Adopt Resolution #15-01-016 Amending Resolution #14-12-250 Adopting Special Assessment Policy for City Projects

Purpose:  To amend Resolution #14-12-250 Adopting Special Assessment Policy for City Improvement Projects to correct Section 6: General Assessment Policies Applicable to All Types of Improvements:  #4.  Interest.  To reflect the accurate rate of interest to be charged on bonded projects.

Background:  The Special Assessment Policy for City Improvement Projects was adopted by City Council at its regular meeting of December 9, 2014.

After adoption of the policy, staff received a survey of what other cities are charging for interest on improvement projects that are funded by bonding.  The majority of those surveyed reflected an interest charge of 2% over the bonded rate. 





 

The Special Assessment Policy for City Improvement Projects has been amended under Section 6 Number 4 to reflect this additional 2% charge on bonded projects.  This addition is noted in red on the attached "Section #6 Amended.  The treasury rate term has also been extended to give a more thorough definition of matching the treasury rate with the special assessment term.

The full policy is attached which includes these additions.

Staff recommends amending the Special Assessment Policy with the noted additions in Section 6 Number 4 to reflect and be consistent with how interest is currently charged on improvement projects in other cities.

Adopt Resolution #15-01-016 Amending Resolution #14-12-250 Adopting Special Assessment Policy for City Projects to reflect interest rate amendment.