HomeMy WebLinkAbout1A2 2020-2029 CIP - Council Workshop - 2019.07.15 PPTAndy Brotzler
Cathy Erickson
2020-2024 CAPITAL
IMPROVEMENT PROGRAM
July 15, 2019
Workshop Purpose
The purpose of this meeting is
to review the proposed 2020-
2024 Capital Improvement
Program (CIP).
2020-2024 CIP Process
May 20:Long-Range Planning Workshop
June 17:Capital Plans Review I
July 15:Capital Plans Review II
August 5:Public Hearing and Adopt 2020-2024 CIP
June Workshop Topics
Capital Plans Review I:
▪Equipment Replacement Plan
▪Park Plan
▪Facilities Management Plan
▪Technology Plan
Today’s Topics
Capital Plans Review II:
▪Transportation Plan
▪Street Overlay Plan
▪Water Plan
▪Sewer Plan
▪Storm Water Plan
▪Financial Impacts
Street Facts
Preventative Maintenance
77 Miles
Rehab./Recon.
7 Miles
Resurface
10 Miles
Rehab./Recon.
23 Miles
Resurface
15 Miles
2.5%1.4%
26.1%
15.8%
27.1%
20.3%
6.8%
Distribution of Road Ages
Unimproved
0-1970
1970-1980
1980-1990
1990-2000
2000-2010
2010-2020
Distribution of Road
Conditions
Preventative Maintenance
77 Miles
Rehab./Recon.
7 Miles
Resurface
10 Miles
Network OCI: 64
Total: 109 Miles
Does not include gravel roads
0 to 45
21%45 to 65
14%
65 to 100
65%
Preventative Maintenance
71 Miles
Rehab./Recon.
23 Miles
Resurface
15 Miles
Street Funding
Preventative Maintenance
77 Miles
Rehab./Recon.
7 Miles
Resurface
10 Miles
Transportation Plan
Transportation Plan Changes
10
Shifting of projects between years
▪To coincide with Scott County Transportation
Plan
▪To moderate the impact on the tax levy and
utility user rates
▪To prioritize streets based on current
conditions
Street Overlay Plan
11
▪The plan reflects three-four miles of street
mill and overlay per year.
▪Increase in the Street Overlay/Resurface
assessment, based on increase in the CCI is
recommended
▪Funding sources are special assessments and
tax levy. Tax levy is reviewed annually &
may be reduced based on special
assessment prepayments.
▪The 2020 project streets are detailed in the
agenda report.
Utility Plans
12
•Greater street reconstruction with utilities in
2019 than planned.
(CR21/TH13 project: Water -$392,000 / Sewer-$588,000)
•Utility reconstruction on private streets:
Inguadona area in 2021 ($311,000)
Council direction to explore a Special Utility Billing district as a
financing source for private street replacement (annual revenue:
$200,000)
Utility Plans
13
•Utility rate study is underway.
o Establish a base rate to cover fixed
costs
o Evaluate our tiered rate structure
•AMRS contract costs fund balance
impact
•Planned utility billing system upgrade
-2020
Water Plan
14
•Watermain replacements associated
with five-year transportation plan street
projects ($6,200,000)
•Water Equipment Replacement Plan
($115,000 annually)
Sanitary Sewer Plan
15
Sanitary sewer replacements associated with
five-year transportation plan street projects
($3.700,000)
Ten-Year Concrete Sewer Lining ($1,900,000)
Sewer Equipment Replacement Plan ($62,000
annually)
Inflow/Infiltration Prevention ($177,000
annually)
Sanitary Sewer Plan
16
•Summer Sewer Lock/Cost Break –average of
February and April Billing Cycle Consumption
•MCES portion of sewer rate-proposed cost increase
of 7.34%
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 20 - Nov 20
Sanitary Sewer Plan
17
•Current plan –Fund balance drops below
desired/recommended level
•Council considerations:
o Increase the city portion and MCES
sewer rates
o Issue debt to fund a portion of the
2020/2021 $2.2M capital needs.
o Postpone future year project(s)
o Consider a combination of the above.
Stormwater/Water Quality Plan
18
•Storm Water Quality Improvements
associated with five-year transportation
plan street projects ($2,500,000)
•Pond Maintenance and Retrofits ($200,000)
•Experiencing an increase in stormwater
management costs due to increased
regulations and requirements.
Financial Impacts
19
Projected Change in Utility Fees:
Impact of CIP –Average
User Utility Bill
20
Based on 8,000 gallons / cycle
Financial Impacts
Projected five-year annual change in Debt Levy Only:
2020 2021 2022 2023 2024
Debt:
Existing CIP 56,457 20,251 (23,733) (214,511) (96,115)
New CIP - 284,349 423,539 527,288 232,233
Market Referendum 7,639 11,431 1,150 10,770 15,125
Change in Debt Levy 64,096 316,030 400,956 323,547 151,243
2020-2024 CIP Projected Change in Debt Levy
Financial Impacts
Projected five-year annual change in Total CIP Tax Levies
before one-time 2020 equipment and trail levy adds:
Tax Levies:2020 2021 2022 2023 2024
Equipment Revolving Fund 25,000 25,000 25,000 25,000 25,000
Revolving Park Equip Fund 29,708 56,000 43,000 31,000 50,000
Facilities Management Fund 30,000 50,000 25,000 35,000 25,000
PIR Fund 35,000 35,000 35,000 - -
Debt Service 64,096 316,030 400,956 323,547 151,243
Total CIP Tax Levies 183,804 482,030 528,956 414,547 251,243
2020-2024 CIP Projected Change in CIP Tax Levy
Financial Impacts
Projected five-year annual change in Total CIP Tax Levies:
This includes the following 2020 levy adds:
$114k Police radio equipment replacement
$90k Parks trail replacement:
Tax Levies:2020 2021 2022 2023 2024
Equipment Revolving Fund 139,000 (89,000) 25,000 25,000 25,000
Revolving Park Equip Fund 119,708 (34,000) 43,000 31,000 50,000
Facilities Management Fund 30,000 50,000 25,000 35,000 25,000
PIR Fund 35,000 35,000 35,000 - -
Debt Service 64,096 316,030 400,956 323,547 151,243
Total CIP Tax Levies 387,804 278,030 528,956 414,547 251,243
Projected Change in CIP Tax Levy2020-2024 CIP
Financial Impacts
Annual projected total CIP tax levy by component
2020 2021 2022 2023 2024
Equipment Revolving
Fund
739,000 650,000 675,000 700,000 725,000
Revolving Park Equip
Fund
409,000 375,000 418,000 449,000 499,000
Facilities Management
Fund
30,000 80,000 105,000 140,000 165,000
PIR Fund 130,000 165,000 200,000 200,000 200,000
Debt Service 3,561,284 3,877,314 4,368,672 4,683,507 4,832,440
Total CIP Tax Levies 4,869,284 5,147,314 5,766,672 6,172,507 6,421,440
2020-2024 CIP
Tax Levies:
Projected CIP Tax Levy
This includes the following items:
$114k added to 2020 equipment replacement tax levy
$90k added to the Parks tax levy for trail replacement
Debt Projection
25
Debt Projection
26
Debt Projection
27
28
The tax levy and debt
service impacts of the CIP
have been incorporated
into the long-range
financial plan. This will be
discussed further as part of
Workshop Topic B
CITY OF PRIOR LAKE
PROPERTY TAX PROJECTION SUMMARY
2019 2020 2021 2022 2023 2024
2019
Budget
Planning Year Proj Year 1 Proj Year 2 Proj Year 3 Proj Year 4
PRIOR YEAR TAX LEVIES
General Fund 7,779,182 8,146,555 8,886,997 9,603,565 10,044,808 10,622,102
Debt Service Fund 3,370,171 3,497,188 3,561,284 3,877,314 4,278,270 4,601,817
Equip Revolv Fund 550,000 600,000 739,000 650,000 675,000 700,000
Revolv Park Equip Fund 238,184 289,292 409,000 375,000 418,000 449,000
EDA Fund 140,000 150,000 150,000 175,000 176,800 178,600
PIR Fund - 95,000 130,000 165,000 200,000 200,000
Facilities Mgmt Fund - - 30,000 80,000 105,000 140,000
Grand Total 12,077,537 12,778,035 13,906,281 14,925,878 15,897,878 16,891,519
SUMMARY OF CHANGE IN TAX LEVIES
GENERAL FUND 367,373 740,442 716,567 441,243 577,294 467,013
DEBT SERVICE FUNDS
Existing Debt 120,151 56,457 20,251 (23,733) (214,511) (96,115)
Proposed Debt - - 284,349 423,539 527,288 232,233
MV Debt 6,866 7,639 11,431 1,150 10,770 15,125
DEBT SERVICE FUNDS 127,017 64,096 316,030 400,956 323,547 151,243
OTHER FUNDS
Equip Revolv Fund 50,000 139,000 (89,000) 25,000 25,000 25,000
Revolv Park Equip Fund 51,108 119,708 (34,000) 43,000 31,000 50,000
EDA Fund 10,000 - 25,000 1,800 1,800 1,800
PIR Fund 95,000 35,000 35,000 35,000 - -
Facilities Mgmt Fund - 30,000 50,000 25,000 35,000 25,000
OTHER FUNDS 206,108 323,708 (13,000) 129,800 92,800 101,800
TOTAL CHANGE IN TAX LEVIES 700,498 1,128,246 1,019,597 971,999 993,641 720,056
CURRENT YEAR TAX LEVIES
General Fund 8,146,555 8,886,997 9,603,565 10,044,808 10,622,102 11,089,115
Debt Service Fund 3,497,188 3,561,284 3,877,314 4,278,270 4,601,817 4,753,060
Equip Revolv Fund 600,000 739,000 650,000 675,000 700,000 725,000
Revolv Park Equip Fund 289,292 409,000 375,000 418,000 449,000 499,000
EDA Fund 150,000 150,000 175,000 176,800 178,600 180,400
PIR Fund 95,000 130,000 165,000 200,000 200,000 200,000
Facilities Mgmt Fund - 30,000 80,000 105,000 140,000 165,000
Grand Total 12,778,035 13,906,281 14,925,878 15,897,878 16,891,519 17,611,575
CURRENT YEAR TAX LEVIES ANNUAL % CHANGE
General Fund 4.7%9.09%8.06%4.59%5.75%4.40%
Debt Service Fund 3.8%1.83%8.87%10.34%7.56%3.29%
Equip Revolv Fund 9.1%23.17%-12.04%3.85%3.70%3.57%
Revolv Park Equip Fund 21.5%41.38%-8.31%11.47%7.42%11.14%
EDA Fund 7.1%0.00%16.67%1.03%1.02%1.01%
PIR Fund 36.84%26.92%21.21%0.00%0.00%
Facilities Mgmt Fund 166.67%31.25%33.33%17.86%
Grand Total 5.80%8.83%7.33%6.51%6.25%4.26%
Council Considerations:
•Transportation Plan projects
•Proposed utility rate changes
•Financial Impacts
Council Discussion
29
Next steps:
•Update plans based on council direction and
new information
•CIP Public Hearing –August 5, 2019
•Budget Workshop-September 3, 2019
Council Discussion
30
Questions/Discussion