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-14- Boulevard and, if the project goes forward, to do everything in the City's power • to protect the existing boulevard trees. He said he understood the property owners to say they agreed the street needed to be upgraded and considered it would be worth paying $20 rather than $10.50 per foot with MSA funds for them to maintain the same street width. When Councilmember Marks asked whether anyone disagreed with the Mayor's statement, only Mr. Gottwalt responded by saying he would like the City to consider putting in cable for underground lighting while the street is dug up and he perceived solving the drainage problems should be another priority. The Mayor then described the City Beautification Fund, which the Council had set up that evening which might be used eventually to provide further improvements in that area and other areas. He also indicated he perceived one of the strong arguments for retaining the street width would be the 100% support from the Boulevard residents that evening. However, the Mayor said, with the current state funding constrictions, an immediate approval of the variance might not be possible. Mr. Hamer reminded the residents that the MSA money being discussed that evening was actually available to the City now, as long as the Department of Transportation criteria was met. He said since the City's allocation had reached $300,000, the state requires St. Anthony to use a portion of the funds or pay a 10% penalty. With that in mind, the Public Works Director added, the Council had perceived it would be better to improve the "residential" rather than "transit" section of the Boulevard. Mr. Childs responded to Norine Lochren's question if MSA funds were the only monies available to fund this project by saying the only other federal grants available would be the City's allocation of Community Development Block Grant funds from which the City hoped to use $2,50.0 to help low- income seniors pay for their assessments. • The City Manager added that the City had only three options for financing the proposed street reconstruction: MSA funds; bonding for the project and assessing the property owners; or putting the project costs on their tax bills. He said the money can't come from the General Fund but has to be paid from a special bond issue or from the Improvement Fund. Councilmember Marks said the City can't just raise taxes for the project either, because of the levy limitations imposed by the state. The Council- member also said that, with. the loss of almost all federal funding, an anticipated decrease i.n the State's Aid to Cities, and the incredible raise the City experienced in its i-nsurance rates this year, there was little possibility the City would be able to rebuild both ends of St. Anthony Boulevard at once. Mayor Sundland told the homeowners he perceived the purpose for the state and county highway grants for local street improvements was to maintain the infrastructure of traffic-moving streets like St. Anthony Boulevard which funnels traffic between a county road, Stinson Boulevard, and Highways 88 and 35W and streets like Roosevelt in that same area, would not qualify because they do not perform that function. In response to the homeowners' desire to maintain the quality of the Boulevard, the Mayor said the Council had the same goal in mind when they proposed to upgrade the residential section first. As an indication that they have the same concerns about that particular street, he said the film being prepared now to market the Village to prospective homeowners has a view of the Boulevard in it as a demonstration of the desirability of living in St. Anthony, "because you live on what we perceive to be is one of the prettiest streets in the Village". As far as getting the Minneapolis Park Board to pay for any improvements, Mayor Sundland indicated he and Mr. Childs have been meeting very often with them and arguing that point to no avail , to the point where the Board Chair "doesn't even want to talk to me anymore." However, the Mayor said, he did not see the value of putting thousands of dollars into a court case to prove the point since "it's probably true we own the street and probably have to pay to maintain it."