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• • • • <br />Request for Council Action continued <br />Page 3 <br />January 5,2000 <br />Sewer Assessment/Cost Allocation Policy <br />B.The City determines the number of units that will use the trunk line, including those <br />in the initiating neighborhood, and divides the cost of the trunk line by the number <br />of units to generate a per unit trunk cost. This trunk cost can then be funded in two <br />wavs: <br />1) Properties along the trunk line are assessed for the trunk costs. <br />2) The City funds the trunk line costs, and all properties pay the trunk <br />costs as a connection charge when they connect to the trunk line. <br />Analysis of Trunk Line Funding Option.s <br />A. The initiating neighborhood pays full costs. This has been the City’s practice. It is based on <br />the determination that a neighborhood should pay all of the costs related to bringing sewer <br />to the neighborhood. <br />Advantages <br />• The City is certain of full payment for the trunk line through assessments. <br />• Very simple. No need to try to calculate the number of units that may make use of <br />the trunk line in the future. <br />• No uncertainty about the City recouping its costs. <br />Disadvantages <br />Less incentive to ensure the line is sized to meet potential future needs. <br />The initiating neighborhood pays the full cost of a trunk line that may be used by <br />other properties in the future. <br />The initiating neighborhood cost is higher than with the other alternatives. <br />The initiating neighborhood sees the City receiving a windfall in the future when the <br />other properties along the trunk line pay connection charges. <br />B-1. Properi, ^s along the trunk line are assessed for the trunk costs. <br />Advantages <br />The initiating neighborhood costs arc lower. <br />If there are no appeals, the City is assured repayment through assessments.