be proportioned against the other benefited frontage on the project.
  2. Sidewalks
    1.  Sidewalks shall be provided on both sides of streets in accordance with Rochester Code of Ordinances, paragraph 50.02.
    2. Sidewalks are to be:
      1. 5’ wide on collector streets.
      2. 4’ wide on low volume traffic streets in new subdivisions.  
    3. The total cost of sidewalks is assessed against the abutting property except on residential corner lots where one-half of the long side is paid for from City funds.

      The 120’ deduction for the long side of corner lots works well for street paving, sewer and water projects since the corner lot deduction can be added to the project balance assessed.  However, in the case of sidewalks, many of the walks are installed on a lot by lot basis and the added City cost cannot be charged against the balance of the project.  We estimate that the approximate annual City cost of sidewalk installation and replacement would be $52,000 for 120’ deduction and $26,000 for 1/2 of the long side deduction.
    4.  In the case of a sidewalk replacement project, a certified letter is sent to the property owner, stating the areas of sidewalk that need to be replaced.  The property owner is given 30 days in which to make a decision as to whether they will do the work themselves, hire a contractor or let it remain in the City project.  If left in the City project, normal City policy is to hold a public hearing and cause the work to be completed.

      Property owners must complete their replacement within the construction season.
    5. For either a new or a replacement project, a property owner may construct their own portion of the sidewalk if they so desire.  In order to do so, the property owner must obtain a permit and specifications from the City Engineer's office.  The Engineer’s office will provide the needed elevations and will inspect the forms and the completed work.  No permits will be issued after a contract has been awarded on a sidewalk project.
  3. Curb and Gutter
    1. On all new additions, and street developments of old additions, concrete curb and gutter is required.
    2. The cost of curb and gutter is assessed against property on an adjusted front footage basis.  Driveways are assessed against the property served.
  4. Water Towers
    1. The total cost of the tower, land, its appurtenances, footings, all pipe, booster pumps (if needed), and the cost of installation thereof shall be assessed against benefited properties, the extent of the area so benefited by said tower to be determined by the City Council.
    2. The cost of drilling a well is paid for by the City.  
  5. Sanitary Sewer and Watermain
    1. General policy is to assess, (on a front-foot basis), the entire cost of sanitary sewer and watermain projects against the benefited property, with the exception of the first 120 feet of the long side of corner lots.  The remaining portion of the long side is assessed to the corner lot; the cost of the 120 feet not assessed is charged against property owners of the entire project.  Sanitary trunk line sewers are usually assessed on an area basis.
    2. The normal size of a watermain is 8 inches.  The material cost difference of the watermain pipe and fittings over 8 inches is borne by the City.
  6. Storm Sewer
    1. The cost of a storm sewer may be assessed against benefited property on an area basis, and by the amount of water runoff.  The portion of the storm sewer cost which is assessed to benefited property varies from project to project, depending upon the particular circumstances.
    2. A storm sewer project may be installed in conjunction with the sanitary sewer and watermain, or included as drainage in a street improvement project.
  7. Sewer and Water Service Lines
    Sewer and water service lines, when installed as part of a local improvement project, the costs would be fully assessed to the properties served.