Agenda - Council Work Session - 11/18/2014

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project. These costs include,. but are not limited to, financial consultant's fees, bond rating agency fee, bond attorney's fees, and capitalized interest. The interest charged to the project shall be included as financing charges. 2. City Cost. The "city cost" of an improvement is the amount of the total improvement expense the City will pay as determined by Council resolution. Where the project cost of an improvement is not entirely attributed to the need for service to the area served by said improvement, or where unusual conditions beyond the control of the owners of the property in the area served by the improvement would result would result in an inequitable distribution of special assessments, or for any other reason determined by the City, the City, through the use of other funds, may pay such "city cost." 3. Assessable Cost. The "assessable cost" of an improvement is equal to the "project cost" minus the "city cost." 4. Interest. The City will charge interest on special assessments at a rate specified in the resolution approving the assessment roll. If bonds were sold to finance the improvement project, the interest rate shall be two percent (2%) more than the averageeaual to the interest rate of the bonds, rounded to the nearest quarter of a percent. If no bonds were sold, the interest rate shall be set at the sameU.S. Treasury rate plus 2 nercentane points. 5. Prepayment. Property owners may pay their assessments in full interest free for a period of 30 days after the assessment hearing. After such period interest shall be computed from the date specified in the assessment resolution. The City will transmit a certified duplicate of the assessment roll with each installment, including interest, to the County Auditor, or in lieu of such certification, annually certify to the County Auditor by November 30 in each year, the total amount of installments of and interest on assessments on each parcel which are to become due in the following year. Prior to certification of principal and interest or the first installment thereof, to the County Auditor, a property o unxz axle a p eirti i prti yn cnt of the principal to the City._ Such partial prepayment must be at least $100.00. If the partial prepayment is made after the 30 day "interest free" period allowed by ot-ate km, Merest will be paid along with the partial prepayment. After the City hro i ade the first certification of principal and interest to the County Auditor, prepayment will be accepted only for the total amount still owing including ink ' of ;md must be made prior to November 15 of any year. If a ai ha two rate s o a ^ „t^ nt f the ,.a~rxiith g principal balance be made on one or more assessment tot*. Tx' erranpt poirc o ou h ro churchea and school propertioo may make only one partial prepayment to the first certification to the Gounty Auditor. The romairing principal after the partial prepayment will be paid in equal iratallrr ents over the ra itr g term of t e ^' ^ nt 6. Extensions. Where an improvement is designed for service of an area beyond that receiving the initial benefit, the City may pay for increased project costs due to such provisions for future service extensions. The City will levy assessments to cover this cost when a new improvement is installed as an extension of the existing improvement upon identification of such additional amount in the notice of hearing for the extensions or new improvements. As an alternative, the City may assess these costs to the area of future benefit immediately. 7. Frontage Roads. Because frontage roads along highways or other arterial streets are deemed to be of benefit to commercial or industrial properties, the entire costs of any improvement on such frontage roads shall be assessable to the benefited properties, even if only those properties on one side of such frontage roads are benefited. 8. Project Assistance. If the City receives financial assistance from the Federal Government, the State of Minnesota, the County, or from any other source to defray a portion of the costs of a 5