Regular 3.A.
Regular City Council Meeting
- Meeting Date:
- 09/26/2011
- TITLE
- Public Hearing Respread SID 1360
- PRESENTED BY:
- Patrick M. Weber, Finance Director
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
The respread of assessments for SID 1360 (Gabel Road) has been completed by the Finance Dept. and is ready to spread on the tax rolls. SID 1360 was originally assessed with an interest rate of 5.811% and is being refinananced at a lower interest rate of 4.105 %.
ALTERNATIVES ANALYZED
The Council must hold a public hearing and then may:
- Approve the resolution; or
- Not approve the resolution
FINANCIAL IMPACT
The costs associated with SID 1360 are assessed per lot. The net effective interest rate is 3.605 %. Under the State statute 7-12-4189, the City is required to add ½ of 1% for a total rate of 4.105 %. The ½ of 1% will be used as additional security on bond issues, as stated in the final bond resolution. A savings of $253,000 was acheived by the refunding. These savings will be passed on to the property owners with outstanding assessments.
RECOMMENDATION
Staff recommends that the City Council conduct a public hearing and pass the proposed resolution on September 26, 2011.