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April 24, 1978 Page 7 <br />implementing a system. He added that Staff will be recommending and pushing very <br />strongly for a system. <br />Mr. Beim asked if it was possible that a developer would pay an assessment and then <br />a system not be put in. Administrator Achen replied that a system would be put in <br />in the future. <br />Councilmember Baumgartner questioned if Mr. Beim would be required to take care of <br />drainage on his property, who would be responsible for that upstream. Administrator <br />Achen replied that by law he would be required to provide a pipe large enough to take <br />care of all runoff. <br />Mr. Thornton stated that he did not feel the City could justify assessing just <br />developers. Administrator Achen replied that it was the same question when putting <br />in any type of improvements, and that the Council has a choice of saying no more <br />development or else providing the required drainage facilities. <br />Bob Eigenheer stated that he could not see how the City could justify charging 30% <br />or so of the land not developed to pay for the whole City. Administrator Achen <br />replied that the gross amount of revenue that could be accumulated through the charges <br />would not come close to financing the cost of a project and that the Council would <br />have to make a decision on who to charge and decide who would be benefitted. <br />Mayor Pickar stated that he could appreciate their concern but that he felt the for- <br />mula was fair and equitable. <br />Mr. McCarty asked what the average price was of the homes Mr. Eigenheer built and <br />if he thought an extra $500 assessment would make them unsaleable. Mr. Eigenheer <br />replied that it all adds up. <br />Mr. Loeding pointed out that under Project 1978 -1 each home owner in Mounds View was <br />expected to pay up to $2,000 and that many would have received no benefit. <br />Keith Harstad stated that it was fundamental that water flows downhill and he felt <br />the people at the top of the hill should pay as much as those at the bottcni. He <br />added that everyone who benefits should pay for it. <br />Administrator Achen stated that the intent of the ordinance was to require people <br />who were developing from here on in to pay now, rather than later and that they would <br />not be able to extend the payment for twenty years, as the present residents could. <br />He added that this would allow the City to accumulate cash up front. <br />Councilmember Baumgartner stated that he did not feel it would be a good situation <br />to require a developer to put his money in the City fund, where he could not collect <br />interest on it, whereas the City could. <br />Bill Doty asked if the interest would be credited to the property owner. Administrator <br />Achen replied that the intent of the ordinance would be to allow the use of the money <br />for a storm sewer development in the City, and that the money would be put in an <br />escrow account. <br />David Notaro asked if developers would be allowed to come along and tie into the <br />system once the project is in and complete. Administrator Achen replied that <br />undeveloped property would be assessed at the rate of its useage, regardless if <br />there are structures on it or not. <br />