11/19/73 Board of Public Works Minutes

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413 REGULAR MEETING NOVEMBER 19, 1973 B. Street Lighting, - The annual cost of street lighting for the 97 miles of streets, 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 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 the area by the con- struction of $1,275,900 of 1211, 15", 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. O 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 con- struction 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. 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 based upon assessed valuation of $89662,550 would produce $436,592 per year to be derived from tax payment made for 1974 payable 1975 takes. B. Revenue from distribution of State collected taxes from motor vehicle highway tax, special $.02 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 $158,076 per annum. C. Estimated revenue sharing distribution from the federal government based upon present sharing would be in the amount of $56,800 per annum. D. Total estimated revenue from the territory to be annexed would be $651,469. E. Total cost of services to be furnished to the area to be annexed including all governmental and proprietary services is estimated at $491,357. ADOPTED THIS 19th day of November, 1973 BOARD OF PUBLIC WORKS s/ Rollin E. Farrand s/ James R. Seitz s/ James V. Barcome ATTEST: s/ Patricia DeClercq, Clerk