01-26-1998 CC MIN - Laserfiche WebLink

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ELk River City Council CIP Worksession January 26, 1998 Page 3 collected and which would make the actual shortage in the $350,000 range. Nonetheless, even if only Area A was constructed, TIF funds from the redevelopment project would still be necessary in order fo make up the utilities shortage. Storm Drainaqe - The total cost for the large project, Area C, was estimated at $1.7 million. Of this amount, approximately $500,000 can be collected through assessments and impact fees charged to the developers of the Earl H. and Waddy S. properties. This leaves a shortage of approximately $1.2 million. However, it was noted that not all of the storm drainage system will be built at once and that parts will be constructed as development happens and as the water runoff requires facilities to be installed. Additional assessments and impact fees may also be able to be collected as development takes place. Initially it is estimated that only about $1.1 million in expenses will be required for the storm drainage system (instead of $1.7 million), and this amount minus the assessments/impact fees will leave a shortage of $600,000. The additional shortage for the total project, which is up to another $600,000, will need to be dealt with as these improvements are required. It is hoped that sufficient TIF funds from the Hohlen trailer court redevelopment project would be available to help offset this shortage, but the TIF figures are not known at this time. If no additional funding from a TIF project is available, the only other sources of monies that the city has to finance this shortage is its surface water management (SWM) fund or a city wide tax levy. The SWM fund has approximately $55-60,000 available per year for the next four years. This amount excludes any impact fees that may be received. In the year 2002, the City Council is scheduled to move some of its development fund levy back into the SWM fund so that a total of approximately $190,000 per year would then be available for SWM projects. Using only the SWM fund for the $600,000 shortage may require all available funds up to and maybe through the year 2003. This could eliminate the use of SWM funds for other drainage projects. Additionally, up to another $600,000 in shortages is anticipated which could use all the available SWM tax levy funds for an additional three years. The shortfall with Area A, the smaller project, is in the $325,000 range and could require all of the SWM tax levy for the next 4-5 years. Paying off the shortage of either project over a longer period of time by bonding for the project may provide the city with some flexibility in funding other SWM projects. Other SWM projects on the horizon may include the Western Area Phase III project, improvements to Ditch 28, and work required with any core village reconstruction program. Streets - The total cost of the street for Area C from County Road 13 through County Road 12 to 171,t Avenue, constructed to four lanes, is estimated at $3.7 million. Approximately $1.5 million of this total would be assessed to the developers. This leaves a shortage for the total street