HomeMy WebLinkAbout13.E.1. Capital Improvement Plan (CIP) and Future Tax Levy Update CITY OF SHAKOPEE
Memorandum
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: Capital Improvement Plan (CIP) and Future Tax Levy Update
DATE: October 14, 2010
Introduction & Background
This is a brief review of the current status of the 2011— 2015 CIP and the impact of the decision
not to assess for overlays.
The impact of the overlay decision is that the city pays for the share of the project that would
have been assessed. Plus, because at least 20% of the project is not assessed, bonds cannot be
sold to finance the project and spread the cost (tax levy) out over several years.
Previously, the tax levy for overlays was spread over ten years but recently shifted to five years
to match the shorter assessment period. With a fairly consistent overlay schedule, it was the
intent to transition the levy to a current operating levy instead of a debt service levy over
several years. The decision not to assess forced an immediate change instead of transitioning a
debt service levy over time.
Instead, staff has put together a budget that uses the fund balance in the Capital Improvement
Fund (CIF) to transition to the operating levy for overlays. Attached are the front pages of the
five year CIP. Page 14 is the CIF showing an increasing operating levy starting in 2012 and the
fund having a projected balance in 2015 of about $3 million.
On page 15 is the projected debt service levy based on the CIP. The levies for pay 2011 and
2012 are reduced to draw down the cash balances in the Debt Service Funds. The increasing
levies in 2012 - 2015 amount to about a 2% annual increase in the total levy.
Additionally, projecting ahead for the General Fund operating levy shows a similar picture. If
total expenditures are held to less than a 3% annual increase, there could need to be an annual
levy increase in the 2 to 3% range. Total tax levy increases needed could be 4 to 5% range
annually for the next few years.
In summary, the 2011 budget was fairly easy to balance but it involved some "one time" type
changes that cannot be repeated. Council did not spend much time discussing the 2012 budget
but the 2012 and following years budget may prove more difficult in balancing service costs
versus increasing the tax levy.
1
2011 -2015
Capital Improvement
N Program
City of Shakopee, Minnesota
CITY OF SHAKOPEE, MINNESOTA
2011 -2015 CAPITAL IMPROVEMENT PROGRAM
PROGRAM SUMMARY
Capital improvements are defined as those projects which require the expenditure of public funds for the acquisition, construction or
replacement of the infrastructure necessary for a community. Typical capital improvement projects include streets and highways;
water and sewer facilities; parks, trails and open space, and various types of public buildings. A capital improvement program is a
listing of proposed public projects according to a schedule of priorities over a five -year period. Developing a capital improvement
program provides many significant benefits such as:
• An effective way to plan, budget, and coordinate the operation and capital efforts of city departments.
• A coherent development program that will increase opportunities to obtain funding from outside sources such as the state and
federal government.
• Public support for capital commitments that should help attract private investment.
to o Improved chances to receive favorable bond ratings by giving evidence of effective management.
A capital improvement plan is a list of the projects scheduled for the upcoming fiscal year and subsequent four years. Projects which
are scheduled in the first year of the 5 -year capital improvement plan are included in the annual budget in the appropriate funds such
as the Capital Improvement Fund, various capital projects funds and the enterprise funds.
The Shakopee City Council annually adopts a 5 -year Capital Improvement Plan (CIP). The CIP is prepared by City staff. It is then
reviewed by the Planning Commission for conformance with the goals in the Comprehensive Plan. Then it is submitted to the City
Council for approval. The 5 -year program is utilized by staff for long range planning and budgeting purposes and programming
projects.
The projects have been organized into one of the following five project categories:
A. Municipal Building Projects
B. Parks Projects
C. Streets and Highway Projects
D. Sanitary Sewer Projects
E. Storm -water Drainage Projects
2011 -2015 CAPITAL IMPROVEMENT PROGRAM
FINANCIAL SUMMARY
The City of Shakopee will be faced with financing various capital improvement projects, both large and small, during the foreseeable
future. To assist in planning the projects, consideration must be given to the financial resources available. It is obvious that just as the
projects are various types, such as public buildings, utility projects and park improvement projects, there are a number of ways to
finance the projects. All sources are not necessarily desirable or available in each case; but the most common sources of funding and
those identified in the preparation of this capital improvements program are as follows:
1. General Fund
The General Fund is used to account for revenues and expenditures necessary to carry out the basic functions of City government.
These basic functions include police and fire protection, planning, administration, etc. Appropriations are made from this fund
a ' annually.
2. Special Revenue Fund
Special Revenue Funds are used to account for the proceeds of specific revenue sources designated to finance particular activities
as required by law or administrative regulation.
Established in 1984, the Transit Fund accounts for the operations of the van-pool and dial -a -ride services provided by the City
after opting out of the Metropolitan Transit Commission's service. The Telecommunications Fund accounts for the operations of
the public access /government access channels. Economic Development Authority is the general operating fund and
accounts for the activities of that body.
3. Debt Service Funds
These funds are maintained to account for the accumulation and disbursement of money needed for interest and debt redemption
requirements of the bond issues. Primary revenues sources are property tax, special assessments. Provisions are made within the
City's general property tax levy to provide sufficient money to meet these requirements. Debt Service Funds are not available for
any other use until the related bonds are paid off or fully funded.
4. Capital Proiect Funds
Capital Project Funds are established to account for the construction of major capital facilities. Projects resources are a
combination of several revenue sources such as bond proceeds, inter -fund transfers, intergovernmental revenue, grants, etc. These
funds provide the means for administrators to ensure that designated revenues are appropriately utilized.
Additional funds can come from other governmental agencies such as the Metropolitan Council, Scott County, the State of
cn Minnesota, and the federal government in the form of grants or loans.
Donations from local civic groups have provided a significant amount of park improvements in the City. Several organizations
have annual programs in which they wish to help improve the community's facilities. Park land dedication is another significant
source in this funding category.
5. Enterprise Funds
The Enterprise Funds are maintained to account for the operation of the electric, water, sanitary sewer, and storm drainage. Since
the operation of these systems is primarily financed by user charges and are self - supporting, they are accounted for in a manner
similar to private business.
6. Internal Service Fund
The City has five Internal Service Funds; Equipment, Park Assets, Information Technology, Building, and Employee Benefits.
Five year planning for the Equipment and Info Tech Funds is included with the individual fund budgets. The Building and Park
Asset Funds are part of the CIP.
The Internal Service Funds are used to accumulate funds for the eventual purchase of large pieces of equipment or buildings, the
replacement of park assets, common use hardware and software and the funding of employee compensated absences. The "user"
departments are charged for the use of the items /share of the cost, and these resources will be used to fund future expenditures.
CIP
Following is a projection of financial resources available from on -going fiends including the Building, Park Reserve, Park Asset,
Sanitary Sewer, Surface Water, Capital Improvement and Annual Improvement (primarily special assessment projects).
�, Next is a projection of the debt service tax levy needed to support the projects listed in the CIP.
A B C D E F G H I
1 Type Project Cost Estimate Funding Source 2011 2012 2013 2014 2015
2 MUNI Fire Station 4 Site 300,000 Building 300,000
3 MUNI Construction of Fire Station 2 3,000,000 CP project 3,000,000
4 MUNI Construction of Fire Station 3 3,000,000 Tax Levy 3,000,000
5 1 MUNI Total 3,300,000 - - 3,000,000 -
6 IPARK Park Signage 47,000 Park Reserve 10,000 8,000 9,000 10,000 10,000
M 7 PARK Riverside Bluffs 675,000 Park Reserve 140,000 535,000
8 PARK Greenfield /Park Meadows 675,000 Park Reserve 675,000
9 PARK Memorial Park Ped Bridge 250,000 Donation 250,000
10 PARK Lions Park Shelter #2 15,000 Park Asset 15,000
11 PARK Trail Overlay 110,000 Park Asset 30,000 20,000 20,000 20,000 20,000
12 1 PARK Fence Replacement 75,000 Park Asset 15,000 15,000 15,000 15,000 15,000
N16 13 PARK Tahpah Shelter 20,000 Park Asset 20,000
PARK Youth Building 50,000 Park Asset 50,000
PARK Lions Tennis Court 350,000 Park Asset 350,000
PARK Schleper Field Lights 90,000 Park Asset 90000
PARK Total 885,000 598,000 344,000 395,000 135,000
18 ISEWER Annual Cured -in -place Pipe 540,000 Sewer- B 390,000 150,000
19 SEWER CSAH 16 Trunk Sewer Extension 180,000 Sewer - T 180,000
20 SEWER Trunk Sewer Ext West of CASH 15 170,000 Sewer - T 170,000
21 SEWER Trunk Ext S of Valley View/IV of CR 83 200,000 Sewer - T 200,000
22 SEWER Trunk Ext S of Valley View/W of CR 83 100,000 Assess 100,000
23 SEWER 1st Avenue Sewer Extension 140,000 Assess 140,000
24 SEWER Demo old L16 building 75,000 Sewer - B 75,000
1 25 SEWER Total - 570,000 170,000 300,000 365, 000
26 STOR Annual Erosion Control 150,000 Storm - B 150,000
27 STORM Drainage Control System 100,000 Storm - T 100,000
28 STORM Shenandoah Business Park 185,000 Storm - T 185,000
29 STORM Channel Stabilization - ACC 125,000 Storm - T 125,000
30 STORM PLSL Channel Improvements 85,000 Storm - B 85,000
31 STORM Pollution Prevention Devices 500,000 Grants 500,000
32 STORM Pollution Prevention Devices 500,000 Storm - B 500,000
33 STORM Total 150,000 410,000 - 1,085,000
34 STREET Annual seal coat 1,875,000 General Fund - aid 375,000 375,000 375,000 375,000 375,000
35 STREET Annual seal coat 295,000 General Fund - tax 30,000 40,000 75,000 75,000 75,000
36 STREET Annual seal coat 16,700 escrow 16,700
37 STREET TH 300 Reconstruction 380,000 CIF Assess 380,000
38 STREET TH 300 Reconstruction 250,000 Sewer- B 250,000
39 STREET TH 300 Reconstruction 250,000 SPUC 250,000
40 STREET TH 300 Reconstruction 1,320,000 State Aid - reimburse 1,320,000
41 STREET 2011 Street Reconstruction Program 370,000 SPUC 370,000
42 STREET 2011 Street Reconstruction Program 320,000 Sewer - B 320,000
43 STREET 2011 Street Reconstruction Program 335,000 Assess- Bond 335,000
44 STREET 2011 Street Reconstruction Program 100,000 Storm - B 100,000
45 STREET 2011 Street Reconstruction Program 785,000 Tax Levy - Bond 785,000
46 STREET 2011A Overlay 510,000 ICIF 510,000
10/1412010 8:21 AM
A B C D E F G H I
1 Type Project Cost Estimate Funding Source 2011 2012 2013 2014 2015
47 STREET 20116 Overlay 550,000 CIF 550,000
48 STREET CR 101 17 to Fillmore 260,000 Sewer - B 260,000
49 STREET CR 101 17 to Fillmore 125,000 Storm - B 125,000
50 STREET CR 101 17 to Fillmore 325,000 CIF 325,000
51 STREET CR 69 Improvements 150,000 Sewer - B 150,000
52 STREET CR 69 Improvements 150,000 Storm - B 150,000
53 STREET CR 18 Trail 35,000 CIF 35,000
54 STREET 2012A Overlay 355,000 CIF 355,000
55 ISTREET 2012B Overlay 540,000 CIF 540,000
56 STREET Vierling Drive Overlay 540,000 CIF 540,000
57 STREET Beckrich Overlay 175,000 CIF 175,000
58 STREET Th 101 trail ext. 50,000 CIF 50,000
59 STREET CR 17 Vierling Dr Intersection 1,100,000 Grant - Federal 1,100,000
1 62 STREET CR 17 Vierling Dr Intersection 140,000 Donation - County 140,000
STREET CR 17 Vierling Dr Intersection 460,000 Tax Levy - Bond 460,000
STREET 2013 Overlay 290,000 CIF 290,000
STREET 4th ave Certainteed to CR 83 Reclamation 230,000 CIF 230,000
STREET 4th ave Certainteed to CR 83 Reclamation 90,000 CIF Assess 90,000
STREET CR 17 Expansion 1,100,000 Tax Levy - Bond 1,100,000
66 STREET CR 17 Expansion - County 12200000 11200000
67 STREET CR 17 Expansion 500,000 Storm - B 500,000
CO 68 STREET 3rd Ave Recon 260,000 SPUC 260,000
69 STREET 3rd Ave Recon 240,000 Assess - Bond 240,000
70 STREET 3rd Ave Recon 240,000 Sewer - B 240,000
71 STREET 3rd Ave Recon 50,000 Storm - B 50,000
72 STREET 3rd Ave Recon 560,000 Tax Levy - Bond 560,000
73 STREET Valley View Ext & signal @ CR 17 260,000 Tax Levy - Bond 260,000
74 STREET Valley View Ext & signal @ CR 17 100,000 County 100,000
75 STREET Valley View Ext & signal @ CR 17 640,000 Assess- Bond 640,000
76 STREET 2013 Street Reclamation Hillside 75,000 CIF Assess 75,000
77 STREET 2013 Street Reclamation Hillside 175,000 CIF 175,000
78 STREET 12th Ave Trail 200,000 CIF 200,000
79 STREET 2014 Overlay 300,000 CIF 300,000
80 STREET 2014 Street Reconstruction Program 20,000 SPUC 20,000
81 STREET 2014 Street Reconstruction Program 125,000 Assess- Bond 125,000
82 STREET 2014 Street Reconstruction Program 20,000 Sewer - B 20,000
83 STREET 2014 Street Reconstruction Program 45,000 Storm - B 45,000
84 STREET 2014 Street Reconstruction Program 290,000 Tax Levy - Bond 290,000
85 STREET Independence Drive 1/8 miles S opf W. 80,000 CIF 80,000
86 STREET Independence Drive 1/8 miles S opf W. 230,000 CIF Assess 230,000
87 STREET 2015 Overlay 1,000,000 CIF 1,000,000
88 STREET Overlay Eagle Creek/Roundhouse 790,000 CIF 790,000
89 STREET 2015 Reconstruction 20,000 SPUC 20,000
90 STREET 2015 Reconstruction 710,000 Assess - Bond 710,000
91 STREET 1 2015 Reconstruction 50,000 Sewer - B 50,000
10/14/2010 8:21 AM
A B C D E F G H I
1 Type Project Cost Estimate Funding Source 2011 2012 2013 2014 2015
92 STREET 2015 Reconstruction 100,000 Storm - B 100,000
93 STREET 2015 Reconstruction 270,000 Tax Levy - Bond 270,000
94 STREET Concrete Alleys 210,000 Assess- Bond 210,000
95 STREET Concrete Alleys 210,000 Storm - B 210,000
96 STREET Street Light Replacement 150,000 CIF 150,000
97 -
98 STREET Total 6,636,700 2,075,000 5,560,000 3,160,000 3,960,000
99 Grand Total $ 33,098,700 $ 10,971,700 $ 3,653,000 $ 6,074,000 $ 7,940,000 $ 4,460,000
100
101
102
103
104
105 FUTURE PARK PROJECTS
106 Off -Leash Dog Area $ 24,000 Park Reserve Design and Development
107 20,000 Donations /Contrib Design and Development
108 Lions Park Improvements 64,000 Park Reserve Add hockey rink
109 36,000 Donations /Contrib Add hockey rink
110 Westminster 200,000 Park Reserve Bathroom Facility/Warming House _
111 Southbridge Area Park 1,042,310 Park Reserve MNDOT 75 & Active Park Development
112 Tahpah Park Improvements 98,500 Park Reserve Ball Field
cc 113 200,000 Donations Donations
114 100,000 Grants Grants
115 218,000 Park Reserve Lighting fields 7 & 8
116 Savanna Oaks Park Trail 100,000 Park Reserve Design and Construction
117 Quarry Lake Park 830,350 Park Reserve Cleanup /Design /Construction
118 469,650 Grants Cleanup /Design /Construction
119 340,000 Donations Construction
1201 Huber Park Improvements 500,000 Park Reserve Phase 2 Bank Stabilization
1211 1,900,000 Grants Phase 2 Bank Stabilization
122 150,000 Park Reserve Shelter
123 17th Avenue Sports Complex 230,000 Park Reserve Field Lighting
124 100,000 Donations /Contrib Field Lighting
125 Premier /Horizon Heights Park Development 236,250 Park Reserve Design and Construction
126 Kilarney Hills Park Development 420,000 Park Reserve Design and Construction
127 O'Dowd Lake Park Improvements 396,000 Park Reserve Design and Construction
128 CR 79 Trail to O'Dowd Lake Park 275,000 Park Reserve Design and Construction
129 Prairie Village Park 337,500 Park Reserve Land Acquisition /Construction
130 PUSL Channel Greenway Corridor 157,000 Park Reserve Design and Construction
131 Riverview Park Parking Lot 78,750 Park Reserve Parking Lot Construction
132 IShutrop Park Development 1,250,000 Park Reserve Design and Construction
133 Community Park Sports Complex 1,2Eo0oj Park Reserve Design and Construction
134 $ 10,823,310
10/14/2010 8:21 AM
Building Fund
Projected Fund Levels
2011 -2015 Capital Improvement Program
City of Shakopee, Minnesota
REVENUES: 2010 2011 2012 2013 2014 2015
Rentals $1,178,950 $1,214,319 $1,337,891 $1,391,407 $1,447,063 $1,579,946
Bond Proceeds - Fire 3,000,000
Interest 60,570 76,810 89,710 102,530 119,500 142,040
Total Revenue 1,239,520 1,291,129 1,427,601 1,493,937 4,566,563 1,721,986
EXPENDITURES:
Debt Service - PW Bonds 475,000 465,000 465,000 465,000 465,000 465,000
Construction
Fire station 4 Site (carry over) 300000 300,000
Fire station 2 (capital projects fund) 3000000
Fire station 3 3,000,000
Fire station 4
Maintenance
Energy Items 20,000 10,000
CD Comm Center cooling tower
Comm Center Chillers 95,000
From Next Page 450,000 350,000 200,000 130,000
Total Expenditures 590,000 775,000 915,000 815,000 3,665,000 595,000
Excess (Deficiency) 649,520 516,129 512,601 678,937 901,563 1,126,986
Cash Balance 111 2,422,827 3,072,347 3,588,476 4,101,077 4,780,014 5,681,577
Balance 12131 $ 3,072,347 $ 3,588,476 $ 4,101,077 $ 4,780,014 $ 5,681,577 $ 6,808,562
Accumulated Depreciation $ 7,765,089 $ 8,550,286 $ 9,395,483 $ 10,240,680 $ 11,085,877 $ 11,991,074
Percent Funded 40% 42% 44% 47% 51% 57%
City of Shakopee
Builidng Maintenance Projects
2010 2011 2012 2013 2014 2016 2016 201 2018 2019 2020 2021 2022 2023 2024 2025
City Hall
Roof 250,000
HVAC south 20,000
HVAC north 75,000
Boiler
Lighting 100,000
Elevator upgrade 30,000
Police Station -
Roof 300,000
HVAC 200,000
Boiler 75,000
Lighting 100,000
Fire Station 1
Roof 250,000
HVAC e0,00()
Boiler 75,000
Lighting
Elevator upgrade 40,000
Fire Station
Roof 250,000
HVAC 50,000
Lighting
Engineering Bldg
...t Roof 250,000
�y HVAC 75,000
Lighting
PW Building
Roof 300,000
HVAC
Boiler
Lighting 30,000
Library
Roof - 250,000
HVAC 200,000
Boiler
Lighting
Elevator upgrade 40,000
Community Center
Roof 300,000
Air Handlers
Boiler 100,000
Chiller 95,000
Lighting
Elevator upgrade 50000
Acquatic Center
Roof
HVAC
Boiler
Lighting
Slide
Pool finer
Filter building 75,000
$ 95 $ $ 450,000 $ 350,000 $ 200,000 $ 130,000 $ 325,000 $ 365 $ 730,000 $ 300,000 $ $ 300,000 $ 75,000 $ 215,000 $ 75,000 $
Park Reserve Fund
Projected Fund Levels
2011 -2015 Capital Improvement Program
City of Shakopee, Minnesota
REVENUES: 2010 2011 2012 2013 2014 2015
Park Dedication Fees $ - $ - $ 120,000 $ - $ - $ -
Grants - - - - -
Excel Agreement 440,900
Donations - - 250,000 - -
Interest 4,000 22,000 8,000 8,000
Transfer In 2,700,000
Total Revenue 3,144,900 22,000 128,000 258,000 - -
EXPENDITURES:
Expenditures per List -PARKS 69,500 760,000 608,000 9,000 10,000 10,000
Expenditures per List - GRANTS
N Expenditures per List - DONATIONS 250,000
Loan Repayment 1,580,250
Total Expenditures 1,649,750 760,000 608,000 259,000 10,000 10,000
Excess (Deficiency) 1,495,150 (738,000) (480,000) (1,000) (10,000) (10,000)
Cash Balance January 1* 233,635 1,728,785 990,785 510,785 509,785 499,785
Balance 12/31* $ 1,728,785 $ 990,785 $ 510,785 $ 509,785 $ 499,785 $ 489,785
Park Asset Fund
Projected Fund Levels
2011 -2015 Capital Improvement Program
City of Shakopee, Minnesota
REVENUES: 2011 2012 2013 2014 2015
Park Asset charges $ 171,680 $ 221,680 $ 271,680 $ 321,680 $ 371,680
Interest 9,000 12,210 16,680 21,760 20,730
Total Revenue 180,680 233,890 288,360 343,440 392,410
EXPENDITURES:
Expenditures per List -PARKS 60,000 55,000 85,000 385,000 125,000
Total Expenditures 60,000 55,000 85,000 385,000 125,000
Excess (Deficiency) 120,680 178,890 203,360 (41,560) 267,410
j Cash Balance January 1* 367,650 488,330 667,220 870,580 829,020
w
Balance 12131* $ 488,330 $ 667,220 $ 870,580 $ 829,020 $ 1,096,430
Capital Improvement Fund
Projected Fund Levels
2011 -2015 Capital Improvement Program
City of Shakopee, Minnesota
REVENUES: 2011 2012 2013 2014 2015
Tax Levy $ - $ 100,000 $ 150,000 $ 200,000 $ 250,000
Tax Levy- Bond 325,000 1,100,000
Special Assessments 12,000 50,000 50,000 83,000 129,000
Intergovernmental 1,847,000 690,000 690,000 690,000 690,000
SPUC 250,000
Interest 130,320 110,180 92,430 90,490 99,330
Total Revenue 2,564,320 950,180 982;430 2,163,490 1,168,330
EXPENDITURES:
Expenditures per List CIF
TH 300 Reconstruct 2,200,000
Cr 101 17 to Fillmore 325,000
CR 18 Trail 35,000
CR 101 Trail Ext 50,000
12th Ave Trail 200,000
-� Trunk Sewer S of Valley View 300,000
Independence Dr 310,000
CR 17 Expansion 1,100,000
CR 83 pmt (2009 county project) 300,000
Concrete Alleys 420,000
Street Light Replacement 150,000
Overlay 1,060,000 1,610,000 290,000 300,000 1,790,000
Reclamation 570,000
Total Expenditures 3,620,000 1,660,000 1,060,000 2,010,000 2,660,000
OTHER FINANCING SOURCE (USE)
Transfers In 210,000
Sewer 250,000 200,000
Transfers Out
Total Other Financing Source (Use) 250,000 - - 200,000 210,000
Excess (Deficiency) (805,680) (709,820) (77,570) 353,490 (1,281,670)
Cash Balance January 1 5,212,728 4,407,048 3,697,228 3,619,658 3,973,148
Balance 12/31 $ 4,407,048 $ 3,697,228 $ 3,619,658 $ 3,973,148 $ 2,691,478
Year Of Adopted 2004B Future
Levy Levies GO Fire Levies Total
2010 145,787 120,000 0 265,787
2011 390,214 248,528 100,000 738,742
2012 877,920 246,356 100,000 1,224,276
2013 889,180 253,706 268,000 1,410,886
2014 705,401 249,926 771,000 1,726,327
2015 712,076 245,936 808,000 1,766,012
CA
Debt Tax Levy
2,000,000
1,800,000
1,600,000
1,400,000
1
: per ■Future Levies
1,000,000
800,000 _..__ M 20046 GO Fire
600 p Adopted Levies
400,000
200,000
0
2010 2011 2012 2013 2014 2015