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Q78 <br />COUNCIL MEETING NOVEMBER 28, 1988 <br />Mr. Saunders, 6917 Lakeview asked what financing methods <br />will be used for this improvement. Mr. Stahlberg explained <br />that MSA funds will be used for the construction of 2nd <br />Avenue and assessments from the green areas will be used for <br />financing the utility improvement. Mr. Saunders noted that <br />if the contractors have a hard time selling their new <br />houses, the assessments may come in slowly. Mr. Stahlberg <br />explained the procedure for the payment of assessments. He <br />noted that the users of the utility improvement will be <br />paying for the improvement and when someone in the future <br />decides to hook up they will be paying the going rate at the <br />time they hook up. <br />Mr. Rasmussen asked how the improvement will be initially <br />financed. Mr. Stahlberg explained the financing will be by <br />bonding. Mr. Rasmussen asked what would happen if the <br />economy goes bad and the contractors have a hard time <br />selling their lots. Mr. Stahlberg explained the developers <br />letter of credit would be used for bond payments. He also <br />noted that the City has a firm committment from the prison <br />and they pay their assessments up front. <br />Mr. Knief asked if MSA funds are covered under the Charter <br />if less that 100% of the property owners petition for the <br />improvement. Mr. Schumacher explained the MSA funds are <br />road funds used for construction only and not part of the <br />City General Funds. <br />Mrs. Blaylock asked if the Council is still talking about <br />constructing a road or just utilities. Mayor Benson said <br />the Council has not made this decision yet. <br />Mr. Rasmussen told the Council that no one on Rustic Lane <br />wants to sell their property. <br />Mayor Benson asked for direction from the Council. Mr. <br />Bohjanen asked for clarification of the utility line. Mr. <br />Stahlberg explained the easement would be on the east side <br />of the tree line or between the tree line and Lake Drive. <br />There was further discussion on where the utility lines <br />should be laid. Mr. Reinert -asked why 2nd Avenue should be <br />improved at this time. Mr. Stahlberg explained it is in the <br />MSA street plan for this time. Mr. Reinert noted that the <br />City could get along without the street and just construct <br />the sewer and water lines for now. <br />Mr. Reinert said he has listened to many discussions and <br />noted that the City has a good commitment on the north end <br />PAGE 5 <br />