04/24/1995 Meeting Minutes - Laserfiche WebLink

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Regular Council Meeting 4/24/95 Page Two District it will service will pay an indirect assessment. Those people who lie in the trunk line's path and are currently not on a line will also be paying a direct assessment. The funding that we have obtained is strictly for the North County Trunk pipe only. Those with indirect assessments will benefit from it. Had we not succeeded in obtaining Issue II funding, the costs would have been spread out in the first category that says no funding. With the funding, which is a combination of outright grant monies plus zero interest loans, figuring an assessment paid over a 20 year period, an annual assessment will benefit by having a zero interest loan applied to a certain amount of dollars. Together for Highland Heights and Mayfield Village, the combination of grant and loan monies totals 2.6 million dollars. That still leaves about 4 million dollars that has to be funded by assessment. We have learned just in this last week, in working with the County, the County has applied to a state funding agency through the EPA--the Ohio Water Development Agency. We had been told by A.G. Edwards these figures we calculated were based upon a 7% interest rate for any monies that are not currently under the Issue II umbrella. We thought the balance would be at a 7% interest rate over 20 years. We are applying with the County and every indication is that the State is going to extend 4.25% interest on those assessments. Had there been no discounting whatsoever, over 20 years, those people on the trunk line would face a combination of indirect and direct assessments of $27,000 plus. With the Issue II monies, we knocked that down to approximately $18,800 dollars. With this 4.25% interest rate which still has to be approved, but we have every indication it will be, that goes down further to $14,368. That is roughly half of the cost that is going to be borne by people through indirect and direct assessments who will benefit from these lower interest rates. Mayor Rinker said on Thornapple, Mr. Golobish is going to face an indirect assessment only until there is a line dug down his street. (Mayor Rinker quoted the annual figures also.) We are trying to work on getting those figures; they are very estimated figures now. But, when we get those clear, then at that point he will be looking to the direct assessment for that figure. Mr. Golobish said he got a different figure from the County Engineer. He spoke to Jim Brueggeman last Wednesday or Thursday. Mayor Rinker asked if he mentioned OWDA funding. Mr. Golobish said no. Mayor Rinker said as we are trying to figure other ways to lower the cost, these figures will change. Mayor Rinker said we are working off the figures that have