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HomeMy WebLinkAbout11-19-18 City Commission Packet Materials - C4. Adopt the Fire Impact Fee Fund CIP for FY 2020-2024 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director SUBJECT: Adoption of the Fire Impact Fee Fund Capital Improvement Plan (CIP) for FY20-24. AGENDA ITEM TYPE: Consent MEETING DATE: November 19, 2018 RECOMMENDATION: Adopt the Fire Impact Fee Fund Capital Improvement Plan (CIP) for FY20-24. BACKGROUND: Each year, the City Manager is required to prepare a 5 Year Capital Improvements Plan and submit it to the Commission by December 15th. The City’s Impact Fee Advisory Committee (IFAC) met on November 8, 2018 to review and make recommendations for the planned expenditures of Fire Impact Fees. The Advisory Committee approved the recommended plan. Relationship to the Strategic Plan- • This year we worked towards item 7.1 b -Create a Culture of Innovation by changing our CIP database system for project tracking and plan development. We are now using our city-wide budgeting system’s project module for all CIP items. This will make it easier to merge approved projects into the recommended budget, begin tracking projects in their initial stages, and give us increased project cost reporting. The change has resulted in a different report “look-and-feel,” and we are working to evolve and refine how the CIP reports appear. 33 • We are also recommending that we continue to innovate the plan for next year by increasing the CIP threshold from its current level of $10,000 to a new minimum level of $25,000. Currently, the $10,000 threshold causes many maintenance and other operational budget items to be included in the capital plan. For the FY21 to FY25 CIP we recommend using a $25,000 threshold. This will align us with best practices and allow us to make better capital decisions by focusing on true capital items and less maintenance and operational expenses. UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. If the Commission is does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY20. Report compiled on: November 9, 2018 Attached: Fire Impact Fee Fund CIP Section 34   FIRE IMPACT FEE FUND FINANCIAL SUMMARY  Financial Summary Current YearFY19 FY20 FY21 FY22 FY23 FY24UnscheduledProjected Beginning Reserve Balance Dedicated to CIP 2,105,133$      2,467,383$         2,871,517$      3,287,775$     3,716,520$    4,158,128$    ‐$                   Plus:  Impact Fee Revenues Dedicated to CIP 362,250$         404,134$            416,258$         428,746$        441,608$       454,856$       ‐$                   Less:  Scheduled CIP Project Costs ‐$                 ‐$                    ‐$                 ‐$                ‐$               ‐$               (5,200,000)$   Projected Year‐End Cash Dedicated to CIP 2,467,383$      2,871,517$         3,287,775$      3,716,520$     4,158,128$    4,612,985$    Assumptions Made for Revenue Estimates: Current YearFY19 FY20 FY21 FY22 FY23 FY24Estimated Annual Fire Impact Fee Revenues 392,363$             392,363$                 404,134$            416,258$           428,746$          441,608$             Estimated Annual Increase 0.0% 3% 3% 3% 3% 3%Total Estimated Revenues 392,363$             404,134$                 416,258$            428,746$           441,608$          454,856$           Current Revenues Dedicated to CIP % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%  Plus:  Increase Dedicated to Fire Capacity Expansion CIP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%  Total % Dedicated to CIP 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%Total Estimated Revenues Dedicated to CIP 392,363$             404,134$                 416,258$            428,746$           441,608$          454,856$           ProjectedProjected$‐$‐$‐$‐$‐$‐$(5,200,000)FY19 FY20 FY21 FY22 FY23 FY24 UNSCHEDULEDFIRE IMPACT FEE PROJECTS 35   FIRE IMPACT FEE FUND PROJECT SUMMARY  All projects are unscheduled     36   FIRE IMPACT FEE FUND DETAIL BACKGROUND Our Fire Master Plan, which just recently has been adopted, proposed relocation of Station 1 and Station 2 to handle capacity expansion rather than build station 4.  Currently, the City is undergoing an impact fee study where the possibility of impact fee funding could be used. For this reason, the station 4 and vehicle will remain unscheduled. Below is the last five years of impact fee revenue and the average:  CAPITAL PLAN SUMMARY Fire Station 4 and engine are unscheduled     $298,000 $430,000 $348,000 $328,043 $599,365 $400,682  $‐ $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,0002014 2015 2016 2017 2018 5‐YearAverageFire Impact Fee Revenues37 Unscheduled Project NameUnscheduled Project Description  Amount Project #Fire Station Construction / Expansion / RelocationThe Fire Master Plan is completed and schedule for final adoption on November 6, 2017. The new Master Plan includes a comprehensive review of current station locations and the capacity to meet the current needs of the city along with recommendations for new fire stations. City staff will be evaluating the Master Plan recommendations during the next 12 months and formulating a plan to rehab / relocate / construction new fire stations to address the growth in the City.                          4,500,000 FIF06Fire Department Response ApparatusThe Fire Master Plan is complete and scheduled for final adoption on November 6, 2017. The new Master Plan includes a review of resource deployment, unit responses, and unit availability. The Fire Department will be evaluating these results to determine future needs of the department from a response and deployment model. This could include potential outcomes of purchasing additional apparatus, ranging from SUVs to Fire Engines to Ladder Trucks to handle the city’s emergency response load.                             700,000 FIF07Total Fire Impact Fee Unscheduled5,200,000                         UNSCHEDULED38