2012-11-27_PWETC_AgendaPacket - Laserfiche WebLink

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Page 6 of 10 192 Street PMP. The Street PMP program is the annual scheduled repairs, refurbishment, or 193 replacement of City streets in order to maintain a Pavement Condition Index of 80 or greater, 194 which optimizes the life of the pavement. The Street PMP program is currently funded by 195 between $1 million and $2 million per year in State MSA (gas tax) funds, and about $300,000 to 196 $500,000 per year in interest earnings on the $13 million Street Replacement endowment fund. 197 Without changes to the funding, the program begins to spend down the endowment fund 198 significantly starting in about 2016, running the fund below a zero balance by about 2028. 199 200 Without the State making changes to the MSA funding for the City, the City must supplement 201 the annual costs for Street PMP projects with property taxes or property assessments, or other 202 funding. The Subcommittee recommends using a combination of funding sources to address the 203 shortfall, as follows: 204 • In 2015, repurpose for Street PMP the current $160,000 ongoing annual levy that goes to 205 debt service on existing street bond #25 when that bond is retired. 206 • In 2016, repurpose for Street PMP the current $150,000 ongoing annual levy that goes to 207 debt service on existing street bond #23 when that bond is retired. 208 • hi 2017, add an additional $160,000 of ongoing property tax levy funding for the Steet 209 PMP 210 • In 2018, add another $160,000 of ongoing property tax levy funding for the Street PMP 211 • In 2019, add another $200,000 of ongoing property tax levy funding for the Street PMP, 212 totaling an additional $520,000 of ongoing property tax levy for Street PMP going 213 forward 214 215 Of the $830,000 total increase in annual ongoing funding for Street PMP over that 5 -year period, 216 about 63% comes from additional property tax levy funding and about 37% comes from 217 repurposing existing property tax levy funds. 218 219 220 Park Facilities and PIP. Park Facilities are generally repaired, refurbished, or replaced through 221 Park Facilities capital funding and the PIP (Park Improvement Program). Currently (as of the 222 2012/13 biennial budget plan), $0 each year goes toward Park Facilities and $40,000 per year 223 goes toward the PIP. As noted above, the Park Renewal Plan addresses a backlog of near -term 224 Park Facilities Costs. However, without additional funding, the next 20 years of Park Facility 225 capital needs will be unfunded by about $9.4 million. 226 227 The Subcommittee recommends using a combination of funding sources to address the shortfall, 228 as follows: 229 • In 2016, add an additional $160,000 of ongoing property tax levy funding for Park 230 Facilities and PIP capital needs. 231 • hi 2020, repurpose about $650,000 of the $825,000 total ongoing annual levy that goes to 232 debt service on existing city hall and public works facility bond #27 when that bond is 233 retired. (This leaves $175,000 of that ongoing debt service levy to either apply to levy 234 reduction or other needs that may become apparent by 2020.) 235