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CITY OF LAUDERDALE <br />ASSESSMENT POLICY MANUAL <br />A. TERMS OF ASSESSMENT <br />The City shall collect payment of special assessments in equal annual installments of <br />principal for the period of years indicated from the year of adoption of the assessment <br />roll by the following types of improvements: <br />� Sanitary Sewer System Improvements <br />• Water System Improvements <br />. Street System Improvements (street, alley, curb and gutter) <br />. Appurtenances <br />. Improvement District <br />1 0-25 years <br />1 0-25 years <br />1 0-25 years <br />1 0-25 years <br />5-I 0 years <br />In some cases, improvements that are undertaken could warrant longer or shorter <br />terms. For example, a separate sidewalk improvement may be assessed over a five (5) <br />year period because the costs may be nominal. Also, some major reconstruction <br />projects with several types of improvements could lead to a very high assessment that <br />could create a financial hardship if assessed over a ten (10) year term. A thirty (30) <br />year term could be appropriate in this case. In any event, the assessment term should <br />never exceed the potential life of the improvement. <br />B. INTEREST RATE <br />The City most often finds itself required to issue debt in order to finance improvements. <br />Such debt requires that the City pay an interest cost to the holders of the debt with such <br />interest cost varying on the timing, bond rating, size and type of bond issue. In addition, <br />the City experiences problems with delinquencies in the payment of assessment by <br />property owners or the inability to invest prepayments of assessments at an interest rate <br />sufficient to meet the interest cost of the debt. These situations create immediate cash <br />flow problems in the timing and ability to make scheduled bond payments. <br />Therefore, for all projects financed by debt issuance, the interest rate charged on <br />assessments shall be 2.0% greater than the new interest on the bonds issued, or 2% <br />greater than the current investment rate if the project is funded internally. <br />C. PREPAYMENT AND ASSESSMENT CERTIFICATION <br />1, Partial Prepayment. After the adoption by the City Council of the <br />assessment roll in any local improvement proceeding, the owner of any <br />property specially assessed in the proceeding may, prior, to the <br />certification of the assessment of the first installment to the County <br />Auditor, pay to the City any portion of the assessment. The remaining <br />unpaid balance shall be spread over the period of time established by the <br />Council for installment payment of the assessment. <br />21 <br />