05/09/2005 Council Packet - Laserfiche WebLink

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Executive Summary 3 require that 20% of the costs be paid from special assessments and there is no voter approval requirement. However, there is a reverse referendum provision wherein a petition signed by voters representing 5% of the votes cast in the last general municipal election requires voter approval to issue the bonds. A portion of the reconstruction costs identified in the PMR include costs related to storm water facilities. These are estimated to be approximately $4,200,000. These costs could be paid for through a storm water utility established under Minnesota Statutes 444.075. A storm water utility would provide a dedicated source of funding for both the operational and the capital costs of the City' s storm water system. It would reduce the property tax impacts and the amount of special assessments needed to fund the PMR by providing a funding source for the storm water related costs. Tax - exempt properties would also be included in a storm water utility. Other funding sources we considered included: • General Obligation Tax Increment Financing Bonds • Tax Abatement • Special Service District • Economic Development Authority • Housing and Redevelopment Authority • Capital Projects Funds • Storm Water Improvement District • State and Federal Transportation Grants • Anoka County • Municipal State Aid Funds • Working with the City staff, we developed a proposed plan for financing the PMR that included the following elements: • A. property tax levy to fund the annual maintenance costs identified in the PMR and averaging $330,000 /year • General Obligation Improvement Bonds repaid by special assessments for reconstruction projects where the existing street width is inadequate. Benefiting properties would be assessed an amount equal to the special benefit they receive but no less than 20% of the City's share of the costs. The remaining amount would be repaid from a property tax levy. • General Obligation Street Reconstruction Bonds for reconstruction projects where the existing street width is adequate and where other elements not currently existing do not need to be added. Benefiting properties would be assessed an amount equal to the special benefit they receive. The remaining amount would be repaid from a property tax levy. • A storm water utility to pay for those costs of the PMR related to story water Springsted - 1 7 2 - City of Lino Lakes - Pavement Management Plan Financing Re