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Park System Capital Improvement Needs and FundingMemorandum Public Works Department To: Honorable Mayor and Members of the City Council From: Steven J. Stadler, Public Works Director 1 Copy: Mike Mornson, City Manager Date: July 31, 2013 Subject: Park System Capital Improvement Needs and Funding As you know, over the past couple years the Park Board has been focusing to large extent on how the City can address the problem of inadequate funding to improve or even sustain our parks' infrastructure. The Board is pleased and encouraged that City Council shares this concern. Further, that Council appears ready to act to reduce the problem by instituting the modest increase in the utility franchise fees and dedicating this new revenue to fund park improvements. The Park Board approved a supporting resolution, attached, at its July 15 meeting. Also attached is a 5 -year and 15 - year capital improvement plan for the park system. The capital improvement plan can be broken down as follows: Improvement Category 2014-2018 2019-2023 2024 —2028 Play Equipment $495,000 $180,000 0 Picnic Shelters $30,000 $570,000 $50,000 Warming Houses $120,000 $530,000 0 Other (lighting, tennis courts Drinking fountains) $183,000 $300,000 $495,000 TOTALS: $828,000 $1,580,000 $545,000 It is obvious that the new utility franchise fee increase alone will not fund this proposed capital plan; grant funds, additional park dedication fees from redevelopments or other funds will be required. However, the new utility franchise fees will nearly fund the planned 2014-2018 play equipment replacements. The average age of play equipment being replaced is 24 years. The Park Board and staff look forward to continuing the discussion of park system needs and the new proposed utility franchise fee revenue program at the Aug 5 joint meeting. CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA PARK BOARD RESOLUTION NO. 2013-001 RESOLUTION SUPPORTING NATURAL GAS AND ELECTRIC UTILITIES FRANCHISE FEE INCREASES TO FUND PARK SYSTEM IMPROVEMENTS WHEREAS, the City values its public park system in order to offer leisure time enjoyment and recreation for its residents, provide open green spaces and improve the City's overall quality of life, and WHEREAS, the Hopkins park system consisting of nine neighborhood parks and four community parks is in need of play equipment upgrades and other improvements, and WHEREAS, a sustainable park system requires a stable funding source coupled with timely maintenance, repair, replacement and upgrades to park amenities and infrastructure, and WHEREAS, a $0.50 per month city-wide gas and electric utility franchise fee increase will provide a substantial and stable funding source for park system improvements without overburdening homeowners, and WHEREAS, on a recently completed city-wide residential survey, residents provided a 73% favorable response when asked if they favored or opposed the gas and electric franchise fee increase for park improvements, and; NOW, THEREFORE, BE IT RESOLVED, that the Park Board of the City of Hopkins, Minnesota hereby supports instituting the aforementioned utility franchise fee increase dedicated to park system improvements and recommends that the Hopkins City Council approve the increase starting in 2014. Adopted by the Park Board of the City of Hopkins this 15th day of July 2013. Robert Hatlestad, Park Board Chair ATTEST: Steve Stadler, Public Works Director/Park Board Staff liaison PARK CAPITAL IMPROVEMENTS FUND (301) 07/26/2013 NEXT 15 YEARS NEXT YEARS Actual Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Working Capital Beginning Year 112,195 82,902 188,179 105,361 (44,265) (96,314) (94,903) (166,450) (410,144) (941,148) (1,038,082) (1,127,925) (1,400,463) (1,461,177) (1,773,712) (1,760,623) (1,722,142) Revenues: Taxes (from matured Park Bonds) (133) Interest 698 829 1,882 1,054 (1,329) (2,889) (2,847) (4,994) (12,304) (28,234) (31,142) (33,836) (42,014) (43,835) (53,211) (52,819) (51,664) Dedication fees 163,772 0 0 0 0 0 Joint Rec refunds 6,267 6,000 6,000 6,000 8,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 Franchise Fees (gas/elec) 85,300 85,300 85,300 85,300 85,300 85,300 85,300 85,300 85,300 85,300 85,300 85,300 85,300 85,300 85,300- Hennepin County Grant 150,000 Met Council - easememt/grant 50,000 300,000 Grants - Private Foundations 30,010 Donations - general 1,000 19,182 1,000 Donations - benches Total Revenues 245,338 476,278 94,182 92,354 89,971 86,411 88,453 86,306 78,996 63,066 60,158 57,462 49,286 47,465 38,089 38,481 39,636 Expenditures: C.I.P. Projects 264,781 45,000 170,000 235,000 135,000 80,000 160,000 330,000 610,000 160,000 150,000 330,000 110,000 360,000 25,000 0 50,000 Cottageville Property Acquisition 2,850 319,000 Skate Park commitment 7,000 7,000 7,000 7,000 7,000 7,000 0 Total Expenditures 274,631 371,000 177,000 242,000 142,000 87,000 160,000 330,000 610,000 160,000 150,000 330,000 110,000 360,000 25,000 0 50,000 Working Capital Year End 82,902 188,179 105,361 (44,285) (96,314) (94,903) (166,450) (410,144) (941,148) (1,038,062) (1,127,925) (1,400,463) (1,461,177) (1,773,712) (1,760,623) (1,722,142) (1,732,506) Friday, July 26, 2013 City of Hopkins, MN 197,000 CAPITAL IMPROVEMENT PLAN 2014 thru 2018 Skate Park Public Works: Parks 08-C/P-P003 PROJECTS BY YEAR 7,000 Cottageville Park - Play Equipment Project Name Department Project # Priority Project Cost Burnes Park - Warming House Public Works: Parks 13-C/P-PO40 n/a 2014 Oakes Park - Replace Picnic Shelter Public Works: Parks 13-C/P-PO41 Valley Park - Outdoor Lighting Public Works: Parks 08-C/P-P001 n/a 40,000 Skate Park Public Works: Parks 08-C1P-P003 n/a 7,000 Oakes Park - Play Equipment Public Works: Parks 08-CIP-PO16 n/a 100,000 Oakes Park -Drinking Fountain Public Works: Parks 13-C/P-PO38 n/a 10,000 Oakes Park - Lighting Public Works: Parks 13-C/P-PO72 n/a 40,000 Friday, July 26, 2013 Total for 2014 197,000 2015 Skate Park Public Works: Parks 08-C/P-P003 n/a 7,000 Cottageville Park - Play Equipment Public Works: Parks 11-C/P-P019 n/a 120,000 Burnes Park - Warming House Public Works: Parks 13-C/P-PO40 n/a 60,000 Oakes Park - Replace Picnic Shelter Public Works: Parks 13-C/P-PO41 n/a 30,000 Valley Park - Construct Storage Building Public Works: Parks 13-C/P-PO42 n/a 25,000 Total for 2015 242,000 2016 Skate Park Public Works: Parks 08-C/P-P003 n/a 7,000 Hilltop Park - Play Equipment Public Works: Parks 08-C/P-PO14 n/a 100,000 Burnes Park - Play Equipment Public Works: Parks 13-C/P-PO43 n/a 35,000 Total for 2016 142,000 2017 Skate Park Public Works: Parks 08-C/P-P003 n/a 7,000 Valley Park - Play Equipment Public Works: Parks 08-C/P-PO15 n/a 80,000 Total for 2017 87,000 2018 Park Valley - Play Equipment Public Works: Parks 08-C/P-P010 n/a 60,000 Burnes Park - Resurface Tennis Courts Public Works: Parks 08-C/P-POLI n/a 20,000 Oakes Park - Tennis Courts Public Works: Parks 13-C/P-PO44 n/a 20,000 Valley Park - Warming House Public Works: Parks 13-C/P-PO45 n/a 60,000 Total for 2018 160,000 GRAND TOTAL 828,000 Friday, July 26, 2013 City of Hopkins, MN CAPITAL IMPROVEMENT PLAN 2019 thru 2023 PROJECTS BY YEAR Project Name Department Project # Priority Project Cost 2019 Burnes Park - Lighting Public Works: Parks 13-C/P-P046 n/a 50,000 Cottageville Park - Picnic Shelter Public Works: Parks 13-C/P-P054 n/a 200,000 Harley Hopkins Park- Warming House Public Works: Parks 13-C/P-P056 n/a 30,000 Harley Hopkins Park - Lighting Public Works: Parks 13-C/P-P057 n/a 50,000 Total for 2019 330,000 2020 Central Park Tennis Courts Public Works: Parks 05-C/P-P202 n/a 20,000 Central Padk - Warming House Public Works: Parks 13-C/P-P050 n/a 400,000 Interlachen Park - Lighting Public Works: Parks 13-C/P-P059 n/a 50,000 Maetzold Field - Play Equipment Public Works: Parks 13-C/P-P062 n/a 60,000 Maetzold Field - Warming House Public Works: Parks 13-CIP-P063 n/a 80,000 Total for 2020 610,000 2021 Central Park - Play Equipment Public Works: Parks 13-CIP-P051 n/a 60,000 Elmo Park - Play Equipment Public Works: Parks 13-CIP-P055 n/a 60,000 Hilltop - Picnic Shelter Public Works: Parks 13-CIP-P058 n/a 40,000 Total for 2021 160,000 2022 Central Park - Lighting Public Works: Parks 13-CIP-P052 n/a 50,000 Intedachen Park - Warming House Public Works: Parks 13-CIP-P060 n/a 50,000 Oakes Park - Warming House Public Works: Parks 13-CIP-P064 n/a 50,000 Total for 2022 150,000 2023 Bumes Park - Picnic Shelter Public Works: Parks 13-CIP-P047 n/a 50,000 Central Park - Picnic Shelter Public Works: Parks 13-CIP-P053 n/a 100,000 Shady Oak Beach - Picnic Shelter Public Works: Parks 13-CIP-P066 n/a 80,000 Valley Park - Picnic Shelter Public Works: Parks 13-CIP-PO68 n/a 100,000 Total for 2023 330,000 GRAND TOTAL 1,580,000 Friday, July 26, 2013 City of Hopkins, MN CAPITAL IMPROVEMENT PLAN 2024 thm 2028 PROJECTS BY YEAR Project Name Department Project # Priority Project Cost 2024 Burnes Park - Drinking Fountain Public Works: Parks 13-C/P-PO48 n/a 15,000 Interlachen Park - Drinking Fountain Public Works: Parks 13-C/P-PO61 n/a 15,000 Valley Park - Drinking Fountain Public Works: Parks 13-C/P-PO69 n/a 15,000 Downtown Park - Lighting Public Works: Parks 13-C/P-PO70 n/a 50,000 Downtown Park - Drinking Fountain Public Works: Parks 13-C/P-PO71 n/a 15,000 Total for 2024 110,000 2025 Oakes Park - Tennis Courts Public Works: Parks 13-C/P-PO44 n/a 180,000 Burnes Park - Tennis Courts Reconstruction Public Works: Parks 13-C/P-PO49 n/a 180,000 Total for 2025 360,000 2026 Central Park Tennis Courts Public Works: Parks 05-C/P-P202 n/a 25,000 Total for 2026 25,000 2028 Paris Valley - Picnic Shelter Public Works: Parks 13-C/P-PO65 n/a 50,000 Total for 2028 50,000 GRAND TOTAL 545,000 Friday, Judy 26, 2013