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I
<br />
<br /> REVISFF THE PRIORITY STREET LIGHTING FINANCING ISSUE
<br /> By: JesSie Hart, Finance Officer and Steve Jankowski, City Engineer
<br />
<br />Background:
<br />
<br />The issue of priority arljerial street lighting was discussed at the Finance Committee meeting on June 28, 1994,
<br />and again on July 26, 1994. In addition to revisiting the option of billing residential properties, it was requested
<br />to review past Ramsey ~esident Newsletters to see if an article/survey had been published regarding street lights
<br />and the resident's inter~i t in them.
<br />
<br />It was found that the COuncil held a public hearing on July 24, 1990, to receive citizen comments regarding the
<br />issue of street lights in [hew and existing areas. Generally, the citizen comments received were in favor of street
<br />lights being installed a! major intersections and possibly at regular intervals throughout urban neighborhoods.
<br />Staff was directed to p~,epare a Street Lighting Policy, which was adopted in 1992, that outlined the difference
<br />between priority and subdivision street lights and established a priority list. At that point, the process stagnated
<br />with no identifiable funding source. Since that point in time, there have been numerous priority street light
<br />installations, most withithe cost of installation borne by the developer and operation and maintenance costs paid
<br />out of the General Fund.
<br />
<br />Recently we have receipted a request to install a priority street light at the intersection of 167th Avenue N.W. and
<br />C.S.A.H. #5 which is li~ted as a level A priority. Presently, the City's Future Street Lighting Fund has a balance
<br />of $11,928 which coul41 be used to finance the installation of 13 of the 24 priority A lights. Various funding
<br />sources have been disc0ssed with direct billings to residential properties being the preferred method, since the
<br />majority of the priority §ghts benefit primarily residential properties.
<br />
<br />As a refresher, the cost~, to install certain levels, or all levels, of the priority street lights are detailed in the table
<br />below. The costs include the initial installation, annual operation and maintenance costs, and the capital recovery
<br />COSTS. ~
<br />
<br /> Number Ccmulafive Total3 Total4
<br />Pdority Of i No.of Installation Ounulafive Annuai2 Annual Cost Annual Cost
<br /> Lights ;Li~ts Cost Install. Cost O & M Am0rt. 10 Yrs. Amort. 20 Yrs.
<br />
<br />Existing 28 : 28 01 01 2,520 2,520 2,520
<br />A 23 ~ 51 19,780 19,780 4,590 7,537 6,606
<br />B 21 72 18,060 37,840 6,480 12,118 10,336
<br />C 17 89 14,620 52,460 8,010 15,827 13,355
<br />D 68 157 58,480 110,940 14,130 30,660 25,435
<br />
<br />1 Developer coniributed installation costs of $18,625
<br />
<br /> 2590.00 per ligl~t.'~ annually
<br /> 3Capital cost an3~orUzed over 10 years at 8% interest plus O&M costs
<br /> 4Capital cost ardortized over 20 years at 8% interest plus O&M costs
<br />
<br />The following tables de[ail the cost per residential property if the City were to bill at the various levels, assuming
<br />that the installation wo01d all be completed prior to the beginning of any billing process. It is anticipated that
<br />there will be a one year ~elay from the beginning of the installations to the point in time when the billings would
<br />begin. Included in the t(btal billable costs is an installation carrying cost amount that will be recovered over a three
<br />year period· At the end of the three years, the rate will be reviewed and adjusted accordingly. It is anticipated
<br />that increases in opera!ion and maintenance costs would offset any decrease due to the carrying costs being
<br />recovered.
<br />
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