Special Assessments

What are special assessments?
Special assessments are charges to a specific property for a specific improvement performed by the city. Special assessments finance the improvement by charging the benefiting property owner for the cost of the project. The authority to levy special assessments is granted under MN Statute, Chapter 429.

What improvements can be paid for with special assessments?
Special assessments may be used to finance many types of local improvements including but not limited to:

Street and sidewalk improvements
Nuisance abatement
Storm and sanitary sewer systems
Dikes & flood control works
Street lights
Retaining walls and area walls
Water works systems
Pedestrian skyway systems
Parks, playgrounds and recreational facilities
Planting, maintenance and trimming of trees
Public malls, plazas & courtyards
Underground pedestrian courses
Highway sound barriers
District heating systems

Can special assessments be used to cover service charges?
Cities may use special assessments to recover the cost of the following service charges if the city has adopted an ordinance to provide for it:.

Snow, ice and rubbish removal from sidewalks
Street lighting, sprinkling and dust treatment
Weed elimination from streets and private property
Trimming and care of trees and removal of unsound trees
Elimination of public health hazards from private property
Repair of sidewalks and alleys
Unpaid sewer and water bills

What is the procedure for ordering an improvement for special assessment?
The following is a summary of the procedure for ordering the special assessment improvement:

Initiation of the order for the improvement.

The order for the improvement may be initiated by the City Council or by a petition from affected property owners.

Preparation of a feasibility report on the improvement.

The City Engineer (or other qualified person) must prepare a report on the proposed improvement. The report must include the estimated cost of the proposed improvement, whether it is necessary, if it’s cost effective and if it is feasible.

Notice of the public hearing on the improvement.

A public hearing must be held on the proposed improvement. The City must publish a notice of the public hearing to consider the proposed improvement. It must be published twice with the notices appearing at least one week apart. At least three days must elapse between the last publication and the date of the hearing. The City must also mail a notice to each property owner in the proposed assessment area at least 10 days prior to the hearing.

Public hearing on the improvement.

At the public hearing, interested people will have an opportunity to voice their concerns, whether or not they are in the proposed assessment area. When a petition signed by 100 percent of the landowners requests the improvement, the City Council may order the improvement without a hearing.

Ordering the improvement and the preparation of the plans.

If the City Council began proceedings because of a petition signed by the owners of property that comprise at least 35 percent of the property frontage abutting the improvement, the City Council can approve a resolution to order the improvement with a majority vote. However, if the City Council initiated the proceedings, a four-fifths majority vote of the City Council is needed to pass the resolution. After the resolution is approved, the City Engineer will preparer the necessary plans and specifications. The City Council will decide how the improvement will be done, and if necessary, issue a call for bids.

How is a special assessment levied?
The procedure for levying a special assessment consists of:

Preparation of the Proposed Assessment Roll.

The City Clerk and the Engineer (or some other qualified person) must calculate the proper amount to be specially assessed against each property that will benefit from the improvement. The proposed assessment roll must be available for public inspection in the City Clerk’s office.

Notice of the public hearing on the proposed assessment.

Notice of the hearing must appear at least once in the city newspaper not less than two weeks prior to the hearing. The notice must contain the following information:

· Place, time and date of the hearing

· Overall project description

· Area to be assessed

· Description of appeals procedure

· Deferment options

The City must also mail notice of the hearing to each affected property owner at least two weeks prior to the hearing date. The mailed notice must contain the following:

· Amount of the assessment for the individual parcel

· Prepayment information

· Interest rate on the assessments

· That the adoption of the proposed assessment may be made by the Council at the public hearing

Public Hearing on the proposed assessment.

The purpose of this hearing is to give affected property owners an opportunity to express their concerns on the actual special assessment levy.

Approval and certification of the roll.

After the public hearing, if an assessment is adopted, the City Council must approve the assessment roll in its final form so the Clerk can certify it to the County Auditor. If the adopted assessment amount, interest rate or prepayment requirements differ from those contained in the notice, the Clerk must mail the property owner notice of the changes.

If requirements differ from those contained in the notice, the Clerk must mail the property owner notice of the changes.

Issuance of obligations to finance the improvement.

Most cities use one of three types of bonds to finance special assessments; improvement bonds, improvement warrants or temporary improvement bonds. See the 1996 Local Improvement Guide (LMC 515AI A.3) and Municipal Borrowing for Capital Needs (LMC215D 1.9) for further information.

Levying and collecting assessments.

The Clerk must certify the assessments to the County Auditor. This may be done either by certifying the entire assessment roll all at once or by certifying each yearly amount annually.

How do I pay my special assessment once its levied?

For NEW levies, a full prepayment or minimum partial prepayment* of 25 percent must be received prior to the close of business on Nov. 29.

Existing levies must be prepaid in full by the close of business on Nov 15.

Levies, new or existing, not paid in full by these dates will have a payment amount plus interest and possible service fee roll into the next year’s taxes.

*When choosing to partially prepay a minimum of 25 percent on a NEW levy, a payment based on the new balance, plus interest and service charges will still be payable in the next year’s taxes.

If Nov. 15 (Existing levies) and 29 (New levies) fall on a weekend, payments are due by the close of business the last working day prior to each respective deadline.

All prepayments should be paid to the City of Edina, Assessor’s Office.

For more information, contact the Assessor’s office at 952-826-0365.