2019-08-14 CC Minutes - Approved

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City of Centerville Council Meeting Minutes August 14, 2019 and lots within those platted development were of similar size. He stated that the downtown area is much different with numerous lots being made up of several 50’ lots and the inclusion of the school and church parcels. He stated that with this project assessments range from $2,800 - $9,000 with the school and church being much larger as they own significantly larger amounts of property and larger parcels. Administrator Statz stated that the assessment do not include storm sewer or watermain installation. He stated that upon connection, fees would be paid as parcels are connected. Mayor Paar thanked Ms. Schlegel for her review of the Feasibility Report. Discussion ensued regarding the needed work, inclusion in the 2003 Pavement Management Plan, grant funding, income qualifications for water connection, special assessments for those that do not meeting the income qualification guidelines, financial burden on homeowners, costs of the project and timing, construction costs of the roadway being 7 ton versus 9 ton, the reasoning behind the 9 ton recommendation, parking spaces and right of way sizes larger than other areas of town. b. Review of Financing Plan Finance Director DeJong reviewed the financing options that the City would have and stated that funds are relatively healthy if the project was constructed in 2020 with the final wear course placed in 2021. He stated that the Street Fund would have the potential for going negative during the construction of approximately $81,000. He stated that some individuals will pay for their improvement up front with others being assessed over a period of 10-15 years. He estimated that assessment in 2020 and 2021 would be approximately $30,000. He stated that he hoped that quantities of materials, contingency fees and administrative costs would be below the estimates. Finance Director DeJong stated that the water fund would incur its regular expenditures during the project but felt that it would benefit from those homeowners that qualified for the financial assistance of the CDBG funds. He stated that it was anticipated that the City would receive lateral benefit fees of $8,000 and other costs in the amount of approximately $10,000 per property from 16 homes ($160,000). He stated that with these assumptions that fund would not go below $2,444,000 during construction. Finance Director DeJong stated that the Storm Water Fund balance would not be affected by this project as it generates approximately $75,000 per year. It was felt that no storm pond or major repairs to the system would be needed during the construction period. Finance Director DeJong discussed the City’s ability to bond for the anticipated shortfall in the Street Fund. He stated that staff was not recommending this action due to the requirement of 20% of the project costs needing to be assessed which could increase assessments and that if the City paid cash it would save funds by not paying bond issuance costs and interest. He stated that the Street fund would quickly recover and that not too many cities can afford to pay for such projects with cast. Discussion ensued regarding the use of General Funds for the shortfall, bonding in the past, thanking previous Council’s for their for thought of establishing the Street Fund for funding in the Page 4 of 8