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Home My WebLink About7A 2018 CIP PresentationAugust 7, 2017 1 Provide an overview of the Capital Improvement Program. Provide details of the 2018 CIP including any significant shifts in years from the 2017-2021 CIP Plan Purpose 2 The CIP is a multi-year planning document. It identifies projects for the next five years. The purpose of the CIP is to assure that funds are available when projects are required to meet community needs. What is CIP? 3 Facilities Management Plan Equipment Replacement Plan Park Plan PIR Plan for Street Overlay Projects Technology Plan Transportation Plan Water Plan Sewer Plan Storm Water/Water Quality Multi-Year Plans Included in CIP 4 For each plan, staff forecasts estimated costs (uses of funds) and possible funding sources (sources of funds). The approved CIP does not constitute final project or purchase approval. What is CIP? (continued) 5 Facilities -$873,703 ▪Fire Station #1 SCBA Packs and Fill Stations ▪Fire Station #1 Parking Lot & Sidewalk ▪Fire Station #1 Carpet, doors, etc. ‣The 2017 -2021 Facilities Plan assumes the issuance of Capital Improvement Plan bonds in an amount not to exceed $1.9 million 6 2018 Projects Vehicles and Equipment -$1,394,027 ▪Fire Pumper ▪Public Works 5 Ton, Single Axle Truck ▪Public Works Sweeper ▪Police Patrol Squad ‣The annualized cost of the equipment replacement is $875,000. The financing plan includes an increase in the tax levy from $375,000 in 2017 to $550,000 in 2018. 7 2018 Projects (Cont.) Revolving Park Equipment Fund (Fund 430) Existing Park Improvements–$368,184 ▪Capital & Park Amenity Replacements ▪Trail, Sidewalk and Boardwalk Replacements ‣The financing plan includes an increase in the tax levy from $30,000 in 2017 to $130,000 in 2018. This is to meet our trail and sidewalk replacement needs. 2018 Projects (Cont.) 8 Capital Park Fund (Fund 225) ‣Revenues are primarily from park dedication fees. Use of funds in the Capital Park Fund is restricted by statute. ‣The next neighborhood park development is not scheduled until 2019. 2018 Projects (Cont.) 9 Public Improvement Revolving (PIR) Fund For Mill and Overlay Projects (Fund 450) ‣The 2018 project includes approximately four miles of streets in the Willows area. As we develop the budget, staff will evaluate the project expenditures and funding sources. 10 2018 Projects (Cont.) Technology -$196,400 ▪Laserfiche Upgrade ▪Cartegraph Upgrade ▪Production equipment for City Council control room 2018 Projects (Cont.) 11 Streets Transportation Plan-$21,347,745 ▪CSAH 42 and Highway 13 ▪Park Avenue (Shift from 2017 to 2018) ▪Franklin Trail from Summer Street to CSAH 44 ▪Green Heights /Pershing area Improvements ▪Huron Street Area Improvements ▪The Duluth and TH 13 Improvements project may be moved to 2018. This topic was slated for discussion at tonight’s City Council workshop. 2018 Projects -Public Works 12 13 Source Amount MSA (200,000) Tax Levy (3,430,000) Special Assessment (1,702,895) Water Fund (1,844,500) Sewer Fund (1,200,000) Storm Water Fund (491,843) Total $(8,869,238) Water -$4,319,480 ▪SMSC Joint Water Facility Capital Costs for Filter Cells ($1,500,000 funded from the Water Storage Fund) ▪Watermain replacements associated with street projects ($1,844,500) ▪AMRS Replacement ($850,000) Sanitary Sewer -$2,131,297 ▪Sewer replacements associated with street projects ($1,200,000) ▪AMRS Replacement ($850,000) 2018 Projects (Cont.) 14 Storm Water/Water Quality -$601,843 ▪Storm Sewer Replacements associated with street projects ($491,843) ▪Stormwater System Maintenance and Retrofits 2018 Projects (Cont.) 15 Park Plan -Pickle Ball Court Information Transportation Plan -Consider moving the Duluth Avenue/TH13 project to 2018 ▪ Changes from Workshops 16 2018 Utility Rates/Debt Issuance (cont’d) ▪Water Plan –proposed $.25 rate increase. ▪Sewer Plan –proposed $.25 rate increase (City portion) and debt issuance of $650,000 to finance the sewer utility portion of the 2018 transportation projects. ▪Changes to the 2018 street projects and/or the proposed water purchase rate changes would impact the proposed rate increases/debt issuance. Changes from Workshops 17 Impact of CIP –Average User Utility Bill 18 Based on 8,000 gallons / cycle 2017 2018 2019 2020 2021 Costs Per Cycle:102.26$ 107.00$ 111.02$ 115.23$ 119.64$ $$ Change from PY 5.63$ 4.74$ 4.03$ 4.21$ 4.40$ % Change from PY 5.8%4.6%3.8%3.8%3.8% Annual Costs:613.57$ 641.99$ 666.15$ 691.40$ 717.82$ $$ Change from PY 33.75$ 28.42$ 24.16$ 25.26$ 26.41$ % Change from PY 5.8%4.6%3.8%3.8%3.8% Impact of CIP -Debt 19 Impact of CIP -Debt 20 Impact of CIP –Change in Debt Levy 21 2017 2018 2019 2020 2021 Debt: Existing CIP 258,087 213,124 (27,264) (275,795) 12,313 New CIP - 341,790 351,210 189,000 437,000 GESP Lease Payment 30,000 15,614 (0) - - Market Referendum (66,700) (790,801) 7,200 7,000 11,720 Change in Debt Levy 221,387 (220,273) 331,146 (79,795) 461,033 2017-2021 CIP Projected Change in Debt Levy Impact of CIP –Total CIP Tax Levy 22 Tax Levies:2017 2018 2019 2020 2021 Equipment Revolving Fund 375,000 550,000 600,000 600,000 600,000 Revolving Park Equip Fund 213,406 368,184 469,292 563,276 657,649 Facilities Management Fund - - - 30,000 50,000 Debt Service 3,646,956 3,426,683 3,757,829 3,678,034 4,139,067 Total CIP Tax Levies 4,235,362 4,344,867 4,827,121 4,871,310 5,446,716 2017-2021 CIP Projected CIP Tax Levy 23 . LONG RANGE FORECAST CIP Workshop 08.07.2017 2017 2018 2019 2020 2021 Tax Levies: General 7,192,792 7,846,015 8,256,262 8,749,651 9,127,890 Equipment Revolving Fund 375,000 550,000 600,000 600,000 600,000 Revolving Park Equip Fund 213,406 368,184 469,292 563,276 657,649 Facilities Management Fund - - - 30,000 80,000 EDA Fund 140,000 140,000 140,000 140,000 140,000 Debt Service 3,646,956 3,426,683 3,757,829 3,678,034 4,139,067 Breakdown of Change in Levies: General 19,999 653,223 410,247 493,389 378,239 Equipment Revolving Fund 50,000 175,000 50,000 - - Revolving Park Equip Fund 213,406 154,778 101,108 93,984 94,373 Facilities Management Fund - - - 30,000 50,000 EDA Fund (15,000) - - - - Debt 221,387 (220,273) 331,146 (79,795) 461,033 Total Change 489,792 762,728 892,501 537,578 983,645 General 0.28%9.08%5.23%5.98%4.32% Equipment Revolving Fund 15.38%46.67%9.09%0.00%0.00% Revolving Park Equip Fund n/a 72.53%27.46%20.03%16.75% Facilities Management Fund n/a n/a n/a n/a 166.67% EDA Fund -9.68%0.00%0.00%0.00%0.00% Debt 6.46%-6.04%9.66%-2.12%12.53% Total Change 4.42%6.59%7.24%4.07%7.15% Projected Tonight –CIP Overview ‣Council discussion and public input Next steps: ‣Update plans based on council discussion and new information ‣Budget Workshop-August 21, 2017 Council Discussion 24 Impact of CIP –Rate Change History for Average User 25 Impact of CIP –Large User Utility Bill 26 Based on 20,000 gallons / cycle 2017 2018 2019 2020 2021 Costs Per Cycle:219.77$ 230.98$ 240.40$ 250.26$ 260.58$ $$ Change from PY 13.45$ 11.22$ 9.42$ 9.86$ 10.32$ % Change from PY 6.5%5.1%4.1%4.1%4.1% Annual Costs:1,318.59$ 1,385.89$ 1,442.41$ 1,501.56$ 1,563.48$ $$ Change from PY 80.70$ 67.29$ 56.52$ 59.15$ 61.92$ % Change from PY 6.5%5.1%4.1%4.1%4.1% Impact of CIP –Heavy User Utility Bill 27 Based on 30,000 gallons / cycle 2017 2018 2019 2020 2021 Costs Per Cycle:326.25$ 343.34$ 357.52$ 372.37$ 387.91$ $$ Change from PY 20.22$ 17.09$ 14.19$ 14.85$ 15.54$ % Change from PY 6.6%5.2%4.1%4.2%4.2% Annual Costs:1,957.51$ 2,060.03$ 2,145.14$ 2,234.22$ 2,327.46$ $$ Change from PY 121.31$ 102.52$ 85.11$ 89.08$ 93.24$ % Change from PY 6.6%5.2%4.1%4.2%4.2%