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MINUTES OF THE MUNICIPAL SEWER COMMITTEE MEETING - June 27, 1968
Meeting called to order by Mayor Donald Wieselmann at 7:40 P.M.
Present were: Mayor Wieselmann, Walter Wollman, Frank Narlock,
Roland Linck, Robert Burgermeister, Kenneth Cooley, Arthur
Bostater, Attorney John Buckley, Attorney Hammond, and Harold
• DeBack.
Mr. Hammond opened the discussion by telling them that the City
should be getting a history of the financing it needs, which
would include, (1) Temporary Borrowing, (2) Special Assessments,
and (3) Government bonds.
The meeting continued with a session of question and answers.
Mr. Burgermeister: Can revenue bonds be used to pay off the
sewer construction costs?
Mr. Hammond: Yes, and it will also help to have a rating for
(1) 2 years sewers in service, (2) Satisfy all of the bonds, and
(3) Utilize increase in rates.
Mr. Burgermeister: Can we take out "B" Bonds?
Mr. Hammond: It is unwise to issue "B" Bonds for you would have
to issue one bond for each property and get a lien on the property.
Mortgage revenue bonds and "B" Bonds do not go together, unless
you could get some wealthy person to back the "B" Bonds.
Mr. Bostater: Can you pay off Revenue Bonds by special assessment?
Mr. Hammond: Can be paid off also with the sewer charges which
could be billed quarterly or placed on the tax bill.
Mr. Bostater: Could you increase the time allowed on G.O. if you
need additional payments?
Mr. Hammond: To pay off rest of the cost you have half the people
pay in full and half you have to finance after the 30 days after
the notice. Generally with Revenue bonds and mortgage bonds you
can pay the contractors. The Engineers costs are figured in the
cost of the projects and he usually adds 10o for legal fees, etc.
Mr.
Burgermeister: How long will
it be before you can assess
Racine Avenue?
Mr.
Hammond: Letters and notices
will be going out soon.
•
Mr.
Cooley: Do you have to lower
the special assessment now that
the
costs are lower?
Mr.
Hammond: 110, because the value
of the property will be
increased so you would not have to
lower it?
Mr. Buckley: Do the 26" mains get assessed to the property owner
if it should be in front of the property he owns?
Mr. Hammond: Anything over 8" main costs is divided among all of
the property owners in the district. You may have the problem of
the presentass.gssment would be more than the value of the lot.
�. Mr. Burgermeister: Would we have the right to defer farm lands?
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Sewer Committee Minutes
Mr. Hammond: You can defer for 10 years or less, unless land is
subdivided than assessment is made and paid.
Mr. Wollman: Who payginterest on deferred land?
• Mr. Hammond: The Municipality would have to pay the interest on
deferred land. Also, always have hook-up charge for outsiders who
come in later. Larger mains and lagoons paid out of the General
Fund. Standard charge if about 50% of the total sewer charge.
Mr. Cooley: Suppose we charge part of costs now and later need
more ponds.
•
Mr. Hammond: If you devise a plan to charge people a rate for
usage and keep it standard, revenue bonds pay off the costs of the
ponds. He explained use of bank notes and also sewer mills tax.
Mr. Cooley: Will Lake Denoon ever have a sewer system?
Mr. Hammond: They will eventually have a separate system.
He added that Council should decide what financial system to use
and follow through with it.
Mr. Burgermeister: We can not make comparisons with other cities
as our problems differ. At this time, Mr. Burgermeister read off
the findings of other cities and their costs.
Mr. Cooley: Then what course do we follow?
Mr. Hammond: Stay away from G. 0. Bonds - have next project figured
with necessary costs of construction divided among property owners
in one district.
Mr. Cooley: Could you combine two districts?
Mr. Hammond: Yes, as long as you do not levy tax in excess of the
amount of benefit derived.
Mr. Cooley: Mr. Mayor, can we ask Mr. Hammond for a recommendation
at this time?
Mayor Wieselmann: You can ask any question now, we would not
necessarily have to follow the recommendation though.
Mr. Hammond: I would recommend Revenue Bonds and Special assessments
and leave the G. 0. Fund for other purposes, such as a new City Hall.
Mr. Narlock: I suggest that we negotiate with some other Companies
besides the Milwaukee Company.
Mr. Hammond: I will get together with Mrs. Bowyer and get the actual
cost of the Racine Avenue project so that she can send out the new
notices before the deadline date.
Mr. Bostater: We might send a letter along with the notices to urge
people to pay entire amount of assessment at one time to help the City.
Mayor Wieselmann read a letter from Building Inspector, Gerald Lee,
asking for more help to inspect sewer laterals, and explained the
need for part time help to inspect or have Metropolitan do the
entire job. The Mayor will bring this matter to the attention of
the Finance Committee.
Meeting was adjourned at 10:00 P. M.
Respectfully submitted,
MP
6/68 \
B. J. Bowyer, Clerk