5.6. SR 08-01-1994 - Laserfiche WebLink

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r(; ~'\) ( )f ~y of ~ Ell{ ITEM 8.3 MEMORANDUM TO: MAYOR & CITY COUNCIL FROM: PAT KLAERS, CITY AD~1ft DATE: JULY 21,1994 { Y SUBJECT: $3,800 TRUNK SEWER AND WATER ASSESSMENT RATE . For the past six months or so, the City Council has debated the existing City policy of charging $3,800 per acre for trunk sewer and water improvements. A major area of concern regarding this policy is in the northeast area of our urban service district. At this time" the northeast area is the smallest service area, has fewer property owners involved when compared to other districts, and appears that it will be the quickest to completely develop. The City Engineer and City Attorney will be in attendance at this Council meeting as well as local developer, Rick Foster, to help facilitate the City Council's discussion on this topic. The City has followed an assessment policy of charging $3,800 per acre for tr~ sewer and water improvements. This dollar amount is assessed out to benefited property owners on a gross acreage basis regardless of its zoning classification. The Assessment Manual technically calls for this amount to be assessed on a project area basis, but the City has been following the practice of charging this cost out on a city-wide basis. The major issue to be discussed by the City Council is whether or not the cost for trunk utilities should be different for different project areas or whether or not the cost should be consistent and uniform for the same utility throughout the City. . A second issue to review is if the assessments should be based on actual costs or on estimates. We currently use estimates based mainly on our practice of assessing out the benefits for public improvements before these improvements are actually completed in order to avoid problems with assessment appeals. The length of time for completing an entire project area P.O. Box 490. 13065 Orono Parkway. Elk River. MN 55330. (612) 441-7420. Fax: (612) 441-7425