Minutes 08/14/1984 - Laserfiche WebLink

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4( TUESDAY AUGUST 14, 1984 However, as the time nears when we'll need the proceeds from these bonds, both of these assumptions are being seriously test- ed. This report is intended to discuss the matter completely, to identify various alternatives and to make certain recommenda- tions to the Council. Contemplated Improvements Water System Under the terms of our water agreement with P.S.A., the City is a party to a raw water acquisition project, which is under con- tract and due for completion by calendar-year end. It is referred to generally as the "Leatherwood Project"--because it connects the City's water treatment plant to Leatherwood Creek, in the Laurel Park area. We are obliged, upon completion of the contract, to pay P.S.A. about $2.0 million for our share (90%) of project cost. Of this amount, we have budgeted to pay $500,000 from currently-available monies in the Water Fund and plan to borrow the balance of $1.5 million for 20 years. The current water rate structure is thought to be adequate to handle the debt service requirements entailed by this project. Sewer System Wiley & Wilson is proceeding, as authorized, to complete plans and specifications and to receive bids to (a) add digester and odor control improvements to the wastewater treatment plant and (b) to increase the capacity of the plant from 6.0 MGD to 8.0 MGD. The city's total estimated cost of these two interrelated projects is $3,325,000. This amount could be lowered if P.S.A. eventually opted to participate in the expansion. The current budget makes no provision whatsoever for these im- provements and it is proposed that the total amount be borrowed for 20 years. The current sewer service Gharge ($.80 per thousand gallons of water used) is not considered to be sufficient to amortize the debt involved here. We think it may be necessary to raise the rate by 18 cents in support of this financing, depending on actual contract costs, interest on the bonds, P.S.A. participa- tion, etc. Bond Issuance - General City Charter Chapter 11 of the Charter provides that: