Agenda - Council - 08/12/2003 - Laserfiche WebLink

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I I I I I I I I I I I ! I I I I i I I 7.0 required for public comment on this feasibility report will give t.he City Council an opportunity to repeal this ordilnance. The staff has proposed to the residents of the subdivision that the assessments be made per the eight groups of two or three lots each owned by each resident. COST ALLOCATION streets Since the project area had bituminous streets, the City Policy states that only one half of the street construction costs are to be assessed to the benefited area. The cost for concrete curb and gutter are included since the street has bituminous curbs now. Following is a breakdown of the costs for the proposed project: Construction Cost of Streets I $ 83,881 Plus 33% Overhead $ 27,681 Total Cost of Street Construction $111,562 Less City's 50% Share of Street Construction $ 55,781 Net Project Cost to be Assessed $ 55,781 Number of Properties Assessed 8 Total Cost Per Property For Street $ 6,973 Annual Assessment per Property For Street Construction $ 993 The project cost allocations are based on the division of the cost equally betWeen the eight property owner groups. The annual cost to each property owner is based on amortizing over 10 years at 2.0 percent over the prime rate at the time of the assessment hearing. A 7.0 percent interest rate is used in these calculations. See Table 6 for a list of proposed assessments. Storm Drainaqe The City will pay for the storm drainage construction and easement cost from the City's Storm Water Utility Fund. However, the City will use the 25% shared cost allocated to the Helium Street properties north of Pondvale Estates in the negotiation for right-of-way across those benefited properties. The 25% shared cost was based on drainage areas. This shared cost is calculated below. Page 6 G:\MunicipaI~RAMSEY\632\RA632FSR1 .doc -243-