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HomeMy WebLinkAbout20121015 - VI-04 Council Action Requested: Council is requested to approve abatement of assessments to properties within the 2012 Infrastructure Improvements project area. Background Information: Twenty-two (22) applications for assessment abatement were filed with the Dakota County Community Development Agency (CDA) by homeowners in the 2012 Improvement Program project areas. The CDA determined that a total of nineteen (19) properties qualified for abatement, with nine (9) properties qualifying as low income households, and ten (10) properties qualifying as moderate income households. The low income households were assessed a total of $34,185.00, and the moderate income households assessed a total of $47,850.00. Financial Impact: The combined total of assessments against qualifying low and moderate income households is $82,035.00, and the total Community Development Block Grant (CDBG) budget set aside for assessment abatement for these projects is $58,975.00. 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. Funding is available to provide full abatement for all low income qualifying households and for slightly more than 51% of each assessment to moderate income households. Overall, about 71% of the assessment amounts for the qualifying properties would be abated by CDBG funds. Staff Recommendation: It is staff’s recommendation that the Council approve a total abatement rate of an even 51% for qualifying moderate income households. This will preserve a very small amount in the account to apply to future years’ assessment abatement, yet still provide abatement to moderate income households similarly to other recent projects. Attachments: A listing of the properties eligible for assessment abatement and the amounts recommended to be abated, is attached for City Council approval. To: Honorable Mayor and City Council From: Nick Egger – City Engineer Date: October 5, 2012 Re: Approval of Assessment Assessment Abatement – 2012 Infrastructure Improvements 2012 Improvement Program Assessment Abatement Qualifying Households Low Income Households (100% Abatement) Project PID Assessment Amount Abatement Amount 2012-1, 2012 Infrastructure Improvements 198815013080 $1,800.00 $1,800.00 198815014100 $1,800.00 $1,800.00 198815002060 $3,060.00 $3,060.00 195780003040 $4,200.00 $4,200.00 195780002110 $4,200.00 $4,200.00 195780003090 $4,260.00 $4,260.00 191360009030 $4,380.00 $4,380.00 198815006060 $4,740.00 $4,740.00 198815012051 $5,745.00 $5,745.00 Total Qualifying Low Income Abatement $34,185.00 Moderate Income Households (51% Abatement) Project PID Assessment Amount Abatement Amount 2012-1, 2012 Infrastructure Improvements 196340002141 $7,980.00 $4,069.80 191360008031 $2,385.00 $1,216.35 190380004030 $3,600.00 $1,836.00 198815008081 $5,280.00 $2,692.80 198815012020 $5,505.00 $2,807.55 191360007060 $4,800.00 $2,448.00 195780002100 $4,320.00 $2,203.20 198815002080 $5,400.00 $2,754.00 196340003120 $4,980.00 $2,539.80 198815012060 $3,600.00 $1,836.00 Total Qualifying Moderate Income Abatement $24,403.50 TOTAL ABATEMENT FOR ALL PROJECTS $58,588.50