Debt Review Continued

At the March 27, 2018 work session staff presented a 10-year debt summary that outlined possible future debt that the city could incur related to road reconstructions, capital equipment, trail reconstructions and a public works campus.

This debt summary has been amended to reflect the following:
                1.  Remove all road related debt with the possibility of funding from franchise fees and/or other funds such as MSA.  
                     (See attachment below labeled Road Funding Concept Scenario).
                2.  Removed all trail reconstruction.  Upon further review, staff has determined that trail reconstruction would be better
                     served under the annual General Tax Levy (include in General Fund Budget) with an estimated increasing  cost 
                     ranging from $50,000 in 2019 to a high of $100,000 in year 2027.

Council had also requested what the debt levy would have/would look like if road financing had not been bonded and levied for.  (See attachment below titled 'Debt Levy Comparison Road Debt - No Road Debt).

Lastly, WSB also presented at the March 27, 2018 work session in regard to implementing franchise fees as a possible funding source for road reconstructions/overlays in lieu of debt, special assessments, and debt levy.  City council had asked the impact of a $4/$5 per month franchise fee if the city were to go this route.  A Franchise Fee option sheet is also attached.  The options presented follow the two models currently in place by the cities of Elk River and Rogers.



 

20-25 minutes

Finance Director

For review and discussion only.