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Feasibility Report TKDA Project No. 18196.000 City of Arden Hills Page 11 Assessment Policy: Per the City’s Assessment Policy, benefiting properties shall be assessed 50% of the street improvement costs. The remaining 50% shall be paid through the Pavement Improvement Revolving Fund. The term of the assessment is proposed to be 10 years. The interest rate for the term has not yet been set and will be provided as the process moves forward. The interest rate was assumed to be 3.15% for the purpose of this report. The area proposed to be assessed is every lot, piece, and parcel within the City limits benefiting from the Arden Oaks Neighborhood improvements, with addresses on the Arden Oaks roadways, within the following described areas located within Section 27-SW, Township 30N, Range 23W, as described on 2 plats: Arden Oaks and Shady Oaks Addition. Per paragraph I in the Definitions Section of the assessment policy (page 8), we do not recommend placing an assessment on the park within the Arden Oaks neighborhood. The intended use of the park appears to be for the local residents of the neighborhood and is not intended for regional use. The improvement cost is assessed on a unit basis to the benefiting properties as per the Assessment Policy adopted by the Arden Hills task force in 2004, and as amended. Due to the lower density of homes within the neighborhood and the parks centralized location, the assessments for the improvements are above average compared to other recent assessments for similar work in the city. See Exhibit 5 for the preliminary assessment roll and Exhibit 6 for the preliminary assessment map. Assessment Calculation and Estimation: The assessable amount is divided by the number of units within the project area; each lot shall count for 1 unit. The preliminary assessment calculation is derived from taking the overall assessable project costs, multiplying by 50%, and then dividing by the number of units within the project area. The units are shown in the Arden Oaks Neighborhood preliminary assessment roll and include a total number of 40 units. Below is the calculation for the assessments for both project options. Table 3 displays the assessment calculation and estimation. Table 3: Assessment Calculation Full Depth Reclamation Total Project Cost $ 583,000 Assessable Amount $ 524,800 Assessment (50% of Assessable Amount) $ 262,400 Single Family Dwelling Units 40 Units Unit Assessment (Assessable amount/ 40 Units) $ 6,560 /Unit Funding Sources: Funding sources for this project are proposed to come from municipal levy, assessments, and utility funds. Table 4 summarizes the funding sources for the two project options. Table 4: Project Funding Funding Breakdown - Full Depth Reclamation Amount Permanent Improvement Revolving Fund (PIR) $263,007 Special Assessments $262,400 Utility Fund – Storm Sewer Fund $ 42,100 Utility Fund – Sanitary Sewer Fund $ 12,382 Utility Fund – Water Fund $ 3,111 TOTAL $583,000