HomeMy WebLinkAbout10C - 1999-2003 CIP
STAFF AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
MAY 18,1998
1 O~c::.
RALPH TESCHNER, FINANCE DIRECTOR
AGENDA ITEM:
CONSIDER APPROVAL OF RESOLUTION 98-XX APPROVING
THE 1999-2003 CAPITAL IMPROVEMENT PROGRAM (CIP)
DISCUSSION:
History
Annually the City prepares a capital improvement program which is
designed to identify infrastructure improvements and funding sources
therefore which are necessary as a result of primarily two factors;
community growth and infrastructure replacement.
Such projects include City initiated improvements, county and state road
improvements and improvements requested by developers. In some cases
they involve financial responsibility on behalf of Prior Lake, while in others
they may not. In addition, an Equipment Matrix is included which identifies
the City's equipment needs and establishes a regular replacement schedule.
Please bring your draft copy of the 1999-2003 Capital Improvement
Program with you to the meeting. Within the CIP are condensed project
summary sheets (see inserts entitled "Capsule Project Summary") that
present a list of projects by year along with a financing source recap and the
City's specific share of the project cost and the estimated tax impact of
each year's projects. This capsule summary should be helpful for the
Council to refer back and forth between years as a quick reference guide.
Current Circumstances
The City Council conducted a workshop to discuss the draft CIP on May
4th, 1998. Council and Staff reviewed the proposed funding levels and the
improvement project list for each year and the major changes within the
revolving equipment fund matrix schedule. Council agreed upon the
following changes:
1. Increase the Main Avenue street lighting allocation to $95,000.
2. Remove the Commerce/Boudin Avenue - Hwy 13 intersection
upgrade and instructed Staff to contact MNDOT and initiate a
mutual effort to determine which intersections should be
reconstructed from a safety, timing and cost perspective. This
should include all of the intersections along Hwy 13, at least down
to 150th Street. Staff would then bring this study back to the
Council to prioritize the eventual order as to when these
intersection should be improved.
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
T
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FISCAL IMPACT:
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3. Add the "Ring Road" project to the fifth year (2003) of the Capital
Improvement Program.
At the conclusion of the workshop the Council directed Staff to place the
1999-2003 Capital Improvement Program on the May 18th City Council
Agenda.
. .
"
Issues
It is important for the Council to recognize that the document is a flexible
planning tool that is affected by the actions of a number of governmental
agencies (State, County and Shakopee Mdewakanton Dakota Community).
The Council should critically review those projects proposed for 1999.
Those improvements selected for bonding will affect the property taxes
payable in 2000. Council should remember that the school district and
county will also influence the level of taxes through their annua11evies and
periodic referendums and bond issues.
Those programs which are not deemed to be of high priority should be .
eliminated now so they do not generate public expectation and also to avoid
unnecessary City effort and expense.
Conclusion
At the meeting the appropriate department heads will be present to answer
questions about the Capital Improvement Program. I will provide a cursory
overview of the program and its contents especially with respect to those
improvements identified for 1999.
Following Council approval of the Capital Improvement Program,
Engineering will prepare a feasibility report. Adequate lead time is
important for surveying, right of way acquisition and engineering to obtain
the best possible bids, which is generally early in the year.
Subsequent years in the CIP are more important from a planning
perspective. Our objective in preparing the CIP has been to balance the tax
impacts from year to year while addressing infrastructure needs.
In reviewing the draft 1999-2003 Capital Improvement Program, the
Council should consider the annual tax impact of the scheduled projects.
While levy limits are again in effect for payable 1999, debt levies
associated with our capital improvement program are exempt. The City
Council's self imposed zero percent tax increase which is more restrictive
than the statewide levy limits substantially limits the number and timing of
tax funded projects in the CIP program.
The major projects proposed for 1999 which involve a project tax levy are
listed below along with their respective tax impact:
2
Main Avenue Street Lights
CSAH 42
Pleasant/Colorado Reconstruct.
$95,000
$200,000
$486.000
City Tax Impact
$ %
$2.13 0.29%
$4.48 0.60%
liD..B.2 lA6%
Project Description
Project Levy
TOTALS
$781,000
$17.50 2.35%
Listed below is a year by year tax recap if all the projects that include a tax
levy were implemented. The Scott County Assessor has estimated the
average mean Prior Lake market value home to be approximately $130,000.
This typical value has been utilized for purposes of calculating the
following tax impact.
(A 1998 base tax of $742.21 [City portion) was utilized to compute the
beginning percentage increases. Budgetary increases are excluded for
purposes of comparing the effect of capital dollars only within the context
of the CIP. Also this model assumes an annual 2% tax capacity valuation
growth.)
1999
2000
2001
2002
2003
$781,000
$897,000
$751,000
$711,000
$708,000
Tax Impact
$ %
$17.50 2.35%
$19.80 2.61%
$16.27 2.09%
$15.03 1.89%
$14.67 1.81%
Project Year and Levy Amount
The annual tax impact is very balanced over the course of the CIP, with the
largest variance occurring in year 2000. As to the Equipment Matrix, only a
very small incremental tax increase of $10,000 annually would occur.
ALTERNATIVES:
The following alternatives are available for Council consideration:
1. Provide direction to the staff to modify the proposed program to
mitigate annual tax increases while insuring appropriate maintenance of
public infrastructure.
2. Amend the 1999-2003 Capital Improvement Program as per Council
determination.
3. Approve the proposed 1999-2003 Capital Improvement Program as
submitted.
RECOMMENDATION: Staff recommends Alternative #3. While it is important that the Capital
Improvement Program be adopted expeditiously, it is equally important that
the Council be comfortable and supportive of the proposed projects and
their tax consequences. Once the CIP is approved the Engineering
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RECOMMENDED
MOTION:
REVIEWED BY:
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department will return to the Council for authorization to begin the
feasibility study for those ~ects scheduled for 1999.
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Approving the 1999-2003 Capital
RESOLUTION 98-xx
RESOLUTION APPROVING THE
1999-2003 CAPITAL IMPROVEMENT PROGRAM
MOTION BY: SECOND BY:
WHEREAS, The purpose of a capital improvement program is to protect the infrastructure
of the City of Prior Lake by establishing a replacement plan for existing
infrastructure and to identify those improvements necessary to accommodate
the growth of the community; and
WHEREAS, The capital improvement program is a flexible planning document that
attempts to balance the financial resources of the City with its needs; and
WHEREAS, The establishment of a capital improvement program will provide appropriate
information to manage capital change within the City of Prior Lake; and
WHEREAS, It is intended for the capital improvement program to be established for a
period of five (5) years and to be updated annually.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
that the 1999-2003 Capital Improvement Program is hereby approved.
Passed and adopted this 18th day of May, 1998.
YES
NO
Mader
Kedrowski
Petersen
Schenck
Wuellner
Mader
Kedrowski
Petersen
Schenck
Wuellner
{Seal}
City Manager
City of Prior Lake
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
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CAPSULE PROJECT SUMMARY
1999 CIP PROJECTS
City Cost
Project Description Project Amount Financing Tax Impact
QQ1JaL Percentage
Fire Department
1. Bunker Turnout Gear 5,000.00 5,000.00 o.b.
Park Department
(Development)
2. Park Appurtenant Equipment 10,000.00 10,000.00 c.p.
3. Neighborhood Park Resilient Surfaces 12,000.00 12,000.00 c.p.
4. Community Park Improvements 42,000.00 42,000.00 c.p.
5. Neighborhood Park Playgrounds 44,000.00 44,000.00 c.p.
lImiW
6. Crest Avenue & Knob Hill 62,000.00 62,000.00 c.p.
Public Works
(Buildings/Plan(l
7. Lift Station Renovation 76,000.00 76,000.00 t.r.
8. Lift Station Telemetry System 240,000.00 240,000.00 t.r.
(/mDrovement$,)
9. North Shore Oaks 1 st Addition S&W Utilities 60,000.00 60,000.00 s.a.
10. Main Avenue Street Lights 95,000.00 95,000.00 2.13 0.29%
11. CSAH 23 Realignment 800,000.00 50,000.00 s.a.
340,000.00 m.s.
410,000.00 Lg.
12. Candy Cove & Centennial St. Reconstruction 900,000.00 486,000.00 10.89 1.46%
414,000.00 s.a.
13. CSAH 42 (CSAH 21 to western city limits) 2,385,000.00 200,000.00 4.48 0.60%
185,000.00 t.r.
2,000,000.00 Lg.
Water Resources
(Improvement$,)
14. Catch Basin Replacement (Red Oaks Road) 15,000.00 15,000.00 s.w.
15. Storm Sewer Outlet Dredging (Green Hgts Trl) 15,000.00 15,000.00 S.w.
16. Wetlands Restoration in Lakefront Park 20,000.00 20,000.00 S.w.
17. Storm Sewer Replace (Brooksville Hills 6th) 35.000.00 35.000.00 s.w.
Totals ... 4,816,000.00 4,816,000.00
Financing Source Summary Project Amount Tax Impact
QQllar Percentage
$ Project Tax Levy 781,000.00 $17.50 2.35%
o.b. Operating Budget 5,000.00
s.w. Storm Water Utility Fund 85,000.00
c.p. Capital Park Fund 170,000.00
t.r. Trunk Reserve Fund 501,000.00
m.s. Municipal State Aid Fund 340,000.00
s.a. Special Assessments 524,000.00
I.g. Intergovernmental 2.410.000.00
Totals ... 4,816,000.00
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CAPSULE PROJECT SUMMARY
2000 CIP PROJECtS
City Cost
Project Description Project Amount Financing Tax Impact
QQ!l.ar.. Percentaae
Fire Department
1. Bunker Turnout Gear 6,000.00 6,000.00 o.b.
Park Department
(Developmen(J
2. Park Appurtenant Equipment 10,000.00 10,000.00 c.p.
3. Community Park Improvements 10,000.00 10,000.00 c.p.
4. Neighborhood Park Resilient Surfaces 12,000.00 12,000.00 c.p.
5. Sand Point Beach Parking Lot Lighting 18,000.00 18,000.00 c.p.
6. Neighborhood Park Playgrounds 74,000.00 74,000.00 c.p.
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7. Glynwater 22,000.00 22,000.00 C.p.
Public Works
(Buildings/PlanV
8. Litt Station Renovation 81,000.00 81,000.00 t.r.
9. Water Tower Painting 250,000.00 125,000.00 t.r.
125,000.00 uJ.
(Improvements)
10. Fish Point Road/Fairlawn Shores Trail Overlay 300,000.00 180,000.00 3.97 0.52%
120,000.00 s.a
11. Oak Ridge/Pixie Point Reconstruction 1,195,000.00 717,000.00 15.83 2.09%
478,000.00 s.a.
Water Resources
(Improvements)
12. Water Quality Pond (Center Road) 15,000.00 15,000.00 S.w.
13. Catch Basins Replacement 15,000.00 15,000.00 S.w.
14. Storm Water Pond Dredging 20.000.00 20.000.00 s.w.
Totals n. 2,028,000.00 2,028,000.00
Financing Source Summary Project Amount Tax Impact
QQlIar Percentage
$ Project Tax Levy 897,000.00 $19.80 2.61%
o.b. Operating Budget 6,000.00
uJ. Sewer & Water Utility Fund 125,000.00
s.w. Storm Water Utility Fund 50,000.00
c.p. Capital Park Fund 146,000.00
t.r. Trunk Reserve Fund 206,000.00
s.a. Special Assessments 598.000.00
Totals ... 2,028,000.00
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CAPSULE PROJECT SUMMARY
2001 CIP PROJECTS
City Cost
Project Description Project Amount Financing Tax Impact
.QQJJ.ar. Percentage
Fire Department
1. Bunker Turnout Gear 7,000.00 7,000.00 o.b.
Park Department
(DevelopmenO
2. Park Appurtenant Equipment 10,000.00 10,000.00 c.p.
3. Community Park Improvements 10,000.00 10,000.00 c.p.
4. Neighborhood Park Resilient Surfaces 12,000.00 12,000.00 c.p.
5. Neighborhood Park Playgrounds 70,000.00 70,000.00 c.p.
{IJ:alW.
6. Fish Point, Island View & Sand Point 43,000.00 43,000.00 c.p.
Public Works
(Buildings/Plan()
7. Water Tower Painting 250,000.00 125,000.00 t.r.
125,000.00 u.f.
(Improvements)
8. Trunk Watermain (CSAH 21 from Carriage Pkwy to 42) 115,000.00 115,000.00 t.r.
9. 150th Street Reconstruction 765,000.00 196,000.00 4.25 0.55%
306,000.00 s.a
263,000.00 m.s.
10. Pixie Point - Green Oaks Street Reconstruction 925,000.00 555,000.00 12.02 1.54%
370,000.00 s.a
Water Resources
(lmDrovement~)
11. Catch Basins Replacement 15,000.00 15,000.00 S.w.
12. Storm Water Pond Dredging 20,000.00 20,000.00 S.w.
13. Water Quality Pond (CSAH 23 & Hwy 13) 20.000.00 20.000.00 s.w.
Totals ... 2,262,000.00 2,262,000.00
Financing Source Summary Project Amount Tax Impact
.Q.QJlar Percentage
$ Project Tax Levy 751,000.00 $16.27 2.09%
o.b. Operating Budget 7,000.00
u.f. Sewer & Water Utility Fund 125,000.00
s.w. Storm Water Utility Fund 55,000.00
c.p. Capital Park Fund 145,000.00
t.r. Trunk Reserve Fund 240,000.00
m.s. Municipal State Aid Fund 263,000.00
s.a. Special Assessments 676.000.00
Totals n. 2,262,000.00
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CAPSULE PROJECT SUMMARY
2002 CIP PROJE:CiS
City Cost
Project Description Project Amount Financing Tax Impact
QQllar.. Percentaae
Fire Department
1. Bunker Turnout Gear 8,000.00 8,000.00 o.b.
Park Department
(Development)
2. Park Appurtenant Equipment 10,000.00 10,000.00 c.p.
3. Community Park Improvements 10,000.00 10,000.00 c.p.
4. Neighborhood Park Resilient Surfaces 12,000.00 12,000.00 c.p.
5. Neighborhood Park Playgrounds 50,000.00 50,000.00 c.p.
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6. Deerfield Development 60,000.00 60,000.00 c.p.
Public Works
(Improvement$,)
7. Trunk Watermain (Coachman Ln to The Wilds) 45,000.00 45,000.00 t.r.
8. Trunk Watermain (CSAH 42 from 21 to McKenna) 115,000.00 115,000.00 t.r.
9. Carriage Hills Road (Knob Hill east extension) 175,000.00 175,000.00 m.s.a.
10. Shady Bch Trl/Fish Point Rd W. Reconstruction 1,185,000.00 711,000.00 15.03 1.89%
474,000.00 s.a
Water Resources
(Improvements)
11. Catch Basins Replacement 15,000.00 15,000.00 s.w.
12. Storm Water Pond Dredging 20.000.00 20.000.00 s.w.
Totals n. 1,705,000.00 1,705,000.00
Financing Source Summary Project Amount Tax Impact
.QQlIar Percentage
$ Project Tax Levy 711,000.00 $15.03 1.89%
o.b. Operating Budget 8,000.00
s.w. Storm Water Utility Fund 35,000.00
c.p. Capital Park Fund 142,000.00
t.r. Trunk Reserve Fund 160,000.00
m.s. Municipal State Aid Fund 175,000.00
s.a. Special Assessments 474.000.00
Totals ... 1,705,000.00
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CAPSULE PROJECT SUMMARY
2003 CIP PROJECTS
City Cost
Project Description Project Amount Financing Tax Impact
QQllaL Percentage
Fire Department
1. Bunker Turnout Gear 8,000.00 8,000.00 o.b.
(Buildings & Plan(l
2. Satellite Fire Station 750,000.00 750,000.00 g.O.
Park Department
(Development)
3. Park Appurtenant Equipment 10,000.00 10,000.00 c.p.
4. Community Park Improvements 10,000.00 10,000.00 c.p.
5. Neighborhood Park Resilient Surfaces 12,000.00 12,000.00 c.p.
6. Neighborhood Park Playgrounds 60,000.00 60,000.00 c.p.
Public Works
(Buildinas & Plan(l
7. Water Filtration Plant 6,000,000.00 6,000,000.00 w.r.
(lmorovement$,)
8. Franklin Trail to CSAH 23 Ring Road 660,000.00 660,000.00 s.a
9. Gateway Shores Street Reconstruction 1,180,000.00 708,000.00 14.67 1.81%
472,000.00 s.a
Water Resources
(Improvements)
10. Catch Basins Replacement
11. Storm Water Pond Dredging
15,000.00
25 000.00
15,000.00
25.000.00
s.w.
s.w.
Totals n.
8,730,000.00
8,730,000.00
Financing Source Summary
Project Amount
Tax Impact
.QQ.Jlar Percentage
$14.67 1.81 %
$ Project Tax Levy
o.b. Operating Budget
s.w. Storm Water Utility Fund
c.p. Capital Park Fund
s.a. Special Assessments
g.o. G.O. Referendum Bonds
w.r. Water Revenue Bonds
708,000.00
8,000.00
40,000.00
92,000.00
1,132,000.00
750,000.00
6.000.000.00
Totals n. 8,730,000.00
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