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EN HILLS within 30 days after the assessment is adopted. Interest rates are set at the assessment hearing. City Council sets the assessment period. Residents can prepay at any time after levied. Approximately 2/3 of the assessments have been paid up-front for the last few projects. The residents' portion is 50% the project cost plus overhead. The current policy bases the assessment off of estimates; we could set the assessment after the project is completed, although the City may lose a lot of interest income. The City of Roseville assesses the year following the completion of the project. Johnson would like to know when the City makes payments to the contractor. The City retains payments and typically holds 5%until the project is complete. The current policy lists the percentage of overhead costs to be factored into the assessment. The City's administrative cost of 2.5% includes the staff time it takes to manage the assessment rolls and the costs that Ramsey County charges the City to certify the assessment rolls. Assessment Roll Preparation cost of 1% is the staff time in engineering and finance to prepare the assessment rolls and mailing costs for the preliminary hearings and the final hearing and adoption. The legal costs are for the City Attorney's work with assessment re w and appeals. In 2006, the reconstruction project cost totaled $1.8 lion, ich included water main, sanitary sewer and storm sewer work. The 2007 mill and erlay project totaled $700,000; this project cost less because it was mostly street maintenan w. not as many utility improvements. Mill and overlay projects typically involve less utility i ovements; mostly spot repairs. The 2002 Ingerson project totaled $2.2 million. Proje w_ i ry from year to year depending on the • length and extent of the proposed work. Cost° i n` uate due to rising fuel and energy costs, ultimately increasing construction costs - y r. How does this affect cash flow? We have to look at the CIP plan and our long ra ' pl . Th ity may have to consider bonding or cutting back if we want to pay cash for th o ' ncilmember Grant noted at one point the City Council projected that it costs $1 i _'er mile of reconstruction. We have about 30 miles of streets. Bronson would like to know whbeing asked of the committee. Primarily, the committee is being asked to give staff feedback to revisions that should be brought to the City Council. Currently these issues include; capturing the costs which have to be budgeted or recaptured in the budget like administrative charges, interest rate, timing of the assessments, length of the assessment payback period, and other areas that staff feels need clarification. Staff understands that not all issues involve the Financial Planning and Analysis Committee, but the committee should focus on the fiscal items and let other committees/commissions address the other areas. Timing of assessments: If the City were to assess early, the City takes a lower loss. Is it better for residents to be assessed after? The City may collect too much if residents are assessed prior to completion. There should not be a loss to the City; any interest lost should be expensed back to the residents. The feasibility report provides an estimate for the project resulting in the preliminary assessment amount. As part of the 429 process, Council orders the feasibility report for the project. Once • this is done, details are figured out and brought back to the Council for a public hearing, at which they approve or deny the project. At this hearing, residents have the opportunity voice their City of Arden Hills