The public hearing for this item was held at the regular meeting on September 13, 2010. The public hearing was opened, no one testified, and the public hearing was closed. At staff's recommendation, council delayed action on the item until the meeting of September 27, 2010, so further analysis of the assessment amounts could be made. The assessment for SID 1386 (East & West MacDonald) has been completed by the Finance Division and is ready to spread on the tax rolls. SID 1386 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 street and storm improvements along East & West MacDonald.

The Council 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 1386 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 allocated to the appropriate properties. Any remaining fund balances are used to call bonds.

Staff recommends Council pass the proposed resolution.