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\k <br />Long Lake Sewer Project <br />April 11, 1997 <br />Page 3 <br />Justifications for Assessment Amount <br />The average homestead value for North Long Lake is $114,000 and for Long Lake Country Club <br />is $133,000. In the 1992 Stubbs Bay projects, the highest ratio of assessment-to-valuation was <br />10.9%, ranging from 2.9% in the Oxford Road neighborhood ($14,990 assessment, $522,000 <br />average valuation) to 10.9% for Stubbs Bay NE ($8,840 assessment, $81,000 average valuation). For <br />North Long Lake, a 25% contribution yields a ratio of $14,312 / $114,000 = 12.6%, and for Long <br />Lake Country Club yields $14,312 / $133,000 = 10.8%. <br />It could be argued that while this suggests North Long Lake should have a higher subsidy, this <br />neighborhood also benefits to a greater extent than Long Lake Country Club by having sewer, given <br />the alternatives. Many homes will be forced to convert to holding tanks if sewer is not provided, at <br />an ongoing cost of at least $2-3,000 per year. The few who have room to replace systems would <br />likely need mounds costing in the range of $10,000 each. An additional overall benefit is the freeing <br />up of yard area for purposes other than sewage treatment. <br />Summary of Staff Recommendations <br />1. Establish City contribution at $262,400. equivalent to 25% of Engineer's estimate. <br />2.Establish assessment policy for this project as follows: <br />Total project cost to be divided equally among all 55 residential units in the <br />project area. <br />- City 25% contribution will be applied to all properties except the Maresh <br />homestead property which will be assessed at 100%. <br />3.Establish that the cost for paving of Dakota Avenue will be included as part of the entire <br />assessment project. After completion of the project the City will take over maintenance of <br />Dakota Avenue. <br />4.Adopt attached Resolution Declaring Cost to Be Assessed and Ordering Preparation of <br />Proposed Assessment. <br />5.Adopt attached resolution establishing assessment hearing for Tuesday, May 6, 7:00 p.m. in <br />the Council Chambers. <br />COUNCIL ACTION REQUESTED: <br />Adopt attached resolution declaring cost to be assessed and ordering preparation of assessment, <br />adopt resolution setting hearing date, and take action to approve assessment policy per staff <br />recommendation.