9/25/13
Trails were on the Shorewood Council's agenda on the 23rd.
It was reported that sod was down on the Cty 19 segment and the final item is to decide if any trees will be planted on the Xcel site (probably not). The Smithtown Rd. trail grading is started and putting down the actual trail surface is not far off. Most work and a usable trail is supposed to be done by the end of October. Council did approve about $25,000 of extra spending on this segment due to unexpected difficulties. The Excelsior Blvd. segment is likely not to be completed until 2014. This is the short segment being done along with the Met Council sewer improvement.
Per discussion, staff is supposed to come back to Council with updated costs for the above three segments. Seems Council has no idea how much money has been committed and spent from the approximately $1.6 million that was in the trail fund.
Mill Street and Galpin Lake Rd. segments were discussed. The direction was to hold a public open house to discuss the project details. However, with something like $1.5 million in costs for these two segments, the Council clearly does not know where to get enough money to proceed.
Watch the council meeting at: http://lmcc.granicus.com/MediaPlayer.php?publish_id=a045d4fb-76f9-1031-bf4f-32d5966f69c1 and look at agenda items 8B and 12.A.3.
Blog readers have suggested establishing a trail fund like the road fund. This is possible. The road fund receives about $800,000 of property tax money each year. According to staff reports from the Council's March "retreat", the road fund can support the 20-year road plan with only small annual increases in the tax contribution (it's far from "empty" as one reader suggested).
A trail fund to pay for Mill Street and Galpin Lake Rd trails would need on the order of $1.2 million (assuming $300,000 is available from what's unspent today). $1.2 million could be raised in two years simply by raising property taxes about 12% for two years, 4% for six years and so on. Is this what taxpayers want?
Happy Reading!
The Insider
Wednesday, September 25, 2013
Saturday, September 21, 2013
Paying For Trails
9/21/13
So, how to pay for a $1+ million shortfall in 2014 trail construction funding?
Well, one reader suggests using the proceeds from selling the city-owned house. Based on comments from City Administrator Bill Joynes, the net proceeds from selling the house might be in the $275,000 range. So, this still leaves on the order of $800,000 unfunded. Also, Joynes and staff have spoken about applying the house money to paying for the Badger Park renovation (need about $500,000 for this and only have about $250,000 in park funds).
One reader asked how the City pays for roads. It's simple. Each year nearly $800,000 of the City's tax money goes into a road fund (about 15% of the total City revenue each year). Based on the 20-year road plan, this is enough to fund the road projects. If sewer and storm water work are done with a road project, these costs from the sewer and storm water utility bill revenues. Of note, the storm water fund is running out of money and a rate study is underway.
Back to trails. So, using tax dollars to fund $1 million of 2014 trail projects would require a 2014 tax increase of about 20%. Since, the most the City can increase 2014 taxes is 3%, not much help here. Another approach would be to raise taxes a little each year and save the money until trails can be paid for. Of course this would mean it would take many years to complete the trails. The City could issue bonds for trails and pay them off over 20 years. $1 million of bonds would cost taxpayers about $90,000 in property taxes each year for 20 years, about a 2% tax increase. Issuing bonds would require the matter be on the ballot in 2014. Would voters approve this? Who knows?
Grants are also possible. However, best case seems that grants would only cover 30% of the trail's costs. So, this doesn't really solve the funding problem.
What will Council do? What do you want them to do?
Happy Reading!
The Insider
So, how to pay for a $1+ million shortfall in 2014 trail construction funding?
Well, one reader suggests using the proceeds from selling the city-owned house. Based on comments from City Administrator Bill Joynes, the net proceeds from selling the house might be in the $275,000 range. So, this still leaves on the order of $800,000 unfunded. Also, Joynes and staff have spoken about applying the house money to paying for the Badger Park renovation (need about $500,000 for this and only have about $250,000 in park funds).
One reader asked how the City pays for roads. It's simple. Each year nearly $800,000 of the City's tax money goes into a road fund (about 15% of the total City revenue each year). Based on the 20-year road plan, this is enough to fund the road projects. If sewer and storm water work are done with a road project, these costs from the sewer and storm water utility bill revenues. Of note, the storm water fund is running out of money and a rate study is underway.
Back to trails. So, using tax dollars to fund $1 million of 2014 trail projects would require a 2014 tax increase of about 20%. Since, the most the City can increase 2014 taxes is 3%, not much help here. Another approach would be to raise taxes a little each year and save the money until trails can be paid for. Of course this would mean it would take many years to complete the trails. The City could issue bonds for trails and pay them off over 20 years. $1 million of bonds would cost taxpayers about $90,000 in property taxes each year for 20 years, about a 2% tax increase. Issuing bonds would require the matter be on the ballot in 2014. Would voters approve this? Who knows?
Grants are also possible. However, best case seems that grants would only cover 30% of the trail's costs. So, this doesn't really solve the funding problem.
What will Council do? What do you want them to do?
Happy Reading!
The Insider
Thursday, September 19, 2013
2014 Trail Projects - Can Shorewood Afford Them?
9/19/13
On the 17th, the Planning Commission toured the proposed Mill Street and Galpin Lake trail locations, then, they reviewed the engineering feasibility studies for these two 2014 projects. See the agenda packet at: http://weblink.ci.shorewood.mn.us/weblink8/0/doc/166204/Page1.aspx for the packet and details of the feasibility studies.
From the packet information, Mill Street trail cost is estimated at over $699,000 and Galpin Lake is over $911,000 for one option and $855,000 for another option. Both trails would be about 3000 feet long.
The Insider wonders how the Council will deal with the costs. Before construction started on the Smithtown and County 19 trail segments this year, Council had about $1.6 million for trails. Smithtown and Cty 19 appear to be costing about $1.3 million plus, Council approved something like $200,000 for the trail segment on Excelsior Rd. Change orders for the Smithtown project are coming. So, one could easily assume that more than $1.4 million is already spent. With less than $200,000 available to spend, how does Council pay for $1.6 to $1.8 million of new trail projects? Or should it?
Happy Reading!
The Insider
On the 17th, the Planning Commission toured the proposed Mill Street and Galpin Lake trail locations, then, they reviewed the engineering feasibility studies for these two 2014 projects. See the agenda packet at: http://weblink.ci.shorewood.mn.us/weblink8/0/doc/166204/Page1.aspx for the packet and details of the feasibility studies.
From the packet information, Mill Street trail cost is estimated at over $699,000 and Galpin Lake is over $911,000 for one option and $855,000 for another option. Both trails would be about 3000 feet long.
The Insider wonders how the Council will deal with the costs. Before construction started on the Smithtown and County 19 trail segments this year, Council had about $1.6 million for trails. Smithtown and Cty 19 appear to be costing about $1.3 million plus, Council approved something like $200,000 for the trail segment on Excelsior Rd. Change orders for the Smithtown project are coming. So, one could easily assume that more than $1.4 million is already spent. With less than $200,000 available to spend, how does Council pay for $1.6 to $1.8 million of new trail projects? Or should it?
Happy Reading!
The Insider
Bonding For Chaska Senior Facility
9/19/13
No action on the bonding previously commented on in this blog was taken during Shorewood's 9/14 council meeting. Seems the parties planning to build the facility and to which the money would be lent by Shorewood received bids to build the project that were way above expectations. So, they have withdrawn their request for money.
It's possible this'll come back.
Happy Reading!
The Inisder
No action on the bonding previously commented on in this blog was taken during Shorewood's 9/14 council meeting. Seems the parties planning to build the facility and to which the money would be lent by Shorewood received bids to build the project that were way above expectations. So, they have withdrawn their request for money.
It's possible this'll come back.
Happy Reading!
The Inisder
Tuesday, September 17, 2013
South Shore Center - Meeting today
9/17/13
Sorry for the late post, but the blog site has had some problems.
The fourth (of three expected) meeting of the owner cities is 4:00 PM today at Shorewood City Hall. It's expected the "final" positions regarding Center support by the owner cities will be presented.
Stay tuned to learn meeting results.
Happy Reading!
The Insider
Sorry for the late post, but the blog site has had some problems.
The fourth (of three expected) meeting of the owner cities is 4:00 PM today at Shorewood City Hall. It's expected the "final" positions regarding Center support by the owner cities will be presented.
Stay tuned to learn meeting results.
Happy Reading!
The Insider
Tuesday, September 3, 2013
South Shore Center - Who's In or Out?
9/3/13
The previous post about the 3% tax increase and the budget for the Center was not too clear.
Tonka Bay and Deephaven appear to have no interest in funding Center operations. Greenwood is still discussing, but seems to be leaning against any funding as well.
The Insider expects little or nothing to be offered by Excelsior. So, Shorewood looks to be going forward on its own (as it has been for the past three plus years).
The SSSP wants to stop paying rent and for Shorewood to hire a full-time manager to run the Center. So, basically, they're bailing on responsibility, but want to keep using the Center, offering their programs and keeping the money they raise. If Shorewood bites on this deal, City staff is saying the operating deficit that has to be supported by tax dollars will go from $60,000 (estimated for 2013) to $140,000 for 2014.
So the question is how much is keeping the center open worth to the taxpayers? Shorewood's Council appears to believe no amount is too much. Do you?
Happy Reading!
The Insider
The previous post about the 3% tax increase and the budget for the Center was not too clear.
Tonka Bay and Deephaven appear to have no interest in funding Center operations. Greenwood is still discussing, but seems to be leaning against any funding as well.
The Insider expects little or nothing to be offered by Excelsior. So, Shorewood looks to be going forward on its own (as it has been for the past three plus years).
The SSSP wants to stop paying rent and for Shorewood to hire a full-time manager to run the Center. So, basically, they're bailing on responsibility, but want to keep using the Center, offering their programs and keeping the money they raise. If Shorewood bites on this deal, City staff is saying the operating deficit that has to be supported by tax dollars will go from $60,000 (estimated for 2013) to $140,000 for 2014.
So the question is how much is keeping the center open worth to the taxpayers? Shorewood's Council appears to believe no amount is too much. Do you?
Happy Reading!
The Insider
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