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Hr. Darryl ~ults inquired if property chan~es hands under Option A, would the <br />new owner be entitled to continue deferment of assessments. <br /> <br />Hr, Rartley replied that the new owne~ could continue the deferments. <br /> <br />Nary Eggum inquired if the city's clai~ for connection charge can be released <br />if a developer were selling a lot that is part of a larger subdivision and paid <br />the proportionate cost of connection for that lot in relation to the connection <br />cost for the entire subdivision. <br /> <br />Goodrich stated that he thinks State statute would allow that release. <br /> <br />Hr. Bartley stated that with Option A, the current average cost for sewer and <br />water would be ~3002/acre. I/ith Option B, the average cost for sewer and water <br />per acre would be $?,506 at today's rate. <br /> <br />Bernie Vevea inquired if the trunk line coming dovn Industrial Blvd. viii serve <br />properties further west and the residential area to the north. If so, why <br />aren't those areas being assessed? <br /> <br />Hr. liartley replied that it would serve those areas also and they viii be <br />assessed. The standard trunk assessment for water today is $885.87 which <br />includes trunk, oversizing of trunk, water tower and well systems. This figure <br />was arrived at by calculating the cost of a system to serve that entire area <br />and dividing that cost by the number of Residential Equivalent Connections <br />(REC's) in that area. <br /> <br />Bernie Yevea asked when the assessments from those areas will be coming in to <br />help put in the project now. <br /> <br />Hr. Hartley stated that there is tax increment money available to the tit7 <br />right nov which is being derived from a tax increment district. Those incoming <br />revenues make it possible to extend the trunk. Properties proposed to be <br />assessed at this t/me are not paying the full cost of the trunk because it is <br />oversized to serve other areas and at the time those areas use the utilities <br />they will pay their share based on the construction cost index. <br /> <br />Steve Gorecki inquired why the water trunk assessment is so high. 1.I million <br />is being assessed for water trunk and the construction cost is $41,000; what <br />is the other $600,000 for? <br /> <br />Mr. Hartley replied that the water trunk line is such a small portion of the <br />entire water system. The other ~600,000 is for water towers, wells and <br />oversizing of mains. <br /> <br />Citizen - Inquired where the City is getting the funds to pay up to 60~ of the <br />standard assessments in Option I. <br /> <br />Hr. Hartley replied that those funds are tax increment revenues the city is <br />receiving. <br /> <br />Citizen- Inquired if that means the money is not coming from the people of <br />Rams ey · <br /> Sp Council/12-2-86 <br /> <br />Page 6 of 13 <br /> <br /> <br />