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There is good news and bad news. That is how City engineer Justin Black wrapped up his report on the final proposed assessment rates for Gaylord’s 2008 street and utility improvement project.

Workers are putting the finishing touches on the project which included improvements to Lincoln Avenue, Lake Avenue, Fifth Street, Fifth Street East and Lake Avenue East. Those who own property abutting the project area will be assessed for a portion of the project.

It is good news and bad news on the proposed assessment rates, according to Black. As per the City’s policy, the assessments are proposed to be levied on a per unit basis. Black’s report indicated that the proposed assessment rate for a unit receiving all the improvements (new service lines, utilities and street reconstruction) is approximately $2,000 less than estimated. This can be attributed to the City receiving favorable bids on the project, Black explained.

The bad news, according to Black, is that the assessment rates are higher per unit than they were for the 2007 street/utility improvement project. Because there are less parcels to divide the cost this year, assessment rates increased, he reported. Black said lots abutting the project this year are larger and some lots, with street located on two or three sides, are only assessed one unit.

The proposed assessment rates for property owners receiving all of the improvements is $11,235. It had been estimated that this assessment would be $12,720. Property owners who received all of the improvements during the 2007 project were assessed $9,117.

According to Black, final assessment rates were calculated based on 25% of the total project cost. It is estimated the total project cost for the City will be $2,145,099.

Assessments shall be payable in equal installments extending over a period of 20 years. The first installment is to be paid on or before the first Monday of 2009 and shall bear interest at a rate of 6% per annum from the date of the adoption of the assessment resolution.

A hearing on the proposed assessment rates is scheduled for Thursday, October 16th. At this time, property owners being assessed will be given an opportunity to be heard with reference to such assessments. This meeting will be held at Gaylord’s Fire Hall beginning at 7:00 p.m.

A Notice of Hearing on the proposed assessments is published in the Public Notices.