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MINUTES <br />CITY COUNCIL <br />OCTOBER 13, 1992 <br />would be $1,573. Assuming a 15 year assessment at 8 <br />1/4~ interest would be $568.84 in 1994 and $275.20 in <br />the final year. Interest paid over the 15-year period <br />would be $2,516.88. The Administrator reported that <br />the average payment for a 10 year assessment would be <br />$538.65, and $422.00 for a 15 year assessment. <br />The Administrator reported that the City has been <br />typically assessing on a 10 year basis. The City's <br />fiscal agent recommends 8 to 12 year assessment periods <br />and has indicated that in longer assessment terms the <br />increased interest payments offset the reduction in <br />annual payments. <br />Erickson asked if interest paid for assessments was tax <br />deductible. <br />The City Administrator recommended that property owners <br />check with their accountants, however, it was his <br />understanding that this was considered personal <br />interest and not tax deductible. <br />The City Engineer pointed out that the property owner <br />has 30 days from the adoption of the assessment roll to <br />pay off the assessment in full without interest. <br />The City Engineer pointed out that currently the north <br />east quadrant of the City is served with one 8-inch <br />water main. For system reliability, the City would <br />like to see another connection to this quadrant of the <br />City. The loop would provide for more system <br />reliability and greater fire protection capabilities. <br />A property owner then suggested that the northeast <br />quadrant of the City pay for the water main <br />improvement. <br />The Engineer pointed out that those property owners <br />have already paid for water main in front of their <br />homes. <br />One property owner indicated that he had a good well <br />and did not need water main. <br />The Mayor read the letter from the Fire Chief dated <br />october 13th stressing the importance of looping the <br />City's water main system in this area for better fire <br />protection. <br />Kathy Karon, 3076 Edgerton, pointed out that she has <br />one of the narrowest lots on Edgerton. Karon <br />questioned why she should be assessed the same rate as <br />someone with a large lot. <br />Page 10 <br />