Focus Area: Economy
Staff Contact: Dianna Wright
Subject: Consideration of Ordinance No. 21-05 establishing the special assessments for Lindenwood 163rd to 167th Benefit District for Streets and Storm Sewer improvements.
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Item Description:
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Consideration of Ordinance No. 21-05 establishing the special assessments for Lindenwood 163rd to 167th Benefit District for Streets and Storm Sewer improvements.
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Summary:
On October 17, 2017, the Council adopted Resolution No. 17-1069 establishing the benefit district. The resolution provided that the maximum amount of assessments to be assessed would be $3,224,309.16, of which the improvement district would pay 100% and the city-at-large would pay 0%.
Resolution No. 17-1069 was published in the Olathe News on October 28, 2017 and recorded in the Johnson County, Kansas real estate records on October 31, 2017 at Book 201710, Pages 009705-11. In addition to this notice in the real estate records, Kansas law (K.S.A. 12-6a20) requires all sellers of property subject to a benefit district to disclose to the buyer that the property is subject to special assessments.
The improvements have now been completed. The total actual project costs are $2,231,207.85, less than the estimated amount set forth in the petition and Resolution No. 17-1069. The assessment amount is $0.46/sf. For an average lot size of 9,000 sq ft, the total assessment would be approximately $4,140 ($414 annually for 10 years plus interest). Per Resolution No. 17-1069, the actual project costs have been allocated equally per square foot against all property in the benefit district.
The Public Hearing will be held immediately prior to Council’s consideration of Ordinance 21-05 at the January 19th Council meeting. Upon approval of Ordinance No. 21-05, the City will mail a second notice to property owners letting them know the ordinance has been adopted and giving property owners 30 days to prepay their assessments. If the assessment is not prepaid, then the City will issue bonds to finance any assessments that are not prepaid, and the assessments, together with interest, will be levied in equal annual installments over 10 years. Assessments will appear on property owners’ property tax bills. The first assessments will appear on tax bills due in December 2021.
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Financial Impact:
This project is 100% funded by special assessments levied on properties within the boundaries of the Lindenwood 163rd to 167th benefit district.
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Action Needed:
Approve Ordinance No. 21-05 establishing the special assessments for the Lindenwood 163rd to 167th Benefit District for Streets and Storm Sewer improvements.
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Attachment(s):
Attachment A - Ordinance No. 21-05