05/09/2005 Council Packet - Laserfiche WebLink

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1 1 1 1 3 a a a a 1 Recommended Funding Sources 26 4. Storm Water Utility (Minnesota Statutes Chapter 4441: We recommend the City establish a storm water utility to pay for those costs of the PMR related to storm water. This will reduce the both the amount of special assessments and property taxes needed to fund the PMR. 5. Tax Increment Financing. Tax Abatement. EDA Levy. and HRA Levy: The City should use these financing tools on reconstruction projects where their use is consistent with the City's statutory authority and where there is a rational nexus between the use of these funding tools and a development or redevelopment project. 6. M.S.A.: The City should use M.S.A. funds to maintain and to reconstruct those streets designated as part of the City's M.S.A. system. Benefiting properties should be assessed on M.S.A. projects in accordance with the City's Public Improvement Financing Policy. This policy provides that M.S.A. streets in unimproved areas be specially assessed at a rate equivalent to a standard residential assessment in other areas of the City. 7. Anoka County and State and Federal Grants: The City should actively work with Anoka County to share in the cost of reconstruction projects on C.S.A.H. routes within the City. The City should also pursue available State and Federal funds to minimize the local funds required to fund the PMR. Summary of Recommended We have prepared a summary of the recommended funding sources based on Funding Sources 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 at this time 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 projects • The City establishes a storm water utility to pay for the storm water related costs of the reconstruction projects The funding sources recommended include property taxes of $4,077,038 to pay for maintenance costs and $4,200,000 from a storm water utility, $3,500,000 from special assessments, and $9,800,000 from G.O. Improvement bonds to pad for $17,500,000 in reconstruction costs. The special assessments amount of $3,500,000 represents 20% of the project costs and does not include any interest on the G.O. Improvement Bonds. The G.O. Improvement bond amounts include only the principal portion of the bond that will be repaid from property taxes levied. These are shown in the following table. Springsted - 1 9 5 - City of Lino Lakes - Pavement Management Plan Financing Rep