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Council member DeLapp mentioned the possible assessment cost to residents given the <br />current policy. He also mentioned that the individuals who use the road but don't live on <br />it should pay a portion. The Mayor mentioned that we will have to rank street projects <br />once the funding sources have been identified. The reconstruction projects are very <br />costly and the City may need to consider bonding. The Mayor mentioned we need to <br />continue with our crack sealing and overlay programs to prevent/minimize reconstruction <br />costs in the future. Council member DeLapp stated that the residents paid for the roads <br />when they moved in and are paying a portion through taxes for roads in other parts of the <br />city. <br />The Mayor asked that the construction year for Hill Top be verified. The houses in that <br />area were built before 1988. <br />The Mayor stated between now and 2007, there are 4 major reconstruction projects. The <br />City Planner said that we will have better numbers if projects are combined. The Finance <br />Director also mentioned that we might be able to partner with a neighboring community <br />with our projects to drive the price lower. The Mayor mentioned the City may need to <br />consider bonding for the street improvement projects. The Mayor also mentioned we <br />may need to look at pushing the number of years for repayment of assessments out <br />further. The Finance Director mentioned Cottage Grove has a 15 year assessment <br />payback time period. The Finance Director mentioned she has discussed bonding <br />philosophy with the City Administrator and would like to have a future discussion with <br />the Council. Interest rates are very low right now and it might be beneficial to bond for <br />projects. <br />Council member DeLapp inquired about cut de sac assessments. He inquired specifically <br />about why the cut de sacs on 42°d street are not included in the CIP. The City Planner <br />responded that they are not needed, the traffic volumes are very low. There was <br />discussion that there must be benefit to the homeowner if there are assessments. <br />Council member Siedow inquired about what other communities, states are doing in <br />assessing for cut de sacs. The Finance Director responded that Cottage Grove redid cut <br />de sacs at the same time as the roadway and were assessed accordingly. It was cheaper to <br />do everything at one time without incurring costs a couple of years later and bringing the <br />equipment onto a new roadway. She also expressed that Cottage Grove is urban with <br />curbs and gutters and is not comparable to Lake Elmo's roadway system. The Finance <br />Director agreed to check into what other cities have done, specifically a more rural area <br />with cut de sacs and cluster developments and that this should be addressed in the City's <br />assessment policy. <br />Council member DeLapp also addressed assessments for MSA roads. The Mayor <br />restated the City is looking at its assessment policy and the concern is the reconstruction <br />project costs in the CIP. The CIP will go to the Planning Commission for public hearing, <br />the City will continue to look at the special assessment policy and will need to address <br />long-term funding requirements and strategies. <br />Page 7 of 9 <br />