10-17-2012 Council Special Minutes

Home Browse Search

MINUTES CITY COUNCIL OCTOBER 17, 2012 Ayes (4). Nays (0). Resolution declared adopted. IMP. NO. Mayor Blesener opened the Public Hearing to consider adoption of 2012 -04 the assessment roll for Improvement No. 2012 -04, Sylvan Street (from SYLVAN County Road C to the cul -de -sac), by mill and overlay of bituminous STREET road surface as well as repair /replacement of damaged concrete curb and gutter sections. The City Engineer reviewed the project costs, noting the feasibility estimate for the improvement was $85,500. The low bid came in at $80,063 while actual construction costs were $65,775.35. The final assessable costs of this project are $32,115.10, based on the City's policy of assessing 50% of the cost of the street project. 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 15111 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. A property owner asked if the interest rate of 4.5% was simple interest. The City Engineer replied that it was and would only apply to assessments that are certified for collection with property taxes. The property owner asked why costs such as this are not paid by the City. The City Administrator indicated that the City does pay for half the project costs, with the other half paid by property owners. The City Administrator pointed out that the City's property tax rate would be much higher if the City paid 100% of the cost of street improvements. There is also the issue of ensuring equity between different types of properties in allocating these costs. The Administrator noted that it is typical for cities to assess a portion of the cost of these improvements. The Administrator also noted the City has an Infrastructure Improvement Plan which provides a 7