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City Council Workshop of April 30, 1996 <br /> The school is willing to pay their water portion of the assessment of $ 86,400 by July 1 st. <br /> Carolyn questioned what other projects are coming up that the city may need to bond. <br /> The joint water interconnect with Lino Lakes and 21st Street development. <br /> The costs associated with bonding, Carolyn estimated to be $30,000. Taking that into <br /> consideration and taking off the schools prepaid portion the bond would be for <br /> approximately $325,000. This bond could be at a 5 1/2% at for 10 years - -- payments <br /> would be $43,000 /year. The question that Carolyn then asked: Where would the money <br /> come from? <br /> Mary Jo stated that TIF money can be used. Mary Jo also added that to the best of her <br /> knowledge all the residents would defer the assessment. <br /> With developments and school becoming users the fund would also increase. <br /> Carolyn stated that there is currently a water bond with payments that exceed $50,000. <br /> There would be a payment for this bond also next year -- putting a water bonds at <br /> $90,000+ / year. <br /> Dave stated that David Arhens, Lino Lakes Engineer, said he would have a proposal to <br /> Centerville for the interconnect by the end of May, this amount would just be to connect <br /> not any construction. <br /> Carolyn explained the process of purchasing bonds. <br /> Mary Jo stated that Tom Thumb does plan on hooking up right away, other than that no <br /> one else will be hooking up. And that the bond payment would come from the water fund. <br /> Greg stated that deferred assessments are scary in a court system because the liability to <br /> still prove the benefit still exists. <br /> Laura stated that it would be politically correct to assess the Brian Drive residents $3200 <br /> versus the estimated $2500. <br /> Mary Jo stated that there are 2 senior citizens and 2 known residents with new wells. And <br /> again expressed her concern of awarding the bid before adopting an assessment roll, <br /> because the residents have to be told at the hearing what the assessment is and what the <br /> payments would be and any and all costs associated. <br /> Carolyn stated that defer doesn't mean delay, the interest is still accruing. Interest starts <br /> accruing the day the assessment roll is adopted. If the assessment is "prepaid" prior to <br /> November 15th or 1 st of the same year no interest is to be paid. Carolyn stated that 9% <br /> may be high, it is usually 2% above what the city is paying on the bond. <br /> CC4- 30WK.WPS 2 <br />