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AGENDA RECOMMENDATION |
Consent Calendar 5.H.
City Council Regular Meeting
- Meeting Date:
- 08/10/2026
Agenda Item:
Resolution amending the Manual of Assessments Standards for the City of Mankato regarding homestead properties and benefit appraisals.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
As a part of the 2026 Resurfacing project (East Main Street), staff have received inquiries about homestead versus non-homestead assessment rates.
Additionally, the city has been utilizing a benefit appraisal to finalize assessment amounts. This methodology ensures equitable assessment amounts. Minnesota law indicates that the amount charged on a special assessment must bear a direct relationship to the value of the benefits the property receives.
The recommended changes are indicated in red, bolt, italicized text on the attached document as well as listed below:
SECTION VII of the city’s Manual of Assessment Standards lists various assessment rates per front foot of calculated frontage abutting the improvement. A property classified as a homestead is the owner’s primary residence. Non-homestead properties consisting of rentals with 4 units or less or a residential home not the owner’s primary residence shall be assessed at the lesser (homestead) frontage rate because they receive a similar benefit to homestead property and use. All other non-homestead properties shall be assessed at the higher (non-homestead) frontage rate.
I. Benefit Appraisals
Prior to the final assessment hearing, the city will conduct a special benefit analysis for all parcels proposed to be assessed with the improvement. The analysis will utilize a qualified and licensed appraiser to interpret the increase in market value as a result of the improvement for each parcel. The final amount assessed against each parcel will be the lesser of the special benefit analysis or the calculated assessment as described in this manual.
With the adoption, these revisions will be applied to any projects with final assessment hearings after January 1, 2027.
Additionally, the city has been utilizing a benefit appraisal to finalize assessment amounts. This methodology ensures equitable assessment amounts. Minnesota law indicates that the amount charged on a special assessment must bear a direct relationship to the value of the benefits the property receives.
The recommended changes are indicated in red, bolt, italicized text on the attached document as well as listed below:
SECTION VII of the city’s Manual of Assessment Standards lists various assessment rates per front foot of calculated frontage abutting the improvement. A property classified as a homestead is the owner’s primary residence. Non-homestead properties consisting of rentals with 4 units or less or a residential home not the owner’s primary residence shall be assessed at the lesser (homestead) frontage rate because they receive a similar benefit to homestead property and use. All other non-homestead properties shall be assessed at the higher (non-homestead) frontage rate.
I. Benefit Appraisals
Prior to the final assessment hearing, the city will conduct a special benefit analysis for all parcels proposed to be assessed with the improvement. The analysis will utilize a qualified and licensed appraiser to interpret the increase in market value as a result of the improvement for each parcel. The final amount assessed against each parcel will be the lesser of the special benefit analysis or the calculated assessment as described in this manual.
With the adoption, these revisions will be applied to any projects with final assessment hearings after January 1, 2027.