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The �easibility report outlines #he method in which assessable units were determined. The <br />following summarizes the parcels that were included as more than one residential <br />equivalent unit (REU) per property. <br />Sub-dividable propexties <br />1224 Amble Road: This residential property has approxirnately 297 feei of front footage <br />and is appraxi�.ately 290 feet deep; for a total lot size of approximately 85,813 square <br />feet. In accordance with th� City Code, this lot can yield a maximum of three (3) REUs. <br />Tax-exempt pro e� rties <br />The assessment poiicy states �hat tax-exempt properties are to be assessed based on l0a% <br />of the roadway improvements, pius associated overhead costs. The tax-exennpt equivalent <br />assessment rate shall be set by the City Councii. For tl�e purposes of determining this <br />rate, siaff has converted Tax-exempt Equivalent Units {TEU) to Residential Equivalent <br />Units (REU) as descrik�ed beiow. <br />Cummings Park is a Ciry owned parcel that has front footage on the proposed <br />improvements at the Wyncrest Court cul-de-sac. In the �easibility report, City staff listed <br />the ��-exempt property in the preli�ninary assessmen� rall as faur (4} REUs. <br />Qn past project,s, the City Council has removed the �-exempt units frozn the assessmeni <br />roll. The following table shows the proposed assessment rate if the tax-exempt properties <br />axe removed from the assessment roll. <br />Interest rate <br />Far recent PMP projects, the Czty Council has set the following interest rates: <br />Pro'ect interest rate <br />20fl4 PMP 4.8% (2% aver annualized rate of retut�) <br />2010 PMP 4.5% (2% over annualized rate of return) <br />The assessment policy states that the interest rate shall be set at prime plus two percent. <br />Prime rate is curr�ntly 3.25%; this would mean an interest rate of 5.25%. The current <br />annualized rate of re�urn on the City's partfolio is 2.4%. If the City Council were to set <br />the interest rate at 2% over the annualized rate of return, the rate would be 4.9%. Staff is <br />seeking direction from the City Cauncil as to the interest rate to be used with tl�e 2011 <br />assessments. <br />Pa ment Period <br />City Council Meetumg <br />11Metro-inetlardenhi11s1AdminlCouncillAgendas & Packet In%rmation12 0 1 113-1 4-i i RegularlPacket Informationl3-14- <br />11Memo_2011PNIl' DeclareCosts.doc <br />Page 4 of 6 <br />