03-24-2003 Council Packet - Laserfiche WebLink

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•' ------------ REQUEST FOR COUNCIL ACTION MAR24 2^VUJ DATE: March 24,2003 ' ITEM NO,\ Department Approval: Name Gregory A. Gappa Title Director of Public Services Administrator Reviewed: ?• Agenda Section: Public Service Director's Report Item Description: Funding of City Street Improvements Study- Resolution The League of Minnesota Cities has published a report on the funding for construction and maintenance of city streets. The executive summary from this report is included for your information. This report has been distributed to cities and to all state legislatures. In summary, this report provides an in depth review of the current city street system network and available sources for the funding of city street construction and maintenance projects. The current system of funding is inadequate to provide the necessary financial resources to improve and maintain city streets. The existing funding sources such as special assessments have limited applications and are difficult to use because of statutory requirements to prove a benefit from the projects. For example, the City has previously experienced difficulties in using special assessments to finance sanitary' sewer projects. The current State financial situation is making this problem even more difficult as city revenues are being reduced along with constraints imposed on cities ability to raise revenue. The purpose of this study is to document the extent of the existing problem and to provide recommendations on possible alternative funding mechanisms for financing city street construction and maintenance projects. However, many of this alternative funding mechanisms will require legislative changes in State Statues. For example, one of the proposed funding options recommended is that cities be given authority to implement street utilities as a possible funding source. A street utility would operate similarly to water and sanitary sewer utilities which have been successfully used by cities for many years. There is currently a bill to allow street utilities under consideration in the state legislature. This resolution will be submitted to the League of Minnesota Cities and to Orono’s State Senator and Representative. This resolution has already been approved by about 100 cities, and it will be used to show legislative support for providing more options to local units of government for the financing of street maintenance and construction projects. Our staff recommendation for Council approval of this resolution. COUNCIL ACTION REQUESTED: Motion to approve resolution supporting the League of Minnesota Cities Study on Funding Streei: Construction and Maintenance in Minnesota Cities.