07-13-1998 Council Packet - Laserfiche WebLink

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Assessments for Commercial Accounts There was concern at the public hearing about the proposal for one assessment per commercial building. This proposal was suggested because about two-thirds of the project costs will be paid for through water rates, and the higher volume commercial users will pay more for the project thiough water rates. The tliought was to keep the assessments low to reduce possible assessment appeals from the users with large numbers of sewer units. Below is a tabulation of the commercial accounts with their number of sewer units. Tabulation of Sewer Units for 24 Commercial Accounts Number of sewer units 2 3 4 5 11 26 41 Number of occurrences 10 2 6 3 1 1 1 In response to the comments received at the public hearing, we have developed an alternate proposal for assessing commercial users. Our recommendation is to assess commercial users $350 per sewer unit with a maximum assessment of five units, this results in a maximum assessment of $1,750 per commercial property. There are only three users with more than five units Attempting to assess these three large users for all of their sewer units would result m large assessments and possible assessment appeals. The largest user would receive an assessment of $14,350 which may not be sustainable in an appeal process. Two-thirds of the project cost is being funded through water rates, so the larger commercial users will be paying more for the project through water rates. This proposal addresses the concerns about higher assessments for commercial users and reduces the possibility of assessment appeals. Proposed Project Financing As.sessments $295,llill $3.*0 per unit over 5 years (Co.nmercial assessments at 5 unit maximum) Water Fund Reserves $200,000 Internal Loan $269,mi Building Fund Loan, repayment with interest over 10 years Total Project Cost $764,000