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Study Session Meeting January 29, 2005 Ms. Colquitt commented that the City "be very careful with information given to residents when the notification of residents begins so the City does not look like it is not doing its job" and she mentioned the improvements conducted on Roberts. Mr. Ollendorff said the next time this is up for discussion he will make suggestions for slight adjustments in the assessment procedures, believing the formula used can be made clearer. There was no consensus reached. The preceding discussion was for information purposes. #3 - Financin,q Nei,qhborhood Improvement District- University Park No. 2 Mr. Ollendorff said for streets not owned by the City, such as private streets in private subdivisions or new developments, the owner is required to pay one hundred per cent of the cost of improvements. That includes a private subdivision, a new subdivision, a new development; they all pay one hundred per cent. Currently, in the Second Ward, University Park Number Two has five blocks of private streets being paved because residents petitioned to have the work done. They are assessed one hundred per cent of the cost. Three of the five streets have been completed. The remaining two will be completed in the spring. The total cost is about $900,000 and residents will be assessed the total cost. In the far past, when street improvements were made, the City used to borrow money from the bank to pay the contractor. For the last twenty-five years the City put up the money from the general fund and the residents paid back the City. Discussion as to how the billing is conducted followed. In the case of University Park Number Two, Mr. Ollendorff asked the Council if the money should be borrowed. He prefers paying and then collecting from the residents, but it may be better to borrow the money due to it being such a large sum. This decision must be made by the Council at a later date. Ms. Welsch said she would recuse herself when that discussion is held because she owns a building in University Park Number Two. She asked if the City had all ready paid the money and was told it is "paying as we go along." Mr. Ollendorff advised that when money is borrowed, it is borrowed at the end of the process. It could be borrowed at the start of the project, but was not necessary because the City had the money in reserves. He said eventually the Council must make the decision at what point the money will be borrowed or wait until it is paid back. Mr. Wagner pointed out that the City would lose interest if the money was paid in advance and discussion related to this point followed. It will be discussed at a future study session meeting so a decision can be reached in a month or so. Discussion about when to hold the next study session meeting ensued. It was decided that the Council could meet for one item before the next Council meeting on the 14th at 6:00 p.m. Page 8