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Sources <br />- Adopt preliminary allocations <br />- Amend and adopt <br />- Table <br />Means of Financing <br />- Set preliminary assessment date and commence bonding <br />procedure <br />- Finance through MSA or internal sources <br />RECOMMENDATIONS <br />Issue 1. It is recommended that the City as part of the means to <br />upgrade the appearance in the Navarre area install the decorative <br />lighting system at a space of 140 ft per light for a total cost <br />of approximately $100,000 and that this be financed as part of <br />the overall project. <br />Issue 2. Should the City decide to bond for the proceeds that it <br />establish April 11, 1988 as a preliminary assessment date for the <br />project. <br />Issue 3. Current Estimates - It is recommended that the Council <br />accept the information and that adjustments be made for in the <br />method of financing estimates for these changes. <br />Issue 4. Method g _ of financing <br />A.) Sources_ of R_even_ue_ - The total project including County <br />street construction is over $1.5 million just in Orono (The <br />entire a:aount both City and County costs for all three <br />communities is about $4.5 million.) As part of this it is <br />recommended that the City assess about $130,800 of the project tc <br />the abutting residents at a rate of $7.00 per front foot for <br />residentially used property and $20.00 on non -residentially used <br />property. <br />B.) Means of Finance - It is recommended that the City finance <br />approximately $485,000 through bond proceeds and that the balance <br />of the lighting 584,000 be funded internally. The abutting <br />residents share is less than 10% of the total construction cost <br />and about 20% o' the City's share of the costs. Should the <br />right-of-way costs be reduced below $135,000 and construction <br />costs not increased, the City could reflect a prorata reduction <br />of the assessment so long as it doesn't in total go below 20% of <br />the amount bonded. <br />Issues involved in the assessment are- <br />a.) Total assessed <br />b.) Proration of assessment <br />c.) Length of assessment <br />d.) Interest ra— (this generally is 1-1.2501, over the <br />rate of the bonds.) <br />