HomeMy WebLinkAboutVI-05 - Assessment Abatement for 2018 Neighborhood Infrastruture Improvements Project
City Council Memorandum
To: Mayor Hicks & City Council Members
From: Nick Egger – Public Works Director
Date: November 6, 2018
Item: Approve Assessment Abatement for 2018 Neighborhood Infrastructure Improvements
Council Action Requested:
Council is requested to approve abatement of assessments to properties within the 2018 Neighborhood
Infrastructure Improvements project area.
Background Information:
The assessment abatement program provides federal funding through the Dakota County Community
Development Agency to the City for assistance with financing assessments to owner-occupied low and
moderate income households. This year’s reconstruction program in part of the neighborhood north of
Highway 55 and just a few blocks west of Vermillion Street impacted 108 total properties, 85 of which are
owner-occupied residential dwellings. During this year’s process, fourteen (14) applications for assessment
abatement were filed with the Dakota County Community Development Agency (CDA). This represents about
16.5% of owner-occupied households. The agency has completed review, and determined that nine (9)
properties qualified for assistance. The typical application rate falls between 10-15% of all owner-occupied
residential properties impacted.
The CDA determined that six (6) households that qualified were low income households, and three (3)
households that qualified were moderate income households. These properties were assessed a total of
$44,697.65
Financial Impact:
The combined total of assessments against qualifying households is $44,697.65, and the total Community
Development Block Grant (CDBG) budget set aside for assessment abatement for this project was $107,644.47.
Federal requirements call for 100% abatement of low income households, and the City can choose to fund
anywhere from 0% to 100% abatement for the qualifying moderate income households.
Staff Recommendation:
This year, funding is available to provide full abatement for all qualifying households, while still leaving a
balance of about $63,000 that the City will be able to apply towards future assessment abatement or other
CDBG qualifying needs. It is staff’s recommendation to fund 100% abatement to all qualifying property
owners.
Attachments:
A listing of the properties eligible for assessment abatement and the amounts recommended to be abated is
attached for City Council approval.
VI-05
2018 Improvement Program Assessment Abatement
Qualifying Households
Low Income Households (100% Abatement)
Project PID
Assessment
Amount
Abatement
Amount
2018-1 – 2018 Neighborhood
Infrastructure Improvements
191050043060 $5,854.65 $5,854.65
193215071020 $5,515.25 $5,515.25
191050043080 $5,600.10
$5,600.10
191050030140 $5,600.10
$5,600.10
193215042070 $6,109.20 $6,109.20
193215071030 $3,818.25 $3,818.25
Total Qualifying Low Income Abatement $32,497.55
Moderate Income Households (100% Abatement)
Project PID
Assessment
Amount
Abatement
Amount
2018-1 – 2018 Neighborhood
Infrastructure Improvements 191050043091 $5,600.10 $5,600.10
193215067050 $999.90 $999.90
191050043030 $5,600.10
$5,600.10
Total Qualifying Moderate Income Abatement $12,200.10
GRAND TOTAL ABATEMENT $44,697.65
VI-05