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Home My WebLink AboutItem 07 Date: Item No. RESOLUTION IMPOSING A SERVICE CHARGE FOR SPECIAL SERVICE DISTRICT NO. 1 FOR TAXES PAYABLE 2018 Proposed Action Conduct public hearing for the proposed special service charge for Special Service District No. 1. Following the public hearing, staff recommends adoption of the following motion: Move to approve the Resolution Imposing a Service Charge for Special Service District No. 1. Overview On July 6, 1998, the City Council approved Ordinance 631 establishing a Special Service District No. 1. The Special Service District is subject to Minnesota Statutes 428A. The Special Service District Advisory Board has requested City Council consideration of levying a special service charge payable in 2018 and approval of the budget for the period of July 1, 2018 to June 30, 2019. 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 be reduced to 50 percent ($13,750) of prior years. The resolution states that a minimum charge of $100 and a maximum charge of $6,000 will be charged per property owner. Due to reducing the service charge, there are no properties that exceed the maximum but there is one property subject to the minimum. 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 2018. Primary Issues to Consider • None Supporting Information • Resolution Financial Impact: $ Budgeted: Y☐ N☐ Source: Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Jerilyn Erickson, Finance Director November 6, 2017 13,750 Special Service Charge Ordinance establishing a Special Service District 1 CITY OF LAKEVILLE RESOLUTION NO. 17- _____ RESOLUTION IMPOSING A SERVICE CHARGE FOR SPECIAL SERVICE DISTRICT NO. 1 FOR TAXES PAYABLE 2018 BE IT RESOLVED by the City Council of the City 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”) 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, 2018 through June 30, 2019 as specified on Exhibit “C” a copy of which is attached hereto. 2.03. 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 2018, the Service Charge will be $13,750.00. 2.04. 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 2 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. 2.05. Effective Date. The effective date of the Service Charge will be January 1, 2018. 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 5. 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 Lakeville City Council this 6th day of November 2017. 3 CITY OF LAKEVILLE BY: ____________________________________ Douglas P. Anderson, Mayor ATTEST: _____________________________________ Charlene Friedges, City Clerk 4 5 Market Tax Capacity Special Service PROPERTY Value Value Charge PID #OWNER 2018 2018 2018 22 44450 02 121 Richard/Ann Miller 446,700 8,184 437.50$ 22 44450 12 020 20777 LLC 257,900 3,353 179.26$ 22 44450 12 042 20779 LLC 164,000 2,530 135.26$ 22 02900 78 051 Holyoke Professional LLC 911,400 17,478 934.34$ 22-47600-01-010 Holyoke Crossing LLC 1,795,000 35,900 1,919.16$ 22-13700-02-081 Holyoke Crossing LLC 136,500 2,730 145.94$ 22-47600-01-020 Holyoke Crossing LLC 2,287,700 45,004 2,405.80$ 4,470.90$ 22 85100 01 051 Seven Sixty Five LLC 156,200 2,374 126.92$ 22 44450 12 050 Seven Sixty Five LLC 156,300 3,126 167.12$ 294.04$ 22 63700 01 040 Lakeville Real Estate Management LLC 52,000 1,040 55.60$ 22 63700 01 080 Lakeville Real Estate Management LLC 309,000 6,180 330.38$ 22 63700 01 030 Lakeville Real Estate Management LLC 52,000 1,040 55.60$ 22 63700 01 020 Lakeville Real Estate Management LLC 283,800 4,926 263.34$ 704.92$ 22 44450 12 044 Gregory J./Nancy Papatola Tste Smith 422,700 6,308 337.22$ 22 44450 12 040 Gregory J./Nancy Papatola Tste Smith 108,500 2,170 116.00$ 453.22$ 22 85100 01 100 Marquette Bank Lakeville 825,700 15,764 842.74$ 22 85100 01 080 Wells Fargo Bank Minnesota 51,800 777 41.54$ 22 85100 01 070 Wells Fargo Bank Minnesota 45,400 681 36.41$ 22 85100 01 020 Marquette Bank Lakeville 114,300 2,286 122.21$ 1,042.88$ 22 13700 02 010 KNS Investments 266,300 4,576 244.62$ 22 44450 07 120 Rose Acceptance Inc 263,500 4,520 241.62$ 22 44450 10 070 Fairfield Crossing LLC 513,100 9,512 508.50$ 22 44450 10 090 Fairfield Crossing LLC 42,000 840 44.90$ 553.40$ EXHIBIT B SPECIAL SERVICE DISTRICT - DOWNTOWN Proposed Special Service Charge Allocation 6 Market Tax Capacity Special Service PROPERTY Value Value Charge PID #OWNER 2018 2018 2018 22 44450 10 110 Fairfield Place LLC % Mark Hotzler 117,800 1,767 100.00$ 22 85100 01 041 James L Richman 249,200 4,234 226.34$ 22 85100 01 071 James L Richman 12,900 258 13.78$ 240.12$ 22-44450-10-041 Veterans Plaza LLC c/o Metro Equity Management LLC 386,600 6,982 373.24$ 22-44450-10-010 Veterans Plaza LLC c/o Metro Equity Management LLC 48,700 974 52.07$ 22-44450-10-020 Veterans Plaza LLC c/o Metro Equity Management LLC 48,700 974 52.07$ 22 44450 10 030 Veterans Plaza LLC c/o Metro Equity Management LLC 69,900 1,398 74.73$ 22 44450 10 040 Veterans Plaza LLC c/o Metro Equity Management LLC 17,200 344 18.39$ 570.50$ 22 85100 01 050 20757 LLC % Metro Equity Management LLC 198,000 3,210 171.60$ 22-32190-00-011 HMWHC LLC 61,300 920 49.18$ 22-32190-01-010 HMWHC LLC 625,700 11,075 592.04$ 641.22$ 22 44450 07 183 Lakeville Family Bowl, Inc. 258,800 4,426 236.60$ 22 44450 06 101 Marcor Properties LLC 324,500 5,740 306.84$ 22-47600-02-010 H & V Apartments (Ace Hardware) 1,155,900 22,368 1,195.74$ 22-44415-01-011 Dakota County CDA 594,400 11,138 595.42$ TOTAL 257,107 13,750.00$ EXHIBIT B SPECIAL SERVICE DISTRICT - DOWNTOWN Proposed Special Service Charge Allocation 7 Actual Budget Proposed Fiscal Year Fiscal Year Fiscal Year Ended Ended Ended June, 2017 June, 2018 June, 2019 Revenues - service charges Current Levy collected 27,507$ 27,500$ 13,750$ Other revenues 6,175 - - Net service charges 33,682 27,500 13,750 Expenditures Executive Director (Wage/Payroll Tax)9,378 11,250 10,000 Tech/Auto allowance 250 300 - Postage/PO Box R ental 64 75 - Office supplies/Document Archiving 370 250 1,500 Retirements/Flowers Etc.- 20 - Professional fees (Acctg/Computer)443 265 700 Meeting expenses (Chamber/DLBA Boar - 20 - Website 543 350 350 Flower Pots 2,000 - 2,750 Brochures/marketing/Advertising 256 8,420 10,720 Sponsorships Farmers Market 400 200 - Puppet Wagon 2,000 1,000 1,000 Holiday Lighting 102 - - Holiday on Main 4,979 5,200 5,660 Block Bash 6,589 - - Promotional Events (Retail Comm. Even 52 - - Total expenditures 27,588 27,500 32,680 Net change 6,094 - (18,930) Balance - Beginning 12,836 18,930 18,930 Balance - Ending 18,930$ 18,930$ -$ EXHIB IT C