Special Assessments
What is a Special Assessment?
A Special Assessment is a charge made by the City against properties to pay the cost of improvements which are constructed to serve abutting or adjacent properties. The process apportions the cost to those properties which are most benefitted by the improvements. The entire Special Assessment process is governed by State Statutes and Merrill Municipal Code of Ordinances.
What improvements are assessed?
Public Works types of projects are most typical including paving or construction or streets and alleys, installation of new curb and gutter or new sidewalk, driveway approaches, and new sanitary sewer and water mains and house laterals.
Why do I have to pay assessments if I already pay taxes?
Special Assessments paid by property owners usually do not cover the entire cost of the project; the City utilizes General Funds for their share of the project. The City recognizes that all residents receive some benefit from each public works projects regardless where the project is located, but abutting property owners receive a much greater benefit from projects that serve their property.
How are specific projects identified?
The Street, Utility, and Engineering Departments maintain records of the condition of the City’s infrastructure, and generally follow a five year planning and construction process. Every year specific projects are proposed for consideration during the budget preparation process. Occasionally, a special project emerges that gets moved ahead in the process due to some unforeseen issue.
Residents can also petition the Common Council directly for certain projects. See the Assessment Process item on the Engineering Department Web Page for an explanation of the Assessment process.
How are the costs of a Special Assessment determined?
When a project is identified, the Engineering Department begins the detailed planning and engineering design of the project. Part of that process is to develop a preliminary estimate of cost of the entire project which becomes part of the report that is sent to the Common Council for consideration.
Another part of the report estimates the assessment cost to each of the properties affected or benefitted by the project.
How are individual costs assessed to each property?
One of the most common ways to allocate costs is by the “Front Foot” method. The cost of the project is divided by the abutting street frontage of all the lots, and each property owner pays a proportion of the costs based upon the width of their lot.
Another method that could be utilized would be based upon the area of the individual lots. But keep in mind that the costs are ultimately allocated based upon benefit received, so that not everyone will end up paying the exact same amount; equitable proportioning of the costs and benefits is most important.
What if a property owner can't afford the assessment?
At this time the City has no program to assist with payment of assessments other than a five or ten year installment payment schedule.
If the final assessment invoice is less than $500, the full amount must be paid when invoiced.
If the final assessment invoice is between $500 and $10,000, installment payments may be made over 5 years.
If the final assessment is over $10,000, installment payment can be made over 10 years.
A nominal interest rate is charged on unpaid installment balances.
Who can I call for more information?
Please contact Rod Akey at Rod.Akey@ci.merrill.wi.us or (715) 536-5594 with questions or for additional information and assistance with assessments.