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ARDEN HILLS CITY COUNCIL—MAY 9, 2022 4 the City must follow the process outlined in State Statute 429. On March 14, 2022, after the bids were opened, the City Council adopted Resolution 2022- 014 Declaring Costs to be Assessed and set today as the date for the assessment hearing. A public hearing prior to adopting the assessments is a requirement of State Statute 429. Public Works Director/City Engineer Swearingen reported the project is proposed to be assessed consistent with the City's Assessment Policy and past practices, which states that 50%of the costs for roadway improvements will be assessed in residential areas, with the remaining portion financed by City funds. Financing for the project is consistent with City policy and past practice and is summarized in the table below. The project costs include 27% engineering and overhead costs. Also, the Council must establish the interest rate at tonight's Council Meeting. Many cities set their interest rate for assessments at two (2) percentage points over the bond interest rate. The City's assessment policy states that the interest rate used for the assessment shall be designated at the prime rate plus two (2) percentage points. For the 2021 PMP, the assessment interest rate was set at two (2) percentage points over the assumed bond interest rate which was based on current market conditions at the time, our AAA rating, plus 15 basis points. The result was an assessment interest rate of 3.15%. Our current assumed bond interest rate is 2.90%and the prime rate is 3.50%. Staff would recommend following the City's assessment policy and setting the assessment rate at 5.50%. Public Works Director/City Engineer Swearingen explained Snelling Avenue North assessment rate of$4,958 per unit as compared to the Feasibility Report estimate of$4,524. The assessments related to Cummings Lane are calculated in accordance with the City's Assessment policy, is half of the street project cost for residential properties. Cummings Lane assessment rate of$4,935 per unit as compared to the Feasibility Report estimate of$4,071. Public Works Director/City Engineer Swearingen stated as provided for in State Statute, no appeal may be taken as to the amount of any assessment adopted unless a written objection signed by the affected property owner is filed with the City at or prior to the assessment hearing. After the adoption of the assessment roll, property owners who have submitted an objection in writing have 30 days to serve notice of an appeal to the City, and within 10 days after serving notice to file with the District Court. Formal objections that were submitted in writing to City staff have been forwarded to Council for review. Any other written objection received prior to Monday evening will be provided to the City Council at the assessment hearing. Brad Fisher, Bolton & Menk, commented further on the assessments for the Snelling Avenue North Street and Utility Improvement project. He explained the low bid was received from T.A. Schifsky & Sons. The cost for the project improvements was reviewed with the Council and it was noted the project would be funded by six different sources. The properties that would be assessed through this project were detailed along with the assessments rates for Cummings Lane and Snelling Avenue. He reported a newsletter was sent by T.A. Schifsky to the property owners within the project area and work has begun on the project. The manner in which assessments could be paid to the City was described and he asked for comments or questions. Mayor Grant opened the public hearing at 7:30 p.m.