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per existing single-family residence on septic systems toward the City's cost of new public sewer mains. Property owners receiving the benefit of the ability to connect to the sewer and the City financing the installation,will in turn pay an additional sewer service surcharge of$13.32 per month until the City advance made in their behalf is repaid(up to a 25 year payment period). Interest is not charged on the City financing of up to the$4,000. This surcharge will be over and above the regular service chargesand fees applicable to these properties. The current monthly sewer and surface water charge is$34.15 ($26.40 for sewer and$7.75 for surface water—you should already be receiving the surface water charge). By ordinance the monthly surface water and sewer rates will increase in 2006(from$34.15 in 2005 to$38.40 in 2006). The$13.32 monthly surcharge pays back the City's cost to install the sewers at no interest and based on the per share costs of connection($2,310.33) will take about 14 '/2 years to pay back. The surcharge starts once your residence is connected to the city's system per your connection application. The billing situation for the nine residences is as follows: For the three residences already connected(510, 514, and 516)—these residences have been charged for sewer since December 22,2004. The bills include the monthly sewer charge($26.40)and the$13.32 per month surcharge. The monthly surcharge amount will remain the same($13.32)until paid off interest free in about 14 %2 years. For the six addresses not connected yet(314, 315, 405,406,420, 500)you will receive a monthly sewer bill with a service start date of February 20, 2005 for the current added monthly amount of$26.40 for sewer. However,the City will track the amounts paid for sewer service over time(at the current sewer rate of$26.40 per month)and apply the payments to future connection fees. The ordinances allow the City to waive the connection fee for residences on septic systems connecting to the public sewer system within twelve(12)months of the date the City approves the new sewer main for connections (considered to be the date of this letter). Thus,property owners that submit a connection application within one year of this letter will have the($814 or$1,013 if over 2,000 SF)connection fee waived. The monthly surcharge will start once the residence is connected and then continue until the$2310 is repaid. According to the city's sewer connection ordinance these six residences must connect to - the new sewer main within 30 days of the receipt of this letter,which serves as a formal notice that the sewer main is available for connection. Also per ordinance,residences can apply for a waiver to delay the connection for up to 10 years. However,the Utilities Dept. is still required to bill for the combined sewer/surface water charges. Please contact Kirk Brooks if interested in the waiver. S••\#Common \01etica1\MAILING\4th final let o3o3o5.doe 020 3/2/2005