12-14-1983 Council Agenda - Laserfiche WebLink

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To the Honorable Mayor and Members of the City Council City of Little Canada Page 2 November 21, 1983 The trunk facilities are the remaining parts of the Water System. These would include the water tower; booster station; and, over -sized watermains. These costs have generally been financed by general property taxes associated with the $2,995,000 Water Improvement Bonds of 1978. A small part of these costs were assessed at the rate of $12.98 per lineal foot of property. LATERAL CHARGES: The proposed formula calculates lateral charges based upon the special assess- ments levied against property within the City of Little Canada. The only vari- ance to this factor is to use an assessment rate equal to 100% of construction costs rather than 80 %. According to our review, non- resident property connecting to the lateral system of the City should be charged a lateral fee based upon the following factors: SANITARY SEWER SYSTEM: 1. Lineal Foot Charge of $22.00 /front foot WATER SYSTEM: 1. Lineal Foot Charge of $30.00 /front foot The above lateral charges result in non - resident property paying a one -time charge equal to what City property would be assessed and /or taxed over the term of the financing bond issue, excluding assessment interest. Accordingly, these charges should be paid in cash without a present value discount factor. TRUNK CHARGES: The cost of the City's trunk systems is primarily financed by general property taxes with a small portion being financed by special assessments. Accordingly, two types of fees must be computed - trunk assessment fee and trunk tax levy fee. The trunk assessment fee can be calculated for non - resident property in the same manner as the City assesses property within its boundaries, as follows: SANITARY SEWER SYSTEM: 1. Lineal Foot Factor - None 2. Unit Charge of $260.00 /SAC Unit WATER SYSTEM: 1. Lineal Foot Factor of $12.98 /front foot (based upon lineal foot trunk assessment for the $2,995,000 Bonds of 1978) 2. Unit Charge of $250.00 /SAC Unit The above trunk assessment fee is only a part (the smaller part) of the total trunk charge. The major financing source for the trunk system costs has been tax levies rather than special assessments. When these systems were built, the City made policy decisions to finance these costs using heavy tax levies rather than heavy assessments. These policy decisions are the primary factor for the 2G