There were several people, mainly those living in the proposed area, who attended the Public Hearing for the road and infrastructure work on East 3rd, 4th, 5th Street and Alley. This was an opportunity to ask questions and voice opinions on the project which many of them did. Questions posed during the Sept. 22 public hearing for assessments will have answers posted in the October 13 Council packet.
At this time, the project costs are based off estimates of averages of construction costs and these estimates were then calculated down to how much the property owners will have to pay. Some of the people speaking stated that their estimate was over $30,000.
Ryan Odden and Cavin Berube from Moore Engineering presented the numbers during a short slideshow to overview the projects, its schedule, financing, and the city’s special assessment policy.
The estimated costs for the water system replacement will be $7,575.81 per lot. The sewer system will cost $6,214.79 per lot. Surface pavement costs will be $59.72 per front foot and curb and gutter will cost $60.56 per front foot. Sidewalk will cost $83.34 per front foot. Alley surface improvement will be $26.82 per front foot. Stormwater will be $0.20 per square foot.
The total project cost is estimated at $2,775,000. The city policy is to have the City cover 25% for water, sewer and stormwater improvements with the homeowner paying 75% of the remaining share; the City will cover 75% surface pavement improvements and 0% of curb and gutter, sidewalk, and alleyway surface improvements with homeowners paying the 25% remaining for surface pavement and 100% of all curb and gutter, sidewalk, and alleyway surface improvements. The city share would be $1,014,823.32 and the assessable amount would be $1,760,176.68.
Many of the concerns revolved around the curb and gutter and sidewalk portion of the project. In many cases, property owners state that these are in good condition and do not need to be replaced. Moore Engineering representatives stated that quite often they need to be replaced after access lines are dug to curb stops.
Several of the other questions were directed at how much the apartment buildings in that area will be paying compared to the private property owners. The apartment buildings will be assessed on a per unit basis. Jessica Kirwin of the HRA had questions about the proposed apartment assessment when it has not even been built and funding has not been received.
Homeowners also questioned how the city can charge them more than what the project will increase the value of their property based on the pre-project general appraisal estimate values. They also asked about payment options for the assessment.
After everyone was given the opportunity to speak, the public hearing was closed and the council members discussed the project. Councilman Brian Solvie wanted to make it clear that this project can be cancelled any time before the December 8 final deadline. This meeting was to get public opinion and the next steps would allow the City to continue the process to get bids. At times, after bids come in, the project cost goes down and so do the assessment amounts. The council can also make changes to the project plans by eliminating items to make it less expensive.
Councilman Jeff Miller stated that it is important to do the improvements while things are still working. The city does not want to wait until there are major water breaks or sewer backups. This area is one of the oldest parts of town to still need the lines replaced.
Mayor Kevin Wohlers stated that this is always the tricky part. These are just cost estimates and that the city can not assess more than the value increase.
The council members approved the resolution ordering improvements and will move on to the next step in the process which is to prepare the plans for the reconstruction work.
The council members approved other resolutions including a franchise extension for Mediacom Minnesota LLC for another five years.
The preliminary tax levy and budget for the city was reviewed. City Manager Zoe Johnson recommended that the council set the 2026 Preliminary Tax Levy for collection in 2027 at $2,045,415 and the budget at $14,967,619. This will result in a 6% preliminary levy increase.
Johnson highlighted some of the changes that are increasing the budget. The Local Government Aid (LGA) increased by .326% from the previous year. She is estimating a 10% increase in 2027 health insurance costs. The City and County have been in negotiations regarding an updated law enforcement contract so she budgeted with the County’s initial proposed numbers. Utility rates will be increased per the 2024 Utility Rate Study. Water will increase by 1%, Sewer by 4.3% and Stormwater will increase by $0.55 for residential and $1.10 for commercial.
The Library Fund is poised to receive a 14% increase in property taxes and a 2% increase in LGA simply to keep the level of service the same without increasing their controlled revenues.
The council will review the budget and levy at the Dec. 8 meeting when the final levy increase will be approved. The Truth in Taxation public hearing has been scheduled for 6:00 pm on Dec. 8 in the Community Center to hear questions and concerns from residents regarding the proposed budget and levy increase.
The council discussed a request from a property owner asking for the detachment of property they owned within the city limits. The property owner stated that the property is rural in character and not developed for commercial, industrial, or urban residential purposes. For these reasons they are not benefiting to the same degree as other lands by municipal services financed by general taxation.
The discussion focused more on the ‘what-ifs’ for future development there. The land is located to the north of Westwood Acres. It could be possible for this area to be developed in the future for homes. The utility supervisor’s letter to the Council stated that keeping this property within the City would preserve an important opportunity for future residential growth and allow the community to make use of the infrastructure that is already located nearby as well as expand utilities to continue to think strategically about Morris’ future growth.
The council members were not in favor of the detachment plan but will continue to discuss options available to the City with the city manager and city attorney. If a detachment petition moves forward, a judge will determine if the detachment can proceed.
