Laserfiche WebLink
040 <br />COUNCIL WORK SESSION MAY 9, 1988 <br />Mayor Benson asked if Mr. Stahlberg is looking at sewer and <br />water not getting to the proposed shopping center for a <br />couple of years. Mr. Stahlberg said financing may cause the <br />project to be completed in stages and this may take some <br />time. <br />THE FINANCIAL CONCERNS OF THE BOND CONSULTANT <br />Mr. MacGillivray said he is looking at a bond issue for the <br />construction of the extension of the west central facilites <br />in the same manner as the 1987 bond issue. That issue did <br />not involve special assessments as the primary funding <br />source. The payment of the bonds will be by area fees, <br />connection fees and some normal assessments. A problem he <br />sees is that it is not mandatory for current residents to <br />hook up and he will be guessing as to how any current <br />residents will hook up. He noted that if there are <br />insufficient funds to make the bond payments, a city wide <br />levy will be needed to pay the bonds. <br />Mr. MacGillivray referred to his letter of May 6, 1988 <br />especially Table 3, Financing Plan Discussion Points. He <br />pointed out the need for the City to impose restrictions so <br />that development will occur in the service area and also <br />provide an incentive for current residents to connect to the <br />services. <br />Mr. Stahlberg referred to the eighty acres Mr. Paul Montain <br />owns next to Reshanau Lake Estates South. He explained a <br />gravity sewer line is needed to service the area and this <br />facility will require the help of the rest of the area for <br />financing. <br />There was discussion regarding the Sunrise Meadows area and <br />whether the west central utility project should be <br />completed in stages. Mr. MacGillivray noted that he is <br />looking at the prison to help provide the initial financing <br />for this project making it difficult to develop in stages. <br />He noted that he needs a better feeling for the total cost <br />of the project and the expected number of building permits <br />that will be generated by the project. He will have more <br />information for the Council when he is provided with these <br />details. There was discussion on the cost of utilities for <br />current lot owners. Mr. Stahlberg has established these <br />costs. Mr. Reinert noted that the residents in Ulmer's <br />subdivision are looking at a potential assessment of $16,000 <br />to $20,000 and asked if the City could justify that amount <br />of benefit to each land owner. Mr. Stahlberg explained that <br />PAGE 3 <br />