RE: request for and council action/remove from sewer project

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/ . Revised Project Assessment Shoreline/Heritage Sanitary Sewer October 9, 1998 Page 2 Revised Assessment Interest Rate An interest rate of 8%per year was included in the original assessment roll. We are recommending 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 constniction, Orono 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 similar interest rates for next year. Requests for Project Exclusion Three property owners have requested exclusion from the project. The assessment hearing notice indicated that property owners needed to request exclusion from the project at that time. Two written requests were received before the assessment hearing and were listed in the assessment hearing staff memo. One additional resident requested exclusion at the assessment hearing. Subsequent investigation of the septic system proved the existence of a conforming septic far this property. No additional requests for exclusion have been received. The three property owners requesting exclusion are listed below: Daniel and Barbara Hoffman 1135 Heritage Lane Jorgen and Lucille Viltoft 1155 Heritage Lane C E and K Rusch 1920 Shoreline Drive A connection fee will be charged for these properties when a sewer connection is requested. The estimated annual City costs 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. Notices 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 assessment roll for the Shoreline/Heritage Sanitary Sewer Project.