Subd. 1. Scope and purpose. The purpose of this subsection is to supplement the requirements of State law, to provide for the methods to initiate a water improvement, and to authorize the formulation of policies relating to allocating the costs for the public improvements.
Subd. 2. Special assessment procedure.
a. Initiating the improvement. Improvement proceedings may be initiated in any one of the following four ways:
(1) One hundred percent petition. By a petition signed by 100% of the owners of real property abutting any street named as the location of the improvement. Upon receipt of a petition of 100% of the abutting property owners, the City Council must determine that it has been signed by 100% of the owners of the affected property. After making this determination, a feasibility report shall be undertaken and the project may be ordered without a public hearing, pursuant to the procedures set forth in M.S. § 429; or
(2) Thirty-five percent petition. By a petition signed by the owners of not less than 35% of the frontage of the real property abutting on the streets named as the location of the improvement, when the property owners are willing to pay the entire cost of the improvement. Upon receipt of a petition of 35% of the owners of abutting frontage, the City Council must determine that it has been signed by 35% of the owners. After making this determination, a feasibility report shall be undertaken and a public hearing shall be scheduled to consider the project, pursuant to the procedures set forth in M.S. § 429; or
(3) Sixty-seven percent petition. By a petition signed by the owners of not less than 67% of the lots or parcels abutting on the streets named as the location of the improvement. Upon receipt of a petition of 67% of the owners, the City Council must determine that it has been signed by 67% of the owners. After making this determination, a feasibility report shall be undertaken and a public hearing shall be scheduled to consider the project. If an improvement is ordered, benefitting properties shall be assessed pursuant to the procedures set forth in M.S. § 429; or
(4) By the initiative of the City Council. If the City Council determines to order an improvement, a feasibility report, as set forth in c. below, shall be undertaken and a public hearing shall be scheduled to consider the project. A simple majority vote of the City Council is needed to start the proceedings. If an improvement is ordered, benefitting properties shall be assessed pursuant to the procedures set forth in M.S. § 429.
b. Petitions. Not later than the time a petition is considered for acceptance by the City Council pursuant to a.(1) through a.(3) of this section, the petitioners shall have executed and delivered to the city an agreement whereby the petitioners agree to pay the cost of the improvement as defined in the agreement and agree not to contest or challenge either the assessment process or the amount to be assessed. The petition shall include an agreement that the cost of preparing the feasibility report shall be paid by the petitioners in the event the improvement is determined not to be feasible. Failure to pay for the feasibility report shall result in the costs being assessed against the properties of the petitioners.
c. Preparing the feasibility study. An improvement project which is initiated by action of the City Council or by a 35% or 67% petition, as set forth in a.(2) and a.(3) of this section, may be ordered only after a public hearing. Prior to adopting a resolution calling a public hearing on an improvement, the Council must secure from the City Engineer a report advising it in a preliminary way as to:
(1) Whether the proposed improvement is feasible;
(2) Whether the proposed improvement is consistent with Capital Improvement Planning;
(3) Whether the improvement should be made as proposed or in connection with some other improvement;
(4) The estimated cost of the improvement;
(5) A proposed project schedule; and
(6) Any other information thought pertinent and necessary for complete Council consideration.
d. Holding a public hearing on the improvement.
(1) Improvement projects which are initiated by a 100% petition may be ordered by the City Council without a public hearing if the City Council determines the project may be undertaken without unreasonable changes to the Capital Improvements Program or the petitioning property owners agree to pay 100% of the cost of the improvements. In the case of a Council-initiated project or petition of less than 100% of abutting property owners, the Council must adopt a resolution calling a public hearing on the improvement project for which mailed and published notices of the hearing must be given. The notice of public hearing must include the following information:
(a) The time and place of hearing;
(b) The general nature of the improvements;
(c) The estimated cost; and
(d) The area proposed to be assessed.
(2) Not less than 10 days before the hearing the notice of hearing must be mailed to the owner of each parcel in the area proposed to be assessed. The notice of public hearing must be published in the city’s legal newspaper at least twice, each publication being at least one week apart, with the last publication at least three days prior to the hearing.
(3) At the public hearing, the contents of the feasibility study will be presented and discussed with the intent of giving all interested parties an opportunity to be heard and their views expressed.
(4) Following a public hearing a resolution ordering the improvement may be adopted at any time within six months after the date of the hearing by a four-fifths vote of the City Council, unless the project was initiated by a 35% petition or a 67% petition in which event it may be adopted by a majority vote. At this time a special assessment is considered to be “pending” for all assessable properties in the improvement area.
Subd. 3. Deferred assessments.
a. The City Council may defer special assessments. On homestead property owned by a person who qualifies under the hardship criteria set forth below.
b. Procedure. The property owner shall make application for deferred payment of special assessments. The application shall be made within 30 days after the adoption of the assessment roll by the City Council and shall be renewed each year upon the filing of a similar application no later than September 30. The City Administrator/Clerk shall establish a case number for each application; review the application for complete information and details and make a recommendation to the City Council to either approve or disapprove the application for deferment. The City Council by majority vote, shall either grant or deny the deferment and if the deferment is granted, the City Council may require the payment of interest due each year. Renewal applications will be approved by the City Administrator/Clerk for those cases whereby the original conditions for qualifications remain substantially unchanged.
(1) If the City Council grants the deferment, the City Administrator/Clerk shall notify the County Auditor who shall in accordance with M.S. § 435.194, record a notice of the deferment with the County Recorder setting forth the amount of assessment.
(2) Interest shall be charged on any assessment deferred pursuant to this section at a rate equal to the rate charged on other assessments for the particular public improvement projects the assessment is financing. If the City Council grants an assessment deferral to an applicant, the interest may also be deferred, or the interest may be due and payable on a yearly basis up until the assessment period terminates and only the principal is deferred. The decision as to whether the principal and interest or just the principal is deferred is decided by the City Council when considering the application.
Subd. 4. Conditions of hardship.
a. Any applicant must be 65 years of age, or older, or retired by reason of permanent or total disability and must own a legal or equitable interest in the property applied for which must be the homestead of the applicant; or
b. The annual gross income of the applicant shall not be in excess of the criteria for determining low income as set by the Hennepin County CDBG Program income limits for very low income and family size. Income specified in the application should be the income of the year proceeding the year in which the application is made, or the average income of the three years prior to the year in which the application is made, whichever is less; and
c. Permanent and/or total disability shall be determined by using the criteria established for “permanent and total disability” for Workman’s Compensation and the Social Security Administration.
Subd. 5. Policies. The City Council shall establish and may from time to time modify policies pertaining for the fair, equitable and consistent allocation of the cost of water improvements. The policies may relate to factors for determining economic feasibility, fees and charges for connecting to the system and the additional matters as the Council shall determine appropriate in its reasonable discretion.
(Ord. 395, passed 7-28-2003)