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4 There is a Bill in the legislature - came out of the Senate Committee Friday and is now on the floor - which increases the interest rate from 7% to lO% for good "A" bonds which are what we have under consideration - until July l, 1981 at which time they will drop back to 7%. In that same Bill it permits the municipality to charge more for special assessments - for those who don't pay up - to some percentage rate above whatever they are paying for the bonds - approximately 2% more, so if we could sell the bonds and we are now at 8% or eight-and-a-half percent instead of 6%, the assessment charge would have to be that much higher. So as we discuss the details on this, the public should know that you're not now in a position to make a commitment as to what the assessment cost will be because obviously if we have to pay more than 8% money we can't have the assessments at 8%. There normally has to be a l% or 2% override. There's another Bill that arises out of the stadium con- troversy where some of the Senators are looking at bond counsel - people like myself - and decided that perhaps the Attorney General ought to do all the work, and all the local municipalities before they go into the bond market would have to deal with the Attorney General's office and get his legal opinion and they'll do all the work, but late Saturday that passed out of committee and went down to Finance to determine how much the Attorney General would need, so there are a number of things pending in the legislature which will affect some of the decisions we make here tonight. With that as a background and a caveat, let me go into the detail of this improvement - 79-l9. The published cost is $4l,003, and it came in by petition. There are l,l68 assessable feet. If we were to charge lOO% assessment it would be $35.10 a foot. The Council's policy on reconstruction of streets is 25% of the cost, so in this case the front footage cost would be $8.78 so the assessments that would be raised pursuant to the policy you have would be $lO,256 which would be spread over the affected property owners per front foot, and the balance of $30,746 would be spread by general taxes, and you add the two together and that would take care of the $4l,OOO total cost. This improvement, together with the other two - if they're ordered - obviously the construction could go ahead assuming there's financing, and the actual assessment hearing would be held at a later time. Under normal circumstances we would assess over 20 years at 8% carrying charge if not prepaid, or if it's paid once it's certified to the County Auditor's office - to the County Treasurer by paying interest to the end of the year in which they prepay it. Now we can't say whether they will be 20 year assessments or l5. We had an issue in November in Cloquet before the market went off as much as it did and we reduced the assessment period to 15 years and came in at 6.92%, so exactly what period of time the assessment will run will depend on the Bill that comes out