2007-07-26_AgendaPacket - Laserfiche WebLink

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The RWMWD will fund its implementation program using three primazy sources: 1. Property tax levy 2. Grant funds 3. Local cost-share funding Approximately 95 percent of the RWMWD's funds for implementing capital projects, programs, and other operations are raised through a properly tax Levy. This tax is an ad valorem tax (a tax on all taxable parcels in the District that is based on property value). In the Twin Cities metropolitan area, watershed districts have the authority to levy au ad valorem tax to pay for the costs of implementing their watershed management plan. This includes costs related to the District's operations (facilities and staff), programs, capital improvement projects, and maintenance. The District also has the authority to finance large capital proj ects by selling bonds or securing loans. The current District financing approach is to pay for District capital improvements in the year they are constructed, if possible. Projects in excess of approximately $1 million may be financed in multiple years (e.g., The Kohhnan Basin project, 1994-1999, was broken into multiple phases and financed by the capital improvement budget each year), or through bonds or loans. As noted below, the RWMWD has issued its own bonds; if needed, the RWMWD plans to issue its own bonds in the future. Current and past bond issues and loans and their original amounts are listed below: ~`, ~ 800,000 ~ 600,000 l~)~>5 $ 1,800,000 1980 I $ 6,000,000 2005 ~ ~ 2,400,000 through Public Facilities Authority (PFA)~ through PFA _ MPCA water quality project loan (zero interest) bonds sold by Ramsey County District bond issue Beltline Interceptor Repair I bonds Beltline Interceptor Repair II bonds Tanners Lake Water Quality Improvement Project loan Battle Creels Project I ~~ ~ ~ ~ bonds ~ District Office Building bonds Grants and loans make up a small percentage of the RWMWD's funding sources. The District will continue to apply for grants and loans to offset project costs whenever possible and cost effective. However,. grant and loan programs change frequently as existing grant/loan amounts and priorities change, new grants/loans become available, and existing programs are terminated. The RWMWD will also seek partnerships, or cost- sharing, to reduce its portion of project costs. The amount of the RWMWD annual levy must be determined and justified through the District's annual work program and budgeting process. The District has used this financing mechanism since its inception. As a guiding principle, the RWMWD intends to restrict its annual levy to be in a range of approximately $4 to $5 million. This will maintain a relatively level property tax rate of approximately 2.5 percent or about X25 per ~ 100,000 of property value. Based on 2005 property values, a tax rate of 2.5 percent would raise approximately $4 million. This tax rate will allow the RWMWD's levy to grow at approximately the same rate as the increase in property values. This self-imposed tax limit requires that the RWMWD establish spending priorities to assist the Board in decision-making when there is a high demand for the District's programs. Page ~ 9 .~.~~_ Ramsey-Washington Metro ~~"'. District