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<br />For additional perspective, we are providing the following examples of increased capital infrastructure
<br />costs related to street rehabilitation projects since 2010. Fifteen years ago, street rehabilitation projects
<br />typically came at approximately $200/LF. In today’s dollars our typical pavement reclamation projects
<br />with spot curb and gutter and utilities are costing right around $300/LF all-in, which is a 50% increase.
<br />Fifteen years ago, complete reconstruction projects were costing $433/LF all-in. In today’s dollars,
<br />our typical reconstruction projects with new curb and gutter are costing around $650/LF representing
<br />an increase of 50.2%. This trend is also supported by additional comparisons of the Construction Cost
<br />Index (CCI). By comparing April 2008 and April 2023 as the comparison years, the CCI shows a 50%
<br />increase in construction costs in the twin cities metro area.
<br />
<br />The last amendment to the City of Little Canada’s electric franchise fees was on May 12th, 2010 when
<br />the City Council approved a 57% rate increase. This was the first time an increase took place since the
<br />Franchise Agreement and franchise fee ordinance was initially implementation in 2001. This increase
<br />added approximately $130,000 in annual franchise revenues, bringing collections to approximately
<br />$335,000 per year. Prior to 2011, the revenues generated from franchise fees were around $200,000.
<br />Revenues generated from franchise fees in 2022 totaled $358,953.
<br />
<br />2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
<br /> Franchise Fees $215,637 $210,835 $214,984 $209,895 $198,537 $272,464 $337,787 $335,798 $336,566 $336,081 $339,949 $356,543 $358,795 $356,925 $358,146 $361,335 $363,071 $358,953
<br /> $-
<br /> $50,000
<br /> $100,000
<br /> $150,000
<br /> $200,000
<br /> $250,000
<br /> $300,000
<br /> $350,000
<br /> $400,000
<br />Franchise Fee Revenues last 18 years
<br />
<br />
<br />Franchise Fees and Fund 450 Capital Infrastructure Fund impact:
<br />
<br />Since the electric franchise fee ordinance has been in place, franchise fees have provided an essential
<br />source of revenues for the Capital Infrastructure Fund 450. The franchise fees have exclusively been
<br />used to fund street infrastructure capital projects. Other sources of revenue for Fund 450 have included
<br />approximately $400,000 per year of Municipal State Aid (MSA) funds and approximately $160,000 of
<br />General Property Tax Levy each year. Other revenues are mostly one-time contributions to the fund,
<br />such as grants, or special assessment revenues. Special assessments represent the residents share of a
<br />street improvement project. Special assessment costs are paid in the year the project is constructed;
<br />however, the collection is typically over a ten or fifteen-year period, thus this type of revenue will
<br />fluctuate year after year based on the re-payment schedule.
<br />
<br />The current Capital Improvement Plan (CIP) includes total estimated expenditures of $20,486,375 for
<br />the 10-year period from 2024-2033. This includes $1,784,325 for inflation over the ten-year period.
<br />The total estimated revenues for the 2024-2033 CIP are $15,655,441 (all sources presently identified).
<br />This represents a preliminary deficit of approximately $4.8 million. The estimated beginning balance
<br />of Fund 450 is $1,328,327 in 2024, which leaves an estimated deficit of $3,502,607, for the ten-year
<br />proposed 2024-2033 CIP.
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