Agenda - Council - 06/28/1994 - Laserfiche WebLink

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CASE # DISCUSS POTEI~TIAL FUNDING SOURCE FOR PRIORITY ARTERIAL STREET LIGHTS - INStrALLATION AND OPERATION AND MAINTE,N. ANCE COSTS By: Jeslfie Hart, Finance Officer and Ryan Schroeder, City Administrator Background: The City of Ramsey {urrently has in place a Street Lighting Policy that was established to provide a rational basis for the location, type ~and method of financing of municipal street lighting within the City. The policy deals with two classifications of{street lighting, priority arterial and subdivision street lights. This case will deal specifically with the policy as it ~elates to priority arterial street lights. A copy of the policy is attached for reference while this case is discussed The Road and Bridg~ Committee received information at the June 14, 1994 meeting, regarding the costs to be incurred if some or al of the priority arterial street lights were to be installed. These cost estimates were provided by Anoka Electric Cc )erative (AEC) and meet 'all of the specifications included in the policy. Following reveiw, the Road and Bridge Committee forwarded this information to the Finance Committee to review and discuss potential funding sou ces for thc installation costs and the ongoing operation and maintenance costs of the various levels. = There are currently 1 t 2 lights proposed for installation as priority arterial lights. The costs to install certain levels or all levels of the pri >rity arterial lights are detailed in the table below. The costs include the initial installation. annual operation and nalntenance costs, and the capital recovery costs. ' Total3 Nun bet Of Cumulative. Installation Cumulative Annual2 Annual Cost Priority ~ Ne.of Lights Cost Install, Cost O & M Amort. 10 'frs. Existing 25 25 01 01 2,250 2,250 A 24 48 20,640 20,640 4,320 7,395 B ;22 71 18,920 38,560 6,390 12,284 C '.17 88 14,620 54,180 7,920 15,992 D 69 157 59,340 113,520 14,130 31,044 ~ . 1 Developer contributed installation costs 2590.00 per light annually 3Capital cost '~arnortized over 10 years at 8% interest plus O&M costs The City currently l~as in existence 25 priority arterial street lights, for which the current operation and maintenance costs ot~ $2,250 are funded through the General Fund. Based on the above schedule, if all 132 priority arterial street[lights were installed, and the operation and maintenance costs were paid from the General Fund as the policy st.~tes, there would be an, increase in the General Fund budget (from the current $2,250.00 per year) of approximately $11,880.00 annualb. If we include the capital recovery costs of $16,914.00, the increase to the General Fund ~udget would be $31,044.00 annually. ~~ fcdt~ ?se°~pli;i?y[r~diii~i!~!~ihTio;v~?v°e~ ~/wf~nu~ ~1 Sl~eChn eacSesths~ryWtaot ~tr~l ~i~e( ~o ~Cr eCpha%,~n~Sn)~andre fundthe The installation of th{ priority arterial lights could be viewed as a primary benefit for residential properties, far more than for commej'cial properties, so to levy additional taxes to cover the additional operating costs would be unfair proponionatel~ to thc commercial properties in the City, who already pay substantially higher taxes, on a market value basis, ti/an residential properties. Therefore, a funding source that does not impact the commercial properties should be ~ought. 141