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Home My WebLink AboutItem 07November 21, 2011 Item No. RESOLUTION IMPOSING A SERVICE CHARGE FOR SPECIAL SERVICE DISTRICT NO.1 FOR TAXES PAVAvLE 2012 Proposed Action Staff recommends adoption of the following motion: Move to approve Resolution Imposing a Service Charge for Special Service District No. I for Taxes Payable 2012. Passage of the Resolution will result in approval of the special service charge for payable 2012. Overview On July 6, 1998, the City Council approved Ordinance 631 establishing a Special Service District No. 1. The Special Service District Advisory Board has requested City Council consideration of levying a special service charge payable in 2012 and approval of the attached budget for the period of July 1, 2012 to June 30, 2013. The allocation of the total service charge to the downtown properties is based on the net tax capacity of the commercial values of the properties in the district. The Special Service District Advisory Board is recommending that the service charge payable remain unchanged ($27,534) consistent with those of prior years. Primary Issues to Consider • Purpose of the public hearing • Budget • Special Service Charge assessment fist • Legal considerations Supporting Information • Budget • Special Service Charge Allocation Deh� Feller, Finance Director Financial Impact: $ 27,534 Budgeted: To be determined at Hearing Source: Sp Svc Chg Related Documents (CIP, ERP, etc.): Ordinance Establishing a Special Service District Notes: Primary Issues to Consider • Purpose of the public hearing. Minnesota Statute 428A.03 requires that a public hearing must be conducted each calendar year with notices mailed to each business organization subsequent to the service charge. After the public hearing is conducted, and the resolution is adopted, the amounts will be certified to the ivakota County Treasurer /Auditor for collection with taxes payable in 2012. • Budget. The proposed budget for period of July 1, 2012 through June 30, 2013 is as follows: Exhibit C Actuals Adopted Proposed Fiscal Fiscal Fiscal Year Year Year Ended Ended Ended June, 2011 June, 2012 June, 2013 Revenues - service charges Current Levy collected 26,562 27,534 27,534 Otherrevenues 500 4,000 5 00 Net service charges 27,062 31,534 28,034 Expenditures Executive Director 11,205 11,250 11,300 Postage 84 150 88 Office supplies 599 500 300' Professional fees 442 265 315 Meeting expenses 105 225 100 Website 250 300 250 Flower Pots 2,855 2,750 2,600 Brochures /marketing 5,497 3,000 3,300 Iron man 425 4,000 425 Wednesday on Main 3,425 4,500 - Third Thursdays 1,274 - - Main Street Event - - 4,500 Pan- O -Prog 500 500 500 Holiday on Main 5,364 5,500 5,200 Promotional Events 1,975 - 4,000 Less Reimbursement (3,205) - (4,000) County assessment fee 133 150 133 Total expenditures 30,928 3 3,090 29,011 Net change (3,866) (1,556) (977) Balance - Beginning 24,031 22,940 18,609 Balance - Ending 20,165 21,384 17, 632 • Special Service Charge assessment list. Attached is a schedule of the proposed Special Service District by parcel. The Service charge for a specific parcel may vary from year to year as a result of changes to tax classification, assessed market value or changes in value due to property improvements. • Legal considerations The Special Service District is subject to Minnesota Statutes 428A and City of Lakeville Ordinance 631. Section 428A.08 of Minnesota Statutes states that no action may be taken under section 428A.02 or 428A.03 unless owners of 25 percent or more of the land area of property that would be subject to service char in the proposed special service district and either: (1) owners of 25 percent or more of the net tax capacity of property that would be subject to a proposed service charge, based on net tax capacity; or (2) owners, individuals, and business organizations subject to 25 percent or more of a proposed service charge based on other than net tax capacity file a petition requesting a public hearing on the proposed action with the city clerk. A copy of the petition was presented to the City Council at the October meeting. CITY OF LAKEVILLE BE IT RESOLVED by the City Council of Lakeville, Minnesota, as follows: 1.01. Pursuant to Ordinance No. 631, the City created a special service district for certain property located adjacent to Holyoke, Holt, and Howland Avenues from 202nd Street West on the north to 210th Street West on the south. The specific properties included within this land area (the "District's are identified on Exhibit "A" attached hereto. 1.02. Notice of a public hearing has been given and a public hearing has been held. SECTION 2. Imposition of Service Charge 2.01. Amount of Service Charae There amount and against the properties hereto (the "Service Charge'D. is hereby imposed a service charge in the specified on Exhibits "A" and "B ", attached 2.02. Nature and character of Special Services — Budget. There is hereby approved a budget for Special Service District fiscal year beginning July 1, 2012 through June 30, 2013 as specified on Exhibit "C" a copy of which is attached hereto. 2.03. Multi -year Service Charge The Service Charge imposed by this resolution is a charge for more than one year. The Service Charge will remain in effect through and including the year 2012 for taxes payable in said year. 2.04. Calculation of Service Charge The Service Charge shall be calculated as a percentage of the net tax capacity of the taxable property located in the Special Service District. The minimum charge levied against a property owner shall be $100.00 and the maximum charge shall be $6,000.00 per property owner. If the charge that would otherwise be imposed on a property owner is greater than the maximum allowable charge, the overage shall be redistributed against the other parcels in the District based upon net tax capacity. If the charge that would otherwise be imposed on a property owner is less than the $100.00 minimum charge, the charge against other parcels in the District shall be reduced based on net tax capacity. For taxes payable in 2012, the proposed Service Charge will be $27,535.00. 2.05. Distribution of Total Service Charge The distribution of the total Service Charge among properties within the District and subject to the Service Charge may vary and shall be recalculated pursuant to the formula specified in Section 2.03 if and to the extent that (i) commercial /industrial property tax classification rates increase or decrease based on action by the Minnesota legislature; or (ii) the net tax capacity of a parcel increases or decreases based on changes in the assessed value of the parcel attributable to improvements or changes made to the property; or (iii) a parcel increases or decreases in size by acquisition or sale. SECTION 3. Collection of Service Charges 3.01. Collection The Service Charges shall be payable and collected at the same time and in the same manner as provided for payment and collection of ad valorem taxes. For purposes of determining the appropriate tax rate, taxable property or net tax capacity shall be determined without regard to captured or original net tax capacity under Minnesota Statutes, Section 473F.08. 3.02. Penalty and Interest Service Charges made payable in the same manner as provided for payment and collection of ad valorem taxes, if not paid on or before the applicable due date, shall be subject to the same penalty and interest as in the case of ad valorem tax amounts not paid by the respective date. 3.03. Due Date The due date for the Service Charge payab>ie in the same manner as ad valorem taxes is the due date given in law for the real or personal property tax for the property on which the service charge is imposed. Services Charges imposed on net tax capacity which are to become payable in the following year must be certified to the County Auditor by the date provided in Minnesota Statutes, Section 429.061, Subd. 3 for annual certification of special assessment installments. SECTION 4. Revenue Surplus. To the extent that the total of Services Charges collected exceed the cost of services rendered within the District, at the election of the City, either: (i) such excess amount shall be held as a reserve to pay the cost of future services provided under this resolution; or (ii) the next ensuing year's levy of taxes and service charges shall be decreased by a corresponding amount. SECTION S. Recording The City may record this Resolution against parcels located within the District and subject to the Service Charge for the purpose of providing notice of the Service Charge to prospective purchasers of such parcels. ADOPTED by the City Council of Lakeville, Minnesota this 21st day of November 2011. CITY OF LAKEVILLE M Mark Bellows, Mayor ATTEST: Charlene Friedges, City Clerk Exhibit -Map of Proposed Special Service District No. I EXHIBIT B SPECIAL SERVICE DISTRICT • DOWNTOWN Proposed Special Service Charge Allocation PROPERTY PID # OWNER 22 44450 02 121 Kicnare /ttnn iwmer Market I Tax Capacity I Special Service 04111pI• b11i 446,800 434,100 8,186 7,932 922 903.40 22 44450 12 02o 20777 LLC 147,300 146,800 2,210 2,202 249 250.80 22 4445012 042 159,900 159,900 2,448 2,448 276 278.80 307,200 306,700 4,658 4,650 525 529.60 2202900 78 051 nayoKe rroressionai 1-113 906,700 906,700 17,384 17,384 1,958 1,979.90 (22 13700 084 01) 22- 47600 -01 -010 Holyoke Crossing LLC 1,650,500 1,625,700 33,010 32,514 3,719 3,703.10 22-13700- 02-081 Holyoke crossing LLU 135,400 135,40 2,708 2,708 305 308.40 (22- 44450 - 111 -13) Holyoke Crossing (former J +J 22- 47600 -01 -020 Hold.) 2,264,600 2,212,800 44,542 43,506 5,018 4,955.00 22 85100 01 051 J & J Holding Co. 149,600 149,600 2,244 2,244 253 255.60 22 44450 12 050 o a d voicing co. 149,600 149,600 2,990 2,990 337 340.50 299,200 299,200 5,234 5,234 590 596.10 Lakeville Real Estate Management 22 63700 01 04o LLC 56,500 56,500 1,130 1,130 127 128.70 Lakeville Real Estate Management 22 63700 01 080 LLC 282,900 282,900 5,658 5,658 637 644.40 Lakeville Real Estate Management 2263700 01 030 LLC 56,000 56,000 1,120 1,120 126 127.60 Lakeville Real Estate Management 22 63700 01 020 LLC 282,900 282,900 4,908 4,908 553 559.00 678,300 678,300 12,816 12,816 1,443 1,459.70 Gregory J. /Nancy Papatola Tste 22 44450 12 044 Smith 238,900 238,900 4,028 4,028 454 458.80 Uregory J /Nancy Papatola I ste 22 44450 12 040 Smith 101.600 101,600 2032 2032 229 231.40 340.500 340.500 6.060 6.060 683 690.20 22 85100 01 100 Wells Fargo 804,800 804,800 15,346 15,346 1,729 1,747.80 22 85100 01 080 Wells Fargo 51,800 51,800 777 777 88 88.50 22 85100 01 070 Wells Fargo 45,400 45,400 681 681 77 77.60 22 85100 01 020 vveus rargo 113,800 113,800 2,276 2,276 256 259.20 1,015,800 1,015,800 19,080 19,080 2,150 2,173.10 22 13700 02 010 niva Investments 268,600. 268,600 4,622 4,622 521 526.40 EXHIBIT B SPECIAL SERVICE DISTRICT - DOWNTOWN Proposed Special Service Charge Allocation PROPER:,' PID# OWNER 22 44450 07 120 Kose NCCep[anCe me 22 44450 10 070 Holyoke Plaza LLC 22 44450 10 090 KOryoKe rIaza LLc 22 44450 10 110 rJn Lana LLI: /o taut nrause 22 85100 01 041 R. Gallagher Reichardt Tste 22 85100 01 071 K. tianagner Keicnarot I are Market I Tax Capacity I Special Service t Value i iiaiue t Charge i 260,700 257,900 4,464 4,408 503 502.00 264,600 264,600 4,542 4,542 512 517.30 41,600 41,600 832 832 94 94.80 306,200 306,200 5,374 5,374 606 612.10 114,400 114,400 1,716 1,716 193 195.40 259,300 259,300 4,436 4,436 500 505.20 12,900 12,900 258 258 29 29.40 272,200 272,200 4,694 4,694 529 534.60 22 4445010 041 VFW Post 212,600 212,600 3,502 3,502 395 398.90 22- 44450 - 10-010 VFW Post 53,400 53,400 1,068 1,068 120 121.60 22- 44450 - 10-020 VFW Post 52,900 52,900 1,058 1,058 119 120.50 22 44450 10 030 VFW Post 52,900 52,900 1,058 1,058 119 120.50 22 44450 10 040 vrvv rost 19,500 19,500 390 390 44 44.40 391,300 391,300 7,076 7,076 797 805.90 22 85100 01 050 ZU/c. LLC,. Imam ro¢ier 191,800 191,800 3,086 3,086 348 351.50 22- 32190 - 00-010 Hewitt Investments 126,500 126,500 1,898 1,898 214 216.20 22- 32190 -01 -010 rlewnr invescmems 749,700 749,700 14,877 14,877 1,676 1,694.40 876,200 876,200 16,775 16,775 1,890 1,910.60 22 44450 07 183 LaKewue ramny bowl, me. 275,500 253,100 4,760 4,312 536 491.10 22 44450 06 101 rvtstot rropemes 314,100 314,100 5,532 5,532 623 630.10 22- 47600 -02 -010 H & V Apartments (Ace Hardware) 1,094,300 1,094,300 21,136 21,136 2,381 2,407.20 (22 44415 010 01) 22- 44415 -01 -011 Dakota County CDA TOTAL 612,800 594,400 11.506 11,138 1,295 1,268.50 13,023,100 12,889,700 244,419 241,753 27,534 27,534 Special Service District - Rate 0.1126508 0.1138931