Agenda - Council - 06/10/2003 - Laserfiche WebLink

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6.0 7.0 METHOD OF PAYMENT The preferred method for financing the proposed improvements is to assess the benefited properties on a front footage basis or on another equitable measurable basis for the immediate area in accordance with Minnesota Statutes 429. Due to comments received at the informational meeting regarding the large difference in lot sizes, the staff is recommending the front foot method of financing for this project. Under this method, the cost of the project would be assessed annually on the property within the subdivision for a period of ten (10) years. Section 7.0 of this report discusses the cost allocation. Only the street improvements, excluding the storm drainage, will be paid for by assessments. It is proposed that-the assessments be made per t-he fi-ent footage of the twenty five (25) benefited lots. That total front footage is 4,308.5 feet. For corner lots that have frontage on two streets, the assessment frontage is one half of the total frontage. See Table 6 for individual front footages for assessment for each existing lot. The storm drainage cost will be paid by the City's Storm Water Utility Fund. The cost of the water and sanitary sewer Will be paid with hookup fees at the time of hookup. Only twenty one-(21) of the lots do not have existing water and sanitary sewer hookups .available to them. The time of hookup is voluntary for lots that are already developed with a house upon it with.an operational septic system. However, the'City has an ordinance that requires immediate hookup for newly created or subdivided lots. Upon sale of existing lots with an existing residence there is an additional ordinance that requires connection to city services if they are available. The sixty day waiting period required for public comment on this feasibility report will give the City Council an opportunity.to repeal this ordinance. COST ALLOCATION Paved Streets- Option 1 Since the project area has existing unpaved streets, the current staff direction states that the City will pick up 50% of the street construction costs. This is reported below as Option 1-A with the residence paying for 100% Of the concrete curb and gutter. However, the City may consider the option of paying up to 50% of the concrete curb and gutter cost. This is reported as Option 1-B. Page 8 G :\Mu nicip aI~ARAMSEY\633\RA633FS R.doc -3915-t