Public Hearing and Assessment Update

The City Council approved the design and bidding phase for the 2023 Morningside C Neighborhood Roadway Reconstruction project on December 20, 2022, including an estimated $13,800 per residential equivalent unit (REU) assessment. The City Council asked Engineering to clarify the estimated assessment amount, why it’s higher than the 2022 Morningside D/E project and explain the next steps in the Assessment process. A very detailed memo can be found here if interested.

The three primary reasons for the higher assessment amount for Morningside C are the size of lots that receive zero REUs, the lot density, and rising construction costs due to inflation.

1. The lots receiving 0 REU’s are significant in size in 2023 compared to 2022. This creates less REU’s to spread the cost of the project.
2. The lots in 2023 are larger creating less REU’s compared to 2022.
3. The estimated costs between 2022 and 2023 include a larger than usual inflation amount.

Morningside C Schedule and Assessment Next Steps

1. December 2022 – February 2023 – Prepare final plans, specifications and estimate.
2. March / April 2023 – Contractor bidding and City Council considers awarding a construction contract.
   1. Historically the estimated costs generally decrease during the bidding phase. Occasionally costs increase.
   2. The City Council could choose to not award a construction contract if uncomfortable with the estimated costs.
3. April / May 2023 – Construction begins.
4. Fall 2023 – Construction concludes.
   1. Historically the estimated costs generally decrease if changes or unforeseen conditions are not encountered.
5. October 2024 – Final assessment hearing.
   1. Final assessment amount mailed to property owners.
   2. Payment options:
      1. Pay the entire amount within 30 days of the assessment hearing to avoid future interest charges.
      2. Pay a minimum 25% of the amount within 30 days of the assessment hearing and the balance rolls over to property taxes spread out over 15 years, with interest.
      3. Roll the entire amount over to property taxes spread out over 15 years, with interest.
      4. Payments may be deferred if you are 65 years of age or older and meet specific income requirements.