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HomeMy WebLinkAbout8A - 1996-200 CAP AGENDA #: PREPARED BY: SUBJECT: DATE: INTRODUCTION: DISCUSSION: 8A RALPH TESCHNER FINANCE DIRECTOR CONSIDER APPROVAL OF 1996-2000 CAPITAL IMPROVEMENT PROGRAM AUGUST 21, 1995 Annually the City prepares a capital improvement program which is designed to identify infrastructure improvements which are necessary as a result of primarily two factors; community growth and replacement consideration. The 1996-2000 CIP (Capital Improvement Program) contains those improvements necessary to maintain a progressive community. (Please bring your workshop copy to the meeting). Such projects include not only city initiated improvements but anticipated County and State road improvements as well. In some cases they involve a financial responsibility on behalf of Prior Lake while in others they may not. In addition, capital equipment purchases are included within the CIP. Within the CIP is a condensed project summary sheet (see amended golden rod attachment entitled "Reference Summary") that presents a list of projects by year along with a financing source recap and the City's specific share of the project cost. This capsule summary should be helpful for the Council to refer back and forth between years as a quick reference guide. Added to the back of the summary this year, (please insert attached page) is a sheet entitled "Future Project Horizon". It identifies those projects that are deemed important, however are projected to occur beyond the five year timeframe of the present CIP plan. They are either premature or lack adequate funding at the present time. Making the Council aware of such projects allows for consideration on a more long term basis. It is important for the Council to recognize that the document is a flexible planning tool that is affected by a number of governmental agencies plus a significant impact by the Shakopee Mdewakanton Dakota Community. The Council should critically review those proposed projects for 1996. These improvements selected for bonding will affect the property taxes in 1997. Council should remember that the school district and county will also influence the level of taxes through their annual levies 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 or demand and also to avoid unnecessary staff effort and expense. Engineering will follow 16200 Eagle Creek Ave., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL 9PPORTIJNITY EMPLOYER up the Council decision with respect to project delineation by preparing a feasibility report soon after. Adequate lead time is extremely 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 plan perspective than an implementation schedule. However, of equal importance is to balance the tax resources from year to year as much as possible. Under the project levy column of the Reference Summary, where the financing sources are outlined, is the cumulative property tax impact by dollar and percentage. The major projects proposed for 1996 and their individual associated tax impact are as follows: Street Sealcoating Mushtown Road CSAH 21 $50,000 $240,000 $475,000 Project Levy City Tax Impact S .%. $ 1.51 0.23% $ 7.22 1.11 % $14.29 2.19% PrQject Description Totals ... $765,000 $23.02 3.53% 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 $120,000 This typical value has been utilized for purposes of calculating the following tax impact. (A 1995 base tax of $652.01 [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. ) 1996 ... $765,000 1997 ... $695,000 1998 ... $320,000 1999 ... $620,000 2000 ... $560,000 S $23.02 $20.50 $ 9.24 $17.47 $15.53 Tax Impact ![Q 3.53% 3.04% 1.33% 2.48% 2.15% Project Year and Levy Amount Each of the above amounts represent first year tax increases which gradually slide downwards over the the ten year term of the bond issues due to valuation growth. Therefore the beginning tax base of $652.01 would actually increase to $737.77 by the year 2000. The total increase of $85.76 represents an annualized average percentage increase during the course of the 1996-00 CIP of 2.63%. The annual tax impact is very balanced over the course of the CIP and is intended to be within the 2-3% range so that when combined with the tax levy associated with the operating budget each year we will be at a single digit increase in terms of combined overall tax impact on an annual basis. At the CIP workshop the Council directed Staff to delay Mushtown Road until 1?97. However Staff is requesting the Council to reconsider and retain the project for 1996 or exchange the Mushtown project for another 1997 project with a similar tax impact. The reason is that if we do move Mushtown Road improvements back the result is that the tax impact will drop to 2.42% and then jump up to above 4% the following year. This allows very little room for any budget increase in 1997. The remaining directives from the Council have been incorporated into the new Capsule Project Summary sheets which were as follows: a. Move new municipal well construction up from 1999 to 1997. b. Move telemetry system from the year 2000 to future consideration category. c. Move water treatment plant from the year 2000 to future consideration category. d. Move CSAH 23 alignment from the year 2000 to future consideration category. ALTERNATIVES: The appropriate department heads will present project summation of those improvements which would come under their departmental responsibility. The Council should carefully examine the proposed projects for each year, focusing particularly upon those scheduled for 1996. 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 1996-2000 Capital Improvement Program as per Council determination. 3. Approve the proposed 1996-2000 Capital Improvement Program as submitted. RECOMMENDATION: 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 department will begin the feasibility study as soon as possible for those projects scheduled for 1996. REVIEWED BY: ACTION REQUIRED: Capital Improvement A9SOS.WRT CAPSULE PROJECT SUMMARY 1996 CIP PROJECTS Project Description Project Amount City Cost Fire Deoartment. (Equipment) 1. Bunker Turnout Gear S,OOO.OO S,OOO.OO . t Park Denartment: (Developments) 2- Basketball Courts 10,000.00 5,000.00 3. Memorial Park Fteld Upgrade 10,000.00 10,000.00 4. Open Air Park ShelterS (S) 30,000.00 30,000.00 5. Neighborhood Parks; 40,000.00 40,000.00 Cardinal Ridge Wilds 6. Pond Athletic Complex Expansion 100,000.00 50,000.00 (Trails) 7. Westbury Ponds 10,000.00 10,000.00 8. Wtldemess Ponds 2S,000.00 2S,000.00 9. Crossandra Street Sidewalk 27,000.00 27,000.00 10. Cardinal Ridge 6S,000.00 6S,000.00 Public Works: (BldsIPlant) 10. Generator Receptacle IS,OOO.OO 15,000.00 11. Wat.er Control Panel 3S,000.00 3S,000.00 (Improvements) 12. CSAH 42 Signal Maintenance 6,000.00 6,000.00 13. Street SealcoaDng 50,000.00 50.000.00 14. Lift Station Renovation 93,000.00 93,000.00 15. Mushtawn Road 340,000.00 240,000.00 16. Northwood Road 920,000.00 370.000.00 17. CSAH 21 2,110.000.00 560.000.00 Wat.er Resource' (Improvemenu) 18. Green HeightlDutch Avenue Culvert 10,000.00 10.000.00 19. Bluff Heights Wat.er Quality Pond 10.000.00 10,000.00 20. FISh Point Parle Wat.er Quality Pond 4S,ooo.OO 45,000.00 21. Creek Ch4Dl1el Stabilization/Green Heights 4800000 4800000 Totals... $4,004,000.00 $1,749,000.00 Financing Source Summary Project Amount Tax Impact fIiIIj -.. ,. Project Levy 76S,000.00 23.02 3.53% Municipal Stare Aid 370.000.00 Operating Budaets 124,000.00 Contributions 55.000.00 Capital Park Fund 262,000.00 Trunk Reserve Fund 228.000.00 Developer 100,000.00 Special Assessments 550,000.00 intergOvernmental 1~~00000 $4,004,000.00 Legend: o.b.-operating budget f.b.-fund balance e.f.-equipment fund e.p.-capital park s.a.-special assessments t.r.-trunk reserve Sof.-stann water utility · 1997 Taxes -7- Tax Impact ~-, ~..-.-_."../,w..;:...:<- o.b. -% - ~~"C::p;~ (5cYS09&) j',.',,' ~:: .;{f~J~~:j:."'" '. c.p. c.pJpant (S<YS09&) c.p. c.p. c.p. e.p. t.r. tr. o.b. 1.51 G.23% tr. 7:J.2 1.11% s.a. 14.29 2.199& ..,:;~. t ., '/,~:Ei~:,:)}::.< 'Lf: .:~~-~ '''-~ -' ~~:\:.~, Lf. s.f. s.f. 1. 2- 't~[;(::'::: ,". 5. 6. 7. 8. 9. REFERENCE SUMMARY Project Description Fire Deoartment. ( EquipIMnt) Bunker Thmout Gear Parle ~oartment. ( DevtllopIMnts) Basketball Courts Memorial Park Ficld Upgrade " Open Air Park Shelters (S) Ncighborhood Parks Pond Ilrigation Lakcfront Park Paving Pond Athletic Complcx Lighting Lakcftont Park Master Plan Improvcments Public Works' (ImprovtlIMnts) Duluth Avcnuc Signal Maintenance Water Distribution Automation Ncw Municipal Wcll Street ScaJcoating Lift Station Rcnovation , Street Overlay Program CSAH 42 east of CSAH 21 Water Resource' (ImprovtlIMnts) Center Road Water Quality Pond Westbury Ponds Dam Sand Point Park Water Quality Pond Gateway Shores Channel Stabilization Storm Water Pond Dn:dging Totals._ Flnandng Source Summary Project Levy Operating Budget Referendum Contributions Capital Parle Fund Trunk Reserve Fund Special Assessments Intergovernmental 1997 CIP PROJECTS Project Amount City Cost 5,000.00 5,000.00 10,000.00 5.000.00 10.000.00 10.000.00 30.000.00 30.000.00 60.000.00 60.000.00 100.000.00 100,000.00 150,000.00 150.000.00 325.000.00 325.000.00 400.000.00 400.000.00 6,000.00 6.000.00 35.000.00 35,000.00 450.000.00 450.000.00 50.000.00 50,000.00 95,000.00 95.000.00 785,000.00 315.000.00 2.090.000.00 490,000.00 5,000.00 5,000.00 6.000.00 6.000.00 10.000.00 10.000.00 15,000.00 15,000.00 2000000 2000000 $4,657,000.00 $2.582.000.00 Project Amount 695,000.00 102.000.00 975.000.00 5,000.00 105,000.00 705,000.00 470.000.00 1.600 000 00 $4,657,000.00 'lax Impact ~f~ ~~ ~~ .......'::~-~ ..' 20.50 3.04% -8- Project Description Project Amount City Cost Fire Denartment. (Equipment) L BunlcerTumoutGear ~.OOO.OO ~.OOO.OO 2 Hose Reels IS,OOO.OO IS,OOO.OO 3. Suburban 2S,OOO.OO 2S,OOO.OO 4. Grass Fue Rig w/Wat.er Tank 40,000.00 40,000.00 S. Bulk Tank Truck 100,000.00 100,000.00 6- Pumper Trucks (2) 480,000.00 480,000.00 (FaciUty) i. Satellite Fue Station TBD TBD Park Deoartment. ( Dev~loptMnts) 8. Basketball Courts 10,000.00 S,OOO.OO 9. Memorial Park Field Upgrade 10,000.00 10,000.00 10. Open Air Park Shelters (S) 30,000.00 30,000.00 11. Neighborhood Parks 60,000.00 60,000.00 Public Works' ( Improv~tMnts) 12. Street Sealcoating SO,OOO.OO SO,OOO.OO 13. tift Station Renovation 88,000.00 88,000.00 14. Pike Lake Trail (south of CSAH 42) 42S,000.00 .(). IS. Ftsh Point Road Extension toward CSAH 21 430,000.00 430,000.00 16. Street Overlay Program 380,000.00 lSO,OOO.OO 17. CSAH 42 from CSAH 21 (west) 2.310,000.00 310,000.00 Water Resource' ( Improv~tMnts) 10,000.00 18. Cates Street Dam (phase I) 10,000.00 19. Duluth Avenue Dam 10,000.00 10,000.00 20. Stann Water Pond Dredging 2Sooo00 2Sooo00 Totals... $4.503,000.00 S 1,843,000.00 Finandng Source Summary Project Amount 1Bx Impact :.notrai :~i1;~&i Project Levy 320,000.00 9.24 1.33,*, OperaDnl Buellct SO,OOO.OO Referendum 660,000.00 Contributions S,ooo.OO Capital Park Fund 10S,000.00 Trunk Reserve Fund 278,000.00 MSA Funds 430,000.00 Special Assessments 6SS,OOO.OO Inteqovernmental 2000 000 00 $4.503,000.00 REFERENCE SUMMARY 1998 CIP PROJECTS -9- . . '.'_.""T"""".~-_._.'._'.__._'---_.' Project Description Fire Deoartment. ( Equipl1'lent) I.Bunker Turnout Gear 11. 12. 13. 14. 15. 16. 17. Park Deoartment. ( Equipl1'lent) Bobcat Cushman Field Groomers (2) Taro Mowers (2) Dump Tmck(I Ton) 314 T Pickup Tmcb (2) (Dev~lopfM1lu) Basketball Courts Memorial Park Field Upgrade Open Air Parle Shelters (5) Neighborhood Parks Public Works' ( Equipl1'lent) Skid Loader Wmg & Plow Pickup Tmck wI plow (I T 4x4) Utility Pickup Truck (1 T 4x4) 314 T Pickups 4x4 w/plow (2) Front End Loader Tmck, Box & Sander (4) (lmprov~l1'Ients ) Street Sealcoating tift Station Renovation Street Overlay Program 18. 19. 20. REFERENCE SUMMARY 1999 CIP PROJECTS Project Amount 5,000.00 18,000.00 'r1,OOO.OO 32,000.00 . 34.000.00 42,000.00 10,000.00 10,000.00 30,000.00 70.000.00 10,000.00 15,000.00 35,000.00 40,000.00 60,000.00 80.000.00 .' 240,000.00 50,000.00 76,000.00 1.425,000.00 Water Resource' (1mprov~l1'Ients) Stonn Warer Pond Dledging CSAH 23/Hwy 13 Water Quality Pond Totals... Flnandng Source Summary Project Levy Equipment Fund/Certificates Operaling Budget Contributions Capital Park Fund Trunk Reserve Fund Special Assessments Project Amount . ". 'nix ~p~~t IIl6 _ 620,000.00 17.47 2.48,*, 633,000.00 70.000.00 5.000.00 115.000.00 76.000.00 8~~ 000 00 30.000.00 3S 000 00 $2.374.000.00 -10- City Cost 5,000.00 18.000.00 7:1,000.00 32,000.00 34.000.00 42,000.00 5.000.00 10.000.00 30.000.00 70,000.00 10.000.00 15.000.00 35.000.00 40.000.00 60;000.00 80.000.00 240.000.00 50.000.00 76.000.00 570.000.00 30,000.00 35.000 00 51.514,000.00 1. "t<\. .~,. .~;':~~:i' ,1 "1 2- . .3. ",,' 4. $. - 4I;~ 6. 7. 8. ,9. 10. 11. 12. I 'j . .:l !f":"::"" ~ ( '.'/',:' . ~J ,~ "---. \ Project Description Pire Denartment. (Equipment) Bunker Turnout Gear REFERENCE SUMMARY 2000 CIP PROJECTS Park Denartment. (Dnelopmmg) Basbtbal1 Courts Memorial Park Fie1cl Uparade Open Air Park Shelten (5) Neiabborboocl P8rb Public Works' (ImprovDMIIU) , Street SealCOlting Lift Stadon Renovation Carriage Hills Road Extension (east) Street Overlay Program Water Resomce' (Improvements) Duluth Avenue StonD Sewer Cates Street Dam (phase m ,Stann Water Pond Dredpng Totals... Flnandng Source Summary Project Levy Operatinl BOOFt Contributions Capital Park Fund Trunk Reserve Pund MSA Funds Special Assessments -11- Project Amount s.ooo.oo 10,000.00 10,000.00 30,000.00 , 70.000.00 50,000.00 81.000.00 175,000.00 1,290,000.00 15.000.00 25,000.00 35 000 00 $1.796,000.00 Project Amount 560.000.00 80,000.00 5,000.00 115.000.00 81,000.00 175,000.00 78000000 $1,796,000.00 City Cost 5,000.00 5,000.00 10.000.00 . 30,000.00 '-70,000.00 50,000.00 81,000.00 175,000.00 510,000.00 15.000.00 25.000.00 3500000 $1.011.000.00 1U Impact .. ..,- 15.53 2.15% ~. FUTURE PROJECTS HORIZON I The projects listed below are deemed important, however are projeded to occur beyond the five year timeframe of the current capital improvement program plan. They are either premature or lack adequate funding at the present time. Identification of these projects provides an awareness and allows for consideration on a more long term basis. ,~\~~~~J-~~~'I:~~"i,..:;:;~i<~='~;'~~'f:'?~~ ...~~..i;t.~~'~~'2~:~'~#'<" ~~'<if~'t i:~~:'}:::'~;{~l:~;:.m~.;.j~,..<."c~.;:;~]f~',^ 400.000.00 ,', ':':.' .:;~,rf;;' .~, ~;~:::i/'~;jt~.~, '.' 2: ' CSAH 23 Relocadon 1.500.000.00 3. Water Treatment Plant 4.000.000.00 ,~:: ;~ .~.,;" ~:!.:'.;;;:,:,:~,:.:"'~ '.;1: .;.~':~f1-.Y,~'.:}: :.,~'~.(: ",.J ~';:. ^ 1.500.000.00 400.000.00 4..000 000 00 SS.900.000.00 SS,900,OOO.OO , ,~- o. SS,900,OOO.OO Fln~~~~ISource S~ ,;,~",:~,::(rrc;~~ ";, ~ ,', .,Trunk Reserve Fund , ." 'Revenue Bonds .I I . i . : , .-12-