(A) Pursuant to the necessity of determining a basis or formula of the actual cost to the city of an improvement project and subsequently to the respective property owners benefitted thereby, and the need to assess the various property owners according to this chapter for improvements to streets, public grounds, water systems, sewers, sidewalks, and the costs thereof, the following methods of financing improvement projects are hereby authorized.
(1) One manner in which improvement projects can be accomplished is by private contract by the person or persons owning all of the property to be served, subject to the City Engineer’s approval as to construction and conformity. This method would require an engineering fee to be charged to the respective owners, and an assessment lien therefor in the amount of 5% of the actual cost. The City Engineer shall design, inspect, and approve the actual construction project. By this method, financing of any type or nature shall not be provided by the city or any of its departments, excepting the engineering fee, which shall be assessed and paid upon completion of the project.
(2) Another manner for construction of improvements projects is by the joint requests of the property owners being served, under which lien notes would be requested, based upon the following cost formula to determine the cost of the so-called improvement or extension:
(a) The materials at the city’s cost of acquisition, according to normal bid procedures for purchase;
(b) The actual cost for the use of equipment, according to acceptable standards. The city shall make available a list of the cost of usage and rental of the equipment, according to customary rates for the area;
(c) The actual cost of labor by persons employed in the project, plus the addition of 20% of only the labor amount, to reimburse the city for administrative and other costs not theretofore charged for the project; and
(d) In addition, an engineering fee of 5% of the total construction price shall be paid to the city for the actual plans, design, and work connected with the City Engineer’s supervision and approval of the project.
(3) The City Commission, upon determining the necessity to perform any improvement of any nature specified in this chapter, may apply the same formula in division (A)(2) above for the improvements. The method and distribution of costs would be in the same manner provided in division (A)(2) above. By a majority vote of the City Commission, any improvement project may be performed with or without the consent of the property owners so affected, subject to state law.
(B) At the discretion of the City Commission, and subject to available funds, the following financing arrangement with respect to all the previously described improvements is hereby authorized by this chapter for the payment of assessments. The property owner so affected shall have the privilege to pay the assessment by making an initial payment of 20% of the cost, according to the formula prescribed in division (A)(2) above, and the balance is to be paid in 96 equal monthly installments, together with simple interest at the rate of 6% per annum of the unpaid balance until the entire balance shall have been paid. The monthly installments shall be in addition to the water bill, sewer bill, or other type of bill each month. This would constitute a return to the city of 6% per annum according to law, and according to acceptable methods of financing and the return of investment to the city. This method of paying an assessment, however, shall not be permitted in the event any person elects to use a private contractor or does the work himself or herself.
(1981 Code, § 23-2) (Ord. 615, passed 4-30-1973)