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HomeMy WebLinkAboutIFAC Memo CIP 19-23 10.25 FireDATE:      October 25, 2017    TO:              Impact Fee Advisory Board     FROM:     Kristin Donald, Finance Director         SUBJECT:                   Recommendations to the Commission for the Impact Fee Capital Improvement  Plan (CIP) Schedules for Fiscal Years 2019‐2023  _____________________________________________________________________________________         Once again, Impact Fee Advisory Board needs to make recommendations on the Capital Improvement  Plan for the upcoming budgeted expenditure of Impact Fee money for the following:   Street Impact Fee Fund   Fire Impact Fee Fund   Water Impact Fee Fund   Wastewater Impact Fee Fund  In updating the schedules, we have the opportunity to remove items that have been completed or are  no longer needed, adjust project costs estimates, and add projects that are needed.  We drop the  current fiscal year (FY18) from the plan and extend the plan by a year, to encompass FY23.    Fire Impact Fee Fund– Attached is a staff‐recommended Fire Impact Fee CIP.    We have not made any  changes to the Fire Impact Fee fund plan. Station 4 is still unscheduled at this time as we finish the Fire  Master Plan and look at the needs of the current stations.  Items of Note:     Revenues have been updated to reflect the 5‐year average for Fire Impact Fee collections which  has an average change over that time of a 10% increase, see below for the trends in detail:            In conclusion, we’ll be looking to discuss these items with the Committee so that we can complete the  draft Capital Improvement Plans and bring them back for Committee approval.  Once approved by the  Committee, we will deliver them to the City Commission.  We have tentatively scheduled for Impact Fee  Funds:  Street Impact Fee   October 23 ‐ Impact Fee Advisory Committee reviews Street Impact Fee Schedules and  completes recommendations   November 13 – City Commission presentation and adoption of Street Impact Fee Capital  Improvement Plan  Fire Impact Fee   October 25 ‐ Impact Fee Advisory Committee reviews Fire Impact Fee Schedules and completes  recommendations   November 20‐ City Commission presentation and adoption of Fire Impact Fee Capital  Improvement Plan  Water and Wastewater   October 30 ‐ Impact Fee Advisory Committee reviews water and Wastewater Impact Fee  Schedules and completes recommendations   December 4 – City Commission presentation and adoption of Water & Wastewater Impact Fee  Capital Improvement Plans              Attachments:  Draft – Fire Impact Fee CIP ‐ FY19‐23    Fiscal Year Revenue Change 2011 194,000                     0% 2012 247,000                     27% 2013 406,000                     64% 2014 298,000                     ‐27% 2015 430,000                     44% 2016 348,000                     ‐19% 2017 328,043                     ‐6% 5‐Year Average 362,009                     10% Fire Impact Fee Revenue History Fire Impact Fee Capital Improvement PlanFinancial Summary Current YearFY18 FY19 FY20 FY21 FY22 FY23UnscheduledProjected Beginning Reserve Balance Dedicated to CIP 1,546,501$       1,858,751$           2,239,114$       2,638,494$      3,057,844$     3,498,161$     ‐$                    Plus:  Impact Fee Revenues Dedicated to CIP 362,250$          380,363$              399,381$          419,350$         440,317$        462,333$        ‐$                    Plus:  FIF07 Engine #4 ‐ Voter Approved Bond  Plus:  FIF06 Station #4 ‐ Voter Approved Bond  Less:  Scheduled CIP Project Costs (50,000)$          (4,600,000)$     Projected Year‐End Cash Dedicated to CIP 1,858,751$       2,239,114$           2,638,494$       3,057,844$      3,498,161$     3,960,494$     Assumptions Made for Revenue Estimates:Current YearFY18 FY19 FY20 FY21 FY22 FY23Estimated Annual Fire Impact Fee Revenues362,250$            362,250$                380,363$            399,381$           419,350$          440,317$            Estimated Annual Increase0.0% 5% 5% 5% 5% 5%Total Estimated Revenues362,250$            380,363$                399,381$            419,350$           440,317$          462,333$          Current Revenues Dedicated to CIP %100.0% 100.0% 100.0% 100.0% 100.0% 100.0%  Plus:  Increase Dedicated to Fire Capacity Expansion CIP0.0% 0.0% 0.0% 0.0% 0.0% 0.0%  Total % Dedicated to CIP100.0% 100.0% 100.0% 100.0% 100.0% 100.0%Total Estimated Revenues Dedicated to CIP362,250$            380,363$                399,381$            419,350$           440,317$          462,333$          ProjectedProjected$(50,000)$(4,600,000)FY18 FY19 FY20 FY21 FY22 FY23 UNSCHEDULEDFIRE IMPACT FEE PROJECTS  CIP PROJECT FUPROJ.DEPARTMENTPROJECT NAMEFY19UnscheduledFY23FY20FY21FY22Impact Fees FireFIF06FIRE IFFIRE STATION #4$3,900,000FIF07FIRE IFFIRE ENGINE, STATION #4$700,000$4,600,000Totals by DEPARTMENTSummary for Impact Fees Fire (2 items)Totals by year:$4,600,000FY23FY19FY20UnscheduledFY22FY21 CIP Project Fund Impact Fees Fire PROJECT NUMBER FIF06 DEPARTMENT FIRE IF PROJECT NAME FIRE STATION #4 FY19 FY20 Unscheduled $3,900,000 DESCRIPTION OF PROJECT The Fire Master Plan is almost complete and it does have station 4 as unscheduled as did the 2006 Master Plan. The plan for all Fire stations needs to be addressed before making additional plans. Portions of the City are located such that our response time exceeds four to six minutes for fire and medical emergencies. Land acquisition costs are not included in the proposed budget number. While the City currently owns the site on the southwest corner of 19th Avenue and Graf Street, which was identified as an ideal site for a station in 2006, that is subject to change as we examine all fire stations. ALTERNATIVES CONSIDERED The budget number associated with this project is the same as the cost of Fire Station 3. A smaller station may be an option for this project and looking at building in areas where the city currently owns property could also reduce the cost of construction. Delaying the building of the station is an option but would require an understanding that some areas are going to be subject to longer than normal response times. Other options to be evaluated from 2017 Fire Protection Master Plan. ADVANTAGES OF APPROVAL The completion of this project would enhance our ability to respond to growing parts of the community within a time frame that has been historically acceptable to the citizens of Bozeman. The additional station also has the potential to have a positive impact on our ISO rating and encourage additional growth in areas of the city. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating & Maintenance Costs: Impact Fees can not be spent on operations and maintenance costs. The City’s General Fund will bear the annual operating and maintenance expenses associated with this facility, estimated at $1,600,000, including all crew personnel. FUNDING SOURCES 75% Fire Impact Fees ($2,925,000), 25% Voter Approved Bond ($975,000.) New Replacement Equipment Project FY21 FY22 FY23 CIP Project Fund Impact Fees Fire PROJECT NUMBER FIF07 DEPARTMENT FIRE IF PROJECT NAME FIRE ENGINE, STATION #4 FY19 FY20 Unscheduled $700,000 DESCRIPTION OF PROJECT This project is the purchase of an engine and accompanying equipment for use out of new Fire Station 4. It will be necessary to have this engine at the Station when it opens. There is an estimated 12 month lead time in delivery of this type of equipment, thus this would need to be ordered a year before the opening of Fire Station 4. This estimated cost is for the apparatus and the majority of the equipment needed for service delivery. ALTERNATIVES CONSIDERED It may be valuable for ISO purposes to evaluate the purchase of a quint apparatus which is a Fire Engine with a ladder mounted on it that is smaller than Ladder 1. We also could use the 2006 Pierce reserve engine at Station 4. This would leave city with only one reserve fire engine to cover for 4 front line apparatus, a 1989 Pierce. The 2006 Pierce could require updates to make the apparatus serviceable as front line apparatus, but it is already 11 years into its current service life. There is also the option to purchase a used piece of apparatus. ADVANTAGES OF APPROVAL Purchase of this unit will adequately equip Station #4 for fire and other emergency responses. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating & Maintenance Costs: Impact Fees can not be used for annual operating and maintenance costs. The City’s General Fund will pay for the increased fuel, maintenance and insurance costs associated with this engine, estimated at $30,000 per year. FUNDING SOURCES 75% Fire Impact Fees ($525,000), 25% Voter Approved Bond ($175,000). New Replacement Equipment Project FY21 FY22 FY23