Item 5: Ordinance Levying Assessments for West University Alleys

Home Browse Search

3). The average salary rate for the same classifications was $27.71. Ex. 4. The writer was told by city engineering staff that the fringe benefits for city employees was 35.25% for the fiscal year 2006. If these fringe benefits were the same in 2004, the average salary rate including benefits would have been $37.48. This is essentially half of the Charge- Out Rates. With the reduction in benefits due to PERS payment reductions, and with the increase in charge-out rates, the charge-out rates may currently be more than double actual wages and benefits. f) If actual costs determined by actual wages and benefits were essentially half of the Charge-Out Rates, the Engineering Charge used as part of the overall alley assessments would be reduced from $509,380.59 to $254,690.30. The total assessments for the alley project would be reduced by the same amount to $1,532,167.04, or a percentage reduction of 14.25%. If this reduction is applied to the assessment at 566 E. 18th, the new assessment would be reduced by $2,272.70 to $13,676.10. g) City is also basing the assessment in part on an administration fee of $58,769.15. This is apparently based upon the 5% Finance Fee established by Administrative Order No. 44-04-04-F. Ex. 5. This portion of the assessment is not valid for several reasons. First, the Order was not a general ordinance as required by the City Charter, and thus cannot be used to base assessments. Second, there is no evidence that the 5% Finance Fee reflects the "actual cost" required to be charged by the Oregon Constitution. There is no evidence of "actual costs" to the City in the amount of $58,769.15, or any other amount. It should be noted that these amounts are in addition to the financing charges associated with installment payments for any assessment, as set forth in the proposed assessment. h)The finance charge of $58,769.15 represents 3.3% ofthe total assessments, and 5% of the contractor charges. Removal of this charge would presumably reduce the assessment for the property at 566 E. 18th by roughly $526.31. 2) Lack of Uniform Assessments The writer was advised by City Engineering staff that not all unimproved alleys within the Local Improvement District were identified for mandated alley improvement and assessment. The assessments therefore are not uniform within the District. Some property owners with unimproved alleys were assessed and some were not. ~ L oyd Helikson Date: January 30, 2006 4~dL~ Doris 1. H son Date: January ~ 2006 2-1 J31I. 3. _. ~ ~