HomeMy WebLinkAboutItem 07Lakeville
November 5, 2012
Item No.
RESOLUTION IMPOSING A SERVICE CHARGE FOR SPECIAL SERVICE DISTRICT NO. 1 FOR
TAXES PAYABLE 2013
Proposed Action
Staff recommends adoption of the following motion: Move to approve Resolution Calling a
Public Hearing Relating to the Imposition of a Service Char, eg for Special Service District No. 1
Approval of the motion will result in a public hearing on November 19, 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 2013 and approval of the
attached budget for the period of July 1, 2013 to June 30, 2014
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
($27,500) consistent with those of prior years.
Primary Issues to Consider
• Purpose of the public hearing
• Budget
• Special Service Charge assessment list
• Legal considerations
Supporting Information
Financial Impact: $ 27,500 Budgeted: To be determined at Hearing Source: Sp Svc Chq
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
Dakota County Treasurer /Auditor for collection with taxes payable in 2013.
• Budget.
The proposed budget for period of July 1, 2013 through June 30, 2014 is as follows:
Actuals Adopted Proposed
Fiscal Fiscal Fiscal
Year Year Year
Ended Ended Ended
June, 2012 June, 2013 June, 2014
Revenues - service charges
Current Levy collected
25,214
27,534
27,500
Other revenues
500
500
-
Net service charges
25,714
2
27,50
Expenditures
Executive Director
10,768
11,300
11,250
Postage
52
88
150
Office supplies
741
300
600
Professional fees
511
315
300
Meeting expenses
78
100
150
Website
383
250
300
Flower Pots
1,200
2,600
2,500
Brochures /marketing
6,211
3,300
2,500
Iron man
436
425
-
Third Thursdays
5,431
4,500
4,000
Pan- O -Prog
500
500
500
Holiday on Main
5,169
5,200
5,250
Promotional Events
1,186
4,000
-
Less Reimbursement
(850)
(4,000)
County assessment fee
-
133
-
Total expenditures
31,816
29,011
27,500
Net change
(6,102)
(977)
-
Balance - Beginning
20,415
18,609
14,3
Balance - Ending
14,313
17,632
14,313
• 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 charges 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 is attached.
CITY OF LAKEVILLE
Resolution No.
RESOLUTION IMPOSING A SERVICE CHARGE
FOR SPECIAL SERVICE DISTRICT NO. 1 FOR TAXES PAYABLE 2013
BE IT RESOLVED by the City Council of Lakeville, Minnesota, as follows:
SECTION 1. Recitals. Findings
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 Charge There is hereby imposed a service charge in the
amount and against the properties specified on Exhibits "A" and "B ", attached
hereto (the "Service Charge').
2.02. Nature and character of Special Services — Budget. There is hereby approved a
budget for Special Service District fiscal year beginning July 1, 2013 through June
30, 2014 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 2013 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.
1
For taxes payable in 2013, 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 payable 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 Surolus.
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.
2
ADOPTED by the City Council of Lakeville, Minnesota this 19th day of November 2012.
RW
ATTEST:
CITY OF LAKEVILLE
Mark Bellows, Mayor
Charlene Friedges, City Clerk
4
EXHIBIT B
SPECIAL SERVICE DISTRICT - DOWNTOWN
Proposed Special Service Charge Allocation
PROPERTY
PID # OWNER
22 44450 02 121 RichardlAnn Miller
Market Tax Capacity Special Service
Value Value Charge
2013 1 2012 1 2013 1 2012 1 201
434,100 434100 7,932 7,932 903 902
22 44450 12 020
20777 LLC
146,800
146,300
2,202
2,195
251
250
22 4445012 042
20777 LLC
159,900
159,900
2,448
2,448
279
279
306,700
306,200
4,650
4,643
530
528
22 02900 78 051
He lye ke P rofessio nal Ltd
906,700
906,700
17,384
17,384
1980 ,
1,978
(22 13700 084 01)
2247600 -01-0'9
He lyo ke Cro ssing LLC
1,625,700
1,625,700
32,514
32,514
3,703
3,699
22- 13700 -02 -081
Holyo ke Crossing LLC
135 ,400
135,400
2,708
2,708
308
308
(22- 44450 -111-10)
Holyoke Crossing (former J J
22- 47600 -0 }020
Hold.)
2,712,800
2,212,800
43,506
43,506
4,955
4,949
2,212,800
2,212,800
43,506
43,506
4,955
4,949
22 851DO 01051
Seven Sixty F ive LLC
149,600
149,600
2,244
2,244
256
255
22 44450 12 050
Seven Sixty F ive LLC
149,600
149,600
2,990
2,990
341
340
299,200
299,200
5,234
5,234
596
595
22 63700 0104o
Lakeville Real Estate M grit. LLC
56,500
56,500
1130
1130
129
129
22 63700 01080
Lakeville Real Estate M gmt. LLC
282,900
282,900
5,658
5,658
644
644
22 63700 01030
Lakeville Real Estate Mgmt. LLC
56,000
56,000
1120
1,120
128
127
22 63700 01020
Lakeville Real Estate M gmt. LLC
282,900
282,900
4,908
4,908
559
558
678,300
678,300
12,815
V,816
1,460
1,458
Grego ry J./Nancy Papato la Tste
22 44450 12 044
Smith
238,900
238,900
4,028
4,028
459
458
Gregory ) /Nancy Paranoia TSte
22 44450 4 040
Smith
'91600
n4 600
2032
2,032
231
231
340.500
340.500
6,060
6.060
690
689
22 85100 01100
Wells Fargo
804,800
604,800
15,346
15,346
1,748
1,746
22 85100 01080
Wells Fargo
51,800
51,800
777
777
89
88
22 85100 01070
Wells Fargo
45,400
45,400
681
681
78
78
22 85100 01020
Wells Fargo
113,800
113,800
2,276
2,276
259
259
1,015,800
1,015,800
19,080
13,080
2,173
2,171
22 13700 02 010
KNS Investments
268,600
268,600
4,622
4,622
526
526
5
EXHIBIT B
SPECIAL SERVICE DISTRICT - DOWNTOWN
Proposed Special Service Charge Allocation
PROPERTY
BID# OWNER
22 44450 07 120 Rose Acceptance Inc
22 44450 10 070 Holyoke Plaza LLC
22 44450 10 090 Holyoke Plaza LLC
22 44450 10 110 PJK Land LLC % Paul Krause
22 85100 01 041 R. Gallagher Reichardt Tste
22 85100 01 071 R. Gallagher Reichardt Tste
Market ' Tax Capacity Special Service
Value Value Charge
2012 1 2013 1 2012 1 2013 1 2012 1 2013
257,900 257,900 4,408 4,408 502 501
264,600 264,600 4,542 4,542 517 517
41,600 41,600 832 832 95 95
306,200 306,200 5,374 5,374 612 611
114,400 114,400 1,716 1,716 195 195
259,300 259,300 4,436 4,436 505 505
12,900 12,900 258 258 29 29
272,200 272,200 4,694 4,694 535 534
22 4445010 041
VFW Post
212,600
212,600
3,502
3,502
399
398
22- 44450 -10 -010
VFW Post
53,400
53,400
1,068
1,068
122
122
22- 44450 -10 -020
VFW Post
52,900
52,900
1,058
1,058
121
120
22 44450 10 030
VFW Post
52,900
52,900
1,056
1,058
121
120
22 44450 10 040
VFW Post
19,500
19,500
390
390
44
44
_ 391,300
391,300
7,076
7,076
806
805
22 85100 01 050
20757 LLC % Mark Hetzler
191.800
191,800
3,086
3,086
352
351
Anchor Bank (Former Hewitt
22- 32190 -00 -010 Investments) 126,500 126,500 1,898 1,898 216 216
Anchor Bank (Former Hewitt
22- 32190 -01 -010 Investments) 749,700 749,700 14,877 14,877 1,694 1,692
876,200 876,200 16,775 16,775 1,911 1,908
22 44450 07 183 Lakeville Family Bowl, Inc. 253,100 253,100 4,312 4,312 491 491
22 44450 06 101 Allstot Properties 314,100 314,100 5,532 5,532 630 629
22- 47600 -02 -010 H e V Apartments (Ace Hardware) 1,094,300 1,094,300 21,136 21,136 2,407 2,404
(22 44415 010 01)
2244415 -01 -011 Dakota County CDA 594,400 594,400 11,138 11,138 1,269 1,267
TOTAL 12,889,700 12,889,200 241,753 241,746 27,534 27,500
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Exhibit C
Actuals
Adopted
Proposed
Fiscal
Fiscal
Fiscal
Year
Year
Year
Ended
Ended
Ended
June, 2012
June, 2013
June, 2014
Revenues - service charges
Current Levy collected
25,214
27,534
27,500
Otherrevenues
500
500
-
Net service charges
25,714
28,034
27,500
Expenditures
Executive Director
10,768
11,300
11,250
Postage
52
88
150
Office supplies
741
300
600
Professional fees
511
315
300
Meeting expenses
78
100
150
Website
383
250
300
Flower Pots
1,200
2,600
2,500
Broebures /marketing
6,211
3,300
2,500
Iron man
436
425
-
Third Thursdays
5,431
4,500
4,000
Pan -O -frog
500
500
500
Holiday on Main
5,169
5,200
5,250
Promotional Events
1,186
4,000
-
Less Reimbursement
(850)
(4,000)
County assessment fee
-
133
-
Total expenditures
31,816
29,011
27,500
Netchange
(6,102)
(977)
-
Balance- Beginning
20,415
18,609
14,313
Balance - Ending
14,313
17,632
14,313
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