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HomeMy WebLinkAbout25-148 Resolution Imposing a service Charge for Special Service District No. 1 for Taxes Payable 2026 CITY OF LAKEVILLE RESOLUTION NO. 25-148 Resolution Imposing a Service Charge for Special Service District No. l for Taxes Payable 2026 BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota, as follows: SECTION 1. Recitals: Findin�s 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 Char�e 2A1. Amount of Service Char�e. There is hereby imposed a service charge in the amount and against the properties specified on Exhibit"A",attached hereto(the"Service Charge"). For taaces payable in 2026,the Service Charge will be$0.00. 2.02. Nature and character of Special Services—Bud� There is hereby approved a budget for Special Service District fiscal year beginning July 1,2026 through June 30,2027 as specified on E�ibit"B"a copy of which is attached hereto. 2.03. Calculation of Service Char�e. The Service Charge shall be calculated as a percentage of the net t�capacity of the taxable property located in the Special Service District. If a service chard is imposed,the minimum charge levied against a property owner shall be$100.00 and the maximum charge sha11 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 t� 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. 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 extent that (i) commerciaUindustrial 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, 2026. SECTION 3. Collection of Service Charges 1 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 taac 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. T'he due date for the Service Charge payable in the same manner as ad valorem t�es is the due date given in law for the real or personal properiy t� for the properiy 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. RecordinE 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 3'�day of November 2025. CITY OF LAKEVILLE: % ��� � Attest: Lu e M. Hellier, Mayor Ann Orlofsky ity Clerk 2 Exhibit A Map of Proposed Special Service District No. 1 N W E > S � Properties Assessed � - VV. 6 Q J J � J R 2 h �i ' J R 2 . � J 3 EXHIBIT B Actual Actual Budget Est�nate Proposed Fiscal Yr Fiscal Yr Fiscal Yr Fiscal Yr Fiscal Yr Ended Ended Ended Ended Ended 6/30/24 6/30/25 6/30/26 6/30/26 6/30/27 Revenues - service charges Current Levy collected $ - $ - $ - $ - $ - Other revenues 757 952 500 250 50 Net service charges 757 952 500 250 50 Expenditures Lakeville Cl�amber dues 165 175 165 180 200 Website 211 - 300 - 300 Flower pots 2,700 - 3,300 3,300 3,300 Sponsorships: Pan-O-Prog 2,500 - - - - Brochures/mrktg�advertisin� 30 73 790 - 780 Events: Trick or Treat - - - - - Holiday on Main 1,304 - 1,500 1,500 1,500 Total expenditures 6,91 O 248 6,055 4,980 6,080 Net change (6,153) 704 (5,555) (4,730) (6,030) Balance - beginnnZg 18,626 12,473 13,177 13,177 8,447 Balance - end'mg $ 12,473 $ 13,177 $ 7,622 $ 8,447 $ 2,417 4