Council increases street assessment rates

Published 11:20 am Wednesday, January 4, 2012

Austin City Council members voted unanimously Monday night to increase street reconstruction assessment rates.

The council will cast final votes regarding the rate increase at a meeting Jan. 17. The rates, which were $37 per lineal foot, will increase to $38.25 per lineal foot for residential areas. Commercial areas will see an increase from $53 to $54.75 per lineal foot.

Assistant City Engineer Steven Lang said the increase will equate to about $75 over 15 years for a 50-foot lot. The city’s goal with street reconstruction projects is to assess 50 percent of the project cost to adjacent property owners over a period of 15 years.

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The other 50 percent of the project is covered by local property taxes or state funding, depending on the project, according to Finance Director Tom Dankert.

Because the city must set assessment rates at the start of each year, before project bidding begins, officials must estimate an assessment price that will equal about 50 percent of the entire project cost.

The proposed rates for 2012 will likely cover about 42 percent of project costs for the year.

Lang said increased fuel and energy costs contribute to increases in assessment rates because project costs are higher.

“Our street construction projects are very dependent on those things,” he said.

Lang said small street maintenance projects are generally not assessed. Property owners are only assessed for the street reconstruction itself and not underground utility work, which is covered by user fees.

The cost of sidewalk replacement could also increase in 2012. Six-inch sidewalk is assessed at $4.20 per square foot, and city officials propose that be raised to $4.60 per square foot.