|
2
<br />dh
<br />3
<br />11
<br />33
<br />33
<br />•
<br />Available FuncN Sources
<br />21
<br />thereby reducing the cost of the PMR to the City in the future because these
<br />streets are not currently included in the PMR..
<br />We have developed a projected cash flow for the Sealcoating Fund over the
<br />planning period covered by this study. The projected cash flow is based on
<br />both assumptions provided by the City and from the PMR as follows:
<br />• Development in the City will add approximately 2.8 miles of new street
<br />each year over the planning period
<br />• Developers will contribute $20,000 per mile of new street developed to
<br />cover the cost of the first sealcoating in the first year of the planning
<br />period. Developer contributions will increase each subsequent year by
<br />5% to account for inflation of sealcoating costs
<br />• Developer contributions received by the City will be held in the
<br />Sealcoating Fund until needed to pay for the first sealcoating
<br />• Cash balances in the sealcoating fund will be invested at an assumed
<br />conservative rate of 2%
<br />• The Sealcoating Fund had a balance of $103,573 at the end of 2004
<br />The projected cash flow is shown in the table below. The fund had a cash
<br />balance of $103,573 at the end of 2004. The projections assume this balance
<br />will be spent down over the next seven years to pay for sealcoating the streets
<br />for which the funds were collected. The projected developer contributions of
<br />$56,000 in 2005 less sealcoating expenditures of $14,800 results in a projected
<br />fund balance of $144,773 at the end of 2005. The cash balance in this fund is
<br />projected to grow each year from both developer contributions and investment
<br />interest reaching a projected balance of $488,987 at the end of 2011. Beginning
<br />in 2012, the growth in this fund balance slows as the first expenditures for
<br />sealcoating are projected to occur to the streets constructed in 2005. The fund
<br />is projected to have a cash balance of $518,917 at the end of the planning
<br />period in 2014. When the City reaches build out, the developer contributions
<br />will cease and the fund will be spent down to pay for sealcoating streets. The
<br />table below shows the projected cash flow in this fund over the planning period
<br />Year
<br />2005
<br />2006
<br />2007
<br />2008
<br />2009
<br />2010
<br />2011
<br />2012
<br />2013
<br />2014
<br />Developer
<br />Mileage Contribution
<br />2.8 56,000
<br />2.8 58,800
<br />2.8 61,740
<br />2.8 64,827
<br />2.8 68,068
<br />2.8 71,472
<br />2.8 75,045
<br />2.8 78,798
<br />2.8 82,738
<br />2.8 86,874
<br />Sealcoat Overlay I Interest
<br />Expenditure Expenditure @ 2.0% Levy Balance
<br />14,800 144,77
<br />14,800 2.895 191,6E
<br />14,800 3,833 242,41
<br />14,800 4,849 297,31
<br />14,800 5,946 356,5:
<br />14.800 7,131 - 420,3:
<br />14,800 8,407 488,9
<br />78,798 9,780 498,7
<br />82,738 I 9,975 508,7
<br />86,874 10,175 518,c
<br />5pringsteri -190-
<br />City of Lino Lakes - Pavement Management Plan Financing
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