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Table 2 utilizes a 20 year amortization, which was identified at the April 25th meeting as the preferred time frame.
<br />TABLE 2
<br />lBased on 4,900 households at 300 per household per quarter
<br />2 Carry costs to be recovered over 3 years at 6%
<br />Based on the above calculations, if A priority arterial street lights are installed, and 4,900 residential properties
<br />are billed directly, the annual cost to each property would be $2.73, or approximately $.69 per quarter (300 of
<br />which _for billing costs). This is for a total of only 51 lights. If all levels are installed, a total number of 157
<br />lights, the annual cost to each property would be $6.65, or approximately $1.67 per quarter. As the City grows,
<br />so will the number of residential properties and the need for additional priority arterial street lights. It is
<br />anticipated that the quarterly billing, in the amounts stated above, would continue to be sufficient to recover the
<br />costs of installation. It may be necessary to adjust this rate periodically if there is a significant increase in costs
<br />for installation and/or operation and maintenance.
<br />Recommendation:
<br />Staff recommends approval of the installation of all levels of priority lights with billings to residential properties
<br />in the amount of $1.67 per quarter. Billings would commence upon the completion of the installations and would
<br />be in addition to the quarterly recycling charge. The total quarterly bill, for residential properties without
<br />municipal water and sewer, would be $4.72. Each line item would continue to be shown separately on the
<br />billings.
<br />Committee Action:
<br />Based on discussion - order installation of all levels of priority street lights and establish billing rate of $1.67 per
<br />quarter to all effected properties, with billing commencing the first full quarter after completion of the
<br />installations.
<br />Reviewed By:
<br />City Administrator
<br />Finance Director
<br />City Engineer
<br />FC: 05/27195
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<br />Total
<br />Installation
<br />Total
<br />Annual
<br />Annual Cost
<br />Annual
<br />Carrying
<br />Billable
<br />Billing
<br />Priority
<br />Amort, 20 Yrs.
<br />BillinzCost
<br />oS S
<br />Costs
<br />Households
<br />C=
<br />Existing -
<br />2,520
<br />5,880
<br />0
<br />8,400
<br />4,900
<br />1.50
<br />A
<br />7,316
<br />5,880
<br />147
<br />13,343
<br />4,900
<br />2.73
<br />B
<br />10,621
<br />5,880
<br />213
<br />16,714
<br />4,900
<br />3.42
<br />C
<br />13,711
<br />5,880
<br />275
<br />19,866
<br />4,900
<br />4.06
<br />D
<br />26,145
<br />5
<br />523
<br />32,548
<br />4,900
<br />6.65
<br />lBased on 4,900 households at 300 per household per quarter
<br />2 Carry costs to be recovered over 3 years at 6%
<br />Based on the above calculations, if A priority arterial street lights are installed, and 4,900 residential properties
<br />are billed directly, the annual cost to each property would be $2.73, or approximately $.69 per quarter (300 of
<br />which _for billing costs). This is for a total of only 51 lights. If all levels are installed, a total number of 157
<br />lights, the annual cost to each property would be $6.65, or approximately $1.67 per quarter. As the City grows,
<br />so will the number of residential properties and the need for additional priority arterial street lights. It is
<br />anticipated that the quarterly billing, in the amounts stated above, would continue to be sufficient to recover the
<br />costs of installation. It may be necessary to adjust this rate periodically if there is a significant increase in costs
<br />for installation and/or operation and maintenance.
<br />Recommendation:
<br />Staff recommends approval of the installation of all levels of priority lights with billings to residential properties
<br />in the amount of $1.67 per quarter. Billings would commence upon the completion of the installations and would
<br />be in addition to the quarterly recycling charge. The total quarterly bill, for residential properties without
<br />municipal water and sewer, would be $4.72. Each line item would continue to be shown separately on the
<br />billings.
<br />Committee Action:
<br />Based on discussion - order installation of all levels of priority street lights and establish billing rate of $1.67 per
<br />quarter to all effected properties, with billing commencing the first full quarter after completion of the
<br />installations.
<br />Reviewed By:
<br />City Administrator
<br />Finance Director
<br />City Engineer
<br />FC: 05/27195
<br />J
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<br />C I
<br />i
<br />k
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