Regular 4.B.
Regular City Council Meeting
- Meeting Date:
- 09/24/2012
- TITLE
- Public Hearing SID 1393 Spread of Assessments
- PRESENTED BY:
- Patrick M. Weber, Finance Director
- Department:
- City Hall Administration
Presentation:
Information
PROBLEM/ISSUE STATEMENT
The initial assessment for SID 1393 (Fritz Subdivision) has been completed by the Finance Division and is ready to spread on the 2012 tax rolls based on the Engineer's estimates. This project is for curb & gutter, storm drain, and necessary street improvements fronting lots along Eldora Lane, Cottonwood Boulevard, Kelly Lane, and Kenneth Street. This project and bond sale have previously been approved by council.
ALTERNATIVES ANALYZED
The Council must hold a public hearing and then may:
- Approve the resolution; or
- Not approve the resolution. If so, the property owners will not be assessed, and the General Fund will be responsible for paying for the improvements.
FINANCIAL IMPACT
The costs associated with SID 1393 are assessed per lot. The net effective interest rate is 4.25 %. Under the State Statute 7-12-4189, the City is required to add ½ of 1% for a total rate of 4.75 %. The ½ of 1% will be used as additional security on bond issues, as stated in the final bond resolution. Interest earnings and prior collections are subtracted from the final construction cost and spread to the appropriate properties. Any remaining fund balances are used to call bonds.
RECOMMENDATION
Staff recommends that a public hearing be held and Council pass the proposed resolution on September 10, 2012.