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Financial Imulicatians <br />The project is proposed to be assessed consistent with the City's assessment policy, vvhich <br />sta.tes that 50% of the costs for roadway amproverr�ents will be assessed in residential areas, <br />with the remaining portion financed by various City funds. Financing %r the project is <br />consistent with past City policy and practice, and is summarized in the table below. The <br />proj�ct costs include engineering and averhead costs as outlined in the Assessment Policy. <br />im rovements Fundin Source Cost <br />Roadway Permanent Improvernent Reval�ing $ 1,116,548.70 <br />{PIR) Fund/Assessinents <br />Storm Sewer Surface Water Ente rise Fund $ 123,406.b6 <br />Sanitar Sewer Sanita Sewer Enter rise Fund $ 1b,551.52 <br />Watermain Watermain Ente rise Fund $ 159,474.23 <br />TOTAL PROJECT <br />COST � 1,415,981.11 <br />Tatal amount to be {SO% of roadway costs} $ 558,274.35 <br />assessed <br />TotaI arnount to be paid $ 857,706.76 <br />b the City <br />Property Type Per unit assessment Per unit assess�tnent <br />[ow-bid %asibili re ort <br />Single Family $ 2,813.86 $ 3,489.00 <br />Nursery Hitl Lane, Nursery Hill Court, <br />Dellwood Street, Arrible Road, Wyncrest <br />Court, Wyncrest Lane, Wynridge Drive, <br />Colleen Court, Janet Court <br />Multi-Family $ 592.21 $ 699.00 <br />Arden View Court, Arden Vievv Drive <br />The assessment palicy states that the assessment s�.all be based on the total �stimated <br />construction cosi, plus associated overhead costs. The policy also s#ates that the City Council <br />shall retain the right to review each project on its own merit and to deviate from any portian <br />of the Assessment Palicy Manual as it deems proper. As discussed at the public hearing and <br />as was prepared in the feasibility report, the proposed assessmen#s were based on the <br />contractor's bid prices. <br />At the March 1�, 20� l, City Co�ncil meeting, the City Council directed sta.ff to set the <br />payment period of the assessment to 7 years. The interest rate was set at 4.40%, which is 2% <br />over the current annualized rate of retUrn on the City's portfolio. This is a deeiation from the <br />assessment policy, which states the interest rate shall be prime rate plus 2%; this would mean <br />a rate of 5.25%. <br />City Council Meeting <br />IlMetro-inet.uslardenhiIlslPR&F W1EngineeringlCo�ncii_Actions1201114-25- <br />11Memo 2011PMP_AssessHearing_AwardBid.doc <br />Page 2 of 3 <br />