10-17-2012 Council Special Minutes

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MINUTES CITY COUNCIL OCTOBER 17, 2012 cost of the project is assessed at 50% with the balance being paid by the City. He explained that the City's Assessment Policy provides for a residential assessment rate and a commercial assessment rate. The commercial rate is twice the amount of the residential rate and is applied to commercial properties with direct access onto the street. Commercial properties without access are assessed at the residential rate. In this particular project there is one commercial property with access and one without. The Engineer then reviewed assessment payment options noting that property owners can pay their assessment in full or part to the City within 30 days of adoption of the assessment (through November 19, 2012) with no interest. After that 30 -day period, the unpaid assessment balance will be certified to Ramsey County and spread for collection with property taxes for a 10 year period at 4.5% interest. The Engineer noted that once an assessment balance is certified to the County, the property owner can pay it in full during the 10 -year period. However, that payment should be paid by November 15`" of any given year in order to avoid the next year's interest being added to the pay -off amount. The Engineer also pointed out those property owners on a fixed income can utilize an assessment deferral if they meet certain criteria. He noted, however, that interest continues to accrue on deferred assessments. The City Engineer reviewed the proposed Final Assessment Roll as well as an assessment amortization schedule showing the payments and interest should an assessment be certified to Ramsey County for collection with property taxes. Pat Henry, 89 County Road C, indicated that the total cost of the project appears reasonable. Blesener noted that the City has received very competitive bids in the past few years. Don Durose, 103 Rosewood Drive, indicated that the seeding that was done has resulted in more weeds coming up than grass. The City Engineer indicated that the contractor would be reseeding. The City Administrator reported that the reseeding would likely be done yet this fall and it will lay dormant over the winter. Pat I Ienry noted that his property is both commercial and residential and expressed concern with being assessed solely at the commercial rate. Henry suggested that it would be more equitable to assess half his frontage at the commercial rate and the other half at the residential rate. Henry noted that his business does not generate much traffic, and virtually none during the winter months. Henry asked if the assessment was based on a policy or just an arbitrary calculation. 3