06/11/1980 Meeting - Laserfiche WebLink

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- e e B. Ms. Miller noted written testimony can be presented until Friday, June 13, at noon. It might be that some new issues would arise by that time. Mr. Lieuallen wondered if the formula itself might be the problem as it may be too complicated. Mr. Delay responded that the committee had spent much time on the formula development. He suggested that perhaps Ms. Niven could be of further assistance. Ordinances for Second Reading 1. Approval of Hearings Panel Minutes of June 2, 1980 Ms. Smith moved, seconded by Mr. Lieuallen, to approve the Hearings Panel minutes of June 2, 1980. Roll call vote; motion carried unanimously. 2. Levy Assessments--Mr. Henry stated the following council bills were read the first time on May 27, 1980; they were referred to the Hearings Panel for hearing June 2, 1980; and are brought back for council consideration to levy assessments as proposed. Mr. Henry said these interest rates are going from seven percent to ten percent. Recommendations are still standing to levy the assessments. Ms. Smith indicated that some of the property owners were concerned with the interest rate increase from seven percent to ten percent. She added that it would take two-thirds of the council to agree to open this item up for a public hearing. Mr. Obie noted he would abstain on CB 2127, Nolan Industrial Park. Mr. Haws asked at what interest rate these would be assessed. Mr. Henry responded that the rate would be determined at the time of the bond sale. Staff could lower the interest rate if the bond sale is favorable. Mr. Haws asked at what interest rate these would be approved. Mr. Henry responded it would be ten percent. This would be justified and would apply to all future levies until Bancrofting bonds come down in their interest rate. Mr. Haws asked if people could either use this form of funding or they could borrow elsewhere. He was told that was correct. Ms. Smith noted that part of the problem is that the owners were told seven percent at a time when Bancroft bonds were available at a lower rate and now it is at ten percent. Mr. Obie noted that City costs are ten percent and that the City is charging only what it has to pay. If the City pays less, then the assessment is reduced. Mr. Oelay noted it is not accurate to say that a commit- ment was made for seven percent. That was only what the rate was at the time. Stan Long agreed that the City had not committed to a seven-percent interest rate. Ms. Schue stated that it is unfortunate that the memos were not clearer. There is a need for better public information. 6/11/80--9