Laserfiche WebLink
5. FINANCING <br />5.1 Opinion of Cost <br />The engineer's opinion of probable costs for this project is $585,460.78. A detailed breakdown <br />of project are costs is included in Appendix C. <br />Estimated costs include 5% contingency costs, plus 14% indirect costs for administrative, <br />engineering, finance, and legal costs. <br />5.2 Funding <br />5.2.1 Assessments <br />Assessments are proposed to be levied against 124 properties having direct access to each <br />of the improved street segments. In accordance with the City's Special Assessments <br />Policy, each property is proposed to be assessed based on the "per lot" method for each <br />of the separate project subdivisions. Since projects are generally classified by <br />subdivisions which have similar characteristics and lot sizes, project costs are proposed to <br />be assessed equally within each individual subdivision. <br />Preliminary assessments vary considerably per project area. The total project assessment <br />cost is $146,365.19. This represents 25-percent of the total eligible project costs in <br />accordance with the City's adopted Special Assessments Policy, chapter 8 of the City <br />Charter, and State Statute Chapter 429. <br />Final assessments will be approved by the City Council after final project costs are <br />known and an assessment hearing is held on October 9, 2018. At that time, the City <br />Council may choose to reduce the amount of the assessment if final project costs are less <br />than costs estimated with this feasibility report. <br />Preliminary assessment maps and rolls, as well as an opinion of probable costs, are <br />included in Appendix C. <br />5.2.2 City Contribution <br />The City contribution to the project includes all funding in excess of the amount collected <br />through special assessments to benefiting properties, which totals $438,242.72. The <br />City's contribution will be funded using the 5-year General Obligation Street <br />Reconstruction and Overlay Bond funds, though utility enterprise funds can be used for <br />needed utility infrastructure improvements. <br />No funds were budgeted for this project in 2018, but this improvement project is included <br />in the City's current 10-year Improvement Plan. <br />Feasibility Report <br />2018 Street Overlay Improvements <br />City of Ramsey Project No. 18-03 <br />Page 9 <br />