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TO: Walter R. Benson, City Administrator <br />Tom Kuehn, Finance Director <br />John R. Gerhardson, Public Works Coordinator <br />Glenn R. Cook, City Engineer <br />Bruce D. Malkerson, City Attorney <br />FROM: Alan P. Olson <br />DATE: September 29, 1983 <br />SUBJECT: Collection of Sewer and Water "Unit" Charges and Assessment <br />Policy <br />Ea-h time a public improvement project is done, and each time late <br />or deferred "units" are determined and collected with new dev4lopments, <br />the question is again raised about fairness and adequate return on <br />investment for the City. <br />The 82-1 trunk sewer project forced the <br />that includes "deferred" unit charges to <br />permits, just like the old 63-1 "plant" <br />from the beginning of the 82 project was <br />would increase in dollar amount as years <br />inflation and for the City's expense of <br />paid for the total project including the <br />Z recommend two actions: <br />issue because of the formula <br />be collected with future <br />charge of $225. The intention <br />that these deferred units <br />go by to compensate for <br />carrying the bond issue that <br />deferred amount. <br />1. Consider and adopt an ordinance similar to that attached. This <br />Expands and clarifies the existing "late connection" section of <br />both water and sewer chapters of the code, and it sets up the <br />graduated tables of increasing charges depending upon which year <br />the connection is made. <br />The deferred sewer units [25.854(f)] arc the units intended <br />to be collected with each new building permit in the affected <br />areas. A map has been prepared which shows these areas <br />(see Dorothy Hallin). <br />The availability units (sewer 25.854(g) and water 25A.214(f)) are <br />units that should have been assessed throughout the area, but <br />which might be added by either 1) extention of new laterals into <br />undeveloped areas such as the Tonka property in Navarre or the <br />hill by Saga Hill; or 2) new subdivision of Property previously <br />assessed for fewer units than now approved; or 3) expansion of <br />existing commercial, industrial or multi -family residential <br />properties where the expanded use is for more units than <br />originally assessed. <br />The tables are art up with suggested dollar increases ye.ir by <br />year. They should be reviewed by the Finance Department and <br />adjusted as necessary before adoption. <br />