2012-11-27_PWETC_AgendaPacket - Laserfiche WebLink

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Page 4 of 4 127 The subcommittee notes that the annual capital cost estimates for the Parks and Pathways areas 128 as they are represented in this report do not yet reflect the recommendations of the Master Plan 129 implementation process, but are rather best staff estimates at this point, although the totals 130 involved represent the needs outlined in the Master Plan, and associated cost estimates. 131 132 133 Street Repair /Replacement and Street Lighting Capital Needs. While there is a significant 134 funding shortfall projected for Streets and Street Lighting capital needs, the subcommittee does 135 not recommend taking a specific action for at least 3 years to correct those shortfalls. This is at 136 least partly because the primary source of funding is State MSA (Municipal State Aid — i.e. gas 137 tax) money, which has been decreasing recently due to changes in driving habits, and which may 138 be re- configured by the legislature in the coming years. In addition, the Street Maintenance 139 Fund balance, which is typically maintained at about $11 million in order to support the interest 140 earnings that are applied to annual street projects, has grown to about $13 million at this time, 141 which allows for some time to consider a plan of action for street funding once any potential 142 State funding changes are better known. 143 144 The subcommittee does recommend the following near -term actions related to Streets and Street 145 Lighting capital funding: 1) Monitor any changes to MSA funding at the State level; 2) Consider 146 revising the current policy with respect to Pavement Condition Index (PCI) standards for 147 replacing City streets; and 3) Consider reviewing the ability to adjust the City assessment policy 148 to provide some additional funding for street projects to make up for decreased MSA funding. 149 All of these topics would be appropriate to charge to the Public Works, Environment, and 150 Transportation Commission for study. 151 152 153 Other Recommendations. The subcommittee further recommends that, if the State follows 154 through on a plan to re -work the Market Value Homestead Credit program for 2012 and beyond 155 in such a manner that the City's approximately $450,000 in current annual excess levy is no 156 longer required to cover the lack of MVHC reimbursement from the State, that excess levy 157 capacity be applied toward tax- supported capital funding needs — either to reduce the impacts of 158 the recommendations in this report, or to fund other capital needs.