01-22-1990 Council Packet - Laserfiche WebLink

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’• • •• 2. What are the costs of the project and what are anticipated to be the financing options. The costs are detailed on the sheet that was handed out, split out between about a $6,500 assessment charge and between $4,200 and $9,700 connection charge. It is anticipated that it would be a 15 to 20 year bond issue. If your total assessment plus connection charge was $10,000 over 15 years that would cost about $670 per year in interest together with an initial interest cost of about $800 which would be decrease over the 15 year period to a f'nal year interest cost in the range of $60.00. Spread over . years, the annual principal would go down but the amount of interest paid over that timeperiod would be increased. If your rate is $15,000 just multiply those numbers by 1.5 times the $10,000 number. 3. Are the larger lots subsidizing the smaller lots? To the extent that sewer is going to be installed adjacent to a large lot, a lot with a large frontage actually costs more to serve than a lot with a small frontage. To the extent that sewer is needed the greater number of smaller lots actually, defray the cost for the larger lots. (This is balanced out by splitting the areas between the larger and smaller lots and having the lateral cost for the smaller lots, in this case, being less than for the larger lots.) 4. Aren't there other places, such as Cygnet Place, that in the future will need to have sewer? The City staff has looked at Cygnet Place as far as sewering and what impact that has on this project. It is anticipated that that area will be looked at over the next 5 or 10 years. Whether the area needs sewer would be the subject of a Waste Management Study and will be dependent, not only, on lot size but also topography, soil conditions, water table etc. We looked at it as to how a sewer pipe will be run on an approximate basis.