03/18/74 Board of Public Works Minutes

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DAM REGULAR MEETING MARCH 18, 1974 E. Sewer Service - construction of trunk sewers could be commenced approximately 1 year after the effective date of the annexation and all trunk sewer construction could be completed within 2 years of the effective date of the ordinance. Local sewers can be installed to connect to these trunk .sewers at any time after construction and within the three year period to serve residents as requested by them and upon arrangement for payment of the prevailing share of cost of local sewer installations, the same being a 50% of the cost.thereof. All local sewer construction, if so petitioned for, could be completed within 3 years of the effective date of the annexation ordinance. 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 16 miles of streets at $2500 per mile would be an annual cost © of $40,000. Annual revenues received by the City from refund of State collected Cz motor vehicle gas taxes at $8.85 per capita would procude $14,160 per annum from �j the territory to be annexed. The balance of the cost of street maintenance for pa the initial year will be paid from appropriations from federal revenue sharing funds. W Thereafter, street maintenance within the territory to be annexed will become a G� 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 16 miles of streets, roads and highways within the territory to be annexed is estimated at $775 per mile to furnish equivalent City street lighting at a total cost of $12,400 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 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 is 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 thie area by the construction of $544,000 of 15", 18", 21" and 36" diameter sewers. The total highways, roads and city streets in the area would be 16 miles, of which 5.53 miles would be trunk sewers. Of the 10.47 miles remaining, local sewers would be required on 80 per cent thereof, of 8.38 miles. Cost of such local sewers at the rate of $42,240 per mile would be $353,971. If the City participates in 50% of this cost, there would be a total to the City for local sewer construction of $176,986. 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 on 75% of federal participation, 10% state participation, and the remainder from local sources, the total cost would be $108,148. In the event this type of financing was unavailable, general obligation bonds could be issued for the con- struction of trunk sewers in the amount of $544,000. Based on 5% interest and a 25 year term, the annual cost for sewers would be $39,000. The City at this time has bonding capacity for general obligation bonds to finance this amount. SECTION 5. The Board of Public Works determines that the revenue to the City to be anticipated from such annexation will be derived from the following: A. Property tax revenue as based upon assessed valuation of $1,236,610 would produce $62,325 per year to be derived from tax payment made for 1975 payable 1976 taxes. B. Revenue from distribution of State Collected taxes from motor vehicle highway tax, -cigarette tax to general fund and cigarette tax to cumulative capital improvement fund is estimated at $21.06 per capita for a total available distribution of $14,531. C. Estimated revenue sharing distribution from the federal government based upon present revenue sharing would be in the amount of $10,460 per annum. D. Total estimated revenue from the territory to be annexed would be $87,317.