04/16/1980 Meeting - Laserfiche WebLink

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e Mr. Lieuallen felt the present rate of seven percent should apply to categories 1 and 2. It was a relatively small amount. He suggested the City go to the legal limit of ten percent for categories 3 and 4. He would need more information before deciding on 1980-81 projects. Mr. Long explained the City has sent letters to property owners such as notice of call for bids, and assessment to property owners in the group of projects under category 2. This happens before council awards a contract for a project. Statements in these notices include "Bancroft bonding requires semi-annual payments of the assessment plus interest of seven percent per year." Mr. Long said that is not binding at this time for the City but it has been stated to the public. He indicated that is why one alternative is to pick up the deficit on the full $12.5 million. Mr. Delay felt the City should not be creating a subsidy. The project should be paid by the owners. There is a need to limit the City's liability. They should behave like bankers. The City did not precipi- tate the problem and they are subject to increases as anyone else. He would advocate an ordinance to include a variable rate. He would like to see alternatives for the builders. Mr. Haws agreed but asked if they would say to the property owners, "You can pay cash or ten percent." e Mr. Long said a letter could be sent to the property owners indicating that the rate will be increased to ten percent or the owner can pay it off prior to the increase. Mayor felt that there was no other alternative at this time. He would add one-half percent for the City's administrative costs. The League of Oregon Cities will lobby for an increase in the interest rate ceiling. He would rather deal with the situation through an interest- rate increase than an increase in the systems development tax. He would advocate categories 2 through 4 go to ten percent. Ms. Miller said this was an opportune time to look at the basic development standards. She questioned whether the City's requirements for streets, sidewalks, and sewers are too high for what the City can afford, thereby creating a need to finance the projects. She asked council to look at the basic regulations. Mr. Lieuallen agreed that council should look at this question. In response to the Mayor's question, Manager indicated that on a statewide basis they are conferring with bond counselors and the League of Oregon Cities. Mr. Teitzel added that if a decision is not reached until June, EWEB and other utilities would be unable to complete all projects at that time. e 4/16/80--7