Special Assessments

Notification of Potential Street and Utility Improvement Projects

The City of St. Joseph utilizes a 2-step process in the public hearing phase for potential street and utility improvement projects.
 
First, an improvement hearing is held for the affected property owners to review the merits of the proposed project. public informational meeting is held.  The Engineer provides an overview of the proposed improvements and the residents have an opportunity to ask questions and provide their input regarding the need for the improvements, the scope of the project or raise a particular point of concern.  The Engineer provides a planning level estimate of costs for the improvements. If the improvements are partially assessed to the property owners, an estimate of what the assessed cost to the property owner is given to them.   After receiving the feedback from residents at improvement hearing, the City Council will consider ordering the improvements, design and specifications, and let bids for the improvements.  The City Council will also consider hiring an appraiser to opine on the increased market value of the improvements to the property owners.  The value is used to determine the maximum amount the City can assess to the property owners.

The second hearing is called the assessment hearing.  The City Council will determine the final costs to be assessed using the bid costs and maximum allowed by the assessment policy and appraisal report (whichever is lower).  The interest rate is set at 1-2% above the estimated bond rate for the project.  Notices are mailed to each property owner listed on the assessment rolls prepared by the Engineer.  The Engineer provides an overview of the project, project costs and how the assessments were determined at the public hearing. Property owners are given the opportunity to ask questions regarding the assessments.  A property owner may file a written dispute of the assessment before or during the assessment hearing.  The assessment dispute must be filed in district court to be further considered.  After the assessment hearing the City Council may adopt the levied assessments for the terms specified.  

Assessment Payment Options

City projects are assessed according to the current assessment policy and based on current assessment rates. Each project varies in cost depending on many factors, such as existing conditions, proposed improvements, and number of properties. Final assessments are determined at the assessment hearing. Contact the Finance Department for the current assessment balances at 320-363-7201.
 
Detailed information concerning assessment payment options is mailed to property owners at the time the assessments are levied. Payment options include:

  1. Prepayment: Payment of all or a portion of the assessment within 30 days of the adoption of the assessment without interest charge. After 30 days, but before November 15th, all of the assessment plus interest computed from the date of Council resolution adopting the assessment roll to date of payment may be made to the City of St. Joseph.  
  2. Installment Payments: Include the assessment with the property taxes. On or about November 15th, unpaid assessments are certified to Stearns County Auditor for collection. Payments are then made in annual installments over a 10-year, 15-year, or 20-year period. These payments are payable as part of your property taxes to Stearns County.  Stearns County adds the subsequent year interest on November 15th of the preceding year.  If a property owner wants to pay off any remaining portion of their assessment before the end of the installment period, contact city offices for the balance due. 

Assistance for Low/Moderate Income Property Owners

Property owners who have low/moderate incomes may qualify for assessment reduction through the City's Assessment Stabilization Program. The property must be owner-occupied and homesteaded. Assessments must be at least $3,000 to qualify. Eligible property owners whose income falls below the following limits shall be considered low income property owners:

Income Limit

The following is the income limit for how many people live in your household:

1 - $52,400

2 - $59,850

3 - $67,350

4 - $74,800

5 - $80,800

6 - $86,800

7 - $92,800

8 - $98,750

Contact city offices at 320-363-7201 before September 1st to apply for the deferment.

Deferment of Special Assessments - Deferred Assessment Form

A homesteaded property whose owner is 65 years of age or older or retired by virtue of permanent and total disability, and for whom it would be a hardship to make payments, or for any homesteaded property owned by a person who is a member of the Minnesota National Guard or other military reserves who is ordered into active military service, as defined in Minnesota Statutes, Section 190.05, subdivision 5b or 5c, as stated in the person’s military orders, for whom it would be a hardship to make the payments, may be eligible for a deferment of special assessments.

 In order to defer the assessment, the average annual principal and interest installment due on the assessment must be in excess of 3% of current annual income. The principal amount of the assessment must be at least $3,000 to consider a deferment. Contact city offices at 320-363-7201 for further information on this program.