Regular 2.A.
Regular City Council Meeting
- Meeting Date:
- 09/24/2018
- TITLE
- Public Hearing SID 1405 Spread of Assessments
- PRESENTED BY:
- Andy Zoeller
- Department:
- City Hall Administration
Presentation:
No
PROBLEM/ISSUE STATEMENT
The assessment for SID 1405 (EBURD street lights) has been completed by the Finance Division and is ready to spread on the tax rolls. This project and bond sale have previously been approved by Council. This project will install street lights from North10th Street to North 22nd Street and Montana Avenue to 6th Avenue North.
ALTERNATIVES ANALYZED
The Council must hold a public hearing and then may:
- Approve the resolution; or
- Not approve the resolution. If Council does not approve the resolution, the property owners will not be assessed and the General Fund will be responsible for paying for the improvements.
FINANCIAL IMPACT
The amount of the bond sale was $1,090,000. The costs associated with SID 1405 are assessed per lot, per the attached resolution. The net effective interest rate is 3.80%. Under the State Statute 7-12-4189, the City is required to add ½ of 1% for a total rate of 4.30%. The .5% 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 the City Council conduct a public hearing and pass the proposed resolution spreading assessments for SID 1405.