III.2. Pavement Management Program and Debt Updates; Klingbeil-Bishop
CITY OF HOPKINS
Memorandum
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Eric Klingbeil
Date: April 4, 2023
Subject: Pavement Management Program Update
_____________________________________________________________________
PURPOSE
To provide an update on the city’s Pavement Management Plan
INFORMATION
Hopkins developed a Pavement Management Plan (PMP) in the 1990s to establish a
baseline for infrastructure management. Prior to the PMP street reconstruction was
typically reactionary and in many instances it was unplanned. The PMP establishes a
method to track infrastructure condition, this in turn allows staff to be intentional and
strategic when planning for projects. This also provides a way to be financially prepared
for construction, by forecasting capital investments out over a horizon in the Capital
Improvement Plan. A review of the status of street reconstruction across the city will be
included in the presentation.
Currently, segments of 12th, 14th, 15th, and 16th Avenues North and 2nd Street North are
to be reconstructed in 2023. As with other reconstruction projects, the scope also
includes replacement of sidewalk, water main, sanitary sewer and storm sewer. An
overview of the project will be presented and staff will be prepared to answer questions.
FUTURE ACTION
Regarding the next and utility project identified in the CIP, based on council direction at
this work session, staff will be prepared to start project development in either 2023 or
2024. The next step is returning to council with a resolution to order a feasibility report.
Public Works Dept.
CITY OF HOPKINS
Memorandum
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Nick Bishop, Finance Director
Date: April 4, 2023
Subject: Debt Update
_____________________________________________________________________
PURPOSE
To provide an overview and update related to the City’s project debt for street projects.
INFORMATION
The City of Hopkins issues debt for infrastructure (roads, water, sewer and storm
sewer) and large scale equipment (fire trucks and garbage trucks, among others) with a
lifespan at least equal to the length of the debt (in most cases much longer). Despite
the lifetime of the infrastructure being decades long, the average city debt is issued for
only 15 years, which reduces the amount of interest paid.
The City has been focusing on projects to reconstruct streets, and ensuring our
infrastructure is prepared for Southwest Light Rail and the development expected from
the significant change projected for the community.
All streets in Hopkins are planned to be reconstructed by 2031. Continuing this program
of street surface improvement projects ensures the future preservation of our roadways
and helps maintain the quality of life Hopkins residents have come to expect.
As of April 4, 2023, the City of has $50,085,000 of Tax Levy-supported debt. The City
also has $23,385,000 of debt paid by Utility Revenues and $8,710,000 of debt paid by
Tax Increment Financing (TIF). Total debt outstanding is $82,180,000.
Finance Department
The approved 2023-2027 Capital Improvement Plan (CIP) includes a one year pause
on street reconstruction in 2024. The following charts show the projected debt levy
needed to fund the current CIP.
2023 2024 2025 2026 2027 2028
Current Debt 3,892,746 4,161,472 4,184,186 3,997,181 3,857,264 3,510,216
Central Avenues (3 year project)- - - 305,000 305,000 305,000
2025 Project
Central Avenues (3 year project)- - - - 310,000 310,000
2026 Project
Central Avenues (3 year project)- - - - - 315,000
2027 Project
Total Debt Levy 3,892,746 4,161,472 4,184,186 4,302,181 4,472,264 4,440,216
Increase (Decrease)(2.76%) 6.90% 0.55% 2.82% 3.95% (0.72%)
Projected Debt Levy Based on 2023-2027 Capital Improvement Plan
(Approved on September 6, 2022)
Levy Year
The chart below shows the projected debt levy needed to begin the Central Avenues
street reconstruction project in 2024.
2023 2024 2025 2026 2027 2028
C urrent Debt 3,892,746 4,161,472 4,184,186 3,997,181 3,857,264 3,510,216
Central Avenues (3 year project)- - 295,000 295,000 295,000 295,000
2025 Project - Advance to 2024
Central Avenues (3 year project)- - - 300,000 300,000 300,000
2026 Project - Advance to 2025
Central Avenues (3 year project)- - - - 305,000 305,000
2027 Project - Advance to 2026
Total Debt Levy 3,892,746 4,161,472 4,479,186 4,592,181 4,757,264 4,410,216
Increase (Decrease)(2.76%) 6.90% 7.63% 2.52% 3.59% (7.30%)
Projected Debt Levy Based on Advancing Central Avenues Project
Levy Year
(for discussion)
FUTURE ACTION
City Council will review a preliminary version on the Financial Management Plan (FMP)
on June 13th. The FMP is a multi-year fiscal plan for all tax supported funds. The FMP
will include existing debt, future debt, Capital Improvement Plans, Equipment
Replacement Plans, tax base growth, TIF de-certifications and projected operating
expenses.