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Seven residents expressed objections to proposed assessments for street reconstruction, and sanitary sewer, watermain and storm sewer work completed in 2023 and 2024 during a public hearing held during the Oct. 20 Pipestone City Council meeting.
The final assessment roll shows that the owners of 107 properties were assessed a total of $1,148,718.69 for street and sanitary sewer, and in some cases driveway, improvements. The assessments range from $1,113.50 to $21,978.87 and the average assessment is about $10,735.69.
Street assessments are based on the length of frontage along the street that was improved and were capped at $10,000. Corner properties that had improvements on streets on two sides had a maximum assessment of $15,000. Sanitary sewer assessments were $2,500 per lot and driveway assessments were by choice of the resident and varied by size.
Those who objected to their assessments cited a variety of reasons. Some questioned assessments on lots that were empty, part of one larger property, not buildable, or had no water or sewer access. City Engineer Travis Winter and Mayor Dan Delaney said some of those situations could be looked at and potentially adjusted. Other residents questioned how much the city is able to assess.
According to state statute, “The cost of any improvement, or any part thereof, may be assessed upon property benefited by the improvement, based upon the benefits received, whether or not the property abuts on the improvement and whether or not any part of the cost of the improvement is paid from the county state-aid highway fund, the municipal state-aid street fund, or the trunk highway fund.”
Jesse Post, who was assessed for multiple properties in the project area, referred to information from the Minnesota House of Representatives Research Department, which indicates that “The assessment amount charged to the property cannot exceed the amount by which the property benefits from the improvement, as measured by the increase in the market value of the land due to the improvement.” It goes on to list other requirements for a special assessment to be valid and indicate that “A special assessment that does not meet these requirements is an unconstitutional taking.”
“I have properties that their market value is $30-$40,000; I have a $10,000 assessment against that,” Post said. “I really don’t believe I’m gaining 25 percent of my market value for having a different sidewalk put in and a new curb and gutter. I get there’s water, I get there’s stuff, I get there’s some value to that.”
City Attorney Jason Hill said the city tried to address previous concerns about special assessment amounts with its new assessment policy that was adopted earlier this year. That policy identifies how assessments are determined and allows the city council to adjust assessments if it determines that an assessment does not reflect the benefit received by the property owner.
Danielle Evers asked what years of assessed property value the city was looking at to determine the change in value from the improvements. Winter said the city uses estimated market values from the county as a gauge, but that those estimated values aren’t always updated. He said the city does not have appraisals done before and after infrastructure improvements.
Some residents also expressed concerns regarding work that was done during the project, including areas of sidewalk that are heaving, drop offs along sidewalks, smaller parking areas and others.
Delaney said the final tax assessment roll will be considered by the City Council during its Nov. 3 meeting. Temporary City Administrator/City Clerk Stephanie LaBrune said residents have until Nov. 21 to pay off all or part of their assessments before they are added to their property taxes with 5 percent interest over a period of 10 years.
In other business, the City Council approved:
•A resolution assessing property owners for unpaid municipal services and utilities. Thirty-eight people will be assessed a total of $41,246.38 with the amounts ranging from $110.55 to $7,361.02 for unpaid garbage, lawn mowing, sanitary sewer, utility and other bills. LaBrune said the late bills can be paid without interest until Nov. 21. After that, the assessment roll will be certified and sent to the Pipestone County Auditor’s Office to be added to taxes with 8 percent interest or a $25 fee, whichever is greater.
•A request from the Lights at the Lodge Committee to put up signs with QR codes at Hiawatha Pageant Park that would allow people to donate to the committee. The funds would then be directed to a nonprofit organization that would donate them to the city for the Lights at the Lodge event and the City Council would accept the donations by resolution. Cities cannot solicit donations, but can accept them, which is why the Lights at the Lodge Committee would do the fundraising.