Agenda - Council - 02/14/2012 - Laserfiche WebLink

Home

Long -Term Road Maintenance and Reconstruction Program: Investing in Our Neiqhharhaads, Property Values and Future Nearly half of Ramsey's 178 roads were constructed in the early 1970s-1980s and are now reaching the end of their useful life. Between now and 2025, about $90 million in road reconstruction will be necessary to replace city streets. Currently no budget exists to pay for this wave of construction, which will largely be the responsibility of Ramsey taxpayers. Without action, roads will be prone to more potholes, cracks and crumbling pavement — creating serious safety risks for pedestrians and motorists and impacting property values. To prepare, a majority of Ramsey residents agree the city proactively needs to establish a long-term road maintenance and funding program. The city's goals for the roads program are to: • Ensure safety for pedestrians and drivers • Reduce project delays and avoid higher costs to taxpayers • Spread out the cost of road work and keep assessments low • Maintain high -quality roads that will continue to attract new residents, businesses and jobs OPTION 1 Current Assessment Policy • Assessed only to properties adjacent to the specific project • Based on lineal footage of property — 1/4-acre lot. could cost $9, 000 or $75/month for 10 years — 2-acre lot. could cost $27, 000 or $225/month for 10 years • Places significant but short-term burden on property owners — a challenging option in the current economy Which Funding Option Do You Prefer? OPTION 2 Citywide Property Tax Increase • Based on property value — Average $150,000 home: could cost additional $24/ month for up to 40 years — Average $450, 000 home: could cost additional $51/ month for up to 40 years • Spreads out costs to all taxpayers and keeps assessments low Provide Yaur Feedback: Residents are invited to provide feedback on their preferred funding choice above. The City Council will review public input and establish a new long-term road maintenance and reconstruction policy in early 2012. OPTION 3 Citywide Franchise Fee • Charges all utility customers, including tax exempt properties, a monthly fee regardless of property size or value — Residential customers: could cost $28/month for 40 years — Commercial customers: could cost $54/month for 40 years • Spreads out cost to everyone who benefits from better roads • Most preferred option by Ramsey residents (June 2011 public opinion survey) v� ((�!/,,E www.ci.ramsey.mn.us 1 www.facebook.com/CityofRamseyMN Brian Olson, Ramsey Public Works Director BOlson@ci.ramsey.mn.us / 763-433-9825 Draft—10-7-11