03-05-2007 WS - Laserfiche WebLink

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2B. Reduce the assessment percentages – Currently the City assesses at a rate of 25% of the actual construction cost for single family residential property throughout the program. As an option, this percentage could be reduced or eliminated. Please note that this may cause issues for property owners that were previously assessed. The potential impacts to the City’s finances would need to be determined. 2C. Lower the interest rate - The current practice of assigning an assessment interest rate is based on the Roadway Major Maintenance Financing Policy which states: “The assessment rate will be based on the project cost including the rate of interest on bonds sold to finance the project plus a surcharge of one percent.” This rate has been approximately 5-6% in recent years. Perhaps look at a much lower rate or even look at not assigning interest. Interest accrued on debt is a big issue with Mounds View residents; this is especially true with senior citizens. Eliminating interest will allow residents a better opportunity to afford a proposed project. It will also make the City’s deferral option, which is available to seniors and permanently disabled citizens, meeting certain financial income requirements, more appealing. Having a set assessment and knowing that you would have 10 years to pay it off without interest may make the program very appealing to citizens. In deferral options cases, the assessment would not accrue interest and would not be due until a future date when the property owner sells their home. The potential impacts to the City’s finances would need to be determined. The City could also look into a reduced amount for property owners who wish to pay their assessment in full. 2D. Extend the payment period – The current policy based on the Roadway Major Maintenance Financing Policy states: “The cost of the roadway major maintenance and related utility improvements will be assessed over a period not to exceed 10 years.” This time period could be extended to a longer period – such as 15 years. Please note that bonding periods are typically 10 years. The potential impacts to the City’s finances would need to be determined. 2E. Utilize Utility Funds to assist in financing the water, sanitary sewer, storm sewer, and water quality items. 2F. City to pay 100% for Curbs – The current policy states: “The cost of lateral and main storm sewer, sidewalk / pathway, and curb and gutter improvements, maintenance, new, and reconstruction within the area where streets are receiving major maintenance will be included in the project cost to be assessed at the same rate as the street portion.” The City Council could consider having the curb and gutter portion of a project be funded 100% via City funds. An argument could be made that curb and gutter is part of the overall storm sewer system which benefits the entire