HomeMy WebLinkAboutApprove uniform Application for 2.135 Million State Loan for Gas Remediation System at Landfill_8 Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Administrative Services Director
SUBJECT: Approval of the City Manager’s Signature on the Uniform Application for $2.135 Million State Loan for Design and Installation of a Gas Remediation System at the Story
Mill Landfill.
MEETING DATE: March 3, 2014
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Approve City Manager’s Signature on the Uniform Application for
$2.135 Million Loan for Design and Installation of a Gas Remediation System at the Story Mill
Landfill.
BACKGROUND: During the decomposition of refuse at a landfill, numerous gases such as
methane and a wide range of VOCs are produced through biological and chemical
decomposition. In October of 2012, the City, as part of ongoing monitoring efforts, detected
several volatile organic carbon compounds (VOCs) in the soil gas at the Story Mill landfill
boundary. Subsequent investigation indicated VOCs may be migrating off the landfill. In addition, low levels of VOCs have been detected in the groundwater near the landfill. To
effectively address remediation of VOCs, a gas remediation system is needed at the landfill.
The system would be designed to sever the pathway of current and future gasses from moving
off-site, potentially into Bridger Creek and surrounding wetlands. At this time, we have no reason to believe VOCs have migrated into adjacent waterways – the purpose of the loan is to ensure such migration does not occur. The Montana Department of Environmental Quality
(DEQ) is currently working with the City in a Corrective Measures process that will identify the
exact technology to be used to bring about the desired result.
After several conversations with Montana Department of Natural Resources and Conservation (DNRC), we believe the State’s Revolving Loan program can provide a 20-year loan for this
remediation system at 3% annual interest. The State’s Revolving Loan program was capitalized
by the U.S. Environmental Protection Agency (EPA) to fund water quality protection projects
for wastewater treatment, nonpoint source pollution control, and watershed and estuary management. The attached application and financial statements are required to be submitted in order to move forward with the financing.
We estimate that the full costs of the system construction, including required loan reserves, will
be $2.135 million. Because the landfill no-longer operates or generates revenue, the City needs to identify another funding source to both secure the loan and make the annual payments, estimated to be $140,000/year.
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Securing the Loan: A landfill gas remediation system would protect local water resources
from potential gas migration, and would support the first stated purpose and intent of the City’s
Stormwater Utility (BMC 40.04.010.A.1) “Protect and enhance the water quality of Bozeman Creek, the East Gallatin River, water bodies, groundwater and wetlands in a manner pursuant
to an consistent with the Clean Water Act of 1972 and the US EPA Phase II Stormwater
Regulations.” This application proposes the City’s Stormwater Fund secure the loan. In doing
so, we will be required to dedicate either Stormwater Rates/Fees, a portion of taxes from the
General Fund, or a combination of both each year to repay the loan.
Annual Payments: We suggest that the Fiscal Year (FY) 2015 budget be prepared with a
$140,000 General Fund tax levy to make the payment. This would equate to approximately 1.65
mills/year – or, $6.12 annually to the median valued home.
Future Steps, if Loan Application is Approved: There are at least two additional points of
Commission action and public comment if we are approved and proceed with the loan:
1. Adoption of a Reimbursement Resolution for the preliminary engineering work related to the
project. (Estimated late March 2014) 2. Adoption of a Resolution Authorizing the Loan and Fixing its Form and Details. (Estimated Summer 2014)
UNRESOLVED ISSUES: There are no unresolved issues that are preventing submission of the
application.
ALTERNATIVES: While not recommended, alternative courses of action include: Do not
submit the application. Find an alternative funding source for the Remediation System (not the
State Revolving Fund program). Submit the application based on an increase in Stormwater
Rates for the coming year. Submit the application for only a fraction of the costs of the system.
FISCAL EFFECTS: There are no immediate effects in submitting the application. If a loan
were to be approved, the City would borrow up to $2.135 Million for the design and construction
of the Remediation System, as identified in the DEQ Corrective Measures process. The City
would be required to repay approximately $140,000/year over 20 years. 1. If done through an annual tax levy transferred to the Stormwater Fund, the median homeowner would contribute approximately $6.12/year in property taxes, beginning in
FY2015 (recommended).
2. If done through an increase in Stormwater Assessments, our existing assessment of
$1.75/month per 5/8” meter would need to go to $2.65/month (with proportionate
increases to larger meters) in FY2015. Regardless of how the annual payment is made, until this loan is paid off, it will be considered a
debt obligation of the City’s Storm Water Fund.
We anticipate that the costs of operating the gas remediation system (electricity, monitoring, etc.) will be paid by either the General Fund or the Landfill Post-Closure Monitoring Fund.
Attachments: 2013 Uniform Application, pages 33-44, plus Audited Financial Statements
Report compiled on: 2/20/2014
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UNIFORM APPLICATION FORM FOR MONTANA PUBLIC FACILITY PROJECTS
(Please type or print legibly)
SECTION A - CERTIFICATION
To the best of my knowledge and belief, the information provided in this application and in the attached documents
is true and correct.
Name (printed): CHRIS KUKULSKI
Title (printed): CITY MANAGER
Chief Elected Official or Authorized Representative
Signature:
Date:
SECTION B - SUMMARY INFORMATION
1. NAME OF APPLICANT(S): CITY OF BOZEMAN
2. TYPE OF ENTITY: MUNICIPAL GOVERNMENT
3. FEDERAL TAX ID NUMBER: 81-6001238
4. TYPE OF PROJECT: LANDFILL REMEDIATION SYSTEM
5. SENATE AND HOUSE DISTRICTS: Senate 33/House 66_________________________________________
5.a NAMES OF SENATOR(S) AND REPRESENTATIVE(S): Sen. Phillips, Rep. Pomnichowski
6. POPULATION SERVED BY PROJECT: 38,695
6.a NUMBER OF HOUSEHOLDS SERVED BY PROJECT: 12,781
7. DUNS Number (for CDBG applicants only): ____N/A___________________________________________
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CHIEF ELECTED OFFICIAL OR AUTHORIZED REPRESENTATIVE:
Chris Kukulski
(Name)
City Manager
(Title)
PO Box 1230
(Street/PO Box)
Bozeman, MT 59771
(City/State/Zip)
(406)582-2306 (406) 582-2344
(Telephone) (FAX No)
ckukulski@bozeman.net
(E Mail address)
10. PROJECT ENGINEER/ARCHITECT: ***To Be Determined***
(Name of Engineer)
Request for Qualifications closes
(Name of Firm)
February 21, 2014
(Street/PO Box)
(City/State/Zip)
(Telephone) (FAX No)
(E Mail address)
12. LEGAL COUNSEL: Greg Sullivan
(Name)
City Attorney
(Title)
PO Box 1230
(Street/PO Box)
Bozeman, MT 59771
(City/State/Zip)
(406) 582-2311 (406) 582-2344
(Telephone) (FAX No)
gsullivan@bozeman.net
(E Mail address)
14. CLERK/CHIEF FINANCIAL OFFICER: Anna Rosenberry
(Name)
Administrative Services Director
(Title)
PO Box 1230
(Street/PO Box)
Bozeman, MT 59771
(City/State/Zip)
(406) 582-2325 (406) 582-2344
(Telephone) (FAX No)
arosenberry@bozeman.net
(E Mail address) 9. PRIMARY ENTITY CONTACT PERSON:
Craig Woolard
(Name)
Public Works Director
(Title)
PO Box 1230
(Street/PO Box)
Bozeman, MT 59771
(City/State/Zip)
(406) 582-2315 (406) 582-2263
(Telephone) (FAX No)
cwoolard@bozeman.net
(E Mail address)
11. GRANT/LOAN ADMINISTRATOR:
N/A
(Name)
(Title)
(Street/PO Box)
(City/State/Zip)
(Telephone) (FAX No)
(E Mail address)
13. BOND COUNSEL: Dan Semmens
(Name)
Dorsey & Whitney, LLP
(Title)
125 Bank Street, STE 600
(Street/PO Box)
Missoula, MT 59802
(City/State/Zip)
(406) 721-6025 (406) 543-0863
(Telephone) (FAX No)
Semmens.dan@dorsey.com
(E Mail address)
15. ACCOUNTANT: Brian LaMeres
(Name of Accountant)
Controller, City of Bozeman
(Name of Firm)
PO Box 1230
(Street/PO Box)
Bozeman, MT 59771
(City/State/Zip)
(406) 582-2335 (406) 582-2344
(Telephone) (FAX No)
blameres@bozeman.net
(E Mail address)
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16. BRIEF PROJECT SUMMARY: (Refer to instructions and examples)
Historical Information - The city’s Landfill, located between Story Mill and McIlhatten Road, was operated
from 1970 until 2008. The landfill handled refuse in 2 separate cells: the unlined cell was utilized from 1970 –
1995; the lined cell was utilized from 1995-2008.
Problem - During the decomposition of refuse at a landfill, numerous gases such as methane and a wide
range of VOCs are produced through biological and chemical decomposition. In October of 2012, the City, as
part of ongoing monitoring efforts, detected several volatile organic carbon compounds (VOCs) in the soil gas
at the landfill boundary. Subsequent investigation indicated VOCs may be migrating off the landfill. In
addition, low levels of VOCs have been detected in the groundwater near the landfill. To effectively address
remediation of VOCs, an engineering remediation system is needed at the the landfill. The City requests SRF
funds to design and construct this system. A remediation system at the landfill will protect public health by
remediating the possible migration of VOCs from the landfill. And because groundwater flows from the landfill
down gradient toward Bridger Creek, the migration of VOCs from the landfill also represents a potential risk to
Bridger Creek and surrounding wetlands that support viable fish and wildlife populations.
Proposed Solution - The City is proposing to install a remediation system to sever the pathway of current
and future gasses from moving off-site, potentially into Bridger Creek and surrounding wetlands. The DEQ is
currently working with the City in a Corrective Measures process that will identify the exact technology to be
used to bring about the desired result.
SECTION C - FINANCIAL INFORMATION
1. ESTIMATED TOTAL PROJECT COST: $2,135,000
2. PROPOSED FUNDING SOURCES (List loans and grants from same funding source separately) (Refer to the
instructions and examples):
Source Type of Funds Amount Status of Commitment Loan Rates and Terms
State Revolving
Loan
Loan
20 yrs; 3.00% fixed
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3. FUNDING STRATEGY NARRATIVE
Funding Strategy Narrative (Complete and attach)
(Refer to the instructions. Answer each question individually.)
a. What are the conditions on the use of each source of funds?
The State Revolving Loan Funds must be used for approved Project elements. We anticipateproject consultants, design, engineering, construction, loan reserves, administrative costs,
and costs of issuance being funded with the loan.
b. When will each source of funds listed be available (month and year)? It is anticipated that Loan Funds will be available after July 1, 2014.
c. Is there any additional information on the level of commitment for each source of funds listed?
None.
d. How will funding sources be coordinated with each other? Because there is only one source of funds, there is no coordination required.
e. Will interim-loan funds be required as part of the project? If yes, how will they be used and
coordinated with other funding sources? Interim funds are not required. We will be utilizing a Reimbursement Resolution, anticipated
to be adopted in March 2014, that will allow the City to reimburse itself from Loan Proceeds for the preliminary engineering and consulting work completed prior to funds being available.
f. What other sources of funds from public and private sources have been considered for this project?
Explain why they are not being pursued or used for this project. A small number of other financing options were considered. The terms of this loan are felt to be the most advantageous to the
City in order for the project to proceed.
g. If a particular source of funding is not obtained, how will the applicant proceed? Explain how the
funding strategy will change if a particular source of funding is not received. This project is not
dependent on multiple funding sources.
h. What is the level of local financial participation in the project and is that level the maximum that the
applicant can reasonably provide? It is expected that the City’s General Fund will be re-paying
the full amount of this Loan’s principal and interest due, via dedicated tax revenues transferred to the City’s Storm Water Utility each year. We would evidence this dedication of
revenues in our annual budget resolution, and in our tax levy resolution each year. These revenues would be deposited to the Storm Water Fund.
With a transfer of tax revenue, we are not planning on needing to increase customer storm
water rates for debt payments (see page 39 & 44). I was unsure how to express this in the residential rate calculations that follow; if something is represented incorrectly, please let us
know so that we can adjust the information accordingly.
4. PROJECT BUDGET FORM
Project Budget Form (Complete form on next page)
(Refer to the instructions and example)
Project Budget Narrative (Complete and attach)
(Refer to the instructions and example)
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37 Completed by: A. Rosenberry For: Landfill Remediation System Date: January 2014 ADMINISTRATIVE and FINANCIAL COSTS: SOURCE: SRF Loan SOURCE: SOURCE: SOURCE: SOURCE: TOTAL Personnel Costs Office Costs Professional Services Legal Costs Audit Fees Travel & Training Loan Fees Loan Reserves 140,000.00 Interim Interest Bond Counsel and Related Costs 15,000.00 TOTAL ADMINISTRATIVE/FINANCIAL COSTS 155,000.00 ACTIVITY COSTS: Land Acquisition Preliminary Engineering 100,000.00 Engineering/Architectural Design 400,000.00 Construction Engineering Services Construction 1,300,000.00 Contingency 180,000.00 TOTAL ACTIVITY COSTS TOTAL PROJECT COSTS 2,135,000.00 58
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5. CURRENT DEBT (Refer to the instructions and example on pages 23-24) STORM WATER UTILITY
Year
Issued
Purpose
Type of
Bond/
Security
Amount
Maturity
Date
(mo/yr)
Debt
Holder
Coverage
Requirement
Avg. Annual
Payment
Amount
Outstanding
Balance NONE
6. CURRENT ASSETS (Indicate if assets are obligated.) (Refer to the instructions on pages 23-24.)
Cash $81,810.00
(Details) ______________________________________________________
Investments $________________
(Details) ______________________________________________________
Certificates of Deposit $________________
(Details) ______________________________________________________
Accounts Receivable $3,381.00
(Details) ______________________________________________________
Any other current assets not specifically indicated above $________________
(Details) ______________________________________________________
7. BALANCE SHEET (Submit if applying to RD; contact the other programs to determine if or when this information is needed.)
Balance Sheet (Check if attached)
8. INCOME AND EXPENSE STATEMENT (Submit if applying to RD; contact the other programs to
determine if or when this information is needed.)
Income and Expense Statement (Check if attached)
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SECTION D - CENSUS INFORMATION
Do not fill in this section. The following information will be completed by the receiving agency using data
supplied by the U.S. Bureau of the Census and the U.S. Department of Housing and Urban Development based on
Census data.
1. MEDIAN HOUSEHOLD INCOME
2. LOW TO MODERATE INCOME PERSONS: The percent of the population at
or below the level designated as low to moderate income.
3. POVERTY: The percent of the population characterized as at or below the
level designated as poverty.
$_______________
%______________
%______________
SECTION E - SYSTEM INFORMATION (Refer to instructions)
Number of unimproved properties in jurisdiction: ~1,000 lots
Complete and attach the “System Information Worksheet.” The figures required for the items listed below
that are denoted with an ” “ are computed using the “System Information Worksheet.” The letter in
parenthesis following the ” “ denotes the location in the worksheet to find the figure to be inserted.
1. Total System Annual Revenue
2. Total System Annual Operation and Maintenance
Costs
3. Total System Equivalent Dwelling Units*
(e) for current and (k) for projected
4. Total Residential Equivalent Dwelling Units*
(f) for current and (m) for projected
5. Annual Revenue from Residential Hookups
6. Percent of Total Annual Revenue from Residential
Hookups
7. Average Monthly Residential Rate
8. Other System Average Monthly Residential Rate
* If this application is for a solid waste project, see
instructions.
FY14 Current
$236,250.00
$125,586.00
16,018
12,531
$227,900.00
96%
$1.75/month
□ Check box if this is
a flat rate.
$________________
FY15 Projected
$411,250.00
$129,353.00
16,338
12,782
$232,495.00
$1.80/month
Projected Average
Monthly Residential
Rate (w) or (x)
$________________
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SYSTEM INFORMATION WORKSHEET (Refer to instructions)
SUBSECTION 1 – EQUIVALENT DWELLING UNIT COMPUTATION
Applicants with either a water and wastewater project must complete Section I, regardless of whether the applicant
is served by a central water system or is planning to charge residential users a flat user fee. If the applicant is not
served by a central water system, or it has water connections that provide service to multiple mixed uses, such as
commercial and residential, refer to the instructions on page 26 for information on computing the number of EDU’s.
Applicants with solid waste projects are not required to complete Section I. Service connection diameters will be
converted to EDU’s according to the following table, with the exception of those situations noted on page 26:
Service connection inside diameter (inches) EDU’s
¾” or smaller 1.00
1" 1.79
1-1/2" 4.00
2" 7.14
2-1/2" 11.16
3" 16.00
4" 28.57
5" 44.64
6" 64.29
7” 87.11
8” 113.78
9” 144.00
10” 177.78
PART A. CURRENT WATER HOOKUP SUMMARY (STORMWATER SYSTEM CHARGES)
Current Total Hookups* Current Residential Hookups (+MSU)
(a) (b) (c) (d)
Diameter
(inches)
Total
Number of
Hookups
EDU’s per
Hookup
(from table)
Total EDU’s
[(a) x (b)]
Diameter
(inches)
Number of
Residential
Hookups
EDU’s Per
Hookup
(from table)
Total
Residential
EDU’s
[(c) x (d)]
58 9983 1.00 9,983.00 58 9367 1.00 9,367.00
100 670 1.79 1,199.30 100 439 1.79 785.81
150 310 4.00 1,240.00 150 198 4.00 792.00
200 220 7.14 1,570.80 200 69 7.14 492.66
300 24 16.00 384.00 300 10 16.00 160.00
400 28 28.57 799.96 400 10 28.57 285.70
600 6 64.29 385.74 600 3 64.29 192.87
800 4 113.78 455.12 800 4 113.78 455.12
______ ______ ______ ______ ______ ______ ______
______ ______ ______ ______ ______ ______ ______
______ ______ ______ ______ ______ ______ ______
______ ______ ______ ______ ______ ______ ______
______ ______ ______ ______ ______ ______ ______
Totals 11,245 16,017 (e) 10,100 12,531 (f)
* Includes both residential and non-residential hookups
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PART B. PROJECTED WATER HOOKUP SUMMARY (STORMWATER SYSTEM CHARGES)
Projected Total Hookups* Projected Residential Hookups(+MSU)
(g) (h) (i) (j)
Diameter
(inches)
Total
Number of
Hookups
EDU’s per
Hookup
(from table)
Total EDU’s
[(g) x (h)]
Diameter
(inches)
Number of
Residential
Hookups
EDU’s Per
Hookup
(from table)
Total
Residential
EDU’s [(i)
x (j)]
58 10183 1.00 10,182.66 58 9554 1.00 9,554.34
100 683 1.79 1,223.29 100 448 1.79 801.53
150 316 4.00 1,264.80 150 202 4.00 807.84
200 224 7.14 1,602.22 200 70 7.14 502.51
300 24 16.00 391.68 300 10 16.00 163.20
400 29 28.57 815.96 400 10 28.57 291.41
600 6 64.29 393.45 600 3 64.29 196.73
800 4 113.78 464.22 800 4 113.78 464.22
______ ______ ______ ______ ______ ______ ______
______ ______ ______ ______ ______ ______ ______
______ ______ ______ ______ ______ ______ ______ ______
______ ______ ______ ______ ______ ______ ______ ______
______ ______ ______ ______ ______ ______ ______ ______
______ ______ ______ ______ ______ ______ ______ ______
Totals 11,470 16,338 (k) 10,302 (l) 12,781(m)
* Includes both residential and non-residential hookups
Projected average EDU’s per residential hookup: 1.24 (n)
[(m)/(l)]
Provide the following information if applying to the USDA RUS/RD program
Total water system flows (sales) last twelve months ________ [gallons or cubic feet (circle one) for all connections
listed in (a) above]
Total residential water flows (sales) last twelve months ________ [gallons or cubic feet (circle one) for all
connections listed in (c) above]
SUBSECTION 2 – PROJECTED AVERAGE MONTHLY RESIDENTIAL RATE COMPUTATION Will debt be used to finance the project? Yes X No ___ If no, skip to PART E.
If yes, how will debt for the project be secured:
A. Revenue Bond yes (complete Part A)
B. General Obligation Bond (complete Part B)
C. Rural or Special Improvement District Bond (complete Part C)
D. Other (explain) (complete Part D)
Debt (Loan) Amount: $____________ Interest Rate:____% Terms:____________________________
___________________________________________________________________________________
COMPLETE THE APPLICABLE SECTIONS BELOW
PART A. REVENUE BOND SECURING DEBT OBLIGATION:
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1. Debt election held? Yes No x If no, when will election be held (date) N/A
2. Annual debt service for new loan, including coverage: $175,000.00(i)
3. Monthly debt service for new loan, including coverage: (line i / 12) $14,583.00(ii)
4. Total number of projected EDU’s after completion of project: 16,338(iii)
5. Average (per total projected EDU’s) monthly debt service for new
loan: (line ii / line iii) $ 0.89(iv)
PART B. GENERAL OBLIGATION BOND SECURING DEBT OBLIGATION:
1. Debt election held? Yes No If no, when will election be held? (date):
2. Amount of outstanding General Obligation Bonds $ __________
3. Debt limitations of entity
4. Estimated average (per property) monthly assessment needed to repay debt (divide the annual
assessment by 12 to obtain a monthly figure): $ __________
PART C. RURAL OR SPECIAL IMPROVEMENT DISTRICT BOND SECURING DEBT OBLIGATION:
1. Type of special assessment:
a. SID _____
b. RID _____
c. Other (specify) _____________________________________________________________
2. Proposed method of assessment:
a. Assessable Area
b. Area
c. Ad Valorem Tax
d. Lineal Front Footage
e. Combination of a. through d. above (explain)
3. Number of parcels in the district
4. What percentage of the property (based on the methods of assessment) within the district fits these
descriptions?
TYPE OF PROPERTY PERCENT DEVELOPED PERCENT UNDEVELOPED
Commercial
Industrial
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Single-Family Residential
Multi-Family Residential
Agricultural
5. Number of property owners in district _______________________________________________
6. Estimated average (per property) monthly assessment needed to repay debt (divide the annual
assessment by 12 to obtain a monthly figure): $
PART D. OTHER TYPE OF DEBT INSTRUMENT SECURING DEBT OBLIGATION THAT IS NOT INDICATED ABOVE
1. Explain how debt will be secured:
2. Estimated average (per property) monthly cost to repay debt: $
PART E. CALCULATION OF THE PROJECTED AVERAGE MONTHLY RESIDENTIAL USER RATE:
1. Estimated increase in average monthly debt service (per projected
EDU, monthly assessment per property for General Obligation Bond or
SID, or per customer for solid waste projects) as the result of this project.
Enter $0 if no increase is projected: $0.89 (o)
[From Part A, B, C, or D]
2. Estimated increase or decrease in total monthly operation and maintenance
(O&M) costs (including depreciation and replacement reserves) as the result
of this project: $0.00 (p)
3. List and explain estimated increases or decreases in O&M costs, including depreciation and replacement
reserves (Provide a reasonably detailed explanation regarding the reason for the increase or decrease):
The City’s Stormwater system will not be operating the Landfill Gas Remediation system. We
anticipate the General Fund and/or the Post-Closure Monitoring fund will operate the system.
4. Estimated increase or decrease in monthly O&M costs (including depreciation
and replacement reserves) (per projected EDU, monthly assessment per
property for General Obligation Bond or SID, or per customer for solid
waste projects) as the result of this project: $ 0.00 (q)
[(p) / (k)]
5. Estimated increase or decrease in total monthly costs (per projected
EDU, monthly assessment per property for General Obligation Bond or
SID, or per customer for solid waste projects) as the result of this project: $0.89 (r)
[(o) + (q)]
6. Projected average EDU’s per residential hookup: 1.24(s)
[(n)]
7. Estimated increase or decrease in total monthly costs per average
residential hookup/customer as the result of this project: $1.10 (t)
[(r) x (s)]
8. Existing average monthly residential debt service, including coverage and bond
reserve (subtract any existing debt service if the loan will expire before the
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completion of the project): $ 0.00(u)
9. Existing average monthly residential O&M costs and replacement and
depreciation reserves: $ 1.75(v)
Note: (u) plus (v) should equal the current average monthly
residential rate as stated in Section E, Line 7. If these amounts do
not equal, provide an explanation of why the numbers differ.
10. Projected average monthly residential user rate after completion
of this project: $ 1.75 (w)
[(t) + (u) + (v)]
11. Projected flat user rate: $ (x)
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
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GovernmentalActivitiesWaste Solid Parking Stormwater InternalWater Fund Water Fund Waste Fund Fund Fund Total Service FundsASSETS Current assetsCash and investments 11,895,911$ 2,377,814$ 2,899,154$ -$ -$ 17,172,879$ 519,423$ReceivablesAccrued interest 31,990 18,712 2,317 - - 53,019 -Customers, net 603,047 573,144 236,648 23,038 21,548 1,457,425 14,156$Special assessments 39 - 465 - - 504 -Total current assets 12,530,987 2,969,670 3,138,584 23,038 21,548 18,683,827 533,579 Non current assetsOther assetsNotes receivable - - - 18,308 - 18,308 -Restricted cash and investments 1,545,425 1,913,725 - 257,886 - 3,717,036 -Total other assets 1,545,425 1,913,725 - 276,194 - 3,735,344 -Property, plant and equipment Nondepreciable:Land 162,518 754,043 3,714,577 303,436 - 4,934,574 -Water rights 2,065,142 - - - - 2,065,142 - Depreciable:Buildings 36,984,135 59,376,791 868,302 11,629,361 - 108,858,589 1,388,583Other structures and improvements 13,920,661 14,745,401 2,155,300 - - 30,821,362 -Machinery and equipment 1,323,023 2,533,470 2,613,695 98,918 142,961 6,712,067 151,521Vehicles 427,326 711,682 529,231 82,551 95,828 1,846,618 83,812Infrastructure 155,509,665 97,054,247 78,531 - - 252,642,443 -Accumulated depreciation and amortization (98,146,262) (65,824,124) (5,402,331) (2,750,406) (110,124) (172,233,247) (365,750)Net property, plant and equipment 112,246,208 109,351,510 4,557,305 9,363,860 128,665 235,647,548 1,258,166Total non current assets 113,791,633 111,265,235 4,557,305 9,640,054 128,665 239,382,892 1,258,166Total assets 126,322,620$114,234,905$7,695,889$ 9,663,092$ 150,213$ 258,066,719$ 1,791,745$Enterprise FundsCITY OF BOZEMAN, MONTANASTATEMENT OF NET POSITIONPROPRIETARY FUNDSJune 30, 2013Business-type ActivitiesThe Notes to Financial Statements are an integral part of the financial statements.66
GovernmentalActivitiesWaste Solid Parking Stormwater InternalWater Fund Water Fund Waste Fund Fund Fund Total Service FundsLIABILITIESCurrent liabilities:Accounts payable and accrued expenses 3,536,002$ 981,048$ 106,135$ 24,329$ 1,198$ 4,648,712$ 25,402$ Compensated absences payable 139,561 99,063 61,154 7,903 1,209 308,890 - Due to other City funds - - - 18,019 4,060 22,079 14,088 Closure and post-closure care costs, current portion - - 100,000 - - 100,000 - Bonds, notes, and loans payable 697,000 967,000 - - - 1,664,000 - Total current liabilities 4,372,563 2,047,111 267,289 50,251 6,467 6,743,681 39,490 Noncurrent liabilitiesClosure and post-closure care costs - - 1,385,246 - - 1,385,246 - Revenue bonds due after one year 13,054,878 21,534,119 - - - 34,588,997 - Compensated absences payable 89,542 36,949 40,278 922 - 167,691 17,928 Other post-employment health benefits - implicit rate subsidy 156,149 101,778 77,838 25,392 1,181 362,338 22,568 Solvent site remediation liability - 1,682,753 - - - 1,682,753 - Total noncurrent liabilities 13,300,569 23,355,599 1,503,362 26,314 1,181 38,187,025 40,496Total liabilities17,673,132 25,402,710 1,770,651 76,565 7,648 44,930,706 79,986 NET POSITIONInvested in capital assets, net of related debt98,494,330 86,850,391 4,557,305 9,363,860 128,665 199,394,551 1,258,166 Restricted for impact capital projects11,094 - - - - 11,094 - Restricted for parking capital projects- - - 257,886 - 257,886 - Restricted for debt service1,040,553 1,788,592 - - - 2,829,145 - Unrestricted9,103,511 193,212 1,367,933 (35,219) 13,900 10,643,337 453,593 Total net position108,649,488 88,832,195 5,925,238 9,586,527 142,565 213,136,013 1,711,759 Total liabilities and net position126,322,620$ 114,234,905$ 7,695,889$ 9,663,092$ 150,213$ 258,066,719$ 1,791,745$ Enterprise FundsCITY OF BOZEMAN, MONTANASTATEMENT OF NET POSITION (CONTINUED)PROPRIETARY FUNDSJune 30, 2013Business-type ActivitiesThe Notes to Financial Statements are an integral part of the financial statements.67
GovernmentalActivitiesWaste Solid Parking Stormwater InternalWater Fund Water Fund Waste Fund Fund Fund Totals Service FundsOPERATING REVENUES Charges for services 7,806,922$ 6,916,226$ 2,494,892$ 395,550$ 223,557$ 17,837,147$ 4,723,555$ OPERATING EXPENSESSalaries and benefits 2,195,356 1,549,261 1,046,020 200,783 50,225 5,041,645 304,795 Materials and supplies 665,962 238,347 270,355 23,623 17,458 1,215,745 469,811 Repairs and maintenance 93,979 172,918 168,541 56,861 - 492,299 14,006 Utilities 164,911 440,943 359,144 31,683 99 996,780 4,505 Administrative charges 666,182 542,403 251,682 57,379 - 1,517,646 47,409 Insurance claims - - - - - - 4,210,837 Other expenses 578,116 312,829 187,830 93,936 14,093 1,186,804 77,331 Depreciation and amortization 1,626,990 2,017,174 192,108 292,125 14,296 4,142,693 57,484 Changes in estimated closure and post-closure care costs- - - - - - Total operating expenses5,991,496 5,273,875 2,475,680 756,390 96,171 14,593,612 5,186,178 Operating income (loss)1,815,426 1,642,351 19,212 (360,840) 127,386 3,243,535 (462,623) NON-OPERATING REVENUES (EXPENSES)Interest income87,33626,465 20,470 225 150 134,646 3,966 Interest expense (163,250) (847,788) - - - (1,011,038) (261) Other income 50,088 157,411 17,314 20,214 - 245,027 8,052 Intergovernmental income 1,690 491,225 805 163 15,029 508,912 - Impact fees 1,659,674 1,460,336 - - - 3,120,010 - Gain (loss) on disposal of assets (18,081) - - 4,976 - (13,105) - Total non-operating revenues (expenses) 1,617,457 1,287,649 38,589 25,578 15,179 2,984,452 11,757 Income (loss) before contributions and transfers 3,432,883 2,930,000 57,801 (335,262) 142,565 6,227,987 (450,866) Contributions of infrastructure - developers 156,123 - - - - 156,123 - Transfers in - - - 10,000 - 10,000 153,088 Transfers out - - - - - - - Change in net position 3,589,006 2,930,000 57,801 (325,262) 142,565 6,394,110 (297,778) NET POSITION, beginning of year 105,060,482 85,902,195 5,867,437 9,911,789- 206,741,903 2,009,537 NET POSITION, end of year108,649,488$ 88,832,195$ 5,925,238$ 9,586,527$ 142,565$ 213,136,013$ 1,711,759$ Enterprise FundsBusiness-type ActivitiesCITY OF BOZEMAN, MONTANASTATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - PROPRIETARY FUNDSYear Ended June 30, 2013The Notes to Financial Statements are an integral part of the financial statements.68
GovernmentalActivitiesWaste Solid Parking Stormwater InternalWater Fund Water Fund Waste Fund Fund Fund Total Service FundsCash Flows from Operating ActivitiesReceipts from customers7,696,673$ 6,837,050$ 2,480,613$ 400,987$ 202,009$ 17,617,332$ 4,709,399$ Receipts from others50,088 157,411 17,314 20,214 - 245,027 8,052 Operating loans from other funds- - - 18,019 4,060 22,079 167,176 Payments to suppliers(2,086,838) (2,759,736) (1,075,824) (123,428) (31,153) (6,076,979) (596,095) Payments to employees(2,170,031) (1,531,061) (1,027,240) (166,566) (47,133) (4,942,031) (4,495,507) Payments to internal service funds and administrative fees(666,182) (542,403) (251,682) (57,379) - (1,517,646) (47,409) Net Cash Flows From Operating Activities2,823,710 2,161,261 143,181 91,847 127,783 5,347,782 (254,384) Cash Flows from Noncapital Financing Activities:Transfers in- - - 10,000 - 10,000 - Transfers out- - - - - - - Receipts from grants and intergovernmental sources1,690 491,225 805 162 15,029 508,911 - Net Cash Flows from Noncapital Financing Activities1,690 491,225 805 10,162 15,029 518,911 - Cash Flows from Capital and Related Financing ActivitiesAcquisition of capital assets(22,042,404) (1,053,853) 5,150 - (142,961) (23,234,068) (16,354)Principal paid on bonds, interfund loans, loans and leases(502,000) (1,465,227) - - - (1,967,227) - Interest paid on bonds, interfund loans, loans and leases(163,250) (847,788) - - - (1,011,038) (261) Proceeds from issuance of long-term debt14,071,301 112,919 - - - 14,184,220 - Impact fees received1,659,674 1,460,336 - - - 3,120,010 - Proceeds from sale of property, plant and equipment(18,081) - - 4,976 - (13,106) - Net Cash Flows from Capital and Related Financing Activities(6,994,761) (1,793,613) 5,150 4,976 (142,961) (8,921,209) (16,615) Cash Flows from Investing ActivitiesCollections on notes- - - 3,822 - 3,822 - Interest on investments95,727 30,821 22,345 225 150 149,268 3,966 Net Cash Flows from Investing Activities95,727 30,821 22,345 4,047 150 153,090 3,966 Net Increase (Decrease) in Cash and investments(4,073,634) 889,694 171,481 111,032 0 (2,901,426) (267,033) Cash and investments, beginning of year17,514,970 3,401,845 2,727,673 146,853 - 23,791,341 459,251 Cash and investments, end of year13,441,336$ 4,291,539$ 2,899,154$ 257,885$ 0$ 20,889,915$ 192,218$ Classified as:Cash and investments11,895,911$ 2,377,814$2,899,154$ -$ -$ 17,172,879$ 519,423$ Restricted cash and investments1,545,425 1,913,725 - 257,886 - 3,717,036 - Totals13,441,336$ 4,291,539$ 2,899,154$ 257,886$ -$ 20,889,915$ 519,423$ Noncash transactions: donated infrastructure156,123$ -$ -$ -$ -$ 156,123$ CITY OF BOZEMAN, MONTANASTATEMENT OF CASH FLOWS - PROPRIETARY FUNDSYear Ended June 30, 2013Business-type ActivitiesEnterprise FundsThe Notes to Financial Statements are an integral part of the financial statements.69
GovernmentalActivitiesWaste Solid Parking Stormwater InternalWater Fund Water Fund Waste Fund Fund Fund Total Service FundsOperating income (loss) 1,815,426$ 1,642,351$ 19,212$ (360,840)$ 127,386$ 3,243,535$ (462,623)$ Adjustments to reconcile operating income (loss)to net cash provided (used) by operating activitiesDepreciation and amortization 1,626,990 2,017,174 192,108 292,125 14,296 4,142,693 57,484 Change in estimated closureandpost-closure care costs--(78,110)- - (78,110)-Change in solvent site remediation obligation-(691,120)- -- (691,120)-Other income 50,088 157,411 17,314 20,214 245,027 8,052 Change in Assets and Liabilities: (Increase) Decrease in:Accounts receivable (110,249) (79,176) (14,279) 5,437 (21,548) (219,815) (14,156) Other governments receivable - - - - - - - Other City funds - - - - - - - Increase (Decrease) in:Accounts payable (583,870) (919,779) (11,844) 110,297 497 (1,404,699) (18,124) Accrued employee benefits payable 25,325 34,400 18,780 6,595 3,092 88,192 Interfund Borrowings - - - 18,019 4,060 22,079 7,808 Total adjustments 1,008,284 518,910 123,969 452,687 397 2,104,247 208,240 2,104,247 Net cash provided (used) byoperating activities 2,823,710$ 2,161,261$ 143,181$ 91,847$ 127,783$ 5,347,782$ (254,383)$ CITY OF BOZEMAN, MONTANASTATEMENT OF CASH FLOWS - PROPRIETARY FUNDS (CONTINUED)Year Ended June 30, 2013Business-type ActivitiesEnterprise FundsThe Notes to Financial Statements are an integral part of the financial statements.70