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MEMORANDUM <br />TO: CITY COUNCIL <br />FROM: ADAM T. EDWARDS, PE <br />SUBJECT: STREET FUNDING DISCUSSION <br />DATE: APRIL 27, 2014 <br />______________________________________________________________________________ <br />References: <br />A. City of Orono Pavement Management Plan, adopted October 27, 2014. <br />B. MN State Statue 429 – Special Assessments. <br />List of Exhibits: <br />A. Surrounding Community Survey Summary (Prepared by Jesse Sturve, PE; 2014). <br />B. Street Condition Summary, 2014 Pavement Management Plan. <br />C. Street Classification Map, 2014 Pavement Management Plan. <br />D. Street Section and Fund Balance Section of 2015 CIP (Adopted on December 8th, 2014). <br />1.Issue. Currently the City’s street rebuilding and maintenance requirements exceed funding. As an <br />example in 2015 only 27% of the crack and seal coating is budgeted and none of the mill and overlay and <br />rebuilding is budgeted in 2015. While the current balance in the Municipal State Aid (MSA) fund is <br />sufficient for this year’s planned work (Watertown Road), funding 100% of the work with MSA funds <br />will reduce available MSA funding for future projects. <br />Requirements versus Funding 2015 <br />Activity Annual <br />Requirement <br />Per <br />Pavement <br />Management <br />Plan <br />2015 <br />Requirement <br />per the <br />Capital <br />Improvement <br />Plan <br />2015 Budget Annual Fund <br />Allotments <br />(MSA, <br />PMF) <br />% of Capital <br />Improvement <br />Plan <br />Funded in the <br />2015 Budget <br />Crack and Seal Coat $253,396 $254,000 $69,0001 $0 27% <br />Mill &Overlay $324,625 $0 $0 $0 0% <br />Rebuild $729,955 $604,3212 $0 $0 <br />MSA $824,2003 $0 $201,751 24% <br />TOTAL $1,307,976 $1,682,521 $69,000 $201,751 16% <br />1.Casco Point Road Crack and Sealcoat <br />2.Stubbs Bay Road, Balder Park Road <br />3.Watertown Road <br />4.Only a portion of the MSA funds are available as a portion is designated for debt payments. <br />2.Background. For some time the City of Orono has struggled as to how to come up with annual funds <br />to maintain its road/street infrastructure. Currently the City of Orono has approximately $69K allocated <br />for annual street maintenance and $0 for annual street reconstruction projects. The 2015 Budget does <br />include $65,800 for pavement maintenance which is sufficient for potholing, signs and winter <br />maintenance. The Pavement Management Fund (PMF) has $0 and there is $1.27M available through the <br />MSA Funds. The amounts budgeted and available are considerably less that the averages of $540,000 for <br />Page 3 of 49 <br />Item 2