7.1 Resolution No. 22-8053 Repealing Resolution 98-5276 establishing installment time periods for special assessmentsCITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
05/23/2022 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO: 7
Community & Development BY:
ITEM 1p—
Services FINAL APPROVAL:
NO: Planning Division
Page t BY: Lauren Driscoll BY:
ITEM: Resolution No. 22-8053
Consider the repeal of Resolution 98-5276 which established a policy for the installment time period
allowed for the payment of special assessments.
BACKGROUND:
In 1989, the Salina City Commission adopted Resolution No. 89-4066 which established a
comprehensive policy for the use of special assessment financing of public infrastructure
improvements. This policy did not include a formal policy on the length of special assessments for
subdivision improvements but the City of Salina's longstanding practice at that time was to use a 10
year bonding period which corresponded to the standard period for General Obligation Bond issuance.
In 1998, this practice was amended in the form of Policy Resolution 98-5276 to provide for either a 10
year or 15 year installment period. Sections 1 and 2 of this resolution read as follows:
Section 1. It shall be the general policy of the City of Salina to provide for special assessments
to be paid in either ten (10) annual installments, or fifteen (15) installments.
Section 2. At the time of petitioning for improvements under K.S.A. 12-6a01, et seq., the
petitioners shall indicate a preference for a ten year of fifteen year installment payment period.
The Governing Body shall make the determination as to the installment payment period in its
resolution authorizing the improvement.
This Policy Resolution gave developers the option of requesting and the City Commission the
discretion to approve a 15 year repayment schedule instead of a 10 year payment schedule. Virtually
all developers chose the 15 year payment period.This policy was carried forward in Resolutions No
17-7507 and 18-7556 which amended and restated the City's general special assessment process and
policy. Section 12(b) of this policy reads as follows:
(b) Maximum Term of Bonds. The term of bonds issued by the city to finance improvements
may extend up to twenty (20) years, but absent special circumstances should not exceed
fifteen (15) years.
Resolution No.17-7507 was a comprehensive rewrite of the 1989 Special Assessment policy and
created a two step process for requesting and receiving approval to utilize special assessment
financing. This policy was amended in 2018 to delete all formulas and percentages and to allow 100%
financing of public infrastructure improvements. The two step approval process was retained.
Nature of Current Request
Staff has received a written request from Stone Lake Development, LLC (Kelly Dunn, Craig Piercy
and Tod Roberg), Magnolia Hills Inc. (Stan Byquist and Kelly Dunn) and other residential developers
requesting that the installment payment period for special assessments be increased from the current
15 years to 20 years. Staff reviewed this request to determine whether any change to the City's current
AGENDA SECTION
NO:
ITEM
NO:
Page 2
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
05/23/2022 4:00 P.M.
ORIGINATING DEPARTMENT
Community & Development
Services
Planning Division
BY: Lauren Driscoll
FISCAL APPROVAL:
BY:
FINAL APPROVAL:
BY:
special assessment policy would need to be made to approve this request. Staff determined that it
would not necessitate an amendment of the current policy but did determine there was a prior
resolution (Resolution No. 98-5276) addressing the subject that had never been amended or repealed.
Staff Comments / Analysis
Staff would note that state special assessment law allows up to 20 years as a special assessment
payment schedule so approval of this request would not be contrary to or require a change to State
law. It is a local policy decision for the City Commission. Staff would further note that the current policy
gives the City Commission the discretion to approve 20 year financing on a case by case basis by
citing the special circumstances that support a 20 year repayment schedule.
Residential developers are experiencing shortages and large cost increases in materials used to install
public infrastructure. These increased costs are passed onto homebuyers in the form of increased
special assessments which are regularly exceeding $40,000 per lot. The residential developers
believe that an extended payment period could help reduce homebuyers' annual payments.
The payment period for special assessments is one of the factors determining the amount of the
annual special assessment payment. Staff has reviewed the impact of adding the option of using a 20
year payment period. Just as with borrowing for a vehicle or a home, a longer repayment period will
carry a slightly higher interest rate and require additional total interest over the life of the "loan," but
will also lead to a lower monthly/annual payment. Again, just as with a vehicle or a home, some people
prefer a shorter payback period, and some a longer period. An amortization table showing the
differences between 15 and 20 year repayment periods on a $35,000 special assessment is attached
to this report
The longer repayment period provides an opportunity for developers to reduce their holding costs
while individual lots in a subdivision sell over a period of years and would also allow new homeowners
to slightly lower their annual payments.
The estimated life of public street improvements is 30 years and the estimated life cycle of public utility
lines is 50 years.
FISCAL NOTE:
Allowing a 20 year special assessment period in a year in which the City has no 20 years G.O. Bonds
may add some administrative complexity. However, staff believes this is manageable. Staff does not
believe this change would increase the risk of nonpayment of specials.
COMMISSION ACTION:
Staff has identified the following options for the City Commission's consideration:
Approve a motion repealing Policy Resolution No. 98-5276 which has been superceded by the
language in Section 12(b) of Resolution No. 18-7556.
AGENDA SECTION
NO:
ITEM
NO:
Page 3
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
05/23/2022 4:00 P.M.
ORIGINATING DEPARTMENT
Community & Development
Services
Planning Division
BY: Lauren Driscoll
FISCAL APPROVAL:
BY:
FINAL APPROVAL:
M
2.) Approve a motion repealing Resolution No.98-5276 and direct staff to modify the language in
Section 12 (b) of Resolution No. 18-7556.
3.) Postpone consideration of this item to a future meeting date to allow the requestors or staff to
provide Commissioners with additional information.
4.) Do not act to repeal Resolution No.98-5276 at this time.
Staff does not believe the City's current policy needs to be amended but that Policy Resolution No.98-
5276 should be repealed to create a historical record that it is no longer in force. This will avoid the
potential for having conflicting policy resolutions dealing with special assessment payment periods in
effect at the same time.
Attachments: Written request received
Resolution 98-5276
Resolution 18-7556
Resolution 22-8053 (DRAFT)
CC: Kelly Dunn, Craig Piercy, Tod Roberg, Stan Byquist
April 14'h, 2022
Lauren Driscoll
Director of Communication Development Services
City -County Building
300 W. Ash St.
Salina, KS 67401
Dear Lauren Driscoll
RESIDENTIAL INFRUSTRUCTURE SPECIAL ASSESMENTS
Please consider this a formal request from local residential developers to change the term of the
special assessments. We ask that the term be extended to a maximum of twenty years. The
current term is a maximum of fifteen years.
Approximately fifteen years ago, the term was extended from ten years to fifteen years. This was
due to the rising costs of infrastructure work and at that time the costs were averaging
$20,000.00 per lot. We currently are now seeing the infrastructure costs at or exceeding
$40,000.00 per lot. With the increased infrastructure costs, other local Kansas cities have
increased their special assessment term to help area developers.
Again, we are requesting that the City of Salina do the same and extend the special assessment
term to twenty years to help your local residential developers spread the increased costs over a
longer period of time.
Sincerely,
Magnolia Hills � s
e
Ke}ly Stan Byquest
Stone ake DOlopment
T oberg Crai�Pi rcy
Gran ie
41
Shepar
I—
Lake View
Stan Byquist
Dan
i[ Valley Development
Development
OBJ QA
Ceda dg ev o went
Kevin Cool a of
Attachment
Special Assessment
15 and 20 year Payment Scenarios
Using 7% as the interest rate the annual special assessment
payment on a $25,000 assessment would be:
15 year - $3,147.94 per year
20 year - $2,575.36 per year
15 Year Detail
Loan Information
Loan Amount
35,000.00
Annual Interest Rate
4.00%
Term of Loan in Years
15
First Payment Date
12/20/2022
Payment Frequency
Annual
Compound Period
Annual
Payment Type
End of Period
Rounding
on
Annual
1,181.75
Payment
3,147.94
Amortization Schedule
Due Date Payment Due Additional Payment
Summary
Rate (per period) 4.000%
Total Payments 47,219.07
Total Interest 12,219.07
Est. Interest Savings -
Interest
Principal Balance
12/20/22
3,147.94
1,400.00
1,747.94
33,252.06
12/20/23
3,147.94
1,330.08
1,817.86
31,434.20
12/20/24
3,147.94
1,257.37
1,890.57
29,543.63
12/20/25
3,147.94
1,181.75
1,966.19
27,577.44
12/20/26
3,147.94
1,103.10
2,044.84
25,532.60
12/20/27
3,147.94
1,021.30
2,126.64
23,405.96
12/20/28
3,147.94
936.24
2,211.70
21,194.26
12/20/29
3,147.94
847.77
2,300.17
18,894.09
12/20/30
3,147.94
755.76
2,392.18
16,501.91
12/20/31
3,147.94
660.08
2,487.86
14,014.05
12/20/32
3,147.94
560.56
2,587.38
11,426.67
12/20/33
3,147.94
457.07
2,690.87
8,735.80
12/20/34
3,147.94
349.43
2,798.51
5,937.29
12/20/35
3,147.94
237.49
2,910.45
3,026.84
12/20/36
3,147.91
121.07
3,026.84
0.00
20 Year Detail
Loan Information
Loan Amount 35,000.00
Annual Interest Rate 4.00%
Term of Loan in Years 20
First Payment Date 12/20/2022
Payment Frequency Annual
Compound Period Annual
Payment Type End of Period
Rounding on
Annual Payment 2,575.36
Amortization Schedule
No. Due Date Payment Due Additional Payment
Summary
Rate (per period) 4.0000/6
Total Payments 51,507.28
Total Interest 16,507.28
Est. Interest Savings -
Interest Principal Balance
1
12/20/22
2,575.36
1,400.00
1,175.36
33,824.64
2
12/20/23
2,575.36
1,352.99
1,222.37
32,602.27
3
12/20/24
2,575.36
1,304.09
1,271.27
31,331.00
4
12/20/25
2,575.36
1,253.24
1,322.12
30,008.88
5
12/20/26
2,575.36
1,200.36
1,375.00
28,633.88
6
12/20/27
2,575.36
1,145.36
1,430.00
27,203.88
7
12/20/28
2,575.36
1,088.16
1,487.20
25,716.68
8
12/20/29
2,575.36
1,028.67
1,546.69
24,169.99
9
12/20/30
2,575.36
966.80
1,608.56
22,561.43
10
12/20/31
2,575.36
902.46
1,672.90
20,888.53
11
12/20/32
2,575.36
835.54
1,739.82
19,148.71
12
12/20/33
2,575.36
765.95
1,809.41
17,339.30
13
12/20/34
2,575.36
693.57
1,881.79
15,457.51
14
12/20/35
2,575.36
618.30
1,957.06
13,500.45
15
12/20/36
2,575.36
540.02
2,035.34
11,465.11
16
12/20/37
2,575.36
458.60
2,116.76
9,348.35
17
12/20/38
2,575.36
373.93
2,201.43
7,146.92
18
12/20/39
2,575.36
285.88
2,289.48
4,857.44
19
12/20/40
2,575.36
194.30
2,381.06
2,476.38
20
12/20/41
2,575.44
99.06
2,476.38
0.00
RESOLUTION NUMBER 98-5276
A RESOLUTION ESTABLISHING POLICY FOR THE INSTALLMENT TIME
PERIOD ALLOWED FOR THE PAYMENT OF SPECIAL ASSESSMENTS.
WHEREAS, the City of Salina regularly uses the General Improvements and
Assessments Law, K.S.A 12-6a01, et seq., for the construction of certain public improvements to
serve subdivisions; and
WHEREAS, K.S.A. 12-6a10, governing the payment period for special assessments
allows those payments to be made in not more than 20 equal annual installments, as determined by
the governing body; and
WHEREAS, the City of Salina wishes to formalize its policy regarding special
assessment installment time periods.
SO NOW, THEREFORE, BE IT RESOLVED, by the Governing Body of the City
of Salina, Kansas:
Section 1. It shall be the general policy of the City of Salina to provide for special
assessments to be paid in either ten (10) annual installments, or fifteen (15) annual installments.
Section 2. At the time of petitioning for improvements under K.S.A. 12-6a01, et
seq., the petitioners shall indicate a preference for a ten year or fifteen year installment payment
period. The Governing Body shall make the determination as to the installment payment period in
its resolution authorizing the improvement.
Section 3. This resolution shall be in full force and effect from and after its
adoption.
Adopted by the Board of Commissioners and signed by the Mayor this 18" day of
May, 1998.
(SEAL)
Peter F. Brungardt, Mayor
ATTEST:
R. Weber, City Clerk
1 II RESOLUTION NO. 18-7556
A RESOLUTION AMENDING AND RESTATING THE POLICY FOR THE
d
FINANCING OF PUBLIC IMPROVEMENTS THROUGH THE USE OF
IMPROVEMENT DISTRICTS UNDER THE KANSAS GENERAL IMPROVEMENT
AND ASSESSMENT LACY IN THE CITY OF SALINA, KANSAS; AND REPEALING
s
RESOLUTION NO. 17-7507.
Section I. Purpose. The Kansas general improvement and assessment laws provides a
means of financing the cost of public improvements which confer a special benefit upon property
within a definable area of the city ("improvement district') through special assessments upon the
property within the improvement district ("special assessment financing"). This resolution states
the policy of the city in its utilization of special assessment financing.
Improvement districts may be created by the governing body in one of two %ways:
(1) In response to a petition signed by the number required by state lav of owners of
record of property liable for assessment under the proposal -2 or
(2) The governing body may initiate the creation of an improvement district for any
improvement authorized by state law pursuant to the notice and public hearing
procedures set forth in state law and subject to protest by the owners of record of
property within the proposed improvement district as permitted by state last:° The
governing body may initiate the creation of an improvement district for sanitary
and/or storm water sewer improvements without a petition, notice and public hearing;
or protest as authorized by state law.5
This policy is intended to apply primarily to the creation of improvement districts and special
assessment financing initiated in response to a petition of property owners. However, the
provisions of Section 8 of this policy are also intended to provide guidance when the governing
body initiates creation of an improvement district without a petition.
Section 2. Definitions. For purposes of this policy, the following words and phrases shall
mean:
(a) "Acquire" means the acquisition of property or interests in property by purchase, gift;
condemnation or other lawful means, including improvements authorized to be
constructed under the act, and may include the acquisition of existing property and
improvements already owned by the city and previously financed by the issuance of
revenue bonds, such acquisition to constitute a refunding of such revenue bonds and no
additional refunding authority shall be required but nothing herein shall be construed to
II require a holder of any such revenue bonds to surrender bonds for refunding unless the
provisions of such bonds allow the redemption thereof.6
(b) "Act' means the Kansas general improvement and assessment law.'
1
(c) "City" means the City of Salina; Kansas.
(d) `Commercial/industrial` means any non-residential development project.
(e) "Residential' means a development project involving the construction or reconstruction
s
of structures designed or intended to be used for residential occupancy by one or more
H families or households, including, but not limited to single-family, two-family. and multi-
family dwellings.
(f) "Comprehensive plan" means the official public document adopted by the governing
body as a policy guide to decisions about the physical development of the community,
and amendments thereto.
(g) "Contiguity" means the extent to which a proposed improvement district encourages
development on infill sites within the built-up city, or on greenfield sites that are adjacent
to development within the corporate boundaries and can feasibly and affordably access
infrastructure.
(h) "Consultant` means engineers, architects, planners, attorneys and other persons deemed
competent to advise and assist the governing body in planning and making of
improvements!
(i) `Cost' means all costs necessarily incurred for the preparation of preliminary reports, the
preparation of plans and specifications, the preparation and publication of notices of
hearings, resolutions, ordinances and other proceedings, necessary fees and expenses of
consultants and interest accrued on borrowed money during the period of construction
together with the cost of land. materials; labor and other lawful expenses incurred in
planning and doing any improvement and may include a charge of not to exceed 5% of
the total cost of an improvement or the cost of work done by the city to reimburse the city
for the services rendered by the city in the administration and supervision of such
improvement by its general officers, any necessary reserves and where property and
improvements already owned by the city and previously financed by the issuance of
revenue bonds is acquired the cost shall include not to exceed the principal amount of
such outstanding revenue bonds plus the amount of matured interest, interest maturing
within 90 days, and the amount of any call premium or purchase premium required.9
Q) "Delinquent' means special assessments or ad valorem taxes that are unpaid as of May
10 (the date the second one-half real estate taxes are due) of the year following the
immediately preceding November I (the date upon which the special assessments or ad
valorem taxes became a lien upon the real estate assessed or taxed pursuant to state law).
(k) "Financial interest` shall mean the ownership of a legal or equitable interest in real estate.
either directly or indirectly through one or more intermediary business entities, in excess
of 33.33%.
(1) "Housing study" means the report prepared by RDG Planning R Design. titled UVE
Sawa.: A STRATEGIC Houst\G PLAN. dated March 2016.
7
(m)"Improvement" means any type of improvement made under authority of the act and the
singular may include the plural, and includes re -improvement of a prior improvement.10
(Examples of improvements for which the city has commonly utilized special assessment
financing include streets; sidewalks, storm drainage, water distribution; and wastewater
collection improvements.)
N
B (n) `Improvement district" means:
(1) an area deemed by the governing body to be benefited by an improvement and subject
to special assessment for all or a portion of the cost of the improvement; or
(2) an area described in a petition submitted in accordance with subsection (c) or (d) of
K.S.A. 12-6a04, and amendments thereto, and subject to a special assessment for all
or a portion of the cost of the improvement.] ]
(o) "Local street' means a two-way street that meets the requirements of Salina Code Section
Section 36-74(a)(1)(a), and amendments thereto.
(p) "Mixed with other housing price points and/or uses' means housing forms or project
designs that incorporate:
(1) higher -density products that have proven successful in similar markets, including
small -lot single-family detached or attached configurations, to�vrthomes, and street -
oriented multi -family development, with gross densities at or above six (6) units per
acre:
(2) mixed housing environments that integrate different types and price points into
coherent developments; or
(3) mixed-use projects that integrate housing, services, retail, and/or employment.
(q) "New development' means a residential or commercial/industrial development project
involving construction. reconstruction, or structural alteration of structures in a proposed
improvement district if. at the time of the petition for the improvement district, at least
35% of the properties (by lot) liable for assessment under the proposal are (1)
undeveloped, as evidenced by the non -issuance of a certificate of occupancy for a
principal building, or (2) under common ownership.
(r) "Newspaper' means the Salina Journal. 12
(s) 'Principal" means any person or entity which owns a legal or equitable interest in a
petitioner, either directly or indirectly through one or more intermediary business entities,
® in excess of 33.33%.
(t) "Petitioner" means:
(1) a majority of the resident owners of record of property liable assessment tinder the
proposal:
z
a
(2) the resident owners of record of more than one-half of the area liable for assessment
y under the proposal: or
(3) the owners of record, whether resident or not, of more than one-half of the area liable
to be assessed under the proposal.13
(u) "Reinvestment area' means the "area of change" as designated by the governing body.
(v) "Street' means street, alley, avenue, boulevard, or other public way or any part thereof. 14
(w) "To improve' means to construct, reconstruct, maintain, restore, replace, renew, repair,
install, equip, extend or to otherwise perform any work which will provide a new facility
or enhance, extend or restore the value or utility of an existing facility. 15
Section 3. Application Process and Contents.
(a) The application procedure is established under the authority of the city manager. 'Be
applicant is strongly encouraged to participate in a pre -application conference with city
staff to preview the application prior to its submission, in order to ensure adequate time to
address any deficiencies or regulatory/legal issues.
(b) The application shall contain the information listed in Exhibit A and a petition in
substantially the form shown in Exhibit B.
(c) After submission of the application and related fees, city staff shall review the application
for conformity with city policies and requirements. If, following the staff review, or at
any other time during the application process, the city requests additional information, the
applicant must provide any and all supplemental information requested.
Section 4. Consideration of Petitions.
(a) Petition Information. All improvement district petitions submitted for consideration must
be substantially in the form attached as Exhibit B to this policy and must comply with
state law. 16
(b) Procedure for Review of Petition and Creation of Improvement District. Upon the filing
of a valid petition accompanied by an application and other required information. the
governing body may proceed to consider the petition and accompanying application.
approve the petition, authorize the construction of the improvements, as follows:
(1) Following city staff review and confirmation that the petition, application and any
other required information conform to the requirements of this policy and state law.
'J
the city manager or the city manager's designee may direct the city engineer to
prepare a preliminary engineering estimate and feasibility report for the
improvements proposed by the petition.
(2) The governing body shall review and consider the application required by Section 3
of this policy, the petition, and the preliminary engineering and feasibility report
prepared by the city engineer. The governing body may also require of the applicant
such other preliminary steps; including for example, the preparation of plans and
specifications, estimates of costs of the improvements and the advertisement for bids
thereon, as will in its judgment be of assistance in determining the feasibility and
desirability of the improvements. 17
(3) If the governing body concurs with the conclusions set forth in the preliminary
engineering estimate and feasibility report; the governing body may proceed to adopt
a resolution 18:
a. making findings as to the advisability of the improvements. the estimated cost of
the improvements, the boundaries of the improvement district, the method of
assessment, and the apportionment of the cost of the improvement district and the
city (if any);
b. creating the improvement district; and
c. authorizing the improvements to be constructed in accordance with the terms of the
petition and, if applicable, a development agreement.
(4) Following the governing body's adoption of a resolution of advisability, at the
election of the city the improvements will either be constructed by:
a. the city or its contractors: or
b. by the petitioner pursuant to the terms of a development agreement approved by
the governing body.
(c) Determination of Final Costs and Levy of Assessments.
(1) Upon completion of construction of the improvements; the city engineer shall prepare
a final feasibility study including final costs and the proposed allocation of
assessments to each property within the improvement district in the manner set forth
in the resolution of advisability. At the option of the city, maximum assessments may
be levied before construction commences, all in the manner provided by state law. 19
(2) The governing body shall adopt a resolution calling a public hearing on the proposed
levy of assessments. 20
(3) Notice of the public hearing shall be published in the newspaper and sent to all
owners of the property within the improvement district. 21
(4) The governing body shall hold a public hearing on the proposed ordinance levying
the assessments, and shall hear objections to each proposed assessment, if any, and
may amend the proposed ordinance as to ani;
parcels. The governing body shall then
adopt an ordinance levying the assessments.
5
(d) Property owners may prepay the whole of the assessments at any time prior to a date
which shall be fixed by the governing body, 23 which date is customarily the date that
is thirty (30) days following the adoption and publication of the ordinance levying the
a
assessments.
w
Section 5. Eligible Project Components.
a
(a) The city may utilize special assessment financing for the cost of any public work or
improvements allowed under the act. The types of work and improvements eligible
under the act are as follows:
(1) Acquisition of:
a. property or interest in property when necessary for any of the purposes authorized
by the act: and
b. any improvement authorized to be constructed under the act.
(2) To open, widen and extend streets and otherwise to improve paving and other
surfacing, gutters; curbs; sidewalks, crosswalks, driveway entrances and structures;
drainage works incidental thereto; and service connections from sewer. water_. gas and
other utility mains; conduits or pipes necessarily lying within curb lines. y
(3) To improve main and lateral storm water drains and sanitary sewer systems and
appurtenances thereto.
(4) To improve street lights and street lighting systems.
(i) To improve waterworks systems owned by the city and water distribution systems
owned and operated by a water district established pursuant to K.S.A. 19-3501 et
seq., and amendments thereto.
(6) To improve parks, playgrounds and recreational facilities.
(7) To improve any street or other facility by landscaping, planting of trees, shrubs and
other perennial plants.
(8) To improve dikes, levees and other flood control works, gates, lifi stations, bridges
and streets appurtenant thereto.
(9) To improve vehicle and pedestrian bridges, overpasses and tunnels.
(10)To improve retaining walls and area walls on public ways or land abutting thereon.
(I ])To improve property for off-street parking facilities including construction and
equipment of buildings thereon for such purpose.
(12)Asbestos control projects and lead control projects.
6
J
L�
s
The costs of private improvements, including but not limited to private roads and private
utilities, are not eligible for financing under the act.
(b) The city has customarily approved special assessment financing for streets, sidewalks.
storm drains, water lines. and sanitary sewers. The governing body may exercise its
discretion in determining whether specific project components merit special assessment
financing through the creation of an improvement district.
(c) The improvements may be constructed either (1) by the city or its contractors or (2) by a
petitioner pursuant to the terns of a development agreement, at the city's election.
6. Development Agreement.
(a) Any petitioner requesting special assessment financing may be required to enter into a
development agreement with the city.
(b) Any development agreement between the city and the petitioner must be approved by the
governing body. and shall obligate the petitioner to, among other things:
(1) maintain complete, accurate, and clearly identifiable records with respect to the costs
of the project:
(2) maintain any other documents created pursuant to, or arising under, the development
agreement, including, but not limited to. all general contractor's sworn statements,
general contracts, subcontracts, material purchase orders, waivers of lien, and paid
receipts and invoices project -related records: and
(3) provide the city with a right of inspection of such documents.
Section 7. Methods of Assessment. The portion of the cost of any improvement to be
assessed against the property in the improvement district shall be apportioned against the
property in accordance with the special benefits accruing thereto by reasons of such
improvement. 24 All petitions shall propose a method of assessment that complies with state law,
The governing body shall make the final determination of the proper method of assessment and
may utilize any formula or method for apportionment as may be allowed under the act.
Section 8. Distribution of Costs Between Improvement District and Citv-at-Large.
Subject to the equity contribution requirements determined in accordance with Section 10 of this
policy, the distribution of remaining costs for financing of improvements shall be in accordance
with the following:
(a) Streets.
(1) The cost of construction of local streets within the boundaries of a subdivision shall
be assessed 100% to the property within the improvement districL2'
(2) The costs of construction of any other street shall be allocated between the property
within the improvement district and the city -at -large based upon the governing body's
determination of the relative benefit to the property within the improvement district
and the general public; taking into consideration the street standard to which the street
w is to be constructed and the following policies:
y a. In the case of residential development, the property within the improvement
t:
district shall be assessed for that portion of the cost of construction of the street in
is an amount equivalent to the cost of construction of a local street. If the street is
initially constructed to an approved alternate street standard, matters relating to
the benefit district's cost share shall be addressed in the development agreement
entered into between the petitioner and the city.26
b. In the case of commercial/industrial development, the cost of enhanced street
improvements resulting from the impact of the commercial/industrial activity
within the improvement district in excess of the cost of a local street shall be
assessed 100% to the property within the improvement district.
(3) The cost of improvements of direct benefit to adjacent property such as curb cuts;
driveNvays, frontage roads, special tum lanes, etc.. shall be assessed 100% to the
benefitted property.
(b) Sidewalks.
(1) The cost of all sidewalk improvements shall be paid by the improvement district. The
cost of handicapped accessible ramps built at the intersection in conjunction with new
street construction shall be assessed to the improvement district.
(2) When sidewalk improvements are initiated by resolution of the governing body along
arterial streets; 50% of the cost shall be paid by improvement district and 50% shall
be paid by the city -at -large.
(c) Storm Drainage.
(1) Drainage improvements to the Smoky Hill [liver, the flood dike and related pumping
stations, creeks and sloughs shall be funded 100% by the cite -at -large.
(2) Drainage improvements in developed areas of the city that have been included in a
previous improvement district shall be funded 100% by the city -at -large.
(3) Drainage improvements in developed areas of the city that have not been included in
a previous improvement district shall be funded 50% by the city -at -large and 50% by
the improvement district.
(4) Drainage improvements in undeveloped areas of the city shall be funded 100% by the
improvement district.
(d) Water System.
9
(1) In residential areas. the cost of lines valves and hydrants for 6 -inch water mains shall
be assessed 100% to the improvement district. If the city desires to place a larger
water main to or through the area to benefit the overall system, the improvement
district shall pay the cost equivalent of a 6 -inch line and the city water utility fund
shall pay the remainder.
(2) In a commercial or industrial area; the benefitted property o% -.mer or owners shall pay
F 100% of the cost of the distribution system to satisfy their requirements.
(3) The cost of service lines shall be paid by the improvement district.
(e) Sanitary Sewers.
(1) In residential areas: the cost of mains; manholes; and pump stations for 8 -inch sewer
mains shall be assessed 100% to the improvement district. If the city desires to place
a larger sewer main to or through the area to benefit the overall system, the
improvement district shall pay the cost equivalent of an 8 -inch line and the city sewer
utility fund shall pay the remainder.
(2) In a commercial or industrial area; the improvement district shall pay 100% of the
cost of the collection system to satisfy their requirements.
1 11 (3) The cost of service lines shall be paid by the improvement district.
Section 9. Financial Guarantee of Special Assessments.
(a) Any petitioner requesting special assessment financing for new development must furnish
the City with a financial guarantee equal to 20% of the estimated cost to be financed with
bonds issued by the City. The city may modify the application of this requirement if the
improvement district is in multiple ownership. The financial guarantee must be provided
prior to the City awarding any construction contract or approving any development
agreement for the project.
(b) The financial guarantee must consist of:
(1) cash;
(2) escrow account with a financial institution, funded with securities held in trust for the
city's benefit; all as approved at the discretion of the city;
(3) irrevocable letter of credit from a financial institution approved at the discretion of
the city; or
II(4) surety bond, approved at the discretion of the city as to form, execution and surety.
0
(c) If any special assessment is not paid when due on property within the improvement
district, the financial guarantee will be applied by July I of each year to satisfy the
principal, interest, and any additional costs or penalties prompted by delinquent payment.
Notwithstanding the forgoing, however; the financial guarantee shall not be applied in
connection with the delinquent payment of a special assessment on property that has been
sold in a commercially reasonable, arms -length transaction and conveyed to, and is
owned by; a person or entity unaffiliated with the petitioner.
s
(d) The financial guarantee +will be released upon request of the petitioner when certificates
of occupancy for principal buildings are issued for at least 35% of the properties (by lot)
within the improvement district.
(e) The financial guarantee required by this section shall be in addition to any equit}
contribution required pursuant to Section 10.
Section 10. Petitioner's Equity Contribution.
(a) Any petitioner requesting special assessment financing may be required to make an
equity contribution to the cost of the improvements by furnishing the city with certified
funds; which shall be used by the city to reduce the amount of costs payable by special
assessments. The equity contribution shall be provided in accordance with the terms of a
development agreement for the project, and, in the case of improvements to be
constructed by the city or its contractors, prior to the city awarding any construction
contract for the project. The amount of the equity contribution to be furnished in
connection with improvement districts shall be determined by the city on a case-by-case
basis. The city may exercise its discretion in determining the required equity contribution
for a particular project. No equity contribution shall be required for new residential
development.
(b) At the discretion of the governing body, the equity contribution will be treated as a
prepayment of special assessments to be levied against the improvement district.
Section 11. Review Factors. In evaluating a proposed improvement district. the city will
consider the contents of the application; and any information furnished by city staff related to the
following factors as they apply to the specific improvement district project:
(1) The capital cost of the proposed improvements to be financed with special
assessments. along with the estimated life -cycle maintenance costs for the
improvements, both internal and external to the subdivision, utilizing an estimated
life of 30 years for street improvements and 50 years for utility improvements.
(2) The extent to which the proposed project requires or anticipates expenditures for
additional public improvements; particularly off-site improvements, that are not to be
assessed against the improvement district, and the extent to which the city or third -
parties have committed to funding such additional public improvements.
10
C
(3) The number and estimated market price(s) of the proposed as -developed lots within
the subdivision, as projected by the petitioner, compared with the city's estimated
current inventory of existing and available housing supply within the most applicable
of the following price ranges]:
1 5375.000 and above
2 5250.000-5375.000
3 5175.000-5250.000
4
$125.000-SM.000
75.000
5 <$125.000 and below
(4) The projected rate at which houses within the subdivision will be purchased or leased;
based on projected sales prices; lease rates; and comparable real estate market
information.
(5) For new or innovative housing products, the degree to which the petitioner can
demonstrate acceptance of the products into the Salina market.
(6) The ratio of the estimated, average total special assessments against each lot in the
subdivision, to the estimated, average market price of the proposed as -developed lots
within subdivision.
1(7)
The estimated, average total special assessments against each lot in the improvement
district, as compared with the prior 5 -year average total special assessments against
all subdivision lots in established improvement districts within the city.
(8) The total special assessment burden against the property, if subject to multiple
improvement districts.
(9) The proposed subdivision shall be reviewed to determine the extent to which property
factors related to ownership, dimension, elevation, development cost, physical
characteristics, contamination, legal disputes, or other conditions could reasonably be
considered to inhibit the potential for physical development on platted lots subject to
special assessments.
(10)The proposed subdivision shall be reviewed for conformance with the following
connectivity goals contained in the comprehensive plan:
a. Roadwav - Create a road network that provides connectivity and accessibility
throughout the community and is designed to support surrounding quality
development and entryways to the community.
The housing price ranges in this table shall be adjusted annually, commencing on April I, 2018. and on the I' day
of April during each subsequent calendar year, to reflect the average movement of housing prices in the State of
Kansas during the immediately preceding calendar year. The annual adjustment shall be based on the FHFA House
Price Index (Purchase Only) for the State of Kansas.
b. Transit - Implement the CityGo System, and support the para -transit service, in
Salina and provide adequate pedestrian connections to support the services
provided.
c. Bicycle and Pedestrian - Create an alternative transportation system that provides
connections for both bicycles and pedestrians and integrates recreational and
commuter routes throughout Salina.
a (Il)The proposed subdivision shall be reviewed for conformance with the following
Y
goals and policies of the housing study:
a. Price Points. The extent to which the proposed improvement district encourages
development of affordable moderate and medium cost housing, where financing
gaps and challenges are more likely to keep the market from satisfying the need.
b. Contiguitv. The extent to which the proposed improvement district encourages
development on infill sites %within the built-up city, or on greenfield sites that are
adjacent to development and can feasibly and affordably access infrastructure.
c. Densitv. Form, and Innovation. The extent to which the proposed improvement
district encourages introduction of housing forms or project designs that
incorporate:
I. Higher -density products that have proven successful in similar markets,
including small -lot single-family detached or attached configurations,
townhomes, and street -oriented multi -family development, with gross
densities at or above 6 units per acre.
2. Mixed housing environments that integrate different types and price points
into coherent developments.
I Mixed use projects that integrate housing, services, retail, and/or employment.
d. Reinvestment. The extent to which the proposed improvement district provides
strong, positive incentives for housing and mixed-use investment in targeted
revitalization areas such as north Salina, in conjunction %with neighborhood -based
specific plans.
(12) Any other requirements or considerations set forth in this policy or determined by the
city to be in the public interest.
Section 12. Debt/Financial Management Considerations.
(a) It is the city's policy to maintain an appropriate level of indebtedness to preserve
flexibility for future infrastructure investments while balancing the potential impact on
the city's overall credit rating. The appropriate levels are internally determined based on
a variety of factors, such as: statutory debt limitations, infrastructure investment needs of
the city, capacity to repay debt from the specific revenue source. and credit rating
objectives. Since these factors can change over time, any debt guideline must be
periodically reviewed to reflect evolving city conditions. City staff, in consultation with
its financial advisor, shall evaluate the costs, benefits, risks and other considerations
II regarding each proposed improvement district and should so advise the governing body
as part of the review process for each improvement district petition.
12
0
(b) Maximum Term of Bonds. The term of bonds issued by the city to finance improvements
may extend up to twenty (20) years, 27 but absent special circumstances should not exceed
fifteen (15) years.
(c) Agricultural Deferment. The city may, at its sole discretion, authorize and provide for a
w delay in the payment of special assessments for the cost of constructing improvements in
unplatted and undeveloped areas of the city used primarily for agricultural purposes. 29
a
s
H (d) Assessment of Benefit Fee Against Property Not in Original Improvement District. The
0
City may require the owners of property, which benefits from improvements initiated by
petition, but which was not included within the original improvement district, to pay a
benefit fee at the time the owners of such property request, by petition, to be served by
such improvement.29
Section 13. Compliance with Act. All procedures related to consideration and approval of a
petition shall follow the procedures as outlined in the act. Any conflict between this policy and
the act shall be interpreted in favor of the provisions of the act as determined by the city's bond
counsel.
Section 14. Authority of Governing Bodv.
(a) The authority and decision whether and when to approve the establishment of an
improvement district is within the sole discretion of the governing body of the city. The
governing body reserves the right to reject any petition for the creation of an
improvement district at any time in the review process when it determines such action to
be in the best interest of the city.
(b) The governing body reserves the right to waive or deviate from any requirement of this
policy when it determines such action to be in the best interest of the city. The governing
body, however, neither can nor will waive or deviate from any statutory requirement
under the act.
(c) Approval of the creation of an improvement district based on information presented does
not constitute any form of approval (implied, apparent, or otherwise) of a site plan,
special use permit, rezoning, or other development or use -related application. All
development or use -related applications are subject to separate consideration,
recommendation, and approval by the designated boards and commissions.
Section 15. Reveal of Prior Resolution. Resolution No. 17-7507 is hereby repealed.
Section 16. Effective. This resolution shall be in full force and effect from and after its
adoption.
13
Adopted by the Board of Commissioners and signed by the Mayor this 2151 day of May,
2018.
w Karl F. Ryan; Mayor
F
(SEAL)
N
ATTEST:
s
s
U II
Shandi Nicks, CMC, City Clerk
14
EXHIBIT A
CONTENTS OF APPLICATION
The application must. at a minimum. contain the following information and be organized in the
w manner described below:
s
(a) Petitioner Information,
a
(1) General Descriotion. A general description of the petitioner, including the corporate and
organizational structure of any entity participating in the application as a petitioner. This
description must include the names of all principals, members, officers, and directors.
(2) Contacts . The name, address, phone number and other relevant information of the
primary contact for the petitioner. This information must list the names (and other
relevant information) of any legal representatives, engineers, architects. financial
consultants and/or other consultants significantly involved with the application.
(3) Experience. A general description of the petitioner's experience with similar types of
projects as the proposed development.
(4) Financial Capability. Evidence demonstrating, or providing assurances of, the
applicant's financial ability and capacity to undertake the proposed development.
(b) Proposed Project Description.
(I) Subdivision. If applicable, a description of the proposed subdivision, its purpose,
proposed public infrastructure and/or services to be provided, and a statement describing
the overall community benefit or enhanced public services to be derived from the
subdivision. This description shall include a statement of how the proposed subdivision
meets the development objectives or needs of the city.
(2) Housing. If applicable, a description of the proposed housing type(s) within the
subdivision, and the estimated and targeted average market value(s) for the improved
lots after construction of improvements. For new or innovative housing products;
information to support acceptance of the product within the Salina market.
(3) Commercial/Industrial Development. If applicable, a description of the proposed
commercial/industrial building type(s) within the subdivision, and the estimated or
targeted market value(s) for the improved lots after construction of the improvements.
(4) Description of Public Infrastructure. A detailed description of the types of public
infrastructure to be constructed within the improvement district. This description should
include a proposed project schedule for commencement and completion of (a) public
infrastructure and (b) the private development.
15
II (J) Development Timetable. A detailed timetable describing the scheduling; timing. or
phasing of the public infrastructure and the private development. Each phase of the
development should be shown separately.
(c) Financing Plan. A detailed description of the capital financing plan for the public
w infrastructure and the private development with respect to the subdivision. including both
public and private components of such development. This description should include a
B general description of the proposed financing plan of the applicant for the private
development and the sources of the proposed financing; including any debt or equity.
8
(d) Review Factors. Any additional information necessary to enable the city to evaluate the
review factors set forth in Section I I .
(e) New Development - Petitioner Certifications. All petitioners for special assessment
financing in new developments will be required to certify by sworn affidavit. that:
(1) The petitioner and its principals do not have a financial interest in any real estate located
in the city which is subject to delinquent special assessments or ad valorem taxes as of
the date of the petition;
(2) The petitioner and its principals do not have a financial interest in any real estate located
in the State of Kansas on which special assessments or ad valorem taxes were delinquent
for a period of more than one year during the five-year period immediately preceding the
date of the petition;
(3) The petitioner and its principals are not in breach of any outstanding contractual
obligations owed to the city as of the date of the petition; and
(4) The petitioner and its principals have not been convicted of a felony financial crime.
including but not limited to fraud or embezzlement. during the five-year period
immediately preceding the date of the petition.
16
tg
EXHIBIT B
FORM OF PETITION
THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS:
We, the undersigned, owners of record of property located within the City of Salina, Kansas
(the "City") do hereby respectively request that the Governing Body of the City create and
designate an improvement district for the purpose of malting certain improvements in the
manner provided by K.S.A. 12-6a01, et seq.
1. The general nature of the proposed improvements are as follows:
[Insert detailed description of improvements; attach nrap if necessary.] (collectively.
the 'Improvements").
2. The estimated or probable cost of the Improvements is:
[Insert marimtan project cost].
3. The extent of the proposed improvement district to be assessed is:
[Insert metes and bounds legal description of district boundaries.]
(the "Improvement District").
4. The proposed method of assessment shall be:
[Equally per lot][Equally per square foot][Equally per front foot][Other
permissible method of assessment].
5. The proposed apportionment of cost between the Improvement District and the City at
Large is:
% of the costs of the Improvements shall be paid by the
Improvement District and % of the cost of the Improvements
shall be paid by the city at large:
17
The signers of this Petition hereby request that the Improvements be made without
notice and hearing as required by K.S.A. 12-604(a).
NAMES MAY NOT BE WITHDRAWN FROM THE PETITION BY THE SIGNERS
THEREOF AFTER THE GOVERiNING BODY COMMENCES CONSIDERATION OF
THE PETITION OR LATER THAN SEVEN (7) DAYS AFTER FILING OF THE
PETITION WITH THE CITY CLERK, WHICHEVER OCCURS FIRST.
a
Each signer of this Petition certifiesz, under oath, that:
s
U
(a) The petitioner and its principals do not have a financial interest in any real estate
located in the city which is subject to delinquent special assessments or ad valorem
taxes as of the date of the petition;
(b) The petitioner and its principals do not have a financial interest in anv real estate
located in the State of Kansas on which special assessments or ad valorem taxes
were delinquent for a period of more than one year during the five-year period
immediately preceding the date of the petition;
(c) The petitioner and its principals are not in breach of any outstanding contractual
obligations owed to the city as of the date of the petition; and
II (d) The petitioner and its principals have not been convicted of a felony financial crime.
including but not limited to fraud or embezzlement. during the five-year period
immediately preceding the date of the petition.
LEGAL DESCRIPTION OF PROPERTY OWNED WITHIN THE PROPOSED
IMPROVEMENT DISTRICT:
STATE OF
COUNTY OF
ss:
This document was subscribed, sworn, and acknowledged before me on this
day of 20_ by
Notary Public
My appointment expires:
These certifications are only required to be made by petitioners for special assessment financing in new developments.
18
19
TABLE OF AUTHORITIES
� K.S.A. 12-6a01; et seq.
'K.S.A. 12-604(b).
w
3 K.S.A.12-6a02.
_
° K.S.A. 12-604(a).
g
' K.S.A. 12-6a04(a): K.S.A. 12-6a06.
6K.S.A.12-601(c).
K.S.A. 12-6a01, et seq.
8 K.S.A. 12-6a01(e).
s Id. at (d).
10 Id. at (a).
1 Id. at (f).
12 Id. at (h).
t3 K.S.A. 12-6a04.
to K.S.A. 12-6a01(e).
15 Id. at (b).
16 K.S.A. 12-604(b).
K.S.A. 12-6a05.
18 K. S.A. 12-604(d).
19 K.S.A. 12-609(c).
'0 K.S.A. 12-609(b).21 Id.
22 K.S.A. 12-6a10.
23 Id.
2' K.S.A. 12 -604(b) -(c); K.S.A. 12-6a08.
Z' Salina Code Sec. 36-74(b).
Salina Code Sec. 36-74(a)(3)(a).
27 K.S.A. 10-103.
,26
" K. S.A. 12-6;110; et seq.
29 K.S.A.12-6a19.
19
RESOLUTION NUMBER 22-8053
A RESOLUTION REPEALING RESOLUTION NUMBER 98-5276 WHICH
ESTABLISHED A POLICY FOR THE INSTALLMENT TIME PERIOD ALLOWED FOR
THE PAYMENT OF SPECIAL ASSESSMENTS.
WHEREAS, the City of Salina (the "City") regularly uses the General Improvements and
Assessments Law, K.S.A. 12-6a01, et seq., (the "Law") for the construction of certain public
improvements to serve subdivisions; and
WHEREAS, K.S.A. 12-6a10 governing the payment period for special assessments allows
those payments to be made in not more than 20 equal annual installments, as determined by the
governing body; and
WHEREAS, on May 18, 1998, the governing body formalized the City's policy regarding the
payment period for special assessments through adoption of Resolution Number 98-5276, which
established the City's general policy to provide for special assessments to be paid in either ten (10)
annual installments, or fifteen (15) annual installments; and
WHEREAS, on December 11, 2017, the governing body established the City's policy for the
financing of public improvements through the use of improvement districts pursuant to the Law (the
"Policy") through adoption of Resolution Number 17-7507, which provided at Section 12(b) that:
"The term of bonds issued by the city to finance improvements may extend up to twenty (20) years,
but absent special circumstances should not exceed fifteen (15) years;" and
WHEREAS, on May 21, 2018, the governing body amended and restated the Policy through
adoption of Resolution Number 18-7556 without modification of Section 12(b); and
WHEREAS, while Resolution Number 17-7505 effectively established and Resolution
Number 18-7556 effectively restated the City's policy regarding the term of bonds issued by the City
under the Policy, the City's historical record of the progression of Resolution Number 98-5276 was
not formally repealed; therefore, in order to complete the historical record of
BE IT RESOLVED, by the Governing Body of the City of Salina, Kansas:
Section 1. Repeal of Prior Resolution. Resolution Number 98-5276 is repealed.
Section 2. Effective. This resolution shall be in full force and effect from and after its
adoption.
Adopted by the Board of Commissioners and signed by the Mayor this 23rd day ofMay, 2022.
Trent W. Davis, M.D., Mayor
(SEAL)
ATTEST:
JoVonna A. Rutherford, City Clerk
y'