09-11-2000 Council Work Session - Laserfiche WebLink

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r i Capital Expenclitures-2001 and Beyond August 22, 2000 Page 5 Permanent Improvement Revolving Fund This fund is used to provide interim financing for projects that have other long-term financing sources. The fund also includes an amount of $325,000 for emergency situations, such as a natural disaster. In recent years, the City has begun to levy $45,000 per year for storm sewer improvements, and $35,450 per year for street overlays. Park Fund The Park Fund is used to account for park dedication fees, and to account for capital expenditures related to parks. The most significant potential capital expenditure in the Park Fund is the purchase of the property at 3770 Shoreline Drive, which is adjacent to the property recently purchased by the City as parkland at 3790 Shoreline Drive adjacent to the Hennepin County Public Works facility. The City paid $160,000 for the property at 3790 Shoreline Drive. MSA Fund It, V. The balance in the MSA Fund as of 12/31/99 was $150,900. The City receives approximately $255,000 per year of MSA funding for capital projects. The City received three years of advance MSA funding to enable the City to pay its share of the Femdale Road project. Due to the cul-de- sacing of Stubbs Bay Road at Highway 12 and the planned replacement of the bridge over the Burlington Northern Railroad on Willow Drive as part of the Highway 12 upgrade project, the highest priority MSA projects have been addressed. Sewer Fund For a number of years, the Sewer Fund budget has included approximately $90,000 per year for lift station upgrades. This has been sufficient to upgrade one of the City ’s large lift stations each year. By the end of2001, all of the large lift stations will have been upgraded. For 2001 and beyond, the $90,000 of funding will enable a minimum of three lift stations to be upgraded. In addition to the lift station rehabilitation, the Sewer Fund budget includes $40,000 per year to be used to reduce infiltration and inflow of surface water into the sewer system. This work has two benefits: first, it substantially extends the life of the sewer lines; secondly, by reducing I & I, it reduces the City ’s costs for sewer treatment. Water Fund The 2001 Water Fund budget includes only minor capital expenditures. However, within the next five years, the Navarre water tower will need to be repainted. Depending on the condition of the tower, and the need for removal and disposal of lead paint, the cost for this project will be in the range of $150,000 - $250,000.