07-31-1995 CC MIN - SPECIAL - Laserfiche WebLink

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Elk River City Council Meeting July31,1995 Page 7 e a method other than direct assessments to the construction ar 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 III, etc. Financial Consultant Dave McGillivray from Springsted reviewed the project cost for aU 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 aU 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. AU three of the alternatives did not cash flow based on the project cost compared to the assessment amounts and the worse case scenario identified 0 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, 1995, was distributed to the City Council. Mayor 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 alternative number three which had a bond issue size of approximately $5.6 million. e The City Council spent approximately 45 minutes discussing the potentiol improvements to the East Highway 10 area and emphasized its desire to have utilities in this oreo for future commercial and industrial development. 10. Stoff Uodates The City Administrator distributed the Notional League of Cities Annual Conference registration information. The City Administrator requested permission to obtain an appraisal quote for a potential Westbound Liquor Store site from St. Cloud Appraisal, Inc. The Council agreed and further indicated that the appraisal could start if the quote was under $1,000. The City Administrator updated the City Council on the planned improvements by the school on the tennis courts and fence. Additionally, the school superintendent has requested that the city improve the lighting system around the tennis courts. The City Council concurred to finance this expenditure from the pork equipment reserve provided that the expenditures were in the $3,000 range. e