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<br />! ~'\) <br />( )f <br />~l}{ <br /> <br /> <br />ITEM 5.6. <br /> <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />MAYOR & CITY COUNCIL <br /> <br />FROM: <br /> <br />PAT KLAERS, CITY ADMINISTRATOR <br /> <br />DATE: <br /> <br />JULY 28,1994 <br /> <br />SUBJECT: $3,800 ASSESSMENT RATE <br /> <br />The issue of charging $3,800 on a city-wide basis for trunk sewer and water <br />has previously been discussed and reviewed by the City Council. This is not <br />an easy decision to make, but we need to get some direction from the Council <br />on how to proceed with assessing out the benefits for trunk sewer and water <br />in the northeast and other sections of the City. <br /> <br />. <br /> <br />First of all, it should be noted that this is not an Assessment Manual issue. <br />The Assessment Manual is not a City ordinance and has often changed at <br />City Council meetings. The issue in the northeast area relates to the cost of <br />public improvements, the benefit of having trunk facilities available for the <br />opportunity to develop in an urban manner, and charging an established rate <br />on a city-wide basis. <br /> <br />Attached to this memo is my previous memo on this topic along with a letter <br />from Mr. Foster who is the major property owner in the northeast area. <br /> <br />The $3,800 amount was not arbitrarily or artificially created. This amount <br />was established for the western area project based on the estimated cost of <br />construction (over time) and the estimated assessment area for the trunk <br />system. City Council action on such items as two years interest free <br />assessment deferrals for tillable green acres, and deleting trunk assessments <br />for such areas as the Sandpiper Estates subdivision will affect whether or not <br />this $3,800 figure is sufficient to pay the trunk cost. We may have to rely on <br />prepayments of the trunk assessments in order to have this amount cash flow <br />at the end of the project. <br /> <br />. <br /> <br />Also, the $3,800 figure was used in the northwest area, and this figure was <br />also a fairly accurate calculation for Dart of the actual construction costs. <br />The total amount for this project is still very much uncertain. This is due to <br />the timing of when water will be available in this area, when the deferred <br />assessments come on to the tax roll, and what the increased cost for <br />construction will be when the project is totally completed. <br /> <br />P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br />