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ARDEN HILLS CITY COUNCIL—May 11, 2009 8 A. Motion to Adopt Resolution 2009-009: Receiving Proposed Special Assessment Roll and Providing for Hearings for the 2009 Pavement Management Program Civil Engineer Kristine Giga stated that in order for the City to adopt the preliminary assessment roll and order the assessment hearing the City would need to determine the number of REUs being assessed, the interest rate at which the assessment will be set, and the length of the payment period. Per State statute the City can not increase the proposed amount to be assessed once the preliminary assessment role is adopted however at the time the assessment role is adopted the interest rate and length of payment could be adjusted. At the April 27, 2009 City Council meeting, the City Council adopted a resolution declaring costs to be assessed and ordering the preparation of assessment rolls. The next step is for the City Council to adopt a resolution receiving the proposed assessment roll and setting the hearing date for the assessment. She stated that Staff had consulted with the City Attorney regarding how payment could be delayed or deferred for the four properties that are two REUs. The City Attorney had provided three options for the City, which included: assessing the amount up front with the standard assessment roll, or defer the assessment roll which would have to be paid within thirty years, or postpone the assessment until the property is subdivided. She reviewed the interest rate options and length of payment options that the City could consider. Mayor Harpstead clarified that Staff was asking for approval of the assessment roll and discussion regarding the number of REUs, interest rate, and length of payment. Civil Engineer Giga stated that in order to mail the nonce Staff would need to know the number of units to include and a guideline of what Council may want for interest rate and length of payment. If Council does not reach a decision the Staff will use what is listed in the assessment policy, which is an interest rate of prime plus 2% at 10 years. Mayor Harpstead stated that the resolution does not have a number of units listed. He asked if this was something that would need to be added. Civil Engineer Giga stated that the proposed assessment roll included as an attachmentto the resolution. Councilmember Holden stated that when considering the parcels that are currently considered 2 REUs, even though the property is currently not subdivided, Option B or deferring the assessment for one REU until the property is subdivided or the end of 30 years would be acceptable.