01-26-09 Council Special Minutes

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MINUTES CITY COUNCIL JANUARY 26, 2009 today, the City would utilize an interest rate of 4.75% for a ten year assessment, which is below the rates charged for the past five years. The Administrator presented a sample assessment calculation comparing a 6% interest rate and a 4.75% interest rate, noting a savings of just over $500. Another option would spread the assessment out over a 15 year period, however, the interest rate for that time period would be approximately 5.35%, increasing interest costs to the point where this may not be the best option. The Administrator also pointed out that there assessment deferment options available, however, noted that interest continues to accrue on deferred assessments. A property owner asked how wide Eli Road is currently. The City Engineer replied that the pavement width varies from 26 feet to 29 feet. The new street would be centered within the right-of--way; therefore the additional pavement width would occur on either side of the sheet. The Engineer also explained the surmountable curb versus barrier indicating his preference for barrier. He noted that it would be up to property owners as to which type of curbing is utilized. A couple of property owners indicated their preference for bituminous curbing with the City Engineer indicating that the City's policy is to reconstruct utilizing concrete curbing. It was noted that concrete curbing has a life of approximately 50 years. One property owner expressed concern for the amount of the assessment noting that many people on Eli Road are retired, are on fixed incomes, and do not drive anywhere. The property owner noted the traffic volumes on Eli Road and Desoto Sheet from school traffic as well as park and ball field traffic. The City Administrator noted that the proposed assessment is a residential assessment similar to how other residential properties in the City are assessed when roads are reconstructed. He noted that the assessment to the school and the City is a commercial assessment. The Administrator pointed out that Eli Road and Desoto Street would be constructed to a commercial standard to accommodate the school and park traffic. However, property owners are being assessed at the residential rate. One property owner contended that the reason the roads need to be reconstructed is due to the school bus and park traffic, not because of residential traffic. The City Administrator noted that the City's Assessment Policy provides for an equitable assessment of residential properties regardless of the varying situations on each roadway. The Administrator felt that the policy was fair to all taxpayers. One property owner pointed out that since the last time the City considered improving these streets, there has been no street maintenance 13