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Home My WebLink AboutCIP2013-20182013 CITYO CAPE G I R A R D E A U CAPITAL IMPROVEMENTS PROGRAM ADOPTED FISCAL 2013-2018 Adopted by the Cape Girardeau City Council in the State of Missouri on March 18, 2013. The program serves as a guideline for major one-time expenditures by the City. For standard, recurring expenses, please see the 2013-2014 Annual Budget. CITY Qf CAPE GIRARDEAU The Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri Dear Mayor and Council Members: INTRODUCTION City staff herewith presents a draft of the proposed Five -Year Capital Improvements Program. This program, for the period July 1, 2013, through June 30, 2018, is submitted in accordance with Article VI, Section 6.04 of the City Charter. A public hearing will be held on February 19, 2013 for the Capital Improvements Program. Following public input, the City Council may adopt the program by resolution at the March 4 or 18, 2013 Council meeting. In accordance with the City Charter, the Capital Improvement Program must be adopted on or before April 1, 2013. The Capital Improvements Program is a planning instrument that drives the evaluation and identification of capital infrastructure projects in need of renovation, repair and/or construction. Again, the document is divided into three categories: Transportation, Environment, and Capital Assets. The Transportation category consists of streets, parking lots, sidewalk/trails, etc. The Environment category consists of projects relating to water, wastewater, and stormwater. The Capital Assets category consists of projects relating to Information Technology, Facilities, and Fleet. The CIP relates these projected capital needs to the financial sources that will support their realization and the timeframe in which both the financing and work will take place. Capital improvements programming is the process by which capital projects are identified, prioritized, and selected and thus incorporated into the long range fiscal and strategic plans of the City. The CIP document is designed to report to the City Council, the public, City staff and other interested parties the capital management and strategies of the City. Each of the City's departments was given the opportunity to provide input in planning and implementation of the Capital Improvement Program. The funded projects included herein, as Program by Fiscal Year, are attainable through available revenue as shown in the documents. BACKGROUND The City Council, in 1983, formally considered and adopted a long-range Capital Improvements Program for the first time under the current Charter requirement. The CIP could then be referenced for decision related to the City Annual operating budget that is developed separately from the CIP. This budget process should provide a relevant approach to identifying and implementing important community -wide and neighborhood projects. The Capital Improvements Program should be considered as an investment in the future of the community. Some of the projects are financed over long periods of time, in effect spreading the cost of the projects across generations of users. In this sense, the choices made for how a project will be paid for is not only a question of financial capacity but a philosophical question as well. The selection and evaluation of capital projects is a difficult task that involves some speculation and the ability to make estimations which, to some extent, are based on historical perspectives. Perhaps the greatest benefit of having a capital improvement program is that the process focuses attention on improving or constructing the capital assists necessary for providing the services and facilities expected by the residents and businesses. This process over time, with the informed and involved citizens, has allowed our community to offer a sustainable enhanced quality of fife with the financial resources available and those new resources approved by the voters. FINANCING DESCRIPTIONS The City employs a combination of approaches to fund its capital projects. Capital projects are funded through a variety of methods, including long-term financing, user fees, grants assessments, tax levies, and reserve balances. Some projects are budgeted with multiple revenue streams. The Capital Improvements Program will not list all revenue sources of the City but only those source used for the projects included. The following is a brief description of the various revenue sources: Capital Improvement Sale Tax — Water: A%%, %%, or %Z% Sales Tax can be issued by the City for various types of public improvements. Such a tax requires approval by the electorate with a simple majority. For example, in November 1996, the voters adopted an additional %% sales tax effective January 1, 1997 for expansion of the water treatment plant and various other water improvements. The current Y4% sales tax for water improvements will expire in 2017. In 2011, this tax was extended to the end of 2037 to fund the future Wastewater Treatment Plant. Capital Improvement Sales Tax — Sewer: A Y4%, %%, or Yz% Sales Tax can be also be issued for sewer improvements. Such a tax requires approval by the electorate with a simple majority. In November 1996, the voters adopted an additional %% sales tax effective January 1, 2000 for elimination of combined sewer and various other improvements. The current Y4% sales tax for sewer improvements will expire at the end of 2019. Local, State and Federal Grants and Loans: The City has partnered with local agencies for them to participate in certain projects where there is mutual benefit to both parties. The partners and participation vary but are detailed in the funding reports and project descriptions. The City is eligible to submit grant applications to the State of Missouri for funds that they may have available either from their own State revenue sources or, in some cases, from revenue sources that they administer for various federal agencies. The City is also eligible to receive various Federal grants on a competitive basis from appropriate Federal agencies. This could include the Environmental Protection Agency as it relates to wastewater improvements; the Federal Highway Administration which administers and distributes funds from the Federal Gasoline Tax through the Surface Transportation Program — Urban; or the Federal Aviation Administration for airport improvements. Federal funds may include special appropriations related to specific projects or events. Most of these funds, however, are now administered by the State through related State agencies. Transportation Trust Fund (TTF): Pursuant to Sections 94.700-94.755 of the State Statues, the voters of the City of Cape Girardeau approved a'/z% sales tax for transportation purposes for a period of five (5) years four (4) times. The Transportation Trust Fund 3 (TTF-3) program was approved in August 2005, and the tax went into effect January 1, 2006. The tax expired December 31, 2010, however, funding is still available for the completion of the projects listed in this initiative. To continue the Transportation Trust Fund program, the voters of the City of Cape Girardeau approved a''/z% sales tax on August 3, 2010. The tax went into effect January 1, 2011 and will expire December 31, 2015. The revenues from this source are placed into a separate Transportation Trust Fund and will be used for the specific projects approved. Motor Fuel Tax (MFT): The Motor Fuel Tax fund provides for the receipt and disbursement of revenues the City receives as its portion of the State Gasoline Tax, State Motor Vehicle Licensing Fees, and State Motor Vehicle Sales Tax. The revenues from this source can be used for capital improvements, as well as annual operating and maintenance expenses as they relate to improvements on the City's streets. Parks and Stormwater Sales Tax (PRS): Pursuant to Section 144.032 of the Sate Statutes, the voters approved a %¢ tax for parks and stormwater projects. The tax was approved on April 8, 2008 and went into effect October 1, 2008. This '/¢ sales tax is made up of a %0 sales tax that will sunset in ten (10) years, September 30, 2018, and a %0 sales tax for operations with no sunset Enterprise Funds — Water: The City operates several businesses, or enterprises, that generate revenues for services provided to the citizens and to businesses. One important enterprise that the City acquired from Ameren in 1992 was the potable water system. Operation of the system, maintenance, construction and improvement of the water system has most of its funding coming from monthly fees charged for water used by the end customers. The City has taken advantage of low interest loan programs available through the Department of Natural Resources and the sale of bonds to fund large capital projects that are paid off over time. Like any business, water rates have to be carefully evaluated each year to make sure the income from water sales cover the operating costs, debt service and accounts for depreciation and the growth needs of the system. Enterprise Funds — Sewer: Another business, or enterprise, the City operates that generates revenue for services provided to the citizens and to businesses is the sanitary sewer system. Operation of the system, maintenance, construction and improvement of the sanitary sewer system has most of its funding coming from monthly fees charged for sewer usage based on the customer's water usage. The City also charges connection fees for new customer's connection to the system. The City has taken advantage of low interest loan programs available through the Department of Natural Resources and the sale of bonds to fund large capital projects that are paid off over time. Like any business, sewer rates have to be carefully evaluated each year to make sure the income from sewer service cover the operating costs, debt service and accounts for depreciation and the growth needs of the system. Enterprise Funds - Solid Waste: Another business, or enterprise, the City operates that generates revenue for services provided to the citizens and to businesses is the solid water service or trash service. This service includes weekly curbside trash pick up, weekly recycling pickup, the transfer station, the recycling drop off center, special collections, recycling drop off points around the City, the annual leaf pick up program and a leaf drop off site and more recently an electronic recycling program. Numerous one time specials programs are include such as tire recycling, household hazardous waste and others. Maintenance of the equipment needed to provide all these services, repair and maintenance of all the facilities and the construction of new facilities has most of its funding coming from monthly fees charged for solid waste service. The City has taken advantage of the sale of bonds to fund large capital equipment purchases and projects that are paid off over time. Like any business, trash rates have to be carefully evaluated each year to make sure the income from solid waste service cover the operating costs, debt service and accounts for depreciation and the growth needs of the system. Casino Revenue : The gaming revenue from IOC began to be paid to the City in November of 2012. These revenues have been projected to generate approximately $3,300,000 per year. The City Council's plan is to use 40%- 60% of this yearly revenue for Capital Improvement projects. The Riverfront Development Fund (RDF) is also generated by the gaming revenue. In FY13-14, it is assumed that 70% of the total fund will be used for capital improvement projects. In FY14-18, it is assumed that 80% of the total fund will be used for capital improvement projects. Miscellaneous/Special Assessments: This category provides for the consideration of special assessments which are used for public improvements affecting specific areas. The total, or a portion of the cost, of an improvement is divided among property owners who benefit from the project. This type of funding can be used for diverse improvements including streets, water, stormwater, sanitary sewer or sidewalk improvements. It should be noted, however, that the initial funding of special assessment projects must be borne by the City from available revenue sources, with the special assessment "costs" recovered afterwards, typically over a period of ten years through special tax bills paid by the benefitting property owners. Fire Sales Tax: Pursuant to Section 321.242 of the State Statutes, the voters of the City of Cape Girardeau approved a Y4% sales tax for operation of the Municipal Fire Department, Police Department and for capital improvements related thereto on June 8, 2004. The tax went into effect October 1, 2005 with half of the tax (%%) expiring on December 31, 2014 and the other %% with no sunset. Undetermined: This category denotes funds that are needed but not yet available. The projects with this designation can not be completed until an existing revenue source can be made available or a new revenue source created. PROGRAM DESCRIPTIONS The major program areas include Transportation, Environment, and Capital Assets. These major categories contain the following types of projects: TRANSPORTATION: The projects in this category provide for the construction and maintenance of public streets, parking lots, airport runways, sidewalks/trails, and other necessary improvements within the City. It may also include projects outside the current City boundaries in areas that are likely to be annexed into the City or to provide for orderly growth and development. ENVIRONMENT: These projects provide for the preservation, restoration, and care of the environmental resources of the City, including water, wastewater, solid waste, and stormwater services. CAPITAL ASSETS: The projects under this area provide for the necessary maintenance and upgrades and/or replacement to city -owned information technology equipment, facilities, and fleet. In order to be more efficient, the City must keep up with current IT needs. With certain efficiencies, the City may be to offer better customer services and/or decreased personnel costs. PROGRESS ON IMPROVEMENTS IN 2012-2013 The City Council set a course of action for staff in March 2012 with the adoption of the 2012-2017 Capital Improvements Program. The following projects have either been completed or will be substantially completed by the adoption of this plan and therefore will not be included in this plan for 2013-2018. Streets Sidewalks/Trails 2012 Street Curb and Gutter Repair 2012 Asphalt Overlay Big Bend Lighting Downtown Crosswalks Broadway Corridor Veterans Memorial Drive Phase 1 Main Street Overlay Lexington/Rte W Intersection Main Street Lighting Parking Lots 2012 Sidewalk Ga Kingsway Sidewalk Gap- Storey's to Janet Trail Evaluation and Master Plan Cape LaCroix Phase 1 Trail Improvements - Trail Head, Signage, and new site amenities Stormwater Broadway Parking Lot Paved Shawnee Community Center Lot Wastewater Whitener Detention Basin Downtown Stormwater Improvements Water Wastewater Treatment Plant- Under Construction IT Continuing to implement Integrated Software Package Network and Virtual Server Storage Re lace/Virtualize GEMS servers virtual system backup Facilities Monitor Replacement C4 Hall Safety Projects- Chimney Air Traffic Control Tower Improvements Ca aha Master Plan Ca aha Park Phase 1 Maintenance Building Improvements Arena- New Sign Marquee Ceiling Tile replacement at Arena Shawnee Park Improvements Demolish Old CVB Warning Sirens Space Deign for Police Station Arena Park fencing Replaced Bullet proof glass at court PROPOSEDIMPROVEMENTS The total Capital Improvements Program included herein includes a total of $67,922,776 projects which are funded from the various revenue sources. Funded Projects This year Transportation Sales Tax 4, Capital Improvement Sales Tax- Water, and Sewer Bond/Capital Improvement Sales Tax- Sewer provide the highest revenue sources for projects. Unfunded Projects The Contingent Program is a program of currently unfunded projects. This year all of the unfunded project have been run through a ranking matrix and have been prioritized. This will be helpful if additional funding or grants become available. The Contingent Program shows that there is approximately $150,000,000 shortfall in funding. The data shows the importance of the continuation of existing sales tax revenues, ie. Transportation Trust Fund and Parks/Stormwater Sales Tax. Also, notice the Facilities unfunded needs of nearly $42,000,000. It is important that we continue to work on a Strategic Funding Plan to address these unfunded needs. CONCLUSION The Capital Improvement Program shows that there are many necessary projects to be completed in the City of Cape Girardeau. However, only a portion of the projects have an identified funding source. The Capital Improvements Program proposed herein is a progressive program. The implementation of this program will allow for the creation of new job opportunities, an increase in revenue to private businesses, opportunities for new businesses, existing business expansions, an increase in tax revenues to all taxing jurisdictions, and the strengthening of the quality of life in the City of Cape Girardeau and the surrounding area. It is hoped that this plan will focus attention on community goals, needs and capabilities, reduce scheduling problems and conflicting or overlapping projects, maintain a sound and stable financial program, enhance opportunities for participation in federal or state funded programs, and achieve the highest public benefit from the expenditure of City revenue. This year the City completed a Master Facility Plan in order to inventory, to review the condition and to identify the various needs and priorities of all City Facilities. These needs were prioritized through a matrix and resulted in the prioritization of Police Station, Transfer Station, and City Hall being the more urgent needs. When put in the context of the rest of the capital needs, it is apparent that facilities are the area of greatest need for added investment when comparing the existing Programmed percentage to Contingent percentage. This is the main reason that it is recommended placing the most emphasis and funding in the Facility fund. The Charter requires an annual review and revision of the Capital Improvements Program which assures that the Program remains responsive to changing demands, priorities, and available revenues. This Program has successfully identified projects, moved them along in priority through a public process and helped locate and secure funding sources that lead to the completion of projects for the betterment of our community. The final plan should be regarded as a sound, fiscally responsible working document that can and will be implemented through the annual budget appropriation process of the City Council, support from the citizens of the city of Cape Girardeau for appropriate revenue sources, and diligent action by the City staff. Respectfully submitted, Kelly Green, PE John R. Richbourg Scott A. Meyer Assistant City Manager Finance Director City Manager CITY Qf CAPE GIRARDEAU CIP FISCAL 2013-2018 Transportation 3,854,000 Program Funding Source $ 13,279,000 TTF4 $ 3,284,000 TTF3 $ 1,775,000 Casino and RDF $ 260,000 PRS $ 4,836,049 Grants $ 296,000 Other Contingent Potential Funding Source $ 9,979,235 RDF $ 22,857,860 GRANT $ 37,291,413 TTF5 $ 372,500 PRS $ 589,500 PRS2 $ 10,512,196 Sewer Bond $ 2,650,000 Storm $ 1,265,000 C $ 15,244,000 Water Contingent Potential Funding Source $ 3,854,000 PRS2 $ 785,000 Sewer CIST $ 350,000 Grant $ 23,946,729 Water CIST IT Program Funding Source $ 686,000 General Fund Contingent Potential Funding Source $ 2,344,042 Undetermined $ 2,568,000 $ 125,000 $ 984,500 $ 15,000 $ 3,495,825 Contingent $ 19,060,365 $ 8,837,312 $ 12,808,350 $ 30,000 $ 1,460,350 Program $ 6,647,206 Contingent 131 Fire Potential Funding So Future Funding Sot Replacement Fund/PRS/Fire Potential Funding CITY ( CAPE GIRARDEAU CIP FISCAL 2013-2018 Transportation Program Contingent $ $ Total 23,730,049 71,090,508 Environment Program $ 29,671,196 Contingent $ 28,935,729 ---------------------------------------------------------------------------- Stormwater Program $ 2,650,000 Contingent $ 3,854,000 Wastewater Program $ 11,777,196 Contingent $ 1,135,000 Water Program $ 15,244,000 Contingent $ 23,946,729 Assets Program $ 14,521,531 ----------- -------Contin---- -----------------------__$_ -------9,66 49,663,550 ,550 IT Program $ 686,000 Contingent $ 2,344,042 Facilities Program $ 7,188,325 Contingent $ 42,196,377 Fleet Program $ 6,647,206 Contingent $ 5,123,131 f,� Road 621 ZZ G AUTA46 H jir Peon 0 N Q d K N 2 'o' V �` r) --C 9oz Aemy6iH Rjunoo uoog m 8lEpeco o,.., , N Y 9 > o aa y ✓t—_,d p p N Q N y 1� # 1n WOWpeqj 1 o r +t4Z Peo21 Alun o 'o v a a `9,oPo WCo peoa RyunoU bEq Peon?J4. a° occo _ c�CL 0 W cu a Count' 8 u ls ' U co c■ M' a$ o K e� LL c i � 8 V1� f,� Road 621 ZZ G AUTA46 H jir Peon 0 N Q d K N 2 'o' V �` r) --C 9oz Aemy6iH Rjunoo uoog m 8lEpeco o,.., , N Y 9 > o aa y ✓t—_,d p p N Q N y 1� # 1n WOWpeqj 1 o r +t4Z Peo21 Alun o 'o v a U O N 0 U J O N 0 U Pa 0 F - 0 E Z m E 0 O E � O C b 0 N [ a J U C c W v `a �i y 3a z@ Y. 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