The assessment for SID 1372 (Summerhill) has been completed by the Finance Division and is ready to spread on the tax rolls. SID 1372 was originally spread based on bond cost and is now being re-spread based on construction cost. This project is for sanitary sewer, water mains, curb, gutter, and street improvements.

The Council must hold a public hearing and then may:

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

The costs associated with SID 1372 are assessed per lot. The net effective interest rate is 5.28%. Under the State statute 7-12-4189, the City is required to add ½ of 1% for a total rate of 5.78%. 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.

Staff recommends that a public hearing be held and Council passes the proposed resolution on September 13, 2010.