1992.02.03 CC Minutes - Laserfiche WebLink

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City Council meeting of February 3, 1992 Page 2 Miron made motion, Brunctte seconded, that Mr. James LeMoine pay the $65.00 administrative costs to the City for legal and recording fees. All aye. Motion Carried. FINANCING OPTIONS FOR WATER SYSTEM IMPROVEMENTS As per Council direction, the City staff completed its research with regard to the development of options for financing the proposed Hater system improvements discussed in December, 1991. Following page two of the report is Exhibit A, which reflects the tax levy necessary to fund the three options being presented. The first column reflects the ad valorem tax levy necessary to fund the full cost of the water system improvements over a 25 -year period. The second column reflects the tax levy necessary to fund the system improvements, if the City Council were to implement a Residential Equivalency Charge (REC) to reduce the general tax levy. Column three reflects the tax levy necessary to fund the improvements, if the Council were to implement both a REC, as well as a 10 water -rate increase, effective in 1992. The figures, provided by the Finance Director, are based on the cost estimates provided by the City Engineer, with the assumption that the City will utilize approximately $250,000 in rash reserves to reduce the principal debt. The details of a bond sale, and capitalization schedule, can be found on page two of the report. The previously mentioned options are the most realistic for consideration at this time; however, the City Council may also want to consider area -wide assessments, or the use of tax -increment financing to further reduce the anticipated tax levy reflected on Exhibit A. City Administrator, Ken Huber, and Finance Director, Ron Otkin, reviewed the different options available to the City to finance this project. Regardless of the outcome of this project, the Council felt it important that the City charge for all new hookups to the City water system. At this time, the City charges for hookup to the City sewer only. Miron made motion, Brunotte seconded, directing the City staff to prepare a draft resolution that would establish a Water Availability Charge (WAC) for hooking up to the City's water system. All aye. Motion Carried. Because of the volume of information provided, the Council requested additional time to review the proposals. COUnuilr%an Miron also suggested the Council get citizen input regarding this matter. Barnes made motion, Stoitzman seconded, to .:able discussion of this matter until the City Council meeting of February 18, 1592, at which tine a public hearing will be held to obtain citizen input. All aye. Motion Ca -Tied. F=inance Director, Ron Otkin, left the meeting at •phis time. REZONING REQUEST (DAUBENSPECK) Ron and Pauline Daubenspecl% of 3687 140th St., Hugo, Minnesota have made application to the City of Hugo to rezone a 5.6 acre tract of land from