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CASE <br /> <br />REVIEW COSTS ASSOCIATED WITH WATER AND SEWER EXTENSIONS; <br />RAMSEY ELEMENTARY SCHOOL EXPANSION <br /> By: Jessie Hart, Finance Officer <br /> <br />Background: <br /> <br />City Improvement Project //95-13, which is the extension of water and sewer to Ramsey <br />Elementary School and several projects [Haubrich, Fox Knoll, Juskiewicz and Green <br />Subdivisions] which were additions on the original project, are nearing completion. <br /> <br />The adopted Schedule of Rates, Fees and Charges details various fees that are charged as a part of <br />sewer and water extension programs. These charges include water and sewer trunk charges, <br />lateral benefit charges, and connection charges [WAC and SAC handling]. All of these charges are <br />collected and maintained by the City of Ramsey to either offset project costs or are reserved for <br />further expansion of the system, including wells, towers and lift stations. <br /> <br />The total estimated project cost is $806,133, and is to be funded through collection of trunk and <br />lateral charges from Ramsey Elementary School, Haubrich Addition, Fox Knoll 1st and 2nd <br />Additions, Juskiewicz Addition and Green Addition. The charge to Ramsey Elementary School <br />was based on a commercial acreage charge and the others on a residential unit charge. It had been <br />anticipated that the balance of the project will be financed through existing WAC/SAC and trunk <br />funds. <br /> <br />Ramsey Elementary was billed for trunk and connection charges in November 1995, for a total <br />amount of $560,361, of which they have paid $330,000. The payment was applied f'n'st to <br />connection charges [$174,375 for WAC/SAC/SAC Handling] and then prorated to the trunk <br />charges, leaving a balance of $230,361 for the remaining trunk charges. Ramsey Elementary is <br />contending that the amount they are being charged for the trunk costs is too high. They have <br />requested consideration under the residential fee structure which would save the District but cost <br />the City approximately $175,000. An analysis of the project follows: <br /> <br />Total Estimated Project Cost <br />Contributed Trunk Charges: <br /> Ramsey Elementary School <br /> Haubrich Addition <br /> Fox Knoll 1st and 2nd Additions <br />Juskiewicz and Green Additions <br />City Trunk Fund Credits for Over Sizing <br /> <br />$ 806,133 <br /> <br />(385,986) <br />(9,234) <br />(105,757) <br />(15,390) <br /> 89,755 <br /> <br />Net City Contribution <br /> <br />$ 379,521 <br /> <br />As indicated above, the City of Ramsey is already contributing in excess of half of the total project <br />cost through contributions from trunk funds for over sizing and for completion of the project. This <br />deficit will be recovered in future trunk charges and access fee transfers. However, the City will <br />be carrying the deficit during the interim. <br /> <br />As is shown above, Ramsey Elementary has already been billed, and has paid for, the charges for <br />WAC, SAC and SAC handling fees which amounted to $174,375 [of which $63,750 of SAC was <br />transmitted to MCES and not available for City use]. The other subdivisions will also be charged <br />the WAC and the SAC handling fee which will be approximately $128,520 [does not include the <br /> <br /> <br />