The Board of Public Works and City Council met in joint session at the Event Center on May 27. Half a dozen or so interested citizens sat in on the meeting.The purpose of  the joint session was to discuss utility extensions to areas of proposed annexation, and to discuss sections of City Code relating to the Board of Public Works.The basic question was. “Who pays for what when utilities are extended?”City Administrator Harold Farrar said that developers pay for the expense of utility extensions, plus streets and sidewalks, when a new development is laid out.When sewer and/or water mains are extended into an already developed area just annexed, two methods of paying for the extension are possible, according to Farrar.One method is through improvement district bonds, where costs of the improvement (utility extension) is paid for by issuing improvement district bonds. These improvement district bonds are paid for by assessing the property owners in the area just annexed.The second method is through general revenue bonds. Here the general revenue bonds are paid for by raising utility fees to all users in the city. This includes “old city” plus the area just annexed.It is up to City Council to choose which method is used.Farrar said it was the city’s responsibility to bring the utilities to the property line of newly annexed properties. It is the property owner’s responsibility to pay for the hook-up from property line to point of use. The property owner pays for the meter pit and the city pays for the first meter.Council member Ann Warner asked if the city was going to make sewer and water lines available at every property in the area of proposed annexation, Warner said, “I feel the city should run sewer and water to the property lines at city expense.” She went on to say that she thought property owners annexed should have a window of time to declare if they want sewer and/or water, and that once this time window closes, the expense would be carried by the property owner.Dave Ford, the City Water Superintendent, presented cost estimates that boiled down to $43.17 per foot to put in six inch diameter water main lines, and $53.72 per foot for eight inch sewer main installation.An estimated cost of about $395,000 would be incurred to run water and sewer service to most of the area in proposed Phase II annexation.These figures are estimates only. There are no plans approved or in place to do such work.Farrar said a tightly spaced group of residences, each using their own well and septic tank, does present a potential health problem. Ground water contamination is possible from septic tank leakage or faulty operation.Council member James Schnell said he thought it important  to get the sewer and water situation straightened out in the eastward area just annexed under Phase I.Discussion moved to thoughts of annexing the area around I-80 at Exit 22 and the Kimball Bypass.Warner asked, “ How would we pay for utility extensions to the Exit 22 area while waiting for development to start, and at the same time, pay for the rail spur?”The group answer was “Good question.”Board of Public Works member Dale Dietz remarked that he would rather spend money where the traffic is, to the east.He said, “We don’t need to spend money in an area that is doing fine (west). No one is going to put a business west  on U. S. Highway 30.”After more discussion and no decisions, Mayor Greg Dinges said the two boards should continue to work on the matter and discuss it at future meetings. A matter of City Code concerning $25,000 spending authority for “other than ordinary operational expenses” was left as is.The Board of Public Works will next meet on June 9.The only meeting of City Council during June will be on June 10.