7.3. SR 01-17-2012 - Laserfiche WebLink

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The increased level of debt from the CIP Bonds is not expected to cause the City any financial stress. The City's bond rating from Standard and Poor's is an AA+, the second highest possible rating. A copy of the rating agency reports are available upon request from the Finance Director. Relative Costs and Benefits of Alternative Uses of the Funds The project will provide for a safer and more efficient work environment for City employees. It will also serve to lower equipment maintenance costs by allowing equipment to be maintained and stored in a temperature controlled environment. The City Council has determined that the benefit of improved work environment, extended life of equipment, and efficiency in delivering services is worth the cost of the project. Operating Costs of the Proposed Improvements The operating cost of the addition to the public works facility is estimated to be $118,700 above the existing operating expenses. UTILITY ANNUAL COST Electrical $ 72,300 Gas $ 46,400 .. .., ___.. ... ._ _._..__..r__ ...... __ TOTAL. $118700 Options for Shared Facilities with Other Cities or Local Government The options to share with other facilities or governments are not advantageous due to the requirement that the public works facility must meet the infrastructure maintenance needs of the entire community. No excess capacity is available in similar facilities located within or near the City limits. Serving other communities or local units of government from the planned new facility would necessitate a larger and more expensive project. The City has explored and allowed shared use of the existing and proposed fueling stations with the County, Elk River Municipal Utilities and the Elk River School District in the future. In addition, the equipment services division performs maintenance on Elk River Municipal Utilities equipment. City of Elk River CIP for Financing Purposes Page 8