Agenda - Council - 04/23/1996 - Laserfiche WebLink

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I I I I I I ,I I I I I I I I I CASE # REVIEW COSTS ASSOCIATED WITH WATER AND SEWER EXTENSIONS; RAMSEY ELEMENTARY SCHOOL EXPANSION By: Jessie Hart, Finance Officer Background: City Improvement Project g95-13, which is the extension of water and sewer to Ramsey Elementary School and several projects [Haubrich, Fox Knoll, Juskiewicz and Green Subdivisions] which were additions on the original project, are nearing completion. The adopted Schedule of Rates, Fees and Charges details various fees that are charged as a part of sewer and wator_ extension programs. These charges include water and sewer trunk charges, lateral benefit charges, and connection charges [WAC and SAC handling]. All of these charges are collected and maintained by the City of Ramsey to either offset project costs or are reserved for further expansion of the system, including wells, towers and lift stations. The total estimated project cost is $806,133, and is to be funded through collection of trunk and lateral charges from Ramsey Elementary School, Haubrich Addition, Fox Knoll 1st and 2nd Additions, Juskiewicz Addition and Green Addition. The charge to Ramsey Elementary School was based on a e~mmercial acreage charge and the others on a residential unit charge. It had been anticipated that the balance of the project will be financed through existing WAC/SAC and trunk funds. Ramsey Elementary was billed for trunk and connection charges in November 1995, for a total amount of $560,361, of which they have p~d $330,000. The payment was applied first to connection charges [$174,375 for WAC/SAC/SAC Handling] and then prorated to the trunk charges, leaving, a balance of $230,361 for the remaining trunk charges. Ramsey Elementary is contending that the amount they are being charged for the trunk costs is too high. They have requested consideration under the residential fee structure which would save the District but cost the City approximately $175,000. An analysis of the project follows: Total Esfixnated Project Cost Contributed Trunk Charges: ~Rarnsey Elementary School Haubrich Addition FOx Knoll 1 st and 2nd Additions Juskiewicz and Green Additions City Trun. k Fund Credits for Over Sizing $ 806,133 (385,986) (9,234) (105,757) (15,390) 89,755 Net City Contribution $ 379,52I As indicated above, the City of Ramsey is already contributing in excess of half of the total project cost through con~butions from trunk funds for over sizing and for completion of the project. This deficit will be recovered in future Irunk charges and access fee transfers. However, the City will be carrying the deficit during the interim. As is shown above, Ramsey Elementary has already been billed, and has paid for, the charges for WAC, SAC and SAC handling fees which amounted to $174,375 [of which $63,750 of SAC was transmitted to MCES and not available for City use]. The other subdivisions will also be charged the WAC and the SAC handling fee which will be approximately $128,520 [does not include the