The assessment for SID 1383 (Cherry Hills Road) has been completed by the Finance Division and is ready to spread on the tax rolls. SID 1383 was originally spread based on estimated or bond cost and is now being re-spread based on the completed construction cost. This project is for water, sewer, storm drain and street improvements between Cherry Hills Rd and Annadale Rd and east of Clubhouse Way.

The Council must hold a public hearing and then may:

• Approve the resolution; or
• Not approve the resolution, the property owners will not be assessed, and the General Fund will be responsible for paying for the improvements.

The costs associated with SID 1383 are assessed per lot. The net effective interest rate is 5.10%. Under the State statute 7-12-4189, the City is required to add ½ of 1% for a total rate of 5.60%. 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 allocated to the appropriate properties. Any remaining fund balances are used to call bonds.

Staff recommends that the City Council conduct a public hearing and pass the proposed resolution on September 12, 2011.