Agenda - Council - 06/08/1999 - Laserfiche WebLink

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Project Financing This project is anticipated to be financed by special assessments under the state guidelines provided by MS 429. Project construction costs will be segregated into two classifications, trunk charges and lateral benefit charges. Trunk charges include pipe over-sizing from that necessary to service the parcel being assessed. In this case, trunk charges include the over-sizing of the watermain from 8 to 12 inches and the total cost of watermain that lies beyond the benefited parcels. This cost is estimated to be $61,490 with detailed costs outlined in Appendix B. The lateral benefits consist of the cost of minimum-size sewer and water mains to service benefited parcels. The total lateral costs are estimated to be $83,694. The lateral benefit charge is $7,278, which was determined by dividing the lateral project cost by the benefited 11.5 acres. Trunk charges will be funded from a trunk fund into which each' benefited parcel is assessed a uniform unit charge of $9,324 per acre ($6,435 per acre for water and $2,889 per acre for sewer). The lateral benefits are determined by taking the total lateral costs and dividing by the total number of acres in the benefited parcels. Below is a listing of the five properties that have been determined to be benefited by this project. These properties are illustrated in Exhibit .1 and are only properties located on the west side of C.R. #57. The functional classification of the highway will require separate sewer and water utilities to service properties on the east side of the County road. The parcel south of Parcel A is serviced by existing sewer and water mains. The parcel north of Parcel E is determined to receive no benefit since there is only 250 feet of non-wetland frontage for this 115-acre parcel. This parcel will very likely be further subdivided to accommodate development, and it will be more appropriate to collect utility contributions at the time of development. A summary of assessment costs is presented in the table below for each parcel benefited. A previous interest survey has indicated that parcels B and C are not ready to connect to municipal utilities at this time, and it is therefore proposed that the assessments on these two parcels be deferred until such time as they elect to connect or the property is sold. It is proposed that interest be charged on all assessments, including those deferred, from the time the assessment resolution is passed. The assessment would be payable over a five-year period at an estimated rate of 7.5%. DISTRIBUTION OF PROJECT COSTS Parcel .PIN A B C D E 27-32-25-41-0004 27-32-25-41-0005 27-32-25-41-0006 27-32-25-41-0003 27-32~25-41-0002 Owner Area Trunk Lateral Total Charge Charge Assess. MPCA 2.02 I8,834 14,701 33,535 Champlin Towing 2.02 18,834 14,701 33,535 Koenig Insulation 1.83 17,063 13,318 30,381 Waltek 4.31 40,186 31,368 71,554 MPCA 1.32 12,308 9,606 21,914 TOTALS: 11.50 107,225 83,694 190,919 Annual Cost 8,290 8,290 7,510 17,688 5,417