03/18/74 Board of Public Works Minutes

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REGULAR MEETING MARCH 18, 1974 annexation and contracts for the erection of street lighting as needed to furnish an equivalent lighting to that of the other areas of the City with similar characteristics of topography, land utilization and population density would be contracted for within 6 months of the effective date of the annexation and such lighting could be completed dependent upon the supplies and equipment of the Indiana and Michigan Electric Co. within 9 to 12 months thereafter. D. Sanitation Service - this service can be available immediately upon the effective date of the annexation at the request of any residents within the area who wish to avail themselves of this service. E. Sewer Service - construction of trunk sewers could be commenced within 1 year of the effective date of the annexation and all trunk sewers would be completed within the 3years of the effective date. Local sewers can be installed to O connect to these trunk sewers as requested by the Cc residents of the territory as soon as the trunk sewer 4r is available to receive the sewage. SECTION 4. The Board of Public Works now establishes and adopts the following fiscal plan for the furnishing of such services: A. Street Maintenance and Traffic Control The Bureau of Streets and Bureau of Traffic will assume the maintenance of all existing streets in the territory to be annexed. Maintenance of 97 miles of streets at $1050 per mile would be an annual cost of $101,850. Annual revenues received by the City from refund of State collected motor vehicle gas taxes at $8.85 per capita would produce $66,428 per annum from the territory to be annexed., The balance of the cost of street maintenance for the initial year will be paid from appropriations from federal revenue sharing funds. Thereafter street maintenance within the territory to be annexed will become a part of the annual budget of the City of South Bend for its general street maintenance program to be financed from the same sources as that budget is presently funded. B. Street Lighting - The annual cost of street lighting for the 97 miles of street, roads and highways within the territory to be annexed is estimated at $225 per mile to furnish equivalent city street lighting at a cost of $21,825 per annum. The first year of cost of operation of the street lighting program will be paid from appropriations from revenue sharing funds. Thereafter, the cost of the street lighting will be paid from tax revenues to be derived from the territory to be annexed and from the same fund that finances the existing street lighting budget. C. Sanitation - This service i-s presently provided by the City to residents for a fee of $3.00 per month per family and is currently a self-supporting service. No city costs are assigned to this service. D. Sewer Service - Trunk sewers would be provided for the area by the construction of $1,275,900 0- 12", 1511, 18" and 21" diameter sewers. Based upon 97 miles of sewers, less 15 miles of trunk sewers, there would be 82 miles of local sewers to be constructed at a cost of $42,240 per mile. The total cost of local sewer construction is estimated to be $3,463,680. If the City participates in 50% of this cost there would be a cost to the City of $1,731,840 for local sewer construction. Financing of this construction could be accomplished in several ways. First federal water and sewer grants are expected in the near future for this type of construction. Based upon 75% of federal participation, 10% state participation, and the remainder from local services, the total cost to the City would be $451,161. In the event that this type of financing was not available, general obligation bonds could be issued for the construction of trunk sewers in the amount of $1,275,900. Based on 5% interest and 25 year term, the annual cost of this trunk sewer construction would be $90,528. The City has the present bonding capacity for general obligation bonds to float this amount of loans.