(A) Purpose. The purpose of this policy is to establish a fair and equitable manner of assessing the increase in market value (special benefit) associated with public improvements. The procedures used by the city for levying special assessments are those specified by M.S. Chapter 429, as it may be amended from time to time, which provides that all or a part of the cost of improvements may be assessed against benefitting properties.
(B) Criteria. Three basic criteria must be satisfied before a particular parcel can be assessed. The criteria are as follows:
(1) The land must have received special benefit from the improvement;
(2) The amount of the assessment must not exceed the special benefit; and
(3) The assessment must be uniform in relation to the same class of property within the assessment area.
(C) It is important to recognize that the actual cost of extending an improvement past a particular parcel is not the controlling factor in determining the amount to be assessed. However, in most cases the method for assigning the value of the benefit received by the improvement, and therefore the amount to be assessed, shall be the cost of providing the improvement. This shall be true provided the cost does not demonstrably exceed the increase in the market value of the property being assessed. The entire project shall be considered as a whole for the purpose of calculating and computing an assessment rate. In the event city staff has doubt as to whether or not the costs of the project may exceed the special benefits to the property, the City Council may obtain such appraisals as may be necessary to support the proposed assessment.
(D) The assessment policy is intended to serve as a guide for a systematic assessment process in the city. There may be exceptions to the policy or unique circumstances or situations which may require special consideration and discretion by city staff and the City Council.
(Res. 10-01-2020, passed 10-21-2020)