04-1511 Initial Assessment Resolution - Summerset North Wall

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and glare caused by nearby roads. Undevelopable Tracts will not derive a special benefit from construction of the Summerset North Subdivision Wall. (G) The City Commission has reviewed the report prepared for the City by the real estate appraisal firm of Bledsoe & Ebaugh, Inc.. According to the report, each Platted Lot within the Summerset North Assessment Area will derive an equal benefit from the construction of the Summerset North Subdivision Wall based on the aesthetics and subdivision identity provided to the Summerset North Assessment Area by construction of the Summerset North Subdivision Wall. The City Commission hereby finds the report and the conclusions made therein reasonable. Since all Platted Lots in the Summerset North Assessment Area benefit equally from this aesthetic component, it is fair and reasonable to assign 1.0 Benefit Unit to each Platted Lot for this component. (H) The City Commission has reviewed the report prepared for the City by the firm of Bledsoe & Ebaugh, Inc.. According to the report, Abutting Lots will not only benefit from the reduction of noise, but will also benefit from the reduction of headlight glare produced by vehicles traveling along Red Bug Lake Road. The City Commission hereby finds the report and the conclusions made therein reasonable. While these additional benefits are not precisely quantifiable, it is fair and reasonable to add 0.25 Benefit Unit to each Abutting Lot benefiting from the glare and noise attenuation component. (1) In order to reduce the total borrowing cost, the City intends to initially finance the Capital Cost by issuing a note for a term of years. Prior to maturity of the -year note, the City may issue long-term bonds, anticipating that interest rates could be lower than those presently available. (J) Since interest rates cannot be predicted with certainty, the financing plan includes a risk that interest rates will be higher on the date long-term bonds are issued, if said bonds are issued. The City intends to hedge this interest rate risk by generating assessment proceeds during each Fiscal Year that are greater than the scheduled debt service on the -year note and apply the excess to prepayment of principal. To accomplish this objective, the Improvement Assessments will be based on an estimated debt service schedule which amortizes the Project Cost over years with interest at the current estimated long-term rates. The amount of each assessment shall be calculated in accordance with Article IV hereof. Resolution No. 04-1511 Page 9 of 23