4.1. SR 06-02-1997 - Laserfiche WebLink

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out of the MSA fund, it does not appear possible to do all of the above projects in the next year or two. We can bond and advance encumber monies for these projects, but even then some of the above projects may still need to be delayed and we won't have enough monies available for a number of years for other projects. Staff needs help from the City Council in prioritizing the use of MSA funds. o There is not enough money available to do all of the street work that is desired or programmed. Please see the MSA, Capital Projects, and Streets (landfill) finances pages. For example, when you look at the Capital Projects page, you will see that there are some 1997 planned expenses for Macon Street, Riverview Drive, and the holding of trunk assessments in this area that are not funded. Additionally, some extra Highland Avenue street and sidewalk work is under consideration. This lack of available funds is also true when you look at the Dodge Avenue and 5th Street project (which most likely will not happen until at least 1998). With regard to street projects, the City Council needs to prioritize its goals and identify which street work is most important. Another issue related to lack of funds to do street work is the need to identify a long term recurring source of revenues to finance necessary street projects. At the first 1997 CIP worksession the idea of a city wide levy was discussed, but with levy limits being required on cities, this approach may no longer be a realistic. It is planned that the use of the Development Fund will be for industrial activities. It is suggested that this fund be used for land acquisition and public improvements for industrial sites which the city can market, or for public improvement assessment agreements with cooperative property owners that control industrial properties. The assessment agreement approach is our preferred route for use of the Development Fund and this may very well be what happens in the western area of the city. If the Development Fund is used in this manner in the near future, then the city has another financial concern as it relates to the east Elk River trunk sewer and water project. This east Elk River project is going to happen some time in the near future, but all indications are that this project does not cash flow based on $6,000 per acre being assessed out to the benefited properties. This means that a city subsidy is required. Depending on the scope of the project, the city subsidy could approach the $1.5 million range and this subsidy is not located