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<br />I ' <br /> <br />. <br /> <br />City of Centerville <br />February 27, 2002 <br />Council Minutes <br /> <br />Council Member Broussard Vickers indicated that all users ofthe City's water system <br />benefit by adding other areas to the system because looping the system improves the <br />system. <br /> <br />Council Member Travis commented that the City may not have to build another water <br />tower if it opted not to run water to all those that currently do not have it. <br /> <br />Council Member Broussard Vickers indicated the biggest challenge for the City is <br />determining a fair assessment and figuring out a way to fund the rest of the project. She <br />then indicated that priorities for the water system should be suggested but she did not see <br />the need to order a formal study at this time. <br /> <br />Mr. Peterson reminded Council that the water interconnect with Lino Lakes was to be a <br />six year agreement and noted the City may need to build the second water tower if <br />required to disconnect from that water line. <br /> <br />Council Member Travis suggested approaching Lino Lakes to see if they would have an <br />issue with extending the deadline for disconnecting. <br /> <br />Council Member Capra indicated Hugo would be using water from Lino Lakes for a new <br />development and Lino Lakes had said it wants Hugo to be able to provide water to future <br />developments. <br /> <br />Council directed Staff to inquire into whether or not there is pressure to disconnect from <br />the water interconnect. <br /> <br />Council Member Travis pointed out that Centerville paid the $50,000 or $60,000 for the <br />interconnect. <br /> <br />4. Resolution 02-003 Transferring Funds <br /> <br />Ms. Moore-Sykes indicated she had been researching the deficit accounts for information <br />as to how or why the accounts ended up in the current state. She then eXplained that one <br />developcr went bankrupt, in the past assessments were based on the engineer's estimates, <br />those estimates have been low, and the City has to make up the difference. <br /> <br />Ms. Moore-Sykes explained that when the assessments were made when doing the <br />calculations City Staff counted on future interest because they thought more residents <br />would not be able to pay the assessment off up front and would have to pay over time <br />with interest and that has not happened. <br /> <br />Mayor Swedberg asked whether any of the projects with deficits had letters of credit that <br />could be tapped. <br /> <br />City Attorney Hoeft indicated the letter of credit is sometimes only for improvements and <br />other times during 429 financing it is to cover the costs of the infrastructure. <br /> <br />Page 13 of 24 <br />