6.7. SR 10-08-2012 - Laserfiche WebLink

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Elk REQUEST FOR ACTION River TO ITEM NUMBER Mayor and City Council 6.7 AGENDA SECTION MEETING DATE PREPARED BY Work Session October 8, 2012 Justin Femrite,P.E., City Engineer ITEM DESCRIPTION REVIEWED By Assessment Manual/Policy/Funding Options Tim Simon, Finance Director REVIEWED BY Cal Portner, City Administrator ACTION REQUESTED Discuss the city assessment procedures and provide policy direction on street project funding and associated updates to the Assessment Manual. BACKGROUND/DISCUSSION At the July 9, 2012, City Council work session, staff gave an overview of our pavement management program. The overview explained the program methodology, highlighted existing pavement conditions, and discussed the trending of city street maintenance over the next 40 years. Councilmember Westgaard posed a question regarding our current practice for funding the pavement management program with private property assessments or whether an alternative funding source should be considered. Staff will address the advantages and disadvantages of special assessments verses other funding sources of the pavement management program. If the Council concludes that special assessments are the preferred funding option,we will review some policy questions that should be considered in the update to the assessment manual. Staff has already begun work to update the assessment manual. Pavement Management Program Funding Our existing pavements are in relatively good condition with a high average pavement rating. The large growth experienced over the last 20 years has brought with it many more miles of streets. This has resulted in a larger system to maintain and budget for improvements. Maintenance and improvements include sealcoats, overlays, reclamations, and full reconstructions. At the July work session,the Council was informed that in order to maintain the current average pavement condition of our street system, additional funding is required to support the larger projects. Following are two options to consider for future projects. Option#1. In order to meet the increased funding needs for larger projects,the levels at which the projects are assessed to adjacent properties could be increased. Elk River has historically funded street improvement projects through a combination of assessments, state aid funding, and bond sales. Up to now,this funding approach has satisfactorily met the system's needs. If this option is continued, the private property assessments and bonding amounts need to be increased to carry out the plan. The attached spreadsheet shows the projections for the Street Improvement Reserve Fund if assessments are continued at the same rates. P a w I R E a 9 Y NA UR