Agenda - Council - 10/22/2019 - Laserfiche WebLink

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Mayor LeTourneau asked if there have been other financing options in the past. City Administrator Ulrich confirmed that these have been the only payment options. He noted that some cities have chosen to extend the financing term but noted that would also increase the amount of interest over that period. Ms. Kruger noted that the residents planned for $3,900 and would like additional time to come up with the remaining assessment payment in order to avoid interest. Mayor LeTourneau asked staff for additional information on how the preliminary assessment amount is communicated with residents. City Engineer Westby explained that when the preliminary assessment amount is adopted a statement is made that the amount is preliminary, and the amount can change due to actual construction costs. He confirmed that those elements are typically out of the control of the City. Councilmember Heinrich asked if the City has ever reduced the interest rate for residents or extended an interest free timeframe to pay an assessment. City Engineer Westby explained that the City has not varied from the interest rate offered. He stated that the Finance Director prefers to keep the rate for construction project assessments at ten years and noted that has remained consistent for the past five years of the program. Councilmember Heinrich asked if an extended repayment period would be desirable. City Engineer Westby explained that if the term is extended, the residents would pay more because interest would be charged throughout that extended term. Councilmember Riley stated that the Council spent a long time discussing this case prior to tonight. He noted that a larger assessment of $6,600 was originally discussed and that amount was decreased to the assessment proposed tonight. He noted that residents could pay the $3,900 prior to the November deadline to minimize the amount that would carry forward and that would be charged interest. City Engineer Westby commented that it is his understanding that residents can either pay the full amount or let the total assessment go onto the taxes. He noted that residents could still continue to save in order to pay off the amount early. City Administrator Ulrich stated that staff could look into the option to possibly payoff a portion of the assessment upfront and let the remainder go onto the taxes. Councilmember Kuzma stated that past assessments have followed the 25 percent assessment rule and there was robust discussion on this case. He stated that he was overruled, and the decision was made to lower the assessment to the proposed amount. City Council / October 8, 2019 Page 5 of 15