11-13-1989 - Agenda Packet City Council - regular meeting

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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 betweet: about a 56,500 assessment charge and between $4,20C and $9,700 connect+on charge. It is anticipated that it would be a 15 to 20 year bond issue. If your total assessment plus conne.tion charge was $lo,0oo over 15 yaacs tf—tt would cost about $670 per year in interest toget`7-:r wi h an initial interest cost of about $500 which would be decrease over the 15 year period to a final 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 u'jacent to a large lot, a lot with a large frontage actually ^osts mort 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 splittt the areas betveen the larger and smaller lots ar' havin a lateral cost for the smaller lots, in this �in, as than for the larger lots.` 4. Aren't there ot'. .aces, such as Cygnet Place, that in the future will need ro have sewer? The City staff has looked at Cygnet Plac as far as -ewerinq and what impact that has on this project. It is anticipated that that area will be looked at over the next 5 or 10 ears. Whether the area needs sewer would be the subject of a Waste Management Study and will be dependent, r..t only, on lot s-ze but also topography, soil corditions, water table ate. ti.s `poked at it as to how a sewer pipe ' be run on an _::imate basis.