Request fo opt out of sewer assessment

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� North Farm Road Neighborhoad Sanitary Sewer Improvement Project September 23, 2010 Page 2 The$7,500 cost can be assessed over a 15-year time period at a 6.25% annual interest rate. In addition to the connection cost, there is a SAC fee of$2,100. This SAC fee increases on an annual basis ($2,230 in 2011) and is payment for the additional costs of the future downstream capacity in the Metropolitan Council Sewer System. Also,the estimated property owner costs for the grinder pump station, service connection, and septic tank abandonment can range from $10,000 to $15,000 depending on the length of the service connection required. The City's current flat rate charge for residential sewer is approximately$109.72 per quarter. For properties with a conforming septic system, City policy allows continued use of the septic system as long it remains conforming. Connection to the sewer is required when the system becomes nonconforming, or requires major repairs or expansion. Property owners with conforming septic systems can choose not to be assessed for the project costs at this time, and then pay a lump-sum project connection fee at the time they want to connect to the sewer. The connection fee is based on the project assessment amount updated annually for inflation. The property owner can also be assessed for the project costs and continue to use the septic system as long as it remains conforming. After the Public Hearing is held, an Assessment Hearing will then be held, the project assessments approved, and a contract for project construction this fa11 will be awarded. The City of Orono has a Special Assessment Deferral Program available for property owners 65 years of age or older that meet specified income and assets criteria. Information ott this program is available from the City upon request. Please contact me at 952-249-4601 if you have any questions. Sincerely, �_�� Jessica Loftus Orono City Administrator Attachment