SHERBURN — The Sherburn City Council this week received a report from Shannon Sweeney of David Drown Associates, a public finance adviser, regarding the proposed expansion of Temperance Lake Ridge.

He said bids are in and show an increase of $500,000 in the construction cost. The project will cost about $4.18 million, not including costs to finance it.

The city may pay $750,000 in cash reserves, with the balance borrowed through housing revenue bonds in conjunction with the Economic Development Authority and tax-abatement bonds. Sweeney said the project is feasible and the city can finance it quite efficiently over 30 years.

The council asked questions about the time table of awarding the bids and issuing bonds. Sweeney will return to the council’s June 3 meeting with specific information about those resolutions. The meeting will be held at 4:30 p.m.

Questions were raised about Temperance Lake Ridge helping with payments in the unlikely event that the 14 new units would not add to the profits. Sweeney explained there will be a cash reserve to fall back on but he doubts that scenario will unfold since the marketing study indicates a need for more memory units in the area.

He also suggested Tealwood Management Company review the plan to give a second opinion.

Lisa Lange of Temperance Lake Ridge added that the facility’s staffing level is efficient, its fire plan is ahead of the times and the standby generator will be adequate even with the added units.

Officials say Temperance Lake Ridge generates net revenue of $190,000 per year, so the facility is making money and should be able to support the expansion.

The council wanted to make sure residents know this is not a taxpayer-funded project. There will likely be a public meeting in July about the financing.

Lange said there will be groundbreaking ceremonies 2 p.m. June 11.

In other business, the council:

o Accepted a donation of $300 from Advanced Draining System (Hancor) to the Sherburn Fire Department.

o Heard a report from administrator Brad Hughes, who said road repairs and street lighting work is progressing. It is possible that Second, Third and Fourth and Osborne streets will be repaired this year.

o Heard a report that the citywide cleanup day went well, with shorter lines at the truck and positive comments about the curbside pickup. There were 77 tags purchased.