CCP 12-26-1995 - Laserfiche WebLink

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I I Fernwood A venue Financing {' This portion of the 1996 Street Improvements Project may be funded through a variety of sources. The primary sources of funding for the reconstruction of Fernwood A venue will be the Municipal I State Aid monies and assessments to benefitted properties. Other potential sources for financing this project consist of the City's Surface Water Management Fund and utility maintenance funds, as required. It has been the City's policy to assess improvements to the abutting properties in I accordance with the City's assessment policy. This includes both typical residential improvements and MSAS projects. This policy allows the City to utilize its MSA dollars to the maximum extent possible in the maintenance of its 30 miles of City streets. I The City's Assessment Manual outlines the method of determining the assessment to benefited properties abutting the improvements addressed previously. The street reconstruction portion of I the Assessment Manual indicates that industrial property is assessed at a rate equivalent to 70% of the cost for the reconstruction of a typical commercial street in Arden Hills. Based upon the estimated costs of reconstruction, the 70% assessment eligibility as outlined in the Assessment I Manual, and approximately 3,570 assessable front feet of industrial frontage, the assessment calculation is outlined below. I Fernwood Reconstruction Assessment Ie Estimated Street Reconstruction Cost $305,000 Estimated Assessable Amount (70% of Commercial Street Cost) $213,500 I Total Front Footage to be Assessed (divided by) 3,570 Estimated Reconstruction Assessment Rate (Commercial) $59.80/FT I The actual final assessment rate will be established by City Council resolution at a later date. I It is anticipated that Fernwood Avenue will be placed on the City's Municipal State Aid system in early 1996. Therefore, the road would be eligible for the use of these funds for its I reconstruction. As of December 1995, the City had an MSA construction fund balance of approximately $501,000 less approximately $361,000 allocated to County Road F and Stowe Avenue in 1995. The anticipated 1996 allocation is approximately $200,000. Virtually all of the I reconstruction of Femwood Avenue would be eligible for State Aid funds, making this another source of funding for the project. I Finally, approximately $110,000 of this project cost consists of storm sewer and concrete curb and gutter improvements that would be eligible for funding from the City's Surface Water I Management program fund. Based upon this proposed assessment rate, it is not anticipated that any general revenue sources will be needed to fund the project. t' Water and sewer utilities have not yet been evaluated to determine repair or replacement needs. Any work completed in these areas would be funded from the City's Sewer and Water Utility I FEAS~520.068 -8- 520-068-10