03/09/2005 Council Minutes - Laserfiche WebLink

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• • CITY COUNCIL WORK SESSION MARCH 9, 2005 APPROVED 1 Mr. Dragisich reviewed the background of the project noting the purpose of the PMR 2 financing plan. The two primary cost components are reconstruction and maintenance. 3 Total estimated cost of the plan is $21,570,000 over a ten-year period. 4 5 Mr. Dragisich advised the recommended financing sources for the maintenance portion of 6 the PMR include an annual property tax levy. The recommended financing source for the 7 reconstruction portion of the PMR is General Obligation Improvement Bonds. The 8 recommendations in relation to the financing sources assume the following: 9 10 • Annual property tax levies for maintenance costs of the PMR (sealcoating 11 & overlays) 12 • No reconstruction projects meet the requirement for 100% financing with 13 a G.O. street reconstruction bond (all of the reconstructed streets will 14 require widening) 15 • The City specially assess benefiting properties 20% of the cost of 16 reconstruction projects 17 • The City establish a storm water utility to pay for the storm water -related 18 costs of reconstruction projects 19 20 Mr. Dragisich noted the Charter creates an additional requirement the City of Lino Lakes 21 must follow if the PMR is to be implemented, which limits ability to ensure 22 implementation of the PMR. He stated this is a unique Charter requirement that they 23 have not found in previous similar studies. The funding sources recommended provide a 24 method of financing widely used by most other cities in Minnesota. 25 26 Mr. Dragisich reviewed the recommended changes to the public improvement financing 27 policy necessary to implement the PMR. He advised implementing the PMR is in the 28 City's best interest and would result in a net savings of $11 million over the next ten 29 years. 30 31 City Administrator Heitke stated the next step in the process is to prepare and adopt 32 pavement management maintenance and reconstruction policies and financing policies. 33 The final outcome of the process will incorporate all previous phases into a 34 comprehensive pavement management program. 35 36 Mayor Bergeson requested information on whether or not the City can put several years 37 worth of referendum reconstruction projects on one ballot. 38 39 Councilmember Carlson requested information regarding the impact on the TIF projects, 40 sewer and water projects, as well as what the City is bonding for in the three years, in 41 terms of the tax rate implications. 42 43 Mayor Bergeson stated when the additional information is distributed, the issue will be 44 placed on a future Council work session agenda. 45 46 A member of the Charter Commission requested that the Charter Commission receive 47 copies of the Pavement Report Financing Plan. 48