10-21-09 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL OCTOER 21, 2009 DRIVF,S residents with construction-related issues. Residents with those types of questions or concerns will be contacted following the meeting. 'fhe Mayor also noted that any property owners objecting to the assessment proposed for their property must submit a written objection this evening. The City Engineer reported that originally the Westwind and Windrow project was plamied as a basic mill and overlay project. However, due to significant deterioration of these street, it was determined that both lifts of blacktop needed to be removed and replaced resulting in a better final product. The City Engineer noted that given the more substantial work that was done, the cost of the project increased from what was originally estimated at the improvement hearing. Property owners were sent a notice early summer explaining both the expanded project as well as the increased cost. The Engineer then reviewed the Westwind and Windrow Drive project cost details, indicating that actual costs are $207,573.20, and of that amount $103,786.60 is being assessed. The Engineer then reviewed the City's Assessment Policy. He noted that 50% of the cost of mill and overlay projects are assessed, with the City paying the other 50% of costs. The Engineer noted that based on the assessment policy, the residential rate is $17.77 per front foot with a frontage minimum of 75 feet and maximum of 125 foot maximum. Side lots are assessed at 20% 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`x' in auy 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 tp November I S"' 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 noting the cost increase due to the expanded 5