6.8. SR 10-08-2012 41k: REQUEST FOR ACTION
River
To I ITEM NUMBER
Mayor and City Council 6.8
AGENDA SECTION MEETING DATE PREPARED BY
Work Session October 8, 2012 Tim Simon, Finance Director
ITEM DESCRIPTION REVIEWED By
2013-2017 Capital Improvement Plan Cal Portner,City Administrator
REVIEWED BY
ACTION REQUESTED
Continue 2013-2017 Capital Improvement Plan discussions.
BACKGROUND/DISCUSSION
The purpose of the discussion is to provide preliminary information regarding projects and possible
funding options. The review and final document is prepared to anticipate major expenditures in advance
of the year they may become budget requests. Much of our discussion will focus on the 2013 portion of
the Capital Improvement Plan (CIP). After we review the cash flows and projects, I will be putting
together the final document in December for approval. The CIP is a long-range planning document.
So far,we reviewed the 2013-2017 equipment purchase requests with the Fleet Committee,Street
Improvement Reserve Fund,municipal state aid balances,and tonight,we will review technology
replacements,park improvements, and a few other capital project funds.
Development Fund (city)
The city's Development Fund has a cash balance of$622,184.96 as of September 30, 2012. This fund has
been used for development purposes (Northstar Business Park) in prior years and it was identified as
contributing a portion of the Natures Edge Business Center—Phase I improvements in the amount of
$350,000. Earlier during the 2013 budget process,Planning Manager Jeremy Barnhart proposed to
update the Comprehensive Plan in 2013. An option to consider is funding the Comprehensive Plan
General Fund portion out of this fund. A detailed CIP sheet is attached. The primary revenues are any
conduit bonding administrative fees and the tax abatement repayments for economic development
projects.
Technology Replacements
Technology replacements/software replacements for the most part are funded out of the IT operating
budget and the Capital Outlay Reserve Fund. IT Manager Bob Pearson will be at the meeting to discuss
these projects in detail. One item that will be reviewed over the next year is the phone system
replacement. It is currently listed in 2014,but with the new fiber ring we may be able to work out a
different solution.
fBB E R E B BY
N:\Public Bodies\City Council\Council RCA\Agenda Packet\10-08-2012\ClPstaffreport01008.docx tIATUIJ'
Capital Outlay Reserve Fund
This fund has no revenue stream other than interest income and donations. This fund has been used to
purchase the LETG police software, IT virtualization equipment, and most recently the new recreation
software. The undesignated cash balance as of July 31,2012,is $1,211,769.46. The 2012 General Fund
has a transfer in from the Reserve Fund for capital outlay in the amount of$122,100 and the preliminary
2013 has a transfer in the amount of$112,900 for capital.This is acceptable to our Financial Management
Plan since it is a one-time revenue source with one-time expenditures. If all our technology replacements
are fully funded from 2012-2017 it will be$801,500. After the transfers and technology CIP, the
remaining balance will be approximately$175,269 to fund future equipment and capital outlay.
Park Improvement Fund
The Park Improvement Fund was created to provide a funding source for replacement and further build
out/repairs of our current parks/trails. The current funding source is an annual transfer from the
municipal liquor store based on a percentage (20%) of profits after approved transfers. Park and
Recreation Director Michael Hecker recently reviewed the number of park replacement and maintenance
items including trails repairs and replacements. Attached are the projects being proposed based on the
current transfer from the Municipal Liquor Fund. You will notice a significant negative cash balance, also
attached is a proposed funding scenario for discussion with increasing the transfer from the municipal
liquor store to start addressing the projects. Michael will review in detail the 2013 projects at the meeting.
Park Dedication Fund
The Park Dedication Fund has seen a decrease in revenues in recent years as the recording of new plats
has slowed. This fund currently has one contract for deed obligation outstanding for the Pinewood Golf
Course which will be paid in full in 2013 with a balloon payment. The estimated revenues in the attached
exhibit have been completed with the assistance of the city Planning Department. With the existing
obligations and the estimated revenues,no projects have been programmed in the current five-year CIP
until revenues are sufficient to fund obligations or repayment of the internal loans.
GRE Reserve Fund
• RDF payment
The GRE Reserve Fund receives an annual payment for hosting the RDF plant. As you recall,the
Council approved a new agreement with a per municipal solid waste received fee. This fund was
identified as a funding source several years ago to make a portion of the Pinewood contract for deed
payment. The cash forecast assumes the RDF plant continues operation and the payment remains at the
new revised level. If park dedication revenues are insufficient to make half of the yearly payment, this
fund has made internal loans to the Park Dedication Fund. Once park dedication revenues are sufficient
this fund will be repaid.
• Peaking Plant payment
Starting in 2010, the city received payment from GRE for hosting the peaking plant. This amount will be
received over five years in the amount of$375,000. This amount is coded to the GRE Reserve Fund but
tracked separately. In 2011, the Council authorized the use of these funds for the downtown parking lot
acquisitions and the paying off of the ice arena bonds. These funds have been identified for the grant
match of Bailey Point. Michael will give an update on the status of that project.
N:\Public Bodies\City Council\Council RCA\Agenda Packet\10-08-2012\ClPstaffreport01008.docx
Next steps:
The remaining CIP funds will be reviewed on November 12,2012. Those funds will include the
following:
• Trunk Utilities Fund
• Government Building Reserve Fund
ATTACHMENTS
• Comprehensive Plan CIP sheet
• Technology replacement (2013-2017)
• Park Improvement Fund (2013-2017)
• Park Dedication Fund (2013-2017)
• GRE Reserve Fund (2013-2017)
Action Motion by Second by Vote
Follow Up
N:\Public Bodies\City Council\Council RCA\Agenda Packet\10-08-2012\ClPstaffreport01008.docx
EXHIBIT A
Capital Improvement Plan 2013 thru 2017
Department Planning
City of Elk River, Minnesota Contact Planning Manager
1 Type Study
Project# Plan-02
Useful Life Unassigned
Project Name Comprehensive Plan Update
Category Unassigned
Priority n/a
Description
Update to the Comprehensive Plan
Justification I
The Comprehensive plan has not undergone a comprehensive update since 2004. It is good planning practice to update this plan every 10 years,at
most,especially as the City Council has turned over,and the market has substantially shifted.
An up-to-date plan aids all city departments in their prospective future planning.
Expenditures 2013 2014 2015 2016 2017 Total
Planning/Design 80,000 80,000
Total 80,000 80,000
Funding Sources 2013 2014 2015 2016 2017 Total
City Development Fund 56,000 56,000
Park Improvement Fund 8,000 8,000
Sewer Fund 4,000 4,000
Street Improvement Reserve 8,000 8,000
Water Fund 4,000 4,000
Total 80,000 80,000
2013-2017 CAPITAL IMPROVEMENT PLAN Page 1
EXHIBIT B
� s
2011 2012B 2013F 2014F 2015F 2016F 2017F
Expenditures
In squad Video upgrade 20,000 - - - - - -
Laserfiche upgrade - 13,000 - - - - -
Virtualization repayment 10,900 10,900 10,900 10,900 - - -
SQL server upgrades 26,000 - - - - - -
Hardware/Enterprise switch/UPS - 30,000 - 52,000 - 52,000 -
Fiber Network Enhancements - - 30,000 - - - -
2004-Phone system replacement - - - 150,000 - - -
Virtualization refresh - - - - 120,000 - -
Campus Wireless Network 15,000 - - - -
Security Camera Replacement - 20,000 20,000 - - - 30,000
Timekeeping Software - 75,000 - - - - -
Recreation software upgrade - 52,000 - - - - -
Laptops/Computers Council - 7,500 - - 7,500 - -
Virtual Desktop - - - 150,000 - - -
Total Expenditures 56,900 208,400 75,900 362,900 127,500 52,000 30,000
Funding Sources
General Fund Operating 30,900 10,900 25,900 10,900 7,500 - -
Capital Outlay Reserve Fund 26,000 197,500 50,000 352,000 120,000 52,000 30,000
EXHIBIT C
4-011Q4 fi►hM)
Actual
2011 2012B 2013F 2014F 2015F 2016F 2017F
Revenues
Other Revenue
Interest Income 1,511 3,105 4,585 (6,931) (14,545) (18,713) (31,713)
Grants 16,625 - - - - - -
Misc.(Hillside/Woodlands) 15,179 10,000 10,000 10,000 10,000 10,000 10,000
Transfer In-Liquor Fund 95,592 108,510 95,730 98,150 93,602 88,383 82,426
Donations 1,005 69,691 - - - - -
Total Revenue 129,912 191,306 110,315 101,219 89,057 79,670 60,713
Expenditures
Playground Safety 23,316 10,000 4,500 5,000 5,000 5,000 5,000
Replace Worn Benchs&Tables -
Trail Repairs&Connections 18,803 30,000 100,000 100,000 100,000 100,000 100,000
Ridgewood East-replacement - -
Court Resurfacing 9,300 26,900
Rivers Edge Fountain 2,811
Hydrant Hookups - 3,500
Orono Boat Loanding - 1,500
Trott Brook Basket ball court - 61,341
Orono Park Playground 250,000
Downtown Parking Lot Landscape 47,000
Orono Boat Landing Dock 5,200
Dog Park irrigation and trees 11,500
Oak Knoll Well project 8,000
Park Property Lines 3,000 3,000 3,000 3,000 3,000
Parks Master Plan Update 65,000 **
Smart Irrigation System 18,000
YAC Complex well 39,000
Deerfield playground replacement 65,000
Flush toilets 125,000 -
Althletic field amenities 25,000 25,000 25,000
Hillside Improvements 50,000 50,000 50,000
Baldwin Park replacement 45,000 *
Splash Pad @ Orono 250,000
Lions Park Playground replacement 80,000
Re-Lamp Orono Softball Fields 14,047
Well replacement/repairs 471
Athletic field maintenance 3,907
Great Northern Trail 1,055
Woodland trails house removal -
Shelter/shed repairs 6,462
Refurbish Orono fishing pier 7,387
Oak Knoll irrigation repair -
Hillside amenities 1,126 8,727
Total Expenditures 88,685 141,968 494,200 355,000 228,000 513,000 183,000
Revenues less Expenditures 41,227 49,338 (383,885) (253,781) (138,943) (433,330) (122,287)
0 :.( frtint»g... .. .... "'. (231,040 (48482 ... t823,j ) t1,05T>O ;
a,..A.Ertding. ..,.,,.,' ,t ri.. ,,,,, �.,'% (484,821} {0230"704}.133, . . ..a ),''' '(1,119,
*=staff is still exploring reallocating these funds to trail repairs or other needs.
**=anticipated to do an RFP for both Comp Plan and Park Plan,costs may be reduced.
Yearly Transfer is made in June after City audit from Liquor Profits
The following projects are anticipate to be on future Park Improvement Plan updates
YAC Lights $ 500,000
Skate Park Replacement 250,000
Pavement for YAC complex 150,000
Pavement for YAC football 100,000
Orono Parking Lot 500,000
Interpretive/Ski chalet 500,000
Hockey Rink Trott Brook 200,000
Hockey Rink at Lions Park 200,000
Upgrading Lighting at Orono Complex 100,000
Softball Field at Trott brook Park 40,000
updated 09/26/12
41}-Vn',u tr ( J44
Actual
2011 2012B 2013F 2014F 2015F 2016F 2017F
Revenues
Other Revenue
Interest Income 1,511 3,105 4,585 (803) (2,177) 217 (5,116)
Grants 16,625 - - - - - -
Misc.(Hillside/Woodlands) 15,179 10,000 10,000 10,000 10,000 10,000 10,000
Transfer In-Liquor Fund 95,592 108,510 300,000 300,000 300,000 325,000 350,000
Donations 1,005 69,691 - - - -
Total Revenue 129,912 191,306 314,585 309,197 307,823 335,217 354,884
Expenditures
Playground Safety 23,316 10,000 4,500 5,000 5,000 5,000 5,000
Replace Worn Benchs&Tables -
Trail Repairs&Connections 18,803 30,000 100,000 100,000 100,000 100,000 100,000
Ridgewood East-replacement - -
Court Resurfacing 9,300 26,900
Rivers Edge Fountain 2,811
Hydrant Hookups - 3,500
Orono Boat Loanding - 1,500
Trott Brook Basket ball court - 61,341
Orono Park Playground 250,000
Downtown Parking Lot Landscape 47,000
Orono Boat Landing Dock 5,200
Dog Park irrigation and trees 11,500
Oak Knoll Well project 8,000
Park Property Lines 3,000 3,000 3,000 3,000 3,000
Parks Master Plan Update 65,000 **
Smart Irrigation System 18,000
YAC Complex well 39,000
Deerfield playground replacement 65,000
Flush toilets 125,000 -
Althletic field amenities 25,000 25,000 25,000
Hillside Improvements 50,000 50,000 50,000
Baldwin Park replacement 45,000
Splash Pad @ Orono 250,000
Lions Park Playground replacement 80,000
Re-Lamp Orono Softball Fields 14,047
Well replacement/repairs 471
Athletic field maintenance 3,907
Great Northern Trail 1,055
Woodland trails house removal -
Shelter/shed repairs 6,462
Refurbish Orono fishing pier 7,387
Oak Knoll irrigation repair -
Hillside amenities 1,126 8,727
Total Expenditures 88,685 141,968 494,200 355,000 228,000 513,000 183,000
Revenues less Expenditures 41,227 49,338 (179,615) (45,803) 79,823 ' (177,783) 171,884
Cash Balance»8000416j; 62,280 . 103,507 A84844 ." .... ... .a, .,,•< 'Oi}, - 7,249 {170,833)
rash pal a nCB...gt[!ng 126, f ft $t 14249" (170;533)2' 1.t361
*=staff is still exploring reallocating these funds to trail repairs or other needs.
**=anticipated to do an RFP for both Comp Plan and Park Plan,costs may be reduced.
Yearly Transfer is made in June after City audit from Liquor Profits
The following projects are anticipate to be on future Park Improvement Plan updates
YAC Lights $ 500,000
Skate Park Replacement 250,000
Pavement for YAC complex 150,000
Pavement for YAC football 100,000
Orono Parking Lot 500,000
Interpretive/Ski chalet 500,000
Hockey Rink Trott Brook 200,000
Hockey Rink at Lions Park 200,000
Upgrading Lighting at Orono Complex 100,000
Softball Field at Trott brook Park 40,000
updated 09/26/12
EXHIBIT D
10/03/2012
CITY OF ELK RIVER
Park Dedication Capital Budget
Estimate Estimate Estimate Estimate Estimate Estimate
2010 2011 2012 2013 2014 2015 2016 2017
Beginning Cash Balance - 11,828 - 59,852 - - - -
Sources of Funds
Park dedication 196,509 - 102,152 92,900 111,460 148,580 200,588 200,588
Contributions 9,000 - - - - - - -
Transfer In
GRE reserve fund 42,300 158,995 42,300 1,341,848 - - - -
Interest 340 29 - - - - - -
Total Sources of Funds 248,149 159,024 144,452 1,434,748 111,460 148,580 200,588 200,588
Expenditures
Barsody Property 58,568 - - - - - - -
Pinewood 84,600 84,600 84,600 1,494,600 - - - -
Malmstrom Property 89,479 85,412 - - - - - -
Miscellaneous 3,674 840 - - - - - -
Transfer Out(Repayment of interfund) - - - - 111,460 148,580 200,588 200,588
Total Park Dedication Uses of Funds 236,321 170,852 84,600 1,494,600 111,460 148,580 200,588 200,588
Ending Cash Balance 11,828 - 59,852 -
4Pdat04. r
Res. Platted lots 3,712 15 20 30 40 40
Commercial 7,444 5 5 5 7 7
92,900 111,460 148,580 200,588 200,588
EXHIBIT E
--, GRE Reserve Fund 2963
2011 2012F 2013F _ 2014F 2015F 2016F 2017F
Revenues
Interest 17,971 14,806 19,351 (6,111) (858) 6,889
Other Revenue
RDF payment 311,000 150,262 150,000 150,000. 150,000 150,000 150,000
Transfer In(repayment of interfund) - - - 111,460 148,580 200,588 200,588
Total Revenue 328,971 165,068 169,351 255,349 297,722 357,477 350,588
Expenditures
Transfer Out-General Fund 39,500 39,500 39,500 39,500 39,500 39,500 39,500
Transfer Out-Pinewood(committed) 42,300 42,300 747,300 - - - -
Transfer Out-Ice Arena 143,999 (143,999)
Transfer Out-Park dedication(loan) 116,695 - 594,548 - - -Total Expenditures 342,494 (62,199) 1,381,348 39,500 39,500 39,500 39,500
Revenues less Expenditures (13,523) 227,267 (1,211,997) 215,849 258,222 317,977 311,088
( l ance 3eginni , s . / 119 '81[1 H , . 907 ��,,"x;421- , ,( ,. . . 6
as
E,
{%.w. nde-Ending 3 „ . < ` '74,E 967'55 (244;02), (28,593) 339,629 ...; , ,':: . ' 31106!
Notes
2013 Balloon payment pinewood golf course
Other Item 2011A 2012F 2013F 2014F 2015F 2016F 2017F
Peaking Plant Payment 375,000 375,000 375,000 375,000 - - -
Downtown parking lots 225,000 - - - - - -
-closing costs/title insurance 9,803 - - - - - -
Ice Arena Bonds(Payoff) 370,000 - - - - - -
Bailey Point - 70,000 - - - - -
Cash balance $ 145,197 $ 450,197 $ 825,197 $1,200,197 $ 1,200,197 1,200,197 1,200,197
Total Cash Balance 885,485 1,417,752 580,755 1,171,604 1,429,826 1,747,803 1,511,285