10-17-05 Council Special Minutes

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MINUTES CITY COUNCIL OCTOB);R 17, 2005 The Engineer noted that there are both residential and commercial properties abutting the improvement. He reviewed the City's residential assessment policy which assesses at 85% of street reconstruction costs based on a 30 foot wide urban section street regardless on the actual street section that is constructed. This equalizes the assessment cost for residential properties. In addition, the City has a maximum street assessment rate of $53.05 per front foot. However, given the variety of residential lot shapes and sizes, residential properties are proposed to be assessed on a unit basis at $5,518.85 per lot. The City's commercial assessment policy assesses 80% of street reconstruction costs as well as 100% of curb and gutter costs. The maximum commercial street assessment rate is capped at $108.15 per front foot. The Engineer then reviewed assessment payment methods noting that property owners can pay their assessment in full or in part, with no interest accruing, at the City within 30 days of adoption of the assessment roll. Unpaid assessments will be certified to Ramsey County after the initial 30 day period for collection with property taxes. The assessments will be spread over 10 years at 5.75% interest per year. The Engineer also noted that any time after certification, property owners can pay their assessment off in full to Ramsey County. If at some point property owners intend to pay their assessment off prior to the 10 year term, payment should be made prior to November 15'x' of the year in which paid. Otherwise, State Statute requires that the next year's interest be charged against the assessment balance. At this point, the public hearing was opened for comments from the general public. Bob Bruski, 2740 Noel Drive, asked if the assessment was tax deductible. The City Administrator reported that neither the assessment cost nor the interest charged against the assessment are tax deductible. He noted that some property owners will take a home equity loan to pay the assessment, Chat should make the interest on the assessment balance tax deductible if a taxpayer itemizes deductions. Jeff Jewitt, 2737 Noel Drive, expressed concern about traffic speeds on Noel Drive. Bruski agreed. The City Administrator indicated that he would contact the Sheriff's Department about a speed study as well as enforcement. There was no one else present from the general public wishing to comment on this matter. There were no written objections received relative to this assessment