Hanover levy increase would help fund pavement plan

The Hanover City Council is comfortable with a 3 percent levy increase, the first in seven years, to help fund the city’s pavement management plan.

The council also approved rejecting the single bid received for the Hennepin County Rd. 19 trail project, meaning the project is shelved until next spring.



At the council’s recent workshop, staff presented a 2015 proposed budget overview.

“The focus on the 2015 budget is to pay for the pavement management plan without assessments,” administrative assistant Brian Hagen said. “If that’s the case, the levy would have to increase if we wanted to follow up next year on the plan.”

The council and staff have been studying numbers to finance an array of upcoming pavement projects.

The budget increase pays for the majority of the city’s pavement management for next year, but not all, meaning the city is hoping its conservative revenue estimate for next year results in more revenue than budgeted.

“The big thing was can we fund the pavement management and the answer should be yes,” Hagen said. He said the council was presented with budget scenarios such as “if we do this, this is how much the levy would go up.”

“We just wanted to show the council the scenarios,” Hagen said. “They are happy to see it right at that 3 percent (levy increase).”

The city plans approximately $350,000 in pavement management next year.



In other action, the council heard that there was only one bid received for the Hennepin County Rd. 19 trail project.

The trail would extend west along the north side of Hennepin County Rd. 19 from the Crow-Hassan Park Reserve to the Historic Bridge, tying into the Wright County trail system.

Because the one bid was higher than the $600,000 engineer project estimate, the council accepted staff’s recommendation to reject the bid.

“The bids did not meet the city’s expectations so we are going to re-bid and do the project next spring,” administrative assistant Hagen said.

The project had been planned for this fall, with funding from the city, Hennepin County, Three Rivers Park District and federal government.

“When the bids are approved, we will build the trail,” Hagen said.

In other action, the council:

WENT into closed session to discuss a proposed purchase of property known as Outlot H, at the Bridges of Hanover. This is related to a potential assisted living development.