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CITY COUNCIL WORK SESSION <br />Topic Report: Trunk Sewer Policy <br />By: Brian E. Olson, Principal City Engineer <br /> <br />Background: <br /> <br />In the past, the sewer trunk fund has paid for the oversizing and extra depth required for <br />new installations of the sanitary sewer to accommodate future development. It has also <br />been used to help cover the cost of sewer extensions to a proposed subdivision by <br />allowing the Developer to use the trunk fee money that would be generated from his site <br />for initial construction. In an effort to control the potential "leap frogging" of <br />developments and encourage orderly development, the trunk fund money that was to be <br />collected was available for this purpose. Any additional expense above and beyond that <br />amount was to be financed by the Developer. <br /> <br />In general, this policy worked nicely for the sub trunk sewer lines but was not useful <br />when considering the installation of the deep, large diameter trunk lines. In those cases, <br />the City used a combination of Tax Increment Financing, Trunk Fund and Developer <br />moneys. Tax Increment Financing was lost as a potential funding source for the extension <br />of large trunk sewer pipes for residential developments. <br /> <br />On October 8, 2002, the City Council discussed the use of the Sewer Trunk Funds (see <br />attached minutes). There was discussion about developing a policy that would require the <br />Developer to pay for a 11 o f t he costs o f t he initial construction activities for t he trunk <br />facility. The Developer would then be able recover the costs that were incurred over a <br />period of 5 years as new developments were approved that utilized the trunk facilities that <br />were constructed. <br /> <br />Action Statement: <br /> <br />Provide direction to staff for creating a policy so that all Developers are treated the <br />same. <br /> <br />CCWS: 3.18.03 <br /> <br /> <br />