Agenda Packets - 1987/01/26 - Laserfiche WebLink

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MEMO TO: Mayor & Council FROM: Finance Director -Treasurer Brager DATE: January 27, 1987 RE; Potential Methods of Financing Parks & Storm Water Capital Improvement Projects Staff has been requested to find 'ways to finance Park and Storm Water Capital Improvement Projects. I wrote a memorandum, in late November, which discussed potential financing sources for these projects. That memorandum became the basis for discussions, held in December and early January, by the Department Heads on the best methods to finance these projects. A copy of the memorandum is attached. Although it is a lengthy memorandum, it Is a comprehensive discussion of all of the financing methods available for these projects. The Department Heads agreed with my conclusion that full financing of the Parks & Storm Water Projects as presented would create an overwhelming burden on City taxpayers in the form of greatly increased tax rates (see page 2 of the attached memorandum). We then began to discuss alternatives. Staff came to the conclusion that the property tax levy would have to be the primary source of financing for these projects. While there are sources of financing other than the property tax levy, those sources are either not of a sufficient amount or not predictable enough to plan for. These include: the Park Improvement Fund (revenues not predictable); the Storm Water Management Fund (revenues not predictable and not a sufficient amount); the Special Projects Fund (not a sufficient amount as revenues committed to equipment replacement due to loss of Revenue Sharing); and the Silver Lake Woods Construction Fund (not a sufficient amount as revenues are dedicated to annual street maintenance projects). Staff then chose a relatively small mill levy to determine the effect it would have on completion of these projects. Dedication of a 2.5 mill property tax levy to storm water projects would allow completion of those projects in approximately 19 years as compared to the originally proposed 7 years. Dedication of a 1.5 mill property tax levy to Park Improvement projects would allow completion of those projects in 5 years as originally proposed, however, the projects would be restructured. A revised plan has been prepared and is attached. After completion of these projects the levy would be used to build a Park Improvement Fund. The fund would be fully funded in 12 years or 2004. The total property tax levy would be 4 mills. Increasing or decreasing the levy would either speed up or delay completion dates of these projects.