Projected Main Street costs released by the city
Tuesday, September 11, 2012 5:28 AM
The following information will be in the city of Spring Grove's September utility bills; however, to make sure others see the information, it is also being published in the Herald with a few additions.
The projected cost for the Reconstruction of Main Street is $4,317,000. A breakdown of cost is shown in the pie chart. These dollar amounts are projected figures, the city council continues to look for ways to either save money or find more grant opportunities, officials pointed out.
Notice the highway construction, water/sewer infrastructure and engineering is over 75% of the total project cost.
MnDot had committed $1,500,000, which brings the city's share to $2,817,000.
How will the city pay for this project? There will be 20-year bonds, which will be paid using utilities, taxes and special assessments.
There will be increases to utility rates and city property taxes; however, the goal is to keep all affordable. Your city taxes will not double.
The estimated cost for a $120,000 house will be around $25-30 a month. This amount includes both the potential tax increase and the water/sewer increase.
Amenities have not been decided. If the city went with the plans as of today, the total cost for amenities (not including sidewalks and streetlights) is $276,200.
However, much of these items have not been decided. For example, the project will not need all 375 feet of ornamental fencing, which saves over $30,000.
Plus, the city received a $25,000 grant for trees. So, even before the council discusses amenities, readers can subtract $55,000 from the amenities cost.
The 95 percent plan submittal is due to MnDOT in October, and MnDOT will manage project letting in February 2013.
Feel free to call anyone on the city council with any questions.