09-26-2016 Council Packet - Laserfiche WebLink

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May 2015 Council of directed Staff to provide a by year maintenance and reconstruction plan for the Levy next five years. June 2015 Council reviewed a sample five year plan and the impacts to the Levy to fund the plan. Tax Council provided guidance to create a funding source for Pavement Management Fund Work with a dedicated Levy of $183,000. December Council deferred decision on road maintenance projects for 2016. Setting April of 2016 2015 as the date to review road planning and funding. April Council selected roads for Mill and Overlay but moved road funding discussion to the 2016 May work session May 2015 Council directed funding discussion to be held concurrently with 2017 budgeting on discussions. 2. Street Funding. Distributing the pavement maintenance and reconstruction requirement per the City's Pavement Management Plan over a 10 year period, results in a funding requirement of $550,000/ yr for Maintenance and $500,000/yr for Reconstruction for a total of $1,050,000/yr. The $183,000 dedicated to the Pavement management fund for 2016 represents 17% of the requirement leaving a funding deficit of $867,000/yr. Based on current projections the City could dedicate another $218,000 the Pavement Management levy for a total of $401,000 without raising the tax rate. This represent 38% of the requirement leaving a deficit of $649,000. The table below shows the impact of these costs on the Levy. The second table depict Levy impacts if the City were to fully fund the Street Maintenance and Reconstruction. a. Tax Levy Impacts of Funding Street Maintenance & Reconstruction Requirements. (Total Annual PMF Revenue = $401,000) Type of Street Annual Levy Tax Rate Tax Tax Tax Tax Work Cost Increase Increase Impact Impact on Impact Impact ($) (%) (Percentage on $546K on $1M on $2M Points) $250K Home Home Home Home (Median) Maintenance $218,000 4.4% .71 $17 $40 $80 $168 Reconstruct $0 10.09% 1.62 $ 39 $ 81 $ 182 $ 385 Total $218,000 4.4% .71 $17 $40 $80 $168 b. Tax Levy and Franchise Fee Impacts of Fully Funding Street Maintenance & Reconstruction Requirements. (Total Annual PMF Revenue = $1,050,000) Type of Street Annual Levy Tax Rate Tax Tax Tax Tax Work Cost Increase Increase Impact Impact on Impact Impact ($) (%) (Percentage on $546K on $1M on $2M Points) $250K Home Home Home Home (Median) Maintenance $167,000 3.37% 0.54 $ 13 $ 27 $ 61 $ 128 Reconstruct $500,000 10.09% 1.62 $ 39 $ 81 $ 182 $ 385 Total $667,000 13.46% 2.16 $ 52 $108 $ 243 $ 513 3. Road Budgeting for 2017. The tables below depict preliminary/ potential budgeting numbers for 2017 based on projected Pavement fund balances. The first table shows what would be possible with Pavement Levies that partially fund the PMF. The third Column depicts the fund balance without a Pavement Levy increase of. The fourth column depicts the fund balance assuming a 2017 road levy of $218,OOOlevy increase of $218,000 for a total levy of $401,000. The second table shows what would be possible with a fully funded Levy for the PMF. More detailed estimates will be provided in the 2017 Public Works Plan which will take into account Council budgeting direction. 2