CCP 03-16-1998 - Laserfiche WebLink

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_______n___ Memorandum, 1998 PMP Reconstruction Assessment Rate . Page Two March II, 1998 ~lternative No.1 - Buydown Rate with Additional Revenue The turnback and later reconstruction of Stowe Avenue from New Brighton Road to Cleveland Avenue will result in an additional County Aid revenue source of approximately $50,000. Assuming this funding is used to net overhead costs of the 1998 projects, the assessment rate could be reduced to approximately $45.20 as shown below: Total Hard Costs $453,647 Overhead at 26% $117,948 Less: County Aid ('iO 0001 Net Overhead 67,948 Total Alt. No. I Costs $521 59'i Total Footage 5769.23 Total Cost Per Foot $ 9041 Assessable Cost Per Foot $ 45 20 The impact of this alternative would be to reduce total reconstruction assessments from an "Assessment Hearing Notice" level of$281,835 to $260,776, a reduction of$21,059, or 7.5%. While reducing the assessment rate 8.8%, this alternative still results in a rate increase of 19.1 % . over 1997, and an average assessment ($45.20 x 5769.39' -7- 65 = 54,011.95) that is 3.93% ($4,011.83/$102,195) of average market value. Alternative No.2 - Cap Assessment at a J.5% ofFMV Maximum) This alternative would result in a significant number of assessment reductions due to constant costs ($49.54) and the relative lower mean valuations of properties on two (Edgewater and Stowe) of the three streets. Specifically, the impact of this approach would be to reduce total reconstruction assessments from an "Assessment Hearing Notice" level of$281,835 to $225,222 - a reduction of556,613 or 20.1 %. The average derived rate would be $39.04 ($225,222/5,769.39), although the rate would vary by property because of the valuation and assessable footage mix. I believe the "fairness" issue would be a discussion point with variable assessment rates. Alternative No.:I - Greater Use of SWM Funds Utilize the City's Surface Water Management (SWM) Utility more fully than has been done in previous years. Specifically, remove all surface water related hard costs from the assessable pool. Property owners would then be left with only paying for street pavement and base related project costs. .