07/25/1969 Council Minutes - Laserfiche WebLink

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21.0 Mr. L'Allier questioned Mr. Springsted on the time element in preparing a bond issue. Mr. Springsted stated this could be an election if they desired, but did not have to be. There are two methods of issuing bonds: 1.) If 20% of the bonds were to be assessed, the Council could have an assessment hearing which would require publishing notice of a public hearing in the paper once each week for two weeks, with the hearing held 10 days from the time the hearing is called. By a 4/5 vote of approval by the Council they could order in improvements, proceed with contracts and then financing. This would take a minimum of 60 days. 2) The Council could issue general oblication revenue bonds. (This is not likely to be the case.) The Council be Resolution could determine that reven- ues from the assessments will be sufficient to pay the debts, if not they will levy taxes. They would then hear from the taxpayers at assessment hearings, so they would be much better off using method no. 1, as a majority of the Villages do. Mr. L'Allier mentioned the fact that most of the land Jandric 'owns' is under contract for deed and held by different villagers and wondered if we had to assess these owners for the main line. Mr. Springsted stated the land is assessed not the person; that a small assessment could be charged and explained to the owner by stating the sewer line is now closer to his property therefore making his property more valuable. To discourage premature platting the Village could require the land owner to pay the rest of his assessment at the time the plat is approved or at the time building permits are granted. Mr. Bohjanen wondered if this assessment was made on a per acre basis if it couldn't be made in three steps with connection charge payable at the time the house is connected. Mr. Springsted thought one of these payments should be at the time the plat is okayed as some plats could remain undeveloped for years. Mr. L'Allier asked if the Village could arrange financing by paying the interest gearly, with the principal to be delayed until later. Mr. Springsted said this could be done by issuing temporary improvement bonds, whereby interest could be paid for three years, with principal delayed that long. Advantages of this would be: 1) I would buy time to evaluate the situation as to how to pay off the principal and to watch the development grow. 2) Some assessments might be pre -paid thus lowering the principal needed to be obtained. 3) It is 'possible' that money would be cheaper = =but not likely. The interest over a three -year period on $400,000 would be about $25,000. This is one -third of our annual budget. The bond issue should include enough money to cover the interest so this wouldn't have to be taken out of the budget. Mr. Springsted advised against going into financing that isn't sufficiently funded where they may have to go into the General Fund for the necessary money. Mr. Springsted declared that it is impossible to have an assessment that is 100% equitable; somebody will pay more or less than others. Jandric should be re- quired to pay his fair share. Mr. L'Allier stated that Jandric preferred a municipal system. Mr. Gotwald should have definite figures on a Municipal system by Monday, July 28 and Mr. L'Allier will call Mr. Springsted with specifics. Mr. Springsted stated the question seemed to be 'can the area support it' and that we are sure we do not want to levy this assessment on the rest of the Village. Mr. Bohjanen thought everyone should have more time to get their facts straight, maybe have a couple more meetings, even if it meant by- passing the developers deadlines. Mr. Springsted agreed and stated that a year from now a week will not make that much difference and could save the Village a lot of future grief.