2014.07.10 Work Session PacketCITY , of
CRYSTAL
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.eiystalmn.gov
CRYSTAL CITY COUNCIL
WORK SESSION AGENDA
Thursday July 10, 2014
7:00 p.m.
Conference Room A
Posted: July 3, 2014
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City
Charter, the work session of the Crystal City Council was held at p.m. on Thursday, July
10, 2014 in Conference Room A located at 4141 Douglas Drive, Crystal, Minnesota.
I. Attendance
Council members
Adams
Budziszewski
Deshler
Hoffmann
Libby
Peak
Selton
Staff
Norris
Therres
Hansen
Mathisen
Peters
Norton
II. Agenda
The purpose of the work session is to discuss the following agenda items:
• Financing mill and overlay projects
• Replenishing Major Building Replacement Fund
III. Adjournment
The work session adjourned at p.m.
Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763)
531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
CSD
Memorandum
CRYSTAL
DATE: July 8, 2014
TO: Mayor and City Council
FROM: Anne Norris, City Manager
Charles Hansen, Finance Director
SUBJECT: Financing Mill and Overlay Projects
Phase 1 (Winnetka Hills neighborhood) of the Street Reconstruction Program was
completed in 1997. Milling and overlays are required to maintain the reconstructed
streets in good condition as long as possible. Council Resolution #2010-48 outlines a
policy of specially assessing mill and overlay projects.
At recent work sessions, the Council discussed increasing the tax levy to pay for mill
and overlay projects rather than using special assessments. The cost of the Phase 1
mill and overlay project is approximately $1 million.
At its July 1 work session, the Council requested additional information showing:
- The three options included in the July 1 work session packet with additional
information on what the tax levies and special assessments will look like in
future years allowing for inflation;
- What assessments for seal coat projects would look like over time (Schedule
D);
Schedule A — Assess 100% of Mill and Overlav Protects to benefited properties:
Schedule Al. This is the financial overview of the Street Maintenance Fund under
the 100% assessment model as it was presented at the July 1 work session.
Schedule A2. This shows how the assessment per house assessment will
increase over time using a steady 3% annual increase in construction costs. The
assessment per house starts out at $2,000 for the 2014 project and gradually increases
to $2,864 for the 2027 project. Annual principal and interest payments for the ten year
term of the assessment are also shown. After a property owner has paid off the special
assessment, there presumably will be ten years without a mill & overlay assessment.
However, there most likely will be a smaller assessment for a seal coat project.
Schedule B — Levy 100% of Mill and Overlay Projects to the Property Tax:
Schedule B1. This is the financial overview of the Street Maintenance Fund under
the 100% property tax levy model as it was presented at the July 1 work session.
Schedule B2. This shows the additional property tax levy and the impact it will
have on the median value home. This is $66.57 in 2015. Higher value homes will have
a larger property tax increase and lower value homes will have a smaller property tax
increase than the median home.
Every property will pay the increased tax every year even if a mill & overlay project isn't
being done on their street and may not be done until many years in the future.
Inflation is included in the project costs shown on the right side of Schedule 131. There
are variations in the pace and size of projects. Sometimes there is one every year for
several years in a row and then no project for several years.
There are also variations in the collection of other revenues such as MSA
reimbursements and seal coat special assessments. The tax levy fills the gap between
project costs and the other revenues. The tax levy doesn't increase with inflation since
it fills the gap between project costs and the other revenues.
Schedule C — Special assess 60% of the Mill and Overlay projects and Levy 40% to the
Property Tax
Schedule C1. This is the financial overview of the Street Maintenance Fund under
the 60% special assessment and 40% property tax levy model as it was presented at
the July 1 work session.
Schedule C2. This shows how the assessment per house will increase over time
using a steady 3% annual increase in construction costs. The assessment per house
starts out at $1,200 for the 2014 project and gradually increases to $1,762 for the 2027
project. Annual principal and interest payments for the ten year term of the assessment
are also shown. After a property owner has paid off the special assessment, there
presumably will be ten years without a mill & overlay assessment. However, there most
likely will be a smaller assessment for a seal coat project. A term of less than ten years
could be considered since the special assessment is $1,200 rather than $2,000.
Schedule C3. This shows the additional property tax levy and the impact it will
have on the median value home. This is $53.26 in 2015. Higher value homes will have
a larger property tax increase and lower value homes will have a smaller property tax
increase than the median home. The property tax levy may only be needed for three
years since there is less of a cash flow problem with only 60% of the cost being
assessed rather than 100% of the costs. This assumes that MSA reimbursements and
investment earnings will take the place of the property tax. Every property will pay the
increased tax every year even if a mill & overlay isn't being done on their street and may
not be done until many years in the future.
Schedule D —Assess 100% of Seal Coat Projects to benefited properties:
This shows how the assessment per house will increase over time using a steady 3%
annual increase in construction costs. The assessment per house starts out at $255 for
the 2014 project and gradually increases to $374 for the 2027 project. Annual principal
and interest payments for the three year term of the assessment are also shown. We
didn't attempt to shown which street phase would receive a seal coat in any given year.
Rebates for overlapping reconstruction and mill/overlay assessments
At the June 3 work session, there was discussion regarding some sort of "rebate" for
property owners still paying special assessments for a street reconstruction project if
mill and overlays are paid for with a general tax levy. This would be very challenging to
administer and the City Attorney is researching whether it is possible.
If this year's mill and overlay project is to proceed this year, the Council needs to either
reaffirm the policy outlined in Resolution #2010-48 or establish a different form of
financing so the bids can be awarded for this year's project at the July 15 meeting: The
notice to residents regarding the June 17 public hearing on the Phase 1 mill and overlay
project assumed the use of special assessments. A typical assessment would be
approximately $2,000 paid over 10 years.
Attach: Schedules A, B, C and D
Resolution #2010-48
SCHEDULE Al
CITY OF CRYSTAL
STREET MAINTENANCE FUND ANALYSIS
Assess 100% of mill & overlay costs to benefited properties
Assessments will
pay off over 10 years
and 5% interest will
be charged. Street Maintenance fund will pay
for the third seal coat since there will still be 3 years to
pay on the mill & overlay assessment.
Assumes 20% of properties prepay special assessments.
Overlay
Sealcoat
Other
Business Unit 5865
5867
Business Unit 5866
Ending
Gen FD
Special
Special
City
Invest
First Sealcoat Second Sealcoat
Third Sealcoat
Patch
Mill & Overlay
Fund
Year
Contrib.
Assmt.
Assmt.
M.S.A.
Reimb.
Earnings
Phase Costs Phase
Costs
Phase
Costs
Ph 1 -3
Phase
Costs
Balance
2010
65,300
53,460
272,773
55,419
1
101,366
36th Ave
752,012
1,989,992
2011
167,250
34,992
9,425
47,107
2&3
289,528
8,738
36th Ave
41,862
1,908,638
2012
69,300
37,387
23,159
6 158,450
7,025
36th Ave
84
1,872,925
2013
71,400
45,904
20,726
3,815
7 114,355
45,626
79
1,854,710
2014
72,800
213,422
0
46,938
18,547
8 156,389 4
120,717
40,000
1
962,228
927,083
2015
74,300
404,362
0
116,837
9,271
40,000
2
1,269,680
222,172
2016
76,529
340,406
18,590
3,333
9 158,042 5
92,948
20,000
3
1,365,526
-975,486
2017
78,825
485,632
45,359
-19,510
10 226,399
4
903,402
-1,514,982
2018
81,190
416,717
35,469
528,000
-37,875
-491,481
2019
83,625
371,558
39,039
97,788
-14,744
11 124,064 6
195,193
-233,473
2020
86,134
481,794
119,176
304,178
-7,004
12 184,011 7
119,607
5
760,000
-312,814
2021
88,718
412,736
171,322
361,025
-9,384
8
192,339
1
336,945
182,318
2022
91,380
364,360
139,504
318,428
151,127
5,470
13 195,940
2
409,956
646,689
2023
94,121
319,255
112,271
61,937
19,401
9
194,371
3
456,512
602,791
2024
96,945
274,310
150,542
18,084
14 191,381 10
278,443
4
324,466
348,381
2025
99,853
515,156
210,052
221,992
8,122
10,451
6
1,597,257
-183,251
2026
102,849
539,395
136,770
337,400
153,364
-5,498
15 202,223 11
152,582
7
978,740
-252,515
2027
105,934
753,624
119,722
287,208
109,139
-7,575
12
226,310
5
513,808
8
1,573,902
-1,198,483
2028
109,112
608,262
168,665
-35,954
16 242,596
-590,995
2029
112,385
840,372
134,556
164,538
97,504
-17,730
13
240,982
9
1,590,531
-1,090,883
2030
115,757
1,125,405
117,599
527,252
235,380
-32,727
10
2,278,482
-1,280,698
2031
119,230
934,102
139,034
-38,421
14
235,375
-362,128
2032
122,807
1,065,502
114,863
0
76,579
-10,864
6
571,838
11
1,248,575
-813,655
2033
126,491
1,259,958
596,719
168,042
-24,410
15
248,708
7
323,771
12
1,851,887
-1,111,221
2034
130,285
1,463,205
480,393
21,194
-33,337
8
545,327
13
1,914,508
-1,509,315
2035
134,194
1,583,407
338,359
170,999
-45,279
16
298,363
14
1,815,497
-1,441,496
2036
138,220
1,306,215
-43,245
9
553,383
-593,689
2037
142,366
1,501,242
358,965
-17,811
10
775,563
15
1,918,341
-1,302,831
2038
146,637
1,661,166
270,343
99,391
-39,085
16
2,234,308
-1,398,686
2039
151,037
1,424,613
-41,961
11
434,402
-299,399
2040
1,192,139
-8,982
12
634,532
249,227
2041
969,675
7,4771
1
13
683,3621
1
543,017
5,154,852
22,999,731
1,972,531
5,254,525
1,762,826
412,1011
2,244,5621
2,986,8331
6,563,865
161,389
25,056,901
Total assessment
per home
Payments by year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
SCHEDULE A2
CITY OF CRYSTAL
STREET MAINTENANCE FUND ANALYSIS
Assess 100% of mill & overlay costs to benefited properties with 5% interest
Construction costs are assumed to increase 3% per year
Mill & overlay constructed and special assessment levied in year:
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
2,000
2,060
2,122
2,186
2,320
2,700
2,781
2,864
300
290
303
280
299
318
270
288
307
328
260
278
297
317
250
268
286
306
240
257
276
295
348
230
247
265
284
336
220
237
254
274
325
210
227
244
263
313
216
233
252
302
223
241
290
405
230
278
392
417
267
378
403
429
255
364
389
415
244
351
375
400
337
361
386
324
348
372
311
334
358
297
320
343
284
306
329
292
315
300
Total payments 2,550 2,620 2,703 2,790 0 0 2,958 0 0 0 0 3,443 3,545 3,647
SCHEDULE B1
CITY OF CRYSTAL
STREET MAINTENANCE FUND ANALYSIS
Levy 100%
of the mill & ovelay costs to the property tax
Second and third
seal coat assessments will pay off over 3 years and
5% interest will be charged.
Assumes 20%
of properties will prepay special assessments.
Property
Sealcoat
Other
Business Unit 5865
5867
Business Unit 5866
Ending
Gen FD
Tax
Special
City
Invest
First Sealcoat
Second Sealcoat
Third Sealcoat
Patch
Mill & Overlay
Fund
Year
Contrib.
Lem
Assmt.
M.S.A.
Reimb.
Earnings
Phase Costs
Phase
Costs
Phase
Costs
Ph 1 -3
Phase
Costs
Balance
2010
65,300
272,773
55,419
1
101,366
36th Ave
752,012
1,936,532
2011
167,250
9,425
47,107
2&3
289,528
8,738
36th Ave
41,862
1,820,186
2012
69,300
23,159
6 158,450
7,025
36th Ave
84
1,747,086
2013
71,400
20,726
3,815
7 114,355
45,626
79
1,682,967
2014
72,800
46,938
16,830
8 156,389
4
120,717
40,000
1
962,228
540,201
2015
74,300
1,000,000
116,837
5,402
40,000
2
1,269,680
427,059
2016
76,529
1,100,000
18,590
6,406
9 158,042
5
92,948
20,000
3
1,365,526
-7,932
2017
78,825
1,050,000
44,615
-159
10 226,399
4
903,402
35,548
2018
250,000
35,134
528,000
889
849,571
2019
250,000
39,039
97,788
25,487
11 124,064
6
195,193
942,628
2020
250,000
117,614
304,178
28,279
12 184,011
7
119,607
5
716,927
622,153
2021
250,000
237,051
361,025
18,665
8
192,339
1
336,945
959,610
2022
250,000
381,259
318,428
151,127
28,788
13 195,940
2
409,956
1,483,315
2023
250,000
527,025
61,937
44,499
9
194,371
3
456,512
1,715,893
2024
250,000
587,969
51,477
14 191,381
10
278,443
4
324,466
1,811,050
2025
250,000
535,430
221,992
8,122
54,331
6
1,597,257
1,283,667
2026
250,000
258,416
337,400
153,364
38,510
15 202,223
11
152,582
7
978,740
987,813
2027
750,000
118,502
287,208
109,139
29,634
12
226,310
5
513,808
8
1,573,902
-31,725
2028
750,000
166,305
-952
16 242,596
641,032
2029
1,000,000
133,742
164,538
97,504
19,231
13
240,982
9
1,590,531
224,533
2030
1,000,000
115,671
527,252
235,380
6,736
10
2,278,482
-168,909
2031
900,000
138,166
-5,067
14
235,375
628,815
2032
1,000,000
227,348
0
76,579
18,864
6
571,838
11
1,248,575
131,193
2033
1,200,000
339,237
596,719
168,042
3,936
15
248,708
7
323,771
12
1,851,887
14,760
2034
1,200,000
480,630
480,393
21,194
443
8
545,327
13
1,914,508
-262,414
2035
1,200,000
384,142
338,359
170,999
-7,872
16
298,363
14
1,815,497
-290,647
2036
1,200,000
316,810
-8,719
9
553,383
664,061
2037
1,200,000
265,624
358,965
19,922
10
775,563
15
1,918,341
-185,332
2038
1,400,000
364,291
270,343
99,391
-5,560
16
2,234,308
-291,174
2039
200,000
459,150
-8,735
11
434,402
-75,161
2040
100,000
628,582
-2,255
12
634,532
16,635
2041
100,000
605,451
4991
1
1 13
683,3621
1
39,223
2,675,582
18,600,000
7,525,795 5,254,525
1,762,826
1,190,972
2,244,562
2,986,8331
6,563,865
161,389
25,013,828
SCHEDULE B2
CITY OF CRYSTAL
STREET MAINTENANCE FUND ANALYSIS
Levy 100% of the mill & ovelay costs to the property tax
Construction costs are assumed to increase 3% per year
Percent
Dollar
Increase
Increase
over
on
Tax
9,009,153
599.76
Levy
levy
levy
2015
1,000,000
11.10%
66.57
2016
1,100,000
12.21%
73.23
2017
1,050,000
11.65%
69.90
2018
250,000
2.77%
16.64
2019
250,000
2.77%
16.64
2020
250,000
2.77%
16.64
2021
250,000
2.77%
16.64
2022
250,000
2.77%
16.64
2023
250,000
2.77%
16.64
2024
250,000
2.77%
16.64
2025
250,000
2.77%
16.64
2026
250,000
2.77%
16.64
2027
750,000
8.32%
49.93
2028
750,000
8.32%
49.93
2029
1,000,000
11.10%
66.57
2030
1,000,000
11.10%
66.57
2031
900,000
9.99%
59.92
2032
1,000,000
11.10%
66.57
2033
1,200,000
13.32%
79.89
2034
1,200,000
13.32%
79.89
2035
1,200,000
13.32%
79.89
2036
1,200,000
13.32%
79.89
2037
1,200,000
13.32%
79.89
2038
1,400,000
15.54%
93.20
2039
200,000
2.22%
13.31
2040
100,000
1.11%
6.66
SCHEDULE C1
CITY OF CRYSTAL
STREET MAINTENANCE FUND ANALYSIS
Special
assess
60% of the mill and overlay costs.
Levy 40% to the property
tax.
Mill & overlay assessment will pay off over 5 years and 5% interest will
be charged. Second and third seal coat assessments will pay
off over
3 years and
5% interest will be
charged. Assumes 20% of properties will prepay special assessments.
MSA will pay for mill & overlay of MSA streets. The
combination of a
property tax levy, MSA
reimbursement and other city reimbursement
will cover the 40% of mill
& overlay costs that are not assessed.
Property Overlay
Sealcoat
Other
Business Unit 5865
5867
Business Unit 5866
Ending
Gen FD
Tax Special
Special
City
Invest First Sealcoat
Second Sealcoat
Third Sealcoat
Patch
Mill & Overlay
Fund
Year
Contrib.
Levy Assmt.
Assmt.
M.S.A.
Reimb.
Earnings Phase Costs
Phase Costs
Phase
Costs
Ph 1 -3
Phase
Costs
Balance
2010
65,300
53,460
272,773
55,419
1 101,366
36th Ave
752,012
1,936,532
2011
167,250
34,992
9,425
47,107
283 289,528
8,738
36th Ave
41,862
1,820,186
2012
69,300
37,387
23,159 6 158,450
7,025
36th Ave
84
1,747,086
2013
71,400
45,904
20,726
3,815 7 114,355
45,626
79
1,682,967
2014
72,800
144,731
46,938
16,830 8 156,389
4 120,717
40,000
1
1,000,000
502,429
2015
74,300
800,000 302,967
116,837
5,024
40,000
2
1,270,000
491,557
2016
76,529
800,000 310,698
18,590
7,373 9 158,042
5 92,948
20,000
3
1,365,000
68,757
2017
78,825
600,000 379,710
44,615
1,375 10 226,399
4
903,000
43,882
2018
364,415
35,134
528,000
1,097
972,529
2019
308,673
39,039
97,788
29,176 11 124,064
6 195,193
1,127,947
2020
198,642
117,614
304,178
33,838 12 184,011
7 119,607
5
760,000
718,601
2021
97,678
237,051
361,025
21,558
8 192,339
1
336,945
1,243,574
2022
169,247
381,259
318,428
151,127
37,307 13 195,940
2
409,956
2,105,002
2023
119,563
527,025
61,937
63,150
9 194,371
3
456,512
2,682,306
2024
104,349
587,969
80,469 14 191,381
10 278,443
4
324,466
2,985,269
2025
280,405
535,430
221,992
8,122
89,558
6
1,597,257
2,523,519
2026
398,743
258,416
337,400
153,364
75,706 15 202,223
11 152,582
7
978,740
2,413,602
2027
550,661
118,502
287,208
109,139
72,408
12 226,310
5
513,808
8
1,573,902
1,751,308
2028
488,457
166,305
52,539 16 242,596
2,216,013
2029
602,025
133,742
164,538
97,504
66,480
13 240,982
9
1,590,531
1,448,789
2030
813,763
115,671
527,252
235,380
43,464
10
2,278,482
905,837
2031
679,507
138,166
27,175
14 235,375
1,515,311
2032
668,661
227,348
76,579
45,459
6
571,838
11
1,248,575
1,284,783
2033
733,145
339,237
596,719
168,042
38,543
15 248,708
7
323,771
12
1,851,887
1,059,874
2034
917,469
480,630
480,393
21,194
31,796
8
545,327
13
1,914,508
1,076,849
2035
960,141
384,142
338,359
170,999
32,305
16 298,363
14
1,815,497
848,936
2036
768,518
316,810
25,468
9
553,383
1,959,733
2037
887,215
265,624
358,965
58,792
10
775,563
15
1,918,341
1,611,988
2038
1,012,182
364,291
270,343
99,391
48,360
16
2,234,308
1,172,247
2039
841,492
459,150
35,167
11
434,402
2,508,056
2040
599,232
628,582
75,242
12
634,532
3,811,112
2041
411,999
605,451
114,333
1 13
683,3621
1
,942,896
2.675.582
2.200.000 14,286.032
7,525,795 5,254,525 1,762,826 2,041,4581
2,244,5621
2,986,8331
6,563,8651
161,3891
25,094,065
Total assessment
per home
Payments by year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
SCHEDULE C2
CITY OF CRYSTAL
STREET MAINTENANCE FUND ANALYSIS
Special assess 60% of the mill and overlay costs. Levy 40% to the property tax.
Construction costs are assumed to increase 3% per year
Mill & overlay constructed and special assessment levied in year:
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
1,200
1,236
1,273
1,311
1,433
1,661
1,711
1,762
180
174
186
168
180
191
162
174
185
197
156
168
178
190
150
161
172
184
144
155
165
177
215
138
149
159
171
208
132
143
146
164
201
126
136
140
157
193
130
133
151
186
223
144
179
249
138
172
241
256
165
232
247
264
157
224
239
255
150
216
231
246
207
222
238
199
213
229
191
205
220
183
196
211
174
188
202
180
194
185
Total payments 1,530 1,582 1,692 1,673 0 0 1,826 0 0 0 0 2,116 2,177 2,244
SCHEDULE C3
CITY OF CRYSTAL
STREET MAINTENANCE FUND ANALYSIS
Special assess 60% of the mill and overlay costs.
Levy 40% to the property tax.
Construction costs are assumed to increase 3% per year
Percent
Dollar
Increase
Increase
over
on
Tax
9,009,153
599.76
Levy
Levy
Levy
2015
800,000
8.88%
53.26
2016
800,000
8.88%
53.26
2017
600,000
6.66%
39.94
2018
0.00%
0.00
2019
0.00%
0.00
2020
0.00%
0.00
2021
0.00%
0.00
2022
0.00%
0.00
2023
0.00%
0.00
2024
0.00%
0.00
2025
0.00%
0.00
2026
0.00%
0.00
2027
0.00%
0.00
2028
0.00%
0.00
2029
0.00%
0.00
2030
0.00%
0.00
2031
0.00%
0.00
2032
0.00%
0.00
2033
0.00%
0.00
2034
0.00%
0.00
2035
0.00%
0.00
2036
0.00%
0.00
2037
0.00%
0.00
2038
0.00%
0.00
2039
0.00%
0.00
2040
0.00%
0.00
Total assessmen
per home
Payments by yea
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
SCHEDULE D
CITY OF CRYSTAL
STREET MAINTENANCE FUND ANALYSIS
Assess 100% of seal coat costs to benefited properties with 5% interest
Construction costs are assumed to increase 3% per year
t
Seal coat applied
and special
assessment levied in
year:
2014
2015
2016
2017
2018
2019
2020 2021 2022
2023
2024
2025
2026
2027
255
263
271
279
287
296
304 314 323
333
343
353
364
374
r
98
97
101
96
100
104
98
102
107
101
106
110
104
109
114
107
112
116
111
115 121
113 119 124
118 122
128
121
126
131
125
130
136
128
134
139
132
127
144
135
142
140
Total payments 291 299 307 317 326 337 344 358 367 379 389 402 401 426
RESOLUTION NO. 2010 — 48
ADOPTING ASSESSMENT POLICIES FOR 2010 36TH AVENUE
AND FUTURE STATE AID AND LOCAL STREET MILL
AND OVERLAY PROJECTS
WHEREAS, due to normal wear and weather related deterioration, it has become
necessary to perform a mill and overlay project on the State Aid Street 36th Avenue in the
year 2010, and it is therefore necessary to develop a funding mechanism for said project,
and it has been determined that a special assessment for a portion of that funding is
appropriate; and
WHEREAS, the City has no previously established assessment policy for mill and
overlay projects, however there are established policies for similar street related projects
as shown in Exhibit A; and
WHEREAS, the affected properties in the 36th Avenue project have not
previously been assessed for street reconstruction other than a minimal amount for curb
and gutter and sidewalks in the early 1990's, yet all properties on the adjoining side
streets have since been assessed for full street reconstruction, and therefore it is desirable
to treat the 36th Avenue properties in a similar fashion; and
WHEREAS, in previous full street reconstruction projects, single family/duplex
properties received an approximate 30% reduction in the assessment by using State Aid,
Storm Drain Utility, and other funding sources, and corner lots abutting 36th Avenue have
previously been assessed in the manner described in Exhibit A; and
WHEREAS, it is desirable to develop a 36th Avenue assessment policy that can be
modified to apply to future State Aid and local street mill and overlay projects.
NOW, THEREFORE, BE IT RESOLVED, by the Crystal City Council:
1) The properties abutting 36th Avenue shall be assessed in a manner similar to a
full street reconstruction project, however such assessment shall be based on
the lower actual cost for said mill and overlay project.
2) 36th Avenue corner single family/duplex properties with driveways on 36th
Avenue shall be assessed at one-half the unit assessment rate because these
properties have previously been assessed one-half a unit street reconstruction
rate.
3) Similarly, 36th Avenue corner single family/duplex properties with driveways
on the side street shall not be assessed for the 36th Avenue project because
these properties have previously been assessed one full unit street
reconstruction rate.
4) Commercial and non-profit properties shall be assessed for the full cost of the
project based on a per front foot unit cost for the entire front footage abutting
the project area.
5) The assessment policy for the 36th Avenue project shall be as described in
Exhibit B.
6) The assessment policy for future mill and overlay projects on State Aid and
local streets shall be as described in Exhibit C.
7) In the future, when it is necessary to either mill and overlay, or reconstruct
portions of 36th Avenue, assessment rates for both commercial and non-profit,
and single family/duplex properties shall be determined based on the most
recent large mill and overlay or reconstruct projects respectively, adjusted for
inflation, as if 36th Avenue were a standard 32 foot wide State Aid Street in
the City.
Adopted by the Crystal City Council this 1St day of June, 2010.
r�
ReNae J. :• X. •
ATTEST:
L Az'ri
J et Lewis, City Clerk
ITubworks/projects/2009/36 overlay/adoptassmntpolicyres
EXHIBIT A
CITY OF CRYSTAL SPECIAL ASSESSMENT POLICIES AS THEY
RELATE TO STREET MAINTENANCE AND RECONSTRUCTION
AND ALLEY RECONSTRUCTION
June 2010
Total construction cost includes contractor and material costs, plus feasibility,
engineering design, legal, project management, bonding, levy, and other related
costs. Front footage is measured at the property line. Front footage is a
measurement based on both sides of the street, not street centerline footage.
Assessed Sealcoat
1. Non -corner single family/duplex properties are assessed on a per unit cost
based on total project construction cost per front foot for the entire project.
The total single family/duplex properties front footage times the cost per
front foot divided by the number of net whole single family/duplex properties
determines the cost per unit.
2. Single family/duplex corner properties are assessed at the same unit cost as
for non -corner properties.
3. Commercial/non-profit properties (including churches) are assessed based on
total project construction cost per front foot for the entire project times the
number of front feet for a given parcel.
4. Commercial/non-profit corner properties are assessed based on the entire
front footage of both sides of the property.
Alley Reconstruction
1. Alley reconstruction assessments are based on 60% of the total construction
cost. The remaining 40% is paid by the Storm Drain Utility. This applies to
single family/duplex and C/N -P properties alike.
2. Alley reconstruction is assessed in a manner similar to sealcoat. Non -corner
single family/duplex properties are assessed on a per unit cost based on 60%
of the total construction cost per front foot for the entire project. The total
single family/duplex properties front footage times the cost per front foot
divided by the number of net whole single family/duplex properties
determines the cost per unit.
3. Single family/duplex corner properties are assessed at the same per unit cost.
4. C/N -P properties (including churches) are assessed based on 60% of the total
project construction cost per front foot for the entire project times the
number of front feet for a given parcel.
5. C/N -P corner properties are assessed based on the entire front footage of
both sides of the property were there to be an alley project on two sides of a
corner property.
Street Reconstruction
Street reconstruction projects have two assessment categories. The first is the street
construction assessment, which is assessed in a manner similar to sealcoat
assessments, i.e. a per unit basis for single family/duplex, and a per front foot basis
for C/N -P properties. Street construction includes all construction work associated
with the project, including storm drainage work, but not including curb and gutter
work. The second category is the curb and gutter assessment which is assessed on a
front foot basis at a rate based on the status of the existing or non -existing curb.
Single family/duplex properties receive a credit of approximately 30% of the actual
street construction cost portion (per unit cost) of the assessment based on State Aid
and Storm Drain Utility Funds that are distributed equally across said properties on
a per unit basis.
1. Properties with frontage on a Municipal State Aid Street are assessed in the
same manner as properties on non -State Aid municipal streets. For the
purposes of this document, and unless differentiated otherwise, "local street"
includes both State Aid and non -State Aid municipal street frontages.
2. Single family/duplex properties are assessed for the street reconstruction
portion on a per unit cost based on total street construction cost per front
foot for the entire project. The total single family/duplex properties front
footage times the cost per front foot divided by the number of net whole
single family/duplex properties determines the per unit cost.
3. Non -corner single family/duplex properties are assessed on a per unit cost
basis for the street reconstruction portion, regardless of length of front
footage. Curb and gutter is assessed on a total cost per front foot basis and
the 30% reduction is not applicable.
4. C/N -P properties are assessed on a front foot basis for both street and curb
and gutter assessments, and the 30% reduction does not apply.
5. A single family/duplex corner property that has its driveway on a county
road is assessed one half of the unit street cost for local street reconstruction
and the standard amount for curb and gutter.
6. A single family/duplex corner property that has its driveway on a local street
with the other side on a county road is assessed at the full unit street cost and
the standard amount for curb and gutter.
7. A single family/duplex corner property with both sides on a local street and
within the project area, is assessed one full unit street cost, and for curb and
gutter based on the full length of the short side (regardless of which way the
front door faces), and one-third of the first 135 feet and 100% of any length
beyond 135 feet on the long side.
8. A single family/duplex corner property with both sides on a local street, but
only one side in the project area, is assessed one-half of the unit street cost
and the standard amount for curb and gutter on the reconstructed side. The
balance to be assessed when the other local street side is reconstructed.
9. All properties with any frontage on a county road are not assessed for the
county road portion when the county road is rebuilt.
10. Three or more properties with frontage and driveways on an unimproved
street will have the street built to local street standards and are assessed at
the standard rates. If only two of the three properties have driveways on the
unimproved street, the two properties may petition to have the street built to
local street standards as part of the larger project, and be assessed
accordingly. The third property would be a corner parcel and would be
assessed accordingly. If there is no petition, then the private driveways in the
right of way remain the responsibility of the property owners.
11. For the two or less unimproved street parcel situation, a corner parcel with
frontage on an improved street, regardless of what side the driveway is on, is
assessed one full unit street cost and the standard amount for curb and
gutter. If the parcel has no improved street frontage, the parcel receives no
assessment, however the private driveway located in the unimproved right of
way is the responsibility of the property owner and is not improved as part of
the project.
12. Non -corner single family/duplex parcels with frontages on two streets (front
and backyard for example) are assessed in the same manner as a corner lot,
including the long and short side curb and gutter policy.
13. There are three curb and gutter assessment rates that apply equally to single
family/duplex and C/N -P properties:
• Properties with no existing curb and gutter are assessed at the full curb
and gutter rate.
• Properties with the old "D" mountable style curb are assessed at 75% of
the full rate.
• Properties with the city standard "B618" curb are assessed at a
"reincorporation" rate specific to each project based on estimated
removal and replacement costs. This rate is approximately 25% of the
full rate.
EXHIBIT B
CITY OF CRYSTAL SPECIAL ASSESSMENT POLICY FOR THE
MILL AND OVERLAY OF STATE AID STREET 36TH AVENUE
June 2010
Total mill and overlay construction cost includes contractor and material costs for
asphalt and curb and gutter and sidewalk repair, plus feasibility, engineering
design, legal, project management, bonding, levy, and other related costs. Front
footage is measured at the property line. Total project front footage is a
measurement based on both sides of the street, not street centerline footage and
includes single family/duplex corner lots with driveways on the side street even
though those corner lot properties will not be assessed as part of the project. Total
single family/duplex properties front footage is the total of all single family/duplex
front footages, including those with driveways on the local side street.
Single family/duplex properties receive a credit of approximately 30% of the actual
mill and overlay cost of the assessment based on State Aid Funds that are
distributed equally across said properties on a per unit basis. The credit is due to
this project being treated as a reconstruction and not a maintenance project.
1. Single family/duplex properties are assessed for mill and overlay on a per
unit cost based on total construction cost per front foot for the entire project
less approximately 30%. The total single family/duplex properties front
footage times this revised cost per front foot divided by the number of net
whole parcels of single family/duplex properties (excluding corner parcels
with driveways on the side local street) determines the per unit cost.
2. Non -corner single family/duplex properties are assessed on this per unit cost
basis for mill and overlay regardless of length of front footage.
3. Commercial/non-profit properties (including churches) are assessed based on
total project construction cost per front foot for the entire project times the
number of front feet for a given parcel. The 30% reduction does not apply.
4. Single family/duplex corner properties that have driveways on 36th Avenue
are assessed one half of the unit mill and overlay cost. These properties have
already been assessed for a one half unit of street reconstruction on the local
street.
5. Single family/duplex corner properties that have driveways on a local street
with the other side on 36th Avenue, have already paid a full street assessment.
These properties will not be assessed for the 36th Avenue mill and overlay
project. They will receive a full unit mill and overlay assessment when their
respective local street is mill and overlayed.
6. In the future when it is necessary to mill and overlay 36th Avenue again, the
assessment rates for both commercial and single family/duplex properties
will be determined based on the most recent large overlay project that
included a combination of local and state aid streets, adjusted for inflation.
7. In the future when it is necessary to do a total reconstruct of 36th Avenue, the
assessment rates for both commercial and single family/duplex properties
will be determined based on the most recent large total reconstruct project
that included a combination of local and state aid streets, adjusted for
inflation.
EXHIBIT C
CITY OF CRYSTAL SPECIAL ASSESSMENT POLICY FOR THE
MILL AND OVERLAY OF STATE AID AND LOCAL STREETS
(EXCLUDING THE 2010 36TH AVENUE PROJECT)
June 2010
Total mill and overlay construction cost includes contractor and material costs for
asphalt and curb and gutter and sidewalk repair, plus feasibility, engineering
design, legal, project management, bonding, levy, and other related costs. Front
footage is measured at the property line. Front footage is a measurement based on
both sides of the street, not street centerline footage.
1. Non -corner single family/duplex properties are assessed on a per unit cost
based on total project construction cost per front foot for the entire project.
The total single family/duplex properties front footage times the cost per
front foot divided by the number of net whole single family/duplex properties
determines the cost per unit. In determining the cost per unit, corner lots
with only one side being overlayed are counted as one-half unit, and corner
lots with both sides being overlayed are counted as a full unit.
2. Single family/duplex corner properties are assessed at the same unit cost as
for non -corner properties. These properties receive a full unit assessment if
both sides are being overlayed, and one-half unit if only one side is being
overlayed.
3. 36th Avenue Frontage Excepetions: Corner lots with driveways fronting on
36th Avenue are assessed at one-half of the side street rate when the side
street is overlayed. Corner lots with driveways fronting on the side street are
assessed one full unit when the side street is overlayed.
4. Commercial/non-profit properties (including churches) are assessed based on
total project construction cost per front foot for the entire project times the
number of front feet for a given parcel.
5. Commercial/non-profit corner properties are assessed based on the entire
front footage of both sides of the property.
I:/pubworks/projects/2009/36thOverlay/Assessm entpolicies2
Memorandum
CITY of
CRYSTAL
DATE: July 8, 2014
TO: Mayor and City Council
FROM: Anne Norris, City Manager
Charles Hansen, Finance Director
SUBJECT: Replenishing the Major Building Replacement Fund
At last week's work session discussion of replenishing the Major Building Replacement
Fund (MBRF), the Council requested information regarding how funding the Public
Works Facility with a combination of cash and bonding would look and what the MBRF
budget looks like over 10 years. Attached are two schedules showing the MBRF
extended out 10 years to include the Public Works Facility and best estimate for a
Police facility in 2020 — 2021.
Schedule 1 shows the MBRF projects on a cash basis, without the use of bonds. The
assumptions of this schedule are:
• Public Works Facility constructed in 2014/2015. Total cost estimated at
$14,000,000.
• Police Station constructed in 2020/2021. Total cost estimated at $7,500,000.
• Tax levy from County Highway 81 project is redirected to MBRF for at least 2015
through 2017 to cover gap in funding Public Works Facility.
• Tax levy from County Highway 81 project is continued after 2017 to rebuild
MBRF.
• Cash balance in MBRF only recovers to about $1,200,000 before Police Station
project begins in 2020. Additional funding sources will be needed for the Police
Station.
Schedule 2 shows the MBRF projects using bond sales in 2015 and 2020 to finance a
portion of the projects. The assumptions of this schedule are:
• Public Works Facility constructed in 2014/2015. Total cost estimated at
$14,000,000.
• Police Station constructed in 2020/2021. Total cost estimated at $7,500,000.
• A $5,000,000 bond with a ten year term is sold in 2014 to help fund the Public
Works Facility construction. This bond could be as little as $3,000,000 and still
maintain a positive balance in the fund. Term of the bond could be less than 10
years in this case.
• A $4,000,000 bond is sold in 2020 to help fund the Police Station. If the 2014
bond is less than $5,000,000, then the 2020 bond will need to be more than
$4,000,000.
• Tax levy from County Highway 81 project is redirected to the debt service fund
for the bonds. Debt service payments may be needed simultaneously on both
bonds in the years 2021 through 2025. In this case, the total tax levy would be
something like $1,000,000 per year instead of $563,153 redirected from the
County Highway 81 tax levy.
Replenishing the MBRF is a worthy goal and the Council needs to first determine how
to finance the Public Works facility. Finance Director Charles Hansen and I will be at
the July 10 work session to answer questions.
Attach:
Major Building Replacement Fund (Fund 408)
Multi -Year Capital Improvement Plan
Without Bond Sale
Actual
2013 2014 2015 2016 2017 2017 2018
SCHEDULE '1
2019 2020 2021 2022
Capital Outlays
60,000
563,153
28,463
563,153
-31,242
563,153 563,153
-25,755 -14,784
563,153
1,667
563,153
18,611
563,153
36,064
563,153
-58,459
563,153
-155,818
Property Tax Levy
Interest Income
21,169
Public Works Facility - Design
43,864
500,000
1,000,000
-
-�
Total Funding Sources
Public Works Facility - Land
3,000,000
1
t
560,000
-
--
Public Works Facility - Construction
564,8201
5,000,000
6,000,000
504,6941
407,335
-7,440,000
-4,408,384
531,911
537,398 548,369
564,820
581,764
-3,150,783
-3,245,306
407,335
Budgeted Expenditures
-22,695
(Over)/Under Funding Sources
3,750,000
3,750,000
Police Station
-
City Hall remodeling
-
Community Center remodeling
_
Consolidate Fire Stations
Total Capital Outlay 43,RFa R nn0 000 6 000 000 0 0 0 0 O 3,750,000 3,750,000 O
Funding Sources
60,000
563,153
28,463
563,153
-31,242
563,153 563,153
-25,755 -14,784
563,153
1,667
563,153
18,611
563,153
36,064
563,153
-58,459
563,153
-155,818
Property Tax Levy
Interest Income
21,169
Operating Transfer from Econ. Dev. Auth.
Reimbursement from Utility Funds
500,000
1,000,000
-�
Total Funding Sources
211169
1
t
560,000
1,591,616
531,911
537,398 548,369
564,8201
581,764
599,217
504,6941
407,335
-7,440,000
-4,408,384
531,911
537,398 548,369
564,820
581,764
-3,150,783
-3,245,306
407,335
Budgeted Expenditures
-22,695
(Over)/Under Funding Sources
Year End Fund Balance 10,286,268 2,846,268 -1,562,116 -1,030,206 -492,808 55,561 620,381 1,202,145 -1,948,637 -5,193,944 -4,786,609
Assumed Return on Investments 0.21% 1.0% 1.0% 2.0% 2.5% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Major Building Replacement Fund (Fund 408)
Multi -Year Capital Improvement Plan
With Bond Sales in 2015 and 2020
Actual
2013 2014 2015 2016 2017 2017
SCHEDULE 2
2018 2019 2020 2021 2022
Capital Outlays
21,169
60,000
78,463
58,495
-
74,581
91,734 94,486 97,321
100,240
110,748
1,570
Operating Transfer from Econ. Dev. Auth.
Bond sale
Public Works Facility - Design
43,864
4,000,000
Reimbursement from Utility Funds
Total Funding Sources
Budgeted Expenditures
1,000,000
Public Works Facility - Land
3,000,000
21,169
5,560,000
1,078,463
58,495
74,581
I
Public Works Facility - Construction
Police Station
110,748
5,000,000
6,000,000
_
3,750,000
3,750,000
-22,695
-2,440,000
-4,921,537
58,495
74,581
91,734 94,486 97,321
350,240
-3,639,252
1,570
(Over)/Under Funding Sources
City Hall remodeling
Community Center remodeling
Consolidate Fire Stations
Total Capital Outlay 43,864 8,000,000 6,000,000 0
0
0
0
0
3,750,000
3,750,000
0
r uiiumg ODU1 cca
Property Tax Levy
Interest Income
21,169
60,000
78,463
58,495
-
74,581
91,734 94,486 97,321
100,240
110,748
1,570
Operating Transfer from Econ. Dev. Auth.
Bond sale
500,000
5,000,000
4,000,000
Reimbursement from Utility Funds
Total Funding Sources
Budgeted Expenditures
1,000,000
21,169
5,560,000
1,078,463
58,495
74,581
91,734 94,486 97,321
4,100,240
110,748
1,570
-22,695
-2,440,000
-4,921,537
58,495
74,581
91,734 94,486 97,321
350,240
-3,639,252
1,570
(Over)/Under Funding Sources
Year End Fund Balance 10,286,268 7,846,268 2,924,731 2,983,225 3,057,806 3,149,540 3,244,026 3,341,347 3,691,588 52,335 53,905
Assumed Return on Investments 0.21% 1.0% 1.0% 2.0% 2.5% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%