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<br />. <br /> <br />. <br /> <br />. <br /> <br />time the assessment is deferred. The percentage discount ranges from 60% <br />for immediate acceptance of the assessment to 0% for ten year deferment. <br />It is anticipated that the City will recover it's cost in offering these <br />discounts through the tax increment resulting from the economic growth <br />because of the sewer and water improvements. Option B is where the city <br />would install the improvements and connections to the systems would not be <br />assessed until the property owner chooses to hook up to the system; the <br />property owner can choose to never hook up. <br /> <br />Commissioner Vevea stated that there was concern expressed that future <br />Councils could arbitrarily claim on-site system failure and force hook-up <br />to municipal utilities. <br /> <br />Chairman Greenberg and Ms. Norris stated that the only way any Council <br />could force hook-up would be for on-site system failure that requires <br />rebuilding or replacement. As long as the existing system is functioning~ <br />the property owner would not be forced to hook up and there would be no <br />assessment. <br /> <br />Chairman Greenberg stated that Council approved both Options A and B as <br />proposed methods of financing sewer and water improvements. <br /> <br />Commissioner Vevea stated that there was also concern expressed regarding <br />the interest ticket running during the period of assessment deferment. <br /> <br />Chairman Greenberg stated that there is no interest ticket running during <br />deferment; the City is anticipating that the incoming tax increment will be <br />sufficient to cover the expense of not charging the property owner for <br />accruing interest. <br /> <br />Mr. Hartley stated that Council chose to offer both Options A and B to <br />property owners; the mechanics of the options are such that the property <br />owner will have to decide which option he prefers near the beginning of the <br />project. A property owner can defer for an indefinite amount of time with <br />Option B but when hook-up occurs~ the connection charge assessed will be at <br />the current market rate at that time. The methodoly for determining that <br />current market rate is modifying the original assessment cost by the <br />construction cost index. With Option A the standard assessment rate <br />doesn't change; only the amount of discount changes based on length of <br />deferment. Mr. Hartley stated that Council can take no action on the <br />project until December 22~ at which time the 60 day waiting period expires; <br />Council will not be meeting Christmas week and is expected to take action <br />in early January. <br /> <br />Mr. Greenberg directed that at the next EDC meeting~ the commission will <br />prepare a recommendation to Council regarding the sewer and water project. <br />A special meeting will be called if the City Council decides to meet prior <br />to the next regular EDC meeting. <br /> <br />Case #4: Information Items: <br /> <br />The Commission noted information items contained in the agenda and <br />requested that Ms. Norris find out if the County approved Ramsey's request <br />EDC/December 10~ 1986 <br /> <br />Page 5 of 6 <br />