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

Home Browse Search

2. What are the costs of the projerl. and what are anticipateu to be the financing options. The costs are detailed on the sheet that was handed out, spl' : out between about a $6,500 assessment charge and between $4,200 and S9,700 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 decease over the 15 year period to a final year interest cost in the range of $60.00. Scread over years, the annual principal would go down but the amount of interest paij over that timeperiod would be inc.eased. If you. 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 ;jing to be installed ad_acent t, a large lot, a lot with a large frontage actually costs more to serve than a lot with a small frontage. To the extant that sewer is needed the greater number of smaller lots actual.y, defray the cost for the large. lots. (This is balanced out by splitting the areas between the larger and smaller lots and having the lateral cost for the smaller Iota, in this case, being less titan for the larger lots.) 4. - ro't there other places, such as Cygnet Pla-:. that in the - will need to have sewer? The City staff has locked at rvgnet Place os far as sewerina and what impart that has on this project. It is anticipated that that a: . -ea vi11 be loote,. at. over t... text 5 or 10 -^ars. Whether the a:ea needs -ewer would be the subject of a Waste Management Study and will b: endent, not onl;•, on lot size but also topography, soil conditiins, water tac '.e etc. We looked at it as to hoi a sewer pipe will ,e run on an app[cximate basis.