2002_0506_packet - Laserfiche WebLink

Home

From 1987-1998, the City received approximately $7.8 million in MSA construction funds. During that same period, the City expended over $8.5 million on MSA-designated roads, or other permitted uses. Throughout this period, the City also transferred monies to the MSA fund from various TIF Districts, as permitted by State law. In addition, the City maintained a reserve in its MSA Fund (as noted above), which through compounding interest earned nearly $13 million. Had the City not implemented new practices in 1987, these interest earnings would have been realized by the State and not the City. In 1999, the City made another change in MSA policy and accounting practice. With the establishment of the Infrastructure Replacement Fund as the primary vehicle for financing major street maintenance improvements, the MSA Fund, along with other construction funds, were combined to provide a single-purpose fund that would generate interest earnings that could be used for the non-assessed portion of street maintenance costs. It was projected that the interest earnings, along with MSA funds and assessments, would be sufficient to provide the necessary financing for street improvements without having to issue bonds. The residual amount remaining in the MSA Fund that was transferred to the Infrastructure Replacement Fund was $3.9 million. Financial Needs of MSA Roads Staff has reviewed the planned maintenance and reconstruction costs of MSA designated roads for the ne�t 5 years, to determine their funding needs. This includes the City share of County road reconstruction, reconstruction on local MSA streets, and mill and overlay projects on local MSA streets. In determining these funding needs, some assumptions were made. They include the following: . The average reconstruction cost of MSA streets is $275 per lineal foot. . For each planned project, an estimate of the lineal feet to be included has been made. . All project costs and impacts are shown in current dollars, and are based on current MSA design standards. . All impacts are estimated holding all other factors constant. Over the next five years, it is estimated that the City will incur approximately $1,300,000 in City-share of County road reconstruction, $3,700,000 in City MSA street reconstruction, and $830,000 in mill and overlay projects. All costs combined produce a 5-year average of appro�mately $1,167,000 per year in MSA reconstruction and majar maintenance costs. Under the current assessment policy, the City expects to receive approximately $291,000 annually in assessments. (This would actually be received over a period of years, but for purposes of this analysis it is assumed that they are collected in one year). This leaves a funding gap of appro�mately $876,000 per year for planned expenditures on MSA streets. The City's current State-aid apportionment for construction purposes is $787,000 annually. Attachment A -2-