Agenda - Council Work Session - 10/14/2014

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Council. Developers can also "pay as you go" to eliminate some/all construction interest by paying all expenditures on a monthly basis. Refer to Interest Rate section on Page 8 on how the actual rate is determined. 3. Assessment Interest: Cost of financing during the time frame of when the adoption of the assessment roll takes place until the final payment of the assessment. Refer to Interest Rate section on Page 8 on how the actual rate is determined. 4. Expenses to be Assessed: Costs incurred by the City in addition to the contract costs, including but not limited to: Engineering, Public Works, advertising, financing charges, administration, assessing, etc. Refer to the Example Andover Assessment Worksheet in the Appendix for additional expenses. 5. Project Cost (total cost of improvements): Total of contract costs, interest and expenses, and work previously completed but not assessed. V. PROCEDURES RELATING TO SPECIAL ASSESSMENTS Sanitary Sewer Trunk (SST) SST costs are paid from the SST Fund. Sanitary Sewer Trunk is defined as 10" or larger pipe and/or at a depth in excess of what is needed for the proposed development. The SST Fund receives funds from sanitary sewer area and sanitary sewer connection charges. SST costs are apportioned to the gross land area, excluding those areas as described under "Properties Not Assessed", that +s benefit by trunk facilities that have previously been constructed or that are constructed as part of a new plat. The sanitary sewer area charge is set by City Council resolution and adopted by the Fee Schedule. The sanitary sewer area charge is multiplied by the gross land area (minus "Properties No Assessed") of a parcel in the case of an individual lot assessment. In the case of a new plat the gross land area of the plat (minus "Properties Not Assessed") is multiplied by the current sanitary sewer area charge and divided by the number of lots in the plat to determine a per lot sanitary sewer area charge. The amount is then assessed to each lot equally. Sanitary sewer connection charges are charged by the Unit for Residential properties and by Sewer Access Charge (SAC) for Commercial/Industrial properties. SAC's are determined by the Metropolitan Council for commercial/industrial properties. The rate per unit or SAC is set by City Council resolution and adopted by the Fee Schedule. Sanitary Sewer Lateral Sanitary sewer lateral costs are apportioned to the property benefiting from the lateral sanitary sewer constructed. Apportioning the costs of the lateral may be done by dividing the actual project costs of the lateral improvements by the assessable front footage of the benefiting properties or by dividing the cost of the lateral constructed -9-