Council sets March public hearing on Southwest Reconstruction assessments after engineers’ bid review

KASSON CITY — The Kasson City Council voted to call a public hearing for March 26 on special assessments tied to the Southwest Reconstruction project after staff presented low construction bids and a revised assessment roll.

Brandon, city engineer, told the council the low bid came in at $4,297,000 and that the estimated cost per Residential Equivalent Unit (REU) for the project has fallen from an earlier preliminary number to about $9,030 per REU. He said the city’s assessment practice is to recover 30% of roadway cost from assessed properties, with the balance paid from the city.

The hearing notice approved by the council will be mailed to affected property owners and published in the newspaper as required. The notice will include payment options, deferral information and an interest rate set per the city’s policy (currently prime plus 1.5%).

Why it matters: The assessments would place a multi‑thousand‑dollar encumbrance on properties in the Southwest area unless owners prepay; council members raised concerns about the size of the individual assessments and whether the city should reduce its standard 30% share.

Discussion and council direction

Councilmember Paul said he wanted “a path where we can reduce our assessment from 30%,” noting a move to 25% would materially reduce the amount owed by property owners. Several council members asked staff for comparisons showing the financial effect of lower assessment percentages and whether contingency and administrative percentages could be trimmed to reduce assessed amounts.

Brandon responded that the city’s typical practice and past projects used a 30% assessment and a 5% construction contingency plus administrative costs; he noted some prior projects carried a smaller contingency (2%) and that lowering contingency is one option to reduce assessed totals without changing the assessment policy itself.

Formal action

The council approved a resolution calling the required hearing and directing staff to publish and mail the assessment notices. The action sets the mailed assessment as a maximum; the council may lower the assessments at the March hearing but cannot increase them.

What comes next

Property owners will receive formal notice with the proposed assessment, payment and deferral options. Council requested staff return with comparative scenarios (for example, 25% assessment or reduced contingency) before or at the hearing so members and residents have data to consider.

Ending

The council’s vote moves the process to the statutory hearing stage; the city will finalize assessments after public testimony and the March 26 meeting.