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<br />rll ---\) <br />( )j <br />.Y of !J! <br />Ell{ <br /> <br />ITEM 8 <br /> <br /> <br />TO: <br /> <br />MAYOR & CITY COUNCIL <br /> <br />FROM: <br /> <br />PAT KLAERS, CITY TOR <br /> <br /> <br />DATE: APRIL 29, 1993 <br /> <br />SUBJECT: JOINT MEETING WITH ELK RIVER <br />UTILITIES <br /> <br />INTRODUCTION <br /> <br />A joint meeting <br />5/3/93. This <br />between the City <br />attachment) and <br />Utilities Commission <br />attachment) . <br /> <br />with the Utilities Commission is scheduled for <br />is a follow up to the 2/17/93 joint meeting <br />Council and the Utilities Commission (see <br />to consider the recommendation from the <br />that came out of its 4/6/93 meeting (see <br /> <br />BACKGROUND <br /> <br />. <br /> <br />The issues involved in financing needed improvements in the <br />water system are well known and have previously been discussed <br />by the City Council and the Utilities Commission both <br />independently and jointly. The most important fact that must <br />be kept in mind is that the three most immediately needed water <br />system improvements can be financed. The City Council and the <br />Utilities Commission need to work together for the orderly <br />growth of the community to help improve the community <br />employment and tax base. In short, the City Council and the <br />Utilities Commission are partners in the urban growth of the <br />City. <br /> <br />WAC. . . WCC. . . WIF. . . ??? <br /> <br />At the 4/26/93 City Council meeting, City Attorney, Peter Beck, <br />was in attendance to provide some information to the City <br />Council on the legal ramifications of developing a new water <br />fee called a Water Impact Fee (WIF). At this meeting, Peter <br />indicated that, in reality, the water utility is collecting a <br />Water Availability Charge (WAC) and a Water Connection Charge <br />(WCC) as one. Currently, the water utility collects the WAC at <br />the time of hook up or connection. The City sanitary sewer <br />utility does the same thing with its Sewer Availability Charge <br />(SAC) which is collected at the time of hook up. <br /> <br />What was discussed at the 4/26 meeting was changing the policy <br />at the water utility and separating out the WAC and WCC. In <br />this manner, the WCC or WAC could replace the proposed WIF. <br /> <br />. <br /> <br />Both the WAC and the WCC are provided for by State law, whereas <br />a WIF is not, but could most likely be collected as part of <br />City development proposals. By changing the terminology and <br />acronYm and using a WAC and WCC to collect two fees instead of <br /> <br />P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br />