ADMINISTRATION - Joe Huss, Finance Director
Title
PROPOSED FUNDING SOURCE FOR LEVER STREET IMPROVEMENTS NORTH OF 125TH AVENUE, IMPROVEMENT PROJECT NO. 17-07
Background
At the July 13, 2017 City Council meeting, the Council ordered the Lever Street improvements and reduced the proposed street assessments on the preliminary assessment roll for non-petitioning parcels by 50%. This reduction results in a funding gap of $282,161. Council directed staff to bring back a proposed funding source by August 17, 2017.
Typically, assessed road improvement projects are funded through a combination of assessments and the City’s Pavement Management Program (PMP). Therefore, staff’s recommendation is to fund the gap through PMP. Historically, PMP itself has been funded via three sources: (1) a PMP levy; (2) with bonding (borrowing) proceeds; and (3) through the transfer of unrestricted General Fund reserves. Staff expects that 2017 will conclude with positive performance in the General Fund and that unrestricted reserves would be available to transfer to PMP for use in street improvement projects. Council could further direct staff to supplement the PMP Fund with additional unrestricted reserves once it has been determined that adequate reserves exist. This determination will not likely occur until shortly after the 2017 fiscal year concludes in December. Adequate funds currently exist in the PMP Fund to cover pavement management commitments through the end of 2017.
Recommendation
By motion, direct staff to monitor unrestricted general fund reserves and report to the City Council by February 1, 2018 of their availability for use in the City’s Pavement Management Program.