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HomeMy WebLinkAbout2013 07-01 CCP Joint Session with Financial CommissionAGENDA CITY COUNCIL/FINANCIAL COMMISSION JOINT WORK SESSION July 1, 2013 6:30 P.M. Council Chambers City Hall 1.Call to Order 2.Approval of Agenda 3.Overview/Introduction 4.2014 — 2028 Capital Improvements Plan 5. Individual Capital Projects Funds a.Capital Projects Fund b.MSA Fund c.Street Reconstruction Fund d.Technology Capital Fund e. Overview of Utility Funds 6. Miscellaneous 7. Adjourn Packet Contents Capital Improvement Program — Introduction 1-3 Capital Improvement Program — Cost Charts 4-6 Capital Improvements Fund — Budget 7-8 Capital Improvements Fund — Cash Flows 9 Municipal State Aid Fund — Budget 10 Municipal State Aid Fund — Cash Flows 11 Street Reconstruction Fund — Budget 12 Street Reconstruction Fund — Cash Flows 13 Technology Capital Fund — Budget 14 Technology Capital Fund — Plan Details 15-16 Technology Capital Fund — Cash Flows 17 Utility Funds: Water Fund Cash Flows without Debt 18 Water Fund Cash Flows with Debt Issuance 19 Sanitary Sewer Fund Cash Flows 20 Storm Sewer Fund Cash Flows 21 Street Light Fund Cash Flows 22 City of Brooklyn Center 2014 CAPITAL IMPROVEMENT FROG'. M PROFILE The 2014-28 Capital Improvement Plan (CIP) is a planning document that presents a fifteen-year overview of scheduled capital projects to address the City's goals for maintaining public infrastructure. The CIP includes a long-term financing plan that allows the City to allocate funds for these projects based on assigned priorities. The fifteen-year horizon of the CIP provides the City with an opportunity to evaluate project priorities annually and to adjust the timing, scope and cost of projects as new information becomes available. The information contained in this plan represents an estimate of improvement costs based on present knowledge and expected conditions. Changes in community priorities, infrastructure condition and inflation rates require that adjustments be made on a routine basis. A capital improvement is defined as a major non-recurring expenditure related to the City's physical facilities and grounds. The 2014-2028 CIP makes a concerted effort to distinguish between major maintenance projects contained in the City's operating budgets and capital improvement projects financed through the City's capital funds and proprietary funds. Typical expenditures include the cost to construct roads, utilities, parks, or municipal structures. The CIP is predicated on the goals and policies established by the City Council, including the general development, redevelopment, and maintenance policies that are part of the City's Comprehensive Plan. A primary objective of the CIP is to identify projects that further these goals and policies in a manner consistent with funding opportunities and in coordination with other improvement projects. CIP Project Types The Capital Improvement Plan proposes capital expenditures totaling approximately $129 million over the next 15 years for basic improvements to the City's streets, parks, public utilities, and municipal buildings. A brief description of the four functional areas is provided below. Public Utilities The City operates four utility systems, all of which have projects included in the CIP —water, sanitary sewer, storm drainage, and street lighting. A vast majority of the public utility improvements are constructed in conjunction with street reconstruction projects. The remaining portion of public utilities projects include improvements to water supply wells, water towers, lift stations, force mains and storm water treatment system. Street Improvements Street improvements include reconstruction or resurfacing of neighborhood (local), collector and arterial streets. Proposed improvements include the installation or reconstruction of curb and gutter along public roadways. As noted earlier, street improvements are often accompanied by replacement of public utilities. Park Improvements Park improvements include the construction of trails, shelters, playground equipment, athletic field lighting and other facilities that enhance general park appearance and increase park usage by providing recreational facilities that meet community needs. 2014-2028 Capital Improvement Program - DRAFT Page 11 Capital Maintenance Building Improvements Capital maintenance building improvements include short and long term building and facility improvements identified in the 18-year Capital Maintenance Building Program approved in 2007. CIP Funding Sources Capital expenditures by funding source for the fifteen-year period are shown in Table 1 and Figure 1. Major funding sources are described below. Public Utility Funds Customers are billed for services provided by the City's water, sanitary sewer, storm sewer, and street lighting public utilities. Fees charged to customers are based on operating requirements and capital needs to ensure that equipment and facilities are replaced to maintain basic utility services. Annually the City Council evaluates the needs of each public utility system and establishes rates for each system to meet those needs. Capital Improvements Fund This fund is comprised of transfers from the General Fund, repayment of debt from the Golf Course operating fund, and transfers from liquor operations. Typically the City Council has directed these funds towards municipal facilities such as parks, trails, public buildings and other general purpose needs. Special Assessment Collections Properties benefiting from street and storm sewer improvements are assessed a portion of the project costs in accordance with the City's Special Assessment Policy. Every year the City Council establishes special assessment rates for projects occurring the following year. Rates are typically adjusted annually to maintain the relative proportion of special assessments to other funding sources. Street Reconstruction Fund The Street Reconstruction Fund provides for the cost of local street improvements along roadways that are not designated as municipal state aid routes. The revenue for this fund is generated from franchise fees charged for the use of public right-of-way by natural gas and electric utility companies. The City's ability to provide adequate revenue for the Street Reconstruction Fund is currently one of the main limiting factors in determining the rate at which future street and utility improvements can be accomplished. Municipal State Aid (MSA) Fund State-shared gas taxes provide funding for street improvements and related costs for those roadways identified as MSA streets. The City has 21 miles of roadway identified as MSA streets and is therefore eligible to receive funding based on this designation. The annual amount available is approximately $830,000 and provides for maintenance and construction activities within the City's MSA street system. It is expected that revenues from the State will incrementally increase in 2015 and 2016 due to a statewide reformulation in allotment computations for cities. Funds to be Determined A dedicated funding source for portions of the Capital Maintenance Building Improvements is yet to be determined. The Liquor Store Enterprise fund was used in 2008 and 2009. In 2010, accumulated unspent funds in the General fund in excess of the amounts required by cash flow needs were used. Other funding sources in this category include grants, park district funding, watershed funding, federal and state funding, and county funding as determined on a project by project basis. 2014-2028 Capital Improvement Program - DRAFT Page 12 Capital Improvement Plan by Funding Source Street Light, 2%Capital Projects, 2% Sanitary Sewer, Funds To Be Other Determined, 20% Funding_ Sources, _ 2%Special Assessments, 15%Storm Drainage,9 % Street Reconstruction, 16% MSA, 7% TABLE 1. 2014-2028 Capital Improvement Plan - Summary by Funding Source Total Funding Need 2013-2027 Average Annual Funding Need Percent of Total Need Water Utility $19,237,000 $1,282,467 15% Sanitary Sewer Utility $15,452,000 $1,030,133 12% Storm Drainage Utility $11,416,000 $761,067 9% Street Lighting Utility $2,261,000 $150,733 2% Municipal State Aid $8,910,000 $594,000 7% Street Reconstruction Fund $20,395,000 $1,359,667 16% Capital Projects Fund $3,316,000 $221,067 2% Special Assessment Collections $19,810,000 $1,320,667 15% Other Funding Sources $2,222,000 $148,133 2% Funds To Be Determined $26,183,000 $1,745,533 20% TOTAL $129,202,000 $8,613,467 100% FIGURE 1. 2014 -2028 Capital Improvement Plan — Overview of Project and Funding Sources. 2014-2028 Capital Improvement Program - DRAFT Page 13 LU aIN r'S EN2(6 NR,N a>cnO_C Eu 10 . .2--a2 TO0 .51- 0 O.Ern E 12t, 0 2 27 05°LW Oc'.5c7U_ It11 -5'aS .7rou-.E_mC.) _C.a 1.11-S-..--, L' 65 till -, CO S, 'c't.g. tO U)m01 . 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