2017-2021 Capital Improvement Plan (C.I.P.); HarkessCITY OF HOPKINS
MEMORANDUM
Date: October 11, 2016
To: Mayor & City Council
From: Christine Harkess, Finance Director
Subject: 2017-2021 Capital Improvement Plan (C.I.P.)
The CIP has undergone some additional changes since the last council work session. All funds
now have the ability to fund the projects scheduled for 2017-2021 with the exception of the CIP
Fund. This fund accounts for building type projects throughout the city. The challenges we have
moving forward is that there are more projects scheduled than we can afford. Compounding the
issue is that some of the 2015 projects came in over original projections and while those amounts
were not significant it does add to the funding challenge.
We need to decide how we want to move forward with some of the projects in the CIP
earmarked for the Capital Improvement Fund. The main source of funding for this fund is a tax
levy which needs to fit into the City’s overall financial management plan (FMP). Tax levy
projections as shown in the cash flow worksheet are taken from the FMP, however you will note
that they are not sufficient for the number of projects scheduled.
Staff will be looking to the council as to what direction you think we should talk with regards to
the projects planned for the City Hall lobby upgrade and the Activity Center – the two facilities
most impacted by the funding challenges.
FINANCE DEPARTMENT
PARK CAPITAL IMPROVEMENTS FUND (301)10/6/2016
Actual Projected Projected Projected Projected Projected Projected
2015 2016 2017 2018 2019 2020 2021
Working Capital Beginning Year 141,306 258,547 1,595,722 1,666,394 1,340,686 773,706 738,217
Revenues:
Taxes (from matured Park Bonds)
Interest 8,743 4,266 47,872 49,992 40,221 23,211 22,147
Dedication fees 0 0 0 0
Moline Apts 180,000
Village Apts 120,000
Cold Storage Site Redevelopment 300,000
Joint Rec refunds 6,000 6,000 6,000 6,000 6,000 6,000
Franchise Fees (gas/elec) 2014 incr 87,148 85,300 85,300 85,300 85,300 85,300 85,300
Franchise Fees (gas/elec) 2012 incr 206,227 210,000 210,000 210,000 210,000 210,000 210,000
Transfer in Franchise Fees 316,970
Bond Proceeds (1)1,504,382 1,150,000 1,200,000
Hennepin County Grant
Cottageville Park Donations 34,689
BWSR Grant 425,250
CDBG Funds 180,000
PIR Funding (Transfer In) 225,000
Water Funding (Transfer In) 37,500
Sewer Funding (Transfer In) 37,500
Storm Sewer Funding (Transfer In) 265,000
Met Council - easement/grant
Grants - Private Foundations
Donations - general 989
Donations - benches
T-in - Storm Sewer for Cottageville Park
Total Revenues 2,372,489 2,592,475 1,669,172 651,292 341,521 324,511 323,447
Expenditures:
C.I.P. Projects 101,269 858,300 1,486,500 310,000 691,500 150,000 40,000
Cottageville Property Acquisition
Cottageville Park Playground 338,835
Cottageville Park House Demo 12,107
Cottageville Park Improvements 1,796,036 450,000
Cottageville Park Pavilion 380,000
Bond Payment Contribution (2015 Bonds) 10,000 10,000 10,000 10,000 10,000 10,000
Bond Payment Contribution (2016 Bonds) 95,000 100,000 100,000 100,000 100,000
Bond Payment Contribution (2017 Bonds) 100,000 100,000 100,000 100,000
Skate Park commitment 7,000 7,000 7,000 7,000 7,000
Total Expenditures 2,255,248 1,255,300 1,598,500 977,000 908,500 360,000 250,000
Working Capital Year End 258,547 1,595,722 1,666,394 1,340,686 773,706 738,217 811,664
2016 Projects 2019 Projects
PARK DEDICATION FUND PROJECTS 380,000 Cottageville Park - Pavilion 600,000 Pav Addition/Warming Hous
120,000 Valley Park - play equipment 30,000 H Hopkins Park - Wrmg Hs
260,000 Valley Park - warming house 50,000 H Hopkins Park - Lighting
50,000 Valley Park - Lighting 11,500 Shady Oak Beach Improv
60,000 Various Parks - drinking fountains 691,500
355,000 Oakes Park - picnic shelter & warming house
13,300 Shady Oak Beach Improvements 2020 Projects
1,238,300 50,000 Interlachen Park Lighting
20,000 Central Park Tennis Courts
2017 Projects 80,000 Maetzold Field Pavilion
1,200,000 Burnes Park - warming house 150,000
120,000 Hilltop Park - play equipment
100,000 Burns Park 2-5 Play Equipment 2021 Projects
16,500 Shady Oak Beach Improvements 40,000 Hilltop Picnic Shelter
50,000 Interlachen PK - Portable Hockey Boards 40,000
1,486,500
2018 Projects
50,000 Elmo Park 2-5 Play Equipment
120,000 Park Valley Play Equipment
40,000 Burns & Oakes Tennis Court Rehab
100,000 Maetzold Field Play Equipment
450,000 Cottageville Park - Phase III
760,000
10/6/2016
MUNICIPAL STATE AID FUND (302)
Actual Projected Projected Projected Projected Projected Projected
2015 2016 2017 2018 2019 2020 2021
Working Capital Beginning Bal 513,074 422,235 424,346 426,467 428,600 830,743 1,234,897
Revenues:
State MSA Funds, projects 600,766 0 0 0 400,000 400,000 400,000
State MSA Advance
Interest Earnings 18,630 2,111 2,122 2,132 2,143 4,154 6,174
Hennepin County -SOR Land Reimb
Shady Oak Rd - Land Sale proceeds
Bond issue
Total Revenues 619,396 2,111 2,122 2,132 402,143 404,154 406,174
Transfer Out for Projects
CIP State Aid Projects
Highway 7 & 5th Ave Traffic Signal
Shady Oak Rd - Co Rd 61 542,662
Shady Oak Rd ROW Purchase
Shady Oak Rd Land Acqusition
Mainstreet Rehabilitation 109,935
ARTery - 8th Ave S
County Road 3 - EB 700,000
Sixth St S (11th - 12th Ave)
Landscape - Excelsior Blvd Median 25,424
Misc Expenses 32,214
Total Expenditures 710,235 0 0000700,000
Working Capital Ending Balance 422,235 424,346 426,467 428,600 830,743 1,234,897 941,071
includes cash, interest rcvbl, & A/P
Cash Flow Analysis P.I.R. FUND (501)10/6/2016
Actual Projected Projected Projected Projected Projected Projected
2015 2016 2017 2018 2019 2020 2021
Working Capital Beginning Year 2,785,317 442,413 422,657 364,757 246,274 91,289 18,654
Revenues:
Property Taxes 1,260
Special Assessment Revenues - from levy 53,803 55,000 50,000 50,000 50,000 50,000 55,000
Special Assessment Revenues - Prepaid
County Grant 122,929
State Gas Tax 120,554
Interest 43,183 4,424 1,902 1,641 1,108 411 84
Bond Proceeds 5,361,851 3,800,000 7,700,000 4,300,000 4,800,000 4,200,000 4,300,000
Total Revenues 5,703,580 3,859,424 7,751,902 4,351,641 4,851,108 4,250,411 4,355,084
Expenditures:
C.I.P. Projects 6,338,523 2,505,000 5,678,800 3,365,300 3,290,300 2,220,000 2,245,000
C.I.P. Projects - Special Assm 1,310,000 2,064,000 900,000 1,500,000 1,885,000 1,885,000
Transfers for SA Debt collected thru Assm
Debt Service Transfers - 2010A - Imprv 61,358 64,180 67,002 69,824 80,794 83,045 69,238
Debt Service Transfers (prepaids to DS funds)
Debt Fund - Zion Special Assessments 22,482
Transfer Out - Bond Proceeds to Enterprise Funds 1,399,121
Transfer for Cottageville Park 225,000
Total Expenditures 8,046,484 3,879,180 7,809,802 4,470,124 5,006,094 4,323,045 4,334,238
Working Capital Year End 442,413 422,657 364,757 246,274 91,289 18,654 39,500
Total Projects Scheduled (CIP & SA) 6,338,523 3,815,000 7,742,800 4,265,300 4,790,300 4,105,000 4,130,000
WATER FUND - WORKING CAPITAL PROJECTION 10/6/2016
Actual Projected Projected Projected Projected Projected Projected
2015 2016 2017 2018 2019 2020 2021
Working Capital Beginning Year 73,581 (176,360) (100,308) 283,577 830,552 1,351,182 1,839,135
Revenues:
Operating Revenues 1,347,992 1,401,911 2,035,905 2,147,880 2,266,014 2,390,644 2,522,130
Other 166,245 165,235 172,272 179,661 187,418 195,564 204,116
Interest 2,555 0 0 0 0 0 0
Grants/Other Govt Funding
Gain on Sale of Asset
Trsansfer In - Bond Proceeds 496,275
Bond Issuance 2,200,000 1,700,000 1,550,000 1,760,000 1,500,000 1,500,000
Total Revenues 2,013,066 3,767,146 3,908,177 3,877,541 4,213,432 4,086,208 4,226,246
Expenditures:
Operation Expense 1,396,476 1,111,244 1,150,027 1,190,249 1,231,969 1,275,245 1,320,140
Other Exp - bond issuance-fiscal fee
Other Exp - int on current bonds 50,003 0 0 0
Other Exp - int on refunded bonds
Other Exp - int on 2009 bonds 21,350 19,725 17,887 15,963 13,900 11,600
Other Exp - int on 2012 bonds 12,529 11,629 10,729 9,829 8,929 7,979
Other Exp - int on 2013 bonds 16,431 15,431 14,381 13,281 12,181 11,081
Other Exp -est interest on Future Bonds 13,000 153,000 258,000 328,000 438,000
Equipment Replacement Items 35,000 222,000 0 0
Capital Improvements 376,710 2,270,000 1,700,000 1,550,000 1,768,000 1,510,000 1,500,000
Principal Bond payment
Principal Bond payment - refunded 180,000
Principal Bond pymnt - 2009 debt 50,000 50,000 50,000 55,000 55,000 55,000 60,000
Principal Bond pymnt - 2012 debt 40,000 45,000 45,000 45,000 45,000 45,000 50,000
Principal Bond pymnt - 2013 debt 50,000 50,000 50,000 55,000 55,000 55,000 55,000
Transfer for 2014A Debt Payment 17,800 17,800 17,800 17,800 17,800 17,800 17,800
Principal Bond pymnt - Future Debt 3,740 44,680 71,520 89,960 112,200
Transfer Out - Cottageville Park 37,500
Capital Lease (PW Facility) (1) 45,000 45,000 45,000 45,000 45,000 45,000 45,000
Total Expenditures 2,243,489 3,691,094 3,524,292 3,330,566 3,692,802 3,598,255 3,078,600
Change in available funds (230,423)76,052 383,885 546,975 520,630 487,953 1,147,646
Inventory change (16,182)
Bond Premium/Discount Exp (3,335)
Working Capital Ending Year (176,360)(100,308) 283,577 830,552 1,351,182 1,839,135 2,986,781
(1) Capital Lease moved to Storm Sewer - back to water fund in 2014
Rate History (water/sprinkler)
1984 $0.85
1993 $1.05
1997 $1.10
2000 $1.20
2005 $1.40
Per Utility Master Plan (10/07)
2008 $1.65
2009 $1.86
2010 $1.90
2011 $1.94/2.40 - not incr, left at $1.90
2012 $1.96 / 2.40
2013 $2.02 / 2.40
2014 $2.10 / 2.50
2015 $2.18 / 2.60
2017 Tiered Rate Structure Implemented
SEWER FUND - WORKING CAPITAL PROJECTION 10/6/2016
Actual Projected Projected Projected Projected Projected Projected
2015 2016 2017 2018 2019 2020 2021
Working Capital Beginning Year 116,280 385,285 575,986 664,282 1,247,100 1,797,676 2,444,650
Revenues:
Operating Revenues 2,172,278 2,496,600 2,917,804 3,078,283 3,247,589 3,426,206 3,614,648
Grants/Other Govt Funding
Other 150 20,000 20,000 20,000 20,000 20,000 0
Interest 2,270 963 1,440 1,661 3,118 4,494 6,112
Transfer In - Bond Proceeds 297,004
Bond Issuance 0 650,000 1,300,000 1,000,000 1,000,000 760,000 750,000
Total Revenues 2,471,701 3,167,563 4,239,244 4,099,944 4,270,707 4,210,700 4,370,760
Expenditures:
Operation Expense 519,685 589,319 609,053 629,484 650,634 672,533 695,207
MWCC Charges (3% inflation) 1,321,360 1,361,001 1,401,831 1,443,886 1,487,203 1,531,819 1,577,774
Other - Bond Issuance-fiscal fees
Interest Expense 39,084 26,575 24,463 22,187 19,825 17,200 14,300
Interest Expense - 2012 Debt 2,749 2,549 2,349 2,149 1,949 1,749
Interest Expense - 2013 Debt 9,318 8,719 8,119 7,519 6,919 6,319
Interest Expense - Future Debt 19,500 57,200 83,300 107,402 122,306
Equipment Replacement Items 33,600 531,000 0
Capital Improvements 106,249 762,000 1,300,000 1,025,000 1,053,000 760,000 750,000
Principal Bond payment (2009) 60,000 65,000 65,000 65,000 70,000 70,000 75,000
Principal Bond payment (2012) 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Principal Bond payment (2013) 30,000 30,000 30,000 30,000 30,000 30,000 30,000
Transfer for 2014A Debt Payment 17,800 17,800 17,800 17,800 17,800 17,800 17,800
Principal Bond payments Future Deb 0 0 43,333 130,000 196,600 263,200
Transfer Out - Cottageville Park 37,500
Capital Lease (PW Facility) (1) 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Total Expenditures 2,191,680 2,976,862 4,150,948 3,517,125 3,720,131 3,563,726 3,228,148
Change in available funds 280,021 190,701 88,296 582,819 550,575 646,974 1,142,611
Inventory change (9,424)
Bond Premium/Discount Exp (1,592)
Working Capital Ending Year 385,285 575,986 664,282 1,247,100 1,797,676 2,444,650 3,587,261
(1) Capital Lease moved to Storm Sewer - back in fund in 2014
Rate History
1983 $1.50
1989 $1.75
1991 $2.00
1993 $2.50
1999 $2.25 Rate DECREASE
2006 $2.50 rate increase
Per Utility Master Plan (10/07)
2008 $2.70
2009 $3.10
2010 $3.40
2011 $3.70 - act 3.60
2012 $3.75
2013 $3.90
2014 $4.10
2015 $4.30
Rates per 2016 Utility FMP
2017 $5.81
2018 $6.12
2019 $6.46
2020 $6.82
STORM SEWER FUND - WORKING CAPITAL PROJECTION
Projected Projected Projected Projected Projected Projected Projected
2015 2016 2017 2018 2019 2020 2021
Working Capital Beginning Year 508,676 755,174 1,171,790 1,459,343 1,684,310 898,580 1,137,846
Revenues:
Operating Revenues 799,306 799,306 799,306 799,306 799,306 799,306 799,306
Other 6,236 5,000 5,000 5,000 5,000 5,000 5,000
Interest 8,149 1,888 2,929 3,648 4,211 2,246 2,845
Transfer In - PY Cottageville Park Exp 282,119
Transfer In - Bond Proceeds 605,843
Bond Issuance 500,000 900,000 350,000 500,000 700,000 700,000
Total Revenues 1,701,653 1,306,194 1,707,235 1,157,954 1,308,517 1,506,552 1,507,151
Expenditures:
Operation Expense 135,296 138,002 140,762 143,577 146,449 149,378 152,365
Other - Bond Issuance-fiscal fees
Bond Interest - existing 27,901
Bond Interest - 2009 refunded bonds
Bond Interest - 2010 bonds 13,623 12,485 11,173 9,629 7,805 5,765
Bond Interest - 2012 bonds 5,281 4,881 4,481 4,081 3,681 3,281
Bond Interest - 2013 bonds 7,338 6,888 6,388 5,888 5,388 4,888
Interest Expense - Future Debt 15,000 41,000 48,700 60,200 76,700
C a p i t a l O u t l a y ( p e r E R P ) 000000
Cottageville Property purchase
Cottageville Park Storm Water Mgmt
Capital Improvements 752,892 561,000 1,026,000 471,000 1,592,000 710,000 700,000
2009 Principal Bond payment 125,000
2010 Principal Bond payment 70,000 70,000 70,000 70,000 75,000 80,000 80,000
2012 Principal Bond payment 20,000 20,000 20,000 20,000 20,000 20,000 20,000
2013 Principal Bond payment 20,000 20,000 25,000 25,000 25,000 25,000 25,000
Transfer for 2014A Debt Payment 14,334 14,334 14,334 14,334 14,334 14,334 14,334
Principal Bond payments Future Debt 0 0 33,333 93,333 116,667 150,001
Transfer Out - Cottageville Park 265,000
Capital Lease - PW Facility (1) 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Total Expenditures 1,455,424 889,578 1,419,683 932,986 2,094,247 1,267,287 1,030,633
Change in available funds 246,229 416,616 287,552 224,968 (785,731) 239,266 476,517
Inventory change 413
Bond Premium/Discount Exp (net) (144)
Working Capital Ending Year 755,174 1,171,790 1,459,343 1,684,310 898,580 1,137,846 1,614,363
(1) In 2012 this includes Water, Sewer & Storm Sewer transfers; in 2014 transfer returned to normal level
Rate History (per month)
1989 $4.75 per quarter
1991 $6.00 per quarter
1992 $2.50
1993 $3.00
1998 $3.20
1999 $4.00
2006 $4.50
2009 $5.00
10/6/2016
FACILITIES & BUILDINGS 10/6/2016
CAPITAL IMPROVEMENTS FUND (305)
Actual Projected Projected Projected Projected Projected Projected
2015 2016 2017 2018 2019 2020 2021
Working Capital Beginning Year 255,974 67,621 (265,588) (7,088) (465,123) (640,449) (661,651)
Revenues:
Interest 1,991 338 0 (35) (2,326) (3,202) (3,308)
Transfers from General Fund 125,000 100,000
Transfers from Enterprise Funds 400,000
Transfer from Real Estate Fund 128,697
Tax Levy (red per FMP)52,311 125,000 310,000 100,000 100,000 100,000 100,000
Total Revenues 182,999 650,338 410,000 99,965 97,674 96,798 96,692
Expenditures:
C.I.P. Projects 371,352 983,547 151,500 558,000 273,000 118,000 45,000
Transfer to General Fund
Total Expenditures 371,352 983,547 151,500 558,000 273,000 118,000 45,000
Working Capital Year End 67,621 (265,588) (7,088) (465,123) (640,449) (661,651) (609,960)
2016 Projects
2016 - T-In from General Fund 28,000 Fire Dept - Repl carpet
is to offset the cost of the PW 845,000 Public Works Garage Upgrade (total project $400K from Ent Funds)
Garage project 67,000 Activity Center - Multi-purpose Gym Improvements
17,547 Activity Center Lounge/Computer Lab/Library - tables and chairs
6,000 Activity Center - Harmony Hill Sound System
20,000 PW - garage openers
remove yellow items and put in 983,547
General Fund???
2017 Projects
15,000 Activity Center - dishwasher
11,500 City Hall Lobby Upgrade
25,000 PW Lunchroom
100,000 Activity Center Room/Gym Enhancements
151,500
2018 Projects
225,000 City Hall Lobby Upgrade
40,000 Police Dept - replace carpet
28,000 Fire Dept - Repl apparatus floor finish
105,000 Activity Ctr - replace gymnasium roof
80,000 Activity Center - Raspberry Room roof replacement
80,000 Activity Center - lower roof repl
558,000
2019 Projects
18,000 PW - overhead door repl
115,000 City Hall - roof repl
100,000 Activity Center - Former Historical Society Area
15,000 Activity Ctr - bathroom improvements
25,000 Activity Center - Raspberry Room Improvements
273,000
2020 Projects
58,000 City Hall - Replace carpeting
10,000 PW - repl wash bay roof
50,000 PW - garage roof repl
118,000
2021 Projects
45,000 Fire - Replace boilers
45,000