HomeMy WebLinkAbout5.C.3. Building Construction Needs
s.c.3.
CITY OF SHAKOPEE
Memorandum
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
SUBJECT: Building Construction Needs
DATE: August 27, 2003
At the most recent budget workshop when the CIP was discussed, there was a request
from Council to summarize the needs of building construction. The concern was that
there too many buildings anticipated for construction in 2007 and 2008.
The easiest way to financially show the projected impact on upcoming fiscal years is to
look at the projected fund levels sheet for the building fund (attached). As shown,
following completion of the Library and Police station this year, the next major
expenditure will be the expansion of the Public Works building. (That will be discussed
elsewhere on the August 28th agenda). Then, in 2007, Fire Station No.3 (east end of
Shakopee), and preliminary work on a new City Hall (assumed to be located adjacent to
the new Police building) will be started. In 2008, the balance of City Hall would be
constructed, as would Fire Station 1.1, which is anticipated for the westerly Vierling
Drive (Lions Park) site.
Note that the Public Works building expansion (and anticipated acquisition ofthe SPUC
building), both Fire Stations, and the new City Hall would qualify under the new state
law for funding by issuance of general obligation bonds. That assumes that the City
Council is able to justify the increase in taxes.
However, ofthe other major expenditures shown for 2005 - pool bathhouse building for
$660,000, an $11 million Community Center expansion, and Community Center multiuse
facility (to include a second sheet of ice) $2.75 million, are not deemed "essential" under
the state law. Therefore, if bonds were to be issued, those would need to be authorized
by the voters in a referendum.
We will be prepared to discuss this further at the August 28th workshop.
"fv\Q~l\.uW
Mark McNeill
City Administrator
MM:th
CC: Gregg V oxland
City of Shakopee, Minnesota
Building Fund
Projected Fund Levels
2004.2009+ Capital Improvement Program
REVENUES: 2003 2004 2005 2006 2007 2008 ~
Rentals $628,660 $788,280 $908,880 $924,432 $940,000 $940,000 $940,000
Donations 2,750,000
Storm and Sewer contributions 600,000
Interfund Loan
Bond Proceeds - Fire 2,500,000 5,400,000
Bond Proceeds - Park Referendum 11,000,000
Transfers 500,000 500,000 500,000 500,000 500,000 500,000 500,000
Interest 200,000 26,783 28,783 (20,690) 34,896 (12,257) (150,079)
Total Revenue 1,328,660 1,315,063 15,787,663 1,403,742 1,474,896 3,927,743 6,689,921
EXPENDITURES:
Maintenance Type
Fire Station 1 reroof
PW remodel 175,000 150,000
Construction Type
Library 2,651,058
Police Station 4,474,462
New Police Station assessments 15,610 15,050 14,500 14,100 13,700 13,300 12,900
Pool Bathhouse Building 660,000
Comm Center Expansion 11,000,000
Comm Center Multiuse 2,750,000
PW Expansion 1,000,000 2,600,000
New City Hall 540,000 4,860,000
Fire station 1.1 2,500,000
Fire station 3 2,100,000
Fire station 3 Site
Fire station 4 site 100,000
Fire station 4 2,300,000
Fire Training Tower 1,000,000
Total Expenditures 7,316,130 1,265,050 17,024,500 14,100 2,653,700 7,373,300 3,312,900
Excess (Deficiency) (5,987,470) 50,013 (1,236,837) 1,389,642 (1,178,804) (3,445,557) 3,377,021
Cash Balance 1/1 6,657,042 669,572 719,585 (517,252) 872,390 (306,414) (3,751,971 )
Balance 12/31 $669,572 $719,585 ($517,252) $872,390 ($306,414) ($3,751,971) ($374,950)
Interest is calculated at 4% of PY Fund Balance