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Mayor & City Council <br />Assessment Policy <br />Page 2 <br />that there is no consistent practice between communities in <br />determining what portion of project costs should be <br />assessed to benefitted property owners. Therefore, I feel <br />the issue relates to benefits received. As a result, my <br />recommendation is that the City utilize a flat rate <br />assessment of $50.00 per lineal foot based on 1993 costs <br />for projects under consideration. <br />I arrived at the $50.00 per lineal foot number based on <br />information contained in the spreadsheets as well as <br />reviewing past project information from 1986. At that <br />time, Lake Street was supposed to be constructed at an <br />assessable rate of $35.81 per lineal foot. Applying the <br />consumer price index adjustments from 1986 up until now <br />would yield a current rate in equivalent dollars of $45.78 <br />per lineal foot. Therefore, $50.00 would seem to be a <br />reasonable medium between the upward range of what the <br />appraiser is saying may be justifiable versus the CPI <br />adjusted 1986 rate. <br />Furthermore, costs to date are based on estimated amounts. <br />If savings are realized, this benefit would accrue to the <br />City thereby reducing the City's share. Also, the flat <br />rate amount treats all properties the same which I feel is <br />more equitable to property owners. This statement has been <br />supported by the appraiser as well, i.e. A street is a <br />street regardless of the soil conditions. <br />To document this recommendation, the draft assessment <br />policy for street construction is included for you review. <br />It incorporates the flat rate adjustment into the program <br />and establishes some criteria by which streets will be <br />reconstructed. <br />The last spreadsheet which is included in you packet does a <br />cost analysis based on a comparison of the current <br />assessment policy with the proposed flat rate policy. You <br />will note the total City costs by using the flat rate <br />assessment for the three projects listed would increase by <br />a total of $147,000. The key factor in question is the <br />City's ability to provide for this additional cost. <br />Given the fact that there is considerable material to <br />digest in'a short period of time, it may be necessary for <br />the Council to conduct a workshop to review and discuss <br />this policy as well as the financial implications of a <br />street reconstruction program before making any final <br />decisions. <br />Page 2 <br />