Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
2011 11-21 CCP Joint Work Session with Financial Commission
AGENDA CITY COUNCIL /FINANCIAL COMMISSION JOINT WORK SESSION November 21, 2011 6:30 P.M. Council Chambers City Hall 1. Call to Order 2. Water Fund Utility Rate 3. Capital Building Maintenance Plan Funding 4. Street Reconstruction Funding 5. Next Steps a. November 28, 2011 - Adopt Utility Rates, Pay Plan/Cafeteria Plan b. December 5, 2011 - Budget Hearing c. December 12, 2011 - Adopt Final Tax Levy and Final Budget 6. Adj ournment MEMORANDUM - COUNCIL WORK SESSION DATE: 16 November 2011 TO: Curt Boganey, City Manager , FROM: Daniel Jordet, Director of Fiscal & Support Services SUBJECT: Water Rate for 2012 Recommendation: It is recommended that the City Council consider three possible rate scenarios for the water basic rate for the 2012 fiscal year. Background: At the October 17, 2011 joint work session of the City Council staff was asked to explore the possibility of issuing debt to smooth the progression of rate increases for water services. Three possibilities are presented in the accompanying spreadsheets: 1. If rates are increased at a pace sufficient to provide cash for capital improvements there will have to be large increases in 2012 (8 %) and 2013 through 2018 (9% per year). At that point the water rate would stabilize for two years and then decrease by 12% per year for the next four years. While this would provide sufficient cash it would require ratepayers to pay significantly more for water during the next seven years before receiving reductions in rates. This is illustrated in Attachment "A ". 2. Over the last two planning cycles a program of 4.00% per year increases has been used. This plan may continue if the City were to issue $ 4,000,000 of capital improvement debt in 2015. Use of these dollars in 2015, 2016 and 2017 would allow the water fund to generate enough cash for operations, capital and debt payments by continuing along the annual 4.00% rate increases scenario. The drawback to this funding scenario is the temporary lowering of cash reserves as far as $ 71,620 in 2020. This is illustrated on Attachment "B ". 3. The annual rate increase can be reduce to 3.50% in a scenario where $ 5,000,000 of debt is issued in 2015 for capital projects. It is similar to the previous scenario in that it provides a steady and predictable rise in rates while still providing the cash flow to continue the planned capital improvements. The difference is that the rate increase is 1 /2% lower each years and will require the issuance of and additional $ 1,000,000 in debt. It addresses the low cash reserve balance drawback in the previous scenario by temporarily lowering cash reserves to $ 378, 351 in 2020. This is illustrated in Attachment "C ". . .... ....... ., Alission: Ensuring an attractive, dean, safe cointrusnity that enhances the quality of'lafe andpreserws the public trust MEMORANDUM - COUNCIL WORK SESSION Budget Issues: Under each of the rate scenarios enough revenue is generated to meet the operating and capital needs for 2012 and the foreseeable future. Council Goals: Strategic: 1. We will continue to maintain and upgrade City infrastructure improvements Ongoing: 1. We will ensure the financial stability of the City ,4 fission: Lasurinb an attractive, clean, safe community that enhances the duality of life anclpreserves the puhhe trust CITY OF BROOKLYN CENTER A. WATER FUND CASH FLOW ANALYSIS ALTERNATE SCHEDULE NO DEBT Rate Increase 3.00% 4.00% 4.00% 8.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 0.00% 0.00% (12.00 9 1 .) (12.00 %) (12.009 (12.00 %) 0.00% 0.00% Rate /1,000 gallons 1.29 1.34 1.40 1.51 1.65 1.80 1.96 2.13 2.33 2.54 2.54 2.54 2.23 1.96 1.73 1.52 1.52 1.52 Actual Actual Projected Proposed Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Revenues Water Service $ 1,974,100 $ 1,929,058 $ 2,033,525 $ 2,300,568 $ 2,507,619 $ 2,733,305 $ 2,979,302 $ 3,247,439 $ 3,539,709 $ 3,858,283 $ 3,858,283 $ 3,858,283 $ 3,395,289 $ 2,987,854 $ 2,629,312 $ 2,313,794 $ 2,313,794 $ 2,313, Bond Proceeds $ $ 1,719,422 $ $ - $ - $ - $ - $ $ $ $ $ $ $ $ $ $ Misc. Operating $ 2,596 $ 1,057 $ - $ - $ 3,700 $ 7,400 $ 11,100 $ 14,800 $ 18,500 $ 22,200 $ 25,900 $ 29,600 $ 33,300 $ 37,000 $ 40,700 $ 44,400 $ 48,100 $ 51,800 Misc. Non - operating $ 50,442 $ 34,519 $ 50,878 $ 12,000 $ 79,902 $ 54,556 $ 42,348 $ 31,999 $ 10,950 $ (20,893 ) $ (16,403) $ 13,026 $ 33,758 $ 62,221 $ 91,721 $ 104,956 $ 84,020 $ 32,051 Total Revenues $ 2,027,138 $ 3,684,056 $ 2,084,403 $ 2,312,568 $ 2,591,221 $ 2,795,261 $ 3,032,750 $ 3,294,239 $ 3,569,159 $ 3,859,590 $ 3,867,780 $ 3,900,909 $ 3,462,346 $ 3,087,076 $ 2,761,733 $ 2,463,151 $ 2,445,914 $ 2,397,645 Expenditures Personal Services $ 421,975 $ 485,939 $ 480,776 $ 477,259 $ 491,577 $ 506,324 $ 521,514 $ 537,159 $ 553,274 $ 569,872 $ 586,968 $ 604,577 $ 622,715 $ 641,396 $ 660,638 $ 680,457 $ 700,871 $ 721,897 Supplies $ 161,552 $ 148,599 $ 160,032 $ 175,650 $ 180,920 $ 186,347 $ 191,937 $ 197,696 $ 203,626 $ 209,735 $ 216,027 $ 222,508 $ 229,183 $ 236,059 $ 243,141 $ 250,435 $ 257,948 $ 265,686 Services $ 2,258,839 $ 504,585 $ 635,960 $ 678,023 $ 705,144 $ 733,350 $ 762,684 $ 793,191 $ 824,919 $ 857,915 $ 892,232 $ 927,921 $ 965,038 $ 1,003,640 $ 1,043,785 $ 1,085,537 $ 1,128,958 $ 1,174,116 Depreciation $ 596,180 $ 550,662 $ 567,675 $ 690,558 $ 690,558 $ 707,822 $ 725,517 $ 743,655 $ 762,247 $ 781,303 $ 800,836 $ 820,856 $ 841,378 $ 862,412 $ 883,973 $ 906,072 $ 928,724 $ 951,942 New Interest Debt Service Interest & Fees $ $ 94,701 $ 88,250 $ 63,928 $ 62,185 $ 60,185 $ 57,571 $ 54,575 $ 51,031 $ 46,910 $ 42,347 $ 37,354 $ 31,867 $ 23,903 $ 19,495 $ 12,736 $ 5,634 $ 5,634 Total Expenditures $ 3,438,546 $ 1,784,486 $ 1,932,693 $ 2,085,418 $ 2,130,383 $ 2,194,028 $ 2,259,223 $ 2,326,276 $ 2,395,097 $ 2,465,736 $ 2,538,410 $ 2,613,217 $ 2,690,181 $ 2,767,410 $ 2,851,032 $ 2,935,237 $ 3,022,135 $ 3,119,276 less: Non -Cash Depreciation $ 596,180 $ 550,662 $ 567,675 $ 690,558 $ 690,558 $ 707,822 $ 725,517 $ 743,655 $ 762,247 $ 781,303 $ 800,836 $ 820,856 $ 841,378 $ 862,412 $ 883,973 $ 906,072 $ 928,724 $ 951,942 New Principal plus: Debt Service Principal $ - $ 105,000 $ 101,250 $ 101,250 $ 105,000 $ 105,000 $ 108,750 $ 112,750 $ 116,250 $ 116,250 $ 120,000 $ 123,750 $ 131,250 $ 135,000 $ 138,750 $ 142,500 $ 142,500 plus: Transfers $ - $ 53,262 $ - $ - $ - $ - $ - $ - $ - $ - $ $ $ $ $ $ $ $ plus: Cash Capital Outlay $ 437,423 $ 975,158 $ 1,314,400 $ - $ 1,895,000 $ 1,611,000 $ 1,739,000 $ 2,304,500 $ 2,885,000 $ 1,909,221 $ 1,033,000 $ 1,297,500 $ 541,000 $ 67,500 $ 218,500 $ 993,130 $ 1,942,300 $ 212,000 Total Cash Requirement $ 3,279,789 $ 2,208,982 $ 2,784,418 $ 1,496,110 $ 3,436,075 $ 3,202,206 $ 3,377,706 $ 3,995,871 $ 4,630,600 $ 3,709,904 $ 2,886,825 $ 3,209,861 $ 2,513,553 $ 2,103,748 $ 2,320,559 $ 3,161,045 $ 4,178,211 $ 2,521,834 Beginning Cash Balance $ 2,068,255 $ 1,147,687 $ 2,546,948 $ 1,646,933 $ 2,663,391 $ 1,818,537 $ 1,411,592 $ 1,066,636 $ 365,004 $ (696,437) $ (546,752) $ 434,204 $ 1,125,252 $ 2,074,045 $ 3,057,373 $ 3,498,547 $ 2,800,653 $ 1,068,356 Changes in Assets /Liabilities $ 332,083 $ (75,813) $ - $ - $ - $ - $ - $ - $ - $ - $ $ $ $ $ $ $ $ Cash Received $ 2,027,138 $ 3,684,056 $ 2,084,403 $ 2,312,568 $ 2,591,221 $ 2,795,261 $ 3,032,750 $ 3,294,239 $ 3,569,159 $ 3,859,590 $ 3,867,780 $ 3,900,909 $ 3,462,346 $ 3,087,076 $ 2,761,733 $ 2,463,151 $ 2,445,914 $ 2,397,645 Cash Spent $ (3,279 $ (2 $ (2,784,418) $ (1,496,110 $ (3,436,075) $ (3,202,206) $ (3,377,706) $ (3,995,871) $ (4 630 600) $ (3,709,904) $ (2 886 825) $ (3.209.861) $ (2 $ (2 $ (2,320,559) $ (3,161,045) $(4,17 $ (2 521,834) Ending Cash Balance $ 1,147,687 $ 2,546,948 $ 1,846,933 $ 2,663,391 $ 1,818,537 $ 1,411,592 $ 1,066,636 $ 365,004 $ 696,437 $ 546,752 $ 434,204 $ 1,125,252 $ 2,074,04 $ 3,057,373 $ 3,498,547 $ 2,800,653 $ 1,068,356 $ 944 167 Cash Reserve Target (step) $ 1,000,000 $ 1,200,000 $ 1,200,000 $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 1,400,000 $ 1,400,000 $ 1,400,000 $ 1,400,000 $ 1,400,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 Cash Reserve Target(5 % /yr) $ 1,050,000 $ 1,102,500 $ 1,157,625 $ 1,215,506 $ 1,276,282 $ 1,340,096 $ 1,407,100 $ 1,477,455 $ 1,551,328 $ 1,628,895 $ 1,710,339 $ 1,795,856 $ 1,885,649 $ 1,979,932 $ 2,078,928 $ 2,182,875 $ 2,292,018 $ 2,406,619 CITY OF BROOKLYN CENTER WATER FUND CASH FLOW ANALYSIS ALTERNATE SCHEDULE $ 4,000,000.00 Rate Increase 3.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 0.00% 0.00% 0.00% 0.00% 0.00% Rate /1,000 gallons 1.29 1.34 1.40 1.46 1.51 1.57 1.64 1.70 1.77 1.84 1.92 1.99 2.07 2.07 2.07 2.07 2.07 2.07 Actual Actual Projected Proposed Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Revenues Water Service $ 1,974,100 $ 1,929,058 $ 2,033,525 $ 2,300,568 $ 2,392,591 $ 2,488,294 $ 2,587,826 $ 2,691,339 $ 2,798,993 $ 2,910,952 $ 3,027,391 $ 3,148,486 $ 3,274,426 $ 3,274,426 $ 3,274,426 $ 3,274,426 $ 3,274,426 $ 3,274,426 Bond.Proceeds $ $ 1,719,422 $ - $ - $ - $ - $ 4,000,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ Misc. Operating $ 2,596 $ 1,057 $ - $ - $ 3,700 $ 7,400 $ 11,100 $ 14,800 $ 18,500 $ 22,200 $ 25,900 $ 29,600 $ 33,300 $ 37,000 $ 40,700 $ 44,400 $ 48,100 $ 51,800 Misc. Non- operating $ 50,442 $ 34,519 $ 50,878 $ 12,000 $ 79,902 $ 51,105 $ 31,443 $ 129,023 $ 88,602 $ 32,111 $ 5,283 $ 6,420 $ 2,149 $ 23,069 $ 57,561 $ 87,268 $ 93,371 $ 69,861 Total Revenues $ 2,027,138 $ 3,684,056 $ 2,084,403 $ 2,312,568 $ 2,476,192 $ 2,546,800 $ 6,630,369 $ 2,835,162 $ 2,906,294 $ 2,965,264 $ 3,058,574 $ 3,184,506 $ 3,309,874 $ 3,334,494 $ 3,372,687 $ 3,406,094 $ 3,415,897 $ 3,396,086 Expenditures Personal Services $ 421,975 $ 485,939 $ 480,776 $ 477,259 $ 491,577 $ 506,324 $ 521,514 $ 537,159 $ 553,274 $ 569,872 $ 586,968 $ 604,577 $ 622,715 $ 641,396 $ 660,638 $ 680,457 $ 700,871 $ 721,897 Supplies $ 161,552 $ 148,599 $ 160,032 $ 175,650 $ 180,920 $ 186,347 $ 191,937 $ 197,696 $ 203,626 $ 209,735 $ 216,027 $ 222,508 $ _ 229,183 $ 236,059 $ 243,141 $ 250,435 $ 257,948 $. 265,686 Services $ 2,258,839 $ 504,585 $ 635,960 $ 678,023 $ 705,144 $ 733,350 $ 762,684 $ 793,191 $ 824,919 $ 857,915 $ 892,232 $ 927,921 $ 965,038 $ 1,003,640 $ 1,043,785 $ 1,085,537 $ 1,128,958 $ 1,174,116 Depreciation $ 596,180 $ 550,662 $ 567,675 $ 690,558 $ 690,558 $ 707,822 $ 725,517 $ 743,655 $ 762,247 $ 781,303 $ 800,836 $ 820,856 $ 841,378 $ 862,412 $ 883,973 $ -906,072 $ 928,724 $ 951,942 New Interest $ 180,000 $ 165,375 ? $ 149,625' $ 133,876 $ 117,000 $ 99,000 '$ 81,000 ; $ 61,875 $ 41,625. $ _'21,375 Debt Service Interest & Fees $ $ 94,701 $ 88,250 $ 63,928 $ 62,185 $ 60,185 $ 57,571 $ 54,575 $ 51,031 $ 46,910 $ 42,347 $ 37,354 $ 31,867 $ 23,903 $ 19,495 $ 12,736 $ 5,634 $ 5,634 Total Expenditures $ 3,438,546 $ 1,784,486 $ 1,932,693 $ 2,085,418 $ 2,130,383 $ 2,194,028 $ 2,259,223 $ 2,506,276 $ 2,560,472 $ 2,615,361 $ 2,672,285 $ 2,730,217 $ 2,789,181 $ 2,848,410 $ 2,912,907 $ 2,976,862 $ 3,043,510 $ 3,119,276 less: Non -Cash Depreciation $ 596,180 $ 550,662 $ 567,675 $ 690,558 $ 690,558 $ 707,822 $ 725,517 $ 743,655 $ 762 247 $ 781,303 $ 800 836 $ 820 856 $ 841 $ 662 $ 883,973 $ 906,072 $ 928,724 $ 951,942 New Principal $ $ $ two $ $ $ $ $ $ $ plus: Debt Service Principal $ - $ 105,000 $ 101,250 $ 101,250 $ 105,000 $ 105,000 $ 11 1M M 50 $ 112,750 $ 116,250 $ 116,250 $ 120,000 $ 123,750 $ 131,250 $ 0 13 $ $ 142,500 $ 142,500 plus: Transfers $ - $ 53,262 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ $ $ $ $ $ plus: Cash Capital Outlay $ 437,423 $ 975,158 $ 1,314,400 $ - $ 1,895,000 $ 1,611,000 $ 1,739,000 $ 2,304,500 $ 2,885,000 $ 1,909,221 $ 1,033,000 $ 1,297,500 $ 541,000 $ 67,500 $ 218,500 $ 993,130 $ 1,942,300 $ 212,000 Total Cash Requirement $ 3,279,789 $ 2,208,982 $ 2,784,418 $ 1,495,110 $ 3,436,075 $ 3,202,206 $ 3,377,706 $ 4,175,871 $ 4,795,975 $ 3,859,529 $ 3,020,700 $ 3,326,861 $ 2,612,553 $ 2,184,748 $ 2,382,434 $ 3,202,670 $ 4,199,586' $ 2,521,834 Beginning Cash Balance $ 2,068,255 $ 1,147,687 $ 2,546,948 $ 1,846,933 $ 2,663,391 $ 1,703,508 $ 1,046,102 $ 4,300,765 $ 2,960,057 $ 1,070,376 $ 176,111 $ 213,985 $ 71,630 $ 768,951 $ 1,918,697 $ 2,908,950 $ 3,112,374 $ 2,328,685 Changes in Assets /Liabilities $ 332,083 $ (75,813) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ $ $ $ $ $ Cash Received $ 2,027,138 $ 3,684,056 $ 2,084,403 $ 2,312,568 $ 2,476,192 $ 2,546,800 $ 6,630,369 $ 2,835,162 $ 2,906,294 $ 2,965,264 $ 3,058,574 $ 3,184,506 $ 3,309,874 $ 3,334,494 $ 3,372,687 $ 3,406,094 $ 3,415,897 $ 3,396,086 Cash Spent $ (3.279.789) $ (2,208 $ (2,784 $ ( 1,496,110) $ (3 436 075) $ (3 202 206) $ (3,377.706) $ (4 175 871) $ (4,795,975) $ (3,859,529) $ (3,020,700) $ (3 326 861) $ ( 2 612 553) $ (2 $ (2,382 $ (3,202,670) $ (4,199 586) $ (2,521,834) Ending Cash Balance $ 1 $ 2,546,948 $ 1,846,933 $ 2,663,391 $ 1,703,508 $ 1,048,102 $ 4,300,765 $ 2,960,057 $ 1,070,376 $ 176,111 $ 213,985 $ 71,630 $ 768,951 $ 1,918,697 $ 2,908,950 $ 3,112,374 $ 2,328,685 $ 3,202,937 Cash Reserve Target (step) $ 1,000,000 $ 1,200,000 $ 1,200,000 $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 1,400,000 $ 1,400,000 $ 1,400,000 $ 1,400,000 $ 1,400,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 Cash Reserve Target (5 % /yr) $ 1,050,000 $ 1,102,500 $ 1,157,625 $ 1,215,506 $ 1,276,262 $ 1,340,096 $ 1,407,100 $ 1,477,455 $ 1,551,328 $ 1,628,895 $ 1,710,339 $ 1,795,656 $ 1,885,649 $ 1,979,932 $ 2,078,928 $ 2,182,875' $ 2,292,018 $ 2,406,619 Assumptions: Cash basis All assumptions are predicted on Cash Basis presentation and do not include provisions for changes in balance sheet items Revenues Rate increases would be as indicated each year and based on a stable customer base and stable consumption Expenditures Personnel Costs increase at a rate of 3% per year Supplies increase at a rate of 3% perannum. Services increase at a rate of 4% per year Depreciation increases at a rate of approximately 2.5% per annum. CITY OF BROOKLYN CENTER WATER FUND CASH FLOW ANALYSIS ALTERNATE SCHEDULE $ 5,000,000.00 Rate Increase 3.00% 4.00% 4.00% 3.50% ' 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 0.00% 0.00% 0.00% 0.00% Rate /1,000 gallons 1.29 1.34 1.40 1.45 1.50 1.55 1.61 1.66 1.72 1.78 1.84 1.91 1.97 2.04 2.04 2.04 2.04 2.04 Actual Actual Projected Proposed Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Revenues Water Service $ 1,974,100 $ 1,929,058 $ 2,033,525 $ 2,300,568 $ 2,381,088 $ 2,464,426 $ 2,550,681 $ 2,639,955 $ 2,732,353 $ 2,827,985 $ 2,926,965 $ 3,029,409 $ 3,135,438 $ 3,245,178 $ 3,245,178 $ 3,245,178 $ 3,245,178 $ 3,245,178 Bond Proceeds $ $ 1,719,422 $ $ $ $ - $ 5,000,000 $ - $ - $ - $ - $ - $ - $ - $ $ $ $ Misc. Operating $ 2,596 $ 1,057 $ - $ $ 3,700 $ 7,400 $ 11,100 $ 14,800 $ 18,500 $ 22,200 $ 25,900 $ 29,600 $ 33,300 $ 37,000 $ 40,700 $ 44,400 $ 48,100 $ 51,800 Misc. Non - operating $ 50,442 $ 34,519 $ 50,878 $ 12,000 $ 79,902 $ 50,760 $ 30,372 $ 156,805 $ 111,196 $ 51,929 $ 22,059 $ 19,673 $ 11,351 $ 27,600 $ 60,710 $ 89,128 $ 94,038 $ 69,468 Total Revenues $ 2,027,138 $ 3,684,056 $ 2,084,403 $ 2,312,568 $ 2,464,690 $ 2,522,586 $ 7,592,152 $ 2,811,560 $ 2,662,049 $ 2,902,115 $ 2,974,924 $ 3,078,682 $ 3,180,089 $ 3,309,779 $ 3,346,588 $ 3,378,707 $ 3,387,317 $ 3,366,446 Expenditures Personal Services $ 421,975 $ 485,939 $ 480,776 $ 477,259 $ 491,577 $ 506,324 $ 521,514 $ 537,159 $ 553,274 $ 569,872 $ 586,968 $ 604,577 $ 622,715 $ 641,396 $ 660,638 $ 680,457 $ 700,871 $ 721,897 Supplies $ 161,552 $ 148,599 $ 160,032 $ 175,650 $ 180,920 $ 186,347 $ 191,937 $ 197,696 $ 203,626 $ 209,735 $ 216,027 $ 222,508 $ 229,183 $ 236,059 $ 243,141 $ 250,435 $ 257,948 $ _ 265,686 Services $ 2,258,839 $ 504,585 $ 635,960 $ 678,023 $ 705,144 $ 733,350 $ 762,684 $ 793,191 $ 824,919 $ 857,915 $ 892,232 $ 927,921 $ 965,038 $ 1,003,640 $ 1,043,785 $ 1,085,537 $ 1,128,958 $ 1,174,116 Depreciation $ 596,180 $ 550,662 $ 567,675 $ 690,558 $ 690,558 $ 707,822 $ 725,517 $ 743,655 $ 762,247 $ 781,303 $ 800,836 $ 820,856 $ 841,376 $ 862,412. $ 883,973 $ 906,072 $ 928,724 $ 951,942 New Interest $ 336,000 $ 207,000 $ 187,875 $ 167,625 $ 146,250 $ 124,875 $ 102,375 $ 78,750 '$ 54,000 '$ 28,125 Debt Service Interest & Fees $ $ 94,701 $ 88,250 $ 63,928 $ 62,185 $ 60,185 $ 57,571 $ 54,575 $ 51,031 $ 46,910 $ 42,347 $ 37,354 $ 31,867 $ 23,903 $ 19,495 $ 12,736 $ 5,634 $ 5,634 Total Expenditures $ 3,438,546 $ 1,784,486 $ 1,932,693 $ 2,085,418 $ 2,130,383 $ 2,194,028 $ 2,259,223 $ 2,662,276 $ 2,602,097 $ 2,653,611 $ 2,706,035 $ 2,759,467 $ 2,815,056 $ 2,869,785 $ 2,929,782 $ 2,989,237 $ 3,050,260 $ 3,119,276 less: Non -Cash Depreciation $ 596,180 $ 550,662 $ 567,675 $ 690,558 $ 690,558 $ 707,822 $ 725,517 $ 74 $ 762,247 _ $ 78 1,303 $ 80 0,836 $ 820$ 841,37 $ d 862,412 $ 883,973 $ 906,07 $ 928,724 $ 951,942 56 New Principal $ $ �$ $ 1 6,250 $ $ $ $ �$ " $ plus: Debt Service Principal $ - $ 105,000 $ 101,250 $ 101,250 $ 105,000 $ 105,000 $ 8,750 $ 112,750 $ 116, O $ $ 12 ,000 $ 1 3,750 $ 131,250 $ 135,000 $ 138,750 $ 14 ,500 $ 142,500 plus: Transfers - $ 53,262 $ $ - $ - $ $ $ $ $ $ $ $ $ $ $ $ $ plus: Cash Capital Outlay $ 437,423 $ 975,158 $ 1,314,400 $ - $ 1,895,000 $ 1,611,000 $ 1,739,000 $ 2,304,500 $ 2,885,000 $ 1,909,221 $ 1,033,000 $ 1,297,500 $ 541,000 $ 67,500 $ 216,500 $ 993,130 $ 1,942,300 $ 212,000 Total Cash Requirement $ 3,279,789 $ 2,208,982 $ 2,784,418 $ 1,496,110 $ 3,436,075 $ 3,202,206 $ 3,377,706 $ 4,331,871 $ 4,837,600 $ 3,897,779 $ 3,054,450 $ 3,356,111 $ 2,638,428 $ 2,206,123 $ 2,399,309 $ 3,215,045 $ 4,206,336 $ 2,521,834 Beginning Cash Balance $ 2,068,255 $ 1,147,687 $ 2,546,948 $ 1,846,933 $ 2,663,391 $ 1,692,005 $ 1,012,386 $ 5,226,832 $ 3,706,521 $ 1,730,970 $ 735,305 $ 655,780 $ 378,351 $ 920,011 $ 2,023,667 $ 2,970,946 $ 3,134,608 $ 2,315,589 Changes in Assets /Liabilities $ 332,083 $ (75,813) $ - $ - $ - $ - $ - $ - $ - $ - $ $ $ $ $ $ $ $ Cash Received $ 2,027,138 $ 3,684,056 $ 2,084,403 $ 2,312,568 $ 2,464,690 $ 2,522,586 $ 7,592,152 $ 2,811,560 $ 2,862,049 $ 2,902,115 $ 2,974,924 $ 3,078,682 $ 3,180,089 $ 3,309,779 $ 3,346,588 $ 3,378,707 $ 3,387,317 $ 3,366,446 Cash Spent $ (3 279 789) $ (2 $ (2 $ (1,496 $ (3 $ (3,202,206) $ (3,377 $ (4 $ (4,837 $ (3 9) $ (3 0 54 450) $ (3 $ (2,638 $ (2,206 $ (2 $ (3,215,045) $ (4,206,336) $(2,521,634) Ending Cash Balance $ 1,147,687 $ 2,546,948 $ 1,646,933 $ 2,663,391 $ 1,692,005 $ 1,012,386 $ 5,226,832 $ 3,705,521 $ 1,730,970 $ 735,305 $ 655,780 $ 378,351 $ 920,011 $ 2,023,667 $ 2,970,946 $ 3,134 608 $ 2 315 589 $ 3 160 201 Cash Reserve Target (step) $ 1,000,000 $ 1,200,000 $ 1,200,000 $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 1,400,000 $ 1,400,000 $ 1,400,000 $ 1,400,000 $ 1,400,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 Cash Reserve Target (5 % /yr) $ 1,050,000 $ 1,102,500 $ 1,157,625 $ 1,215,506 $ 1,276,282 $ 1,340,096 $ 1,407,100 $ 1,477,455 $ 1,551,328 $ 1,628,895 $ 1,710,339 $ 1,795,856 $ 1,885,649 $ 1,979,932 $ 2,078,928 $ 2,182,875 $ 2,292,018 $ 2,406,619 Assumptions: Cash basis All assumptions are predicted on Cash Basis presentation and do not include provisions for changes in balance sheet items Revenues Rate increases would be as indicated each year and based on a stable customer base and stable consumption Expenditures Personnel Costs increase at a rate of 3% per year Supplies increase at a rate of 3% perannum. Services increase at a rate of 4% per year Depreciation increases at a rate of approximately 2.5% per annum. MEMORANDUM - COUNCIL WORK SESSION DATE: November 16, 2011 TO: Curt Boganey, City Manager FROM: Steve Lillehaug, Director of Public Works /City Engineer S Dan Jordet, Director of Fiscal & Support Services SUBJECT: 2012 Capital Maintenance Building Plan Recommendation: It is recommended that the City Council consider the information pertaining to the Capital Building Maintenance Plan relative to the 2012 -2026 Capital Improvement Plan. Background: A draft Capital Improvement Program was presented to the City Council throughout the budgeting process that has included Capital Building Maintenance Program (CBMP) projects with funding "to be determined ". The proposed 2012 -2026 plan includes a 2012 project with an estimated cost of $1,634,000, most notably including improvements to the Community Center (see attached overview). The Community Center project includes the replacement of the west wall /windows ($522,775), roof and HVAC equipment ($900,720). Additional 2012 improvements include the replacement of the upper City Hall windows ($117,900) and other miscellaneous improvements in multiple buildings throughout the City ($94,006). These improvements are mostly identified within and are part of the City's 18 -yr Capital Maintenance Planning for Municipal Public Buildings Report prepared in 2007. This report provided an overall evaluation of the City's public buildings, identified and prioritized needed building maintenance improvements, and provided a yearly plan with project costs. The City proceeded under this plan and has completed three projects since implementation in 2008, 2009 and 2010, with the significant source of funding designated from the BC Liquor Fund. In 2011 the project was postponed due to lack of funding. Currently, a funding source has not been designated for future year projects. In an effort to continue with viable CBMP projects as planned in the CIP, it is important to identify a reliable funding source(s) due to the significance and costs of these projects. Budget Issues: Funding for the CBMP was not identified as part of the original plan assembly and adoption. Therefore, funding for each project undertaken has been incorporated into operating budgets when possible (i.e. when project costs are in the range of $1,000 to $15,000) or funded from a one -time identifiable source of reserves, such as reserves in the BC Liquor Fund. The proposed refurbishing of the Community Center roof, HVAC, windows and west wall exterior place a larger demand on finances than any other project thus far. The first reaction of staff has been to review the cash reserves in all City funds to determine whether a combination of reserves may be assembled to undertake this project with cash. The funds that have some amount of cash available include the BC Liquor fund, the Capital Emergency Reserve fund, the �- ;.rnr r °!far cratlr;r •{riff. _ °,«!;;z` MEMORANDUM - COUNCIL WORK SESSION Storm Sewer Utility fund and the General Fund. While the BC Liquor fund has contributed significantly to the projects completed so far, its resources have been in demand for completion of a number of capital projects and transfers to the Capital Improvements Fund. The Capital Emergency Reserve is required by Council Policy to carry a minimum of $1,000,000. It currently carries $1,450.359 and some of that funding could be made available for CBMP projects. While the Storm Sewer Utility fund is in good cash position now and for the foreseeable future, its source of funding is different from other sources that have been used. It is, however, legally permitted for the Council to authorize its use. The General Fund dollars would have to be considered as uses of existing fund balance. Up until now, that fund balance has been maintained at 50% to 52% for cash flow purposes. If some of that money were to be applied to accomplishing the CBMP, a change in General Fund reserve policy would be required. Debt may also be a method for funding this particular project. Some of the funds remaining after use of the Police Building Debt Levy could be applied to bonds sold for this purpose if there were no levy limits for 2013 and beyond. Given the nature of the expenditure, however, it may still require a referendum approving the issuance of such debt. Staff is consulting with Bond Counsel to determine the appropriate procedures if debt is to be used to fund this CBMP project. Council Goals: Strategic: 5. We will continue to maintain and upgrade City infrastructure improvements Ongoing: 1. We will provide streamlined, cost effective, quality services with limited resources Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust Capital Maintenance Building Plan, 2012 -2013 CIP overview November 9, 2011 2012 -2013 CBMP Improvement Overview The following outlines several key components and groupings of planned capital building maintenance improvement projects, their relationship to the Retired Engineers Technical Assistance Program (RETAP) Energy Assessment, the Capital Building Maintenance Plan (CMBP) and the Capital Improvement Budget (CIP). The analysis and potential Annual Energy Savings costs are estimated by RETAP based on Department of Energy benchmarks for buildings with similar use, as compared to actual data for building structure, equipment and utility billing rates. Improvement Cost Annual Energy Savings (RETAP study estimates) 1. Community Center West Wall Replacement replace west wall with Block Wainscot and $133,400 $2,676 Synthetic Plaster system (2011 CMBP) replace pool level doors (2011 CMBP) $92,650 $23,040 replace second level ribbon windows (2011 $133,125 $18,637 CMBP) replace interior exercise area windows $58,600 $5,049 (identified in RETAP assessment) Subtotal $417,775 25% Administration and Contingency $105,000 Subtotal $522,775 $49,402 2. Community Center Roof and HVAC Replacement replace pool area HVAC system (eliminates $165,000 $8,300 center and south roof penthouses and associated repairs deferred from 2008 CMPB) replace AC units 1 & 2 with single roof unit $135,000 incl above (2012 CMBP), eliminates north roof penthouse and air compressor for pneumatic controls scheduled in the 2011 replacement replace roofing system with 60 mil TPO Fully- $420,720 $2,700 Adhered, color white — "green" technology (2013 CMBP) Subtotal $720,720 25% Administration and Contingency $180,000 Subtotal $900,720 $11,000 3. City Hall Window Replacement (not in current CMBP) replace ribbon windows (identified in RETAP $93,900 $6,700 assessment) 25% Administration and Contingency $ 24,000 Subtotal $117,900 $6,700 Total Improvement (1, 2 and 3) Cost Annual Energy Savings Total $1,541,395 $67,102 G: \Municipal Buildings \CMBP Projects by Year \2011 CMBP Project\Design \111109_2012 -13 CBMP Improvement Overview.docx Capital Maintenance Building Plan, 2012 -2013 CIP overview November 9, 2011 CMBP — Non Community Center Major Improvements Year Location Improvement Cost 2012 City Hall Upper & lower level carpet replacement 42,118 East Fire Exterior repair & painting 22,767 Centerbrook clubhouse Carpet replacement 5,686 Police station Hydronic circulating pump 2,553 Centennial gazebo Re- staining 1,882 Subtotal $75,006 25% Admin /Contingency $19,000 Total $94,006 Year Location Improvement Cost 2013 City Hall Switch gear testing /maintenance 5,360 Generator /switch gear replacement 45,828 Exterior lighting fixture replacement 5,025 °Public Works Switch gear testing /maintenance 5,360 Well No. 4 Wall fan replacement 8,040 Well Nos. 7 & 8 Test switch gear 3,216 Subtotal $72,826 25% Admin /Contingency $18,000 Total $90,826 G: \Municipal Buildings \CMBP Projects by Year \2011 CMBP Project \Design \111109_2012 -13 CBMP Improvement Overview.docx MEMORANDUM - COUNCIL WORK SESSION DATE: 16 November 2011 TO: Curt Boganey, City Manager FROM: Daniel Jordet, Director of Fiscal & Support Services SUBJECT: Street Reconstruction Fund Beyond 2012 Recommendation: It is recommended that the City Council consider issuing tax supported improvement debt to continue the street reconstruction program beginning in 2014. Background: Following discussions at the August 15, 2011 joint work session regarding funding the portion of street reconstruction projects paid for by the Street Reconstruction Fund. Two possibilities present themselves at this time. One is to postpone or stretch out the schedule on the street reconstruction projects so that sufficient cash can be accumulated in the Street Reconstruction Fund from the franchise fees imposed on Xcel Energy and CenterPoint Energy. Both franchise agreements have limitations on increases in franchise fees that would require us to wait for the accumulation of adequate cash rather than raising the franchise fees to generate the cash sooner. The first round of street reconstruction projects covering the entire City was scheduled to be completed in 2021. If projects were rescheduled and pushed back to wait for adequate accumulation of cash the program would not complete its first round of reconstructions until 2026, an additional five years. These streets would continue to deteriorate while waiting for their newly scheduled reconstructions and likely raise maintenance costs. The other scenario is to issue improvement bonds which would be paid by tax levy. The tax levy would replace a portion of the current levy for the Police Station/Fire Station construction projects. Between the two projected bond issues ($ 2,050,000 in 2013 and $ 1,750,000 in 2016) debt service levies would begin with taxes payable for 2014 in the amount of $ 291,500 and rise to $ 515,175 in 2017 with levies falling from that point until the final bond payments in 2026. Budget Issues: Under each of the financing scenarios enough revenue is generated to meet the capital needs for the foreseeable future. Council Goals: Strategic: 1. We will continue to maintain and upgrade City infrastructure improvements Ongoing: 1. We will ensure the financial stability of the City .41ission: Ensuring an attrcacflvie, clean, safe community that enhances the quality of fife andpreserves the public, trust A. X City of Brooklyn center Street Reconstruction Fund Cash Flows Analysis Actual Estimated Proposed Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Revenues _ Fund Transfer $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Franchise Fees $ 647,796 $ 680,000 $ 680,000 $ 700,000 $ 700,000 $ 700,000 $ 720,000 $ 720,000 $ 720,000 $ 745,000 $ 745,000 $ 745,000 $ 765,000 $ 765,000 $ 765,000 $ 788,000 Debt Service Levy $ - $ - $ - $ - $ 291,500 $ 284,350 $ 277,200 $ 515,175 $ 502,013 $ 488,850 $ 475,688 $ 462,525 $ 449,363 $ 436,200 $ 203,037 $ 197,025 Bond Proceeds (net) $ - $ - $ - $ 2,050,000 $ - $ - $ 1,750,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - Misc.Operating $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Misc. Non - operating $ 4,262 $ 3,637 $ 2,000 $ $ $ $ $ $ $ $ $ $ $ $ $ Total Revenues $ 652,058 $ 683,637 $ 682,000 $ 2,750,000 $ 991,500 $ 984,350 $ 2,747,200 $ 1,235,175 $ 1,222,013 $ 1,233,850 $ 1,220,688 $ 1,207,525 $ 1,214,363 $ 1,201,200 $ 968,037 $ 985,025 Expenditures Personal Services $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Supplies $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Services $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Depreciation $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Bond Principal $ - $ - $ - $ - $ 220,000 $ 220,000 $ 220,000 $ 405,000. $ 405,000 $ 405,000 $ 405,000 $ 405,000 $ 405,000 $ 405,000 $ 185,000 $ 185,000 Debt Service $ $ $ $ $ 71,500 $ 64,350 $ 57,200 $ 110,175 $ 97,013 $ 83,850 $ 70,688 $ 57,525 $ 44,363 $ 31,200 $ 18,038 $ 12,025 Total Expenditures $ - $ - $ - $ - $ 291,500 $ 284,350 $ 277,200 $ 515,175 $ 502,013 $ 488,850 $ 475,688 $ 462,525 $ 449,363 $ 436,200 $ 203,038 $ 197,025 Capital Outlay $ 1,202,000 $ 2,150,011 $ $ 1,025,000 $ 1,764,000 $ 1,413,000 $ 1,099,000 $ 1,377,000 $ 1,447,000 $ 1,025,000 $ 950,000 $ 165,000 $ 215,000 $ 731,200 $ 844,517 $ 884,000 Total Cash Requirement $ 1,202,000 $ 2,150,011 $ $ 1,025,000 $ 2,055,500 $ 1,697,350 $ 1,376,200 $ 1,892,175 $ 1,949,013 $ 1,513,850 $ 1,425,688 $ 627,525 $ 664,363 $ 1,167,400 $ 1,047,555 $ 1,081,025 Beginning Cash Balance $ 1,780,309 $ 998,752 $ (467,622) $ 214,378 $ 1,939,378 $ 875,378 $ 162,378 $ 1,533,378 $ 876,378 $- 149,378 $ (130,622) $ (335,622) $ 244,378 $ 794,378 $ 828,178 $ 748,660 Changes in Assets /Liabilities $ (231,615) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Revenues' $ 652,058 $ 683,637 $ 682,000 $ 2,750,000 $ 991,500 $ 984,350 $ 2,747,200 $ 1,235,175 $ 1,222,013 $ 1,233,850 $ 1,220,688 $ 1,207,525 $ 1,214,363 $ 1,201,200 $ 968,037 $ 985,025 Expenditures $(1,202,000) $(2,150,011) $ - $(1,025,000) $(2,055,500) $(1,697,350) $(1,376,200) $(1,892,175) $(1,949,013) $(1,513,850) $(1,425,688) $ (627,525) $ (664,363) $(1,167,400) $(1,047,555) $(1,081,025) Depreciation Add -Back $ $ $ $ $ $ $ $ $ - $ - $ - $ - $ - $ - $ - $ - Ending Cash Balance $ 998,752 $ (467,622) $ 214,378 $ 1,939 378 $ 875,378 $ 162,378 $ 1,533,378 $ 876,378 $ 149,378 $ (130,622) $ (335,622) $ 244,378 $ 794,378 $ 828,178 $ 748,660 $ 652,660 Bond Sale $ 2,200,000 $ 1,850,000 Assumptions: Cash basis All assumptions are predicted on Cash Basis presentation. Revenues Year 2010 and forward are predicted on a 3% increase in fees once every three years. Expenditures Capital outlay is from the 2012 CIP 0 4V�QA<, ekJD(- X City of Brooklyn center Street Reconstruction Fund Cash Flows Analysis V Actual Estimated Proposed Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Revenues Fund Transfer $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Franchise Fees $ 647,796 $ 680,000 $ 680,000 $ 700,000 $ 700,000 $ 700,000 $ 720,000 $ 720,000 $ 720,000 $ 745,000 $ 745,000 $ 745,000 $ 765,000 $ 765,000 $ 765,000 $ 788,000 $ 788,000 $ 788,000 Debt Service Levy $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Bond Proceeds (net) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Misc. OperatMg $ $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ Misc. Non- operating $ 4,262 $ 3,637 $ 2,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Total Revenues $ 652,058 $ 683,637 $ 682,000 $ 700,000 $ 700,000 $ 700,000 $ 720,000 $ 720,000 $ 720,000 $ 745,000 $ 745,000 $ 745,000 $ 765,000 $ 765,000 $ 765,000 $ 788,000 $ 788,000 $ 788,000 Expenditures Personal Services $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ - $ - $ - Supplies $ - $ $ $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ $ Services $ - $ - $ - $ $ $ $ - $ - $ - $ $ - $ $ - $ - $ - $ $ $ Depreciation $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Bond Principal $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ $ - $ $ - $ - $ $ $ Debt Service $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Total Expenditures $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Capital Outlay $ 1,202,000 $ 2 $ $ 1,025000 $ 370,000 $ 1,394000 $ 50,000 $ 1 $ $ 1,099,000 $ $ 1 $ 165,000 $ 1,447,000 $ $ 950,000 $ 1,025,000 $ Total Cash Requirement $ 1,202,000 $ 2,150,011 $ $ 1,025,000 $ 370,000 $ 1,394,000 $ 50,000 $ 1,363 000 $ $ 1 $ $ 1,377,000 $ 165,000 $ 1,447,000 $ - $ 950,000 $ 1,025,000 $ - Beginning Cash Balance $ 1,780,309 $ 998,752 $ (467,622) $ 214,378 $ (110,622) $ 219,378 $ (474,622) $ 195,378 $ (447,622) $ 272,378 $ (81,622) $ 663,378 $ 31,378 $ 631,378 $ (50,622) $ 714,378 $ 552,378 $ 315,378 Changes in Assets /Liabilities $ (231,615) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Revenues' $ 652,058 $ 683,637 $ 682,000 $ 700,000 $ 700,000 $ 700,000 $ 720,000 $ 720,000 $ 720,000 $ 745,000 $ 745,000 $ 745,000 $ 765,000 $ 765,000 $ 765,000 $ 788,000 $ 788,000 $ 788,000 Expenditures $(1,202,000) $(2,150,011) $ - $(1,025,000) $ (370,000) $(1,394,000) $ (50,000) $(1,363,000) $ - $(1,099,000) $ - $(1,377,000) $ (165,000) $(1,447,000) $ - $ (950,000) $(1,025,000) $ - Depreciation Add -Back $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ - $ - $ - $ Ending Cash Balance $ 998,752 $ (467,622) $ 214,378 $ (110,622) $ 219,378 $ (474,622) $ 195,378 $ (447,622) $ 272,378 $ (81,622) $ 663,378 $ 31,378 $ 631,378 $ (50,622) $ 714,378 $ 552,378 $ 315,378 $ 1,103,378 Bond Sale Assumptions: Cash basis All assumptions are predicted on Cash Basis presentation. Revenues Year 2010 and forward are predicted on a 3% increase in fees once every three years. Expenditures Capital outlay is from the 2012 CIP 2013 2016 $ 2,200,000 $ 1,850,000 3.25% 3.25% 10 years 10 years Total Levy Interest Only 2014 220,000.00 - 71,500.00 - 291,500.00 71,500.00 2015 220 000.00 - 64 350.00 - 284 350.00 64 350.00 2016 220,000.00 - 57,200.00 - 277,200.00 57,200.00 2017 220,000.00 185,000.00 50,050.00 60,125.00 515,175.00 110,175.00 2018 220,000.00 185,000.00 42,900.00 54,112.50 502,012.50 97,012.50 2019 220,000.00 185,000.00 35,750.00 48,100.00 488,850.00 83,850.00 2020 220,000.00 185,000.00 28,600.00 42,087.50 475,687.50 70,687.50 2021 220,000.00 185,000.00 21,450.00 36,075.00 462,525.00 57,525.00 2020 220,000.00 185,000.00 14,300.00 30,062.50 449,362.50 44,362.50 2023 220,000.00 185,000.00 7,150.00 24,050.00 436,200.00 31,200.00 2024 - 185,000.00 - 18,037.50 203,037.50 18,037.50 2025 - 185,000.00 - 12,025.00 197,025.00 12,025.00 2026 - 185,000.00 - 6,012.50 191,012.50 6,012.50 2,200,000.00 1,850,000.00 393,250.00 330,687.50 City of Brooklyn Center Water Rates for 2012 Comparison of Rate Scenarios - 2012 Water Fund 3.00 2.50 2.00 N C 0 M to ri 1.50 v CL d a 1.00 0.50 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 No Debt 1.51 1.65 1.80 1.96 2.13 2.33 2.54 2.54 2.54 2.23 1.96 1.73 1.52 1.52 1.52 $4M Debt 1.46 1.51 1.57 1.64 1.70 1.77 1.84 1.92 1.99 2.07 2.07 2.07 2.07 2.07 2.07 $5M Debt 1.45 1.50 1.55 1.61 1.66 1.72 1.78 1.84 1.91 1.97 2.04 2.04 2.04 2.04 2.04 18.,000 Gallons of Water per Quarter in 2011 $90.00 $84.46 $80.00 $68.35 $75.42 $78,12 $70.00 $60.00 $54.71 $50.00 $48.60 $37.60 $40.00 $31.92 $30.00 $26.74 $23.68 $20.00 - $10.00 - --- - -------- White Bear Brooklyn Fridley Shoreview Richfield Maplewod Roseville Crystal Golden Valley New Hope Lake Center 18,000 Gallons of Water at the Maximum Rate for 3 water rate scenarios $90.00 $84.46 $80.00 $75.42 $70.00 68-35 $60.00 $54.71 $48.43 $48.60 $50.00 $40.00 $37.60 $39.03 $39.52 $31.92 $30.00 26.74 $23.68 $20.00 $10.00 $- White Bear Brooklyn Fridley Shoreview BC$5.0 M BC$4.0 M BC No Debt Richfield Maplewod Roseville Crystal Golden New Hope Lake Center Valley Sale of Water Fund Capital Debt Term: 10 Years Interest Rate 4.50% Face Value Sold: $ 51000,000 Fiscal Beginning Interest Principal Total Ending Year Balance Payment Payment Payment Balance 2016 51000,000 225,000 400/000 625,000 4,600,000 2017 4,600,000 207,000 425,000 632,000 4f175,000 2018 41175,000 187,875 450,000 637,875 3,725,000 2019 3f725,000 167,625 475,000 642,625 3,250,000 2020 3,250,000 146f250 475,000 621f250 2,775,000 2021 217751000 124f875 5001000 624f875 2,275,000 2022 2,275,000 102,375 525,000 627,375 11 750,000 2023 if 750,000 781750 550,000 628,750 1,200,000 2024 112001000 54,000 5751000 629,000 625,000 2025 625 000 28f125 625 000 653f125 - TOTALS 11321,875 5,000,000 6,321,875 Sale of Water Fund Capital Debt Term: 10 Years Interest Rate 4.50% Face Value Sold: $ 41 000,000 Fiscal Beginning Interest Principal Total Ending Year Balance Payment Payment Payment Balance 2016 4,000,000 1801000 325/000 505,000 3,675,000 2017 3,6751000 165,375 350,000 515,375 3,325,000 2018 3,325,000 149,625 350,000 499,625 2,975,000 2019 2,975,000 133,875 375,000 508,875 2f600,000 2020 2,600,000 1171000 400,000 517,000 2,200,000 2021 21200f 000 99,000 4001000 499,000 1,800,000 2022 if 800,000 81,000 425,000 506,000 1,375,000 2023 1,375,000 61,875 4501000 511,875 925,000 2024 925,000 41f625 450,000 4911625 4751000 2025 475 000 21f375 475 000 496 375 - TOTALS 1,050,750 4,000,000 5,050,750 Advantages and Challenges $4,000,000 $5,000,000 No Debt Debt Debt Advantages * lower ultimate rate * lower debt issue * cash balances better * no debt * lower repayment * ending cash balance * less interest * ultimate rate $ 2.04 * ending cash balance per 1 K gallons Challenges * higher rates thru 2021 * very low cash in 2020 * higher debt issue * internal borrowing * highest ultimate rate * more interest paid * lower ending cash $ 2.07 per 1 K gallons Impact for 2012 2011 to 2012 Base Water Rate Rate Increase No Debt $ 1. 51 per 1,000 gallons 8.00% $ 4,000,000 Debt $ 1.46 per 1,000 gallons 4.00% $ 5,000,000 Debt $ 1.45 per 1,000 gallons 3.50% City of Brooklyn Center Street Reconstruction Funding November 2012 N N N M N M M N NMNMN M N N N M N M N B N N M N M N M ««N N N N M N M N M M N N N N N N N. N N N M N M M 8N 8 N M M 8 N M N N N M N M N M N N N M N N N N N N M N M N R ..N N N N M N N N M N N N «N N N N NNN .... N«N«N NN .. ...... 1 r r$ , , II N««NNN« .NNNNNN MN M«NNN U 1 _ 4 . . . . r 19 R . Rill Po E Rl FL N N N M N N N M MNM«N N M^ N N NQQ N N e ...� N... M M M N M M N M ...... A N N N N N N« ....... M ....9 .5 M 0 V '' N N»»«»« N N N»N N N -- N NNN N O ....... N N N N N N. .. ..... N...... N N M N M N. .. ..... Z ...M... N.««N N N .. ... N M O D $ N N N N N N« N N N M N N N N N N NNN M 4—J $ E^ . . . . . 55 8S IR QQ O .NNN... ....... .. «.NNN a Pik 6 � N N N N M N N N N NNN MGM M M N NNN M Debt Issuance Required w/Payment Schedules A B C D E Principal Payments Interest Payments Year of Sale 2013 2016 Principal Amount $ 2,200,000 $ 1,850,000 Interest Rate 3.25% 3.25% Amortization 10 years 10 years Total Levy Interest Only 2014 350,000.00 - 71,500.00 - 421,500.00 71,500.00 2015 300,000.00 - 60,125.00 - 360,125.00 60,125.00 2016 300,000.00 - 50,375.00 - 350,375.00 50,375.00 2017 250,000.00 85,000.00 40,625.00 60,125.00 435,750.00 100,750.00 2018 200,000.00 85,000.00 32,500.00 57,362.50 374,862.50 89,862.50 2019 200,000.00 85,000.00 26,000.00 54,600.00 365,600.00 80,600.00 2020 200,000.00 85,000.00 19,500.00 51,837.50 356,337.50 71,337.50 2021 200,000.00 85,000.00 13,000.00 r 49,075.00 347,075.00 62,075.00 2020 200,000.00 85,000.00 6,500.00 46,312.50 337,812.50 52,812.50 2023 340,000.00 - 43,550.00 383,550.00 43,550.00 2024 - 340,000.00 - 32,500.00 372,500.00 32,500.00 2025 - 340,000.00 - 21,450.00 361,450.00 21,450.00 2026 - 320,000.00 - 10,400.00 330,400.00 10,400.00 2,200,000.00 1,850,000.00 320,125.00 427,212.50 1 4,797,337.50 747,337.50 A + C = Payments for 2013 Bond B + D = Payments for 2016 Bond E = Total Levy Required Each Year for payment of debt issues Use of Prior Levy for Police & Fire Buildings A B C Average Prior Annual Levy Annual Levy Difference 2014 421,500.00 720,000.00 298,500.00 2015 360,125.00 720,000.00 359,875.00 2016 350,375.00 720,000.00 369,625.00 2017 435,750.00 720,000.00 284,250.00 2018 374,862.50 720,000.00 345,137.50 2019 365,600.00 720,000.00 354,400.00 2020 356,337.50 720,000.00 363,662.50 2021 347,075.00 720,000.00 372,925.00 2020 337,812.50 720,000.00 382,187.50 2023 383,550.00 720,000.00 336,450.00 2024 372,500.00 720,000.00 347,500.00 2025 361 ,450.00 720,000.00 358,550.00 2026 330,400.00 720,000.00 389,600.00 4,797,337.50 9,360,000.00 4,562,662.50 Resulting Cash Flows City Brooklyn Center Street Reconstruction Fund Cash Flows Analysis Actual Estimated Proposed Projected Projected Projected Projected Projected Projected Projected Projected Projected 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202D 2021 Revenues Fund Transfer $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - Franchise Fees $ 647,796 $ 680,000 $ 680,000 $ 700,000 $ 700,000 $ 700,000 $ 720,000 $ 720,000 $ 720,000 $ 745,000 $ 745,000 $ 745,000 Debt Service Levy $ - $ $ - $ - $ 291,500 $ 284,350 $ 277,200 $ 515,175 $ 502,013 $ 488,850 $ 475,688 $ 462,525 Band Proceeds(net) $ $ $ $ 2050,000 $ - $ - $ 1,750,000 $ - $ - $ - $ - $ - Misc.Operating $ $ - $ - $ $ - $ $ - $ $ $ $ $ Misc.Nan-operating $ 4,262 $ 3,637 $ 2,000 $ $ - $ $ - $ $ $ $ $ - Total Revenues $ 652058 $ 683,637 $ 682,000 $ 2-750,000 $ 991,500 $ 984,350 $ 2,747,200 $ 1,235,175 $ 1,222,013 $ 1,233,850 $ 1,220,688 $ 1,207,525 Expenditures Personal Services $ - $ - $ $ - $ - $ $ - $ - $ - $ $ $ Supplies $ $ $ $ $ $ $ $ $ $ $ $ - Services $ $ - $ - $ $ - $ $ $ $ - $ - $ $ Depreciaticn $ $ $ $ $ $ $ $ - $ $ $ - $ - Bond Principal $ $ $ - $ $ 220,000 $ 220,000 $ 220,000 $ 405,000 $ 405,000 $ 405,000 $ 405,000 $ 405.000 Debt Service $ $ - $ - $ $ 71,500 $ 64,350 $ 57,200 $ 110,175 $ 97,013 $ 83,850 $ 70,688 $ 57,525 Total Expenditures $ $ - $ - $ $ 291,500 $ 284,350 $ 277,200 $ 515,175 $ 502,013 $ 488,850 $ 475,688 $ 462,525 Capital Outlay $ 1,20Z000 $ 2,150,011 $ - $ 1,025,000 $ 1,764,000 $ 1,413,000 $ 1,099,000 $ 1,377,000 $ 1,447,000 $ 1,025,000 $ 950,000 $ 165,000 Total Cash Requirement 1,202,000 Z150,011 - 1,025,000 2,055,500 1,697,350 1,376,200 1,892,175 $ 1,949,013 1,513,850 1,425,688 $ 627,525 Beginning Cash Balance $ 1,780,309 $ 998,752 $ (467,622) $ 214,378 $ 1,939,378 $ 875,378 $ 162,378 $ 1,533,378 $ 876,378 $ 149,378 $ (130,622) $ (335,622) Changes in Assets/Liabilities $ (231,615) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Revenues' $ 652058 $ 683,637 $ 682,000 $ Z750,000 $ 991,500 $ 984,350 $ 2,747,200 $ 1,235,175 $ 1,222,013 $ 1,233,850 $ 1,220,688 $ 1,207,525 Expenditures $ (1,202,000) $ (2,150,011) $ $ (1,025,000) $ (2,055,500) $ (1,697,350) $ (1,376,200) $ (1,892,175) $ (1,949,013) $ (1,513,850) $ (1,425,688) $ (627,525) Depreciation Add-Back $ - $ - $ $ - $ - $ - $ - $ - $ - $ - $ $ - Ending Cash Balance $ 998,752 $ (467,622) $ 214,378 $ 11939,378 $ 875,378 $ 162,378 $ 1,533,378 $ MV4373 $ 149,378 $ (130,622) $ (335,622) $ 244,378 Band Sale $ Z200,000 $ 1,850,000