10-21-09 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL OCTOER 21, 2009 Assessment Policy. He noted that the maximum street assessment rate is being applied at $57.97 per front foot. The Engineer noted that this rate has been held to the 2008 rate given current economic conditions. He also noted that the minimum frontage is 75 feet, while the maximum frontage was reduced from 125 feet to 100 feet. The Engineer pointed out that side yard assessments are based on 20% of frontage. The Engineer noted that commercial property is being assessed at $118.18 per front foot for the actual amount of frontage. The Engineer then reviewed assessment payment methods available to property owners. Assessments can be paid in full or part at the City within the first 30 days with no interest. Unpaid balances will be certified to 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 15°i 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 15'x' 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 air 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. The City Administrator reported Mr. Richard Flipp, 431 Brooks Avenue, has a lot that is subdividable. Mr. Flipp has applied for a Development Deferral, requesting to defer the amount of the assessment that pertains to the portion of property that could be subdivided. That amount is $5,402.80 and would remain deferred until such time as the property is divided or the property owner requests the deferral be removed. Interest would accrue against the deferred balance at a rate of 5.25% per year. There was no one else present wishing to comment on the assessment for the Brooks-Arkwright improvement. Upon motion by Keis, seconded by Blesener, the public hearing was closed. 16