05-06-1997 Council Packet - Laserfiche WebLink

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Request for Council Action continued page 2 of 3 March 19,1997 Item 7. Closing of hearing 8. Council consideration of adoption of assessment resolution 9. Adjournment Assessment Roll The proposed assessment roll reflects all properties in the project area paying the same assessment amount. The assessment amount is $ 13,950. In addition, the Maresh property located west of North Brown Road is to be assessed $19,083 due to the greater identified benefit to the property. The paving of Dakota Avenue has been included in the total cost assessed to all properties. Determination of Benefit The assessment roll was based on the estimated amount of benefit generally received by the properties in the project. The determination of benefit was based on a number of factors including the following: 1. The cost of sewer versus the cost of a new septic system. 2.The cost of sewer versus a holding tank. Over a 15 year period (the period over which the assessment is to be paid), ‘.he cost of a holding tank would be at least 2 times the cost of the sewer assessment. 3.The project involves the reconstruction of the local streets along with the sewer installation. This is a substantial benefit beyond the benefit specific to the sewer. In addition there are other factors more difficult to quantify but which do reflect significant benefit. These include the ability to expand a house with sewer available versus septic, and the improved marketability of a house with sewer versus a septic system. Project Financing and Payment of Assessments The total project cost, based on the recently completed bid process, is expected to be $956,300. The project will be financed through the issuance of special assessment bonds. These bonds will be repaid over a 15 year period. The majority of the revenues used to repay the bonds will come from the special assessments. The remainder will be tax levy revenue. The assessments will be payable over a 15 year period. The interest rate will be 7 to 8%. The first payments will occur with taxes payable in 1998 (May and October). The initial payments will be larger than normal because they will include interest for 3 montlis in 1997 in addition to the interest