Agenda - Council - 05/13/2003 - Laserfiche WebLink

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corridor adjacent to the railroad). These additional costs will be the responsibility of Oak Terrace. Such costs may include but shall not be limited to abandonment of the existing wells and septic tanks (outside the corridor adjacent to the railroad), and cesspools; connection of sewer laterals to the western units and the units along Highway 10; and any fees associated with the acquisition of easement rights necessary to expand the stormwater ponding system. In addition to the total project costs, two charges which.need to be paid upon 'connection of each unit to the sanitary sewer and water systems are the sewer availability charge (SAC) and water availability charge (WAC), respectively. The SAC charge is used to pay the Metropolitan Council for the capacity of the wastewater treatment plants and major transmission facilities. The WAC charge is similarly used to offset the cost of the additional capacity in the City's wells and elevated storage strUctures. The 2003 charge per WAC and SAC are $1350 and $1465 respectively for a total of $2815 per unit. Finally, each user of the system is responsible for a portion of the costs associated with oversized sewers and watermains' which are not required by any single development, but which are necessary to assure the overall function of the entire system. These charges are referred to as trunk costs. The current trunk charges for 2003 are $1285 for water and $577 for sanitary sewer for a total of $1862 per unit. Financin~ The previous section outlined the costs associated with this project. This section will focus on the methods through which this project will be financed. This study, anticipated that a total of 93 units connecting to the sanitary sewer and water system. This can be broken down into 89 trial units, 1 single-family rental unit, and the park office which is the equivalent of 0.5 unit, and a laundry which is the equivalent of 2.5 units. The WAC and SAC charges are due and payable upon connection to the system. Therefore, assuming all units are connected at the time of project completion or shortly thereafter a lump sum payment of $261,795 would be due to the City. The remaining costs may be financed over a ten-year period with interest. A summary of the financing is as follows. Cost Component Cost Project Costt 190,221 Trunk Cost2 173,166 Total 363,387 The total cost of $363,387 would be collected over a ten year period with interest. With interest estimated at 6%, the annual cost to Oak Terrace would be $49,384 on $531 per unit. The actual interest rate will be two percent over the prime rate at the time of the assessment hearing. Total project cost less amount attributable to extension to project site -157-