6. SR 10-30-1995 - Laserfiche WebLink

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East Elk River Trunk Sewer October 30, 1995 ----------------------- Page 5 • our development policy. This issue was brought up at the 10/26/95 Planning Commission public hearing on the Comprehensive Plan. Regarding the workshop goals and outline Item #1 -Wastewater Treatment Plant, it should be noted that no figures on the financing of the plant are offered at this time. Staff is still reviewing and evaluating the available revenues versus the anticipated bond payment plan. The bond payments are based on the construction costs and, at this time, the construction costs are still an estimate. The revenues available to pay the bonds are based on the growth within the system and SAC charges. The rate of growth will determine when the additional plant capacity is needed. Financially, staff is much more comfortable delaying the ordering of this plant expansion until the spring of 1997 and having the additional capacity available in the fall of 1998. However, if the estimate for the cost of the Treatment Plant is high, and the actual bids come in at $4.5 million, then it appears that we will be all right in order to meet our bond obligations, but we will not know this until the project is bid. One of the key questions for us to look at is when are the pipes going to be in the ground for the east Elk River trunk utility system and are these pipes going to be in the ground before fall 1998. If this is the case, these east Elk River hook ups will require additional capacity at that time. It is believed that if we don't go east before the fall of 1998, that we have sufficient capacity until that time. The only outstanding concern would be another plant RBC failure that would necessitate some costly improvements or the plant to not meet its discharge limits. Financial information on the plant expansion will be offered on Monday and additional information will be available on 11/6/95 before any formal action is taken by the City Council. •