Sidewalks or trails that are new additions are typically not assessed—unless they clearly benefit only the assessed properties. Existing sidewalk or trail improvements may be included in overall costs but not assessed separately.
Can I defer my assessment due to hardship?
Yes. A deferment may be granted for residents who are:
Age 65 or older
Permanently and totally disabled
Active-duty military personnel
Deferments pause payments but do not cancel the debt. Interest continues to accrue, and full payment is required if the property is sold, loses homestead status, or the hardship ends. A deferment must be applied for within 30 days of the adoption of the assessment by the City Council. Please email here in order to obtain an application form.
Can I make a partial payment?
Yes—but only before the assessment is added to your property taxes. Once the assessment is certified to the County and added to your property tax bill, only full payoff is allowed.
Can you explain some of these construction terms to me?
Mill & Overlay: Replaces just the top layer of pavement.
FDR (Full Depth Reclamation): Pulverizes and rebuilds the roadbed.
Reconstruction: Fully rebuilds the road and may include sewer and water upgrades.
Does the flat rate apply to all properties?
No. The flat rate applies to low-density residential properties (e.g., single-family homes). Other property types—like commercial, schools or apartments—are assessed based on factors such as traffic volume, size or frontage.
How can I provide feedback or ask questions?
Attend public open houses (typically two per project)
How does the city decide what kind of rehabilitation a street needs?
The city uses a decision matrix based on pavement condition (OCI score), along with other factors such as whether or not underground utilities need to be added or replaced:
OCI 0–29 → Reconstruction
OCI 30–59 → Full Depth Reclamation
OCI 60+ → Mill & Overlay (2 inches is standard). These pavement scores are merely a guide, and there are engineering factors that need to be studied as part of the design to formally decide what method of rehabilitation to use.
How long do I have to pay off my assessment?
If you choose to pay your assessment over time through your property taxes, how long you have depends on the total amount you owe:
If your assessment is $0 to $500, you’ll have 1 year to pay it off.
$501 to $2,500 → 5 years
$2,501 to $5,000 → 8 years
$5,001 to $15,000 → 10 years
More than $15,000 → 15 years
Each year, the remaining balance is added to your property tax bill, along with interest.
How long has the city been assessing for street projects?
The City of Chanhassen began assessing property owners for street improvements in 1993. This marked the formal adoption of an assessment policy for street projects, aligning with Minnesota State Statutes, Chapter 429, which grants cities the authority to levy special assessments for public improvements that benefit specific properties.
How will I be notified?
You’ll receive three mailed notices; the first will come approximately a year and half ahead of the project as an FYI, but will not include an amount; the second will come in the fall ahead of the project and will include a preliminary amount, along with an invitation to the first public open house; the third is the official final notice which includes the final amount, an invitation to the second public open house and information about the assessment hearing at the City Council meeting along with other information such as how to pay and deferment. The city also shares updates via its website, the Chanhassen Connection magazine, Chan-Happenings emails, public meetings and social media.
What are special assessments?
Special assessments are charges to properties that directly benefit from public improvement projects, such as street reconstruction or rehabilitation. In Chanhassen, assessments help fund the Pavement Management Program (PMP), which maintains and improves local roads.
What are the current flat rates?
These rates are reviewed and adjusted annually as part of the city’s Fee Schedule. In order to find the most up-to-date rates, please read the city's fee schedule.
What are the payment options?
Pay in full by the date indicated on your assessment notice to avoid interest.
Make a partial payment before certification to taxes (see the question, "Can I make a partial payment?" above).
Roll the balance into your property taxes and pay in annual installments over the designated term (with interest).
You may pay off the remaining principal balance early at any time once it’s on your tax bill, but only in full. This payment must be received by November 15 or another installment would be included on your property taxes the following year.
What interest rate will be charged?
The interest rate is based on the yield of the 7-year U.S. Treasury Note on the date the assessment roll is adopted, plus 1%. The specific rate will not be included in the assessment notice but will be posted on the project webpage after adoption to reduce follow-up calls and to avoid sending a second letter.
What kinds of projects are assessed?
Assessments apply to street reconstruction and rehabilitation projects. Routine maintenance like pothole patching or sealcoating is not assessed.
When is the assessment amount determined?
An estimate is shared during the Feasibility Study (usually 6–12 months before construction). The final amount is set by the City Council during a formal assessment hearing, typically held in April or May of the project year.
Where can I read the full Assessment Policy?
The current policy and Fee Schedule are posted online here.
Who gets assessed?
Property owners are assessed if:
Their property has a driveway or potential future driveway connecting to a street being improved.
Their property is a commercial school, or high-density residential site with traffic impact on the street.
They own public, nonprofit or religious property adjacent to the improvement.
Why did the city update the Assessment Policy to a flat rate?
The flat-rate model, adopted by the City Council in May 2025, makes assessment amounts predictable, easier to administer and more understandable for residents. It improves equity and simplifies communication while still aligning with the legal requirement that assessments not exceed the benefit received.
Why does the city assess residents instead of paying for these improvements entirely itself?
The city pays a portion of the costs to reflect the community-wide benefit, but properties that directly benefit are assessed to share in the cost. For rehabilitation projects, the city pays 60% and assesses 40% unless a Flat Rate is utilized. If the city didn’t utilize assessments, the annual property tax levy would have to be adjusted to fund the pavement management program fund.
Why does the City of Chanhassen charge interest on assessments?
The city charges interest on unpaid special assessments to cover its own borrowing costs for public improvement projects and ensure fairness for taxpayers who pay in full up front. Property owners can avoid interest by paying within the initial interest-free period, after which the unpaid balance is financed over time with interest.
