07-18-22-WS - Laserfiche WebLink

Home Browse Search

Page 2 of 3 PIR Fund • The city has about $60 million of streets and trails (based on 29.42 miles of city streets). Estimating the useful life of these assets at 40 years would require an investment of about $1.5 million annually. The current funding sources of the tax levy, Municipal State Aid and special assessments account for about $940,000 on average per year. This gap in the CIP fluctuates from year-to-year, but will need to be addressed over time. • A property tax levy of $250,000 is being proposed for 2023, which is unchanged from 2022. • The city has been able to self-finance the special assessment portion thus far. However, with the cost of these projects increasing, we may need to eventually look at bonding for the special assessment portion of street projects. Current projections do not include any prepayments of special assessments. • There are sufficient MSA funds to cover the projects included in the CIP for the next 10 years. MSA funds can only be used on Municipal State Aid Streets. • There is a definite need to stay on top of street improvement projects to ensure streets reach their useful lives and don’t require costly premature full reconstructions. Several areas of the city are reaching those crucial ages that significant outlay is needed to ensure the long-term vitality of the streets. • Projects were programmed to try and get the City on a schedule of completing a major street reconstruction project every other year. • The Mounds View High School trail project, Hazelnut parking lot and Perry Park parking lot were added to the CIP. • The 3 types of street improvement projects being considered based on condition are: o Resurfacing is the milling of the top 1.5 to 2 inch surface layer of street pavement and overlaying the street with a new bituminous surface layer. o Full Depth Reclamation involves spot repair of existing curb, milling or reclaiming the full depth of existing bituminous pavement, blending milled material with underlying aggregate material and installing a new bituminous pavement section. o Reconstruction involves removal and replacement of larger quantities of existing curb, installing underlying subgrade correction materials, new aggregate base and a new bituminous pavement section. Public Safety Capital Equipment Fund • The fund is currently being used to account for capital expenditures made by the Lake Johanna Fire Department. • The assumption being used for this CIP is that debt service on the new fire station will begin in 2025 at $195,000 per year and continuing for 15 years. This could be decreased to $155,000 if we were to bond for 20 years. Property tax levy increases are proposed for the years 2021-2025 with a final total levy increase of $225,000. • 2023 budget information has not yet been received from LJFD. Equipment purchases are based on information received last year and are subject to change. Equipment & Building Replacement Fund • The current plan includes replacing the City Hall roof in 2025 and replacing the City Hall air handlers in 2028. • The long-term asset management plan for equipment has not yet been completed so purchases are only scheduled out for 5 years.