Item B: Crest Drive Street Design Recommendations

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Financing Strategy Assessable Capital Costs During construction, the assessable portion of the project will be initially financed by the City through a line of credit arrangement. Once the project is assessed, property owners will have the option to pay the cost up front, or to pay it over time through a loan from the City. The upfront payments will be used to pay off the line of credit. For the property owners that choose to finance, the City will issue bonds to pay off the line of credit. The bonds will be repaid from the property owner payments over 10 years. The City offers a subsidy program for owner-occupied single family and duplex homes. The subsidy ranges from 1/3 to 5/6 of the individual assessments. There is approximately $215,000 available in the Low Income Subsidy Fund. The amount of the subsidy is based upon the median family income in the Eugene-Springfield metropolitan area. Of the estimated 102 single family and duplex properties it is unknown how many property owners will qualify for the low income subsidy program. Funding for the assessment of $238,000 for the City-owned Morse Ranch could be from the Parks System Development Charge fund or the reserve for revenue shortfall. An Enhanced Results Service Offer will be prepared for consideration in the FY09 budget for funding this piece of the project. This project will require increasing the City’s line of credit which is currently authorized by Council for up to $4 million for all assessment projects. The line of credit will also provide the initial funding for other assessment projects, such as the Elmira Road and Maple Street improvements. A resolution authorizing the increased line of credit will be put on the consent calendar at a future council date. Non-assessable Capital Costs The City’s share of assessment projects is typically funded from system development charges (SDCs) for streets classified as arterials and collectors. The streets in the Crest Drive area are unclassified and therefore, not eligible for SDC funds. There is no on-going funding dedicated for the City share of street improvement projects on unclassified or local streets. For this project, the funding options for the estimated cost of $1,650,000 for non-assessable street improvements include: ? $700,000 of the funding set aside for future delayed street assessments ? May 2008 GO Bonds for transportation system capital preservation projects ? Other one-time sources, such as the reserve for revenue shortfall for the General Fund The estimated cost of $1,500,000 for non-assessable storm drainage improvements is proposed to be funded by re-allocating funding from previously budgeted capital stormwater projects and projects proposed for FY09 as identified in the Six-Year CIP. FY08 FY09 Royal Node Storm Water Infrastructure $1,000,000 Streambank Stabilization $ 300,000 $200,000 Total $1,300,000 $200,000 Operation and Maintenance Costs The routine operation and maintenance of the street and drainage improvements of the improved portions of Crest Drive, Storey Boulevard and Friendly Street can be absorbed within the existing baseline budget of the Maintenance Division of the Public Works Department. The improved streets will