What Are Special Assessments?
Special assessments are charges to a specific property for a specific improvement performed by the city. Special assessments finance the improvement by charging the benefiting property owner for the cost of the project. The authority to levy special assessments is granted under MN Statute, Chapter 429.
See the City of Edina's Special Assessment Policy (PDF).
For current or proposed project information, contact the Engineering Department at 952-826-0371.
Special Assessment Payment Options
Payment options for newly levied special assessments are as follows:
- Pay off the entire amount in the Assessing Office by Nov. 18, 2022.
- Pre-pay a minimum of 25 percent of the total special assessment in the Assessing office by Nov. 18, 2022. A newly calculated 15-year level payment amount will be reported for collection, starting with the next year's property tax.
- Pay nothing and have an annual payment consisting of principal plus interest certify to Hennepin County for collection with the next year’s taxes.
Senior Citizen Special Assessment Deferral
If you have applied and been accepted for the Senior Citizen Special Assessment Deferral before Nov. 15 at time of levy, the deferral amount will accrue simple interest on the principal at the project rate. Payoff must be received by the Assessing Office no later than Nov. 15 of any given year.
Existing Special Assessments
Existing special assessment payoffs must be received by the Assessing Office no later than Nov. 15 each year. If payment options are unclear, call the Assessing Office at 952-826-0365. To search for payoff amounts, use the Special Assessment Search.
- How was street reconstruction funded and what is the new method or the change?
The City’s Utility Funds covers the cost of curb and gutter, sanitary sewer, domestic water and stormwater utility improvements in a neighborhood reconstruction project. Under the City’s previous Special Assessment Policy, residents are assessed the rest of the project cost, (major costs include road base and pavement) or 100% of the cost for the street reconstruction portion of the project. The new policy will transition from 100% assessment to 100% taxes with a transition period of 16-years.
- Why did the City’s Special Assessment Policy change?
The old policy is not financially or legally sustainable. Recent estimates for special assessments in neighborhoods with homes of all sizes have climbed as high as $32,000, a figure that is not sustainable. Under State Statutes, the City can assess properties for public improvements, but the benefit to property values must be equal to or greater than the assessment. As assessments climb, it may be difficult for the City to prove the market benefit.
- How would the City phase in the new policy?
The cost of subcuts and retaining walls will be removed from special assessments in the first year or 2021 construction projects. After the first year, assessments would be reduced each year until it reaches no assessment at Year 16. Sample assessment amounts by year are provided in the appendix of the assessment policy.