10-09-2023 Assessment Hearing Packet - Spruce-Sunset-Sunrise-Sunrise MO

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2 • Assessments for Spruce Street total $137,008 and represent 50% of street costs. o The proposed assessments represent are 22% higher than originally presented with the Feasibility Report ($122,439.59) due mostly to higher contractor bid pricing for this area. • Assessments for Sunset Court total $96,000 and represent 50% of street costs. o The proposed assessments represent are 7% lower than originally presented with the Feasibility Report ($103,668.00) due mostly to lower contractor bid pricing for this area. • Assessments for Sunrise Drive total $48,153 and represents 47% of the street costs. o The proposed assessments are 32% lower than originally presented with the Feasibility Report ($71,235.00) due mostly to lower contractor bid pricing for this area. • Assessments for Sunrise Drive M&O total $15,430 and represent 25% of street costs. o The proposed assessments are 36% higher than originally presented with the Feasibility Report ($11,344) due mostly to higher contractor bid pricing for this area. o The final assessment amounts shown represent a 25% assessment rate instead of the typical 50% assessment rate. The City Council expressed interested at the Improvement Hearing to assess at a reduced rate due to the project area being accelerated to better coincide with the adjacent reclamation of Sunrise Drive. The additional funding from Fund 450 to accomplish this credit is $15,430. • The net result looking across all four project areas is a net decrease in proposed assessments of 0.7%. • The proposed interest rate for special assessments is 5.5%. The proposed interest rate represents the industry municipal bonding rate of 4.5% plus a 1.0% factor for the City’s finance and administrative costs. SOURCE OF FUNDS Street and utility improvements will be funded through the City’s Infrastructure Capital Improvement Fund and special assessments. STAFF RECOMMENDATIONS: Staff recommends that the City Council pass Resolutions adopting assessments for the 2023 Street Improvement Project Nos. 2023-01, 2023-02, 2023-03, and 2023-05. Staff also recommends the City Council adopt the assessment rolls, interest rate, and certification to Ramsey County.