In the event that an assessment is made before the total cost of the improvement is ascertained and the amount of the assessment is insufficient to defray the expenses of the improvement, the council may, by motion, declare the deficit and.
(a) Determine that the cost of preparing a proposed deficit assessment does not justify proceeding under paragraph (b) of this section and authorize the expenditure of city funds to pay the deficit; or
(b) Prepare a proposed deficit assessment. The council shall set a time for the council or its designee to hear objections to the deficit assessment and shall direct the finance officer to notify the owners of each parcel of real property to be assessed, as provided in section 7.500. After considering evidence and argument presented at the hearing, the council shall make a just and equitable assessment by ordinance, which shall be entered in the docket of city liens as provided by section 7.530. Notice of the assessment shall be sent to the owner and collection of the assessment shall be made in accordance with section 7.530.