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HomeMy WebLinkAboutRes2000-144 I I I Sponsored by: Janke CITY OF SEWARD, ALASKA RESOLUTION 2000-144 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, CONFIRMING THE SPECIAL ASSESSMENT ROLL OF THE SEWARD P ARK ELECTRICAL IMPROVEMENT DISTRICT, PROVIDING FOR THE LEVY, PAYMENT SCHEDULE AND PENALTIES OF THE SPECIAL ASSESSMENT DISTRICT WHEREAS, after a public hearing, the City Council of the City of Seward, Alaska did authorize the construction of improvements described as the Seward Park Electrical Improvement District; and WHEREAS, a special assessment has been proposed which will apportion the cost of the improvement among the properties to be benefitted by it; and WHEREAS, after conducting a public hearing, the City Council has found that the method of assessment proposed by the city administration and attached hereto is a fair method of apportioning the costs of the improvement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The Special Assessment Roll, a copy of which is attached and incorporated herein by reference, for the Special Improvement District described as the Seward Park Electrical Improvement District is hereby approved and confirmed. Section 2. Assessments are hereby levied against the properties set forth in the Special Assessment Roll in the amounts set opposite each property in such roll. Section 3. Installment payment ofthe assessment against each property is hereby declared acceptable with the payments being made pursuant to the following schedule: Annual Payment Date: Rate of Interest: February 1 Deferred or installment payments of special assessments shall bear interest at an annualized rate of the lesser of (1) the prime rate published in the Anchorage Daily News Business section under Money Rates for the date the resolution confirming the special assessment roll is adopted plus 2% or (2) 15 percent. CITY OF SEWARD, ALASKA RESOLUTION 2000-144 Number of Annual Installments: 10 Penaltv for Late Payment: 12% Section 4. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 20th day of November, 2000. THE CITY OF SEWARD, ALASKA '\ l- \ (> J- \- L, ' Edgar Blatchford, Mayor AYES: NOES: ABSENT: ABSTAIN: Blatchford, Brossow, Orr, Shafer None Calhoon, Clark, King None ATTEST: ~~~ Patrick Reilly City Clerk (City Se~....", ~""" Of SEJ{/"#. ~ ''',,-.l ........ ~':~<l! :> cJ"? :....p.po~.~<> '\ ~.. ~:o iI! :: : _ "0) " . : . : . i SEAL · : . . :: ,. . -- . \ \.~ ~.../. "'~~.!.,&~~~~f' ~ OF ~ ,."'- '.....II"'~ COUNCIL AGENDA STATEMENT Meeting Date: November 20, 2000 Through: Scott Janke, City Manager From: Rick L. Gifford, Director of Finance & Administrative Services Agenda Item: Assessment of the Seward Park Electrical Improvement District BACKGROUND & JUSTIFICATION: On October 25, 1999 Council approved a special improvement district called the Seward Park Electrical Improvement District and authorized the City Manager to proceed with the design and construction of the improvement district. Council authorized funds from the Electric Enterprise Fund in an amount not to exceed $40,000 to finance the improvements. The project has been completed and the total costs of $34,500.96 will now be assessed to the property owners benefitting from the improvements upon approval of the assessment roll by the City Council. Attached is the special assessment roll for the Seward Park Electrical Improvement District containing property descriptions, names of owners of record and assessment amounts. City code section 5.20.035 states that “the costs of an improvement shall be the actual costs of the improvement, including acquisition of interests in land for the improvement, design, engineering, administration, overhead, professional services, guarantee fund, bond costs and interest incurred as a result of the improvement and all other costs resulting from the construction of the improvement.” The total costs of $34,500.96 have been assessed equally to all property owners benefitting from the improvement district. For your information, attached is a copy of the summary of the costs for this improvement district. The electrical work order is also available in the finance department for backup documentation for the costs from the electric utility. A public hearing has been scheduled for the November 20, 2000 Council meeting to allow the affected property owners an opportunity to object to the method of apportioning the cost of the improvement. After the public hearing the Council shall determine the assessment roll where the property assessed is benefitted commensurate with the amount of the assessment. After the determination of the assessment roll, the Council by resolution shall confirm the special assessment roll of the special assessment district. The resolution shall provide for the levy, payment schedule and penalties. No payment shall be required within sixty days after the resolution. Deferred or installment payments shall bear such interest as the City COUNCIL AGENDA STATEMENT Meeting Date: Seward Park Electrical Improvement District Page 2 Council may prescribe in the resolution. It should be noted that according to City Code §5.20.092, if an assessment installment is delinquent for more than six months after the installment is due, the entire principal balance of the assessment, plus accrued interest and penalty on the principal balance shall be due and payable. In the event that the balance due is still not paid, the property will then be subject to foreclosure by the City. Administration recommends that the interest rate be set at 2% above the prime rate as quoted in the Anchorage Daily News Business section under Money Rates for the day Council approves the assessment roll. As of October 10, 2000, the prime rate was 9.50%. The maximum rate that can be charged by State law for real property taxes is 15% per AS 29.45.250. Administration recommends that the rate for special assessments do not exceed the rate for property taxes. Administration also recommends that the penalty rate be set at 12% which is the same rate used by the Kenai Peninsula Borough for delinquent property taxes and the same rate used for the City’s other property assessment districts. It is also recommended that a ten year term be set with annual payments to start on February1, 2001. Annual payments for a ten year term at a 11.50% interest rate for a $2,653.92 assessment would be $412.67. CONSISTENCY CHECKLIST: Yes No 1. Comprehensive Plan 2. Strategic Plan X 3. Other 4. Not applicable FISCAL NOTE: Council approved Resolution 99-146 on October 25, 1999 authorizing the Electric Enterprise Fund to expend up to $40,000 for this project. The project came in under budget at $34,500.96 and will be closed out at that amount. Funding for the improvement district was provided by the Electric Enterprise Maintenance, Repair & Replacement Fund (MRRF). The Electric Enterprise Fund will receive the assessment installment payments for this project, thereby reimbursing the Fund for its costs. Approved by Finance Department RECOMMENDATION: Council approve Resolution 2000- confirming the special assessment roll of the Seward Park Electrical Improvement District, providing for the levy, payment schedule and COUNCIL AGENDA STATEMENT Meeting Date: Seward Park Electrical Improvement District Page 3 penalties of the special assessment district.