05/09/2005 Council Packet - Laserfiche WebLink

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• 1S 1 3. 1 1 Executive Summary 4 • Tax Increment Financing, Tax Abatement, EDA Levy and HRA Levy where their use is consistent with the City's statutory authority and there is a rational nexus between the use of these funding tools and a development or redevelopment project • M.S.A. should be used to maintain and reconstruct those streets designated as part of the City's M.S.A. system • The City should actively work with Anoka County to share in the cost of reconstructing C.S.A.H. routes within the City and the City should actively pursue State and Federal Grants. A summary of the recommended funding sources was prepared based on the following assumptions: • The City levies a property tax each year to pay for the maintenance related costs of the PMR (sealcoating and overlays) • There are no reconstruction projects that meet the requirements for 100% financing with a G.O. Street Reconstruction Bond (all of the reconstructed streets will require widening) so this funding source was not recommended • The City would specially assess benefiting properties 20% of the City' s share of the costs on reconstruction project • The City establishes a storm water utility to pay for the storm water related costs of the reconstruction projects These funding sources total $21,577,038 and include property taxes of $4,077,038 to pay for maintenance costs, $4,200,000 from a storm water utility, $3,500,000 from special assessments, and $9,800,000 from G.O. Improvement bonds. We developed a projection of the property tax levy and tax rate needed through 2014 to pay for the sealcoating and overlay portion of the PMR on a pay -as- you -go basis and to the pay debt service on General Obligation Improvement Bonds issued to finance the reconstruction portion of the PMR each year based on 5 %, 7.5 %, and 10% growth rates in the City's tax base. These projections showed the tax rate increasing each year as new debt is issued and would result in tax rate ranging from 4.039% to 6.140% in 2014 depending on the growth in the City's tax base. This resulted in a maximum property tax impact ranging from approximately $92 to $140 on a home valued at $228,400. Additional tax impacts would continue through 2029 when all the bonds issued would be retired. We did not provide any detailed impacts of a storm water utility on a typical homestead in the City because there are a number of issues outside the scope o: this study that would need to be resolved in order to provide a reasonable estimate of the impact. Changes were recommended to the City's Public Improvement Financing Polit to make it consistent with the financing recommendations in this report and to change the basis of special assessments for reconstruction to unit assessments Sprt fisted - 173- City of Lino Lakes - Pavement Management Plan Financing Re