Agenda Packets - 1997/10/20 - Laserfiche WebLink

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10/20/97 04:37 PM Street Reconstruction Estimates for next ten years 50% 30% 0% Assessment Assessment Assessment Estimated cost of reconstruction,next 10 years (1997 dollars): Total area of payment rated 49 or lower 966,059 Estimated cost per square foot to reconstruct $4.00 Estimated cost of reconstruction, next 10 years $3,864,236 S3,864,236 $3,864,236 Funding sources: Current budget(assumes $80,000 of$125,000 budgeted in General Fund Pavement Management-construction account times 10 years 300,000 300,000 300,000 Special assessments @ % of cost 1.932.118 1.159,271 0 Subtotal 2,732.113 1,959,271 800,000 • "'mated revenue shortfall,next 10 years 51.132,118 51.904.965 53.064.236 Estimated annual revenue shortfall(total divided by 10) 5113.212 5190.497 5306.424 Increase in property tax levy from. 1998 proposed GF levy 6.88% 11.58% 18.63% Optional financing: Bonding. Issuance costs of$30,000 to 550,000; repayment over a period of time. Most Minnesota cities issue 10 year bonds, some cities extend the term up to 20 years but normally interest razes are a lot higher and the bonds normally have a lower rating. Special assessments must equal.at least 20% of the total bond issue. In addition to repaying the bonds, there is interest and issuance costs which must be repaid. The bonds are general obligation bonds and are outside of the levy • limits. Any bond proceeds must generally be spent on projects within two years. MSA projects. On MSA projects, maximize the eligible reimbursements,plus assess at 50%of the total cost. The result should be that the total funding for the project is at approximately 120%of • the total cost of the project. The 20%over the cost could then offset some of the shortfall on non PISA roads. Assuming$330,000 in annual MSA construction funding, over the next ten years,th would generate approximately$900,000 that could be used to offset or minimize the need to issue bonds or to substantially increase the property tax levy. 4110