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Mayor & City Council <br />April 9, 1993 <br />Page 3 <br />In 1983, it was noted that the City had an <br />assessment policy for water main whereby 20% of <br />the cost of the improvement was charged to the <br />entire City and 80% was charged to the affected <br />property owners. It was also indicated that this <br />policy would be changing in the near future. It <br />was further suggested that the City should <br />consider staying with the 80/20 formula due to the <br />equity for our residents based on past practice. <br />If we use the 80/20 policy, the cost would be <br />$9,650 per lot and the City's share would be <br />$19,300. <br />Because the water main coming from County Road B2 <br />to the south would also be useful should water <br />main ever be installed on Viking Drive west of <br />Edgerton, one could rationalize that the City pick <br />up the costs associated with this portion of the <br />improvement. (Approximately 200 feet) If done in <br />combination with the 80/20 formula, the cost to <br />residents would be $8,742.25 per lot and the cost <br />to the City would be $26,562. <br />* If we assumed double footage, the cost to the <br />property owners would be $6,031.25 per lot and the <br />cost to the City would be $48,250. (50/50 basis) <br />Other single frontage water main exists which will impact <br />the City from a cost standpoint in the future depending on <br />how this decision is handled. (See letter from Mike Lynch <br />dated April 9, 1993.) I am not willing to recommend any <br />City participation through a tax levy at this time. <br />Therefore, we would have to utilize the Water and Sewer <br />Capital Replacement Account to cover the City's share of <br />any project costs. Tax levies could be an option by the <br />year 2000. <br />At this time, I would be comfortable recommending the 80/20 <br />formula with the City picking up the cost of the portion of <br />the main from County Road B2 to the south due to past City <br />policy (pre -84) and the potential for the benefit to the <br />system. This would require the property owners to pay <br />$8,742.25 per lot and the City's share would be $26,562. <br />Our source of funding would be the City's Water and Sewer <br />Capital Reserve Account which is adequately funded to <br />handle this project in addition to our share of the <br />Edgerton water main. <br />Page 3 <br />