Capital projects fund, special assessments, debt service fund, effect on other funds/groups. In response to a petition signed by the property owners of Riverdale Subdivision, the city of Pewaukee will oversee the installation of sidewalks, curbs, and gutters in the subdivision, to be accounted for in the city’s capital projects fund. Pewaukee reports on a calendar-year basis. Construction is estimated to cost $900,000 and will be financed by a $100,000 county grant, a $50,000 transfer from the city’s general fund, and special assessments of $750,000 to be levied against subdivision property owners. One-third of the levy is to be due on February 1 of each year, starting with 2018. The first $250,000 installment will be received by the capital projects fund directly. The remaining installments will be collected by the debt service fund and will be used to service the related bond debt. The project is to begin on January 15, 2018, and is to take 18 months to complete. It is estimated that 70% of the work will be completed during 2018.
To cover construction costs, a 6%, $500,000 special assessment serial bond issue will be floated on March 1, 2018. Interest is to be paid semiannually on September 1 and March 1 by the debt service fund. One-fifth of the principal will be redeemed on March 1 of each year, starting with 2019. Since interest earned on special assessments will offset bond interest cost, the city will not accrue interest.
Although the special assessments will provide cash to redeem the bond principal and pay the bond interest, Pewaukee has pledged its full faith and credit as security for the bond obligation. The following events happen during 2018: