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Deputy City Administrator Gladhill provided details on the three development areas that are in the <br />works or could come forward in the future along with potential costs for sewer and water <br />extensions. <br /> <br />Finance Director Lund commented that sewer and water funds could be loaned to respective needs <br />as well and therefore would not have to only be used on sewer and water projects. <br /> <br />Councilmember Musgrove asked if any of the mentioned development projects would quality for <br />TIF funds. <br /> <br />Deputy City Administrator Gladhill commented that as it stands today, no. <br /> <br />Councilmember Musgrove asked for clarity on infrastructure costs. <br /> <br />Deputy City Administrator Gladhill commented that trunk sewer and water costs are the <br />responsibility of the City and can be recouped through development costs. He commented that the <br />City should have cash on hand to complete those projects so that the costs do not have to be bonded <br />for. <br /> <br />Councilmember Musgrove referenced the CARES Act funds and whether water needs could be <br />funded through those funds. <br /> <br />Finance Director Lund commented that the American Rescue Plan Funds can be used for water <br />treatment plants and sewer and water connections. She stated that she does have those funds slated <br />for the Water Treatment Plant but noted that only covers a portion of the cost. She explained that <br />bonding for a portion of the Water Treatment Plant project at the lower rates today, would provide <br />the City with the ability to have additional cash on hand for future projects. <br /> <br />Councilmember Riley commented that all the scenarios show the American Rescue Plan Funds <br />accounted for within the Water Treatment Plant funding. <br /> <br />Mayor Kuzma asked if there are additional funds the City will need to contribute towards the <br />Highway 10 project. <br /> <br />Finance Director Lund commented that currently the City has $2,000,000 allocated from MSA and <br />$2,000,000 allocated from the PIR fund. She stated that bonding today would preserve additional <br />opportunities for financing in the future. <br /> <br />Councilmember Riley asked the level of debt the enterprise fund could service without increases <br />to the water fees. <br /> <br />Finance Director Lund replied that the City has enough in the fund to cover the entire cost without <br />increasing the water fees but that would drain the balance down to a low point which perhaps could <br />not cover a future project. <br /> <br />City Council Work Session / June 22, 2021 <br />Page 2 of 10 <br /> <br />