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charges as provided in this; section." <br />Minnesota Statute 444.075 Subd. 3 (1987) <br />In Subd. 5 of the same ­.tion the City may impose a <br />sewer connection and %, vote the money received in <br />construction maintenance or use." According to the case <br />law the connection charge can be an addition to the <br />special assessments and does not have to reflect the <br />improved market value by the improvement. Based on the <br />statutory language the City may include a wide array of <br />charges in determining the connection charges. It must <br />not however, be arbitrary and capricious and must be in <br />equal value on similarly situated property. The City <br />can not rapidly increase connection charges, however, in <br />trying to force hook-up but probably may be able to <br />escalate connection charges based on the value of more; <br />for the ini'Aal connection charge to meet the equitable <br />standard. <br />C. Use and Availability Charge - These can be in <br />addition to both special assessme-t and connection <br />charges using in the same "just and equitable standard" <br />as a connection charge. The advantage to this charge is <br />that it can be made on all properties to whom service <br />is available without regard to whether they are actually <br />hooked up or not. The City does use this type oc charge <br />forwater service in areas where people <br />are not presently hooked up. <br />ALTERNATIVES <br />1. Direct staff to further refine strategy for connections to be <br />incorporated in the capital budget. <br />2. Request additiona'_ information regarding the types of <br />charges. <br />3. Tablc for further discussion. <br />4. Take no action. <br />RECOMMENDATION - It is recommended that the Council direct staff <br />to estaElish e policy utilizing the three elements outlined above <br />to have a po., -`y available for financing the charges with any <br />City contribution being an additional element should that choice <br />be undertaken. <br />An issue that has not h-_ answered at this point is whether the <br />City can couple its co,tiection charge togethei with its mandatory <br />hook-up in order to achieve tliie connection charge. This concern <br />may be eliminated by the usP and availability CtJULgc. <br />PROPOSED MOTION - Moved by , seconded by , that the Council <br />direct staff to further refine a policy for financing sewer <br />installations in an established areas in the community. Ayes <br />Nays <br />2 <br />