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ARDEN HILLS CITY COUNCIL-April 27, 2009 14 It was the consensus of the Council to do equal annual installments. Mayor Harpstead stated that he liked the methodology that the Council had used previously with the interest rate. Finance Director Iverson stated that what the Council had done previously was to look at the City's investment portfolio and what the City was getting as a return and add 1%-1.5% to that amount. She stated that prime at this time is 3.2% and the assessment policy says to add 2% to this. At the end of March, the City's annualized rate of return without the money market was 3.945%. She asked if Council wanted Staff to use the 4% and add 1% or use the 3.2% and add 2%. Mayor Harpstead suggested that Staff use the City's current rate of return and add 1.5% or the prime rate plus 2%, whichever is lower. Finance Director Iverson stated that what is put in the hearing notices is not set until the Council adopts the assessment roll. Councilmember Holmes clarified that the interest rate would remain the same for the length of the assessment. Finance Director Iverson stated that once the Council sets the rate in the assessment roll and adopts it then it can not be changed. Councilmember Holden stated that she would support having the rate based on the City's rate of return rather than the prime rate. Finance Director Iverson stated that the amount will fluctuate between now and the time the assessment roll is adopted and could be lower. She stated that when the notices go out to the residents the rate will reflect the City's rate of return plus 1.5% but this amount would not be set until the assessment roll is adopted by the City. Councilmember Holden asked Finance Director Iverson to check what the City had done with the last assessment roll. Finance Director Iverson stated that she would and provide this information back to the Council. Mayor Harpstead stated that the Council should discuss how to deal with Freeway Park. In the past the City has reduced City parcels and taken them off the rolls.