Minutes-3 /16/1964

Minutes of Special Meeting, March 16, 1964 Present: William Tucker, William Nicholas, James O'Toole, Margie O'Toole Following are some of the points brought out in the discussion of the proposed sewerage system for the Town of Tiffin. Feasibility. Mr. Carpenter gave a cursory examination of the material sent to him and decided it was not feasible. On the basis of the same information, Carlton Bey advised Mr. Powers by telephone that he considered the plan to be feasible. Mr. Nicholas explained his computations; Council Valuation figure shows 1/27 of assessed evaluation; based strictly on a front footage basis, the cost of construction of main lines and laterals to the lot line were assessed to the properties; cost of the treatment plant is assessed to the improvements on these lots. On corner lots, the shorter front footage was always used. The 1/27 figure was used all the way through, with no exceptions. Subsequently, upon plans being completed and the contract being let for bids and proposed assessments being spread, and if the bids come in and this figure is out of line more than 10% you cannot adjust a preliminary assessment more than 10%. This does not mean that you cannot pick it up out of your Sanitation Fund. If you do that, you are competing with your operating cost under your mileage levy which makes it pretty difficult to do. Whether this deficit, if any, could be picked up on general obligation bonds would seem to be subject to approval of the State Executive Council. Mr. Bey would have to answer the question as to whether it is possible to obtain the treatment plant either by assessment or revenue bonds. Where there are areas excluded from the original sewer system and excluded from assessment and would subsequently be within the town and could attach, the question comes as to their cost. There is provision by law whereby they have to be assessed and their pro-rated assessment can be paid back to those who had original assessments. This would be all right because if you had revenue bonds for this purpose, they would be paying for those revenue bonds at this time even though they were not attached to the system. Revenue bonds. Subject to the total valuation available for tax purposes within the community. A sewer plant obligation bond is nothing more than that you sell $30,000 worth of bonds and you have to pay these back. They have to be amortized for not more than 20 years. You have to have a sinking fund, which means that you set up a reserve so that they can be called in at the time they mature, plus you have the interest rates on these bonds which has to be paid each year. Does the property have a sufficient assessability that they can be retired? Basically, the facility itself sometimes is first security for the bonds. In other words, there is actually a lien on the property covered by the bonds. Under general obligation bonds, this is not true. You are subject to the limitation that you have a debt service retirement limitation to the town and if the amount of annual payments you have to make plus accrued interest....