CCP 03-17-1997 - Laserfiche WebLink

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I' I f' CITY OF ARDEN HILLS MEMORANDUM I DATE: March 14, 1997 TO: Brian Fritsinger, City Administrator I FROM: Terrance Post, City Accounta~ I SUBJECT: 1997 PMP Funding Impact I Background As the 1997 budget was being formulated it was assumed that, due to the unusual nature of the streets contemplated for reconstruction (i.e., "one-sided" frontage roads), the PIR Fund balance I would be negatively impacted. The adopted 1997 budget assumed the PIR Fund will carry assessment receivables of $237,000 and absorb a fund balance reduction of $168,000 to finance project cash flow requirements. These two components make up the PIR Fund 1997 Street I Improvements net expenditures budget of$405,OOO. Ie Issues The scope of work contemplated in the bid specifications would cause an additional budget shortfall in the PIR Fund of approximately $70,317. A secondary issue is that the proposed I reconstruction assessment rate of $43.21 per assessable foot represents a significant increase from prior assessment years. I Discussion I have prepared several analysis schedules to assist Council in their deliberation ofthis matter at the March 17, 1997 Worksession. I Schedule Description Baseline Impact of Assessment Notices previously mailed Variation #1 Assume reduction of 1997 Reconstruction Rate to 1996 Rate I Variation #2 Assume reduction of 1997 Reconstruction Rate to 1996 Rate * 1.03 Variation #3 Impact of Deleting Hamline Avenue from Project Scope Variation #4 Impact of Deleting Snelling Avenue from Project Scope I Variation #5 Impact of Deleting both Hamline and Snelling Avenues from scope I Observations 1. The discussion on assessment rates has an approximate $40,000 impact on the PIR Fund balance. I -~ 2. The decision on project scope has the most dramatic impact on the PIR Fund balance. fI The deletion of either/or Hamline or Snelling A venues from the project scope would result in positive 1997 PIR Fund budget performance. I