10-21-09 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL OCTOEI2 21, 2009 Ramsey County for collection with property taxes over a 10 year period at an interest rate of 5.25%. Once an assessment is certified to the County, property owners have the option of paying off their assessment balance any time during the 10 year collection period. The Engineer pointed out however, that balances paid after November IS~~' in any given year will be charged the next year's interest. Therefore, he suggested that property owners be aware of that date, and should they plan to pay their assessment, they should do so prior to November I S°i to save the next year's interest. The Engineer reviewed other related issues noting that senior citizens or disabled individuals on a fixed income can make application for an assessment deferral. He noted, however, that interest does accrue on deferred assessments. With regard to the interest on assessments, the City Engineer suggested that property owners consult with their tax advisors on whether or not this interest is tax deductible. He indicated that there is conflicting information on this issue. The Engineer then reviewed the proposed Assessment Roll pointing out that the Assessment Roll has been corrected due from what was previously available as the curb credit has not been applied in the previous version. One property owner asked about the timing for planting rain water gardens. The City Engineer indicated that the plants have been purchased and will be planted yet this fall. Tracey George, Thunder Bay Road, asked about the timing for paying assessments to the City with no interest, noting that the November 15°i day included in the notice is confusing. The City Administrator reported that assessments can be paid in full or part to the City by November 20, 2009 with no interest. The November 15 date refers to subsequent assessment payoffs to the County. Payment by that date avoids the application of the following year's interest to the assessment pay-off amount. Compton Veeramallay, Thunder Bay Road, asked about drainage at the intersections. He also asked about the City's reimbursement for driveway costs when the entire driveway is being redone. The Engineer reported that the City will reimburse a property owner for the driveway apron area if they are having a contractor redo the entire driveway. It is preferable to have the driveway apron done as part of the total driveway replacement to avoid a seam. The City wilt issue checks to property owners for this reimbursement. The Engineer also noted that there are gaps at the intersections at this time as only one lift of asphalt has been applied to Thunder Bay Road. The final lift will be added in the spring, after the street has gone through one freeze-thaw cycle. The ponding should be eliminated at that time. 10