HomeMy WebLinkAboutItem 07November 17, 2014
Item No.
RESOLUTION IMPOSING A SERVICE CHARGE FOR SPECIAL SERVICE DISTRICT NO.1
FOR TAXES PAYABLE 2015
Staff recommends adoption of the following motion: Move to approve Resolution Imposing a
Service Charge for Special Service District No. 1.
Approval of the motion will result in approval of the special service charge for taxes payable
2015.
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 2015 and approval of the attached budget for the
period of July 1, 2015 to June 30, 2016.
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
• Budget
Zcationa• rvice Charge Alloa er, Finance Direct r David
Ison, Community/Economic Development Director
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 2015.
• Budget
The proposed budget for period of July 1, 2015 through June 30, 2016 is as follows:
Revenues - service charges
Current Levy collected
Other revenues
Net service charges
Expenditures
Executive Director (Wage/Payroll Tax)
Postage/PO Box Rental
Office supplies
Professional fees (Acctg/Computer)
Meeting expenses (Chamber/DLBA Board)
Website
Flower Pots
Brochures/marketing/Advertising
Sponsorships
Farmers Market
Trick or Treat
Chamber - DLBA "After Hours"
Holiday Lighting
Holiday on Main
Block Bash
Easter
Promotional Events (Retail Committee Events)
County assessment fee
Total expenditures
Net change
Balance - Beginning
Balance - Ending
Actual Budget Proposed
Fiscal Year Fiscal Year Fiscal Year
Ended Ended Ended
June, 2014 June, 2015 June, 2016
28,269
27,500
27,500
-
2,500
2,500
28,269
30,000
30,000
9,247
11,250
11,250
56
50
50
362
300
300
503
225
265
157
100
100
4,161
750
350
2,575
2,500
2,500
5,908
1,950
2,360
500
250
750
-
400
400
-
1,000
1,000
-
500
-
-
75
75
4,990
5,250
5,250
5,535
5,100
5,100
130
100
100
(389)
-
-
148
150
150
33,883
29,950
30,000
(5,614)
50
-
13,357
7,743
7,793
7,743
7,793
7,793
• Special Service Charge assessment list
Attached is a schedule of the 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.
CITY OF LAKEVILLE
Resolution No.
RESOLUTION IMPOSING A SERVICE CHARGE
FOR SPECIAL SERVICE DISTRICT NO. 1 FOR TAXES PAYABLE 2015
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
amount and against the properties
hereto (the "Service Charge').
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, 2015 through June
30, 2016 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 2015 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 2015, the Service Charge will be $27,500.00.
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 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.
2
ADOPTED by the City Council of Lakeville, Minnesota 17"' day of November 2014.
ATTEST:
Charlene Friedges, City Clerk
3
CITY OF LAKEVILLE
50
Matt Little, Mayor
Exhibit A
Map of Special Service District No. 1
EXHIBIT B
SPECIAL SERVICE DISTRICT - DOWNTOWN
Special Service Charge Allocation
Market
Tax Capacity
Special Service
PROPERTY
Value
Value
Charge
PID #
OWNER
2015
2015
2015
22 44450 02 121
Richard/Ann Miller
434,100
7,932
926
22 44450 12 020
20777 LLC
146,300
2,195
256
22 4445012 042
20777 LLC
159,900
2,448
286
306,200
4,643
542
22 02900 78 051
Holyoke Professional Ltd
906,700
17,384
2,029
(22 13700 084 01)
22-47600-01-010
Holyoke CrossingLLC
y
1,625,700
32,514
3,795
22-13700-02-081
Holyoke Crossing LLC
135,400
2,708
316
(22-44450-111-13)
22-47600-01-020
oke Crossing former J+J Hold.
y g( )
2,212,800
43,506
5,077
2,212,800
43,506
5,077
22 85100 01 051
Seven Sixty Five LLC (Former J & J
Holding Co.)
149,600
2,244
262
22 44450 12 050
Seven Sixty Five LLC (Former J & J
149,600
2,990
349
Holding Co.)
299,200
5,234
611
22 63700 01 040
Lakeville Real Estate Management
LLC
56,500
1,130
132
22 63700 01 080
Lakeville Real Estate Management
LLC
282,900
5,658
660
22 63700 01 030
Lakeville Real Estate Management
LLC
56,000
1,120
131
22 63700 01 020
Lakeville Real Estate Management
282,900
4,908
573
LLC
678,300
12,816
1,496
Gregory J./Nancy Papatola Tste
22 44450 12 044
Smith
238,900
4,028
470
Gregory J./Nancy Papatola Tste
22 44450 12 040
Smith
101,600
2,032
237
340,500
6,060
707
22 85100 01 100
Wells Fargo
804,800
15,346
1,791
22 85100 01 080
Wells Fargo
51,800
777
91
22 85100 01 070
Wells Fargo
45,400
681
80
22 85100 01 020
Wells Fargo
113,800
2,276
266
1,015,800
19,080
2,227
22 13700 02 010
KNS Investments
268,600
4,622
539
PID #
22 44450 10 110
22 85100 01 041
22 85100 01 071
22-44450-10-041
22-44450-10-010
22-44450-10-020
22 44450 10 030
22 44450 10 040
22 85100 01 050
22-32190-00-011
22-32190-01-010
22 44450 07 183
22 44450 06 101
22-47600-02-010
22-4441 b -U 1-U 1 'I
TOTAL
EXHIBIT B
SPECIAL SERVICE DISTRICT - DOWNTOWN
Special Service Charge Allocation
Market
PROPERTY I Value
Tax Capacity Special Service
Value Charge
2015 1 2015
PJK Land LLC % Paul Krause
114,400
1,716
200
R. Gallagher Reichardt Tste
259,300
4,436
518
R. Gallagher Reichardt Tste
12,900
258
30
272,200
4,694
548
VFW Post
212,600
3,502
409
VFW Post
53,400
1,068
125
VFW Post
52,900
1,058
124
VFW Post
52,900
1,058
124
VFW Post
19,500
390
46
391,300
7,076
826
20757 LLC % Mark Hotzler
191,800
3,086
360
Investments)
46,000
690
81
investments)
524,700
9,974
1,164
570,700
10,664
1,245
Lakeville Family Bowl, Inc.
253,100
4,312
503
Allstot Properties
314,100
5,532
646
N & V Apartments (Ace maraware)
1,094,300
21,136
2,467
Dakota County CDA
594,400
11,138
1,300
bi
12,583,700 235,635 27,500
EXHIBIT
Revenues - service charges
Current Levy collected
Other revenues
Net service charges
Expenditures
Executive Director (Wage/Payroll Tax)
Postage/PO Box Rental
Office supplies
Professional fees (Acctg/Computer)
Meeting expenses (Chamber/DLBA Board)
Website
Flower Pots
Brochure s/marketing/Advertising
Sponsorships
Eve nts
Farmers Market
Trick or Treat
Chamber - DLBA "After Hours"
Holiday Lighting
Holiday on Main
Block Bash
Easter
Promotional Events (Retail Committee Events)
County assessment fee
Total expenditures
Net change
Balance - Beginning
Balance - Ending
on
Actual Budget Proposed
Fiscal Year Fiscal Year Fiscal Yeai
Ended Ended Ended
June, 2014 June, 2015 June, 2016
28,269
27,500
27,500
-
2,500
2,500
28,269
30,000
30,000
9,247
11,250
11,250
56
50
50
362
300
300
503
225
265
157
100
100
4,161
750
350
2,575
2,500
2,500
5,908
1,950
2,360
500
250
750
-
400
400
-
1,000
1,000
-
500
-
-
75
75
4,990
5,250
5,250
5,535
5,100
5,100
130
100
100
(389)
-
-
148
150
150
33,883
29,950
30,000
(5,614)
50
-
13,357
7,743
7,793
7,743
7,793
7,793