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r <br />Revised Project Assessment Shoreline/Heritage Sanitary Sewer <br />October 9, 1998 <br />Page 2 <br />Revised Assessment Interest Rate <br />An interest rate of 8% per year was included in the original assessment roll. We are recommending <br />a revised interest rate of 6.25%. This is the same interest rate that was presented at the Orono <br />Orchards project public hearing. The proposed plan is to sell bonds in 1999 to cover the costs for <br />the 1999 construction, Orono Orchards project and this project. The assessment interest rate for the <br />1997 projects, based on a 4.97% bond interest rate was 6.25% based on current trends, we are <br />anticipating a stable bond market and similar interest rates for next year. <br />Requests for Project Exclusion <br />Three property owners have requested exclusion from the project. The assessment hearing notice <br />indicated that property owners needed to request exclusion from the project at that time. Two written <br />requests were received before the assessment hearing and were listed in the assessment hearing staff <br />memo. One additional resident requested exclusion at the assessment hearing. Subsequent <br />investigation of the septic system proved the existence of a conforming septic for this property. No <br />additional requests for exclusion have been received. <br />The three property owners requesting exclusion are listed below: <br />Daniel and Barbara Hoffman <br />Jorgen and Lucille Viltoft <br />C E and K Rusch <br />1135 Heritage Lane <br />1155 Heritage Lane <br />1920 Shoreline Drive <br />A connection fee will be charged for these properties when a sewer connection is requested. <br />The estimated annual City costs for debt service for a $15,500 assessment at a 5% bond interest rate <br />for five properties will be $7,300. This includes the two vacant lots and the three properties <br />excluded from the project. <br />Notices to the property owners describing the prepayment options available will be sent to the <br />properties after adoption of the revised assessment roll. The assessment roll needs to be submitted <br />to the County by December 1 st. <br />COUNCIL ACTION REQUESTED: <br />Approval of the attached resolution adopting the revised assessment roll for the Shoreline/Heritage <br />Sanitary Sewer Project.