HomeMy WebLinkAbout07 16 2018 2019-2028 CIP PresentationAugust 7, 2017
1
The purpose of this meeting is to
review the proposed 2019-2023
Capital Improvement Program (CIP).
Workshop Purpose
2
April 2:Long-Range Planning Workshop
June 18:Capital Plans Review I
July 16:Capital Plans Review II
August 6:Public Hearing and Adopt 2019-2023 CIP
Capital Plans Review I:
•Transportation Plan
•Street Overlay Plan
•Equipment Replacement Plan
•Park Plan
•Facilities Management Plan
Capital Plans Review II:
•Technology Plan
•Water Plan
•Sewer Plan
•Storm Water Plan
•Financial Impacts
•Planning for current & long-range IT
needs
•Existing Hardware and Software
Maintenance Costs
•Proposed Software Costs
Technology Plan
6
Technology Plan
7
General Fund
Computer Replacement
(includes work station, lap tops,
tough books, iPads, etc.)
2019: $26,520
2020: $15,455
2021: $8,949
2022: $10,993
City computers are on a six-year replacement schedule and laptops/tough
books on a five-year replacement schedule.
Website Redesign 2019: $45,000
2020: $8,000 (annual license fee)
2021: $8,000
2022: $8,000
Redesign of city website. An external audit of city’s network security
indicated that the platform on which the city’s website resides is a
security risk for hackers because the programming is outdated and no
longer supported. New website would include email sign up on specific
topics and capability to send alerts. Updated website would allow for live
stream of Council meetings, which current system cannot support.
Phone System Replacement 2019: $70,000 Current city phone system is over 12+ years old and failing. The new
phone system combines 7 buildings’ phone systems into one.
Managed Services Contract
(virtual Helpdesk)
2019: $23,000
This contract would provide virtual Helpdesk support. Rather than hire
additional FTEs at this time to support our IT Department, this contract
would provide Helpdesk support as well as regular monitoring of our
network to prevent ransomware, hackers and other security threats.
(recurring annual cost moving forward)
NIMBLE SANS Controller 2019 - $16,000
Upgrade the interface to the City’s network on the storage controller unit
for virtual servers.
Citizens Online Portal 2019 - $15,914
(Split between general/water/sewer funds)
Online service request module for public works complaints.
Technology Plan
8
Water Fund
BS&A Utility Billing System 2019 - $17,552
2020 - $17,552
Switch from Incode to BS&A for water meter reading replacement
project.
Sewer Fund
BS&A Utility Billing System 2019 - $17,552
2020 - $17,552
Switch from Incode to BS&A for water meter reading replacement
project.
Cable Fund
Tightrope Channel 2022 - $7,727
Replacement of playback system on cable channel. Part of three-year
Council Chamber audio/visual enhancement project.
Audio System for Chambers 2019 - $15,000 Part of three-year Council Chamber audio/visual enhancement project.
Utility Plans
9
•Minimal street reconstruction with
utilities in 2019. (CR21/TH13 project:
•Water -$100,000 / Sewer-$250,000)
•Utility reconstruction on private
streets:
•Inguadona area in 2021 ($592,000)
•Council direction to explore a Special Utility
Billing district as a financing source for private
street replacement (annual revenue: $200,000)
Utility Plans
10
•Utility rate study ($25,000 per
plan)
•AMRS/Utility debt service
beginning in 2019 (Annual
average of $152k each water &
sewer)
Water Plan
11
SMSC Water Purchase & Expansion
Agreement:
•SMSC Joint Water Facility Capital Costs for
Filter Cells ($2,100,000 funded from the Water
Storage Fund)
•Raw Watermain to support joint WTP in 2019
($1,300,000 funded from Trunk Oversizing
Fund )
•Plan updated for water purchase rate per
agreement
Water Plan
12
•Watermain replacements associated
with five-year transportation plan
street projects ($3,700,000)
•Water Equipment Replacement Plan
($109,000 annually)
Sanitary Sewer Plan
13
•Sanitary sewer replacements associated
with five-year transportation plan
street projects ($2,600,000)
•Five-Year Concrete Sewer Lining
($1,900,000)
•Sewer Equipment Replacement Plan
($68,000 annually)
•Inflow/Infiltration Prevention
($150,000 annually)
Sanitary Sewer Plan
14
•Summer Sewer Lock/Cost Break –average of
February and April Billing Cycle Consumption
•MCES portion of sewer rate-proposed cost
increase of 7.5%
Month Billing Cycle
Feb Nov 21 - Jan 20
Apr Jan 21 - March 20
June March 21 - May 20
Aug May 21- July 20
Oct July 21-Sept 20
Dec Sept 21- Nov 20
Sanitary Sewer Plan
15
•Current plan –Fund balance drops below
desired/recommended level
•Council considerations:
•Increase the city portion and MCES sewer rates
•Modify or phase out the summer sewer lock
•Issue debt to fund a portion of the 2020/2021
$2.2M capital needs.
•Postpone future year project(s)
•Consider a combination of the above.
Stormwater/Water Quality Plan
16
•Storm Sewer Replacements associated with
five-year transportation plan street projects
($1,500,000)
•Stormwater System Maintenance and Retrofits
($2,800,000)
•Experiencing an increase in stormwater
infrastructure costs due to increased
regulations and requirements.
•Enterprise Funds
•Water Fund 3% rate increase
•Sewer Fund city portion rate increase of $0.60 in 2019 and $.50
in 2020, if no change in current plan structure
•Sewer Fund MCES portion rate increase of $.20 in 2019
•Stormwater 5% rate increase in 2019
•Future adjustments to be defined by utility rate
analysis
Projected Change in Utility Fees:
Projected Impact of Fees CIP Workshop 07.16.2018
Current & Proposed* Rates:
2018 2019 2020 2021 2022 2023
Water <25000 4.67$ 4.81$ 4.96$ 5.11$ 5.26$ 5.42$
Water >25000 6.44$ 6.63$ 6.83$ 7.03$ 7.25$ 7.46$
Sewer-MCES 2.70$ 2.87$ 3.02$ 3.17$ 3.33$ 3.49$
Sewer-City 2.94$ 3.54$ 4.04$ 4.12$ 4.20$ 4.29$
Storm Water 14.34$ 15.06$ 15.73$ 16.44$ 17.18$ 17.96$
CFAC-Water 5.00$ 5.00$ 5.00$ 5.00$ 5.00$ 5.00$
CFAC-Sewer 5.00$ 5.00$ 5.00$ 5.00$ 5.00$ 5.00$
Impact of CIP –Average User
Utility Bill
19
Based on 8,000 gallons / cycle
2018 2019 2020 2021 2022 2023
Costs Per Cycle:106.81$ 114.86$ 121.84$ 125.59$ 129.48$ 133.52$
$$ Change from PY 4.55$ 8.05$ 6.98$ 3.75$ 3.89$ 4.04$
% Change from PY 4.4%7.5%6.1%3.1%3.1%3.1%
Annual Costs:640.87$ 689.16$ 731.05$ 753.56$ 776.91$ 801.14$
$$ Change from PY 27.30$ 48.29$ 41.89$ 22.50$ 23.35$ 24.23$
% Change from PY 4.4%7.5%6.1%3.1%3.1%3.1%
Tax Levies:2019 2020 2021 2022 2023
Equipment Revolving Fund 50,000 - - - -
Revolving Park Equip Fund 101,108 93,984 94,373 105,183 271,081
Facilities Management Fund - 30,000 50,000 - 25,000
PIR Fund 95,000 80,000 - 10,000 -
Debt Service 127,296 86,501 343,092 336,998 183,903
Total CIP Tax Levies 373,404 290,485 487,465 452,181 479,984
0.031
2019-2023 CIP Projected Change in CIP Tax Levy
2019 - Estimated % Increase in Tax Levy for
CIP components only
Projected five-year annual change in Total CIP Tax Levies:
Historical annual change in Total CIP Tax Levies:
Tax Levies:2016 2017 2018 2019 2020 2021 2022 2023
Equipment Revolving Fund 75,000 50,000 175,000 50,000 - - - -
Revolving Park Equip Fund - 213,406 24,778 101,108 93,984 94,373 105,183 271,081
Facilities Management Fund - - - - 30,000 50,000 - 25,000
PIR Fund - - - 95,000 80,000 - 10,000 -
Debt Service 512,213 221,387 (276,784) 127,296 86,501 343,092 336,998 183,903
Total CIP Tax Levies 587,213 484,793 (77,006) 373,404 290,485 487,465 452,181 479,984
0.056 0.043 (0.007) 0.031
2019-2023 CIP Projected Change in CIP Tax Levy
% Change in Tax Levy for
CIP components only
Note 1 : In 2016 the Revolving Park Equipment Plan was included in the
General Fund Tax Levy
Note 2 : In 2018 the MV Debt Levy was reducted by $790k due to the 2017
final payment of the 2005 MV Parks Referendum
Actual
Annual projected total CIP tax levy by component
Tax Levies:2019 2020 2021 2022 2023
Equipment Revolving Fund 600,000 600,000 600,000 600,000 600,000
Revolving Park Equip Fund 339,292 433,276 527,649 632,832 903,913
Facilities Management Fund - 30,000 80,000 80,000 105,000
PIR Fund 95,000 175,000 175,000 185,000 185,000
Debt Service 3,497,468 3,583,968 3,927,061 4,264,059 4,447,962
Total CIP Tax Levies 4,531,760 4,822,244 5,309,710 5,761,891 6,241,875
2019-2023 CIP Projected CIP Tax Levy
Council Considerations:
•Proposed utility rate changes
•Sewer Fund options for modifying
summer sewer lock
•Utilize General Fund reserves for some
2019 proposed technology costs
Council Discussion
23
Next steps:
•Update plans based on council direction
and new information
•CIP Public Hearing –August 6, 2018
•Budget Workshop-August 20, 2018
Council Discussion
24
End of Presentation
25
Historical 2018 annual change in Tax Levies:
2018 Property Tax Levy Comparison
Change 17 - 18
Property Taxes 2017 2018 Amount Percent
Levy - Tax Capacity
General Fund - Operating 7,192,793$ 7,779,182$ 586,389$ 8.15%
Debt Service Funds 2,628,937 3,142,620 513,683 19.54%
Revolving Equipment Fund 375,000 550,000 175,000 46.67%
Revolving Park Equipment Fund 213,406 238,184 24,778 11.61%
Facilities Management Fund - - - n/a
10,410,136$ 11,709,986$ 1,299,850$ 12.49%
Levy - Market Value - General Fund 1,018,019 227,552 (790,467) -77.65%
Levy - Economic Dev Authority 140,000 140,000 - 0.00%
Total Levy 11,568,155$ 12,077,538$ 509,383$ 4.40%
Projected five-year annual change in debt
levy:
2019 2020 2021 2022 2023
Debt:
Existing CIP (425,209) (162,795) 12,313 (24,001) (223,176)
New CIP 545,639 242,296 319,059 359,849 396,308
Market Referendum 6,866 7,000 11,720 1,150 10,770
Change in Debt Levy 127,296 86,501 343,092 336,998 183,903
2019-2023 CIP Projected Change in Debt Levy
2018 project bonding with 2019 debt levy impact
Fire Pumper Replacement
•Fire Station #2 SCBA and Parking Lot Replacement
•2018 Street Improvement Projects
o Franklin Area
o Huron Area
•2018 Street Reconstruction Projects
o Duluth Ave/TH 13
o County Wide Flashing Yellow Signal Conversion
Impact of CIP –Large User
Utility Bill
28
Based on 20,000 gallons / cycle
2018 2019 2020 2021 2022 2023
Costs Per Cycle:230.51$ 249.57$ 266.00$ 274.32$ 282.94$ 291.87$
$$ Change from PY 10.75$ 19.05$ 16.44$ 8.31$ 8.62$ 8.94$
% Change from PY 4.9%8.3%6.6%3.1%3.1%3.2%
Annual Costs:1,383.08$ 1,497.39$ 1,596.02$ 1,645.91$ 1,697.63$ 1,751.24$
$$ Change from PY 64.49$ 114.31$ 98.63$ 49.89$ 51.71$ 53.61$
% Change from PY 4.9%8.3%6.6%3.1%3.1%3.2%
Impact of CIP –Heavy User
Utility Bill
29
Based on 30,000 gallons / cycle
2018 2019 2020 2021 2022 2023
Costs Per Cycle:342.45$ 370.91$ 395.51$ 407.91$ 420.75$ 434.07$
$$ Change from PY 16.20$ 28.47$ 24.59$ 12.40$ 12.85$ 13.32$
% Change from PY 5.0%8.3%6.6%3.1%3.1%3.2%
Annual Costs:2,054.69$ 2,225.49$ 2,373.03$ 2,447.43$ 2,524.52$ 2,604.41$
$$ Change from PY 97.18$ 170.80$ 147.55$ 74.40$ 77.09$ 79.89$
% Change from PY 5.0%8.3%6.6%3.1%3.1%3.2%