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Industrial Reclamation Areas 70% Estimated Street Project Costs = $280,000 Residential Equivalent Units = 334 (assumes 3 REU's per Acre) Calculated Assessment Rate = $840 per REU To ensure the calculations resulting from the application of the City's assessment policy are in line with an appraiser's opinion of benefit to the properties in each improvement/zoning category, the City enlisted the services of Nagell Appraisal & Consulting to conduct a general benefit appraisal on the properties throughout each unique project area. The general benefit appraisals are included in Appendix D. The general benefit appraisals resulted in a range of benefit values for each improvement/zoning category, as indicated below: Residential Mill & Overlay Areas SF Residential Non -Lakefront Lot Benefit Appraisal Assessment Rate = $3,000 to $4,000 per REU SF Residential Lakefront Lot Benefit Appraisal Assessment Rate = $4,000 to $5,000 per REU Residential Reclamation Areas SF Residential Non -Lakefront Lot Benefit Appraisal Assessment Rate = $8,000 to $10,000 per REU SF Residential Lakefront Lot Benefit Appraisal Assessment Rate = $9,000 to $11,000 per REU Industrial Reclamation Areas Office/Industrial Benefit Appraisal Assessment Rate (up to 5 Acres) _ $0.15 to $0.25 per SF Office/Industrial Benefit Appraisal Assessment Rate (exceeding 5 Acres) _ $0.02 to $0.05 per SF Since the assessment rates calculated based on the City's assessment policy fell within or below the assessment rate range for each improvement/zoning category, it is proposed to maintain the assessment rates calculated based on the City's assessment policy for the project, or as directed by the City Council. See Figure 2 through Figure 4 in Appendix A for the assessable properties map that correlates with the parcel numbers on the preliminary assessment roll. The project costs for the remaining street costs and for the storm sewer, sanitary sewer, watermain, trails, and Karth Lake improvements will be the cost responsibility of the City. Proposed project funding sources are a combination of the City's Permanent Improvements Revolving (PIR) fund, utility funds, special assessments for street improvements, possible grant funds if grant applications are successful, and the potential for KLID participation. The proposed project assessments and funding summary are based on preliminary estimated project costs for the recommended base project improvements. These costs may be revised at the time of the final assessment hearing depending on the final design of the project, required right- of-way and/or easements, soil conditions, bids received, and actual work performed. The assessments are proposed to be assessed over a 10-year period at an interest rate to be set by the City Council. A summary of the funding breakdown, exclusive of design alternates/options and assuming the total assessments amount is based on the calculated assessment rates, is presented in Table 4 below. Prepared by: Bolton & Menk, Inc. FUNDING & ASSESSMENTS 2026 PMP Street & Utility Improvements 125X.137753 Page 19