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Authorizing a loan from the Special Assessment Revolving Fund to the Water and Sewer Utilities, and disbursement of $423,400 to the Town of Burke, and amending the 2008 Capital Budget to cover the acquisition costs for plant and for the operation of the Burke Utility District #1 in accordance with Exhibit 9, of the Cooperative Plan Agreement.
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On January 16, 2007, the Common Council adopted the final version of the Town of Burke, Village of DeForest, City of Sun Prairie and City of Madison cooperative plan to establish the future boundaries between the Village of DeForest, and the Cities of Sun Prairie and Madison. Madison’s acquisition of Burke Utility District #1 was an essential element in resolving the concerns of the Town of Burke and reaching that agreement. The City Water and Sewer Utilities were amenable to accepting the physical plant of the Burke utility district, but the outstanding debt related to construction of the sewers, water mains, water well and reservoir exceeded the value of the assets. The well and reservoir, which were constructed by Burke to serve the future development of Cherokee, are surplus to the needs of the Water Utility.
The adopted agreement provides that the City will pay the Town of Burke $423,400 to acquire the assets of the Burke Utility District #1. The City expects to recover these costs from Cherokee Park, Inc. as parcels/dwelling units are developed in the future.
The Water and Sewer Utilities seek to borrow this $423,400 from the Special Assessment Revolving Fund to finance the acquisition and operation of the Burke Utility District #1. The Utilities will repay the loan from connection charges assessed to Cherokee Park Inc. for development by the year 2018, upon the issuance of building permits indexed for inflation using the Construction Cost Index of the Engineering News Record.
NOW THEREFORE BE IT RESOLVED that the 2008 Capital Budget is hereby amended to authorize the payment of $423,400 t...
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