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138 improvements can be financed without public assistance. The association has 139 completed a capital improvement reserve plan and Staff has reviewed the plan. The 14O reserve funding plan for future capital improvement/replacement projects uses Cash 141 Flow projections with the goal of maintaining a positive balance in the reserve fund 142 account for the next 30 years. The initial monthly reserve contribution requirement 143 is $,13(x.19 per unit per month. This is the minimum amount needed to meet the 144 projected expenditures and fulfill the mandate of the state statute 515B.3-114 and the 145 association's governing documents. This amount is $84.1 per unit per month above 146 the association's 2008/09 budgeted rate. This report and additional increased 147 amount to the Townhome owner's was presented on August 12, 2008. The new 148 increase will take effect in April 2009, the beginning of the Associations fiscal year. 149 In addition the association will also be required to provide the City with annual 150 financial reports until the public financing has been repaid. (Attachment E). 151 3.6 At its last board meeting on August 12, 2008, the Westwood Village I home owner's 152 where presented with what the monthly costs could be with the City Assisting with 153 Financing of the improvements through the use of a Housing Improvement Area. 154 Based upon a loan amount of $,1.5 million the payments would range between $,250- 155 $,3 11 a month based upon interest rate and term of loan that the City of Roseville is 156 willing to grant to the association. The City of Roseville when assessing 157 improvements has in the past only granted a 15 year term and has charged 158 administration fee of 1.5% onto the interest charged to the City. Staff is 159 recommending that the City Council stays with the past practices. However 160 Westwood Village I association has requested that the City consider a 20 year term 161 and reducing its administration fee to less than 1.5%. Currently if the City was to 162 bond for these improvements and did a direct placement with Bremer bank the 163 current interest rate is 6.09% to the City for 7 years with a 15 year term and 164 amortization. See below for alternative finance options. Financing Bank HIA HIA HIA HIA Term 7 15 15 20 20 Interest 6.09 7% 8% 7% 8% Monthly Payment $379.94 $,292.01 $,310.72 $,251.05 $,270.88 Annual Payment $4559.2? $3,504.08 $3,728.60 $3,012.54 $3,250.60 165 166 3.7 At the August 12, 2008 board meeting information regarding costs of construction 167 and projected association due increases were discussed as well as assessment fees 168 that the association could have set against the property. At that time Westwood 169 Village I did take a vote regarding moving forward with the improvements. Out 170 of 47 home owner's 41 were in attendance (6 were via proxy), and the vote was 35 171 in favor,, 4 against, and 2 abstained. 172 3.8 If a housing improvement area is established, a second public hearing will be held 173 in the future to discuss the cost of the project and the amounts to be assessed 174 against each unit. A resolution assessing those costs would have to be adopted Council Meeting (09-'22-'08) - Page 4 of 5