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LAKE ELMO CITY COUNCIL WORKSHOP APRIL 29, 1992 4 f Filla: Change paragraph 750.060 because it anticipates the first statement would go out on or before March 5th so the year of inception you may have to include a different time that would be for the second and subsequent years. You would probably prorate this fee for the first year. The Council will review the requested information from the City Engineer on Tuesday, May 5th, and then call a public hearing. OLD VILLAGE DRAINAGE DISCUSSION: Filla: We are talking about a storm sewer improvement district which we are creating because then you can levy ad valorem taxes instead of special assessment. This works well, but will not work on the agricultural land because they get a break on taxes. When you calculate what kind of money you expect to get back, you have to take that into consideration. Prew: They are valued at $1000 per acre. Filla: From a law standpoint it is impossible sometimes to show economic benefit on a storm sewer improvement project. If you use a storm sewer improvement district to finance this instead of special assessments, we don't have to prove it. We just notify the county of the cost and spread it across the tax rolls like an ad valorem tax over a number of years you chose to credit. The City has to still discuss how they are going to finance this project; sale of bonds, borrowed reserves, because you will be front ending the money on this project. The whole purpose of going with a storm sewer improvement district is to avoid the pitfalls of 429. Prew: MSA funds will pay 90 percent of the contract right away. 100% for the street. 100% for the storm sewer on the street and 25% of everything down the street. This will leave the City with $80,000. Filla: He will review a case in Shoreview that established assessing 100 percent even if you get MSA funds. If we can't use MSA funds and then assess everything in addition, then we don't want to create a storm sewer improvement district --we would want to use a 429. Williams: I was thinking about using MSA funds and assessing some by 429 and then use a taxing district to finance the rest. Mayor: I thought we would only be assessing for the street and not for storm sewer.