CC_Minutes_2016_0912 - Laserfiche WebLink

Home

Regular City Council Meeting Monday, September 12, 2016 Page 12 last year as detailed in the RCA dated September 12, 2016, and related attach- ments. Mr. Freihammer explained the special assessment rates are based on the actual costs of the project and front footage based on the feasibility report. The assess- ment rate for LDR1 and LDR2 properties is 25% of the street reconstruction costs for a 7-ton road design; however, the street was actually constructed to a 10-ton design. The assessment rate for non-residential uses is 100% of the street recon- struction costs. There is no assessment cost for the sidewalk, pathways, storm sewer, or watermain. Mr. Freihammer displayed a parcel map identifying the properties to be assessed adjacent to Victoria Street. He explained the three scenarios to determine how front footages are calculated and presented the assessment schedule to pay the as- sessments over a 15-year period with a 5.5% annual interest rate collected by Ramsey County through taxes. The assessment hearing will be held tonight and the assessment can be prepaid during the next 30 days. Following that period, the City will tally the final assessment roll and certify it to Ramsey County on Octo- ber 21 so it can be put on the property taxes. Mayor Roe noted if the assessment is 100% prepaid in the next 30 days, it does not get assessed over 15 years and no interest is paid. Mr. Freihammer confirmed that is correct. Mr. Freihammer explained the opportunity for assessment deferral if the property is homesteaded, the owner is age 65 or older or retired by virtue of a disability, or payment would be a hardship. If the assessment is deferred, it will accrue inter- est. He stated an application for deferral is available at City Hall but to date, staff has not received any requests for assessment deferrals. Mr. Freihammer present- ed a summary of the project costs as follows: Funding Source Total Cost State Aid $1,454,400.13 Assessments $ 176,533.43 Water Fund $ 77,469.97 Storm Water Fund $ 603,630.86 Parks Renewal $ 120,000.00 Ramsey County $ 78,682.72 Total Project $2,510,717.11 Mr. Freihammer explained that costs did go up on this project due to subgrade is- sues that changed the overall scope of the pavement procedure. The road is still built to handle the load and carry on for many years to come. In addition, there were storm sewer modifications due to poor soils.