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-