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December Study SessionsDEPARTMENT OF FINANCE TELEPHONE (785) 309 -5735 AND ADMINISTRATION FAX (785) 309 -5738 Rodney Franz, Director TDD (785) 309 -5747 300 West Ash, P.O. Box 736 E -MAIL rod.franz @salina.org Salina, Kansas 67402 -0736 Salina Website: www.salina - ks.gov DATE: November 20, 2012 TO: Jason Gage, City Manager Salina City Commission FROM: Rod Franz, Director of Finance and Administration RE: December Study Sessions Following is the schedule for study sessions scheduled for December, 2012. December 3: Downtown Lighting Proposal December 10: Bicentennial Center Business Plan and Capital Improvement Program December 17: City Capital Improvement Program and Water and Wastewater Rate update These issues are somewhat inter - related. Because of that we are distributing the Citywide draft Capital Improvements Program for 2012 through 2017 as well as the Water and Wastewater rate update and proposal. This should provide you with the financial planning background to consider both the Lighting proposal and the Bicentennial Capital request. Both of these projects can be funded within the parameters of the five year capital improvement program. Attached you will find: 2012 — 2017 Capital Improvements Program 2013 Sub -CIP Special Sales Tax Fund Status General Debt Service Projections Water and Wastewater Capital and Debt Service Projections Water and Wastewater Rate projections 0 DEPARTMENT OF FINANCE City0f TELEPHONE (785) 309 -5735 AND ADMINISTRATION FAX (785) 309 -5738 Rodney Franz, Director TDD (785) 309 -5747 300 West Ash, P.O. Box 736 E -MAIL rod.franz @salina.org Salina, Kansas 67402 -0736 Salina Website: www.salina - ks.gov To: Salina City Commission Transmitted herewith is the preliminary 2012 through 2017 Major Capital Improvements Program. Major capital projects and purchases are scheduled by the year in which construction is anticipated to begin. Projects for which funding is not available within the project period, or for which the project scope has not been sufficiently defined are shown in the "Identified but Unfunded" and "Projects for Future Review" sections. Information for each project includes the project title and brief description or need, the contemplated funding source and timing, and the estimated cost of the project. The current status of 2012 projects is also disclosed. The "sub -CIP" (annual cash financed acquisitions and projects) for 2013 is included at the back of the document. The sub -CIP for 2013 includes the following items: Class Budget all funds Request Total Buildings and Facilities $ 290,000 $ 255,000 Park Improvements (excluding reserve $ 130,000 Incomplete $ 73,600 Streets, Traffic, and Sidewalks $2.747,396 $2,811,100 Vehicles and Equipment $1,539,960 $1,489,260 System Enhancements $1,700,000 $1,700,000 1 $ 460,000 For 2012, there are no dollars budgeted for the CIP Planning and Flood Control segments of the sub -CIP. Major projects scheduled by year are as follows: Year Amount 2012 $ 11,375,000 2013 $ 19,245,048 2014 $ 7,216,000 2015 $ 27,356,000 2016 $ 1,620,000 2017 1 $ 460,000 Attachment "C" shows the fiscal impact of the Capital Improvements Program on the Bond and Interest Fund. The projected mill levy required to financed program are as follows: Year Levy Rate 2012 Current Year 5.95 2013 5.96 2014 5.95 2015 5.95 2016 5.95 2017 5.55 2018 5.35 As can be seen from the table, the projected mill levy is relatively stable. As a matter of reference, one (1) mill supports about a $4.5 million improvement over a 15 year term. The other major funding source for projects in the Capital Improvements Program is the Water and Wastewater Fund. Water and Wastewater rates are set at levels that will support the proposed program through the project period, including debt service, set - asides for cash capital and capital reserve accounts. Table of Contents: 2012 Project Listing .................................................. ............................... 3 2013 Project Listing .................................................. ............................... 4 2014 Project Listing .................................................. ............................... 7 2015 Project Listing .................................................. ............................... 9 2016 Project Listing .................................................. ............................... 11 2017 Project Listing ................................................... ............................... 11 Identified but Unfunded Projects .................................. ............................... 12 Projects for Future Review ......................................... ............................... 13 2012 Sub -CIP .......................................................... ............................... NA 2 2012 Projects Wayfinding Continuation and completion of the Wayfinding project began in 2009. Project Cost: $200,000. This is to be provided by the Special Sales Tax proceeds. Reconstruction and widening of East Magnolia Road from Ohio Street to the Levee. This project will reconstruct, widen, and improve East Magnolia Road from Ohio Street to 200' east of the Flood Control Levee, and will incorporate a combination Bike /pedestrian path linking the existing Bike path along the Smoky Hill River to the Ohio Street Corridor. Development along East Magnolia coupled with the deteriorating condition of this old rural section mandate replacement and widening to meet projected traffic volumes. The strategic plan adopted by the City Commission includes a vision of alternate transportation methods, which this project will incorporate. Project Cost: $4,500,000. $1,400,000 is anticipated from the Kansas Department of Transportation, with $3,100,000 to be financed with GO Bonds. Bonds will be issued in 2013 for a term of 15 years, with the first payment in 2014. Annual Debt service will be an estimated $248,000 per year Southeast Salina Wastewater Extension: Construction of a collector system for South East Salina to serve the Magnolia and Markley Road Vicinity. Project Cost: $1,650,000. Financed with Revenue Bonds. Bonds issued in 2013, with first payments due in 2014. Annual Cost is about $110,000 per year Complete Crawford and Ohio Intersection Replacement. The project will replace the 10 year old asphalt surface with concrete, which should have a 25 year life. Originally Requested for 2011. Estimated at $525,000. Special Gas Tax. 2013 Projects Waterline Improvements The Water Distribution System engineering analysis identified a significant portion of the system in which proper functioning with regard to fire flow and consistently high water quality is in peril do to the aging condition and occlusion of water lines. Approximately 228 miles of line is of cast iron construction and more than 40 years old. This line is subject to occlusion from mineral deposits which reduces flow. While the product is disinfected and safe to consume, the water quality is undesirable water quality due to discoloration, and taste and odor issues. This project will replace approximately 40,000 feet (8 miles) of waterline per year. At this rate of replacement, it will take 28 years to replace the cast iron stock with PVC line Project Cost: $4,000,000 annually. This project will be financed with State Revolving Loan funds. Annual payments are estimated at $268,883 over 20 years. Wastewater Plant Preliminary Design The Salina Wastewater Plant is due for an upgrade to meet EPA and KDHE permitting requirements. The project will convert anaerobic digestion to an aerobic treatment process utilizing biological nutrient removal. The existing primary and secondary treatment systems will be removed, and new facilities substituted. This provides for the preliminary design of the facility in preparation for construction in 2015. Project Cost: $810,000. The source of funding will be revenue bonds payable over 20 years. The annual payment will be about $52,000 per year. First payment will be in 2014. Flood Control Levee Improvements for Certification Transferred from Identified but Unfunded One of the results of the Hurricane Katrina disaster was a requirement by FEMA that all flood control levy's in the United States undergo a "recertification" procedure. That procedure is a two step process: First, an engineering study to identify potential deficiencies in levy design, construction, or maintenance, and, second, remediation of those deficiencies. The preliminary engineering study by AMEC has determined that the flood control levee elevation needs to be raised in two locations —south of State Street and East of Ninth Street. In addition, we will need to perform some riprap and erosion /scour repairs. Project Cost: $375,000, including $25,000 for Engineering. Source: Sales Tax Hike Bike Trail (2013 - 2017) Complete annual segments of the trail improvement. Project Cost: $25,000. Sales Tax. BiCentennial Center Improvements: Transferred from Further Review This is a multi- faceted project incorporating improvements to both the interior and exterior of the building. This project includes concession stand improvements, Arena Improvements, HVAC improvements /replacement, restrooms, floor coverings, and kitchen /catering improvements. Much of this facility is original construction, from the late 1970's. This project has been identified as appropriate for aesthetic enhancements under the City's Community Art and Design policy, which provides for up to 5% of the project cost to be allocated for that purpose. Project Cost: Estimate from Global Spectrum is $8.3 million. Source will be General Obligation Bonds, with a 20 year term. Annual payment is $530,000. Payments from 2015 through 2019 scheduled out of Sales Tax fund and thereafter from the Bond and Interest Fund. Gateway Signage: Transferred from Further Review Install monument gateway sign Southwest quadrant of the 1 -70 and North Ninth Street Interchange Project Cost: $75,000 Sales Tax. Cloud and Ninth Street Intersection Improvements New Project Realign travel lanes at intersection to improve traffic flows Project Cost: $650,000 Source: General Obligation Bonds Annual Payment: $51,346 Centennial Road from Jumper to Water Well Road. Transferred from Further Review This project will provide for the completion of Centennial Road Improvements through the length of the Airport Industrial Park. This segment is listed as an impact street in the comprehensive plan. Project includes at least removal and replacement of existing pavement, addition of curb and gutter, addition of underground storm sewers, extension of reinforced box culverts, and 5' sidewalks on each side of Centennial road. This segment of roadway has deteriorated beyond where additional maintenance is cost efficient Project Cost is $887,000. Financed by General Obligation Bonds, 15 years. Annual payment is $70,068 Downtown Lighting Transferred from Further Review Replace the decorative lights throughout the downtown district. Remove High Bay street lights, expand coverage area. Cost estimate, based on new poles, LED lighting, and new wiring is $3.723.098. Financed with General Obligation Bonds or Certificates of Participation. The total utility and operational cost savings (excluding staff time) over the 23 year life of the project will total $2,671,451. Project Cost: $3,723,098. Net after projected project savings: $1,651,047 General Obligation Bonds; 15 year term. T -note issued 2013, bonds 2014, first bond payment 2015. Annual payment projected at $289,751 Replace Management Software Systems. Transferred from Further Review City Management depends on a variety of business computing systems to help them accomplish administrative tasks such as Personnel Management, Financial Management, and Financial Reporting. The software currently used for these tasks was installed in 1992, is based on very old technology, and is inadequate for many of the tasks desired. The current vendor (New World Systems) has released software designed to run as a networked system (dot.net), and has stopped marketing the old style software. In the two years since the dot.net package was made available, more than 125 out of 225 customers have switched or otherwise upgraded their systems. While New World still expresses a commitment to support the old style packages, as the number of users declines, that will become more and more expensive. Based on the experience of the last two years, we anticipate that support will become prohibitively expensive, if available at all in the next 3 -5 years. Project Cost: $600,000 Financed by lease purchase from operational funds. 5 year term. Annual payment of $130,000. Sales Tax Downtown Well Field Improvements This project will increase the supply capacity of the Downtown Well Field from 10 MGD to 13 MGD. The project includes the re- drilling of four wells, replacement of approximately 4,900 feet of undersized piping, and increases the capacity of the air stripping facilities at the Water Treatment Plant. The project estimate is $4,300,000 tobe financed through the State Revolving Loan Fund. Annual payments will be about $290,000, with the first payment due in 2015. KWO Water Security District This project will protect surface water supplies available from the Smoky Hill River. The cost is estimated at $2,500,000, to be financed with Revenue bonds over 20 years. Annual costs are estimated at $168,000, beginning in 2014 Gol 2014 Projects Waterline Improvements The Water Distribution System engineering analysis identified a significant portion of the system in which proper functioning with regard to fire flow and consistently high water quality is in peril do to the aging condition and occlusion of water lines. Approximately 228 miles of line is of cast iron construction and more than 40 years old. This line is subject to occlusion from mineral deposits which reduces flow. While the product is disinfected and safe to consume, the water quality is undesirable water quality due to discoloration, and taste and odor issues. This project will replace approximately 40,000 feet (8 miles) of waterline per year. At this rate of replacement, it will take 28 years to replace the cast iron stock with PVC line Project Cost: $4,000,000 annually. This project will be financed through the issuance of 20 year revenue bonds each year. Fire Engine Replacement Replace fire pumper (a 1991 Pierce) that will be nearing the end of it's service life. Project Cost: $500,000. Source: Sales Tax. Hike Bike Trail (2013 - 2017) Complete annual segments of the trail improvement. Project Cost: $50,000. Sales Tax Oakdale Park Parking Lot Pavement Repair and Resurface Parking Lot Project Cost: $107,000 Sales Tax. Iron Avenue Reconstruction. New Request This project will provide for improvements and major maintenance to Iron Avenue from Front Street to Ohio Street. Pavement cores indicate thin asphalt over brick in the outside lanes with thick asphalt over concrete in the center lane. Project will include removal and replacement of pavement on the outside lanes, milling and inlaying on the center lane, and minimal curb and gutter replacement Project Cost is $994,000. Source: General Obligation Bonds. 10 year term. Annual Payment is $78,520 Gateway Signage: Transferred from Further Review Install monument gateway sign Southwest quadrant of the Crawford /Centennial /1 -135 Interchange Project Cost: $75,000 Sales Tax. Police Department Boiler Replacement New Request The existing boiler was installed in 1967 and has a 60% efficiency rating. The unit has exceeded its projected life expectancy. The old unit will be replaced with a 90% energy efficient unit. Project Cost: $90,000 Sales Tax Fire Headquarters Remodel, Phase II The second phase of this project is estimated at $1,400,000. This project will improve the living conditions of fire personnel, the efficiency of the administration, the movement of fire apparatus in and out of the station, and the safety of fire personnel in providing adequate facilities to decontaminate ambulances and medical equipment. Project Cost: $1,400,000 Source: General Obligation Bonds Annual Payment: $110,592 7 Clean and rehabilitate North Lime Drying Lagoon This project includes removal and disposal of approximately 180,000 cubic yards of material and repairing 300 feet of damaged dike. This lagoon has been in operation for 33 years, and is approaching capacity. This will be the first cleanout. Project Cost: $1,600,000 Source: Revenue Bonds Annual Payment: $168,000 E:3 2015 Proiects: Waterline Improvements The Water Distribution System engineering analysis identified a significant portion of the system in which proper functioning with regard to fire flow and consistently high water quality is in peril do to the aging condition and occlusion of water lines. Approximately 228 miles of line is of cast iron construction and more than 40 years old. This line is subject to occlusion from mineral deposits which reduces flow. While the product is disinfected and safe to consume, the water quality is undesirable water quality due to discoloration, and taste and odor issues. This project will replace approximately 40,000 feet (8 miles) of waterline per year. At this rate of replacement, it will take 28 years to replace the cast iron stock with PVC line Project Cost: $4,000,000 annually. This project will be financed through the issuance of 20 year revenue bonds each year. Wastewater Treatment Plant Improvements Improvements are needed to our Wastewater Treatment processes in order to comply with the Kansas Department of Health and Environment Surface Water Nutrient Reduction Plan by 2020. The project will convert anaerobic digestion to an aerobic treatment process utilizing biological nutrient removal. The existing primary and secondary treatment systems will be removed, and new facilities substituted. Preliminary Design is scheduled for 2013. Construction is anticipated to begin in 2015 or 2016, and will take several years to complete. Project Cost: The preliminary cost estimate for this project is on the order of $20,000,000. Of this amount, $8,000,000 is scheduled to come from the Capital Reserve Fund, and $12,000,000 financed by revenues bonds. Annual payment will be on the order of $900,000 per year for 20 years. First payment is scheduled for 2016. South Well field Design The Raw Water Supply Study identified a number of improvements to the South Wellfield and plant that will be necessary to insure a high quality reliable water supply through 2060. This project will incorporate a number of improvements to existing facilities, as well as new facilities that may be required. The design phase provides for a detailed engineering design of facilities necessary, and sound cost estimates. The construction phase of this project is currently located in the "Further Review" section of the Capital Improvements Program. Project cost: The design of the project is anticipated to cost $1,350,000. Financed with Revenue Bonds in 2015. Annual payments are projected to be approximately $108,000 per year for 20 years. The first payment will be due in 2016. Country Club Road Reconstruction New Request This project includes major pavement maintenance on Country Club Road from Marymount Road to Eastborough Road and on Marymount Road from Iron Street to Country Club Road. The project will include removal and replacement of the existing pavement; repair and /or addition of curb and gutter, underground storm sewers and a 5' pedestrian /bicycle path. Project Cost: $1,516,000 General Obligation Bonds. Ten year term, annual payment of $119,756 for 20 years. Hike Bike Trail (2013 - 2017) Complete annual segments of the trail improvement. $50,000. Sales Tax. Gateway Signage: Transferred from Further Review Install monument gateway sign at the Southwest quadrant of the Crawford /Centennial /1 -135 Interchange Project Cost: $75,000 Sales Tax. L•I Replace Lighting for East Crawford Recreation Area, Fields 1 through 4 New Request The current lighting at the East Crawford recreation area is more than 28 years old and does not meet the minimum industry standards for illumination. The recommended illumination for these fields is 30 horizontal foot candles in the infield and 20 horizontal foot candles in the outfield. Current illumination levels are 17 horizontal foot candles in the infield and less than 10 in the outfield. The age of the fixtures is also resulting in increasing maintenance costs. In the last year, this has been more than $15,000. The new light fixtures require less than half of the energy as the current fixtures. In addition, the product cost for a new fixture includes a 25 year warranty on maintenance, labor and materials. Project Cost: $365,000 Source: Sales Tax H 2016 Projects Hike Bike Trail (2013 - 2017) Complete annual segments of the trail improvement. Anticipate a cost of $25,000 per year. Sales Tax. Widen North Ohio Street from North Street to Elm Street Transferred From Further Review This project will make the construction of this short stretch of Ohio Street consistent with those section to the North and the South. This street is an impact street in the Comprehensive Plan. The project will include removal, replacement and widening of the existing pavement, addition of curb and gutter, underground storm sewers, and 5' sidewalks on each side. Project Cost: $1,170,000 Source: Bonds 15 year term. Annual Payment $92,421 Police Department HVAC Chiller New Request The current chiller was installed in 1989. Over the last two years, it has required $20,000 in repairs. Replacement will minimize ongoing repair costs, and improve energy efficiency by 10% Project Cost: $90,000 Source: Sales Tax Iowa and Gypsum River Bank Stabilization The Corps of Engineers is performing a feasibility study. Construction cost will be split with the Corps. The City will be responsible for 35% of the cost. Project Cost (City): $335,000 Source: Sales Tax Clean and rehabilitate North Lime Drying Lagoon This project includes removal and disposal of approximately 180,000 cubic yards of material and repairing 300 feet of damaged dike. This lagoon has been in operation for 33 years, and is approaching capacity. This will be the second cleanout. Project Cost: $1,600,000 Source: Revenue Bonds Annual Payment: $168,000 2017 Projects Hike Bike Trail (2013 - 2017) Complete annual segments of the trail improvement. Project Cost: $50,000 per year. Source: Sales Tax. Police Department Electrical Service Upgrade New Request Electrical Service in the building is at capacity. All additional service upgrades needed by the Police Department require additional power. Project Cost: $110,000 Source: Sales Tax Replace Lighting for East Crawford Recreation Area, Matson Field and Dean Evans New Request The current lighting at the East Crawford recreation area is more than 28 years old and does not meet the minimum industry standards for illumination. The recommended illumination for these fields is 30 horizontal foot candles in the infield and 20 horizontal foot candles in the outfield. Current illumination levels are 17 horizontal foot candles in the infield and less than 10 in the outfield. The age of the fixtures is also resulting in increasing maintenance costs. In the last year, this has been more than $15,000. The new light fixtures require less than half of the energy as the current fixtures. In addition, the product cost for a new fixture includes a 25 year warranty on maintenance, labor and materials. Project Cost: $300,000 Source: Sales Tax it Identified but Unfunded Projects Identified but unfunded projects are those for which a need and project scope has been identified, but which have no funding mechanism or time frame assigned. Flood Control Levee Culvert Repairs: Video investigations have determined that seven culvert pipes are cracked or deteriorated to a level where repairs are necessary. Cost will be $50,000. Scheduling is dependant of funding. North Flood Control Pump Station Study the practicality/need of upgrading the two pumps at the North pump station to a larger size. Cost of the study is estimated at $30,000. Study Laurie Pond Expansion Study the need to expand Laurie Pond. The pond design incorporated the concept of using "street flooding" as temporary storage. Study Cost: $30,000. Friendship Center Parking: Mill and inlay the parking lot with 2" of new asphalt. $41,100. Unknown Funding Source. Sunset Park Restrooms Cost Updated Replace the existing depression era restrooms in Sunset Park with modern, heated, handicapped accessible facilities. Project Cost: $242,000. Oakdale Park Restrooms Cost updated. Replace the existing depression era restrooms in Oakdale Park with one modern, heated, handicapped accessible facility. Project Cost: $172,000. Closure, Landfill Cells 3 and 4 Project deferred pending Operations changes Final closure on Landfill Cells 3 and 4, pursuant to Subtitle D regulations. Project Cost: $1,600,000, to be financed over an 8 year period. Annual payments will be approximately $240,000 per year, payable from Solid Waste fees. Landfill Cell #6 Project deferred pending Operations changes Construction of Cell 6. This project includes construction of a leachate collection pond to serve future cells. Scheduled for opening in 2016, construction in 2015. Estimated Cost $3,400,000. Source of Funds will be General Obligation Bonds, to be paid from Landfill Revenues. 12 Projects for Future Review Projects for further review are those projects that have been identified as potential needs, but which do not yet have a well defined scope or financing sources identified. Replace irrigation system at Municipal Golf Course New Request The original irrigation system was installed in 1969 and is now 43 years old. Many of the main lines are made with asbestos, making repairs dangerous and difficult to manage. The configuration of the system does not allow for efficient watering. The configuration and types of the sprinkler heads used on the greens makes hand watering necessary during the summer months. A modern system would allow isolation of parts of the system during repairs. That is currently not possible, meaning the system must be drained, which consumes time and resources, and puts turf at risk. Project Cost: $775,000 Unknown Source of funding. Indian Rock Lodge Replacement New Request The existing Indian Rock Lodge was at one time an open air shelter that has been enclosed to permit year around use. It is the second most used facility in the City, and due in part to it not having been designed as an enclosed structure, it is in deteriorating condition. IT does not include a kitchen or restroom facilities, The replacement building would be a multi -use building with kitchen, restrooms, and a large meeting area. Project Cost $506,000 Bonds; Sales Tax Levee Trail Northwest New Request Add an Ag -Lime surface to the levee from Thomas Park to North Street, a distance of 2.9 miles. This would connect Thomas Park to the levee trail system and would add 2.9 miles. This would make it possible to walk or ride a bike from the north side of town to the south side town, a distance of 7.25 miles Project Cost: $150,000 Unknown Source Levee Trail Northwest New Request Add ag -lime surface on levee from Thomas Park to West Crawford, a distance of 3.4 miles. This project would complete the levee trail system. The system would encircle most of the City, and would connect West Cloud Street to South Ohio at Schilling Road. Project Cost: $180,000 Unknown Source Magnolia Multi -use Trail New Request This is a ten foot (10') wide concrete multi -use trail constructed on the south side of Magnolia from South 9th Street to South Ohio Street. This mile long trail would connect Jerry Ivey Park, South High School and the businesses along South 91h Street Project Cost: $ 325,000 Unknown Source East Salina Master Plan Improvements This project would provide public facilities to serve the area North of Crawford Street to Country Club Road and east of the City Limits to Holmes Road. The estimated cost of the improvements is $5,500,000. These would be funded in part by Special Assessments to benefiting property, but there would also be significant agricultural deferrals, cost recoveries, and other at -large components to the project. 13 Smoky Hill River Renewal: Renewal of the old Smoky Hill River channel, clearing and sloping the channel, hike /bike paths, and ancillary improvements. $27,700,000 Holmes Road, Magnolia to Country Club This consists of improvements to Holmes Road from Magnolia to Country Club Road, complimenting the East Salina Master Plan improvements. Cost is estimated at approximately $2,500,000, to be funded through Special Assessments and General Obligations. Markley Road from Old Airport to Magnolia Improve this segment of road to an urban standard. $2,000,000. Funding source will likely be General Obligation Bonds Complete Cedar Ridge Drive to Markley Road This length of roadway (about 1,050 feet) would be upgraded to match the urban section of Cedar Ridge Drive to the west. This segment of roadway is actually the extension of Cloud Street. Project Cost: $613,000 To be financed from Special Assessments, contingent on district formation. Relocation of Fire Station #4. Relocate Fire Station # 4 to Crawford and Markley Road in order to provide service as the community develops eastward. Cost estimate is $1,500,000. Requested for 2013. Replacement of the North 5th Street Box Culvert. The existing box culvert over an inflow stream into the Mulberry is in poor condition and requires replacement. The State of Kansas may assume responsibility for this project. Project cost is anticipated to be $200,000, from the Gas Tax. 9th and Cloud Improvements Intersection improvements to reduce the hazards at 9`h and Cloud. The project will reconstruct and realign the intersection to provide for improved traffic flow and reduced congestion. It will transition a four lane section to a 3 lane secton to a two lane section. KDOT funding is $350,000, with a letting projected to be in 2013. The final scope of the project and local cost have not yet been established. Downtown Drainage Improvements Drainage improvements to facilitate drainage at several downtown locations. Cost estimate for identified areas is perhaps $300,000, but need a better assessment of need. Downtown Gateways Install four gateways into the Downtown as identified in the Comprehensive Plan. Cost projection is on the order of $200,000 South Ninth Street, Riffel to Water Well Reconstruct South Ninth Street from a point just south of Riffel Drive to Waterwell Road, including reconstruction of the intersections and traffic control at Lowes Drive. Reconstruction of this segment is necessary due to the age and deteriorating condition of this major arterial providing service to a primary shopping and employment district. The project cost is estimated at $5,500,000 in 2009 dollars. Magnolia Improvements from the Smoky Hill River Bridge to Markley Road. Reconstruct Magnolia to a 3 Lane urban section from the Smoky Hill River Bridge to Markley Road. Estimated cost of $1,500,000. 14 Smoky Hill Bridge on East Magnolia. Reconstruct Bridge to match road segments. Estimated Cost: $1,500,000 Magnolia Road from Centennial to 1 -135 Interchange This road improvement complements other infrastructure improvements in the area, and contemplates the improvement of this stretch of roadway to a three lane urban section. Estimated cost is approximately $3,000,000, and would be payable largely from General Obligation Bonds. Water Well Road from Centennial Road to Ohio Street. This project would improve Water Well Road to a three lane urban segment all along the Southern boundary of our Community, providing service to several critical Commercial and Industrial locations, as well as to potential future residential areas. The estimated cost is $4,000,000 Greeley Avenue Bridge Replacement of the Greeley Avenue over the old Smoky Hill River Channel. This project is estimated at a cost of $500,000 from General Obligation Bonds over a 10 year period. The estimated annual payment will be $62,000. This project has been identified as appropriate for aesthetic enhancements under the City's Community Art and Design policy, which provides for up to 5% of the project cost to be allocated for that purpose. The Community Art and Design Budget for this project has been set at $15,000. Note: Pending review of traffic patterns. Outcome could range from replacement to elimination of the structure. Improvements to East Cloud Street from Ohio to the Levee Reconstruction of this segment to an urban section, with curb, gutter, underground drainage, and turning lanes onto Ohio Street. Estimated Cost: $2,000,000 to be financed with Special Assessment bonds South Wellfield Improvements The Raw Water Supply Study identified a number of improvements to the South Wellfield and plant that will be necessary to insure a high quality reliable water supply through 2060. This project will incorporate a number of improvements to existing facilities, as well as new facilities that may be required. The "survey" cost estimate for the improvements is $21,650,000 in 2009 dollars. Funding source would be Water Revenue Bonds Prescott Drainage: Potential drainage improvements to East Prescott Avenue from Santa Fe to the Rail Road tracks. Cost estimate is $350,000. Downtown Parking, Trash Corrals This project would provide ancillary improvements -3 new and 11 expanded trash corrals. Project Cost is estimated at $290,000. Unknown Funding Source. Salt Storage Building Construct a salt storage building to protect road treatment material from inclement weather, and to protect the environment from potential contamination from runoff from the storage location. Landfill Gas Extraction System: Develop system to extract and sell methane gas from landfill cells. Cost of design is estimated at $42,000. Funding source is landfill revenues, likely temporary notes or bonds for construction. 15 City of Salina 2013 Sub -CIP BUILDINGS & FACILITIES 11/20/2012 TOTAL BUDGET: $ 340,000 ESTIMATED COST TOTAL: $255,000 YTD /BID COST TOTAL: $0 Weis currently does this at an Sales Tax Fire 340,000 Pump Test Pit $50,000 expense of $5,000 per year. Tentative, need a $ and time cost analysis before proceeding Sales Tax Parks $70000 Tentative. Need an access report Resurface and Restri a Bill Burke Parkin Lot , with plans and engineering. Golf Course upgrade Restroom on back 9 $30,000 Sales Tax jBuilding Maintenance Re lace the su ortinq base for the boiler in Memorial H $30,000 BUDGET:$ 180,000 TOTAL Sales Tax $180,000 Utilities WWTP Repair Asphalt Driveway $17,000 WWC Install Doors on loafing shed $13,000 WWC Contrete Driveway and Sidewalk Section replacement at $25,000 Pump Stations B, 12, 16, C, A, 8,11,24,29 60,000 TOTAL Utilities $55,000 TOTAL BUDGET: $ 340,000 ESTIMATED COST TOTAL: $255,000 YTD /BID COST TOTAL: $0 REMAINING BUDGET: $85,000 REMAINING FUNDS: $ 340,000 City of Salina, Kansas 2011 Capital Budget 15 11/20/2012 City of Salina 2013 Sub -CIP PARK IMPROVEMENTS 11/20/2012 Fund Dept/Div. - oj. # Description Estimated Cost Spec. Recreation Parks $0 Replace Roof Beams and Shingles on Lakewood Shelter House Roofs $17,000 Spec. Recreation Parks Replace Lights on poles in Founders Park $13,860 Spec. Recreation Parks Replace shingles, roof beams on Sunset #2 and Ivey #2 Shelter Houses $12,800 Spec. Recreation Parks Payment on Bill Burke Soccer fields $30,000 Pending Advisory committee review $ 130,000 TOTAL SPECIAL PARKS: $73,660 BUDGET: TOTAL CITY BUDGET: $130,000 PRIVATE DONATIONS: ESTIMATED COST TOTAL: $73,660 YTD /BID COST TOTAL: $0 REMAINING BUDGET: $56,340 REMAINING FUNDS: $130,000 16 City of Salina 2013 Sub -CIP STREET, TRAFFIC, and RAMPS 11/20/2012 Fund Gas Tax Dept/Div. Ramps Proj. # Description ADA Ramp Construction Estimated Cost I $50,000 Gas Tax Street Arterial Sidewalk Construction $50,000 Gas Tax Traffic Traffic Cameras At three intersections $33,600 Gas Tax Traffic Battery Backups and LED Lights $52,500 Gas Tax Street Bridge Inspection and Maintenance $25,000 Gas Tax Street Annual Pavement Marking $20,000 Gas Tax Street Crack Sealing $350,000 Gas Tax Street Concrete Rehabilitation $594,000 Gas Tax Street Centennial Road Design $148,000 Gas Tax BUDGET: Sales Tax $ •. TOTAL Mill and Inlay 00 $705,000 Sales Tax Microsurfacing $548,000 Sales Tax Railroad Crossing (2) $100,000 Sales Tax Downtown Alley Drainage Improvements $90,000 Sales Tax BUDGET: $ 1,380,000 Annual City Parking Lot Improvements TOTAL SALES TAX: $45,000 $1,488,000 1 TOTAL BUDGET: $ ESTIMATED COST TOTAL: $ YTD /BID COST TOTAL: $ REMAINING BUDGET: $ REMAINING FUNDS: $ 17 2,747,396 2,811,100 2,747,396 2,747,396 City of Salina 2013 Sub -CIP 11/20/2012 VEHICLES & EQUIPMENT General Street Pull Behind Asphalt Tack Machine $15,000 General Street Salt Spreader (replace unit 116-2) $13,000 General Street Salt Spreader, New, Unit 121 $20,000 General Street Snow Plow, Unit 121 $11,000 General Fire Stryker Power Cots (3) $49,800 General Fire Stryker Patient Loading System $28,000 General Fire Mini -Van replacing unit 411 (City Pool) $28,000 General Fire Replace two (2) Zoll 12 -lead cardiac monitors $54,000 General Fire Type I Ambulance $195,000 General Fire Cardiac Science AED's (6) $10,000 General Parks 72" out front mower wilhcab and snow removal attachment (Unit 1126) $40,000 General Parks Convert Unit 1342 (1995) to Electric Power $16,000 General Parks 72" out front mower withcab and snow removal attachment (Unit 1384) $40,000 General BUDGET: Parks $500,000 Electric Utility Vehicle TOTAL GENERAL: $15,000 $534,800 Central Garage BUDGET: Central Garage 000 Convert 2002 vehicle to Electric (unit 250) TOTAL $16,000 $16,000 Sales Tax Street Road Maintenance Paver $50,000 Sales Tax Street Replacement Backhoe (unit 134 ?) $70,000 Sales Tax Street Traffic Lift Truck 45' $70,000 Sales Tax Golf Reel type fairway mower $47,000 Sales Tax Flood Control 25' Pull Behind Mower Deck $20,000 Sales Tax Building Services Compact Pickup or Hatchback $20,000 Sales Tax BUDGET: $300 TOTAL SALES TAX: $277,000 Golf Course ,000 I Golf Golf Cart Batteries (34) $18,000 Golf Course Golf Course Golf Course Golf Course BUDGET: rrt TOTAL Golf: $18,000 Sanitation Sanitation Replace Unit 565 (25 Yard capacity) Other Equipment (Containers ?) TOTAL SANITATION: $156,000 Sanitation Sanitation $54,960 Sanitation BUDGET: $210,960 $210,960 Solid Waste Landfill 3/4 Ton 4X4 Pickup with Snow Plow Solid Waste Landfill Alternative Daily Cover Tarps (2) Solid Waste Landfill Riding mower, mid -mount zero -turn Solid Waste Landfill Off Road 6X4 ATV BUDGET: rrr TOTAL SOLID Utilities Water Distribution Replace Fire Hydrants $35,000 $8,500 $10,000 $9,500 trr $56,000 Utilities Water Distribution Provide stock of new meter s $30,000 Utilities Water Distribution Rehabilitate Well # 12 $70,000 Utilities Water Treatment VFP Drives for 2 High Service Pumps $60,000 Utilities Water Treatment Rehabilitate One River Station Pump $30,000 Utilities Water Treatment Replace Two 2 Ammonia Feeders $23,000 Utilities Water Treatment Replace six turbidimeters $17,000 Utilities Wastewater Treatment Add screw pump station to SCADA $25,000 Utilities Wastewater Treatment Inline Solids Meter $25,000 Utilities Wastewater Treatment Replace Effluent Flow Meter $10,500 Utilities Wastewater Collection Replace two 2 Pumps at Station 7 $28,000 BUDGET: $400 ,000 TOTAL rr TOTAL BUDGET: $1,489,960 ESTIMATED COST TOTAL: $1,476,260 YTD Total Bids $0 YTDBudget Savings $0 YTDIBID COST: $0 REMAINING BUDGET: $1,489,960 U M O N M c M U) 0 T N W V W N cn 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C) (D C) C) O C) O O O C) C) O C) O O LO O LO O O LO LO Lf) LO O O O LO N V d' CO LO LO (D N CO r- O O (D r- 0 .— V) Y) EA — — ffi LC) — I- EA N EH to to EA ffl Efl V) 61) ER O CN � N * m O '0 N C: W U M O N M c M U) 0 T N W V W N cn U o (n (n o (n (n o (n (n (n (n (n (n (n (n (n (n (n cn a) a) a) a) a) m m a) a) m a) a) a) a) a) m a) a) a) 0o 0 M O r Q r r N N E:? 69 W Q Q F- 000 � F- F- m F- F- J N < 0 0 O 0 0 ~ W F- m a0 H cn W rn CD ` a c m > rn 0 a 0 CN � * m co '0 C: W @ E LO o in C O a) m Lo co _N O L C) .0 � L m � m c7 E Q c a 07) F- N c CD c 0 rn 00 co O Y r~i Q c o a) a) Lr) Lo Lo (n a) a) c O m N c -0 c � c rn o (n a�ci U) (n ao a) O E rY = L a) �_ a) a) 2 3 c, - a CL _N E in c c° aLi rn Q m 3 -0 .o Q(D 7 U D c( i W E a m W C C Z '� � a) C Q) Cn C C m C Q a) Q '@ (n m o) @ a 7 m c 0 iu Q E in 7 U M J CO Q 0) Y 3 o 3 a) E U) 2 O ch c o M 'CL cn U- o o v v U) U c CU Q (n m Q Q L C L Q C Q Q) a) T- m 010 a) of a) I Q� a) I Of m I U) a) Q� a) I O� a) I ()� m I (n a) .? m 0:� Q�f co c c c c cv cu cv co m m o m m o o 0 0 0 0 0 a- a- E E E'- E iu io is m a) m a) a) () a) c c E E F- H U U U U U U U E F- L m m m m L m m m of t t in t t in M m m m m m m m m m m m m m U o (n (n o (n (n o (n (n (n (n (n (n (n (n (n (n (n cn a) a) a) a) a) m m a) a) m a) a) a) a) a) m a) a) a) 0o 0 M O r Q r r N N E:? 69 W Q Q F- 000 � F- F- m F- F- J N < 0 0 O 0 0 ~ W F- m a0 H cn W rn Special Sales Tax Fund Notes The special Sales Tax Fund incorporates some items that are not listed in the Capital Improvements Program. These are generally prior year commitments and include: 1. North Ohio Bond Supplement. This is an offset to the initial long term debt costs associated with the North Ohio Grade Separation Project. This is a property tax stabilization measure, intended to reduce the impact of this project in the early years. Under the current projection, this sunsets in 2014. 2. Street initiative. This is intended to supplement the Gas Tax funding for enhanced maintenance and reconstruction of City Streets. Generally projected at $1,000,000 per year. 3. General Fund Tax Stabilization. Scheduled to expire in 2015. The amount budgeted for 2013 is $300,000. This will need to be absorbed into growth in other revenues or cost reductions over the next 3 years. 4. Aquatic Center Bonds. Scheduled at $1,350,000 per year. The Aquatic Center Bonds were issued with the intent of repaying them with special sales tax proceeds. 5. Aquatic Center Maintenance Set - aside. This represents our best estimate for major maintenance requirements for Kenwood Cove through 2027. A lump sum is set -aside in 2019 to provide for future years 6. Sidewalk repair. A $30,000 per year allowance. 7. Community Theatre Parking Lot. This is a prior commitment to support the theatre. $15,000 per year through 2015. The sales tax fund is projected using a 2% annual growth assumption, and a $200,000 cash flow reserve. The tax sunsets in 2019. With the proposed plan, resources within the fund are essentially committed 2015. However, in 2016 and after, amounts for additional projects are available. By the tax sunset at the end of 2019, we are currently projecting a little less than $2.5 million not yet committed to projects. O N O O O O O O O O V) r O N O N C) C) O OOO O O co V OHO 0 C O O O O O O O O O o) O O O O O O O O O O t0 N Cl) Cl) O M I- C) C) 00 O O M I� O co N M N O M f- t0 O (O V CV N O O N 'T sr N N N 69 Efl 69 69 69 U�l 69 69 69 M 69 69 69 69 69 00 O O ONO O N M�NtoO u') O O O O O H O C) to Lo B O O O C 0 O C ' C C 0 O O M (O O (•31 C O _ _ _ _ _ _ _ _ O O O O O (O O O _ _ _ _ _ _ V O I3) O _ r- 00 O O M M Cl) co 0 O C) CO O O) O O C C* Cl) N � O M (o (O O t0 CD m N f- C) N r r co V Cl) 69 69 EA 69 69 69 in w 69 69 EA w 69 69 69 69 O O O O O O O N O O O N M N M O M O O O O O O O to 0 O O t0 f� co LO to O t0 O O O O O O ' O m O O O _ _ _ _ _ _ _ _ _ _ _ O _ N O O) CM O _ _ _ _ _ M _ 0 0 O O O O 0 0 0 O O O V O V O V 1� O O M to O t0 M M O M Cl) .- O M M tO (O O M co co O O V O) O N co 00 C) N M R Cl) w 69 69 69 EA 69 w 69 6e 6) 69 69 69 w bq FA 69 69 Y) C) C) O O O OOO C) CD O X00;-0 O O O C) C) O Ln O O O to t` to Lo f� O f� O O O O O ' OMO O O _ _ _ _ _ _ _ _ _ _ M _ V''- M N O _ _ _ N _ O C) O O O O co O O t0 Cl) M V Cl) V O V (O C) C) M t0 0 MM MM MN •- C M LO Cl) O Cl MC' 0 •-O NMO)(ON V O N r r Cl) M 69 69 69 69 69 69 EA 69 69 (n w 69 Es) W to 6s W O O O O O O O O O O O O O O O CD C) O O O O O O O O O to O O O t0 Lo L r O O O O O O ' O O C) h N O r V O V O O O U) C3 O O O O COO N O M 00 (D MO Cl) (n m 0 Q) M (n O O t(7 O M to M M � r- O � M � M � N N M C' N CO O N N N N N (O C O C) r V V d b9 69 69 EA 69 69 69 Efl 69 EA ul) 69 40 GG M 60 69 60 C9 EA bq (n 'Q O O O m 0 0 0 C) C) 0 C) 0 00 O O CO N O O O O N� O O O 000 0 0 0 0 0 0 cc O O 00 (0 O to O t0 Eq 000 000 C C 0 0 Cl 0 0 0 ' C C r- 70N O N C) 0 C) to O O O O t� O O O O Lo O r N t0 t- O X E m d' C) 0 0) 1- M O to 0 0 0 LO A M— C) co r N O N V) to Q) 10 N N N E v v•r O N N U a) m a) CO 'F bq EA 69 to 69 60 w w CH EA 69 69 w w CA w 69 69 69 69 69 69 m d O O O O O O 0 0 0 0 0 O O W 0 C) co O o0 a O O O O O O O O O O O O 00 O O o 0 00000 O O C a) CD 000 Vnor C 00 r- U) O O (O O to O O O t0 O t0 t0 LO I- M to N O N M O CO I- O N 00 O to N CO .- 1l- M M M M M M t0 M O to (O O CC) O M N N LO C) N V I W bq 93 w (» 69 69 69 ER 69 u) 6) U9, 69 6q EA E q EA EA w O O O O O O O O O O Cl) t0 O 00 O 00 O O O O O O O O O O t0 V 0 C QD C O CL Ct O N CD O O O 0 CD t0 M(O t0 �f O V) O O tf) O O tO M N N N N C a M O (O _�O ti M O O N O (D to N M N r r Cl) Cl) M EA (A w 69 69 69 W C9 69 w W 69 EA Vi 69 69 69 (A a) O O O O a) (O EE _a (°amp °c ac 3 E L aai q � n te a) m a) -j E —° L) C a J m cO1 G o w is i� m c m m ci W (n N N N C N U) U (6 N (C E C _ L U O @p)� V C U Q= a) a) a) C (` M C .0 N O) a) a) d CO a) 'EC r r N O m (U � m a V E a) N � o E� w E LL '.CO-0 U a• >> Co a Q) CL 4) W -o n n ma m o D E E D m E C� 5 '° c a) a) o (u ' a c c C o w o m'a❑❑❑ �)EL ��UUY.� m.� o'c o s cv o 3 > U _m o c c (n m m U m o �u Q m°)(°1icai���p cUa)� `m .� .� a (°�6..i c 'a o . 'o m L C a) m 3 E W Y U t m y c L o o � m d d m m o m� U aci Q Q� o �.� m o m O° m E d U.� >m ��Z (n C�QQ(nUW LL. W mm m Uad0U Q O N Debt Service Projection Comments The Debt Service Projections (and expanded Schedule J from the annual budget) projects future debt service obligations for existing debt as well as for all projects scheduled within the CIP. It then projects revenues from various committed non - property tax revenue sources, and projects the annual property tax required to service the anticipated debt, as well as the mill levy rate required to support that. The projected levy rate is shown at the bottom of the third page. With the program as structured, the levy rate is anticipated to remain at 5.95 mills through 2016, and then begin a gradual decline. Debt Service Projections Schedule J For Current and Future Projects 2012 2013 2014 2015 2016 2017 2018 Existing Issues: 2002 -B 2002 -B At -Large $ 104,219 2002 -B Property Owner Share $ 81,453 2002 -B Enterprise Share 2002 -B Total Issue /Project $ 185,672 $ - $ - $ - $ - $ - $ - 2003 -A 2003 -A At -Large $ 261,505 $ 261,663 2003 -A Property Owner Share $ 69,095 $ 69,137 2003 -A Enterprise Share 2003 -A Total Issue /Project $ 330,600 $ 330,800 $ - $ - $ $ - $ 2004 -A Refunding 2004 -A At -Large $ 176,370 $ 165,760 2004 -A Property Owner Share $ 275,758 $ 262,428 $ 258,788 $ 119,600 2004 -A Enterprise Share 2004 -A Total Issue /Project Refunding $ 452,128 $ 428,188 $ 258,788 $ 119,600 $ - $ - $ 2004 -B 2004 -A At -Large $ 377,958 2004 -A Property Owner Share $ 8,502 2004 -A Enterprise Share 2004 -B Totallssue /Project $ 386,460 $ - $ - $ - $ - $ - $ - 2005 -A 2005 -A At -Large $ 99,294 $ 97,883 2005 -A Property Owner Share $ 195,820 $ 193,037 2005 -A Enterprise $ 50,858 $ 50,135 2005 -A Totallssue /Project $ 345,971 $ 341,055 $ - $ - $ - $ - $ - 2006 -A Phase I North Ohio 2006 -A At -Large $ 177,045 $ 173,085 $ 169,070 $ 194,945 $ 160,765 $ 156,475 $ 152,075 2006 -A Property Owner Share 2006 -A Enterprise 2006 -A Totallssue /Project $ 177,045 $ 173,085 $ 169,070 $ 194,945 $ 160,765 $ 156,475 $ 152,075 2006 -B 2006 -B At -Large $ 40,302 $ 39,023 $ 37,743 $ 36,389 $ 30,597 2006 -B Property Owner Share $ 53,423 $ 51,728 $ 50,032 $ 48,236 $ 40,558 $ 48,325 $ 46,525 2006 -B Enterprise 2006 -B Total Issue /Project $ 93,725 $ 90,750 $ 87,775 $ 84,625 $ 71,155 $ 48,325 $ 46,525 2007 -A 2007 -A At -Large $ 433,899 $ 422,577 $ 411,255 $ 399,933 $ 388,611 $ 376,623 $ 364,635 2007 -A Property Owner Share $ 152,451 $ 148,473 $ 144,495 $ 140,517 $ 136,539 $ 132,327 $ 128,115 2007 -A Enterprise 2007 -A Totallssue /Project $ 586,350 $ 571,050 $ 555,750 $ 540,450 $ 525,150 $ 508,950 $ 492,750 2008 -A 2008 -A At -Large $ 135,281 $ 131,813 $ 128,575 $ 125,106 $ 121,406 $ 117,706 $ 114,238 2008 -A Property Owner Share $ 230,343 $ 224,438 $ 218,925 $ 213,018 $ 206,718 $ 200,419 $ 194,513 2008 -A Enterprise 2008 -A Totallssue /Project $ 365,624 $ 356,250 $ 347,500 $ 338,124 $ 328,124 $ 318,125 $ 308,750 2009 -A 2009 -A At -Large $ 2,296,454 $ 2,277,206 $ 2,279,706 $ 2,260,306 $ 2,279,330 $ 2,305,530 $ 2,296,780 2009 -A Property Owner Share $ 252,082 $ 252,082 $ 252,082 $ 252,082 $ 252,082 $ 252,082 $ 252,082 2009 -A Enterprise 2009 -A Total Issue /Project $ 2,548,536 $ 2,529,288 $ 2,531,788 $ 2,512,388 $ 2,531,412 $ 2,557,612 $ 2,548,862 2010 -A 2010 -A At -Large $ 373,537 $ 370,117 $ 370,497 $ 366,795 $ 366,095 $ 369,425 $ 371,627 2010 -A Property Owner Share $ 34,306 $ 34,306 $ 34,306 $ 34,306 $ 34,306 $ 34,306 $ 34,306 2010 -A Enterprise $ 622,058 $ 623,178 $ 2$0,198 City of Salina, Kansas 2012 - 2017 CIP 11/20/2012 2010 -A Total Issue /Project 2010 -B Refinancing 2010 -B At -Large 2010 -B Property Owner Share 2010 -B Enterprise 2010 -B Total Issue /Project 2011 -A 2011 -A At -Large 2011 -A Property Owner Share 2011 -A Enterprise 2011 -A Total Issue /Project 2012 -A 2012 -A At -Large 2012 -A Property Owner Share 2012 -A Enterprise 2012 -A Total Issue /Project 2012 -B Refunding 2012 -B At -Large 2012 -B Property Owner Share 2012 -B Enterprise 2012 -B Total Issue /Project Projects and scheduled but unissued debt: Debt Service Projections For Current and Future Projects Schedule J 2012 2013 2014 2015 2016 2017 2018 $ 1,029,901 $ 1,027,601 $ 825,001 $ 401,101 $ 400,401 $ 403,731. $ 405,933 $ 244,989 $ 278,224 $ 267,275 $ 258,442 $ 245,723 $ 26,590 $ 180,099 $ 181,818 $ 174,669 $ 167,596 $ 160,598 $ 17,391 $ 608,061 $ 636,773 $ 628,729 $ 610,909 $ 609,316 $ 593,156 $ 594,425 $ 1,033,149 $ 1,096,815 $ 1,070,673 $ 1,036,947 $ 1,015,637 $ 637,137 $ 594,425 $ 26,846 $ 26,221 $ 25,971 $ 25,696 $ 25,396 $ 25,566 $ 25,476 $ 201,349 $ 196,656 $ 194,781 $ 192,718 $ 190,469 $ 191,743 $ 191,068 $ 308,734 $ 301,539 $ 298,664 $ 295,501 $ 292,052 $ 294,006 $ 292,971 $ 536,930 $ 524,415 $ 519,415 $ 513,914 $ 507,916 $ 511,315 $ 509,514 $ $ 77,083 $ 77,131 $ 78,679 $ 80,050 $ 79,082 $ 80,265 $ $ 102,179 $ 102,244 $ 104,296 $ 106,112 $ 104,830 $ 106,397 $ 179,262 $ 179,375 $ 182,975 $ 186,162 $ 183,912 $ 186,662 Cloud and Ninth Street Intersection At -Large POS Enterprise Total, Cloud and Ninth $ Downtown Lighting Replacement At -Large Property Owner share Enterprise Share Total, Downtown Lighting East Magnolia Road At -Large Property Owner share Enterprise Share Total, East Magnolia Road Centennial Road, Jumper to Waterwell At -Large Property Owner share Enterprise Share Total, Centennial Road Bicentennial Improvements At -Large Property Owner share Enterprise Share Total, BiCentennial Improvements $ - Iron Avenue Reconstruction At -Large Property Owner Share Enterprise Share Total, Iron Avenue Country Club Road Reconstruction At -Large Property Owner Share Enterprise Share Total North Ohio, North to Elm At -Large City of Salina, Kansas 2012 - 2017 CIP $ 423,409 $ 606,111 $ 290,015 $ 189,446 $ 219,020 $ 213,493 $ 9,160 $ 312,401 $ 306,019 $ 290,331 $ 281,157 $ 271,834 $ 56,916 $ 54,993 $ 432,569 $ 975,428 $ 651,027 $ 479,777 $ 500,177 $ 485,327 $ 51,346 $ 51,346 $ 51,346 $ 51,346 $ $ - $ 51,346 $ 51,346 $ 51,346 $ 51,346 $ 289,751 $ 289,751 $ 289,751 $ 289,751 $ $ - $ 289,751 $ 289,751 $ 289,751 $ 289,751 $ 115,570 $ 115,570 $ 115,570 $ 115,570 $ 115,570 $ 115,570 $ 115,570 $ 115,570 $ 115,570 $ 115,570 $ 70,068 $ 70,068 $ 70,068 $ 70,068 $ - $ 70,068 $ 70,068 $ 70,068 $ 70,068 $ 530,000 $ 530,000 $ 530,000 $ 530,000 $ - $ - $ 530,000 $ 530,000 $ 530,000 $ 530,000 $ 78,520 $ 78,520 $ 78,520 $ 78,520 $ 78,520 $ 78,520 $ 120,000 $ 120,000 $ 120,000 $ 120,000 22 $ 92,423 11/20/2012 Debt Service Projections For Current and Future Projects Schedule J 2012 2013 2014 2015 2016 2017 2018 Property Owner share Enterprise Share Total Issue $ 92,423 Fire Headquarters, Phase II At -Large $ 110,592 $ 110,592 $ 110,592 Property Owner Share Enterprise Share Totallssue /Project $ 110,592 $ 110,592 $ 110,592 Summary Uses of Funds: Total Existing Debt At -Large $ 4,747,698 $ 4,744,062 $ 4,488,904 $ 5,093,041 $ 5,133,265 $ 5,041,864 $ 5,076,858 Property Owner Share $ 1,734,681 $ 1,725,441 $ 1,742,722 $ 1,578,388 $ 1,417,713 $ 1,262,580 $ 1,224,840 Enterprise Share $ 1,589,711 $ 1,611,625 $ 1,404,507 $ 961,403 $ 901,368 $ 887,162 $ 887,396 Total All Existing Issues $ 8,072,091 $ 8,081,128 $ 7,520,563 $ 6,576,096 $ 6,206,499 $ 5,825,759 $ 5,730,823 Total CIP At -Large $ $ - $ 115,570 $ 1,056,735 $ 1,245,847 $ 1,365,847 $ 1,458,270 Property Owner Share $ $ - $ - $ - $ - $ - $ - Enterprise Share $ $ - $ - $ - $ - $ - $ - Total Future Projects $ $ - $ 115,570 $ 1,056,735 $ 1,245,847 $ 1,365,847 $ 1,458,270 Total, all At -Large $ 4,747,698 $ 4,744,062 $ 4,604,474 $ 6,149,776 $ 6,379,112 $ 6,407,711 $ 6,535,128 Property Owner Share $ 1,734,681 $ 1,725,441 $ 1,742,722 $ 1,578,388 $ 1,417,713 $ 1,262,580 $ 1,224,840 Enterprise Share $ 1,589,711 $ 1,611,625 $ 1,404,507 $ 961,403 $ 901,368 $ 887,162 $ 887,396 Total Issue /Project $ 8,072,091 $ 8,081,128 $ 7,636,133 $ 7,632,831 $ 7,452,346 $ 7,191,606 $ 7,189,093 Annual Change in At -Large Obligation $ (237,303) $ (3,636) $ (139,588) $ 1,545,301 $ 229,336 $ 28,599 $ 127,417 Sources of Funding Motor Vehicle Tax $ 300,000 $ 309,000 $ 318,270 $ 327,818 $ 337,653 $ 347,782 $ 358,216 Enterprise Funds $ 1,224,711 $ 1,311,625 $ 1,404,507 $ 961,403 $ 901,368 $ 887,162 $ 887,396 Special assessments $ 1,647,947 $ 1,604,660 $ 1,620,732 $ 1,467,901 $ 1,318,473 $ 1,174,199 $ 1,139,101 Prepaid Assessments (Escrow) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 Delinquent Assessments Collected $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 Property Owner Share (CIP) $ - $ - $ - $ - $ - $ - $ - Transient Guest Tax $ 205,419 $ 209,527 $ 213,718 $ 217,992 $ 222,352 $ 226,799 $ 231,335 Delinquent Taxes $ 65,000 $ 58,016 $ 58,187 $ 59,252 $ 61,029 $ 63,470 $ 61,572 Miscellaneous Income $ 400,000 $ 100,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 Transfer from Solid Waste $ - $ - $ - Transfer from Special Recreation $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 Sales Tax for Aquatic Center $ 1,350,000 $ 1,350,000 $ 1,350,000 $ 1,350,000 $ 1,350,000 $ 1,350,000 $ 1,350,000 Tax Stabilization Transfer - $ 250,000 $ 300,000 $ 200,000 $ 530,000 $ 530,000 $ 530,000 $ 530,000 Investment Income $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 Subtotal, Non - Property Taxes $ 5,558,077 $ 5,357,828 $ 5,355,414 $ 5,104,365 $ 4,910,875 $ 4,739,413 $ 4,717,619 Property Taxes Required $ 2,514,013 $ 2,723,300 $ 2,280,719 $ 2,528,466 $ 2,541,471 $ 2,452,193 $ 2,471,474 Total Required: $ 8,072,091 $ 8,081,128 $ 7,636,133 $ 7,632,831 $ 7,452,346 $ 7,191,606 $ 7,189,093 - Stabilization Transfer 2015 - 2019 is for BiCentennial Project Produced $ 2,320,628 $ 2,327,498 $ 2,370,064 $ 2,441,166 $ 2,538,813 $ 2,462,862 $ 2,469,075 Projected Valuation 402,354,576 402,597,689 410,649,643 422,969,132 439,887,897 457,483,413 475,782,750 Required Levy rate 5.95 5.96 5.95 5.95 5.95 5.55 5.35 Current Year surplus (Deficit) $ (193,385) $ (395,802) $ 89,345 $ (87,299) $ (2,658) $ 10,669 $ (2,400) December 31 Fund balance (est.) $ 597,557 $ 201,755 $ 291,100 $ 203,801 $ 201,143 $ 211,811 $ 209,412 23 City of Salina, Kansas 2012 - 2017 CIP 11/20/2012 Water and Wastewater Capital and Debt Service Projections Attached is a Water and Wastewater Capital and Debt Service projection for 2012 through 2017. This is a portion of our annual ratemaking analysis, and helps insure that future capital and infrastructure needs are appropriately considered in the rate - making process. Reserve fund A Water/Wastewater Reserve fund was established in 2011 with the intent of accumulating resources for major future projects. Resources for the fund are derived from the stream of revenue that was committed to pay previous debt (now retired) as well as from some accumulated surplus operating reserves. This is a Capital Improvements reserve fund as defined by statute. Transfers into the fund must be budgeted each year, however, expenses from the fund are not budgeted aside from inclusion in a multi -year capital improvements program. Balances may be accumulated for future projects. There are currently two projected demands on the fund in future years: the Schilling Environmental Remediation project, and reconstruction of the Salina Wastewater Plant. The Schilling Environmental preliminary expense is anticipated to be on the order of $1,500,000 over the next 2 years, with an as yet unknown construction obligation in the future. Within the CIP, we have committed $8,000,000 from the reserve fund towards the reconstruction of the Wastewater Plant. This will leave an available balance of approximately $9,500,000 for the construction portion of the Environmental project, or other projects as may be identified. 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The results are: Water Customer Charge: 3% per year for 2013 — 2015, then 4% 2016 and 2017 Water Consumption Charge: 4% per year through the period. Wastewater Customer Charge: 3% per year for 2013 — 2015, then 4% 2016 and 2017 Wastewater Consumption: 4% for 2013 — 2015, then 5% for 2016 and 2017 The effects of the rate changes on residential customers of various use classes are shown at the bottom of the page. For a minimum use customer (2,000 gallons per month), the increase for 2013 will be 3.6 %. For a higher use customer (20,000 gallons, with an 8,000 gallon wastewater charge) the increase will be 3.9% Excess use charges are projected at the same increase as are water use rates. The excess use rate structure is unchanged As you may recall, we now update this analysis every year to accommodate changing conditions. The recommended rates will cover all operating expenses as well as the proposed capital improvements program, and will maintain a satisfactory operating reserve. Underlying Assumptions: Cost increases: Salaries: 4% per year Benefits: 6% per year Supplies: 3% per year Services: 3% per year Cash Capital: Projected at fixed amounts Debt: Based on actual schedules and projected debt from the CIP Sensitivity: If we reduce the projected increases for Salary and Benefits to 3% and 5% respectively, it has about a $100,000 per year impact. On a revenue stream of $17.5 million, that is about a .6% reduction in rate growth. These projections are slightly higher than current growth in salaries —on the order of 3 % -- however because this covers a five year span, we anticipate that this could change Number of accounts projected to grow at .5% per year after 2013 Water Sold: 2012 and 2013 are projected as "drought' years, then water is scaled back to 2.12 billion gallons. This assumes some increase due to the meter changeout —in the years before the change out, consumption averaged about 1.9 billion gallons. Clearly, if water consumption remains at higher levels, then the pressure on future rates would be reduced. Wastewater processed: Even as water consumption has increased, wastewater processed has decreased. In 2007, 90% of the water sold was processed through the WW plant. In 2012, we are projecting this to be on the order of 63 %. In terms of volume, this has decreased from 1.75 billion gallons to 1.36 billion gallons. Wastewater is projected into the future at 1.35 billion gallons per year. Unencumbered cash: Our goal is to maintain about a 6 month (180 day) operating reserve. That reserve is currently at about 325 days. The plan reduces that to 189 days at the end of 2017 Capital reserve fund: Over the last several years, several old bond issues have paid out, and we have done several refunding issues. The transfer to the Capital Reserve fund is sized to offset this (funds that had been used for debt service are now directed into the reserve fund), as well as to provide some additional resources for dealing with the Schilling Environmental issue. We have planned outlay from this fund for about $500,000 in 2012, and $1,000,000 in 2013 for environmental purposes. In addition, we are projecting an $8,000,000 cash contribution (matching a $12,000,000 bond issue) to the Wastewater Plant reconstruction in 2016. After those planned outlays, the fund will have $10.0 million additional available for other major projects through the end of the planning period. Distribution of Rates: By charge type: Water expenses are charged 15% to the customer charge, and 85% to consumption Wastewater expenses are charged 20% to the customer charge and 80% to consumption. By function: Administration, Customer Accounting, Internal transfers, cash capital outlay and principal and interest payments are split 50/50 between water and sewer fee schedules. Water Distribution and Water Treatment are charged to water rates Wastewater Collection and Wastewater Treatment are charged to Wastewater rates. Expenses 2012 2013 2014 2015 2016 2017 Operating: Administration $ 720,265 $ 789,156 $ 815,502 $ 842,773 $ 871,002 $ 900,225 Water Customer Accounting $ 762,650 $ 838,031 $ 865,815 $ 894,584 $ 924,372 $ 955,221 Interfund charges $ 3,402,928 $ 3,601,300 $ 3,601,300 $ 3,601,300 $ 3,601,300 $ 3,601,300 Water Distribution $ 1,396,892 $ 1,332,450 $ 1,377,836 $ 1,424,895 $ 1,473,695 $ 1,524,303 Water Treatment $ 2,547,518 $ 3,005,515 $ 3,100,093 $ 3,197,751 $ 3,298,592 $ 3,402,726 Wastewater Treatment $ 1,522,242 $ 1,668,244 $ 1,722,825 $ 1,779,290 $ 1,837,708 $ 1,898,150 Wastewater Collection $ 1,184,659 $ 1,210,878 $ 1,249,142 $ 1,288,675 $ 1,329,521 $ 1,371,726 Total Operating Expenses $11,537,155 $12,445,574 $12,732,514 $13,029,268 $13,336,191 $13,653,650 Cash Capital Outlay $ 2,583,001 $ 3,018,000 $ 2,462,000 $ 2,462,000 $ 2,462,000 $ 2,662,000 Debt Services: Existing $ 2,478,205 $ 2,339,510 $ 2,125,537 $ 2,114,957 $ 2,067,523 $ 2,110,102 Planned $ - $ - $ 776,000 $ 1,376,000 $ 2,844,000 $ 3,254,000 Total Debt Services $ 2,478,205 $ 2,339,510 $ 2,901,537 $ 3,490,957 $ 4,911,523 $ 5,364,102 Transfer to Capital Reserve $ 3,445,846 $ 3,445,302 $ 3,560,302 $ 3,560,302 $ 2,560,302 $ 1,560,302 Total Expenses $20,044,207 $21,248,386 $21,656,353 $22,542,527 $23,270,016 $23,240,054 Water Expense $12,303,479 $13,015,964 $13,301,006 $13,768,453 $13,657,386 $13,168,453 Wastewater Expense $ 7,740,728 $ 8,232,423 $ 8,355,347 $ 8,774,074 $ 9,612,630 $10,071,602 Check total $20,044,207 $21,248,386 $21,656,353 $22,542,527 $23,270,016 $23,240,054 Revenues: Water use Charges $ 9,902,992 $10,775,953 $10,519,776 $10,924,338 $11,361,311 $11,815,764 Wastewater Use Charges $ 7,833,499 $ 8,139,012 $ 8,456,471 $ 8,786,343 $ 9,217,068 $ 9,668,941 Excess Use Charges $ 1,100,000 $ 1,133,000 $ 1,178,320 $ 1,225,453 $ 1,274,471 $ 1,325,450 Miscellaneous $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 Transfer from EPA Capital Reserve $ 950,000 $ - $ - $ - $ - $ - Total Revenues $20,286,490 $20,547,965 $20,654,567 $21,436,133 $22,352,850 $23,310,155 1/1 Unencumbered Cash $ 9,988,454 $10,230,737 $ 9,530,316 $ 8,528,530 $ 7,422,136 $ 6,504,970 12/31 Unencumbered Cash $10,230,737 $ 9,530,316 $ 8,528,530 $ 7,422,136 $ 6,504,970 $ 6,575,071 Days in reserve (Goal of about 6 months) 325 281 246 209 179 177 Capital Reserve Fund 1/1 Balance $ 1,385,444 $ 4,331,290 $ 6,776,592 $10,336,894 $13,897,196 $ 8,457,498 Transfers In $ 3,445,846 $ 3,445,302 $ 3,560,302 $ 3,560,302 $ 2,560,302 $ 1,560,302 Planned Outlay $ 500,000 $ 1,000,000 $ 8,000,000 12/31 /Balance $ 4,331,290 $ 6,776,592 $10,336,894 $13,897,196 $ 8,457,498 $10,017,800 Number of Accounts 19,864 19,963 20,063 20,163 20,264 20,366 Water sold (000's) 2,160,000 2,280,000 2,120,000 2,120,000 2,120,000 2,120,000 Wastewater Treated (000's) 1,350,000 1,350,000 1,350,000 1,350,000 1,350,000 1,350,000 Water Rates: Customer Charge by meter size: 1 4.74 4.88 5.03 5.18 5.39 5.60 2 7.55 7.77 8.01 8.25 8.58 8.92 3 10.24 10.54 10.86 11.19 11.63 12.10 4 15.88 16.36 16.85 17.35 18.05 18.77 5 25.65 26.42 27.22 28.03 29.16 30.32 6 67.34 69.36 71.44 73.58 76.52 79.59 7 96.43 99.32 102.30 105.37 109.59 113.97 8 178.95 184.32 189.85 195.55 203.37 211.50 9 376.57 387.87 399.51 411.49 427.95 445.07 10 0.00 0.00 0.00 0.00 0.00 0.00 Percentage Change 3.0% 3.0% 3.0% 4.0% 4.0% Consumption Charge, per 000 gal. 3.88 4.04 4.20 4.36 4.54 4.72 4.0% 4.0% 4.0% 4.0% 4.0% Wastewater Rates Customer Charge 6.77 6.97 7.18 7.40 7.69 8.00 Percentage Change 3.0% 3.0% 3.0% 4.0% 4.0% Consumption Charge per 000 gal 4.61 6.97 7.18 7.40 7.69 8.00 4.0% 4.0% 4.0% 5.0% 5.0% Example Residential Bills Use (Gallons): Water: 2,000 12.50 12.95 13.42 13.91 14.46 15.04 Wastewater: 2,000 15.99 16.56 17.15 17.77 18.58 19.44 Total: 28.49 29.51 30.58 31.68 33.05 34.48 Percent Change 3.6% 3.6% 3.6% 4.3% 4.3% Water: 8,000 35.78 37.16 38.60 40.10 41.70 43.37 Wastewater: 6,000 34.43 35.74 37.10 38.51 40.36 42.30 Total: 70.21 72.90 75.70 78.61 82.06 85.67 Percent Change 3.8% 3.8% 3.8% 4.4% 4.4% Water: 20,000 82.34 85.59 88.96 92.47 96.17 100.01 Wastewater: 8,000 43.65 45.33 47.07 48.88 51.25 53.74 Total: 125.99 130.91 136.03 141.35 147.42 153.75 Percent Change 3.9% 3.9% 3.9% 4.3% 4.3%