6.4. SR 06-23-2003Item ~_~.~'
Howard R, Green Oompany
June 18, 2003
File: 818860J-0564
The Honorable Mayor and City Council
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
RE: BOSTON STREET/CONCORD STREET AREA ASSESSMENT
Dear Council Members:
As directed by the City Council at last week's meeting, I have discussed with Lori Johnson, Finance
Director, the vadous options that could be made available for the payment of the assessment by the
affected property owners in the Boston Street/Concord Street improvement area. Ms. Johnson was
very emphatic that assessments should not be spread beyond a 20-year period. Also, because
Sherbume County will treat each variation on the assessment payback as a unique and separate
assessment schedule, Ms. Johnson would like to keep the number of options to a bare minimum.
Therefore, we are proposing two options: The first is the option that was sent out to the affected
property owners with the notice of the Assessment Hearing; that is a 15-year constant principal
payment method. The second option would be a 20-year constant annual payment method. A copy
of each option is attached.
As can be seen by the two examples attached, the 15-year constant principal payment method starts
out with an annual payment of just under $2,200 and ends up with an annual payment of just over
$1,200 at the end of 15 years, for a total payment of principal and interest over that period of time of
$24,911.06. The 20-year constant annual payment method holds payments at approximately $1,450
per year for 20 years, giving a total payment at the end of that period of principal and interest of
$28,938.89.
If these two options are acceptable to the City Council, we will send a letter to each of the 21 affected
property owners indicating they can have the option to change their assessment to a 20-year constant
annual payment method. If they do nothing, it will be recorded as the 15-year constant principal
method. In order to make the change, they will simply have call the Finance Department and request
the change.
If you have any questions regarding this issue, I will be in attendance at your June 23, 2003 City
Council meeting.
Sincerely,
Howard R. Green Company
Terry J. t,,~rer, P.E.
TJM:sw
Enclosures
Ltr-O61803-Council
1326 Energy Park Drive · St. Paul, MN 55108 · 651/644-4389 fax 651/644-9446 toll free 888/368-4389
ASSESSMENT SCHEDULE
Constant Principal Payment Method
Project: Boston Street and Concord Street Utility and Street Improvements
Project No: 818860J
Parcel:
Owner:
c/o
Address:
Interest Start Date: December 1, 2003
Repayment Period: 15 yrs
Interest Rate: 5.50%
Assessments: Quantity
SANITARY SEWER AND 1
WATERMAIN
Unit Measure
LS
Unit Price
17,243.41
Amount
17,243.41
ANNUAL PRINCIPAL INTEREST
PAYMENT PAYMENT PAYMENT
PRINCIPAL
REMAINING
2003 $0.00
2004 $2,178.50 $1,149.56
2005 $2,034.72 $1,149.56
2006 $1,971.50 $1,149.56
2007 $1,908.27 $1,149.56
2008 $1,845.04 $1,149.56
2009 $1,781.82 $1,149.56
2010 $1,718.59 $1,149.56
2011 $1,655.37 $1,149.56
2012 $1,592.14 $1,149.56
2013 $1,528.92 $1,149.56
2014 $1,465.69 $1,149.56
2015 $1,402.46 $1,149.56
2016 $1,339.24 $1,149.56
2017 $1,276.01 $1,149.56
2018 $1,212.79 $1,149.56
$0.00
$1,028.94
$885.16
$821.94
$758.71
$695.48
$632.26
$569.03
$505.81
$442.58
$379.36
$316.13
$252.90
$189.68
$126.45
$63.23
$17 243.41
$16 093.85
$14 944.29
$13 794.73
$12 645.17
$11 495.61
$10 346.05
$9 196.49
$8046.92
$6897.36
$5747.80
$4.598.24
$3,448.68
$2,299.12
$1,149.56
$0.00
Note:
$24,911.06 Total Annual Payment
The interest payment for the year 2004 includes $80.55
for interest accrued from December 01, 2003 to January 01, 2004.
Page I
ASSESSMENT SCHEDULE
Constant Annual Payment Method
Project: Boston Street and Concord Street Utility and Street
Project No: 818860J
Parcel:
Owner:
c/o
Address:
Interest Start Date:
Repayment Period:
Interest Rate:
Assessments:
Utility Improvements
December 1, 2003
20 yrs
5.50%
Quantity Unit Measure Unit Price
I LS 17,243.41
Amount
17,243.41
SCHEDULED PRINCIPAL INTEREST PRINCIPAL
PAYMENT PAYMENT PAYMENT REMAINING
2003 $0.00 $0.00 $17,243.41
2004 $1,523.46 $494.53 $1,028.94 $16,748.88
2005 $1,442.92 $521.73 $921.19 $16,227.15
2006 $1,442.92 $550.42 $892.49 $15,676.73
2007 $1,442.92 $580.70 $862.22 $15,096.03
2008 $1,442.92 $612.64 $830.28 $14,483.40
2009 $1,442.92 $646.33 $796.59 $13,837.07
2010 $1,442.92 $681.88 $761.04 $13,155.19
2011 $1,442.92 $719.38 $723.54 $12,435.81
2012 $1,442.92 $758.95 $683.97 $11,676.86
2013 $1,442.92 $800.69 $642.23 $10,876.17
2014 $1,442.92 $844.73 $598.19 $10,031.44
2015 $1,442.92 $891.19 $551.73 $9,140.25
2016 $1,442.92 $940.20 $502.71 $8,200.05
2017 $1,442.92 $991.91 $451.00 $7,208.14
2018 $1,442.92 $1,046.47 $396.45 $6,161.67
2019 $1,442.92 $1,104.03 $338.89 $5,057.64
2020 $1,442.92 $1,164.75 $278.17 $3,892.89
2021 $1,442.92 $1,228.81 $214.11 $2,664.09
2022 $1,442.92 $1,296.39 $146.52 $1,367.69
2023 $1,442.92 $1,367.69 $75.22 $0.00
Note:
$28,938.89 Total Annual Payment
The interest payment for the year 2004 includes $80.55
for interest accrued from December 01, 2003 to January 01, 2004.
Page 1