HomeMy WebLinkAbout08 15 2022 2023-2027 Capital Improvement Program2023-2027 CAPITAL IMPROVEMENT PROGRAM
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What is the CIP?
The CIP is the Capital Improvement Program
The CIP is a multi-year planning document. It is a five-year plan the includes estimated project costs and funding sources.
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2023-2027 CIP Schedule
June 6: Financial Planning Work Session
July 18: Capital Plans Review
August 15: Public Presentation and Adopt 2023-2027 CIP
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2023-2027 CIP Schedule
Equipment Replacement Plan
Park Plan
Facilities Management Plan
Pavement Management Plan
Technology Plan
Water Financial Plan
Sanitary Sewer Financial Plan
Water Quality Financial Plan
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FT Fire Staffing Model – CIP Impacts
Incremental increase to the tax levy to prepare for the city fully funding the firefighters in 2026.
This would be done through an annual transfer out of the General Fund.
Funding will be used for capital project funding until needed in 2026 for personnel funding.
City will pay for these capital purchases on a pay go basis, instead of issuing debt.
The phased tax levy increase and the capital project cost it will fund is shown in the table below:
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Equipment Replacement Plan
Reviewed equipment for condition, safety, functionality, and effectiveness of repairs and refurbishing
Updated vehicle costs and inflationary factors
Shifted replacement years whenever possible to smooth the levy impact
The annualized cost of the equipment replacement is about $1.5M. The updated financing plan includes an incremental tax levy increase to accommodate our replacement needs
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Equipment Replacement Plan
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Equipment Replacement Plan
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Park Plan – New Parks
The Park Master Plan final approval is still pending. The purpose of the plan is to look at current parks and proposed changes/updates as well as the City’s future needs and new park
locations.
Parks Master Plan will provide a guide for funding sources and uses, including a potential bonding referendum
The plan includes a phased increase in the tax levy to accommodate our capital maintenance and replacement needs
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Park Plan
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Facilities Management Plan
Plans for major maintenance and replacements
The plan includes a phased increase in the tax levy to accommodate our facility maintenance and replacement needs
Issue Bonds in 2024 and 2026
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Facilities Management Plan
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Transportation Plan Map – 2023-2027
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Pavement Management Plan
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Pavement Management Five-Year Funding Sources
Street Overlay - $7.5M
Franchise Fees - $3.2M
Bonding - $2.5M
Transfer from Water Fund - $1.8M
Transportation Plan - $34.4M
MSA - $1.3M
Bonding - $17.4M
Transfer from Other Funds - $8.9M
Franchise Fees - $3.4M
County - $2.4M
Federal Grant - $580K
Developer Upfront Costs - $390K
Other - $40K
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Technology Plan
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Water Fund Financial Management Plan
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Water Fund Capital Project Summary
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Sewer Fund Financial Management Plan
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Sewer Fund Capital Project Summary
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Stormwater Fund Financial Management Plan
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Increase in stormwater % due to:
Decision in 2021 to add storm sewer replacement costs on reconstruction projects to the stormwater utility fund, previously were part of the general levy and assessment cost
Funding for $950k add in 2024 for regional water quality pond project
11.5% fee increase equates to $11.78 annual increase per REU in 2023
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Stormwater Fund Capital Project Summary
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Combined Impact – All Funds
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Financial Impacts
Annual projected total CIP tax levy by component
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Debt Projection
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Debt is projected to decrease from $33.8M at the end of 2021 to $28.7M at the end of 2027.
Proposed use of General Fund phased levy increase to pay for capital purchases totaling $2.4M on a pay go basis, instead of issuing debt.
Planned new debt in 2026 and 2027 is for two street projects in 2025 (Wilds Pkwy Reclamation and Martindale Area Street projects) and the 2026 bonding for facility work at City Hall
and the Police Station
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Tax Levy and Debt Service Impacts
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Debt service remains constant from 2021-2025 at about $3.6M.
Proposed debt service increases significantly in 2026 and 2027 due two street projects in 2025 (Wilds Pkwy Reclamation and Martindale Area Street projects) and the 2026 bonding for facility
work at City Hall and the Police Station.
Both buildings were built in 2006. The significant facility project costs are replacement of VAV Boxes, Chillers, Air Handlers, and Carpet.
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Debt Projection
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Debt service is the annual principal and interest payments on the city’s debt
Funding sources are how we pay for the annual debt service.
The timing, mix of project types, and pledge of revenue affect the portion of debt service that is tax supported.
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Debt Per Capita Projection
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Future Funding Needs
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Parks Master Plan Funding
Funding shortfall of $500k/year in 10 yr. CIP for ongoing Park and Trail replacement
No funding plan for Sand Point Beach and Lakefront Park major improvements
Strategies for the future funding of park needs will be one of the topics at the Council’s 2023 Strategic Planning work
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Council Action
2023 Budget Next Steps:
Adopt Preliminary Budgets and Tax Levy – September 19, 2022
Requested Council Action:
A motion and second to approve the 2023-2027 Capital Improvement Program resolution.
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