HomeMy WebLinkAboutResolution - 425 - Financing - system Assessment - Rates & Charges Policy - Utilities - 06/22/1971 VILLAGE OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 140. 425
BE IT RESOLVED, by the Village Council of the Village of Eden
Prairie that :
A. THE FOLLOWING UTILITY FINANCING OBJECTIVES ARE HEREBY ADOPTED.
1 . The Village wi 1 i authorize general or specific utility system
projects only after their financial feasibility has been established.
2. It is our intent to recover- the cost of financing system utility
installations through a program of fees, charges and assessments against
properties using or economically benefited by the utility system.
3. The property tax base resources of the Village will be used as
collateral to support the program of fees, charges and assessments
established to recover the cost of utility system financing.
4. We wi l l utilize medium term (about 1 5-20 years) financing for
bonds and assessments. Medium term 17i nanci ng is considered as a reasonable
combination of the lower interest and recapitalization advantages of short
term financing and the extended property owner payment schedule afforded by
long term financing.
5. The Village wi l 1 continue to actively pursue the financial
} assistance of the Metro Sewer District and those Federal and State agencies
that may have funded programs intended to assist municipal system utility
installation financing.
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6. Assessment rates, system access charges and user fees will be
established which are in their composite reasonably comparable to similar
property owner costs in other developing suburbs.
7. We intend to establish user charges that will adequately meet
current operating expenses, recover a portion of treatment plant capital
costs and provide for future system renovation and improvement.
8. Uniform special assessment rates for sewer and water trunk benefit
will be established with a provision for periodic adjustment to reflect
changes in utility construction costs.
9. Trunk special assessment levies against occupied residential
properties already serviced by on site utility systems will be deferred
until such time as the property is benefited by a lateral installation.
10. We will provide a deferred payment option to owners of property
assessed only for trunk benefit. The option should provide for the recovery
of interest expenses incurred by the Village during the deferment period.
Resolution No. 425
Page Two
11 . Ail Vi 1 1 age property owners wi 1 1 be provided options which
would permit them to prepay assessments as well as to incur trunk
assessments at the rates prevail ing at the time thi s option is exerci sed
even though the system faci 1 i ty for thei r area has not yet been i nstal led.
12. We propose. to finance the construction of lateral water and sewer
facilities wi tl-� spacial assessments levied against properties whi ch they
serve or benefi t.
13. The area to be benefited by sewer- and water system improvements
wi l 1 be considered to be a 1 1 properties which wi 1 i be served by lateral
faci 1 i ti ns extended from the system.
14. We wi 11 consider the properti es to be benefi ted by lateral sewer
and water faci 1 i ti es to be those di rectl y served by the faci 1 i ty.
15. Construction wi 1 1 be scheduled so that the financing of a number
of individual projects can be combined to reduce the frequency of selling
bonds and to improve their marketability.
16. Overal 1 Vi 1 l age and School District financing will be periodical 1 y
reviewed to assure that improvement project financing does not needlessly
interfere with other financing programs.
17. We propose to periodical 1 y review the utility financing plan and
its component charges, rates and policies and mane whatever adjustments are
necessary to maintain the pl an 's fiscal soundness and customer or property
owner acceptability.
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a. T1:E FOLLOWING SYSTEM ASSESSb'=!NIT POLICIES ARE HEREBY ADOPTED.
1 . Assessment terms to be a maximum of 20 years. interest is to
be charged on unpaid balances.
2. System benefits will not be assessed against presently occupied
residential lots served with on site systems unti I property is benefited
by lateral . The collection of system assessment may be deferred until time
of connection.
3. The owners of property, other than those described in Policy 2,
which are assessed for system benefit and not assessed for lateral benefit
to have the option of deferring payments until 1976. The total principal plus
interest accrued during the deferment to be paid over the remaining years of
the original assessment term.
4. Property owners to have the option of prepaying a certified assess-
ment in total without interest before November 1st of any year and can prepay
all or a portion of a pending assessment at any time.
5. Owners of property not yet assessed for system benefi t may request
such an assessment at the assessment rate prevailing at the time of the
request.
Resol uti on No. 425
Page Three
6. The minimum system access charges for industrial , public and office
uses are to be 2 x R.E.C. charge per acre of site needed to accomodate the
building and 3 x R. E.C. rate for commercial uses. The needed site area equals
the building area in ages divided by G. 3.
7. The trunk assessment R. E.C. rate will apply to only those platted
single family lots existing at the date of this Resolution. All other
properties will be assessed at the acreage rate.
8. For the purpose of eliminating existing pollution or public health
hazards and/or alleviating the potential of such hazards from occuring in
the future, the Council may at its discretion assist in the financing of the
installation of lateral sewer and water lines in single family residential areas.
This policy will apply only to those properties served by private on site sewer
and waiver systems at the time the public lateral system is first proposed.
Financial assistance shall be limited to not more than 25% of the total assessable
lateral cost but in no event shall exceed $1 ,000 per parcel .
9. Following the adoption of this Resolution persons requesting permits
to construct residential units served by on site sewer and water systems shall
be required to deposit the sum of $ 1 , 000 per building site which monies plus
interest at such rate as the Council may resolve shall be held in escrow and
credited to future lateral assessments against said building site.
C. THE FOLLOWING RATES, AND CHARGES ARE HEREBY ESTABLISHED.
Special Assessments on Benefited Properties.
i. For System Sanitary Sewer $300 per R.E.G. or
$750 per net acre
For System Waterworks $220 per R.E.C. or
$550 per net acre
For Laterals Actual Cost
System Access Charges.
For Sanitary Sewer $135 per R.E.C.
For Waterworks $100 per R.E. C.
User Charges (Minimum per Year)
For Sanitary Sewer $30 per R.E.C.
For Water $54 per R.E.C.
ADOPTED by the Village Council on June 22, 1971 .
David W. Osterholt, Mayor
ATTEST:
C7�sGi y� • ��. ,�;;1 .c lc� SEAL
Edna M. Holmgren, Clerk