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Regular City Council Meeting Monday, October 19, 2015 Page 5 interest earnings for the PMP. Mr. Miller opined that he didn't see the low inter- est rate environment changing dramatically in the foreseeable future. Mr. Miller further noted that the MSA allotment has remained stagnant and not growing as it did at one point, thus not going as far as it used to while the cost of projects and inaintenance continued to rise. Mr. Miller noted that this created a fiinding chal- lenge for the annual PMP, a dynamic that was not in evidence 6-8- years ago. Mayor Roe noted that due to this endowment fund and use of interest earnings, property owners in Roseville had not been assessed in any significant degree for street projects and improvements, making the City's assessment rate low com- pared to other communities. Mr. Miller concurred, noting preliminary discussions by the City Council over the last few years to determine if the assessment policy was still appropriate in to- day's construction and economic climate. Councilmember McGehee noted that the PMP endowment fund had been adver- tised to the coinmunity as a fund that would be maintained and questioned the ex- tent of the MSA reduction or cost of maintenance/street replacements and their net effect. Mr. Miller advised that the net effect was the additional cost of street replacement relative to a stagnant MSA fiind if coinpared in the past and then again over the last 7-8 years. Without hazarding a gt.iess, Mr. Miller deferred to Public Worlcs Director Mark Culver for any detailed comparisons that could be provided at a later date once researched by staff based on when the PMP was initiated in ap- proximately 1987 as a dedicated levy was established for the PMP endowment. Noting that this endowment had been a significant hit for taxpayers to support, Councilineinber McGehee aslced staff for more information on what it would look lilce for residents to have their streets reconstructed without that endowinent in place, and how significant that hardship would be; especially recognizing that a new PMP replacement cycle would be coming up soon. Mayor Roe noted that the policy for this PMP fund had been recently revised as recommended by the Finance Commission, to retain it at a level between $8 and $12 million. Mr. Miller noted that this was the recommendation, but it was not yet reflected in the graphs presented tonight. Mayor Roe noted the need for a City Council decision by 2025 given the chal- lenges already being experienced in MSA and interest earnings to the PMP fund. Park Improvement Fund (PIF�