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<br />5.01: Review Plan to Spend Unencumbered Pavement Management Program Funds <br /> <br />City Engineer Westby stated that during the May Public Works Committee meeting, staff was <br />unexpended pavement management program funds, why these funds were not spent earlier and the <br />plan for spending the funds. The current balance of the unencumbered funds is approximately <br />$901,000. This includes $872,500 from 2013 budgeted pavement management project funds that <br />went unspent ($1,327,500 was budgeted and only $455,000 was spent) and $28,500 from five <br />years of bond premiums and interest earnings. <br /> <br />City Engineer Westby stated that staff chose not to expend the funds earlier because street <br />reconstruction bonds cannot be used to fund improvements that did not previously exist. For <br />example, if curb and getter or sidewalk did not exist before a street was reconstructed but was to <br />be constructed as part of a street reconstruction project, street reconstruction bonds could not fund <br />such improvements. In addition, when the City widens or strengthens (thicker pavement section) <br />a street, the extra costs for widening or strengthening cannot come from street reconstruction <br />bonds. The City therefore used some of the excess funds to cover such improvements on previous <br />-term pavement management plan and current funding policy, these <br />- <br /> <br />City Engineer Westby stated that staff plans to expend the unencumbered funds using <br />approximately $698,000 to cover City Improvement Project #19-01, Ford Brook Estates Street <br />Reconstructions, and #19-03, Wood Pond Hills & Chestnut Ridge Street Reconstructions. In <br />addition, since the City is currently considering the implementation of franchise fees, including <br />potential rebates of these fees to offset special assessments on properties previously assessed for <br />street reconstruction and overlay improvements, staff did not want to add another year of debt to <br />the tax levy if the franchise fee were to be implemented. This will leave a balance of roughly <br />$203,000 that could be used to fund franchise fee rebates if franchise fees are implemented or <br />could be used to fund a portion of the 2020 street reconstruction or overlay improvement projects. <br />He stated that staff plans to bring a plan forward to the Council in July for a 2020 pavement <br />management plan. <br /> <br />Chairperson Kuzma stated that the City would set itself up for some difficulty if Variolite is <br />improved without assessments. He acknowledged that if the assessments are too high, the <br />residents would most likely object to the project. <br /> <br />City Engineer Westby stated that the other projects within the current 10-year CIP are proposed to <br />be completed with assessments and have a large number of properties that would be assessed. He <br />explained that in order to do one of those roads, staff would need to propose another five-year <br />plan. He stated that Variolite has the smallest number of residents that would be assessed. <br /> <br />Chairperson Kuzma stated that if the franchise fee method is not chosen, the City would most <br />likely have to go back to bonding. <br /> <br />Public Works Committee / June 18, 2019 <br />Page 2 of 7 <br /> <br />