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WS – Item # 6 WORK SESSION STAFF REPORT Work Session Item No. 6 Date: February 3, 2014 To: City Council From: Michael Grochala Re: Pavement Management Program Process Background The City Council reviewed three (3 ) pavement management f inancing options at the January 6, 2014 work session. The options included:  Pay for 100% of the improvements with special assessments.  Pay for improvements with a combination of special assessments and property taxes using Improvement Bonds .  Pay for 100% of the improvements with property taxes using street reconstruction bonds . The first option was eliminated by staff due to the difficulty in just ifying assessments in the amounts necessary to cover 100% of project costs. The council requested additional information regarding the remaining options and requested that staff begin development of a five year street reconstruction plan. Options The two primary funding sources for non -state aid street reconstruction are special assessments to benefiting property owners and property ta xes. Base d on the past discussion the council could proceed under the following options : Option 1 : Pay for improvements with a combination of special assessments and property taxes using Improvement Bonds . This option wil l require voter approval unless the charter is amended to eliminate that requirement. Accordingly t his option can be broken down into 2 subparts: Option 1A: Proceed under current Charter Provisions The pref e r red project would be selected following completion of the Five Year Street Reconstruction Plan . Under the existing charter process we would need to in itiate the feasib ility study by March and hold the required public hearing in June. A minimum of 20% of the total project cost would need to be assessed. If no petition against the pr oject