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City of Missoula, Montana Item to be Referred to City Council Committee Committee: Administration and Finance Item: Resolution levying final assessments for pooled special sidewalk, curb, gutter and alley approach bonds, series 2009A Date: July 10, 2009 Prepared by: Marty Rehbein, City Clerk Initiated by: same Action Required: July 20: Set a public hearing August 10: Adopt final resolution Recommended Motion: July 20: Set a public hearing on August 10, 2009, on a resolution levying assessments for pooled special sidewalk, curb, gutter and alley approach bonds, series 2009A August 10: Adopt a public hearing on August 10, 2009, on a resolution upon all property situated within pooled special sidewalk, curb, gutter and alley approach bonds series 2009A of the city of Missoula, Montana, in the total amount of $645,000 excluding debt service, to defray the cost of installing sidewalks, curbs, gutters and alley approaches pursuant to resolution number awarding the sale of bonds. Timeline: Referral to committee: July 10, 2009 Committee discussion: July 15, 2009 Public hearing (if necessary): August 10, 2009 Deadline: August 24, 2009 Background and Alternatives Explored: The City Council has ordered the installation of sidewalk, curb, gutter and alley approach improvements on various parcels throughout the city during the past year. The improvements have been constructed. Some of the property owners have elected to finance the costs of the improvements with the city. The city pools all the sidewalk, curb, gutter and alley approach projects together each year and issues bonds to provide financing for the property owners who elect it. On June 22, 2009, the City Council adopted a resolution issuing a call for the sale of bonds to finance the costs of these improvements, and on July 13, 2009, the City Council adopted Resolution awarding the sale of the bonds to the lowest responsible bidder. The next step in the process is to levy the assessments on the properties where the improvements were constructed to repay the bondholders. State law requires the City conduct a public hearing before levying the final assessments and to mail notices to the property owners to notify them of the public hearing. The City Clerk office will mail those notices to the property owners on July 24, ---PAGE BREAK--- 2009, and will publish notice in the Missoulian. If the City Council adopts the resolution to levy the final assessments, property owners will see the first installment on their property tax bills beginning in November. Financial Implications: The resolution itemizes the principal assessment for each property owner. Simple interest accrues annually on the outstanding principal balance for each assessment. Once the City issues bonds to finance a project like this, the City is obligated to the bondholders to repay the debt. Defaulting on that commitment would damage the City's credit rating. State law and city council policy provide for a special assessment on the property where the improvements were installed to repay the bonds. Attachments: Resolution (will be presented at committee)