7.4. SR 04-03-1995Item 7.4.
ver MEMORANDUM
TO: Mayor & City Council
FROM: Pat Klaers, City Adt~~i3ltrator
DATE: April 3, 1995 I/~//~
SUBJECT: School BuildingBond Proposal
As the City Council is aware, the School Board is proceeding with a public
referendum to, in part, finance a 2100 student senior high facility. The
public vote on this proposal is scheduled for May, 1995. If this proposal is
approved, the City and the School will have to discuss potential locations for
such a facility along with the cost and availability of municipal services.
I think it goes without saying that any savings that the School District could
obtain in the construction of a new senior high would be appreciated by the
Board. Some City assistance is appropriate, but the type and level of the
• assistance is unknown.
If the City and School District are talking assistance in WAC and SAC fees,
then the School also has to talk to the Utilities Commission which controls
the water fees. As the Council knows, the WAC fees go to finance new water
towers and wells that are needed for newly developed areas of the City.
Likewise, the SAC fees go to finance the debt for the treatment plant
expansion which is necessary in order to have sewer capacity to service new
areas of the City. To forgive these fees completely would make the debt
payment for new towers, wells and plant expansion very difficult. SAC and
WAC fees are generally paid at the time the building permit is issued.
Another area of financial concern for the School Board will be sewer and
water trunk and lateral assessments (along with street and storm sewer
assessments). If the School or benefiting property owners do not pay for the
sewer and water pipes that go into the ground, then another source of
funding for these infrastructure improvements must be identified.
Finally, the School may be seeking public support for the bond proposal from
the Mayor and individual Councilmembers and this may be discussed at the
joint meeting.
•
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425