10-20-2004 Council Special Minutes

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MINUT.Tr5 CITY COUNCIL OCTOI3T';R 20, 2004 The City Engineer reviewed project costs noting that the estimated actual costs are lower than feasibility estimates. Project costs are as follows: Project Costs Assessab] Costs Street $471,579.00 $252,605.43 Watermain $699,987.83 $453,600.00 Watermain Loop $224,131.39 $] 12,065.69 T1~e City Engineer reviewed the City's Residential Assessment Policy noting that streets are assessed at 8S% of street reconstruction costs based on a 30-foot wide, urban section road. Typically street improvements are assessed on a front footage basis, but given the varying lot widths and sizes, a per unit street assessment is proposed. The City took the total assessable footage at the assessment cap amount and divided by the number of lots for the per unit assessment rate of $5,351.81. In the cases of larger properties that are subdividable, those properties were charged on a unit basis equal to the number of lots that could be developed from their property. The Engineer indicated that watermain is assessed at 100% of the cost of a 6 inch watermain with a maximum watermain assessment of $5,600 per lot plus au additional assessment of $1,37248 per lot 50% of the cost of bring Little Canada watermain under the freeway. The Engineer then reviewed assessment payment methods noting that property owners have 30 days from adoption of the assessment roll to pay the assessment in full or in part with no interest. If not paid, the City will certify the assessment balance to Ramsey County for collection with property taxes beginning in 2005. The assessment balance will be spread for ] 0 years at 5.5% interest It was pointed out that after certification of the assessment to the County, it could still be paid off in full at any time. 1lowever, payment should be made prior to November 15 of any given year. After November 15'x', the next year's interest is added to the assessment balance. The Engineer reviewed assessment deferment options, noting that subdividable properties are eligible for a development deferral. In that case the assessment for the undeveloped portion of the property can be deferred until the property is developed. Interest will continue to accrue on the amount until it is paid, but would not be collected if the property remains undeveloped- Senior citizens and disabled persons are eligible for deferments if they meet financial hardship criteria. Deferred assessments would, again, continue to accrue interest. "fhe assessment would become due upon: lleath of the owner if the spouse is not eligible for the 3