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MEMORANDUM <br />To:St. Anthony Village City Council <br />From:Shelly Rueckert, Finance Director and Charlie Yunker, City Manager <br />Date:May 23, 2023 City Council Work Session <br />Request:Future Street Improvement plan / 2024 Debt Levy / Future <br />BACKGROUND <br />The last step of the Peak to Plateau debt plan was the bonding of the 2022 street improvement. The Phase II <br />plan Street Improvements had 2023 as an off year for Street improvements. Again, the goal associated with <br />Phase II is a modified pace of improvements to reduce reliance on bond financing and transition to levy support <br />for construction cost. <br />PHASE II <br />This second phase continues to stabilize the street improvement program’s impact on the annual levy, while <br />also reducing the reliance on debt to fund construction costs <br />The 2024 Annual Street improvement program had one timing change from the prior years plan. Townview Ave <br />will move up and be reconstructed in 2024 vs 2025 with 31st Ave. being delayed from 2024 to 2025. Other <br />streets scheduled dates are consistent with prior years plan. <br />The 2024 Street project includes a street reconstruction, mill and overlays and alleys (see attachment 1 for <br />details). The transitioning of the debt levy to infrastructure levy begins with 2024 Levy. The 2024 debt levy <br />certified will be $2,136,734. This is a decrease of $350,447 compared to the 2023 debt levy. This decrease in levy <br />will allow the City to increase its Infrastructure Levy by the same sum. The result being the levy impact of the <br />street improvement program will be again be a combined flat levy for a fifth consecutive year. <br />The 2024 debt levy modeling has been updated to current bond interest rates plus 50 basis points for 2024 and <br />plus 100 basis point for future years. The construction costs were rebased using current bid prices and <br />anticipated construction cost inflation at 6%. The transition from debt to levy financing models the current <br />estimated costs and resulting annual debt service. The plan has been modified to maintain a flat levy through