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<br />FINANCE PLAN <br />There are approximately 26 miles of street scheduled to be reconstructed as part of . <br />this program at an estimated cost of $27.6 million dollars. The City will also perform <br />major maintenance activities such as mill and overlay (replacement of the bituminous <br />surface) and minor maintenance such as crack filling and seal coating on an <br />additional 17 miles of streets. <br /> <br />Funding for this program wili be derived from several sources, including a general tax <br />levy. This program does not use special assessments as a funding source. Special <br />assessments may be used only for major maintenance projects (mill and overlay) to <br />non-residential properties. <br /> <br />There were several finance parameters that were reviewed and discussed by the <br />Task Force. The Task Force recommendations are summarized as follows: <br /> <br />. Program Length. The Street and Utility Improvement Program will be <br />reduced from 18 to 9 years to rehabilitate streets that are candidates for <br />reconstruction. <br /> <br />The Task Force has made a recommendation to proceed with construction of <br />a project in 2008. However, given the limited time to develop such a project, it <br />is highly probable that should this program proceed, construction on the first <br />project will commence in the spring of 2009. <br /> <br />. . Assessments. Finance the program with NO DIRECT ASSESSMENTS to <br />. property owners. <br /> <br />. TIF. Maximize the use of the City's Tax Increment Financing Fund (TIF) to <br />finance this program. <br /> <br />. <br /> <br />Tax Levy. US<;l a city-wide tax levv of approximatelv $400.000 per year over <br />the ten year period. This will increase the taxed amount on all properties in <br />Mounds View. The taxed amount on a median-valued home ($200,000) is <br />estimated to be approximately $100 each year over ten years. The levy <br />amount is subject to adjustments based the assessed tax value of your <br />property. <br /> <br />For the cost of two McDonald's value meals per month, the average tax levy <br />contribution could provide the necessary funds to rehabilitate Mounds View's <br />aging infrastructure. <br /> <br />For comparison, the assessment to individual properties for the cancelled <br />2007-08 street project was estimated to be over $3000. <br /> <br />The City will be seeking public input on using a city-wide tax levy to fund a <br />portion of this program. <br /> <br />-8- <br />