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138 <br />Attachment B <br />improvements can be financed without public assistance. The association has <br />139 completed a capital improvement reserve plan and Staff has reviewed the plan. The <br />140 reserve funding plan for future capital improvement/replacement projects uses Cash <br />141 Flow projections with the goal of maintaining a positive balance in the reserve fund <br />142 account for the next 30 years. The initial monthly reserve contribution requirement <br />143 is $130.19 per unit per month. This is the minimum amount needed to meet the <br />144 projected expenditures and fulfill the mandate of the state statute S15B.3-114 and the <br />145 association's governing documents. This amount is $84.19 per unit per month above <br />146 the association's 2008/09 budgeted rate. This report and additional increased <br />147 amount to the Townhome owner's was presented on August 12, 2008. The new <br />148 increase will take effect in April 2009, the beginning of the Associations fiscal year. <br />149 In addition the association will also be required to provide the City with annual <br />150 financial reports until the public financing has been repaid. (Attachment E). <br />151 <br />152 <br />153 <br />154 <br />155 <br />156 <br />3.6 At its last board meeting on August 12, 2008, the Westwood Village I home owner's <br />where presented with what the monthly costs could be with the City Assisting with <br />Financing of the improvements through the use of a Housing Improvement Area. <br />Based upon a loan amount of $1.5 million the payments would range between $250- <br />$311 a month based upon interest rate and term of loan that the City of Roseville is <br />willing to grant to the association. The City of Roseville when assessing <br />157 improvements has in the past only granted a 15 year term and has charged <br />158 administration fee of 1.5% onto the interest charged to the City. Staff is <br />159 recommending that the City Council stays with the past practices. However <br />160 Westwood Village I association has requested that the City consider a 20 year term <br />161 and reducing its administration fee to less than 1.5%. Currently if the City was to <br />162 bond for these improvements and did a direct placement with Bremer bank the <br />163 current interest rate is 6.09% to the City for 7 years with a 15 year term and <br />164 amortization. See below for alternative finance options. <br />165 <br />166 <br />167 <br />168 <br />169 <br />170 <br />171 <br />Financin Bank HIA HIA HIA HIA <br />Term 7 15 15 20 20 <br />Interest 6.09 7% 8% 7% 8% <br />Monthl Pa ment $379.94 $292.01 $310.72 $251.05 $270.88 <br />Annual Pa ment $4,559.27 $3,504.08 $3,728.60 $3,012.54 $3,250.60 <br />3.7 At the August 12, 2008 board meeting information regarding costs of construction <br />and projected association due increases were discussed as well as assessment fees <br />that the association could have set against the property. At that time Westwood <br />Village I did take a vote regarding moving forward with the improvements. Out <br />of 47 home owner's 41 were in attendance (6 were via proxy) and the vote was 35 <br />in favor, 4 against, and 2 abstained. <br />172 3.8 If a housing improvement area is established, a second public hearing will be held <br />173 in the future to discuss the cost of the project and the amounts to be assessed <br />174 against each unit. A resolution assessing those costs would have to be adopted <br />Council Meeting (09-22-08) - Page 4 of 5 <br />