1990.11.26 CC Minutes - Road Improvements

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Special City Council meeting of November 26, 199fr Page Huber, emphasized that the proceedings were being conducted pursuant to Chapter 4?9 of the Public Improvement Code. He stated that if this improvement was order, the fiancing would be done through the issuance of bonds pursuant to Chapter 475 of Minnesota Statutes. He then reviewed the advantages of doing this project now as opposed to waiting to a later date. He stated that a study done by Washington County in 1984 indicates that properly maintained gravel roads are approximately $1,000 per mile/year more expensive than maintenance of existing bituminous roads. He then outlined what costs are taken into consideration to determine the total project cost. He stated that the financing proposal presented to the City Council would involved the sale of approximately 1.5 million dollars in bonds, with a debt repayment schedule of 15 years, at an estimated interest rate of 7.20%. He pointed out that the total principal and interest payments over that 15 -year period would be approximately 21.6 million dollars. The estimated debt payment to retire these bonds was estimated at approximately $165,928 annually. He then pointed out that the source of revenue for the retirement of this debt would be as follows: approximately $.34,845 projected assessments collected and $131,C)E33 of additional tax levy over and above that currently levied by the City. Mr. Huber then reviewed how the assessment rate was determined, and pointed out that the current projected assessment rate of $4.95 per lineal foot was only an estimate. Although this cost should be fairly accurate, it was pointed out that the actual assessments for the project would not be determined until project completion, and an assessment gearing is held in 1.991. He stated that only benefiting property adjacent to the improvements would be assessed. Mr. Huber then reviewed how the assessment rate would affect both interior lots and corner lots with regard to the City's assessment policy. He stated that property owners would have the option of prepaying the assessments or paying the assessment off with their taxes over a 15 -year period at approximately 9% interest. He pointed out that if the actual size of the project is reduced, or the amount of benefiting property is reduced, the uniform assessment rate may also be adjusted. Mayor Atkinson then opened the meeting for public comments from the audience. Of the approximately 175 people present, many addressed the Council expressing their support or opposition to the proposed project. In addition to public comment, two petitions were submitted; one opposing 132nd Street, and one supporting Irish Avenue and 1.3(--)th Street. After ta�::ing input for approximately two hours, Mayor George Atkinson closed the public hearing. He then requested input from the newly -elected Councilmembers. Mayor Atkinson then read the proposed Resolution 1990 -.?7. McAllister made motion, Vail seconded, to adopt RESOLUTION 1990-7.7, RESOLUTION ORDERING IMPORVEMENT AND PREPARATION OF PLANS FOR CAPITAL IMPROVEMENTS PROJECT PHASE, PROJECT #1990-1. The resolution amended the project proposed by deleting 132nd Street in its entirety and Inwood Avenue, 175th Street, and Ingersoll Avenue between 180th Street and 170th Street.