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HomeMy WebLinkAboutRes2007-032 Sponsored by: Yoder ... CITY OF SEWARD, ALASKA RESOLUTION 2007-032 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, CONFIRMING THE SPECIAL ASSESSMENT ROLL OF THE AFOGNAK ACRES ELECTRIC IMPROVEMENT DISTRICT, AND PROVIDING FOR THE LEVY, PAYMENT TERMS, AND PENAL TIES OF THE SPECIAL ASSESSMENT DISTRCT WHEREAS, following a public hearing held on September 12,2005, the Seward City Council authorized the construction of electrical improvements described as the Afognak Acres Electrical Improvement District; and WHEREAS, a special assessment district was created and will apportion the total cost of the improvements equally among the 24 properties to benefit from the improvements; and WHEREAS, Resolution 2005-78 authorized and appropriated $111,973.32 as the estimated costs of the improvements; and ... WHEREAS, the total costs of the improvements came in at $103,820.87, below the estimated costs, and when apportioned among the 24 properties, results in total assessments to each property of$4,325.87; and WHEREAS, after conducting a public hearing, the Seward City Council hereby finds that the method of apportioning costs as attached hereto, is fair, and hereby establishes the Special Assessment Roll as attached hereto. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The Special Assessment Roll for the Improvement District known as the Afognak Acres Electrical Improvement District, a copy of which is attached hereto and incorporated herein by reference, is hereby approved and confirmed. Section 2. Assessments are hereby levied against the properties set forth in the Special Assessment Roll in the amounts listed opposite each property listed in said roll. Section 3. Installment payments are hereby declared acceptable, with payments required pursuant to the following schedule: -- CITY OF SEWARD RESOLUTION 2007-032 ! ...i Annual Payment Date: Rate of Interest: July 1 Deferred or installment payments of special assessments shall bear interest at an annualized rate of the lesser of (1) the prime rate plus 2%, as the prime rate is published in the Wall Street Journal's Consumer Money Rates for the date the resolution confirming the special assessment roll is adopted; or (2) 15 percent (15%). Maximum Annual Installments: 10 Penalty for Late Payment: 12% Section 4. This resolution shall be effective immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23rd day of April, 2007. THE CITY OF SEWARD, ALASKA I ..J // ~' ,) '--'1/ ". . ii;,A",,~ . 0- k ~-- Vanta Shafer, Mayor / AYES: NOES: ABSENT: ABSTAIN: Dunham, Valdatta, Thomas, Bardarson, Amberg, Shafer None Schafer None ATTEST: Je \\\., ",. ,,~'> ~_ ('\ <ill.. ~.~ oJ Or' \.;Jt::':t "", ~f\ f,~ ...b....:- 1-:,<1 ';J', ;0 cf .." ?oPO '..; y~ ~ .0: .' c.O ~ ..... <:.<"\ -:,. "" .~.., F;.r..' V . ot1.t .........'" '':.A... tl~ ::.. ---- 'V ~ .. " A: C!.".....~ ~ ~: oU. ,~"l.;~\T . '" .~ ~ fllJ';;";l.!."~ : 0 - , . . - :~,; .. ~ : ~ ~ - ~ , . ~ ,." .'') ..t;7 ~ .' .. ~~, ., ,.VA,,, e,,\.' """ ... +,(.1..' ~ ~,,'~~~ 1 ,\'J ..cJ"t" ~ ".':-:,. ".:")\-....,;-...:...... c.... ....' ,,';.. }';. - (:,~ ,f") r- ,. ~ ~\,'-:;. ~-;.. "'!($/: "'~ {' t~J::" ~':~ ~"r ~f,1!"'tiQUiio~a. I l .... Council Agenda Statement Meeting Date: April 23, 2007 From: Kristin Erchinger, Finance Director Through: Marvin Yoder, Interim City Manager Agenda Item: Assessment Roll for Afognak Acres Electric Improvement District BACKGROUND & JUSTIFICATION: In January, 2005, the City of Seward received a request from Steve Schafer, Secretary of Afognak Construction and Excavation, Inc., to extend electrical services to Afognak Acres. The electric department provided cost estimates -- including contingency for unforeseen expenditures -- to provide service to the area. The estimated cost was $111,973.32, to be divided among twenty four (24) parcels. Resolution 2005-78 was approved by the Seward City Council on September 12, 2005. This Resolution authorized creation of a special improvement district for the following lots: Lots CA, CB, CS, CT, CU, CV, CW, CX, CY, CZ of Forest Acres Subdivision shown on Plat 78-6, and Lots 1 through 14 of Afognak Acres Subdivision No. 1. The project was completed at a total cost of $103,820.87, coming in $8,152.45 under the original cost estimate. These costs will now be assessed to the property owners benefiting from the improvements, upon approval of the assessment roll by the City Council. With a total of twenty four properties being assessed, assessments will be $4,325.87 per lot. Attached is the assessment roll for the Afognak Acres Electric Improvement District containing property descriptions, names of owners of record, and assessment amounts. Seward City Code 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 interests accrued as a result of the improvement and all other costs resulting from the construction of the improvement.” The backup documentation supporting the costs of the improvement district is available in the finance department. A public hearing has been scheduled for the April 9, 2007 Council meeting to allow the affected property owners an opportunity to comment on the method used to apportion costs of the improvement district. In this case, properties are being equally assessed for the total cost of the improvements. Following the public hearing, Council shall determine the assessment roll. The resolution shall provide for the levy, repayment terms including interest rate, and proposed penalties for late payment. No payment shall be required within sixty days after the resolution. Deferred or installment payments shall bear such interest as the City Code may prescribe in the resolution. It should be noted that per SCC 5.20.092, if an assessment installation payment is delinquent for more than six months after the due RESOLUTION 2007-032 Page Two _______________________ date, the entire principal balance of the assessment, plus accrued interest and penalty on the principal balance, shall be immediately due and payable. In the event the balance remains unpaid, the property then becomes subject to foreclosure by the City. The administration recommends that the interest rate be set at 2% above the prime rate as quoted in the Wallstreet Journal Consumer Money Rates section, on the day Council approves the assessment roll. As of January April 1, the prime rate was 8.25%. The maximum rate allowed by State law for real property taxes is 15%, per AS 29.45.250. The administration recommends that the interest rate for special assessments not exceed the maximum rate allowed for property taxes. The administration further recommends that the penalty rate be set at 12% which is the same rate used by the Kenai Peninsula Borough for delinquent payment of property taxes, and the same rate used for the City’s other special assessment districts. It is also recommended that individuals desiring to finance their assessments, be allowed to finance them over ten years, with annual installment payments beginning July 1, 2007. Annual payments for a $4,325.87 assessment repaid over ten years at an interest rate of 10.25%, are $711.59. CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: _________________________________________________________ FISCAL NOTE: Council approved Resolution 2005-78 on September 12, 2005, appropriating $111,973.32 for the Afognak Acres Electric Improvement District. Total costs for the improvements are $103,820.87, to be divided among 24 properties. No additional appropriations are necessary. Payments from the special assessment district will be credited to the Electric Enterprise Fund assessment revenue account. Approved by Finance Department: ___________________________ RECOMMENDATION: Approve Resolution 2007-032 confirming the special assessment roll of the Afognak Acres Electric Improvement District, providing for the levy, terms of repayment, and penalties of the special improvement district.