4.0. SR 04-03-2000 - Laserfiche WebLink

Home Browse Search

East Elk River Page 2 of 2 After using MSA funds for the city share of the street project, the project then needs about $810,000 from the city for trunk storm drainage improvements and this is planned to be financed mainly with SWM monies. Some brief history regarding the status of the SWM fund is in order. In 1994, the city discussed a number of options for funding its major SWM projects. Ultimately the City Council decided that a general city-wide tax levy was the best approach to fund necessary projects. This approach was approved by the City Council and the first tax levy was received in 1995. By spring 1995, the city had spent over $1 million on improvement projects (Deerfield III, Highway 10/101 intersection, and County Roads 12/13 area), and had plans to spend over another $1 million within the next year. The 1995 tax revenue was estimated at $210,000 with a projected increase to $240,000 in 1996. This levy was planned to continue for the foreseeable future and to increase with inflation. Over the last few years, some of this SWM levy has been "moved around." Part of the levy has been, and continues to be, dedicated toward the storm sewer bonds and some of the levy has been, and continues to be, received in the SWM fund for general projects. However, a few years ago, the council decided to move some of the SWM tax levy into the development fund. Approximately $135,000 to $145,000 of the SWM tax levy was shifted to the development fund and the last year of this "commitment" is 2001. Accordingly, the plan calls for the SWM tax levy to increase by $145,000 in 2002 and the development fund tax levy to be eliminated. Following this plan is essential in order to have funds available to finance the storm sewer component in the east Elk River project and to fund future SWM projects (such as major ditch improvements or improvements related to Western Area Phase V). The street and storm sewer participation by the city is a little higher than expected a few years ago, based on the high cost of the right-of-way and on TIF 18 funds (Morrell project) not being available to help fund the railroad crossing at 171st Avenue. As the council may recall, TIF 18 was decertified in 1998. However, as previously reviewed with the council, city MSA and SWM funds are available to finance the project, but it is a major commitment by the city for development of east Elk River. Another financial issue, but one that is slightly different than what is discussed above, also needs to be reviewed by the City Council over the next few months. This issue is the city matching funds requirements for the federal street grants and the TIF 19 project. The federal street project requires the city to have about $600,000 in matching funds, and this is planned to be met by way of using MSA funds. TIF 19 has a $900,000 local contribution requirement, and we believe that most of this match can be realized with the work at the Main Street/Highway 169 intersection.