Agenda - Public Works Committee - 11/20/2007

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FINANCING The total project cost is estimated to be $250,744. It is proposed to finance$12,875 from the storm water utility to cover the construction and overhead costs associated with storm sewer improvements. One half of the remaining total project cost, $118,935, will be financed though special assessments to the benefited properties adjacent to the improved streets consistent with Minnesota State Statutes 429 and City of Ramsey Code Chapter 4. The remaining $11.8,935 will be financed with City of Ramsey general tax funds. The assessed portion of the project cost shall be equally assessed among the benefited 19 properties listed in Appendix C. This would result in an assessment of $6,260 per property. If a property owner would elect to have this assessment collected over a ten year period at an estimated interest rate of 6.5%, annual payments would range from $1033 to $667 over this ten yearperiod. It should be noted that five of the 19 properties are owned by two property owners and their assessments would be multiples of the above values. - -- The project will have a final tabulation made on actual project costs consistent with the methodology described in this report. A public hearing will be held identifying the actual costs to be recovered by special assessment. Each property may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of the assessment resolution. Special assessments reported to Anoka County shall be payable over a ten year period with interest at a rate of two percent (2%) above the U.S. Treasury rate at the time of the special assessment hearing. PROJECT SCHEDULE This project is anticipated to proceed under the regulations of Chapter 4 of City Code and State Statutes 429 which regulate special assessment public improvement projects. A schedule for the progress of this project is anticipated as follows: . February 28, 2006 . March 28, 2006 . June 9,2006 . June 13,2006 . July 11,2006 . August 2{)06 . September 26, 2006 . May 2007 . 28 City Council orders public hearing and revision of project feasibility study Hold public hearing Extended deadline for petitioning against project Authorize project by City Council Receive bids and award construction contract Construct project Hold assessment hearing and levy assessments First assessment payment due ,- j"