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(1) Before formation of a local improvement district, the council or its designee shall hold a public hearing on the improvement. At the hearing the city engineer shall provide:

(a) An estimate of the unit cost to be assessed to properties in the improvement district.

(b) An estimate of the city costs that the improvement would entail.

(c) An estimate of the improvement costs to be borne by others.

(d) A recommendation on whether the improvement should be made.

When the hearing is conducted by the council’s designee, the designee shall prepare a written summary of the hearing and submit it to the council.

(2) When the hearing required by subsection 7.166(1) is conducted by the council’s designee, if, without regard for any council subsidy policy, the owners of property that would bear more than half the amount estimated to be assessed to finance the improvement or repair of a street or alley remonstrate, the council’s designee shall continue the hearing to a council meeting and direct the city engineer to send by first-class mail a notice to the owners of the affected property stating the date, time and place of the council meeting when the proposed improvement and the remonstrance will be considered. As used in this subsection “subsidy policy” means a policy specifically designated as a subsidy program and not other council policies dealing with the allocation of local improvement costs.

(3) After considering evidence and argument presented at the hearing, the council may:

(a) Subject to city charter limitations, approve by resolution the local improvement with or without minor modifications and order it to be made. The resolution shall generally describe the improvement to be constructed and the contemplated boundaries of the district in which property is to be assessed to pay for the improvement.

(b) Delay the approval not more than 15 days.

(c) Substantially modify the improvement and call for a revised notice to be sent to the owners of the affected property as provided in subsection 7.165(2) and a revised city engineer’s report as required by subsection 7.166(1) and then conduct the hearings as required in this section on the modified improvement.

(d) Abandon the improvement.

(4) If the council orders a local improvement to be made and does not concurrently levy the assessments therefor, notice of the prospective assessments to finance the improvement shall be given to each title company known to the finance officer to be conducting business in the city. Each company that receives the notice shall record the prospective assessment in all title searches for property in the assessment district contemplated for the improvement.

(5) After formation of a local improvement district the city manager may award a contract for the construction of the improvement as provided in section 2.1200 et seq. of this code.

(Section 7.166 added by Ordinance No. 17955, enacted April 11, 1977, amended by Ordinance No. 19093, enacted February 14, 1983, effective August 14, 1983; Ordinance No. 19393 enacted July 28, 1986, effective January 28, 1987; Ordinance No. 19653, enacted November 22, 1989, effective May 22, 1990; and Ordinance No. 19935, enacted October 25, 1993.)