HomeMy WebLinkAbout7. Review of Internal Service Fund Charges CITY OF SHAKOPEE
Memorandum
TO: Mayor & City Council
Mark McNeill, City Administrator
FROM: Bruce Loney, Public Works Director
SUBJECT: Long Term Capital Financing
DATE: February 15, 2011
INTRODUCTION:
This memo is in regard t
T s o g 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 down to 1% per year.
Attached is an e -mail to Gregg Voxland on County road projects for the next five years
and these costs have been incorporated in the revised CIF schedule.
Also included is the $130,000.00 to support the 2011 Reconstruction Project as well as
removal of 3 rd Avenue reconstruction, concrete alleys and street lighting.
li htin
Y g g
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.
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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.
ALTERNATIVES:
1. Discuss the revised tax levy projection schedule and provide staff comments and
direction for the 2012 budget process.
2. Table for more information.
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RECOMMENDATION:
Staff recommends alternative no. 1 to discuss the revisions and provide any comments or
direction on the tax levy schedule for future budget and CIP.
ACTION REQUESTED:
1. Discuss the revised tax levy projection schedule and provide staff comments and
direction for the 2012 budget process.
2. Table for more information.
Bruce Loney, P.E.
Public Works Director
ENGR/20I 1- PROTECTS /2011- COUNCIL20NG- TERM - CAPITAL - FINANCING
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City of Shakopee Street Overlays
No Assessments (Recommended)
2011 2012 2013 2014 2015 Total
Total project cost $880,000 $1,550,000 $280,000 $270,000 $1,680,000 $4,660,000
storm drainage 70,000 80,000 20,000 20,000 70,000 260,000
tax levy - collect following year 100,000 150,000 200,000 250,000 300,000 1,000,000
CIF 710,000 1,320,000 60,000 - 1,310,000 3,400,000
Assessments - - - - - -
Net cash impact (810,000) (1,370,000) (110,000) (50,000) (1,360,000) (3,700,000)
Assess 30% (Funding as it was
done previously) bonding
Total project cost 910,000 1,580,000 310,000 300,000 1,710,000 4,810,000
storm drainage 70,000 80,000 20,000 20,000 70,000 260,000
tax levy - bond proceeds 588,000 1050 000 203,000 196,000 1,148,000 3 185 000
CIF - - - -
Assessments 252,000 450,000 87,000 84,000 492,000 1,365,000
Net cash impact 0 0 0 0 0 -
T Levy evy for bonds 136,000 379,000 425,000 470,000 741,000
Assess 20% no bonds
Total project cost 910,000 1,580,000 310,000 300,000 1,710,000 4,810,000
storm drainage 70,000 80,000 20,000 20,000 70,000 260,000
tax levy - collect following year 100,000 150,000 200,000 250,000 300,000 1,000,000
CIF 2
57 ,000 1,050,000 32,000 (26,000) 1,012,000 2,640,000
Assessments 168,000 300,000 58,000 56,000 328,000 910,000
Net cash impact (840,000) (1,366,400) (46,400) 25,200 (1,273,600) (3,501,200)
Assess 30% no bonds
Total project cost 910,000 1,580,000 310,000 300,000 1,710,000 4,810,000
storm drainage 70,000 80,000 20,000 20,000 70,000 260,000
tax levy - collect following year 100,000 150,000 200,000 250,000 300,000 1,000,000
CIF 488,000 900,000 3,000 (54,000) 848,000 2,185,000
Assessments 252,000 450,000 87,000 84,000 492,000 1,365,000
Net cash impact (840,000) (1,349,600) 400 77,800 (1,215,400) (3,326,800)
CIF tax levy 100,000 150,000 200,000 250,000 300,000 1,000,000
,0 0,000
Debt tax levy 136,000 379,000 425,000 470,000 741,000 2,151,000
Difference = CIF funding
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�iri/MeNr 'A n
Capital Improvement Fund lWriiar Aigtraci/EATS
Projected Cash Levels
2011 -2015 Capital Improvement Program
City of Shakopee, Minnesota
Sources 2011 2012 2013 2014 2015 2016 2017 2018 2019
Tax Levy - Overlay $ - $ 100,000 $ 150,000 $ 200,000 $ 250,000 $ 300,000 $ 600,000 $ 600,000 $ 650,000
Tax Levy
Special Assessments 12,000 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 579,000 730,000 730,000 730,000 730,000 730,000 730,000 730,000 730,000
SPUC
Interest 119,560 120,030 99,210 88,490 104,080 82,050 75,980 76,000 74,780
Total Revenue 710,560 962,030 991,210 1,063,490 1,129,080 1,157,050 1,450,980 1,451,000 1,499,780
EXPENDITURES:
Expenditures
2011 Recon (CIF share) 130,000
CR 18 Trail 35,000
co Stagecoach /CR101 signal 75,000
N CR 69 75,000
CR 101 Trail Ext 50,000
12th Ave Trail 200,000
CR 83 pmt (2009 county project) 300,000
Overlay 880,000 1,550,000 280,000 270,000 1,680,000 1;400,000.;. 1.450 000°„ 1 ;500 000 , 1,^550b00
Reclamation 570,000
Total Expenditures 1,120,000 1,675,000 1,050,000 270,000 1,980,000 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 .,l ^,r .`. .,.. t , . (200 (500).; , , (390 OOQYeT, (190,00) , (100 000):
Total Other Financing Source (Use) (324,280) (120,000) (370,000) (170,000) (30,000) - - - -
Excess (Deficiency) (733,720) (832,970) (428,790) 623,490 (880,920) (242,950) 980 (49,000) (50,220)
Cash Balance January 1 5,535,000 4,801,280 3,968,310 3,539,520 4,163,010 3,282,090 3,039,140 3,040,120 2,991,120
Balance 12131 $ 4,801,280 $ 3,968,310 $ 3,539,520 $ 4,163,010 $ 3,282,090 $ 3,039,140 $ 3,040,120 $ 2,991,120 $ 2,940,900
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