RE: revised assessment roll for sewer project

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Revised Project Assessment Shoreline/Heritage Sanitary Sewer October 9, 1998 Page 2 Revised Assessment jnterest Rate An interest rate of S%per year was included it�the original assessment roll. We are recommet�ding a revised interest rate of 6.25%. This is the same interest rate that was presented at the Orono Orchards project public hearing. The proposed plan is to sell bonds in 1999 to cover the costs for the 1999 construction,Orona Orchards project and this project. The assessment interest rate for the 1997 projects, based on a 4.97% bond interest rate was 6.25% based on current trends, we are anticipating a stable bond market and simiIar interest rates for next yeaz. Requests for Proiect Excl�,j�ion Ttuee property owners have requested exclusion from the project. The assessment hearing notice indicated that pxaperty awners needed to request exclusion from the project at that time.Two written requests were r�ceived befare the assessment hearing and were li�ted in the assessment hearing staff mema. One additional resident requested exclusion at the assesstnent hearing. Subsequent investigation of the septic system proved the existence of a conf'ozming septie for this properly. No additional requests for exclusion have been received. The three p�roperty owners requesting exclusion are listed below: Daniel and Barbara Hoffman 1135 Heritage Lane Jorgen and Lucille Viltof� 1155 Heritage Lane C E and K Rusch � 1920 Shoreline Drive A coz�x�ection fee will be charged for these properties when a sewer connection is requested. The estimated annual City casts for debt service for a$15,500 assessment at a 5%bond interest rate for five properties will be $7,300. This includes the two vacant lots and the three properties excluded from the project. IVotices to the property owners describing the prepayment options available will be sent to the properties after adoption of the revised assessment roll. The assessment roll needs to be submitted to the County by December 1 st. COUNCIL ACTIOn'REQUESTED: Approval of the attached resolution adopting the revised assesstnent roll for the ShorelinelHeritage Sanitary Sewer Project.