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bike path for utilization with the overall community <br />transportation system. Currently most of these roads are at a 2:1 <br />to 24 foot width. Actual design decisions would be made at the <br />time specifications for each project were developed. <br />Should the City choose to u e the MSA funds for the construction <br />of County Road 15 it will have a penalty of 5% each year for a <br />total of 10 years or 50% of the total amount of the project. As <br />an alternative the City could use a tax levy commencing in 1989 <br />to fund the portion it feels should appropriately come from <br />general tax funds. Funding from the General Fund would have an <br />attendent interest cost which would either be the cost to bond or <br />the interest lost from internal funds. Utilization of $230,000 <br />in MSA funds would be a net cost to the City of about $28,000 in <br />MSA funds over utilization of general fund sources over the 10 <br />year period at 7% interest. This drops to about 17,000 at 8% <br />interest. Current interest rates for AA rated improvement bonds <br />are about 7%. Interest rate on City investments over the last <br />six months have ranged from 6.7 - 9.9. <br />Bonding or Internal Financing - Should the City choose to fund <br />a portion of the project out of General Fund levies, the choice <br />to bond or fund internally would be predicated on the following: <br />a.) Fund Balance and desired uses of balance <br />b.) Interest rates <br />c.) most of bonding (about $12,000) <br />d.) Amount to be sp•:.:ially assessed (G.O. Bonds for <br />improvements must have a minimum of 20% specially <br />assessed) <br />e.) Levy Limits (If bonded to the levy would be outside <br />the levy limit) <br />This issue will be reviewed over the next few months should the <br />City decide to use a General Fund levy rather than its MSA funds. <br />2. Storm_ Sewer District - The staff continues exploring whether <br />a special taxing district or a utility rate approach to fund a <br />$85,000 portion is most appropriate. It is recommended that this <br />portion be funded from one of these two approaches, and not <br />funded by MSA funds, assessments or part of the General City Tax <br />levy. <br />3. S2ecial Assessments - The major items as noted last time were <br />for the abutting property owners to fund the cost: <br />- Curb and gutter <br />- Driveway aprons <br />- Sidewalks <br />The costs for square footage outlined last time we.e <br />approximately: <br />- Commercially zoned and commercially used property - <br />$18.00 per front foot <br />3 <br />