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Page 2 of 2 <br /> <br /> <br />Also, the Council must establish the interest rate at tonight’s Council Meeting. Many cities set <br />their interest rate for assessments at two (2) percentage points over the bond interest rate. The <br />City’s assessment policy states that the interest rate used for the assessment shall be designated at <br />the prime rate plus two (2) percentage points. For the 2021 PMP, the assessment interest rate was <br />set at two (2) percentage points over the assumed bond interest rate which was based on current <br />market conditions at the time, our AAA rating, plus 15 basis points. The result was an assessment <br />interest rate of 3.15%. Our current assumed bond interest rate is 2.90% and the prime rate is <br />3.50%. Staff would recommend following the City’s assessment policy and setting the assessment <br />rate at 5.50%. <br /> <br />The total project costs were analyzed for the assessable cost. The calculation of the amount to be <br />assessed as approved by Council Resolution 2022-013 is shown below. <br /> <br />• The assessments related to the project are calculated in accordance with the City’s <br />Assessment policy, is half of the street project cost for residential properties. The <br />assessment rate is $5,834.34 per unit as compared to the Engineer’s estimate of $6,131.10. <br /> <br />Arden Oaks Streets <br />Item Calculation Result <br />Construction Cost X 27% Overhead $367,517.20 $466,746.84 <br />50% of Construction Cost $466,746.84 / 2 $233,373.42 <br />Assessment Rate $233,373.42/(40-units) $5,834.34 <br /> <br />The full detailed assessment roll can be seen in Attachment B. <br /> <br /> <br />Attachments <br />Attachment A: Assessment Area Map <br />Attachment B: Assessment Roll <br />Attachment C: Resolution 2022-023 <br /> <br /> <br /> <br /> <br /> <br />