HomeMy WebLinkAbout2001 [07] Jul 25
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July 25, 2001
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Pursuant to due call and notice thereof, the City Council for the City of SI. Joseph met in special sessidn
on July 25, 2001 at the Joseph City Hall. I
Members Present: Mayor Larry Hosch. Councilors Cory Ehlert, Bob Loso, AI Rassier, Kyle Schneider j
Administrator/Clerk Judy Weyrens.
Others Present: Bond Counsel Monte Eastvold.
Mayor Hosch opened the meeting and stated the purpose of the meeting was to review the Debt
Management Study prepared by Monte Eastvold of Juran and Moody and discuss the additional purchase
of sewer conveyance/capacity from the City of SI. Cloud. I
Monte Eastvold presented the Council with a possible bond issue should the Council decide to purchase
the additional sewer capacity from the City of SI. Cloud. The following is a summary of the financing plan
if the City purchases the additional 1.5 gallons per day of sewer capacity from the City of SI. Cloud:
Total Purchase Price: $ 914,850
Sewer Fund Transfer $ 200,000
Bond issue $ 714,850
Revenue Sources
1992 Assessments $ 221,832
1996 Levies $ 363,000
Sewer Connections $ 615,000
Loso stated that he is not convinced the City needs to purchase the additional 1.5 gallons of capacity as
the original capacity purchased in 1986 seems sufficienl. He questioned whether or not the City could
purchase a portion of the available capacity. Further, Loso stated that while the City has the capacity; SI.
Cloud will be requiring all Cities using the sewer system to cost participate in the additional plant that is
needed. I
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Rassier stated that he feels it is important for the City to purchase the additional capacity and plan for the
future. If St. Wendel Township requests sewer services, we will need additional capacity to service that
area. i
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Ehlert concurred with Rassier and stated that the City has three developments that will be requesting i
services. SI. Joseph is in a situation where growth is going to happen. It is important for the City to plan
for the future and take a proactive stance. I
Hosch stated that he believes the City should purchase the additional capacity to plan for the future. I
Further, he would like to find a way to finance the bond issue with future development paying the annual
deficit that is needed. The Council concurred with Hosch, and stated that if the additional capacity is I
purchased the liability should be borne by future development, not the existing tax payers as they have
already paid their share. i
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The Council requested Mayor Hosch to meet with the Mayor of SI. Cloud to negotiate the final price if ,the
City purchases the full 1.5 million gallons of capacity or if a portion of the capacity could be purchased.
Weyrens will contact the developers requesting the services to see if an agreement can be reached i
whereby they would agree to guarantee enough new home construction to meet the required hookup fees
to cash flow the bond issue. '
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July 25, 2001
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Judy Weyrens
Administrator/Clerk
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