EDINA, Minn. - The cracks in the pavement of one Twin Cities suburb are nothing compared to the cracks in homeowners budgets. That is the position of some homeowners in Edina.
"Our assessment policy requires our residents to pay 100 percent for the street surface that runs by their home," said Scott Neal, Edina City Manager. "They do not pay for the cost of curb and gutter or the sidewalk or the trail or the water or sewer utilities that lie under the streets."
Nonetheless, the assessments for some homeowners in Edina are as high as $23,000. Many residents were stunned to see the estimates from the city for scheduled reconstruction of their streets. Their protests are prompting Edina officials to reexamine the assessment policy.
"There are a lot of ways to skin this cat and this is just one of them," said Neal. "I think we will be taking another look at it soon."
Creek Valley Estates homeowner Dan Ballard received notice of a $9,000 assessment for the street in front of his property. Ballard surveyed his neighbors and gathered petitions opposing the streets project.
"I thought our tax base for the property taxes covered the roads. So, when I started this, my whole presentation was based on the fact that we did not need new streets," commented Ballard. "I was made aware the other neighborhoods had already paid that assessment for their streets. So, frankly, it would be unfair for the people who have already paid the assessment to now have an increased tax base to cover all the neighborhoods in the Edina area."
Ballard thinks homeowners who have already paid the assessments might have to be given a rebate before the city tax rate could rise to pay for street reconstruction.
Minnesota cities have a myriad of policies for funding street repairs. "From general taxes to special assessments, fees, cities are pretty creative in how they finance street repairs," said Michael Rardin, St. Louis Park Director of Public Works. "We specifically tried to stay away from special assessments because they get large and they are controversial."
According to Rardin, St. Louis Park homeowners pay a small monthly fee through their gas and electric bills for street repairs. However, he admits that if major street renovations were required, the fees collected would not be sufficient to cover the costs. A special assessment might be needed.
Wayzata is an example of a Minnesota city that does not assess its residents for street repairs. The city is considering added assessments soon, however, since the population of fewer than 5,000 makes utilizing property tax increases unfeasible. Wayzata has been paying for street repairs out of its general fund, but City Engineer Mike Kelly believes that system may have to change as the city enters a new cycle of street repairs.
Minnesota cities are required by statute to provide notice of up to two years of any impending assessment to homeowners. Such impending assessments must be included in purchase agreements for home buyers, preventing unhappy financial surprises after closing on a home.
However, the assessments are usually only estimates until the actual construction contracts are signed and the final assessments are sent to homeowners.
"We are required by statute to create a not-to-exceed number. So, it is very important for the rest of the taxpayers in the community that we not underestimate what that not-to-exceed number is. Because if we do underestimate, then it is all the other taxpayers in the city that are kind of 'on the hook' for that mistake," explained Neal.
Neal insisted that the Edina City Council's position is "one of trying to be a good steward" of the city's infrastructure and the "public purse."
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