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
As there is a fund for roads, there should be the same fund for trails. Period. There was a trail fund once, but a council at the time, lacking any vision whatsoever quite funding it. If that council had continued the trail fund, this conversation would be moot.
ReplyDeleteI agree. Put the trail fund back into service. Lets figure it out.
DeleteI am sick of the MCWD getting handouts. Sick of the pandering for money for invasive species. Sick of giving more money every year to Excelsior fireworks, that I cannot see because I can't even get close to the city on the 4th of July (although better trail access for the LRT system might help there).
We have something like 2700 households. What would be fair? Figure it out! Shorewood's walk score is a 6. Pathetic.
And I would add to the above, sick of overpaying for police "protection." The funding formula is a Shorewood subsidy for Excelsior. If that had been reined in 10 years ago, we'd have another quarter million in the pot today.
DeleteEveryone can use a trail. To use the Badger Field, one must be part of an expensive sports group, and most likely male. Where is the money best spent for the greater community benefit?
ReplyDeleteSpending that kind of $ on Badger is no different than the current expenditures for the SSC, another small, and yet to be defined audience.
But didn't I read in the minutes that the groups using Badger Field are contributing a considerable amount of money toward its refurbishment?
DeleteAnd with that contribution do they expect semi- or exclusive use? Which goes back to the fact that the park expenditure by the city, no matter what it is, will be limited in the scope of who is served.
Delete2700 households? Survey them. Don't make broad assumptions. Sure, everyone LIKES trails, but how much are people ready to spend per year per household?
ReplyDeleteGood idea. I was just thinking about that very thing this morning after I saw the beautiful new curb along Smithtown Toad where the new sidewalk is going in.
DeleteI would offer that it is inevitable that we will see an increase in some way to pay for further road repairs and trail expenditures should go in with that.
So how much should that be? Communities generally assess the residents living along a road or trail segment for the expense of the project. We are unusual in that we have a road fund, although it is almost dry. Eventually we will have to pay out of pocket.
1) Earlier the Insider wrote of the senior center: "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."
ReplyDeleteWell...close the center and we are halfway there.
2) Eliminate all of the cities welfare programs. No income based rates or fees for anyone. Treat all citizens equally instead of forcing some to subsidize others (so they can go to the casino).
3) Cut back city employee benefits. Do you folks know that we pay employees for their unused sick leave when they retire? Do you get that from your employer? Terminate the defined benefit plan and go to a 401k plan.
Bingo. Now we have lots of money for the citizens instead of the staff. The trouble is that Council thinks that the staff writes the councils paycheck.
4) But why bother with trails when the state legislature undermined the whole idea by giving bikers the right to ride in road? I thought the purpose of trails was to get bikers OFF the road. Which way are we going?!!!
I was with you till you went off the rails on 2, 3, and 4.
ReplyDeleteWhat does the city subsidize based on income? I'm at a loss.
The sick pay thing is extreme but cutting the 457 plan? Really? How willing are you to let anyone hack on your retirement plan?
And number 4 one word: pedestrians.
Insider and council members: To summarize the solutions listed in this blog:
ReplyDelete1. Take the money from the house sale.
2. Reformulate the overcharge for police
3. Drop the overly expensive renovation of Badger Field
4. Mothball the senior center
5. Incorporate the trail fund and roadway fund as one for future building and maintenance
6. Stop the donations to out-of-the-city organizations and missions that are not mandated by statute: LMA, Fireworks, etc.
7. Bond for the balance.
Shorewood and its trails first!