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'ity of <br /> <br />'ver <br /> <br />FROM: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br />MEMORANDUM <br /> <br /> Mayor and City Council <br /> <br /> Lori Johnson, Asst. City Administrator <br /> <br /> April 15, 1996 <br /> <br /> CIP Discussion <br /> Surface Water Management Fund <br /> <br />Attached is additional information regarding the Surface Water Management <br />(SWM) fund. As you can see this fund has total current obligations of over $2 <br />million. Of that, over $1.8 is related to debt service obligations. In addition <br />to the existing debt, it is anticipated that bonds will be issued to fund the <br />already completed Main Street and Evans Avenue improvement project and <br />possibly to fund some upcoming 1996 projects which may include Highway 10 <br />frontage road at Joplin Street and Ditch 28. <br /> <br />In addition to bond obligations, the SWM fund owes $188,000 to the Capital <br />Projects fund for costs incurred in 1992. As of this date no repayments have <br />been made to the Capital Projects fund and no definite payment schedule is <br />set. Unless this obligation is forgiven, a payment plan should be initiated so <br />that these funds are eventually repaid to the Capital Projects fund. <br /> <br />The current debt outstanding is retired in the year 2009 with the exception of <br />the western area obligation which will be paid in total in the year 2006. <br />Additional Main and Evans debt would probably continue through the year <br />2011. The average annual debt service for these three issues would be <br />approximately $205,000. This leaves approximately $35,000 available for <br />either repaying the Capital Projects fund, funding engineering studies, minor <br />repair and maintenance to existing storm drainage systems, or for future <br />debt. If growth continues in the city's tax base, the levy which has been set <br />at 2.5 percent of the net tax capacity will obviously increase. However, <br />without additional increases in the tax levy, the ability to pay additional debt <br />service and fund future projects becomes very limited. <br /> <br />Staff is recommending that bonds be issued to finance the Main and Evans <br />improvements and any other major SWM projects the Council wants to be <br />initiated in 1996. This bond issue is planned to be issued along with the <br />WWTP expansion bond. Any TIF No. 2 bond would be used to reduce the <br />size of the bond issue. <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />