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Home My WebLink About16-130 - ADMIN Resolution - City Council - 2016/10/17RESOLUTION NO. 16-130 RESOLUTION APPROVING 2017 BUDGET AND SERVICE CHARGES FOR SPECIAL SERVICE DISTRICT NO. 1 BE IT RESOLVED by the City Council of St. Louis Park, Minnesota, as follows: Section 1. Recitals: Findings. 1.01 In 1996, pursuant to Ordinance No. 2067-96, the City created a special service district for certain property located with an area approximately bounded on the south by Excelsior Boulevard, on the north by 36`h Street, on the west by Highway 100 and on the east by Natchez Avenue South. The specific properties included within this area are identified on Exhibit "A" attached hereto and generally depicted on Exhibit "B" hereto and the right-of-way adjacent thereto (the "District"). The City by Resolution 96-87 also adopted a multi-year service charge through and including the year 2006. 1.02 The City has received a petition to impose a new multi-year service charge for 2007 and through and including the year 2016 from the owners of property within the District (the "Petition"). The City by Resolution 06-167 also adopted a multi-year service charge through and including the year 2016. 1.03 The City has received a petition to impose a new multi-year service charge for 2017 and through and including the year 2026 from the owners of property within the District (the 'Petition"). 1.04 The City Council has determined each of the following (a) the owners of at least twenty-five percent (25%) or more of the land area within the District have signed the Petition; (b) at least twenty-five percent (25%) of the individuals or business organizations subject to the proposed service charge have signed the Petition; (c) only owners of property located within the District have signed the Petition; (d) only owners of property classified under Minnesota Statutes, Section 273.13 as commercial, industrial, or public utility purposes, or that is vacant land zoned or designated on a land use plan for commercial, industrial, or public utility purposes, have signed the Petition; and (e) notice of a public hearing has been given and a public hearing has been held. Section 2. Adoption of 2017 Budget 2.01 2017 Budget. The 2007 Budget for Special Service District No. 1 of $116,663 is hereby approved as recommended by the Special Service District No. 1 Property Owners. 2.02 Authorized 2017 Service Charge. The authorized 2017 Service Charge for Special Service District No. 1 is $116,663 is hereby approved as recommended by the Special Service District No. 1 Property Owners and attached to this Resolution. A portion of the service charge will be paid from the District's reserves. Resolution No. 16-130 -2- Section 3. Imposition of Service Charge. 3.01 Amount of Service Charge. There is hereby imposed a service charge in the amounts and against the properties specified on the Attachment A attached hereto (the "Service Charge"). 3.02 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 2026 for taxes payable in said year. Exhibit "A" specifies the maximum cost of any improvement to be paid for in whole or in part by the Service Charge, if any; the maximum cost of operating and maintaining the improvements during the fust year and upon completion of the improvements; the proposed method and source of financing the improvements; and the maximum cost of operating and maintaining the improvements. The maximum service charge imposed in any year will be adjusted as provided in Section 3.04. 3.03 Calculation of Service Charge. The Service Charge for services related to the removal of snow and ice shall be distributed based upon the front feet of sidewalk for each parcel in the District. The Service Charge for all other costs shall be distributed based upon the area (square feet) of each parcel within the District and subject to the Service Charge. 3.04 Inflation Adjuster. The maximum service charge to be imposed in any year (the "Current Year") will increase fiom the maximum authorized budgeted amount for the year immediately preceding the Current Year (the 'Prior Year") based upon the following: The Consumer Price Index (All Items) for the Minneapolis/St. Paul Metropolitan Area, published by the United States Department of Labor, Bureau of Labor Statistics ("Index"), which is published for the date nearest the commencement of the Current Year (the "Current Year Index"), shall be compared with the Index published for the date nearest the commencement of the Prior Year (the 'Prior Year Index"). If the Current Year Index has increased over the Prior Year Index, the Service Charge shall be increased by multiplying the Service Charge by a fraction, the numerator of which is the Current Year Index and the denominator of which is the Prior Year Index. If the Index is discontinued or revised, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the Index had not been discontinued or revised. Notwithstanding increases in the Index of greater than five percent (5%), the Service Charge shall not increase from any Prior Year to any Current Year by an amount greater than five percent (5%) of the Prior Years' Service Charge. 3.05 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 3.03 if and to the extent that: (i) the front footage of sidewalks constructed on such properties increases or decreases; or (ii) a parcel increases or decreases in size by acquisition or sale. Section 4. Collection of Service Charges. 4.01 Collection. The Services Charges shall be payable and collected at the same time and in the sante maturer 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 Resolution No. 16-130 -3- regard to captured or original net tax capacity under Minnesota Statutes, Section 469.177 or to the distribution or contribution value under Minnesota Statutes, Section 473F.08. 4.02 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. 4.03 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. Service 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 5. Revenue Surplus. To the extent that the total of Service 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 year's levy of taxes and service charges shall be decreased by a corresponding amount. Section 6. 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. Seco 7. Effective Date. This Resolution shall be effective on the forty-fifth (45th) day llo ing adoption, which effective date shall be December 1, 2016. by the City Council October 17, 2016 City Manager A tFP.ct' Resolution No. 16-130 CITY OF ST. LOUIS PARK Special Service District #1 Estimated Annual Cost Per Parcel Proposed 2017 Service Charge PID No. 06-028-24-33-0019 08028-24-33-0015 06-028-24-34-0022 06-028-24-33-0014 07-028-24-22-0031 07-028-24-22-0031 07-028-24-22-0035 07-028-24-21-0004 07-028-24-21-0005 07-028-24-21-0006 07-028-24-21-0512 07-028-24-21-0513 07-02824-22-0023 07-028-24-22-0024 07-028-24-22-0032 07-028-24-22-0025 07-028-24-22-0033 07-028-24-22-0034 07-02824-22-0037 07-02824-22-0026 07-02824-22-0036 07-028-2422-0004 Notes: 2) 3) Attachment A PROPOSED Address Business 3601 Park Center Boulevard E.J. Plesko & Assoc., Inc. 3601 State Hwy No 100 South Target Corporation t-0260 3700 Monterey Drive City of St. Louis Park 3777 Park Center Boulevard Lund Food Holdings 3800 Park Nicollet Boulevard Park Nicollet Health Services 3800 Park Nicollet Boulevard Park Nicollet Health Services 3900 Park Nicollet Boulevard Park Nlcallet Health Services 4916 Excelsior Boulevard Park Nicallet Health Services 4920 Excelsior Boulevard Park Nicollet Health Services 4950 Excelsior Boulevard Zip Printing 4951 Excelsior Boulevard Park Nicallet Health Services 4959 Excelsior Boulevard Frauenshuh Companies. 4961 Excelsior Boulevard Intercity Investments, Inc. 4995 Excelsior Boulevard Intercity Investments, Inc. 5000 Excelsior Boulevard Park Nicollet Health Services 5001 Excelsior Boulevard Intercity Investments, Inc. 5050 Excelsior Boulevard Park Nicallet Health Services 5100 Excelsior Boulevard Park Nicollet Health Services 5200 Excelsior Boulevard McDonald's 5201 Excelsior Boulevard Intercity Investments, Inc. 5300 Excelsior Boulevard Tower PI. c/o Frauenshuh Companies 5400 Auto Club Way AAA Minneapolis $6,689 $6,712 TOTALS: Attachment A PROPOSED ACTUAL ACTUAL 2017 2016 2015 SERVICE SERVICE SERVICE CHARGE CHARGE CHARGE $4,268 $4,322 $4,317 $9,281 $9,355 $9,348 $23,066 $22,775 $22,802 $9,794 $9,822 $9,820 $5,137 $4,990 $5,003 $1,140 $1,108 $1,111 $3,625 $3,694 $3,687 $599 $603 $602 $405 $407 $407 $484 $493 $492 $2,689 $2,772 $3,904 $1,145 $1,139 $1,139 $555 $556 $556 $750 $747 $748 $671 $675 $675 $516 $517 $517 $3,003 $3,005 $3,004 $1,702 $1.688 $1,690 $1,186 $1,213 $1,210 $6,689 $6,712 $6,710 $5,256 $5,320 $5,314 $4,711 $4,759 $4,755 $86,672 $86,672 $86,672 The proposed 2017 service charge calculations are based upon the same methodology/ formulas used for the initial service charge collection. a) Commercial sidewalk snow removal charges are on a front footage basis. b) All other services charges are based on the parcel's square foot area basis. The 2017 proposed budget is $116,663, the same as in 2016. The 2017 proposed service charge includes a transfer of approximately $30,000 from reserves to lower the service charge and maintain a proper fund balance.