Agenda Packets - 1987/01/26 - Laserfiche WebLink

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November 24, 1986 Page 3 presented through the property tax levy, is not an option. Alternative financing sources and/or restructuring the timing of these improvements will be necessary. FINANCING OPTIONS: STORM WATER IMPROVEMENTS An alternative financing source for Storm Water Improvements is the cash presently on hand from Storm Water Management fees that have been charged developers. These monies are accounted for in the Storm Water Management Fund. The present cash balance of the Fund is $303,396. That amount is not sufficient to finance the improvements presented in the Storm Water Plan. The property tax levy for Storm Water Management that is available is an infrastructure replacement reserve fund. The State Legislature gave the City authority to levy a special levy over the levy limits imposed upon Cities for the replacement of streets, bridges, curbs, gutters, and storm sewers. The levy may be subject to a referendum if petitioned by 10% or more of those citizens voting in the last General Election. This option would be valid for replacement of existing storm sewers contemplated by the Plan. Another financing source is the issuance of general obligation bonds. The City is permitted to levy beyond levy limits for the retirement of general obligation debt. Pursuant to the City Charter general obligation bonds could be subject to a referendum on petition of 10% of those voters voting in the last General Election. I propose that the Director of Public Works give serious consideration to restructuring the Storm Water Improvements over a longer period of time in order that the City have a more affordable plan. Financing would have to be a combination of general obligation bonds, the infrastructure replacement levy, and use of Storm Water Management Funds on hand. FINANCING OPTIONS: PARKS IMPROVEMENTS Compared to the Storm Water Plan the Parks Improvement Plan is more affordable and there are more options available for it's financing. One option is the use of special property tax levies. To understand this option some background information relative to property tax levy law is necessary. Minnesota Cities are limited as to the amount of property taxes that may be levied. These laws are known as levy limitation laws and when a City is levying the maximum amount permitted by these laws the City is said to be at it's levy limit. The City has been at it's levy limit since the inception of this law in