6. SR 10-30-1995 - Laserfiche WebLink

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SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL. HELD AT THE ELK RIVER CITY HALL MONDAY, JULY 31, 1995 • Members Present: Mayor Duitsman, Councilmembers Dietr, Farber and Holmgren Members Absent: Councilmember Scheel Staff Present: Pat Klaers, City Administrator; Lori Johnson, Assistant City Administrator; Peter Beck, City Attorney _. _ _. .. _ . ~.,... ~ ..._ ~ ,. ,., ,. ~ y~ 11. City Council Worksession on East Elk River Pvblic Improvement Project City Administrator Pat Klaers provided an introduction as to the current status of the east Elk River public improvement project. This project was last discussed at a Worksession of the City Council on June 26, 1995. At that 6/26/95 meeting the Council reaffirmed their desire to have a fall, 1995, public hearing on the proposed improvements for east Elk River. This public hearing would follow a benefit study on this project being reviewed and accepted by the Council and this public hearing would begin the 429 assessment process. City Engineer Terry Maurer reviewed with the City Council the overall project for the County Road 12 corridor and the East Highway 10 corridor which,. combined, make up the east Elk River public improvement project area. Three different alternatives were presented as the initial (Phase I) construction project area and assessment area. It was noted that with either of the three alternatives, there are some oversizing and start up costs that would be required to be financed through • Pale 7 a method other than direct assessments to the construction or project area. These costs are for such items as lift stations and looping the water system. These costs would be recaptured in future phases of the project when the actual construction costs are lower than the assessment amount. The City Council reaffirmed its desire to have one assessment amount for the entire project and not have one assessment rate for Phase I, another rate for Phase II, another rate for Phase 111, etc. Financial Consultant Dave McGillivray from Springsted reviewed the project cost for all three alternatives on a per acre basis versus an assessment amount of $5,060 per acre. Dave indicated that there is a potential of a city wide levy being necessary in order to meet the bond obligations for all three project alternatives. A tax levy may not be necessary if other funding was identified, and/or if the project cost came in lower, and/or if the assessment rate was higher. All three of the alternatives did not cash flow based on the project cost compared to the assessment amounts and the worse case scenario identified a 10 to 20 percent tax levy increase for the life of the bonds in order to make the city bond payments. A handout of the financial information, dated July 27 and ~28, 199S, was distributed to the City Council Moyor Duitsman and City Council indicated their desire to have a public hearing on this project in the fall in order to receive public input on the desirability of the • public improvements in the various project areas. The City Council indicated its support for aitemative number three which had a bond issue size of approximately $5.6 million. Elk River City Council Meeting July 31, 1995 The City Council spent approximately 45 minutes discussing the potential improvements to the East Highway 10 area and emphasized its desire to have utilities in this area for future commercial and industrial development.