11-24-06 Council Special Minutes

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MINUTES CITY COUNCIL OCTOBER 24, 2006 LANE The City Engineer reviewed Che project costs for Rose Lane noting that Che feasibility study estimated total project costs at $335,700.00 and estimated assessable costs at $82,599.83. Estimated actual costs for the Cotal project are $254,000.00 and estimated actual assessable costs are $72,771.19. Project costs for Morrison Street feasibility study were estimated at $1.74,600.00 for total project costs and $30,130.68 for estimated assessable costs. Estimated actual costs for the Morrison project area $168,000.00 and estimated actual assessable costs are $37,]96.73. The Engineer reviewed the City's residential assessment policy noting that street reconstruction costs are assessed based on an 8"/3" urban section, 30-foot wide street. Assessments are based on front footage at a maximum street assessment race of $54.64 per front foot. Storm sewer rehabilitation costs are not assessed. Assessment payment methods were reviewed, noting that property owners can pay their assessmenC in full or in parC at Che City within 30 days of adoption with no interest being added. After the 30 day time period, remaining assessment balances are certified to Ramsey County for collection with property taxes. Assessment balances will be spread for collection over a ten year period at an interest rate of 6.5%. It was noted that should a property owner wish to pay off an assessment balance early, that payment should be made prior to November 15`x' in the given year. On November 15`x', the County adds the next year's interest balance Co the assessment payout. The Engineer noted that property owners on a fixed income, either senior citizens or permanently disabled, can apply for assessment deferrals. If assessments are deferred, interest will continue to accrue on the deferred amount. The Engineer noted that assessments and/or interest on the assessment are not tax deductible. However, a property owner could possibly Cake out a home equity loan to pay the assessmenC, with interest then being Cax deductible. However, individual property owners should verify this with their tax advisor. The Engineer noted that a development deferral can be applied to Che uudeve]oped portion of a larger lot that is subdividable. Again,interesC would accrue on a development deferral. The Engineer then reviewed the proposed assessment roll, as well as a sample amortization schedule should an assessment be certified to Ramsey County for collection. 11