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The Honorable Mayor, City Council and Staff <br />May 20, 2008 <br />Page 2 <br />16 <br />3. The current cash distribution to the City of St. Anthony for reimbursement of the $1.6 million is <br />currently earmarked toward the Capital Equipment Fund. This is a legitimate process, as the City <br />fronted to the State Aid system $1.6 million of local funds from other sources to cover the gaps in <br />Municipal State Aid funding on past projects. <br />4. With no MSA funds available until the year 2021, the City has limited ability to manage and <br />maintain the existing performance of streets and utilities on Municipal State Aid Routes. An <br />example of this is Chandler and Foss Road north of 37°' Avenue. Over the last 14 months we have <br />seen more than 13 watermain breaks on Foss Road and Chandler Drive, the pavement and utilities <br />under the street are rapidly deteriorating, and is the number one priority for replacement at this time. <br />Both the Cities of Columbia Heights and Roseville have approached the City of St. Anthony to <br />complete mill and overlay programs on Silver Lane and Highcrest Avenue along our boundaries. <br />Both of these roads are Municipal State Aid routes and we currently do not have a budget item to <br />allow for an overlay or adequate construction funds from Municipal State Aid to participate in these <br />improvements. <br />In an effort to evaluate various alternatives for financing, the City of Columbia Heights recently completed a <br />survey of a number of communities related to assessment policies on Municipal State Aid Routes. Below are <br />a few of the comments they received from their inquiries of other municipalities: <br />North St. Paul <br />City State Aid Routes are assessed. Residential streets are assessed at cost. Assessments follow the <br />429 Best Management Practices plan. <br />Local streets are 100% assessed if the improvements are driven by development, otherwise a portion <br />of the project costs are assessed. Tax dollars are not used to assist in funding the projects. <br />West St. Paul <br />City State Aid Routes are assessed. <br />Local streets are assessed 25% of the project cost. <br />Crystal <br />City State Aid Routes are assessed. <br />Robbinsdale <br />City State Aid Routes are assessed by the lineal foot at the same rate as local streets. <br />Fridley <br />City State Aid Routes are assessed. <br />Local sheet assessments vary depending on the type of project. <br />K\1626-22\Admin\Docs\LTR-hmcc-052008.doc <br />