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<br />ARDEN HILLS CITY COUNCIL - June 8, 2009 <br /> <br />8 <br /> <br />Mayor Harpstead stated that another difference would be that some cities choose <br />to tax residents ahead of time and build up large fund balances which would result <br />in a project being accomplished without high assessments. <br /> <br />Councilmember McClung stated that as a Council they needed to determine if the <br />City have a 50/50 assessment policy or if taxes get raised for all the residents. <br /> <br />Councilmember Grant stated that he would favor Option 3 of forgiving the <br />interest to December 31 of the year before the first deferred installment is payable. <br />He stated that this year was a competitive bidding environment and the project was <br />originally estimated over $9000.00 per REU but is significantly lower because of <br />this. <br /> <br />Civil Engineer Giga stated that the original estimated assessment was $9800.00 <br />two years ago. <br /> <br />Councilmember Grant stated that the $6600.00 that was being assessed this year <br />is lower than the original estimates but if the project were to be postponed again the <br />amount may go back up due to outside factors such as cities a higher demand for <br />contractors with the number of upcoming projects in the area utilizing stimulus <br />money. <br /> <br />Councilmember McClung stated that he would support Option 3, forgiving the <br />interest to December 31 of the year before the first deferred installment is payable. <br /> <br />Councilmember Holden stated that she would like to address the concern that the <br />value of the assessment is not equal to what the added value would be to the house. <br /> <br />City Attorney Filla stated the 2009 pavement project is similar to projects in the <br />past and what the City has done in the past is have appraisers state that these kinds <br />of assessments can be supported on single family residents. There have been some <br />assessment appeals and the court has determined that the assessment was equal to <br />the value added. <br /> <br />Mayor Harpstead clarified that the City does not go out ahead and appraise each <br />property . <br /> <br />Councilmember Grant stated that even with property values going down the <br />addition of the new street would still increase the value of the home. The value that <br />the new streets add to the resale value of the home is what needs to be looked at. <br />