09-18-89 Council Special Minutes

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MINUTES CITY COUNCIL September 18, 1989 Wilson pointed out that the City Engineer's estimates are between $300,000 and $350,000 for this improvement. However, Wilson felt there should be some additional capitalized interest included and is using a range of $320,000 to $370,000 for the project. Wilson also pointed out that the City Engineer has budgeted between $40,000 and $45,000 for acquisition of easements, however, pointed out that these are only estimates. Wilson reported that the City Council has discussed treating all property owners benefiting by this improvement alike, and these are the assumptions that he is using for cash flow purposes. Fahey pointed out that Bond Counsel has indicated that they doubted that the benefiting property owners could be treated differently. Wilson pointed out previous Council discussion that a $13,000 assessment for the improvement appeared to be reasonable, and this is the figure that he is trying to use to make the project work. Fahey asked what other similar projects in the City have been assessed, for example, Valento Lane. Fahey stated that he would like this information. Wilson reported that he has identified the income sources for the project, which include increment from the shopping center, from the homes, and special assessment income. Wilson reported that he previously overstated the increment income from the homes, and reported that the taxes generated will be dependent on the Governor's tax bill. Wilson pointed out that the build-out rate that he used has remained the same. Wilson reported that the numbers look better than they did previously, however, pointed out that he has taken a conservative approach. Wilson reported that the project could support a$440,000 bond issue, however, the project is feasible with a$370,000 bond. Wilson stated that he would not feel comfortable changing any of the assumptions that he has made. Page 2