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The Council has recognized that. recent Stara Supreme Court <br />decisions make it difficult for a city to assess the entire cost <br />of a municipal project to only the benefitted properties. The <br />acceptable amount of assessment cannot exceed the amount that the <br />property value increases as a result of the project. In Crystal <br />Bay, with an average estimated residential market value (1985 <br />taxes) of $64,200, and based on the report of an independent <br />appraiser hired by the City, it is unlikely that all the bene- <br />fitted properties will realize an increase in value of $10,850. <br />The City applied for federal and state funding for this <br />project in 1979. The Minnesota Pollution Control Agency, which <br />administers these funds, has indicated that this project is not <br />eligible for funding (collection systems discharging to existing <br />treatment facilities are not being fui.Jed). Hence, the Council <br />is considering declaring that a percentage of the project cost be <br />financed through the general tax revenues, which may raise taxes <br />slightly throughout the City. <br />PROCESS TO DATE <br />Octocer 1.0, <br />1979 - Orono submitted formal application for <br />federal and state funding for sewer system for <br />Crystal Bay and 5 other areas. <br />June 1980 <br />- Orono Community Management Plan adopted, identi- <br />fied Crystal Bay as one of five rural housing <br />cl,,sters needing Alternative Waste Management <br />Studies. <br />1980-1983 - <br />MPCA, reviewing agency for state and federal grant <br />monies, indicated on many occasions that funds are <br />not available to fund Orono's requests. <br />5/23/63 - <br />Council adopts Resolution #1490 requesting <br />Emergency Jobs Bill Funds for Crystal Bay/Stubbs <br />Bay sewers. <br />9/12/83 - <br />Council adopts Resolution #1518 amending Community <br />Development Block Grant (CDBG) funding budget to <br />include sewer feasibility studies for Crystal Bay <br />and Stubbs Bay areas. <br />Winter 1983-84 - Preliminary feasibility study for Crystal Bay <br />sewers is completed by City Engineer. <br />5/11/84 - Formal notice from PCA that Orono's Crystal Bay <br />and Stubb's Bay collection system projects are not <br />eligible for funding. <br />8/15/84 - Crystal Bay public information meeting to discuss <br />septic system problems and solutions. Members of <br />public present indicated a strong interest in <br />construction of sanitary sewers for Crystal Bay. <br />