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8488.5 <br />TO: Mayor and City Council <br />FROM: Mark Bernhardson, City Administrator <br />DATE: August 2, 1988 <br />SUBJECT: Financing Alternatives - Sewer Installation <br />ku G 819H <br />ISSUE - Provide the Council with information related to financing <br />of initial sewer installations that may be applicable in various <br />areas of the community. <br />INTRODUCTION - As a result of the outcome on the ultimate <br />financing of the Crystal Bay Sewer Project the Council had <br />indicated to staff a desire to research alternatives financing <br />arrangemerts for future projects particularly in established <br />areas. <br />DISCUSSTION - Staff has been working with the City Attorney to <br />determine what methods, if any, would meet the objectives of <br />fully financing a project by those effected property owners <br />should the City choose that financing route. This research does <br />not preclude the City from participating in the installation of <br />that sewer ;�:t a level that it may deem appropriate in the future. <br />The elements of the financing strategy would be as follows: <br />A. Special Assessment - Based on the market value <br />benefit to the property the City would assess within the <br />total amount of that estimated benefit a special <br />assessment to the property. In the case of Crystal Bay <br />this amount was deemed to be $ 5, 500 per unit. This inay <br />or may not be an applicable number in the Stubbs Bay <br />area. In addition to getting an apprisal of the <br />properties in advance of deteLmination of the special <br />assessment the Attorney suggests that the Council may <br />consider it appropriate to undertake any preliminary <br />appeals by a review by an Administrative Law Judge prior <br />to adopting an amount for the special assessment. <br />B. Connection Chug - This would e a charge paid by <br />the property owner upon hook-up. The statutes and state <br />law are somewhat vague as to the extent of the charge <br />apart from the dire;tion that the amount has to be just <br />and equitable. Elements for a connection charge <br />including the actual expense of the City involved in the <br />connection which could include according to the statute: <br />"To pay for the construction, reconstruction, repair, <br />enlargement, improvement ...... and the maintenance, <br />operation and use of (sewer systems), the governing body <br />may impose just and equitable charges <br />for ..... connections with them and make contracts for the <br />i <br />