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CC Work Session 2. 1. <br />Meeting Date: 04/24/2018 <br />Information <br />Title: <br />Debt Review Continued <br />Purpose/Background: <br />At the March 27, 2018 work session staff presented a 10-year debt summary that outlined possible future debt that <br />the city could incur related to road reconstructions, capital equipment, trail reconstructions and a public works <br />campus. <br />This debt summary has been amended to reflect the following: <br />1. Remove all road related debt with the possibility of funding from franchise fees and/or other funds such as MSA. <br />(See attachment below labeled Road Funding Concept Scenario). <br />2. Removed all trail reconstruction. Upon further review, staff has determined that trail reconstruction would be <br />better <br />served under the annual General Tax Levy (include in General Fund Budget) with an estimated increasing cost <br />ranging from $50,000 in 2019 to a high of $100,000 in year 2027. <br />Council had also requested what the debt levy would have/would look like if road financing had not been bonded <br />and levied for. (See attachment below titled 'Debt Levy Comparison Road Debt - No Road Debt). <br />Lastly, WSB also presented at the March 27, 2018 work session in regard to implementing franchise fees as a <br />possible funding source for road reconstructions/overlays in lieu of debt, special assessments, and debt levy. City <br />council had asked the impact of a $4/$5 per month franchise fee if the city were to go this route. A Franchise Fee <br />option sheet is also attached. The options presented follow the two models currently in place by the cities of Elk <br />River and Rogers. <br />Timeframe: <br />20-25 minutes <br />Funding Source: <br />Responsible Party(ies): <br />Finance Director <br />Outcome: <br />For review and discussion only. <br />Road Funding Concept Scenario <br />Debt Levy Comparison Road Debt - No Road Debt <br />Franchise Fee Options <br />Attachments <br />