The council discussed changes to fees and payment terms for the Kettle Road sanitary sewer extension, including a proposed amendment to lower the assessment interest rate to 5% and apply $50,000 in American Rescue Plan Act (ARPA) funds to reduce per-property assessments.

"I'll move an amendment to that to lower the interest rate to 5% and add $50,000 of ARPA funds to lower the- price," the presiding official stated while introducing the change. The amendment was seconded.

Resident Mary Conway, who identified herself as living at 3605 Broken Kettle, asked how the $50,000 subsidy would affect the per-property assessment. Finance staff said using $50,000 toward the project would lower the per-property assessed value to approximately $16,349.29, and that owners would have the option to negotiate payment plans with the city.

"If citizens or property owners wish to enter into an agreement it comes back to the council and the council sets the terms for everyone that would be doing that at that time," the staff member explained.

Council members and staff also debated when interest would begin to accrue. A staff member cited state law in describing the timing: "The state code says it's when the contract is completed. Essentially, that's when the interest would accrue." The staffer added the council has in past instances agreed to waive portions of interest on a case-by-case basis, but any such waiver would be a future council decision tied to the negotiation of individual assessment agreements.

Finance staff told the council they would return in January with specific language and options for implementing payment agreements. The transcript records the amendment being moved and seconded and a motion to proceed to third reading, but a final roll-call vote on the amendment or final adoption of the ordinance is not recorded in the provided segments.

Next steps: staff will prepare and return with ordinance language and payment-agreement language in January for council consideration.