7.4. SR 05-02-1994 - Laserfiche WebLink

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e this issue has remained at $1,280,000 which is the original estimate. Any proceeds not used for the interim plan may be used to finance other allowable sewer projects such as the Highway 10 lift station, the UV system, or the second phase of the expansion. The revenue bonds indicate that the City has approved a sewer rate increase in order to adequately service the debt on the bond. If revenues are not sufficient for some reason, the City is required to levy an ad valorem tax to meet the required bond payments. At this time, it is not anticipated that any tax levy will be required during the life of these bonds. $1.080.000 GO Storm Sewer Revenue Bond. Series 1994C e The City Council has given approval for various storm sewer improvements including the Highway 10 and 169/101 improvements at a cost of approximately $490,000, the Deerfield III improvements at a cost of approximately $178,000, and the County Road 12 and 13 improvements at an estimated cost of $400,000. Originally it was hoped that some of the costs previously incurred could be recaptured through this bond issue; however, the Highway 10 and 169 improvements were awarded at approximately $80,000 over the original estimate. Again, due to the timing of the receipt of this information, the bond issue was not resized to include that $80,000. Hopefully, the County Road 12 and 13 improvements will be less than the estimated $400,000 so that any remaining bond proceeds can be used to offset previous costs incurred. If not, the monthly utility fee which is collected and not pledged to debt service payments can be used to recapture those costs. For projection purposes, we have assumed that $175,000 in utility fees will be collected annually. Under that assumption, the City will have funds available to issue another $600,000 of debt in 1995. However, this means that no additional funds will be available for storm sewer projects until 2010. It is assumed that the $175,000 revenue figure is very conservative and that the figure will be closer to $200,000 or more. In any regard, the Council will need to seriously evaluate upcoming storm sewer projects and the need for additional bond issues prior to setting the surface water management utility fee which is to start being billed later this summer. Librarv Exoansion Financine In previous discussions about library financing and the other bonding needs required in 1994, it was anticipated that library expansion tax increment bonds would be issued jointly with the other bond issues. However, due to some legal technicalities, the timing on that has been delayed approximately one to two months. This will not in any way affect the current plans for a library expansion as the library fund itself is contributing approximately $130,000 and a tax increment amendment was approved in August, 1993, authorizing the use of $177,000. Therefore, adequate cash will be available to finance the construction. e As I mentioned, a TIP amendment was approved in August, 1993, allowing the use of $177,000 for construction of the library. However the tax increment amendment does not