THE CITY OF FIFTY LAKES

       PUBLIC IMPROVEMENTS AND ROADWAY ASSESSMENT

            Section 1.0 Introduction. Any road improvement project to be assessed will be processed under Minnesota Statutes, Chapter 429, Local Improvements, Special Assessment and within the procedures outlined in this Section.

Section 1.1 Initiation of an Improvement Project.

            Subd. 1. A project may be initiated under this Section by a properly signed written petition by the majority of fee ownership of the front footage adjacent to the road proposed to be improved. A 3/5ths majority vote of the City Council is required to commence the project. When petition is presented to the Council, the Council shall, by resolution, determine whether or not the petition has been signed by the required percentage of owners of property affected thereby.  

            Subd. 2. The City can order a project on its own initiative: a 4/5ths majority vote of the Council is required to initiate proceedings.

            Subd. 3. Whenever all owners of real property abutting upon any street named as the location of any improvements shall petition the Council to construct the improvement and to access the entire cost against their property, the Council may, without a public hearting, adopt a resolution determining such fact and ordering the improvement.

            Subd. 4. When fee owners of a private road want to make the road public, a petition signed by 3/5ths of the benefiting property owners adjacent to the road proposed to be improved will be required. If project is preliminarily approved by 3/5ths vote of the Council, the initiator must comply with the Master Road Policy C-3, II.

            Section 1.2 Properties to be Assessed. Before a resolution can be adopted ordering an improvement at a public hearing, the City Council must have, on all properties to be assessed, a feasibility study produced by the City engineer or some other competent person as directed by the Council. Benefiting property owners may include properties not abutting the subject road.

            Section 1.3 Schedule of Assessment. Necessary public meetings will be scheduled to allow the City Clerk to certify the assessments to the County Auditor to be payable in the next year. This generally requires that the City Council adopt the assessment roll no later than October 15^th.    

            Section 1.4 Costs to be Assessed.

A.     Regarding Section 1.1, Subdivision 3, 100% of all costs will be assessed tot he benefiting property owners.

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            B. Regarding Section 1.1, Subdivision 4 - To the extent that benefiting property owners do not pay their assessment costs up front in full (see Master Road policy c-3, II. D), the City will facilitate a bonding program assessed to each property owner.

            C. Regarding Section 1.1, Subdivision 1 & 2 - The costs of a road improvement project will include a feasibility study. If project is not ordered, the City is liable for feasibility study costs. Completed project costs consist of, but are not limited to: feasibility study, construction, administrative, advertising, engineering, easement acquisition, assessment rolls, legal fees, financing and other costs. A portion of the cost of the improvements may be borne by the City General Fund, or other funds set aside for road improvements, and a portion assessed as follows:

            Subd. 1 Currently Maintained Bituminous Roads

a.)    Cost of crack filling, seal coating and overlays will be paid by the City.

b.)     Other improvements to bituminous roads such as road reconstruction will be with 70% of the cost to benefiting property owners and 30% paid by the City. All roads must be brought up to City standards, unless City Council with a 3/5ths vote (see section 1.1, Subd. 1) or a 4/5ths (see section 1.1, Subd. 2) majority vote determines otherwise.

Subd. 2 Currently Maintained Gravel and Sand Roads.

a.)    Cost of normal maintenance will be paid by the City. Normal maintenance would consist of, but not limited to: grading, addition of Class V or Chloride.

b.)    Cost of all improvements, including wetland mitigation, property and/or easement acquisition, drainage, erosion control measures, widening, clearing, reconstruction, grading and graveling will be with 70% of cost assessed to benefiting property owners and 30% paid by the City. The cost assessed with the safety modification portion of the larger modification will be he City’s financial responsibility while any other improvements of safety such as for example gravel to asphalt shall follow the assessment ratio.

When these roads are to be paved, the cost will be with 70% of cost

assessed to benefiting property owners and 30% paid by the City. To achieve        parity for owner’s portion, the assessment may be portioned with consideration given, but not limited to each parcel tax I.D., current and future buildable lots and lineal footage. All roads must be brought up to City standards, unless City Council with a 3/5^ths vote (see Section 1.1, Subd. 1) or a 4/5ths (see Section 1.1, Subd. 2) majority vote determines otherwise.

            Section 1.5 Assessment Period. Assessment shall normally be spread over a period equal in length to the life of the bonds used to finance the project. If the project is financed by the City without the issuance of bonds, the period of payment is set by the City Council, usually ranging from 5 to 7 years. City to consider recommendations by bonding authority.  

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            Section 1.6. Interest Rate. The applicable interest rate will be set by the City Council and will normally be prorated interest at a minimum annual rate of one percent (1.0%) above the net effective rate the City pays for financing of improvement bonds for the project date at the date of bond sale. No interest will be charged if the entire amount of the assessment to an individual property owner is paid within thirty (30) days of the assessment roll being adopted by the City Council. If it is not a bonded project, then the City will determine the interest rate.    

            Section 1.7. Definitions.

            Subd. 1. Residential Property - shall be single family residential use only.

Subd. 2. Commercial Property - shall be all uses other than single family residential (i.e. commercial, multi-family, and industrial, use zoning only).

            Subd. 3. Front Footage - shall be considered that length of a beneficial property, determined by the City, upon which assessment shall be based.

            Subd. 4. Equivalent Lots - shall consist of platted or metes and bounds lots which cannot be further sub-divided into more building sites based on current zoning. 

            Subd. 5. Driveways - provide access tot City Street right of way, City Street, or Public Street, and are normally located on private property, unaccepted road easement, or unrecorded road easement.

            Section 1.8. Procedures for Allocating Assessments. The City will determine which one of the following methods shall be applied to the road improvement project.

Subd. 1. Equivalent Lot Basis.

A. Residential Property. Generally, assessments will be on an equivalent lot basis comprised of platted lots and/or metes and bounds lots which cannot be further subdivided. An undeveloped, splitable property may be assigned a number of equivalent lots based upon potential division of lots.

B. Residential Offstreet. Single lots or clusters of lots not having normal frontage on a street but gaining individual driveway or group driveway access to a street will be allocated one (1) equivalent lot for each single family residence.

C. Commercial Property. Generally, assessments will be on a front foot basis unless the Council has selected and equivalent lot basis for the project assessment determination.

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D. Commercial Extra Costs. Extra improvement and/or right of way benefiting properties will be assessed only against the commercial property. One hundred percent (100%) of the costs of the extra improvements shall be divided by the number of equivalent commercial lots. 

Subd. 2. Determination of Equivalent Lots. The following criteria may be used to determine an equivalent lot.

            A. Any lot with an existing structure receives one equivalent lot assessment.

B. Any vacant platted lot or vacant metes and bounds parcel that meets the minimum lot requirements of the Zoning Ordinances shall receive one equivalent lot assessment.

C. Land that has the possibility of being subdivided may receive one equivalent lot assessment for each potential subdivided lot that meets the minimum requirements of the Zoning Ordinances. 

D. Each individual unit in a cooperative or townhouse development may receive an equivalent lot assessment.

E. A guest cabin and principal structure on one lot that cannot be subdivided due to structure locations shall receive one equivalent lot assessment.

F. Property and structure combinations that do not fall within the above criteria will be reviewed by the City Zoning Administrator and the City Council. Typically, an equivalent lot will be determined by the City Planning and Zoning Administrator, with the City Council making the final decision.

G. If a corner lot is located where one of the abutting roads has been previously blacktopped, prior to the adoption of this ordinance, the property owner is assessed one equivalent lot. If a lot is a double frontage lot, it will be assessed as either one-half or one equivalent lot, as recommended by City staff with consideration to factors such as access, address and other circumstances specific to the property.  

H. If a property owner has two or more equivalent lots and the foundation of the principal dwelling is located on both or all of the lots. It is considered one equivalent lot.

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I. If a corner lot is located where both abutting roads have not be previously blacktopped, prior to the adoption of this ordinance, August 17, 2004, it is assumed that when improvements are made, the first improvement will receive one equivalent lot assessment and the second improvement will receive one half equivalent lot assessment. 

            J. A lot will be considered a corner lot if it abuts an intersection of roadways.

K. When considering assessments, the topography of a property may be taken into consideration. Bluffs and wetlands may affect the suitability of subdividing and building.

Subd. 3. Front Footage Basis.

A. Corner Lot - Corner lots 200 feet or less in depth will normally be assessed for the front, not the side or rear.

            B. Front Lot - The shortest side of a platted or metes and bounds lot.

C. Side Lot - The longest side of a platted or metes and bounds lot.

            D. Unplatted Property - Footage bordering the Road. 

Subd. 4. Determination of Front Footage. In many cases, the front footage of a lot is not immediately apparent. Therefore, it is necessary to determine an equivalent front footage which will maintain an equitable distribution of costs. The following rules will be used to determine an equivalent front footage:

A. On all lots of a generally rectangular shape - straight front footage shall be used.       

B. On cul-de-sacs, sharply curved streets, and irregular shaped lots - front footage shall be measured at the normal house setback line.

C. On "pie shaped lots" and irregular shaped lots where other rules do not apply - equivalent front footage shall be calculated by dividing the square footage of the lot by the general lot depth of the subdivision.      

D. On combination of rectangular and pie shaped and/or irregular shaped lot - equivalent front footage will be determined of straight front footage plus the remainder in accordance with applicable rules.

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E. A minimum front footage may be set for all lots to be no less than the nominal front footage for the project area.

Subd. 5. Refer to appendix “A” for examples of application drawings.

Section 1.9. Deferral of Special Assessments for Senior Citizens and Retried Disabled Homeowners.

Subd. 1 Deferral Assessment.  The City Council may defer the payment of any special assessment for local improvements constructed by the City within the City of Fifty Lakes when, in the Councils discretion, it determines by a three fourths vote of the City Council that the property upon which said assessment is to be levied is occupied as a homestead by one or more owners of the  property who is 65 years of age or older, or retired by reason or permanent and total disability when payment of the assessment would create a hardship upon the owners thereof. 

Subd. 2. Filing for Deferred Status. An applicant must file an application for deferred status within 30 days of the adoption of the final assessment roll or by September 15 of the year preceding the year for which deferral is requested, whichever is later, in order to be eligible for the deferral program in the succeeding year. All deferral applications must be made on forms approved by the City Council and submitted to the City of Fifty Lakes clerk.

Subd. 3. Criteria for Determining Whether Applicant is Retired by Reason of Permanent and Total Disability. Retirement by reason of permanent and total disability shall be deemed prima facie to exist when the applicant presents a sworn affidavit by a licensed medical doctor attesting that the applicant is unable to be gainfully employed because of a permanent and total disability.

Subd. 4. Criteria for Determining Hardship. A deferment may not be granted unless it would be a hardship for the applicant to make payments. Irrespective of whether the applicant is applying because  (a) the applicant is 65 years of age or older or (b) the applicant is retired by reason of permanent and total disability a hardship shall be deemed prima facie to exist when all the following apply:

A. The annual gross income and the applicant's spouse, if any, according to their federal income tax return for the preceding year plus their tax exempt income for the preceding year can not exceed  the amount equal to 200% of the most current federal poverty guidelines and schedule for family size, for Crow Wing County. If no such return was made, the City Council shall require the applicant to submit other pertinent information to show that this qualification is met.

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B. The special assessment to be deferred exceeds $1,000.00.

C. Notwithstanding the foregoing, the City Council may determine that a hardship exists on the basis of exceptional and unusual circumstances pertaining to an applicant not caused by the above standards; but any determination shall be made in a nondiscriminatory manner and shall not give the applicant an unreasonable preference or advantage over other applicants.  

Subd. 5. Interest on Deferred Assessment. All deferred special assessments granted under this section shall accrue interest on the principal amount at the same rate established for the assessment, as if no deferment was granted. Said interest shall be due and payable upon termination of deferred status.

Subd. 6. Termination of Deferred Payment. Deferrals granted hereunder shall terminate and the amount deferred, together with accumulated interest, shall become due upon the occurrence of any of the following events:

A. The death of the owner qualified for deferral status, provided that the surviving spouse is otherwise not eligible for the deferred benefits provided hereunder.

B. The sale, transfer or subdivision of the property or any part thereof, including sale by contract for deed.

C. If the property should for any reason lose its status as the homestead of the applicant.

D. If for any reason the City Council shall determine that there would be no hardship to require immediate or a partial payment of the deferred assessment.

E. At the time of the termination of the deferred status, the City Council may, in its discretion, provide for payment of said deferred sum in installment payments in accordance with the terms of the original assessment.

Section 1.10. Repeal. This ordinance shall repeal all ordinances or sections of the City Code inconsistent herewith.

                                                             7                      Adopted 8-17-2004