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1 <br />1 <br />Council Minutes <br />Monday August 13, 1990 <br />Work Session <br />Mayor Bisel called the meeting to order at 9:05 A.M. Council <br />members present: Andy Neal, Bill Bohjanen, Sally Kuether. <br />Members absent: Reinert. Staff members present: Randy <br />Schumacher, City Administrator; Dave MacGillivray, Financial <br />Consultant /Springstead; John Miller, City Planner; Darrell <br />Schneider, Engineer /TKDA; Dan Boxrud, Engineer /SEH, Dan <br />Tesch, Assistant to the City Administrator <br />FINANCIAL STATUS AS IT RELATES TO SEWER AND WATER BOND ISSUES <br />Mr. Schumacher began the discussion by reviewing how this <br />issue began. In July, the City Council determined that it <br />needed additional information before a decision could be made <br />regarding utility extensions. The Council directed staff and <br />consultants to examine several areas including housing lot <br />inventory, the present status of subdivision development, and <br />study of area utility rates. <br />Mr. Schumacher, and Mr. MacGillivray outlined a report they <br />had prepared that showed present sewer and water connections <br />broken down by subdivision. This report will be presented to <br />the Council on a monthly basis. <br />Mr. MacGillivray stated that at the present time, the 1987 <br />Temporary Bond Issuance is not bringing in the amount of <br />assessments originally proposed. Revenues used to pay for <br />these bonds come from two major sources; the first being <br />hook -ups, the second being user fees. The City Charter does <br />not allow the city to assess for these improvement projects, <br />therefore the Council may have to review the user fees. When <br />the Council reviewed the user fee in 1988, it was recommended <br />that the fee be raised to $25.00 per quarter. The Council <br />approved a $15.00 quarterly fee, and effective January 1, <br />1989 at $20.00 quarterly fee. Mr. MacGillivray pointed out <br />that two reasons the City is in this position now is that <br />connections that were anticipated have not occurred, and user <br />fees are too low. <br />He added that the City Charter creates a situation of this <br />nature because we can only guess at the number of <br />connections. <br />LOT INVENTORY/ STATUS AND PROJECTIONS FOR THE FUTURE <br />Mr. Miller presented material which outlined building <br />activity to date, projected sewer hook -ups in districts I and <br />II, building lot inventory, and R -1 vs R -1X. It was noted <br />Page -1- <br />