Fiscal Years 2014– 2018 Capital Improvements Plan “Incremental Growth and Development” “Creating Stability and Meeting Expectations Responsibly” “Innovations and Efficiency in Service Delivery” Table of Contents Community Profile .......................................................................................................................... 1 Factors Affecting Economic Condition ........................................................................................... 3 List of Elected Officials................................................................................................................... 6 List of Appointed Officials .............................................................................................................. 9 Evaluation Criteria ....................................................................................................................... 10 Capital Project Definition............................................................................................................. 11 Needs Assessment.......................................................................................................................... 12 Financial Analysis ........................................................................................................................ 12 Funding Options ........................................................................................................................... 13 Current Revenue Trends ............................................................................................................... 14 Bonding Capacity.......................................................................................................................... 15 Plan Implementation ..................................................................................................................... 16 Summary and Detail Sheets .......................................................................................................... 16 Plan Financial Assumptions ......................................................................................................... 17 Revenue Estimates and Fund Balance Summary .......................................................................... 18 Citywide Totals ............................................................................................................................. 23 Capital Improvement Plan Summary ............................................................................................ 24 Capital Improvement Plan Detail ................................................................................................. 26 Glossary ........................................................................................................................................ 32 FY2014 - FY2018 Capital Improvements Plan – Team Members Lana Mook Joe Ramirez Roy Delgado James McPhetres Jack Palladino Lynn Selby David Shapera Mayor Vice Mayor Councilmember Councilmember Councilmember Councilmember Councilmember Dr. Spencer A. Isom City Manager Robert A. Nilles Christy Eusebio Finance Director Accounting Manager Department Heads Resolution 13-05-13 submitted for Council approval May 7, 2013 FY2014 - FY2018 Capital Improvements Plan – El Mirage Community Profile Background, Population, and Business. El Mirage is situated on approximately 11 square miles in the heart of the rapidly growing West Valley. The city was founded in 1937 by migrant farm workers who settled on the west bank of the Agua Fria River and harvested the acres of roses, cotton, and other crops that would come to define the city’s agricultural heritage. Since its incorporation in 1951, the community has transcended its agricultural beginnings to become a vibrant, diverse community with a current population of just over 32,000. In recent years, El Mirage has adopted economic development initiatives to attract new commercial and industrial businesses to the city. Impact fees normally charged for infrastructure expansion have been eliminated, and El Mirage has joined with other West Valley cities to form the Greater Maricopa Foreign Trade Zone, allowing goods to be moved through the region exempt from certain U.S. Customs fees. Local employers include Burlington Northern Santa Fe Railroad, which operates an 82-acre vehicle distribution center in El Mirage. Vulcan Materials Group, Union Rock and Materials, Hanson Pipe, and Contech Engineered Solutions are also among the firms representing the city’s industrial base. Luke Air Force Base, just nine miles west of El Mirage, is the largest jet fighter training base in the world and employs over 1,500 civilians, many of whom are El Mirage residents. The City of El Mirage offers a range of community facilities including a senior center and library. Thirteen-acre Gateway Park is the center for sports and family gatherings in El Mirage, with an amphitheater, picnic armadas, shaded playgrounds, lighted sports fields, and a skate plaza that is the first of its kind in Arizona. El Mirage is also home to Bill Gentry Park, a newly renovated little league field that draws teams from throughout the Valley for regular play, as well as regional tournaments. The nationally renowned Pueblo El Mirage Golf Resort, situated on 310 acres in the city, boasts an 18-hole professional golf course and has home choices, as well as a host of indoor and outdoor activities for active seniors. 1 Governing Structure. Like most Arizona cities and towns, El Mirage operates under a council-manager form of government. Under this system, the City Council hires a City Manager to implement policy, as well as oversee the daily administration and management of all city departments. The City Manager is responsible for developing a balanced budget and a capital improvement plan for council review and approval each year. The City Manager also keeps the council advised of the city’s financial condition and future needs. As City Manager, Dr. Spencer A. Isom is responsible for the activities of seven city departments and more than 170 employees. He also oversees a $114 million budget to provide services for the city’s 32,000 residents. This year’s budget utilizes the theme “creating stability and meeting expectations responsibly.” Policymaking and legislative authority are vested in a governing council consisting of the Mayor and six Councilors (one is selected as Vice-Mayor). All seven members of the council are elected at large and on a non-partisan basis to serve a fouryear term. Elections are staggered so three councilors are elected every two years and the mayor is elected every four years. The Council is responsible for passing ordinances, adopting the budget, appointing committees, and selecting the City Attorney and Judge in addition to the City Manager. Types and Levels of Services. The City of El Mirage provides a full range of services including police and fire protection, roadway maintenance and construction, recreational and cultural activities, health and social services, as well as general administrative services. The city provides sewer and water services to its residents, along with water services to residents in a portion of the City of Surprise. El Mirage contracts with a local sanitation company for sanitary services. An enterprise funds was established for the accounting and financial reporting of water, sewer, and sanitation services. Budget Process and Legal Level of Control. The annual expenditure budget serves as the foundation for city financial planning and control. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual expenditure budget approved by the City Council. All city departments are required to submit requests for appropriations during the budget process. The City Manager and Finance Department use these requests plus the prior year’s operating budget as the starting point for assembling a proposed budget for Council consideration. The Council holds a retreat to discuss the proposed budget where presentations are made to the Council on revenues, expenditures, capital, staffing, and taxes. Public hearings are then held on both the budget and proposed property levies. Both the budget and the tax levy are approved by the Council in June or July each year. Maricopa County is required to set the tax rate to collect the levy that the Council sets. The County sets the rate on the third Monday in August. The budget schedules provided by the state are adopted at both the fund and department levels, which are the legal levels of control for the state. 2 FY2014 - FY2018 Capital Improvements Plan – Factors Affecting Economic Conditions Local Economy. The El Mirage economy was primarily dependant on housing construction for many years. In 2004, however, the city began to approach residential build-out and the Maricopa County housing market began to diminish causing unemployment statewide, countywide, and locally to spike (The local unemployment rate tends to be slightly higher than county and state levels.). Since that time, the city has turned its focus toward retail and industrial growth resulting in the opening of a Walmart supercenter and two Walgreens pharmacies in recent years. In addition, the number of local businesses has been rising steadily and currently stands at 904. The recession and weaker than expected recovery have made further commercial growth challenging, resulting in the city’s reliance on state shared revenues as much as local sales and property tax to remain fiscally solvent. State shared revenues are distributions of sales, income, vehicle, and gasoline taxes based on a statewide formula that was implemented as a result of limitations placed on the ability of cities and towns to collect local revenues. Long-term Financial Planning. In 2011, the Council adopted the city’s first-ever, five-year Capital Improvements Plan (CIP). The CIP was based in part on a series of goals recently adopted by the Council. The Council goals and the CIP are intended to make the city more attractive to commercial development. As part of the CIP, the city developed a five-year financial projection. If the city is successful in expanding its commercial base, the CIP will be revised upward each year. The presence of Luke Air Force Base provides a significant employment and economic engine for the community. However, Luke’s presence has placed significant land use restrictions on large tracks of city property. Although such property is primarily zoned ‘agricultural’ at present, the city and the primary property owner have long-term plans to convert this property for commercial and industrial uses. Conceivably, this process may take thirty years to complete. Until the property owner is prepared to move forward with development, the city will concentrate on infill properties ranging in size from a few acres to more than 80 acres for continued business growth. Given the continuing economic uncertainty at the local, state, and national levels, the City Council and administration recognize the need to assure reserves are available for future revenue shortfalls. Therefore, the budget reflects a minimum General Fund reserve of $6.0 million. The Council approved a utility rate study in 2011 that recommended reserves for each of the three utilities ranging from one month to three months. The reserves are not budgeted. The reserves are only intended to offset shortfalls in revenue collections, not as an opportunity to increase expenditures. By resolution, the Council also directed that all primary property taxes would be 3 restricted to uses in support of police and fire operations. Through a similar resolution the Council directed that excess funds collected from photo enforcement must be dedicated to public safety and Northern Parkway construction. Relevant Financial Policies. In June 2012, the City Council adopted a series of comprehensive financial management policies designed to maintain a financially viable city government that provides an adequate level of services, programs, and activities that add value and contribute to the city’s mission, while providing financial flexibility to adapt to local, regional, and national economic changes. Policies directly related to the construction of the annual Capital Improvements Plan are provided below.       The Finance Director will annually coordinate with the City’s Engineer and Public Works Director to submit a Capital Improvement Plan for review by the City Manager, then Council. The Capital Improvement Plan shall include: o A statement of the objectives of the Capital Improvement Plan. o An estimate of each project’s/acquisition’s useful life. o An estimate of each project’s/acquisition’s capital costs. o An estimate of each project’s/acquisition’s annual operating costs. o An evaluation of potential funding sources for each project/acquisition. o A schedule for each project/acquisition. The current year of the Capital Improvement Plan will provide the basis for the capital budget. When current revenues or resources are available for projects/acquisitions, the City will first consider those projects/acquisitions with the shortest useful life and/or those projects/ acquisitions which are difficult to finance with debt. The City may not proceed with construction or acquisition until the funding sources have been identified to finance the project. At the end of the Fiscal Year in which the project is completed or acquired, any remaining budgeted funds will revert to the fund balance of the funding source. In addition to adopted policies the City has a number of administrative procedures that may help users better understand the financial framework of this plan. The relevant procedures are identified in the following bullets.  The city shall maintain a prudent level of financial resources to protect against reducing service levels, incurring debt, or raising taxes and fees because of unexpected revenue shortfalls, unanticipated expenditures, and similar circumstances. 4    The Finance Director shall annually prepare five-year revenue and expenditure forecasts to examine the city’s ability to absorb operating costs due to changes in the economy, service demands, service levels, and capital improvements. The city shall fund current year capital projects with bonds, grants, or funds accumulated (fund balances) prior to budgeting for capital expenditures. The city shall practice conservatism in budgeting for both revenues and expenditures to ensure the city can meet its ongoing obligations. The city shall not budget excess funds collected (fund balance) for ongoing expenditures. Major Initiatives. The city currently has three major capital initiatives that will have significant future impact on the quality of life for its citizens, while expanding infrastructure and increasing the resources available for economic development. El Mirage Road - The city is partnering with Maricopa County Department of Transportation (McDOT) and the Maricopa Association of Governments (MAG) to complete construction of El Mirage Road from Northern Avenue to Thunderbird Road and to complete improvements along Thunderbird Road from Grand Avenue to west of El Mirage Road. The city has bond authorization to pay for its share of the improvements. McDOT will provide $6 million and MAG will provide 70% funding up to approximately $36 million. The city intends to accelerate the project to complete improvements in less than five years. The original projection for project completion was approximately ten years. Police Facility - The city plans to construct a new police station on land designated for city use next to Gateway Park. Cost includes design, construction, site improvements and furnishings. The energy efficient facility will house all operations of the Police Department, including administration, patrol, investigations, evidence storage, records management and storage, modern technology infrastructure, a community meeting room, and a public lobby. Recreation Facility with Pool - The city plans to construct a new recreation facility with pool. The facility will be approximately 28,000 square feet and will be located adjacent to Gateway Park on approximately 5 acres. 5 FY2014 - FY2018 Capital Improvements Plan – List of Elected City Officials Mayor Lana Mook Mayor Lana Mook has called Arizona home for nearly 30 years. After retiring from approximately three decades in management, training and patient relations in the health care industry, Mayor Mook devoted much of her time to volunteering in El Mirage, pursuing her commitment to doing everything she can to help and improve her community. With a number of other community volunteers, she co-founded the People of El Mirage (POEM), a civic-based community organization focused on helping those in need as well as informing the public on local issues. Under her leadership, the organization promoted local support for Luke Air Force Base, raised funds for local Cub Scouts and volunteered on numerous food and clothing drives for the area’s residents in need. In addition, POEM members partnered with local public safety officials to increase safety and awareness in El Mirage neighborhoods. In 2010, Mook was elected Mayor of the City of El Mirage. Mayor Mook serves on the following Board and Committees: League of Arizona Cities & Towns Executive Committee, Co-Chair of Luke West Valley Council, Fighter Country Partnership- Eagle Member, Valley Metro Regional Public Transportation Authority Executive Committee, WESTMARC (Western Maricopa Coalition) Executive Committee, and Maricopa Association of Governments Regional Council. Although new to public service, Mayor Mook is not new to the world of community involvement and civic leadership. She spent many years dedicating time to the Phoenix Suns Charities, the Girl Scouts of America, and the U.S. Forest Service (Smokey Bear and Woodsy Owl Fire Prevention Programs). She has always been the type of leader who says what she means and does what she says. Vice Mayor Joe Ramirez Vice Mayor Joe Ramirez is proud to call El Mirage home for more than 50 years. He graduated from Dysart High School and attended Glendale Community College before beginning work in the construction industry, which led him to a 30-year career that included owning his own construction firm. A straight-to-the-point individual, Vice Mayor Ramirez has always been a supporter of El Mirage and the West Valley. In addition to serving on the City Council, he volunteers his time on numerous civic projects and participates in local events including the Christmas Toy Drive, the Clean Our Community Program, and Habitat for Humanity. 6 Councilman Roy Delgado Councilman Roy Delgado has served on the El Mirage City Council for 10 years and was last elected in September 2012 to a four-year term. Delgado spent over 20 years in the U.S. Army and National Guard, as well as more than 30 years in management in the oil industry in California and Arizona. His current government service includes chairing the Community Development Advisory Committee (CDAC), which oversees the flow of federal housing and infrastructure project funds received by Maricopa County and awarded on a competitive basis to local governments. The CDAC's funding recommendations are vetted and ultimately approved by the County Board of Supervisors. Councilman Delgado also chairs the Citizens Advisory Committee of the County Library District. He was appointed to the position by Supervisor Max Wilson and, along with other committee members, serves as a liaison between the district's board of directors, the library administration, and the community. Councilman Delgado is equally proud of his community service activities, which include teaching hunter safety for the Arizona Game and Fish Department; serving as mass coordinator for Luke AFB's Catholic communities; and helping raise funds, along with his wife Sue, for student scholarships on behalf of Dysart Unified School District and the West Valley Neighborhood Coalition. As a member of the Elks, the American Legion, and two military officer's associations, Delgado maintains strong ties with the Valley's military community. Councilman James McPhetres Councilman McPhetres moved to Arizona in 1987 and married in 2000. He moved his family from Avondale to El Mirage in 2001 after building the family home in the city. McPhetres has volunteered countless hours to community causes, serving on the Police Advisory Committee, coaching Cal Ripkin baseball and youth football, and encouraging residents to vote for the recently completed new fire station. In addition, he served on the Judicial Advisory Board (JAB) that selected candidates for the City's first municipal judge, and was JAB's chairman for four years. He was elected President of the Grand Mirage Homeowners Association in 2001 and held the position for nine years until being elected to the City Council in 2010. He was appointed as the City's representative to the Western Maricopa Coalition (Westmarc) Energy and Water Committee in 2011. In March 2012, Councilman McPhetres retired from the U.S. Air Force as a superintendent of Human Resource Systems and Readiness after 36 years of service. Councilman McPhetres is committed to ensuring accountability for all city resources and feels the Council owes residents a city that is affordable and one where residents can live, work, and play. He focuses on fiscally conservative economic development and believes in "Integrity first, Service before self and Excellence in all we do" - core values from his Air Force past that he carries forward in his role as City Councilman. 7 Councilman Jack Palladino Born and raised in Chelsea, Massachusetts, Jack’s commitment to his community began over 40 years ago with his service as a medic in the United States Army. After retiring from active duty, Jack married his sweetheart, Michele, and went to work for the U.S. Post Office as a letter carrier. Over the course of more than 30 years, Jack’s hard work and perseverance were recognized and ultimately, he was promoted to Acting Manager of one of the U.S.P.S. Boston facilities. During this time, Jack also volunteered as a Little League Coach and with the Knights of Columbus. Shortly after retiring in 2003, Jack and his wife moved to Arizona and he currently works part-time with the Pueblo El Mirage Post Office. Jack and Michele have one son and a five year old grandson who also live in the West Valley and last year they celebrated their 40th Anniversary. After attending numerous local city council meetings and volunteering in the community, Jack was drafted to run for El Mirage City Council and was overwhelmingly elected in 2010. Council Member Palladino believes that one person can make a difference! Councilman Lynn Selby Born and raised in Los Angeles, California, Lynn Selby has a business background spanning more than 30 years, during which time he managed cash flow, developed yearly budgets, and worked closely in managing personnel and inventory. Lynn and his wife Danielle retired to El Mirage and began actively attending city council meetings and volunteering in the community. It was in attending these meetings that Lynn became interested in the workings of our city and wanted to be able to give something back to the community he loves and calls home. Council Member Selby was elected in August, 2010. He served in the U.S. Navy and now volunteers his time as an engineer with the Maricopa Live Steamers club every Sunday from September through May to give free rides to the public and with the El Mirage Fire Department to help distribute and install free smoke detectors. Council Member Selby also actively represents Operation Lifesaver throughout the State of Arizona, presenting railroad safety programs to government agencies and local organizations. He has been married to Danielle for more than 47 years and is the proud father of three daughters and four grandchildren. 8 Councilman David Shapera Councilman David M. Shapera, recently re-elected to a second four year term to the El Mirage City Council, was also a past member and chairman of the El Mirage Planning and Zoning Commission. He has over 39 years in elected and appointed positions in government. He and his wife, Linda, have been married for 36 years and moved to El Mirage in 2002. He is a retired police officer and worked for the Clark County Coroner Medical Examiner in Las Vegas, Nevada. He recently retired from the Dysart Unified School District. He continues to guest teach at El Mirage schools. As an advocate for the new police station and YMCA-recreation building, he will continue to ensure both buildings will be used to proudly serve the El Mirage community. He continues to support our public safety departments. He will work to continue to upgrade our infrastructure within the parameters of affordability. A vocal advocate for Luke Air Force Base, he will continue to work with the base and share common goals. Continuing to support economic development in El Mirage will be a priority. He has worked to streamline and assist businesses to open in our city. His new program adopted by the city council to have directional signs to help our businesses thrive. The use of solar panels on city buildings will continue as we are doing our part to utilize solar energy. He was in the forefront of bringing utility savings to city buildings. LIST OF APPOINTED CITY OFFICIALS City Manager – Dr. Spencer A. Isom City Attorney (Interim) – Robert M. Hall City Magistrate – James Mapp 9 FY2014 - FY2018 Capital Improvements Plan – Evaluation Criteria In addition to considering basic safety issues such as public health and welfare the City focused on six criteria for determining whether a capital request was to be included in the CIP. Items that were determined to be wants rather than needs that did not achieve the priorities of the Council were automatically eliminated for consideration. The six criteria utilized are identified below along with a brief explanation of each.       Funding – can the City fund this capital expenditure out of existing fund balance, future revenues, or bonding capacity? Council Priority – During the Council retreat, was this one of the major capital expenditures that the Council unanimously determined were essential elements of the City’s future development? Utility Rate Study – A utility rate study was performed on the City’s Water, Wastewater, and Sanitation enterprises. As part of the study major capital expenditures were included in the expenditure portion of the study. Current and future rates have been determined based in part on these capital expenditures. Was this one of the major capital expenditures that was identified in the utility rate study? City Manager Recommended – Certain capital expenditures are necessary to provide basic services. The City Manager reviewed Department Head submissions of CIP requests and asked the question – will basic City services be severely impacted without this capital expenditure? Council Approved – These are items which were approved as part of the current year budget which may have multi-year funding requirements. If the future year expenditures are not approved the Capital project will not be completed and the capital item will not be as useful. Intergovernmental Agreement\Grant Match – Is the projected expenditure being leveraged to create something larger? Sometimes City projects are used to pay for a portion of a much larger project. City funds can be utilized as a match for grants, or City projects can be used as an in-kind payment to encourage other capital and infrastructure expenditures. 10 FY2014 - FY2018 Capital Improvements Plan – Capital Project Definition In order to distinguish between true capital items and operating items, the following capital project definition was developed: Projects included in the El Mirage CIP, including vehicles and equipment, will be those with a cost of at least $5,000 with a useful life of at least three years. All other projects shall be included in Departmental operating budgets. The CIP is to be used as a guide in decisionmaking. The CIP is intentionally developed in the most a-political environment possible with the full knowledge that the final decisions will be made in the political arena. The CIP is an objective basis for making decisions in a very subjective environment. The process for the CIP’s development is divided into four key phases, culminating in the presentation of a Capital Improvement Plan to the City Council for approval. 1. Needs Assessment. Future needs were outlined by the Council and Department Heads. 2. Financial Analysis. Examined the City’s recent revenues, expenditures, current debt, and bonding capacity. 3. Capital Project Evaluation Criteria. CIP projects were evaluated and prioritized by Management using pre-defined evaluation criteria. 4. Capital Improvement Plan. All of the preceding steps culminated in the development of the plan document that will be updated on an annual basis. 11 FY2014 - FY2018 Capital Improvements Plan – Needs Assessment One of the key elements of the El Mirage Capital Improvements Plan is the Needs Assessment. It addresses the needs of the community within the definition of capital projects for the next five years. However, additional needs will be identified on a continual basis and will need to be included in the annual update process. Some unanticipated needs will occur during the budget year and will be weighed against needs already identified in the annually adopted CIP. Attached at the end of this document is a document entitled “City of El Mirage, Capital Improvement Program.” This summarizes the projects approved for funding and all the projects adopted for the Capital Improvement Plan in the out years through FY2018. Each project is listed by the responsible Fund/Department name and project expenditures are shown by fiscal year with a total by project for all years. In this plan is a document titled “Capital Project Detail”. It is categorized in Fund\Department order and details each CIP project by providing cost detail, description of the project, and recommended funding source(s). FY2014 - FY2018 Capital Improvements Plan – Financial Analysis When attempting to determine what resources are available to fund needed infrastructure improvements, it is important to carefully examine the current financial condition of the City as well as possible funding alternatives. Like most communities, the City of El Mirage will most likely always have more needs than financial resources. In developing the CIP, a complete financial analysis is conducted. Funding options, municipal revenue trends, the community’s borrowing capacity and current debt are reviewed. 12 FY2014 - FY2018 Capital Improvements Plan – Funding Options The City of El Mirage has been funding capital improvement projects for many years. The key to implementing the CIP is consistent, systematic funding. This is becoming more and more difficult with today’s political climate, shrinking revenue sources, the demands presented by El Mirage’s growth, and no dedicated funding source for the CIP. The following options are considered when analyzing potential funding sources for CIP Projects. • Pay-As-You-Go Out of Current Revenues. The City currently receives the bulk of its revenues through local sales taxes, state sales tax, and state income tax. The City also receives funding from state fuel taxes which are restricted for transportation related expenditures. • Municipal Bonds. The City can issue bonds for capital projects. Municipal bonds are paid back over a period of time with interest. The City’s ability to bond is discussed in more detail in the bonding capacity section. The issuance of municipal bonds must be approved by the voters. • Certificates of Participation/Municipal Property Corporations. These are funding mechanisms used by many municipal governments that allow the municipality to borrow funds without voter approval. The debt is paid back much like a bond – over time with interest. The City does not currently qualify for this option. • Lease-Purchase Agreements. This is a method of financing capital projects that lessens the up-front costs to the municipality. While interest is paid, the payoff period is typically a shorter period than bonds and the municipality will own the project at the termination of the agreement. • Improvement Districts. This financing method is used to raise capital for projects in which the residents who benefit from the improvements pay for them over time. • Grants. Federal, state, and county grants are available to finance capital projects. Many of these grants require the municipality to participate either financially or through “in kind” matches. The City currently is aggressively attempting to obtain county, state, and federal grants. • User Fees. Fees paid by service users to maintain existing facilities and develop additional capacity. 13 FY2014 - FY2018 Capital Improvements Plan – Current Revenue Trends El Mirage currently has a 3% sales tax in addition to the state and county sales taxes. Local sales taxes collected have trended upward from $4.1 million in Fiscal-Year 2004 to projected revenues of $5.6 million in Fiscal-Year 2014. Construction sales tax was a substantial part of sales tax revenue in past years. Sales tax revenue from construction is no longer a significant component of City sales tax. Over the last three years the City has stabilized sales tax revenue and signs of growth have begun to emerge. The City is aggressively pursuing retail and commercial development to provide a sustainable sales tax base. The City has both a primary and secondary property tax. The primary property tax is used to pay for a portion of public safety operating costs, while the secondary property tax is used to retire voter approved debt. The total combined tax rate is $3.89 per $100 net assessed valuation in FY2013. The rate has continued to climb as property values have declined. The State of Arizona limits the increase in primary property tax to 2% of the prior year’s levy plus the value of new development. Unlike other municipalities, the City has no Special Assessment Districts to pay for infrastructure, maintenance, and street light expenditures. 14 FY2014 - FY2018 Capital Improvements Plan – Bonding Capacity The most commonly utilized large project municipal financing method in the United States of America is the General Obligation Bond (G.O. Bond). This is the most inexpensive way to finance projects because the bond’s repayment is based on the full taxing authority of the municipality and backed up by real property. Voters would have to approve any property taxes (secondary) instituted to support the issuance of G.O. Bonds. At some point, the voters may be asked to approve additional property tax to support the issuance of G.O. Bonds for desired community projects. The State of Arizona places limits on this type of financing. Before planning to finance future capital improvement through this mechanism, it is important to know how much authority is available under State Statutes. Under Arizona Law, municipalities may issue G.O. Bonds for purposes of water, wastewater, artificial light, open space preserves, and parks and recreational facilities up to an amount not exceeding 20 percent of the secondary assessed value. In addition, Arizona Law allows municipalities to issue G.O. Bonds for all other purposes not listed above up to an amount not exceeding six percent of the valuation. El Mirage’s has voter approved debt for water and sewer projects. This voter approved debt is secured and repaid from water and utility rates and fees. The City has roughly $2.5 million of voter approved water and sewer debt authorized but unissued. Many of the water and sewer projects in this document are intended to be funded by these bonds. Utility rate increases have been approved by the Mayor and Council which will help repay the debt on these bonds. 15 FY2014 - FY2018 Capital Improvements Plan – Plan Implementation The success of a plan or a planning process is measured by the degree of its implementation. Since resources are limited, it is crucial for the City of El Mirage to follow a consistent, objective path to allocate funding for future capital improvements needs. The following implementation program outlines the specific steps necessary to implement the CIP and perform the annual update. General Implementation Guidelines • The El Mirage CIP Five-Year Program is adopted by the City Council and published and widely distributed. • The CIP is updated annually and reviewed and adopted by the City Council each year. • Department heads are responsible for preparing monthly reports on the status of current year capital projects. The reports are compiled by the City Engineer and provided to the City Council at each regularly scheduled Council Meeting. • Citizen input should be sought periodically to determine the desires of the public. Attitudes and circumstances change and informed decision making requires that the City have an up-to-date awareness of what the public’s attitudes are toward community facilities and services and how to pay for them. FY2014 - FY2018 Capital Improvements Plan – Summary and Detail Sheets The following is a document entitled “City of El Mirage, FY2014-FY2018, Capital Improvement Program.” This document summarizes the projects approved for funding in FY2014 and all projects adopted for the Capital Improvement Plan in the out years through FY2018. As indicated, every project is by responsible Fund/Department name and project expenditures are shown by fiscal year and totaled by project across all years. Following this document is the “Capital Project Detail”. It is categorized in Fund/Department order and details each CIP project by providing cost detail, description of the project, and recommended funding source(s). Following the cost detail section, the timeline of the project is restated by year. These are not in any prioritized order. All projects in FY2019+ are for informational purposes only and have not been funded. 16 FY2014 - FY2018 Capital Improvements Plan – Plan Financial Assumptions The following assumptions have been made regarding the inflow and outflow of financial resources: 1. Beginning balances are based on the preliminary 2013-14 budget and bond fund balances. 2. Most revenues are projected to increase by 1% the first year and 2% per year after the first year. a. Exceptions exist in: i. Water, Sewer, and Sanitation are based on the rate study. ii. Photo Enforcement is projected to increase by 1% per year based on declining numbers of citations (no growth is projected the first year). iii. CDBG and other grants are set equal to projected capital and expenditures. iv. Debt Service is based on actual expenditures less beginning balances. v. Capital Streets are based on MAG and McDoT revenue assumptions. b. Revenues are based on 2013-14 budget. 3. Most expenditures are projected to increase by 2% per year. a. Exceptions exist in: i. General Fund expenses are projected to increase by 3% per year based on the heavy reliance on salaries and wage related benefits. ii. Water, Sewer and Sanitation are based on the rate study. iii. Court Enhancement expenses match revenue estimates. iv. Photo Enforcement expenses are based on Court estimates in the first year. v. Debt Service is based on actual schedules for expenditures. vi. Capital Streets expenditures are related to bond cost of issuance. b. Expenditures are based on 2013-14 budget less capital and contingencies except for $200,000 per year in the General Fund. 4. Debt service is based on actual outstanding debt. 5. Bond proceeds are identified in the Capital Streets Fund to keep the city on track with the construction of El Mirage Road. 6. Capital is from the summary sheets included in this document. 7. Transfers in/out are based on the following: a. The rate study for utilities b. Council adopted policies c. A $100,000 annual transfer from the General Fund to the Debt Service Fund d. A $3 million transfer from the General Fund to the Park Improvement Fund to complete the recreation facility. e. A $3 million transfer from the General Fund to the Water Fund to purchase assured water. f. The assumption that the General Fund will cover negative balances in all funds except the utility funds. 8. Reserves are based on Council adopted policies and the rate study. 17 FY2014 - FY2018 Capital Improvements Plan – Revenue Estimates and Fund Balance Summary General Fund 10 Beginning Balance Revenues (1) Expenditures (2) G.O. Bond Proceeds Bond Proceeds Capital Transfers In/(Out) Subtotal Reserve Ending Balance 5 YR FY17-18 Summary 7,170,640 13,750,000 17,135,000 82,381,000 18,782,000 88,596,000 FY13-14 13,750,000 15,830,000 16,687,000 FY14-15 7,669,000 16,147,000 17,188,000 FY15-16 8,781,560 16,470,000 17,704,000 FY16-17 7,638,400 16,799,000 18,235,000 0 0 429,000 (4,795,000) 7,669,000 0 0 172,000 2,325,560 8,781,560 0 0 828,000 918,840 7,638,400 0 0 147,000 1,115,240 7,170,640 0 0 0 1,244,600 6,768,240 0 0 1,576,000 809,240 6,768,240 6,000,000 1,669,000 6,000,000 2,781,560 6,000,000 1,638,400 6,000,000 1,170,640 6,000,000 768,240 6,000,000 768,240 HURF 21 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal Reserve Ending Balance 2014 470,000 1,790,000 2,373,000 65,000 180,000 2,000 2015 2,000 1,826,000 2,420,000 102,000 694,000 0 0 1,863,000 2,468,000 0 605,000 0 0 1,900,000 2,517,000 0 617,000 0 0 1,938,000 2,567,000 0 629,000 0 5 YR Summary 470,000 9,317,000 12,345,000 167,000 2,725,000 0 0 2,000 0 0 0 0 0 0 0 0 0 0 18 2016 2017 2018 Water 53 Beginning Balance Revenues (1) Bond Proceeds Expenditures (2) Debt Service Capital Transfers In/(Out) Subtotal Reserve Ending Balance 2014 (1,587,000) 8,945,000 4,550,000 12,254,500 1,600,000 500,000 1,745,000 (701,500) 2015 (701,500) 8,945,000 0 4,650,500 1,600,000 0 (1,203,000) 790,000 2016 790,000 9,096,000 0 4,897,000 1,600,000 0 (1,236,000) 2,153,000 2017 2,153,000 9,152,000 0 5,143,000 1,600,000 0 (1,269,000) 3,293,000 0 (701,500) 790,000 0 1,818,000 335,000 2,788,000 505,000 5 YR 2018 Summary 3,293,000 (1,587,000) 9,209,000 45,347,000 0 4,550,000 5,400,000 32,345,000 1,600,000 8,000,000 0 500,000 (1,303,000) (3,266,000) 4,199,000 4,199,000 3,352,000 847,000 3,352,000 847,000 Sewer 54 Beginning Balance Revenues (1) Bond Proceeds Expenditures (2) Debt Service Capital Transfers In/(Out) Subtotal Reserve Ending Balance 2014 550,000 3,100,000 700,000 2,603,000 270,000 150,000 (340,000) 987,000 2015 987,000 3,069,000 0 1,701,000 270,000 0 (358,000) 1,727,000 2016 1,727,000 3,092,000 0 1,763,000 270,000 0 (379,000) 2,407,000 2017 2,407,000 3,108,000 0 1,820,000 270,000 0 (400,000) 3,025,000 2018 3,025,000 5,106,000 0 3,887,000 270,000 0 (422,000) 3,552,000 5 YR Summary 550,000 17,475,000 700,000 11,774,000 1,350,000 150,000 (1,899,000) 3,552,000 0 987,000 632,000 1,095,000 1,274,000 1,133,000 1,783,000 1,242,000 2,297,000 1,255,000 2,297,000 1,255,000 Sanitation 52 Beginning Balance Revenues (1) Bond Proceeds Expenditures (2) Debt Service Capital Transfers In/(Out) Subtotal Reserve Ending Balance 2014 (200,000) 1,500,000 0 1,004,500 0 0 (320,000) (24,500) 2015 (24,500) 1,501,000 0 1,035,500 0 0 (297,000) 144,000 2016 144,000 1,501,000 0 1,076,000 0 0 (297,000) 272,000 2017 272,000 1,501,000 0 1,130,000 0 0 (297,000) 346,000 2018 346,000 1,501,000 0 1,185,000 0 0 (297,000) 365,000 5 YR Summary (200,000) 7,504,000 0 5,431,000 0 0 (1,508,000) 365,000 0 (24,500) 86,000 58,000 179,000 93,000 188,000 158,000 198,000 167,000 198,000 167,000 19 Municipal Court 14 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal Reserve Ending Balance 2014 (65,000) 250,000 609,500 0 425,000 500 0 500 2015 500 255,000 622,000 0 367,000 500 2016 500 260,000 634,000 0 374,000 500 2017 500 265,000 647,000 0 382,000 500 0 500 0 500 0 500 5 YR 2018 Summary 500 (65,000) 270,000 1,300,000 660,000 3,172,500 0 0 390,000 1,938,000 500 500 0 500 0 500 Municipal Court Enhancement 15 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal 2014 750,000 440,000 586,000 0 0 604,000 2015 604,000 449,000 449,000 0 0 604,000 2016 604,000 458,000 458,000 0 0 604,000 2017 604,000 467,000 467,000 0 0 604,000 2018 604,000 476,000 476,000 0 0 604,000 5 YR Summary 750,000 2,290,000 2,436,000 0 0 604,000 Reserve Ending Balance 0 604,000 0 604,000 0 604,000 0 604,000 0 604,000 0 604,000 Photo Enforcement 16 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal 2014 1,750,000 2,470,000 1,783,500 0 (990,000) 1,446,500 2015 1,446,500 2,495,000 1,819,000 0 (1,750,000) 372,500 2016 372,500 2,520,000 1,855,000 0 (687,000) 350,500 2017 350,500 2,545,000 1,892,000 0 (676,000) 327,500 2018 327,500 2,570,000 1,930,000 0 (665,000) 302,500 5 YR Summary 1,750,000 12,600,000 9,279,500 0 (4,768,000) 302,500 Reserve Ending Balance 1,446,500 0 0 372,500 0 350,500 0 327,500 0 302,500 0 302,500 20 CDBG 31 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal Reserve Ending Balance 2014 440,000 350,000 790,000 0 0 0 0 0 0 350,000 0 350,000 0 0 0 1,450,000 0 1,450,000 0 0 0 1,100,000 0 1,100,000 0 0 0 1,100,000 0 1,100,000 0 0 5 YR Summary 440,000 4,350,000 790,000 4,000,000 0 0 0 0 0 0 0 0 0 0 0 0 2015 2016 2017 2018 Debt Service 41 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal Reserve Ending Balance 2014 550,000 1,960,000 2,123,500 0 100,000 486,500 2015 486,500 1,960,000 2,130,000 0 100,000 416,500 2016 416,500 1,989,000 2,126,000 0 100,000 379,500 2017 379,500 2,036,000 2,130,000 0 100,000 385,500 2018 385,500 2,026,000 2,127,000 0 100,000 384,500 5 YR Summary 550,000 9,971,000 10,636,500 0 500,000 384,500 245,000 241,500 245,000 171,500 248,625 130,875 254,500 131,000 253,250 131,250 253,250 131,250 Capital Streets 200,000 995,000 7,192,000 2015 7,192,000 0 2,024,000 40,480 80,960 8,424,000 121,440 792,000 2016 792,000 0 8,670,000 173,400 427,760 9,170,000 601,160 292,000 2017 292,000 2,817,000 (2,609,000) 0 427,760 500,000 427,760 0 0 7,612,000 (3,394,000) 0 323,400 4,218,000 323,400 0 5 YR Summary 6,397,000 10,429,000 4,691,000 213,880 1,259,880 22,512,000 2,468,760 0 0 7,192,000 0 792,000 0 292,000 0 0 0 0 0 0 56 Beginning Balance Revenues (1) Bond Proceeds Expenditures (2) Debt Service Capital Transfers In/(Out) Subtotal 2014 6,397,000 0 Reserve Ending Balance 0 21 2018 Capital Park Improvement 65 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal 2014 2,236,000 0 2,236,000 3,000,000 3,000,000 0 Reserve Ending Balance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5 YR Summary 2,236,000 0 2,236,000 3,000,000 3,000,000 0 0 0 0 0 0 0 0 0 0 0 2015 0 0 2016 2017 2018 DIF Police 68 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal 2014 5,495,000 5,000 0 5,500,000 0 0 Reserve Ending Balance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5 YR Summary 5,495,000 5,000 0 5,500,000 0 0 0 0 0 0 0 0 0 0 0 0 2015 0 0 2016 2017 2018 Special Projects 73 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal Reserve Ending Balance 2014 5 YR Summary 2015 2016 2017 2018 0 10,340,000 10,340,000 0 0 0 0 10,547,000 10,547,000 0 0 0 0 10,758,000 10,758,000 0 0 0 0 10,973,000 10,973,000 0 0 0 0 11,192,000 11,192,000 0 0 0 0 53,810,000 53,810,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (1) Revenues increase by 2% annually unless better assumptions are available. (2) Expenditures increased by 2% per year. Base year = FY 13 budget Water/Sewer and Sanitation data from FY 13-14 budget and the rate study dated: 2013 22 Citywide Totals Citywide Total Beginning Balance Revenues (1) Expenditures (2) Debt Service G.O. Bond Proceeds Bond Proceeds Capital Transfers In/(Out) Subtotal Reserve Ending Balance 2014 30,536,000 46,980,000 53,390,500 1,870,000 2015 17,661,500 47,544,000 42,602,480 1,950,960 2016 13,628,060 49,457,000 43,912,400 2,297,760 2017 14,096,900 52,663,000 44,954,000 2,297,760 5 YR 2018 Summary 15,152,140 30,536,000 60,135,000 256,779,000 48,206,000 233,065,380 2,193,400 10,609,880 0 5,250,000 9,844,000 0 17,661,500 0 2,024,000 9,048,000 0 13,628,060 0 8,670,000 11,448,000 0 14,096,900 0 (2,609,000) 1,747,000 0 15,152,140 0 (3,394,000) 5,318,000 0 16,175,740 0 9,941,000 37,405,000 0 16,175,740 7,691,500 9,970,000 7,753,000 5,875,060 9,519,625 4,577,275 11,013,500 4,138,640 12,100,250 4,075,490 12,100,250 4,075,490 FY17-18 FY19+ Total $ 3,718,000 $ 11,206,000 $ 40,728,000 Totals By Funding Source FY13-14 FY14-15 FY15-16 Bonds $ 8,710,000 $ 8,424,000 $ 8,670,000 Fees 550,000 HURF 65,000 CDBG - Photo Funds - 102,000 350,000 - FY16-17 $ - - - - - 550,000 - - - - 167,000 - 4,000,000 1,450,000 1,100,000 1,100,000 500,000 500,000 500,000 - Taxes 519,000 172,000 828,000 147,000 Total $ 9,844,000 $ 9,048,000 $ 11,448,000 $ 1,747,000 23 $ 5,318,000 7,974,600 $ 19,180,600 9,474,600 1,666,000 $ 56,585,600 24 Water Water Water Sewer Sewer 53 53 53 54 54 Engineering 21 Public Works Police 10 31 Police 10 Engineering Police 10 31 Parks 10 Engineering Fire 10 31 Fire 10 Fees Bonds Fees Fees Fees CDBG CDBG CDBG HURF Taxes Taxes Taxes Bonds Taxes Taxes Taxes Fire 10 Vehicle Replacement Police City-wide Traffic Signal Improvements Main Street Sidewalk Improvements Santa Fe Lane Sidewalk Improvements Downtown Street Reconstruction Gateway Park Complex Waterline Varney Road Water Line - Dysart to El Mirage Water/Wastewater Master Plan Lower El Mirage Drainage Improvements Water/Wastewater Master Plan MDC computers in police vehicles Radio Replacement Gentry Park Placeholder Heart Monitors Dual Band Portable Radios Heart Monitors Funding Project Fund Department 50,000 100,000 50,000 250,000 200,000 - 65,000 135,000 147,000 110,000 35,000 2,000 FY13-14 - - - - - 350,000 102,000 140,000 - 32,000 FY14-15 - - - - - 1,100,000 350,000 110,000 718,000 FY15-16 - - - - 1,100,000 110,000 35,000 2,000 FY16-17 EL MIRAGE CAPITAL IMPROVEMENT PLAN SUMMARY - - - - - - 1,100,000 FY17-18 FY19+ - - - - - - 50,000 100,000 50,000 250,000 200,000 3,300,000 350,000 350,000 167,000 495,000 718,000 147,000 110,000 70,000 4,000 32,000 Total 25 Capital/Parks Police 65 68 Bonds Bonds Capital/Streets Photo Funds Engineering Taxes 56 56 Capital/Streets Bonds Total Police Station Facility Northern Parkway Improvements Dysart Road and Cactus Road Intersection Improvements YMCA Facility El Mirage Road Funding Project 56 Fund Department - $ 9,844,000 5,500,000 3,000,000 200,000 FY13-14 - - - - - - 500,000 8,670,000 FY15-16 - - - 500,000 FY16-17 - - 500,000 3,718,000 FY17-18 $9,048,000 $11,448,000 $1,747,000 $5,318,000 8,424,000 FY14-15 EL MIRAGE CAPITAL IMPROVEMENT PLAN SUMMARY - continued 5,500,000 3,000,000 200,000 9,474,600 32,018,000 Total $19,180,600 $56,585,600 - - 7,974,600 11,206,000 FY19+ 26 POLICE POLICE POLICE 10 10 10 FIRE PARKS 10 10 DEPT FUND TAXES TAXES TAXES TAXES TAXES FUNDING GENTRY PARK GENERAL IMPROVEMENTS Improvements to Gentry Park and surrounding ramadas. REPLACEMENT VEHICLES Replace two marked vehicles and two unmarked vehicles due to age related deterioration and decreased value of repairs. MDC COMPUTERS IN VEHICLES Replace MDC computers, including antennas and cabling, in PD vehicles ensuring continuing adherence with the City of Surprise dispatch service IGA. Existing computers are out of warranty. 22 devices are requested allowing for two ready spares. RADIO REPLACEMENT Request for the purchase of 94 handheld mobile radios, plus accessories at an estimated cost of $7,000 per unit plus tax to replace equipment reaching end of life. Additionally, the Federal Communications Commission has issued a nationwide mandate for all public safety radio systems to be narrow-banded by January 1, 2017. This request insures continued public safety communications for the City of El Mirage Police and Fire Departments and compliance with Federal mandates. DUAL BAND PORTABLE RADIOS Purchase four dual band portable radios to replace existing VHF portable radios on loan from Phoenix Fire Department. Current radios do not have the capability to transmit/receive on both 800 MHz and VHF frequencies needed to communicate on emergency scenes. PROJECT/EQUIPMENT 147,000 135,000 110,000 FY13-14 32,000 140,000 FY14-15 718,000 110,000 FY15-16 110,000 FY16-17 FY17-18 FY19+ 32,000 718,000 147,000 495,000 110,000 TOTAL 27 31 ENGINEERING CDBG CDBG 31 ENGINEERING FUNDING HURF DEPT 21 ENGINEERING FUND SANTA FE LANE SIDEWALK IMPROVEMENTS Provide new sidewalks on the south side of Santa Fe Lane between El Mirage Road and 5th Avenue. Funding for design and construction to be requested through CDBG FY15/16 Grant. MAIN STREET SIDEWALK IMPROVEMENTS Provide new sidewalks on the west side of Main Street north of Meyer Lane. This project will also require the relocation of private structures such as existing carports and landscaping to remove them from the City's right of way. Funding for design and construction to be requested through CDBG FY14/15 Grant. CITYWIDE TRAFFIC SIGNAL IMPROVEMENTS Design of various existing signal improvements including; improved computerized control, closed circuit video, pedestrian control, signage, signal preemption, and signal coordination with adjoining agencies. Construction to be partially funded in FY14/15 by a federal Congestion Mitigation and Air Quality (CMAQ) grant totaling $383,495. The remaining costs are the local match. ADOT to award project and complete construction administration as a federal aid project. PROJECT/EQUIPMENT 65,000 FY13-14 350,000 FY14-15 350,000 FY15-16 FY16-17 FY17-18 FY19+ 350,000 350,000 65,000 TOTAL 28 WATER WATER 53 WATER 53 53 PUBLIC WORKS DEPT 31 FUND FEES FEES FEES CDBG FUNDING WATER MASTER PLAN Update existing Water Master Plan including distribution and collection computer models to plan for future improvements to the water system. GATEWAY PARK WATER LINE Add an 8-10" water main to the north side of the Gateway Park complex to provide a second connection to the existing water system (looping the system) providing adequate fire flow for the Police and YMCA facilities and potential additional growth. VARNEY ROAD WATER LINE Design and construction costs to provide approximately 1,000 feet of new 8" water line to provide adequate looping and flow. DOWNTOWN STREET RECONSTRUCTION Streets in Downtown El Mirage are deteriorated and need to be reconstructed. The project will be completed in three phases. Phase I: Roads from Honcho west to Primrose between the Grand Frontage Road and Thunderbird Road. Phase II: Roads from Primrose west to El Mirage Road between the Grand Frontage Road and Thunderbird Road. Phase III: Roads from El Mirage Road west to and including 5th Avenue between Santa Fe (included on project) and Thunderbird Road. PROJECT/EQUIPMENT 50,000 200,000 250,000 FY13-14 FY14-15 1,100,000 FY15-16 1,100,000 FY16-17 1,100,000 FY17-18 FY19+ 50,000 200,000 250,000 3,300,000 TOTAL 29 SEWER SEWER 54 54 56 ENGINEERING DEPT FUND TAXES FEES BONDS FUNDING DYSART ROAD AND CACTUS ROAD INTERSECTION IMPROVEMENTS Design and reconstruction of intersection of Dysart Road and Cactus Road including the NW quadrant to match the existing width of Dysart Road to the north of the intersection WASTEWATER MASTER PLAN Update existing Wastewater Master Plan including distribution and collection computer models to plan for future improvements to the wastewater system. LOWER EL MIRAGE DRAINAGE IMPROVEMENTS In support of the current project that is being managed by the Maricopa County Flood Control District this project will improve existing drainage conditions along the Lower El Mirage Wash from south of Cactus Road to El Mirage Road. The project will include drainage culvert enhancements at El Mirage Road crossings, detention basin reconfiguration, and installation of landscaping enhancements. An IGA with the Flood Control District has been executed. PROJECT/EQUIPMENT 200,000 50,000 100,000 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY19+ 200,000 50,000 100,000 TOTAL 30 CAPITAL/ STREETS CAPITAL/ STREETS CAPITAL/ PARKS 56 65 DEPT 56 FUND BONDS PHOTO FUNDS BONDS FUNDING RECREATION FACILITY WITH POOL The City plans to construct a new recreation facility with pool. The facility will be located adjacent to Gateway Park on approximately 5 acres. Cost includes design, construction, site improvements and furnishings. (no land acquisition cost is included) NORTHERN PARKWAY Northern Avenue is to be widened into an expressway/parkway configuration. Northern Parkway is to be widened as a road of regional significance. Costs include Design Concept Report, design, ROW acquisition, and construction shared between project partners El Mirage, Glendale, Peoria, Maricopa County, and MAG. Regional funding extends beyond the current five year CIP. EL MIRAGE ROAD The City is partnering with McDot and MAG to complete construction of El Mirage Road from Northern to Thunderbird and to complete improvements along Thunderbird Road from Grand Avenue to west of El Mirage Road. The City has bond authorization to pay for its share of the improvements. McDot will provide $6 million and MAG will provide 70% funding up to approximately $36 million. The City intends to accelerate the project to complete improvements in less than five years. The original projections were for the project to take approximately ten years. PROJECT/EQUIPMENT 3,000,000 FY13-14 8,424,000 FY14-15 500,000 8,670,000 FY15-16 500,000 FY16-17 500,000 3,718,000 FY17-18 7,974,600 11,206,000 FY19+ 3,000,000 9,474,600 32,018,000 TOTAL 31 DEPT POLICE FUND 68 BONDS FUNDING POLICE FACILITY Construction of a new police station facility on land designated for City use next Gateway Park. Cost includes design, construction, site improvements and furnishings. (no land acquisition cost is included) The energy efficient facility would house all Police operations, including Administration, Patrol, Investigations, evidence storage, records management and storage, modern IT infrastructure, a community meeting room and a public lobby. PROJECT/EQUIPMENT 5,500,000 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY19+ 5,500,000 TOTAL FY2014 - FY2018 Capital Improvements Plan – Glossary Accrual Basis A basis of accounting in which transactions are recognized at the time they are incurred, as opposed to when cash is received or spent Adoption Formal action by the City Council to approve a document (Budget; Capital Improvement Plan; etc.) for the fiscal year Appropriation Specific amount of monies authorized by the City Council for the purposes of incurring obligations and acquiring goods and services Assessed Valuation A value set upon real property by the County Assessor for the purpose of levying property taxes Base Budget The ongoing expense for personnel, contractual services, commodities, and the replacement of equipment to maintain service levels previously established by the City Council Bonds A certificate of debt guaranteeing a payment of a specified amount of money by a specified future date Budget Financial plan of estimated expenditures and anticipated resources adopted for a specific period of time outlining a plan for achieving Council goals and objectives Capital Items Any item with a purchase price exceeding $5,000 Capital Projects Budget The expenditures of revenues for major capital projects and items such as city buildings, parks, acquisition of land, major street construction and reconstruction, water and sewer lines and any other project which adds to the capital assets or infrastructure of the City 32 Cash Basis A basis of accounting in which transactions are recognized only when cash is increased or decreased CIP Capital Improvement Plan Contingency Monies which have not been allocated to any specific purpose and may only be utilized in conjunction with Council notification. Capital Projects Funds Debt Service This fund accounts for resources providing for the acquisition or construction of all capital facilities and items Principal and interest payments on borrowed funds such as bonds Debt Service Funds Used to account for the accumulation of resources for, and the payment of, general long-term debt, principal and interest Encumbrance Accounting concept that recognizes a commitment to expend resources in the future Enterprise Fund Used to account for the business-type activities of a government. These are activities which are financed and operated in a manner where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges Estimated Revenue The amount of projected revenue to be collected during the fiscal year Expenditure Expenditure Limitation Represents a decrease in fund resources for the acquisition of goods or services An amendment to the Arizona State Constitution that limits annual expenditures of all municipalities. The Economic Estimates Commission sets the limit based upon population growth and inflation. F.T.E. Full Time Equivalent – 2080 hours worked equates to 1.0 full time equivalent position Fiscal Year Any period of twelve consecutive months that establishes the beginning and the ending of financial transactions. For the City of El Mirage this period begins July 1 and ends June 30 33 Fund A set of self-balancing accounts that record revenues and expenditures associated with specific activities Fund Balance Carry over funds due to actual revenues exceeding actual expenditures General Fund The fund used to measure all financial transactions of the municipality except those required by law or agreement to be accounted for in another fund. The general fund is the primary operating fund of the city. General Obligation Type of bond backed by full faith and credit of the City. (G.O.) Bond Grant A contribution by the State or Federal government or other organization to support a particular function. Highway User Revenue Fund (HURF) This revenue source consists of state taxes collected on gasoline, vehicle licenses, and a number of other additional transportation related fees. These funds must be used for street and highway purposes Infrastructure Facilities on which the continuance and growth of a community depend on such as roads, water lines, sewers, public buildings, parks, airports, etc Intergovernmental Revenue received from other governmental agencies (e.g., State Revenue (Shared) Sales Tax, State Income Tax, gasoline tax, motor vehicle license) Long Term Debt Debt with a maturity of more than one year after the date of issuance Maintenance and Operation (M&O) Costs The day-to-day operating and maintenance cost of a municipality including such things as personnel, gas, electric utility bills, telephone expense, reproduction costs, postage and vehicle maintenance Objectives A desired outcome that is measurable and that can be achieved within a specific time frame Operating Budget A budget for the delivery of ongoing City services, to include expenditures such as personal services, contractual services, commodities, and operating capital items 34 Primary Property Tax A limited tax levy used for general government operations. State statute restricts the total levy to a 2% annual increase plus an increase for any new construction and / or annexation Property Tax Rate The amount of tax levied for each $100 of assessed valuation Reserves Money that has been set aside in the event of revenue shortfalls Resources Total monies available for appropriation purposes to include revenues, fund balances, transfers and other financing services (i.e., bond proceeds) Revenue Bond Bonds that are backed by revenues from a specific system (i.e., Water and Sewer Revenue Bonds are payable from water and sewer revenues) Revenue Resources achieved from taxes, user charges/fees, and other levels of government ROW Right of Way Secondary Property Voter approved tax levy which can only be used to retire general Tax bonded debt obligations Special Revenue Funds Used to record the receipt of funding from specific revenue sources (other than special assessments, trusts, or major capital projects) that are legally restricted to expenditure for specific purposes Tax Levy The total amount to be raised by general property taxes for purposes specified in the Tax Levy ordinance Transfer An inter-fund transaction where one fund contributes resources to another fund where the resources are expended 35