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Dilworth council orders preparation of plans for 34th Street North water‑main extension; staff estimates $1.37M
Summary
City staff presented a public improvement hearing on a proposed 12‑inch, ~6,100‑foot water main extension to County Road 18 with an initial estimate of $1,370,000; council ordered preparation of plans, and staff said most costs would be handled through area‑wide special assessments (levied and deferred), with Retsco agreeing in principle to contribute $25,000 toward upsizing.
City staff opened a public improvement hearing and presented details of a proposed 34th Street North Water Main Extension project. Peyton (city staff) introduced the item and Andrew (staff) walked council through the project description, assessment policy and preliminary cost estimate.
Andrew described the project as approximately 6,100 feet of 12‑inch water main that would extend from just north of the Aldi site to County Road 18. "It's about 6,100 feet plus or minus of water main," he said, and added that no sanitary or storm sewer work is proposed as part of this project.
Staff presented a preliminary total project cost of $1,370,000 and explained the special‑assessment approach under Minnesota Statute Chapter 429. Andrew said the assessment breakdown showed levied assessments of just under $72,000 (for two properties that plan to develop immediately) and deferred assessments of just under $1,300,000 for the remaining parcels; deferred assessments would remain until the properties develop.
Peyton and Andrew said annexation of the intervening properties to the city would be necessary for utility extension; Peyton described the orderly annexation process and said townships previously agreed in principle. Andrew also said Retsco (a private party) had agreed in principle to contribute an additional $25,000 toward upsizing the water line.
On financing and timing, staff said the city would likely use a bond for construction financing and discussed a potential 20‑year term under consideration. Andrew forecasted a possible schedule in which a final assessment hearing and certification would follow construction next fall, with the earliest first payment due with property taxes in May 2027 if the project proceeds on that schedule.
After closing the public hearing with no public commenters, council discussed annexation coordination with Morehead and the treatment of deferred assessments. Council then voted to adopt Resolution 25‑70 ordering the improvement and preparing plans and specifications.
What this means for property owners: staff said area‑wide assessments will be used and that most assessment amounts are deferred until development; two near‑term properties would receive levied assessments. The council did not change the special‑assessment policy tonight and directed staff to proceed with plan preparation.
