04/28/1997 Council Minutes - Laserfiche WebLink

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COUNCIL MINUTES APRIL 28, 1997 including the public hearing and bonding. He advised a 30% charge is standard against developments. Council Member Lyden inquired regarding the balance of the Area and Unit fund. It was noted the balance is about $5 million. Mr. Powell explained this fund was established for and used to cover costs for deeper sanitary sewers and other issues which benefit a wider or larger area. Mayor Landers opened the public hearing at 7:17 P.M. Tom Bilder, 7382 Sunset Road, asked what will be done for existing homes which recently upgraded their septic system. He reported he just upgraded his septic system at a cost of $7,000. Mr. Ahrens explained that properties with new systems which are operating properly would not be assessed until connection is made to the utilities. Homes with new systems may not need to connect for 20 to 30 years. Mayor Landers clarified that if the septic system does not ever fail, the property owner will not ever be required to connect. Lynn Schaar, 17 Marvy Street, stated she just purchased her house in May and as part of the purchase, was required to bring the septic system up to code which cost $9,000 plus $1,100 to upgrade the well. She reported they did call the City Hall about the timeline for extending utilities into this area and was assured by City staff that utilities were voted down for this area. Ms. Schaar stated she does not want utilities extended to her property and expressed concern that the Charter could be changed which would require connection. Mr. Ahrens explained that staff was contacted by a property owner experiencing septic problems and rebuilding the septic system. This made staff aware of potential problems in this area with other properties. So, staff investigated the alternative of extending sewer and water into this area. He commented on the high expense of installing a mound system, continuing inspection fees, and permits. Mayor Landers advised the Council is not able to change the Charter, only a majority of the registered voters in Lino Lakes can do so. Mr. Bilder asked what happens to the assessment fee for those properties that are not required to connect. Mr. Powell explained typically the assessments are based on lots served by the improvements and connecting right away. He noted the two components to the assessment, lateral assessments and area and unit charge, and advised the area and unit charge will increase each year based on the construction cost index. Mr. Powell stated if one-half of the property owners will not connect, the Council may decide it is not financially feasible to proceed and carry that cost. Steve Nyhus, 4 Marvy Street, inquired regarding how interest is calculated on the assessments. Mr. Ahrens explained it is calculated similar to a loan and would be certified to Anoka County PAGE 4