HomeMy WebLinkAbout13.A.2. Long Term Capital Improvement FinancingTO: Mayor & City Council
Mark McNeill, City Administrator
FROM: Bruce Loney, Public Works Director
Gregg Voxland, Finance Director
SUBJECT: Long Term Capital Financing
DATE: February 15, 2011
INTRODUCTION:
CITY OF SHAKOPEE
Memorandum
This memo is in regard to the discussion on capital financing from the February 1, 2011 meeting.
BACKGROUND:
From the February 1, 2011 discussion on capital financing, staff has reviewed and revised capital
costs based on a discussion and analysis of improvement costs on County road projects. Also
this revised tax levy projection schedule shows keeping the tax levy increase for capital down to
1% per year.
Capital Improvement Fund
Attached is a schedule of County road projects for the next five years and these costs
have been incorporated in the revised CIF schedule. These revisions were made
following the meeting with county officials on costs.
With the changes to the CIF schedule, the fund can support the projects with the addition
of tax levy for revenue sources. Without additional tax levy or revenue source, the CIF
would be out of funds around 2019.
The revised CIF does not include street reconstruction projects as the 2006 Pavement
Report did recommend at some point to decrease or eliminate reconstructions and
concentrate on the overlay "Bubble" from the 1995 -2005 major construction years.
Also included is the $130,000.00 to support the 2011 Reconstruction Project as well as
removal of 3 Avenue reconstruction, concrete alleys and street lighting.
Projected Tax Levy for Capital
One particular item being shown is a levy `buy down" of existing debt with CIF of
$880,000.00. Other options could be used such as 2010 underspend or used or future
underspends. This "buy down" is to keep the existing debt levy at a fairly constant
amount. The debt levy amount is between $748,326 and $925,113 per year and is in
comparison to the City of Prior Lake's debt service levy amount of $1,500,000 per year
for street reconstructions and county road improvements.
The results of these changes in the tax levy projection is that a 1% is obtained for years
2011 -2015. In year 2016 a decrease of -1.1% is seen due to projects like the Fire Station
#1 and other bond improvements being paid off.
Staff can discuss the various projects and how they will be funded and get council direction for
the preparation of the 2012 -2016 CIP and 2012 budget.
RECOMMENDATION:
Staff recommends Council to discuss the revisions and provide any comments or direction on the
tax levy schedule for the 2012 budget and CIP process.
ACTION REQUESTED:
Discuss the revised tax levy projection schedule and provide staff comments and direction for the
2012 budget process.
reg/g Voxland ' : ruce Lon J n' .E.
Finance Director Public W s Director
ENGR/2011- PROJECTS /2011 - COUNCIL/LONG- TERM - CAPITAL - FINANCING
Capital Improvement Fund
Projected Cash Levels
2011 -2015 Capital Improvement Program
City of Shakopee, Minnesota
Sources
Tax Levy - Overlay
Tax Levy
Special Assessments
Special Assess. Reclamation 4th ave
Special Assess. Reclamation Hillside
Intergovernmental
SPUC
Interest
Total Revenue
EXPENDITURES:
Expenditures
2011 Recon (CIF share)
CR 18 Trail
Stagecoach /CR101 signal
CR 69
CR 101 Trail Ext
12th Ave Trail
CR 83 pmt (2009 county project)
Overlay
Reclamation
Total Expenditures
OTHER FINANCING SOURCE (USE)
Transfers In
Sewer
Storm - Overlay
Transfers Out
Levy r 'Buy µ Down" ". .
130,000
35,000
75,000
880,000 1,550,000
1,120, 000
70,000
(394,280)
Total Other Financing Source (Use)
Excess (Deficiency)
Cash Balance January 1
Balance 12/31
2011 2012 2013 2014
$ $ 100,000 $ 150,000 $ 200,000
12,000 12,000 12,000 12,000
18,000
15,000
579,000 730,000 730,000 730,000
119,560 120,030 99,210 88,490
710,560 962,030 991,210 1,063,490
75,000
50,000
200,000
280,000 270,000
570,000
1,675,000 1,050,000 270,000
80,000
20,000
0,001
0.0
20,000
0.00
(324,280) (120,000) (370,000) (170,000)
(733,720)
5,535,000
$ 4,801,280 $
(832,970)
4,801,280
3,968,310 $
(428,790) 623,490
3,968,310 3,539,520
3,539,520 $ 4,163,010
2015
$ 250,000
12,000
18,000
15,000
730,000
104,080
1,129, 080
300,000
1,680,000
1,980,000
70,000
00,000):
(30,000)
(880, 920)
4,163,010
$ 3,282,090 $
2/11/20119:55 AM H: \BUDGET \Budgetll \Cip11 \LT capital finance \Long Term Forcast B
2016 2017
$ 300,000 $ 600,000
12,000 12,000
18,000 18,000
15,000 15,000
730,000 730,000
82,050 75,980
1,157,050 1,450,980
00,000
1nr// 0- -&Sar/Ars
> •
2018
$ 600,000
12,000
18,000
15,000
730,000
76,000
1,451,000
1 X500, 000
2019
$ 650,000
12,000
18,000
15,000
730,000
74,780
1,499, 780
1<
1,400, 000 1,450, 000 1,500, 000 1,550,000
(242,950) 980 (49,000) (50,220)
3,282,090 3,039,140 3,040,120 2,991,120
3,039,140 $ 3,040,120 $ 2,991,120 $ 2,940,900
Capital Improvement Fund
Projected Cash Levels
2011 -2015 Capital Improvement Program
City of Shakopee, Minnesota
Sources
Tax Levy - Overlay
Tax Levy
Special Assessments 12,000
Special Assess. Reclamation 4th ave
Special Assess. Reclamation Hillside
pecial Assess',pverlay 30 ° ... .
Intergovernmental 579,000
SPUC
Interest 119,560
Total Revenue 710,560
EXPENDITURES:
Expenditures
2011 Recon (CIF share)
CR 18 Trail
Stagecoach /CR101 signal
CR 69
CR 101 Trail Ext
12th Ave Trail
CR 83 pmt (2009 county project)
Overlay
Reclamation
Total Expenditures
OTHER FINANCING SOURCE (USE)
Transfers In
Sewer
Storm - Overlay
Transfers Out
Do
Total Other Financing Source (Use)
Excess (Deficiency)
Cash Balance January 1
Balance 12/31
130,000
35,000
75,000
880,000
1,120,000
70,000
(394,280)
(733, 720)
5,535,000
$ 4,801,280 $
2012 2013 2014
100,000 $ 150,000 $ 200,000
12,000 12,000 12,000
18,000
15,000
#10
730,000 730,000 730,000
120,030 98,460 89,290
962,030 1,083,460 1,174,090
75,000
50,000
1,580,000
1,705,000
80,000
200,000
300,000
310,000 300,000 1,710,000
570,000
1,080,000 300,000 2,010,000
20,000
0,000
20,000
0,00
(862,970) (366,540) 704,090
4,801,280 3,938,310 3,571,770
3,938,310 $ 3,571,770 $ 4,275,860
2015
$ 250,000 $
12,000
18,000
15,000
730,000
106,900
1,257,900
70,000
0
(324,280) (120,000) (370,000) (170,000) (30,000)
(782,100)
4,275,860
$ 3,493,760 $
2{11/20119:56 AM H: \BUDGET \Budgetll \Cipll \LT capital finance Long Term Forcast B
2016
300,000 $
12,000 12,000
18,000 18,000
15,000 15,000
22 310;800
730,000 730,000
87,340 87,070
1,389,140 1,772,870
400, 000' ' 1.450.000
(10,860) 322,870
3,493,760 3,482,900
3,482,900 $ 3,805,770
ArAr7I, ij /l
2017 2018 2019
600,000 $ 600,000 $ 600,000
12,000
18,000
15,000
730,000
95,140 102,020
1,774, 940 1,855,020
. 500.000'
0 i
274,940
3,805,770
$ 4,080,710
12,000
18,000
15,000
378000
730,000
1,400,000 1,450, 000 1,500,000 1,550,000
305,020
4,080,710
$ 4,385,730
Revised numbers for the 5 year CIP on county road projects:
Year Project name Tax Levy Storm Sanitary Total
2011 Stagecoach Road & CR 101 signal ($75,000 CIF) $75,000
2011 CR17 & CR 42 Interchange $120,000 $120,000
2011 CR 101 Reconstruction $325,000 $600,000 $275,000 $1,200,000
2012 CR 69 $75,000 $150,000 $150,000 $375,000
2013 CR 17 from St Francis to CR 78 $200,000 $300,000 $500,000
2013 Vierling Drive and CR 17 $460,000 $460,000
2014 CR 17 from CR 78 to CR 42 $100,000 $750,000 $850,000
2014 CR 69 & TH 169 Interchange $410,000 $410,000
Totals $1,160,000 $2,330,000 $425,000 $3,990,000
„�i' nFio7'
G
City of Shakopee
Tax Levy Projection
Improvement bonds
Fire Station #1
Fire Station #2
Levy "buy down"
Existing debt
Increase over 2010
% of 2010 levy
Recon 2011
CR 101
Recon 2013
CR 69 (CIF)
CR 17 Vierling Intersection
CR 42 & 17 Storm
CR 17 Expansion I
CR 17 Expansion II
Valley View /17 Signal
CR 69 /HWY 169 storm
CR 16
Independence Dr.
Future years new projects
Operating Levy
Total Levy
325,000
75000
460,000
120000
200,000
100,000
100,000
410000
??
80,000
CIF Overlays
Total
Increase over prior year
Increase over 2010
% of 2010 levy annual
% of 2010 levy cummulative
2010/11 , 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
$ 137,440 $ 411,260 $ 718,326 $ 901,174 $ 778,904 $ 795,113 $ 387,145
120,000 236,000 230,000 235,000 234,000 230,000 -
400,000 - - - -
(200,000) (390,000) (190,000) (100,000)
657,440 647,260 748,326 746,174 822,904 925,113 387,145
(10,180) 90,886 88,734 165,464 267,673 (270,295)
-0.1% 0.6% 0.6% 1.1% 1.8% -1.8%
$ 657,440 $ 790,260 $ 941,326 $ 1,091,174 $ 1,241,904 $ 1,394,113 $ 1,226,145
14,179,998
14,837,438
43,000
43,000
100,000
132,820
0.9%
0.9%
43,000
151,066
283,886
1.0%
1.9%
43,000
63,000
26,000
13,000
43,000 145,000
50,000 200,000 250,000 .300 000
149,848
433,734
1.0%
2.9%
2/10/201110:08 AM H: \BUDGET \Budgetll \Cip11 \LT capital finance \Long Term Forcast B
43,000 43,000
63,000 63,000
26,000
13,000
13,000
26,000
13,000
13,000
11,000 11,000
?? ??
169,000 169,000
150,730
584,464
1.0%
3.9%
152,209
736,673
1.0%
5.0%
ArrirlitfArr bN
43,000
70,000 Delay 4 years
63,000
26,000
13,000
13,000
11,000
??
239,000
600,000
(167,968)
568,705
-1.1%
3.8%
(880,000)
L ong T Capital F
► Since Feb. 1, 2011
0 Revised Costs of Street Projects based on additional
Information
(Attachment C)
0 Added $130,000 to CIF for 201 1 Recon
0 Removed 3 rd Ave. Recon
Concrete Alley and street lighting from 5 year CIP
r fj
Revised numbers for the 5 year CIP on county road projects;
Year Project name Tax Levy Storm Sanitary Total
2011 Stagecoach Road & CR 101 signal ($75,000 CIF) $75,000
2011 CR17 & CR 42 Interchange $120,000 $120,000
2011 CR 101 Reconstruction $325,000 $600,000 $275,000 $1,200,000
2012 CR 69 $75,000 $150,000 $150,000 $375,000
2013 CR 17 from St Francis to CR 78 $200,000 $300,000 $500,000
2013 Vierling Drive and CR 17 $460,000 $460,000
2014 CR 17 from CR 78 to CR 42 $100,000 $750,000 $850,000
2014 CR 69 & TH 169 Interchange $410,000 $410,000
Totals $1,160,000 $2,330,000 $425,000 $3,990,000
"S ---
0. /204
Te rm its l Fina
Long
► Added additiona street overla projec to
y
2019
► Average of 6 . 5 m of street per year to be overlaid starti n in 2
g
► Overlay Project Cost 201 6 - $1, 400,000
,i;i Juba
Long Te Capital Finan
Attach A
0 Includes ove rlays without assessments to 2019
Inc ludes ta x levy to su CIF funding of overlays
Includes levy "Buy Down" to reduce existing debt
tax levy ($880,
0 Fund balance 12/31 / 19 - $2, 940,800
ir8tl9p
oriogur 0.,
Capital Improvement Fund IQ " ArtrtSS
.
Projected Cash Levels
20114016 Capital Improvement Program
City of Shakopee, Minnesota
Sources 2011 2012 2013 2014 2015 2016 2017 2018 2019
Tax Levy - Overlay $ - $ 100000 $ 150,000 $ 200000 $ 250400 $ 300,000 $ 600,000 $ 600,000 $ 650,000
Tax Levy
Special Assessments 12000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000
Special Assess. Reclamation 4th ave 18,000 18,000 18,000 18,000 18,000 18,000
Special Assess. Reclamation Hillside 15,000 15,000 15,000 15,000 15,000 15,000
Intergovernmental 579.000 730400 730400 730,000 730,000 730,000 730,000 730,000 730,000
SPUC
Interest 110560 120030 99,210 88.490 104,080 82,050 75,980 76,000 74,780
Total Revenue 710560 962,030 991,210 1,063,490 1,129,080 1,157450 1,450,980 1,451,000 1,499,780
,.,
EXPENDITURES:
Expenditures
2011 Recon (CIF sham) 130,000
CR 18 Trail 35,000
StagecoachICR101 signal 75,000
CR 69 75,000
CR 101 Trail Ext 50,000
12th Ave Trail 200,000
CR 83 pmt (2009 county project) 300,000
Overlay 880400 1,550,000 280,000 270,000 1,680,000 1,400000 1A50,000 1,500,000 1,550,000
Reclamation 570,000
Total Expenditures 1,120,000 1,675400 1,050,000 270,000 1,980,000 1,400,000 1,450,000 1300,000 1350,000
OTHER FINANCING SOURCE (USE)
Transfers In
Sewer
Storm - Overlay 70,000 80,000 20,000 20,000 70,000
Transfers Out (394,280)
Levy "Buy Down" (200,000) (390,000) (190,000) (100,000)
Total Other Financing Source (Use) (324,280) (120000) (370000) (170000) (30000)
Excess (Deficiency) (733,720) (832,970) (428,790) 623,490 (880,920 (242,950) 980 (49,000) (50,220)
Cash Balance January 1 5335,000 4,801,280 3,960310 3,530520 4,163,010 3,282,090 3,039140 3,040,120 2,991,120
Balance- 12131 $ 4,801,280 $ 3,968,310 $ 3,539,520 $ 4,163410 $ 3,282490 $ 3439,140 $ 0040120 $ Z991,120 $ 2,940,900
2/11/2011935 AM HABUDGET\Budgetil‘CiplIALT capital financeVong Term Forrest 8
, _ ,
Lo ng r� Capita F
■ Attachment B
0 Includes Overla with Assessments to 2019
0 Includes tax levy to support 70% overlay cost
Includes levy "Buy Down" to reduce existing tax levy
0 ($880,000)
0 Includes 30% asse for revenue source
mm t
r
,:.
, a
.477 eiv
Capital Improvement Fund Ain A ssauxitarly
Projected Cash Levels
•
2011-2015 Capital MI provement Program
City of Shakopee, Minnesota
Sources 2011 2012 2013 21314 2015 2016 2617 20113 2019
Tax Levy - Overlay $ - $ 100,000 $ 150,000 $ 200,000 $ 250,000 $ 300,000 $ 600,000 $ 600,000 $ 600,000
Tax Levy
Special Assessments 12000 12000 12000 12000 12,000 12,000 12,000 12,000 12,000
Special Assess. Reclamation 4th ave 18,000 18,000 18,000 18,000 18,000 18,000
Special Assess. Reclamation Hillside 15,000 15,000 15,000 12000 15,000 15,000
Special Assess. Overlay 30% 93,000 109,800 126,000 226,800 310,800 304,800 378,000
Intergovernmental 579,000 730,000 730,000 730,000 730,000 730,000 730,000 730,000 730,000
SPUC
Interest 119,560 120,030 98,460 83,290 106,900 87,340 87,070 95,140 102,020
Total Revenue 710,560 962,030 1,083,460 1,174,090 1,257,900 1,389,140 1,772870 1 774 4 $40 1,855,020
EXPENDITURES:
Expenditures
2011 Recon (CIF share) 130,000
CR 18 Trail 35,000
Stagecoach/CR101 signal 75,000
CR 69 75,000
CR 101 Trail Ext 60,000
12th Ave Trail 200,000
CR 83 pmt (2009 county project) 302000
Overlay 862000 1,580,000 314,000 300,000 1,710,000 1,400,000 1,450,000 1,500,000 1,552000
Reclamation 570,000
Total Expenditures 1,120,000 1,705,000 1,080,000 300,000 2,010,000 1,400,000 1,450,000 1,500,000 1,550,000
OTHER FINANCING SOURCE (USE)
Transfers. In
Sewer
Storm - Overlay 70,000 80,000 20,000 20,000 70,000
Transfers Out (394,280)
Levy "Buy Down" (200,000) (390,000) (190,000) (100,000)
Total Other Financing Source (Use) (324,280) (120,000) (370,000) (170,000) (30,000) - - -
Excess (Deficiency) (733,720) (862,970) (366,540) 704,090 (782,100) (10,860) 322,870 274,940. 305,020
Cash Balance January 1 5,535,000 4,801,280 3,938,310 3,571,770 4,275,860 3,493,760 3,482,900 3,805,770 4,080,710
Balance 12131 8 4,801,280 $ 2938,310 $ 3,571,770 $ 4,275,860 $ 3,492760 $ 2482,900 $ 2805,770 5 4,082710 $ 4,385,730
2/11/20119:56 AM HABUDGEF\ Budget1.1 \Cip11. \LT capital finance\ Long Term Forrest 8
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Long
Te rm Capt al Financin
► Attachment D - Tax levy projection
Includes exist debt tax levy
Includes levy "Buy Down" o $880, from C to
0 reduce existing debt tax levy
Includes tax levy to support C IF fun of overlay
0 Tax Levy is shown as a 1% increase per year for
0 2012, 2 01 3, 201 5 and a decrease in 2016 as
fire station and other improvement bonds are paid
off.
•
•
/4 b "
City of Shakopee
Tax Levy Projection
2010/11 2011f12 2012(13 2013/14 701 /15 2015/16 2026/17
Improvement bonds $ 137,440 $ 411,260 $ 718,326 $ 901474 $ 778,904 $ 795,113 $ 387,145
Fire Station #1 120,000 236,000 230,000 235,000 234,000 230,000
Fire Station #2 400,000
Levy "buy down" - (200,000) (390,000) (190,000) (100,000) (880,000)
Existing debt 657,440 647,260 748.326 746,174 u2,904 925,113 387,145
Increase over 2010 (10,180) 90,886 88,734 165,464 267,673 (270,295)
% of 2010 levy -0.1% 0.6% 0.6% 1.1% 1.8% -1.8%
Recoil 2011 - ' -
43, 43- - - -
CR 101 325,000 43 000 ,000 ,000 43,000 43,000 43,000
Recon 2013 70,000 Delay 4 years
CR 69 (OF) 75000
CR 17 Vierling Intersection 460,000 63,000 63,000 63,000 63,000
CR 42 & 17 Storm 120000
CR 17 Expansion I 200,000 26,000 26,000 26,000 26,000
CR 17 Expansion II 100,000 13,000 13,000 13,000
Valley View/17 Signal 100,000 13,000 13,000 13,000 13,000
CR 69/HWY 169 storm 410000
at 16 ??
Independence Dr, 80,000 11,000 11,000 11,000
Future years new projects ?? ?? ??
. , ,
- 43,000 43,000 145,000 169,000 169,000 239,000
CIF - Overlays 100,000 150,000 200,000 250,000 300,000 600,000
Total $ 657A40 $ 790,260 $ 941,326 $ 1,091,174 $ 1 241,904 $ 1,394,113 $ 1,226,145
Increase over prior year 132,820 151,066 149,848 150,730 152,209 (167,968)
Increase over 2010 132,820 283,886 433,734 584,464 736,673 568,705
% of 2010 levy annual 0.9% 1.0% 1.0% 1.0% 1.0% -1.1%
% of 2010 levy cummulative 0.9% 1.9% 19% 3.9% 5.0% 3.8%
Operating Levy 14,179,998 ???? ???? ???? ???? ???? ????
Total Levy 14,837,438
2/10/20111008 AM fl: \BUDGET\BudgetlACiplALT capital finance\ Long Term Forcast 13
Lo ng Capital F
■ Attachments A -D are shown for long term
financing.
■ No decision needed tonight as this item is a
2012/2013 budget item decision.
■ Questions?
,,,,