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<br /> a I <br /> CITY OF ARDEN HILLS I <br /> MEMORANDUM <br /> .. <br /> DATE: November 20,1996 <br /> TO: Brian Fritsinger, City Administrator I <br /> FROM: Terrance Post, City Accountant @ I <br /> SUBJECT: 1997 PMP Funding <br /> I <br /> Back~round I <br /> At the November 12, 1996 City Council Meeting, the Feasibility Report for the 1997 Pavement <br /> Management Program (PMP) was received. A discussion item that emerged \vas that, of $71 0,000 I <br /> in total estimated project costs, only $557,700 was "covered" in terms of budgeted 1997 General <br /> Fund expenditures ($192,000), surface water management utility allocated expenses ($93,000) and <br /> PIR assessment costs ($272,700). I <br /> Issue <br /> If the full scope of 1997 PMP project work is undertaken, how would the $152,300 ($710,000 less .. <br /> $557,700) shortfall be funded? <br /> Request . <br /> Council directed staff to examine the assessment interest income stream since adoption of the <br /> Assessment Policy (i.e. since taxes payable 1992) to determine how this potential revenue source <br /> compared with the estimated 1997 PMP project funding shortfall. I <br /> Findings <br /> From 1992 through October, 1996, the Permanent Improvement Revolving Fund (PIR) has received I <br /> $705,672 in financed street improvement assessment revenue. As all of these assessments have had <br /> an eight percent simple interest factor, the amount of the interest revenue stream can be calculated <br /> at $56,454 ($705,672 · .08). I <br /> Conclusion I <br /> It does not appear that the interest revenue stream from previously financed PMP projects is <br /> adequate to fully fund the estimated 1997 PMP project shortfall. A 1997 PMP project scope <br /> reduction or a policy decision to utilize PIR Fund reserves are alternatives that council may wish to . <br /> discuss further. <br /> . <br /> - .. <br /> I <br />