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Page 1: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Drainage Authority

Redetermination of Benefits

Page 2: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Settlement:

160 acres of land was available by homestead after

living on the tract for 5 years. Homesteading

began in 1840.

Minnesota was granted statehood in 1858. The

first drainage related legislation was passed that

year entitled “ An act to regulate and encourage

the drainage of lands.”

The first law appointing viewers was in 1883.

Changes in 1887 first addressed drainage districts

and consideration of proximity. Very little changed

in the drainage laws affecting viewing until 1977.

History

Page 3: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,
Page 4: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Early Homesteaders

Page 5: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Early farm drainage 1890-1910

Page 6: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Farming practices 1900

Page 7: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Farming practices 1900

Page 8: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Public drainage

Page 9: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,
Page 10: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,
Page 11: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Viewers Report

Page 12: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Ditch construction

Page 13: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Tile Installation

Page 14: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Improvement/Repair 1920-1930

Page 15: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Post World War 2

Page 16: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,
Page 17: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Improvement 1950-1960

Page 18: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,
Page 19: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Modern Farming

Page 20: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

103E.351 REDETERMINING BENEFITS AND

DAMAGES.

Subdivision 1.Conditions to redetermine benefits and

damages; appointment of viewers.

If the drainage authority determines that the original benefits

or damages determined in a drainage proceeding do not

reflect reasonable present day land values or that the

benefited or damaged areas have changed, or if more than 50

percent of the owners of property benefited or damaged by a

drainage system petition for correction of an error that was

made at the time of the proceedings that established the

drainage system, the drainage authority may appoint three

viewers to redetermine and report the benefits and damages

and the benefited and damaged areas.

Page 21: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

The Viewing Process is a Mass

Appraisal Process that values a

universe of properties as of a given

date, using a standard methodology,

employing common data, and

allowing for statistical testing.

Page 22: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Benefits: "Benefits" refers either to the impact a drainage

system has on land in terms of improving the market value of

the land or the impact (and costs associated with that impact)

that the land has on the drainage system because of land use

that accelerates drainage, transports sediment or increases

volume demand in a drainage system. These two bases for

benefits are referred to in this manual as “market value based”

or “charge-based” benefits.

Damages: "Damages" means the reduction of value resulting

from the construction of a drainage system, including the value

of the land actually taken for an open channel and for the

permanent grass strips bordering it, severance damages, loss of

crop production during project construction, and diminished

productivity due to increased overflow. Minnesota Public Drainage Manual

Page 23: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

103E.305 VIEWERS' APPOINTMENT AND

QUALIFICATION.

Subdivision 1.Appointment.

When the order for a detailed survey is made, the

drainage authority shall, by order, appoint viewers

consisting of three disinterested residents of the

state qualified to assess benefits and damages. The

drainage authority may establish qualifications for

viewers.

Page 24: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Benefit Valuation

The statute language for the determination of benefits and damages is included

under 103E.315. The statue has 8 separate subdivisions addressing different

benefits and damages. 103E.351 addresses redetermination of benefits and

refers back to the same consideration.

103E.315 ASSESSMENT OF DRAINAGE BENEFITS AND DAMAGES.

Subd 1.State land.

Subd. 2.Government property.

Subd. 3.Public roads.

Subd. 4.Railway and other utilities.

Subd. 5.Extent and basis of benefits.

Subd. 6.Benefits for proposed drainage project as outlet.

Subd. 7.Benefits for project that increases drainage capacity.

Subd. 8.Extent of damages.

Page 25: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Subd. 5.Extent and basis of benefits.

(a) The viewers shall determine the amount of benefits to all

property within the watershed, whether the property is benefited

immediately by the construction of the proposed drainage project

or the proposed drainage project can become an outlet for

drainage, makes an outlet more accessible, or otherwise directly

benefits the property. The benefits may be based on:

(1) an increase in the current market value of property as a result

of constructing the project;

(2) an increase in the potential for agricultural production as a

result of constructing the project; or

(3) an increased value of the property as a result of a potential

different land use.

(b) Benefits and damages may be assessed only against the

property benefited or damaged or an easement interest in property

for the exclusive use of the surface of the property.

Page 26: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Subd. 6.Benefits for proposed drainage project as outlet.

(a) If the proposed drainage project furnishes an outlet to an existing drainage system

and benefits the property drained by the existing system, the viewers shall equitably

determine and assess:

(1) the benefits of the proposed drainage project to each tract or lot drained by the

existing drainage system;

(2) a single amount as an outlet benefit to the existing drainage system; or

(3) benefits on a watershed acre basis.

(b) Assessments that conform with the provisions in this subdivision are valid. If a

single sum is assessed as an outlet benefit, the lien for the assessment must be prorated

on all property benefited by the existing drainage system in proportion to the benefits

determined for the existing drainage system.

(c) Within the watershed that drains to the area where a project is located, the viewers

may assess outlet benefits on:

(1) property that is responsible for increased sedimentation in downstream areas of the

watershed; and

(2) property that is responsible for increased drainage system maintenance or increased

drainage system capacity because the natural drainage on the property has been altered

or modified to accelerate the drainage of water from the property.

Page 27: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Viewing Aids• Lidar & DEMs

• County GIS

• Soils Book

• USDA web soil survey site

• Soil characteristics, classification 3W, 2W, 2E, 1 ect.

• Aerial photos, Google Earth

• Sales data from the County Assessor.

• Yield averages taken from local sources, USDA, and University Of Minnesota Extension service

• Production costs taken from local sources, University of Minnesota FinBin

• Visual inspection of each 40 acre parcel or less.

• Consult with the County Auditor and Ditch Inspector, and project Engineer.

Page 28: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Viewers determine Ditch System Watersheds

Lorain

Indian LakeRound Lake

Ewington Rost

Bigelow

Sioux Valley

Worthington

JD 13

JD 24

JD 9

CD 10

JD 16

CD 1

CD 6

Indian Lake

CD 25 CD 9

1 5

8

6

79

246 4

7

1353

9

2

7 8

61

1111

19

30

19

30

31

34

24

25

20

32

21

3135

31

24

30

20

21

29

28

31

20

3335

28

23

13

24

34

29

26

18

2627

16

25

19

28

23

12

28

26

23

35

2726

21

12

22

35 33

10

36

29

23

33

33

30

22

27

2119

14

22

20

36

29

32

24

17

36

13

32

34

34

17

22

30

32

14

19

25

16

10

18

27

18

31

1515

31

36

30

19

12

25

36

25

24

13

24

25

36

1813141516171813141516

8

1718

5

32

13

29

20

17

32

29

23

20

26

1714

Page 29: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Soils can be a good indicator of the conditions that would exist before

agricultural use.

Soils Capability Class

* Class I soils have few limitations that restrict use.

* Class II soils have moderate limitations, which reduce the choice of plants

that can be grown or indicate the need for moderate conservation practices.

* Class III soils have severe limitations, which reduce the choice of plants,

indicate the need for special conservation practices, or both.

* Class IV soils have very severe limitations, which restrict the choice of

plants, indicate the need for very careful management, or both.

* Class V soils generally are not considered suitable for cultivation. These

soils are not likely to erode, but they have other limitations that are

impractical to remove and limit their use.

* Class VI soils have severe limitations that make them generally unsuited for

cultivation.

* Class VII soils have very severe limitations that make them unsuited for

cultivation.

* Class VIII soils and land forms have limitations that nearly preclude their

use for commercial crop production.

Page 30: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Soils Capability Subclasses.

Subclasses are soil groups within one class; they are designated by

adding a small letter e, w, s, or c to identify the most important sod

limitation.

Subclass e. The letter e indicates that the main limitation is the risk of

erosion.

Subclass w - The main limitation indicated is excess water in or on the

soil due to poor soil drainage, wetness, a high water table, or overflow.

Subclass s - The soil is limited mainly because it is shallow, droughty,

or stony or has another soil problem in the rooting zone, such as a low

moisture-holding capacity, salinity, or alkalinity.

Subclass c - The chief limitation is a climate that is too cold or too dry.

Page 31: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Capability Units. In some local areas, soil capability units are used

to identify soils that have similar management requirements, similar

risk, and similar productive capability. For example, two soils in

subclass Ile may be classed IIe-I and IIe-2 to distinguish the degree

of management needed to control the erosion problem.

A viewer must still take into consideration the

evidence gathered during visual inspection including:

the drainage patterns with the project area,

the topography, land use, soil mapping inclusions,

and other environmental issues.

Page 32: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Soils

Page 33: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

DEM

Contours

Page 34: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Digital Elevation Model

Page 35: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Establishing Benefit Classification

Before Drainage

• A … Frequently flooded or ponded with no

agricultural use.

• B … Seasonably flooded, usable for hay or

pasture ground

• C … Normally farmable but having high

watertable limitations

• D … Upland areas not requiring drainage but

having improved farmablity or contributing to

needed capacity

Page 36: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

“A Class”(Ponded or frequently flooded)

Before Drainage After Drainage

Page 37: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

“B Class”

(Seasonally flooded, pasture ground)

Before Drainage After Drainage

Page 38: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

“C Class” (Wet sub soil, high watertable)

Before Drainage After Drainage

Page 39: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

“D Class”(Upland Areas, greater slopes)

Before Drainage After

Drainage

Page 40: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

The importance of good drainage

Page 41: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Other Categories • Roads (Interstates, Blacktop or Gravel)

• Building Sites

• Development, Changing use

• Trees (non-benefited)

• Permanent Wetlands

• Areas that have Never Been Farmed

• CRP, RIM, CREP, Conservation regulations

• DNR, U.S. Fish and Wildlife

Page 42: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Road Benefits

Page 43: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Non Benefited Acres

Page 44: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Determining Benefits and Damages Values:

After development of benefit classification and determination

of acres within each benefit class the Viewers must establish

an estimated value for each class. This is normally done by

first estimating a potential benefit value for lands that would

receive the most benefit from a recommended capacity

drainage system.

Many elements are included in the analysis of benefit value.

Final benefit value must consider access to the outlet,

hydraulic capacity of drainage system, market values, and

additional private costs.

Page 45: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Highest and Best Use

Highest and best use is a basic premise of value. Like property value,

highest and best use is not an absolute fact; it is an appraiser's opinion as to

the best use of a property based on an analysis of prevailing market

conditions. By identifying and interpreting the market forces that affect a

specific property in a local and regional context, the appraiser determines

the property's highest and best use. Highest and best use focuses market

analysis on the subject property and allows the appraiser to consider the

property's optimum use in light of market conditions on a specific date.

Highest and best use is defined as:

The reasonably probable and legal use of vacant land or an improved

property, which is physically possible, appropriately supported, financially

feasible, and that results in the highest value. The four criteria the highest

and best use must meet are: legal permissibility, physical possibility,

financial feasibility, and maximum profitability.

Page 46: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Substitution – Maximum values

The principle of substitution states that when several similar or commensurate

commodities, goods, or services are available, the one with the lowest price

attracts the greatest demand and widest distribution. This principle assumes

rational, prudent market behavior with no undue cost due to delay. According to

the principle of substitution, a buyer will not pay more for one property than for

another that is equally desirable.

Property values tend to be set by the cost of acquiring an equally desirable

substitute property. The principle of substitution recognizes that buyers and sellers

of real property have options, i.e., other properties are available for similar uses.

Although each real property is unique, an equivalent substitute can usually be

found. The substitution of one property for another may be considered in terms of

use, structural design, or earnings. The cost of acquisition may be the cost to

purchase a similar site and construct a building of equivalent utility, assuming no

undue cost due to delay; this is the basis of the cost approach to value. On the

other hand, the cost of acquisition may be the price of acquiring an existing

property of equal utility, again assuming no undue cost due to delay; this is the

basis of the sales comparison approach.

Page 47: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

•Valuation Prior To Drainage

•Beginning land use, property value, and economic productivity have been determined with the

consideration that the benefited properties within the watershed currently do not have an adequate outlet

for artificial drainage.

• "A" -- Standing water or cattails, wetland classification with a market value for agricultural

purposes of $0.00 per acre, economic productivity of $0.00.

• "B" -- Seasonally flooded/pasture ground. Pasture classification with a market value of

$1000.00 to $1500.00 per acre, economic productivity of $80.00 based on grazing days

and/or hay values.

• "C" -- Wet subsoil -- Marginal crop land, low to medium crop land classification with a market

value of $4000.00 to $5000.00 per acre, annual economic productivity of $458.60 based

upon average annual yield of 80 % of optimum with $295.82 production costs.

• "D" --Upland areas not needing artificial drainage but irregular in shape and intermixed with

wetter soils. Medium to high cropland classification with a market value of $3000.00 to

$5500.00 per acre, annual economic productivity of $544.59 based upon average annual

yield of 95 % of optimum with $295.82 production costs.

Page 48: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

•Valuation with NRCS Guideline Drainage System

•Potential land use, property value, and economic productivity, after public and private

drainage have been installed and with the restrictive existing drainage system in a reasonable

state of repair, using current crop rotation, income, and expense:

•"A" -- Seasonally ponded agricultural ground. Low cropland classification with a market value

of range of $ 4000.00 to $5000.00 per acre, annual economic productivity of $515.93 based

upon average annual yield of 90 % of optimum with $295.82 production costs.

•"A-" Partially drained slough area with a highest and best use as hay or pasture and restricted

from additional drainage by governmental regulation.

•"B" -- Occasionally flooded agricultural ground. Medium cropland classification with a

market value range of $4500.00 to $5500.00 per acre, economic productivity of $544.59 based

upon average annual yield of 95 % of optimum with $295.82 production costs.

•"C" -- Wet subsoil. Medium high cropland classification with a market value range of

$5500.00 to $6500.00 per acre, annual economic productivity of $573.25 based upon average

annual yield of 100 % of optimum with $295.82 production costs.

•"D" --Upland areas not needing artificial drainage, but irregular in shape and intermixed with

wetter soils. Medium to high cropland classification with a market value range of $ 3500.00 to

$6500.00 per acre, annual economic productivity of $573.25 based upon average annual yield

of 100 % of optimum with $295.82 production costs.

Page 49: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Sales Comparison Approach Analysis

As the purpose of the viewing process is to determine the benefits and

damages for a drainage project, the viewers must determine the method of

procuring credible results on a project wide basis. It is not practical to do a

complete before and after valuation of each property affected by a project, so

a mass appraisal approach is normally used. This viewing process generally

has established 4 classes of benefit value based upon the predrained

conditions. Normally they are determined as benefit classes A, B, C, and D.

To estimate a market value for each class of land, the viewer must determine

the types of land that are to be included in each class. Under the sales

comparison approach to value, analysis of each comparable sale must be

completed with the same classifications. The difficulty in establishing a value

for each class of benefit when looking at the comparable sales is that most of

the sales have a variety of soil types and drainage needs. One method to

evaluate each comparable sale is through the establishment of a land class

ratio analysis.

Page 50: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Land Class Ratio Analysis

When analyzing sales to derive a land adjustment, the viewer must

remember that this "land adjustment" may encompass all

characteristics of the land, including productivity topography, open

land versus wooded land, and other characteristics. If the appraiser is

working in an area where there is typically only one class of land, a

productivity or land quality adjustment may adequately reflect the

degree of comparability between the land component of a sale and the

subject property. An accepted technique for estimating the

contributory value of multiple land characteristics is land class ratio

analysis.

Page 51: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Sales Comparison Land Value Ratio

SALE NO DATE SALE PRICE ACRES $ / ACRE CLASS A $ / ACRE CLASS B $ / ACRE CLASS C $ / ACRE CLASS D $ / ACRE OTHER $ / ACRE TOTAL

1 Jan-12 $58,500.00 40 $1,462.50 39 $1,500.00 1 $58,500.00

2 Jul-12 $200,000.00 80 $2,500.00 2 58 $1,500.00 20 $6,000.00 $207,000.00

3 May-12 $5,000.00 10 $500.00 10 $500.00 $5,000.00

Sales 1, 2 and 3 are undrained properties

4 Mar-12 $380,000.00 40 $9,500.00 38 $10,000.00 2 $380,000.00

5 Nov-12 $375,000.00 40 $9,375.00 10 $7,500.00 30 $10,000.00 $375,000.00

6 Dec-12 $720,000.00 80 $9,000.00 5 $7,500.00 30 $10,000.00 45 $8,500.00 $720,000.00

7 Jul-12 $1,375,000.00 160 $8,593.75 10 $6,500.00 10 $7,500.00 30 $10,000.00 110 $8,500.00 $1,375,000.00

8 Jun-12 $875,000.00 120 $7,291.67 50 $8,000.00 70 $6,800.00 $876,000.00

9 Sep-12 $750,000.00 120 $6,250.00 20 $5,250.00 50 $7,000.00 50 $5,950.00 $752,500.00

10 Oct-12 $610,000.00 80 $7,625.00 5 $5,590.00 10 $6,450.00 35 $8,600.00 30 $7,310.00 $612,750.00

11 Jan-13 $725,000.00 80 $9,062.50 30 $7,800.00 20 $9,000.00 20 $12,000.00 7 $10,200.00 3 $725,400.00

12 Jul-12 $420,000.00 80 $5,250.00 25 $4,763.00 55 $5,500.00 $421,575.00

Page 52: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Utilizing these productive values, potential benefit values were determined for the system based

upon a 25-year effective life with proper maintenance, private improvement cost depreciated over

the same 25-year period, and an allowance of 4.0% return on the system investment. Adjustment

was made to each land class based upon consideration of the change in hydraulic capacity and the

subsequent increased productivity that the construction of the drainage system improvement

provides. Benefit values were rounded off to an even percentage benefit increase for ease of

computation.

Example: "B" Benefits per Acre

Potential productivity Value $ 573.25

Adjustment for 95% economic efficiency $ 544.59

Production Cost - 295.82

Beginning Productivity Value - 80.00

Change in Productivity Value 168.77

Private Improvement ($900/25) -36.00

(Surface and /or tile)

Annual Benefit Value $ 132.77

$86.79 x 25 years, discounted @ 4.0% = $2074.17

Rounded to $2070.00

Page 53: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

OPTIMUM PRODUCTION INCOME

OPTIMUM COMMODITY POTENTIAL ROTATION

CROP YIELD VALUE INCOME ADJUSTMENT

CORN 210 3.25 682.50 50

BEANS 60 9.50 570.00 50

WHEAT

TOTAL

EXPENSES:

(CROP) CORN BEANS WHEAT

SEED 125 55

FERTILIZER 140 20

CHEMICALS 32 45

CROP INSURANCE 25 25

CROP DRYING 30

FUEL 30 24

REPAIRS 35 25

MISC. 10 5

CUSTOM HIRE 16 22

SUBTOTAL $443.00 $221.00

INTEREST 13.29 6.63

TOTAL $456.29 $227.63

ROTATION ADJUST 50 50

ADJUSTED TOTAL $228.15 $113.82

PRODUCTION EXPENSE $341.96

Page 54: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

ESTIMATED OPTIMUM INCOME

BASED UPON WATERSHED CROP ROTATION $ $626.25

ESTIMATED OPTIMUM PRODUCTION DIRECT EXPENSE $ $341.96

NET INCOME OF "A" "B" C "D"

PREPROJECT CONDITION

% PRODUCTION 80 95

PRODUCTION COST 341.96 341.96

INCOME 60.00 159.04 252.98

COST OF PRIVATE "A" "B" "C" "D"

IMPROVEMENT OR TILE

TOTAL COST 900.00 900.00 900.00

DEPR. VALUE 36.00 36.00 36.00

BENEFIT VALUE CALCULATION

LAND CLASS "A" "B" C "D"

% PRODUCTION 92 96 100 100

GROSS INCOME 576.15 601.20 626.25 626.25

PRODUCTION COST ( - ) 341.96 341.96 341.96 341.96

NET INCOME 234.19 259.24 284.29 284.29

PREVIOUS INCOME ( - ) 60.00 159.04 252.98

INCREASED INCOME 234.19 199.24 125.25 31.31

PVT IMPROVEMENT COST ( - ) 36.00 36.00 36.00

NET ANNUAL INCREASE 198.19 163.24 89.25 31.31

CAPITALIZED FOR

_25_YEARS @ _0.5_ % 4646.69 3827.27 2092.52 734.14

BENEFIT VALUE $4,650.00 $3,830.00 $2,090.00 $730.00

Page 55: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

RECONCILIATION

Class Acres Percentage

A 40 0.020

B 194 0.097

C 1308 0.654

D 458 0.229

2000 1.000

VALUATION

Before After

Average Weighted Average Weighted Benefit Weighted

Class % Sale Value Value Sale Value Value Value Value

(6600-7000)

A 0.020 $0.00 $0.00 $6,800.00 $136.00 $5,250.00 $105.00

(1400-1800) (7000-7400)

B 0.097 $1,600.00 $155.20 $7,200.00 $698.40 $3,955.00 $383.64

(6400-6800) (8400-8800)

C 0.654 $6,600.00 $4,316.40 $8,600.00 $5,624.40 $1,965.00 $1,285.11

(7100-7500) (8100-8500)

D 0.229 $7,300.00 $1,671.70 $8,300.00 $1,900.70 $640.00 $146.56

$6,143.30 $8,359.50 $1,920.31

VALUE DIFFERENCE $2,216.20

Page 56: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Special consideration is given to areas where the ditch only provides an outlet adequate to convert the lands to pasture or hay land and are restricted from further individual improvements by regulatory restrictions.

Consideration of benefits for commercial development, whether utilized for commercial agriculture, livestock confinement, or other commercial use, has been developed based upon the property’s individual use.

Road benefits are determined with consideration of the reduced construction and maintenance costs that would be realized after construction of the drainage system improvement.

Page 57: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Benefits to public drainage systems as an outlet:

Outlet benefits generally consider 2 measures of

benefit to the receiving ditch. One is what the ditch

does for the outlet of the contributing ditch and the

other is what the contributing ditch does to the

receiving ditch. Consideration must be given to the

extent of ditch used. Benefits are generally only

received by the ditch used as an outlet.

Page 58: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

When a drainage system, as it currently exists,generally has adequate size and capacity tomeet the NRCS recommended drainagecapacities for agricultural drainage, potentialbenefits may already be received. If not,adjustment to the potential benefit value canmade by the application a parcel’s proximityto the public ditch system and open ditch. Thenet benefit provided by the ditch system isdetermined by the potential benefit valuebeing applied to the number of acresdetermined to be in each class per tract,accumulating the sum of these benefit values,and then applying the effieciency rateadjustment.

Page 59: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

When a drainage system does not have any NRCS recommended tile capacity, adjustment

can be made to the benefit per class separate from the proximity to the outlet.

"A" "B" "C" "D"

$4,180.00 $2,990.00 $2,020.00 $570.00

60% 75% 85% 90%

$2,508.00 $2,242.50 $1,717.00 $513.00

BENEFIT BENEFIT BENEFIT BENEFIT BENEFIT BENEFIT BENEFIT BENEFIT

ACRES VALUE ACRES VALUE ACRES VALUE ACRES VALUE

6 13455.00 21 36057.00 4 2052.00

13 22321.00 1 513.00

4 8970.00 18 30906.00 2 1026.00

1 513.00

2 4485.00 9 15453.00 3 1539.00

2 3434.00 1 513.00

10 17170.00

Page 60: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Drainage System Efficiency Rate 70 % Tile EfficiencyDitch w/tile

Distance Primary Tile Total Improvement Distance from tile (40's)

(40's) Proximity Efficiency Efficiency Efficiency 0.3 0.6 1 1.3 1.6 2 3 4 5

100 100 100 95 90 85 80 75 70 60 50 40

0.3 95 4 99 99 94 89 84 79 74 69 59 49 39

0.7 90 7 97 97 92 87 82 78 73 68 58 49 39

1.0 85 11 96 96 91 86 81 76 72 67 57 48 38

1.3 80 14 94 94 89 85 80 75 71 66 56 47 38

1.6 75 18 93 93 88 83 79 74 69 65 56 46 37

2.0 70 21 91 91 86 82 77 73 68 64 55 46 36

2.5 65 25 90 90 85 81 76 72 67 63 54 45 36

3.0 60 28 88 88 84 79 75 70 66 62 53 44 35

3.5 55 32 87 87 82 78 74 69 65 61 52 43 35

4.0 50 35 85 85 81 77 72 68 64 60 51 43 34

4.5 45 39 84 84 79 75 71 67 63 58 50 42 33

5.0 40 42 82 82 78 74 70 66 62 57 49 41 33

5.5 35 46 81 81 76 72 68 64 60 56 48 40 32

6.0 30 49 79 79 75 71 67 63 59 55 47 40 32

6.5 25 53 78 78 74 70 66 62 58 54 47 39 31

7.0 20 56 76 76 72 68 65 61 57 53 46 38 30

7.5 15 60 75 75 71 67 63 60 56 52 45 37 30

8.0 10 63 73 73 69 66 62 58 55 51 44 37 29

Page 61: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Redetermined Benefits

JUDICIAL DITCH NO. 9

REDETERMINATION OF BENEFITS

SEPARABLE MAINTENANCE COST 3401234.00

IN POTENTIAL PROXIMITY NET MAINTENANCE

DESCRIPTION SEC T-N R-W TRACT BENEFITS RATE BENEFITS COST

NENW 1 101 39 38.30 74610.00 75 56227.50 21116.61

SWNW 1 101 39 40.00 20835.00 73 15569.55 5847.25

SENW 1 101 39 40.00 66930.00 76 51451.80 19323.06

NENE 1 101 39 29.64 51370.00 69 35445.30 13311.72

NWNE 1 101 39 34.66 66630.00 69 49124.70 18449.10

SWNE 1 101 39 40.00 47510.00 74 35213.65 13224.72

SENE 1 101 39 33.50 43030.00 81 37486.80 14078.41

NWNE 1 101 39 5.32 2190.00 69 1511.10 567.50

Page 62: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Improvement Benefits

JUDICIAL DITCH NO. 9 IMPROVEMENT PROJECT COST 5111913.00

DETERMINATION OF BENEFITS SEPARABLE MAINTENANCE COST 3401234.00

IMPROVEMWENT COST 1710679.00

IN POTENTIAL EFFICIENCY NET IMPROVEMENT

DESCRIPTION SEC T-N R-W TRACT BENEFITS RATE BENEFITS COST

NENW 1 101 39 38.30 74610.00 8 5968.80 4973.68

SWNW 1 101 39 40.00 20835.00 12 2500.20 2083.37

SENW 1 101 39 40.00 66930.00 13 8700.90 7250.29

NENE 1 101 39 29.64 51370.00 11 5650.70 4708.62

NWNE 1 101 39 34.66 66630.00 11 7329.30 6107.36

SWNE 1 101 39 40.00 47510.00 15 7126.50 5938.37

SENE 1 101 39 33.50 43030.00 13 5593.90 4661.29

NWNE 1 101 39 5.32 2190.00 11 240.90 200.74

Page 63: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Damages must been given for the easementacquisition for the area required to establishthe one-rod seeding area adjacent to thechannel required by Minnesota Statute No.103E.021. The lands taken are considered asa permanent easement only and will berestricted from use for commodity cropproduction. The damage value is thedifference between the current land valueand the value of the same lands with theeasement in place.

Page 64: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

REDETERMINATION OF BENEFITS

» To update or replace the original determination of benefits

• 1900-1915

• Drainage to provide additional hay and pasture ground

• 1950’s

• Only low areas were assessed. Maybe roads, no building

sites or uplands

• Now

• Changed land use – Additional drained acres – pattern tile

• Many systems have never been redetermined

Page 65: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

103E.021 DITCHES MUST BE PLANTED WITH

PERENNIAL VEGETATION.

Subdivision 1.Spoil banks must be spread and permanent

vegetation established. In any proceeding to establish,

construct, improve, or do any work affecting a public drainage

system under any law that appoints viewers to assess benefits

and damages, the authority having jurisdiction over the

proceeding shall order spoil banks to be spread consistent with

the plan and function of the drainage system. The authority

shall order that permanent grass, other than a noxious weed, be

planted on the ditch side slopes and that a permanent strip of

perennial vegetation approved by the drainage authority be

established on each side of the ditch.

Page 66: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

(b) When damages are determined to acquire or otherwise

provide compensation for buffer strips or alternative riparian

water quality practices previously installed as required by

section 103F.48, subdivision 3, the viewers and drainage

authority shall consider the land use prior to buffer strip or

alternative practice installation in determining the fair

market value of the property under paragraph (a), clause (1).

Page 67: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

The width of permanent perennial vegetation is the

greater of the distance from the top edge of the

constructed channel one rod (16 ½ feet) landward or to

the crown of the leveled spoil bank. There are two

exceptions - if the perennial vegetation is established

through a redetermination of benefits and damages or

voluntarily through the incremental implementation of

vegetated buffer strips and side inlet controls under

Minn. Stat. § 103E.021, subd. 6, then the width of the

permanent strip shall not exceed one rod (16 ½ feet)

from the top edge of the constructed channel.

Page 68: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Questions

Page 69: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,
Page 70: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Viewing, Viewers,

Benefits and Damages,

and Redetermination of Benefits

Page 71: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

How did we got to where we are today?

Why do we care about benefits and

damages?

What we consider as Benefits and

Damages in drainage proceedings?

Redetermination of Benefits?

Page 72: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Historic Areal photos can provide information on pre-project conditions

1954 pre-improvement

Page 73: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

2011 post improvement (shaded in conservation program)

Page 74: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

Engineering Assistance - Hydraulic Modeling:

In channel and out of bank flow can be modeled to indicate the change in flow from the

conditions that would have existed prior to the ditch system construction, those that exist

without changes watershed land use and those that exist today. In a similar watershed where

detailed modeling was completed, the following maps show the pre construction, as built

and current conditions of surface flows. Yellow is 2 year frequency, Green is 10 year

Page 75: Drainage Authority Redetermination of Benefits · Capability Units. In some local areas, soil capability units are used to identify soils that have similar management requirements,

The modeling indicated that with native conditions in the upper watershed the flows for the

2 year and 10 year storms were contained in the as constructed channel. This map indicates

the area of overtopping with current land use.Yellow and green are original flow elevations, pink and light green are 2 and 10 year current condition respectively