10-14-2008 work session packet and minutes

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SUMMARY OF ADJUSTMENT OPTIONS Orono submitted an adjusted 2007 Certification of Mileage by the September 1 deadline set by the MSB. They will be coming into statutory compliance for the January 2009 allocation.The requested 2.98 miles of MSAS system revocations have preliminary approval from State Aid. The final step in this process is for the MSB,with a recommendation by the Combined Subcommittee,to decide if and how a retroactive negative Needs adjustment should be applied. Orono currently requests 25%of their total allotment to their maintenance account.They can adjust this percentage,but they cannot exceed 35%of their total allocation without getting a variance from the Variance Committee. FUTURE ALLOCATIONS No matter which option is selected,the MSAS mileage for Orono will be reduced by at least 2.94 miles in 2009.The MSAS mileage will increase as the 13.84 miles of private roads become public streets. Orono's Needs will decrease from$11,838,061 to approximately$8,000,000 in 2009. By reducing its system size,before any adjustments are applied,and using last years allocation,Orono's 2009 construction allocation will be approximately $178,720 and its maintenance allocation about$59,573. ADJUSTMENT OPTIONS Zero Adjustment The city will receive no retroactive adjustment. Future MSAS allocations would be based on 2.98 fewer miles. One Year retroactive adjustment Orono has received Needs on these 2.98 miles for at least one year after they self reported in April 2007. Based on actual Needs of the revoked segments,this would be a$3,883,575 Needs adjustment or approximately$55,496 in actual dollars. Repayment could be lump sum or multi year One and 9/12 Year retroactive adjustment Orono has received Needs on these 2.98 miles for one and 9/12 years after they self reported in April 2007. Based on actual Needs of the revoked segments,this would be a$6,765,464 Needs adjustment or approximately$96,678 in actual dollars. Repayment could be lump sum or multi year Two Year retroactive adjustment Orono has received Needs on these 2.98 miles for two extra years after they self reported. Based on actual Needs of the revoked segments,this would be a$7,726,094 Needs adjustment or approximately$110,406 in actual dollars. Repayment could be lump sum or multi year. Five Year retroactive adjustment Historically,a five year adjustment has been computed when the first year of the inequity cannot be easily determined. Based on actual Needs of the revoked segments,this would be a$17,688,164 Needs adjustment or approximately $252,764 in actual dollars. Repayment would have to be multi year. 51