Fiscal Years 2016 – 2020 Capital Improvements Plan “Emphasizing Leadership and Excellence in Public Service” “Working Together to Promote a More Successful El Mirage” “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................................................................................................................... 7 List of Appointed Officials ............................................................................................................ 11 Evaluation Criteria ....................................................................................................................... 12 Capital Project Definition............................................................................................................. 13 Needs Assessment.......................................................................................................................... 14 Financial Analysis ........................................................................................................................ 14 Funding Options ........................................................................................................................... 15 Current Revenue Trends ............................................................................................................... 16 Bonding Capacity.......................................................................................................................... 17 Plan Implementation ..................................................................................................................... 18 Summary and Detail Sheets .......................................................................................................... 18 Plan Financial Assumptions ......................................................................................................... 19 Revenue Estimates and Fund Balance Summary .......................................................................... 20 Citywide Totals ............................................................................................................................. 23 Capital Improvement Plan Summary ............................................................................................ 25 Capital Improvement Plan Detail ................................................................................................. 26 Glossary ........................................................................................................................................ 59 Team Members Lana Mook Joe Ramirez Roy Delgado Bob Jones 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 Assistant Finance Director Department Heads Resolution R-15-03-04 submitted for Council approval March 17th, 2015 El Mirage Community Profile Background, Population, and Business. El Mirage is situated on approximately 10 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, Look Trailers, Sutter Masonry, Cemex, Hanson Pipe, Dakota Fabricating, 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, library, and YMCA. 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 recently renovated little league field that draws teams from throughout the Valley for regular play, as well as regional tournaments. Recently completed Basin Park is a 24-acre park and retention basin that boasts grassy areas, trees, and a paved walking path for informal recreational activities. The nationally renowned Pueblo El Mirage Golf Resort, situated on 310 acres, boasts an 18-hole professional golf course and has home choices, as well as a host of indoor and outdoor activities for active seniors. The City Council has been a strong proponent of community special events such as holiday festivals, car shows, and carnivals. By all accounts, residents and others attending the various events are very appreciative of these opportunities to spend fun, quality time with their families and neighbors. El 1 Mirage special events also offer strong support for education, sports, and human services partnerships essential to new business attraction and population growth. 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 $91 million budget to provide services for the city’s 32,000 residents. This year’s budget utilizes the theme “Emphasizing Leadership and Excellence in Public Service” 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 four-year 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. Dr. Spencer A. Isom – 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. Enterprise funds were 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 workshop 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 Factors Affecting Economic Conditions Local Economy. The El Mirage economy was primarily dependent 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 businesses licensed in El Mirage has been rising steadily and currently stands at 1,700. The historic 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 taxes 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 Water Solution. City leaders’ decisions made decades ago to forego applying for Central Arizona Project water allocations resulted in unavoidable water rate increases over the last few years. Beginning in Fiscal Year 2015, however, water rates began stabilizing and are expected to remain stable for the foreseeable future. A series of historic steps are responsible for the City’s resolution of water supply issues. The Arizona Department of Water Resources (ADWR) recommended El Mirage for a CAP allocation in January 2014 and last fall, the City was able to purchase groundwater rights given up or “extinguished” by previous owners, which offsets the City’s groundwater use and assure its water supply for decades. 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. The CIP is revised each year, based on expansion or reduction of the city’s commercial base. 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. 3 Given economic fluctuations 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 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 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 annually updated 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 Improvements Plan for review by the city manager, then council. The Capital Improvement Plan shall include the following: 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 funding sources have been identified to finance a project. At the end of the fiscal year in which a project is completed or acquired, any remaining funds will revert to the fund balance of the funding source. 4 In addition to adopted policies, the city has a number of administrative procedures that may help users better understand the financial framework of the CIP. 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. 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 incurring 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 has three major capital initiatives either started or planned 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 Corridor - The city is partnering with Maricopa County Department of Transportation (McDOT), the Arizona Department of Transportation (ADOT), 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. 5 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: This phase is scheduled for start-up in FY 2015-2016 and will encompass the roadways from Honcho Street west to Primrose Street between the Grand Frontage Road and Thunderbird Road. Phases II and III are scheduled for start-up in FY 2016-2018. Northern Parkway – Northern Avenue is to be widened into an expressway/parkway configuration. The reconfigured Northern Parkway is designed to be a road of regional significance. Sections of the Northern Parkway project are either currently under construction or are already completed. The El Mirage portion of this regional project is slated to begin in fiscal year 2015-2016. Costs including a design concept report, design, right-of-way acquisition, and construction will be shared among project partners El Mirage, Glendale, Peoria, Maricopa County and Maricopa Association of Governments. Foreign Trade Zone - El Mirage is part of a multi-city collaborative in the West Valley known as the Greater Maricopa Foreign Trade Zone. Foreign trade zones (FTZ’s) are government-designated sites where foreign and domestic goods may be stored, assembled, or exhibited for sale without being subjected to U.S. Customs duties and excise taxes. In Arizona, state laws also provide reductions in real and personal property taxes to businesses that qualify for location in these zones. The El Mirage site is illustrated in the lower, red section of the map below. The site consists of approximately 400 acres zoned for commercial and industrial use south of Peoria Avenue. The El Mirage FTZ is an integral part of the City’s economic development future, since it enhances competitiveness in a growing region where businesses have significant choices concerning where they wish to locate 6 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, Mook devoted much of her time to volunteering in El Mirage, pursuing her commitment to do everything she could to 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 participated in 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. She currently serves on the Executive Committee of the Arizona League of Cities and Towns, the Executive Committee of the Maricopa Association of Governments (MAG), the Executive Committee of the Western Maricopa Coalition (Westmarc), the Board of the Valley Metro/Regional Public Transportation Authority, and the Transportation Committee of the National League of Cities. Mayor Mook has provided many years of service to a number of organizations including the Phoenix Suns Charities, the Girl Scouts of America, the U.S. Forest Service (Smokey Bear and Woodsy Owl Fire Prevention Programs), and is a past Vice-President of the Greater Phoenix American Bowling Association. Accomplishments • • • • Played a significant role in improving the City’s image throughout the West Valley and the entire Phoenix Metropolitan area. This included developing a partnership with Luke Air Force Base and Supporting the F-35A mission. Successfully passed an $8 million bond measure to provide El Mirage residents with a community recreational facility with swimming pool and a new police facility. Appointed to the League of Arizona Cities and Towns’ Executive Committee consisting of 25 mayors and councilmembers from across the state. The League provides an important link among the 90 incorporated cities and towns in Arizona representing collective interests at the State Legislature and providing timely information on important municipal issues. Protected basic services such as public safety by successfully advocating for the rehire of four first responders for the Fire Department after they were laid off in 2010. In addition, she encouraged the police department to address speeding throughout the community with the assistance of RedFlex photo radar. 7 • • Worked to develop El Mirage’s future economic base by approving projects to design quality transportation corridors throughout the City. Improved the appearance and quality of life of El Mirage through enhancements to Gentry Park and Grand Avenue Vice Mayor Joe Ramirez Vice Mayor Joe Ramirez has been 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. Ramirez invites residents to learn more about the issues in the community and join him in working toward a better El Mirage. Councilman Roy Delgado Councilman Roy Delgado has served on the El Mirage City Council for 11 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 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 Delgado is also a board member of the Citizens Advisory Committee of the County Library District. He was appointed to the position by Former 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. He retired in January 2014 after years of service as a teacher of hunter safety for the Arizona Game and Fish Department. He is currently a volunteer usher for Luke AFB’s Catholic community; and he helps 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 officers’ associations, Delgado maintains strong ties with the Valley’s military community. 8 Councilman Bob Jones Councilman Robert (Bob) Jones has called Arizona home for over 50 years, and has been a proud El Mirage resident since 2002. Councilman Jones has a diverse business background which includes years of experience in retail management, sales and distribution, and customer service in both large corporate environments, and as a small business entrepreneur. Later in his career, he followed his heart and entered the world of education, spending years as an elementary school teacher until he retired in 2005. Since that time, Jones has focused his time and energy in the El Mirage community. Councilman Jones acted as an advocate for children in El Mirage, working on the task force to add Riverview Elementary School as an El Mirage addition to the Dysart Unified School District. He acquired a charter and introduced a Cub Scout program to El Mirage, serving as a Cub Master. He has also served as a member of the Dysart Community Center’s Board of Directors. Jones is a member of the Cactus Park Homeowners’ Association, and has served as HOA President since 2010. As president, he collaborated with other HOA’s and El Mirage City leaders on community affairs. He was appointed to the El Mirage Planning and Zoning Committee in 2007 and again in 2012, and has served as a committee chairman. He left the P & Z Committee to complete a successful run for City Council in 2014. Bob has six children and nine grandchildren. He has been married to his wife, Cathy for over 15 years. He decided to run for El Mirage City Council to ensure that El Mirage continues to be an incredible place to live and work. Councilman Jack Palladino Born and raised in Chelsea, Massachusetts, Councilman Jack Palladino’s commitment to community began over 40 years ago with his service as a medic in the United States Army. After retiring from active duty, he 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, Palladino’s hard work and perseverance were recognized and he was promoted to management in a U.S.P.S. Boston facility. During this time, he also volunteered as a Little League coach and served with the Knights of Columbus. Shortly after retiring in 2003, Palladino and his wife moved to Arizona where he currently works part time for the Pueblo El Mirage Post Office. The Palladinos have one son, a nine year-old grandson, and a two year-old granddaughter who also live in the West Valley. The couple has been married for 45 years. After attending numerous local City Council meetings and 9 volunteering in the community, Palladino decided to run for El Mirage City Council and was overwhelmingly elected in 2010. Palladino believes that one person can make a difference! Councilman Lynn Selby Born and raised in Los Angeles, California, Councilman Lynn Selby has a business background spanning more than 30 years. He has managed cash flow and inventories, developed yearly budgets, and managed personnel. Selby and his wife, Danielle retired to El Mirage and began attending City Council meetings regularly and volunteering in the community. In attending the Council meetings, Selby became interested in the workings of the City and wanted to give something back to the community he loves and calls home. Selby was elected to the City Council in August 2010. He served in the U.S. Navy and now volunteers his time as an engineer every Sunday from September through May with the Maricopa Live Steamers Club, giving free rides to the public. Selby also helps the El Mirage Fire Department distribute and install free smoke detectors. He represents Operation Lifesaver throughout the State of Arizona, presenting railroad safety programs to government agencies and local organizations. The Selbys have been married for more than 52 years and have three daughters and four grandchildren. 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 38 years and have four adult children and eight grandchildren. The Shaperas moved to El Mirage in 2002. Shapera 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 and is a member of the Thompson Ranch Elementary PTSA. Shapera has also been a proud member of the Elks Lodge for 35 years. As an advocate for the new police station and YMCA recreational facility, Councilman Shapera continues to ensure both buildings will be used to proudly serve the El Mirage community. He strongly supports public safety, and continues working to upgrade City infrastructure within the parameters of affordability. A vocal advocate for Luke Air Force Base, Shapera works with Luke’s leadership toward common goals. Supporting economic development in El Mirage is a priority. Shapera has 10 worked to streamline and assist businesses to open in the City. His new program was adopted by the City Council, which calls for directional signs to help businesses thrive. Shapera is among council members who are strong advocates for the use of solar panels on City buildings, and he was at the forefront of bringing utility savings to City buildings. LIST OF APPOINTED CITY OFFICIALS City Manager – Dr. Spencer A. Isom City Attorney – Robert M. Hall City Magistrate – Monte Morgan 11 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 from 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. 12 Capital Project Definition In order to distinguish between capital items and operating items, the following capital project definition was developed: Projects included in the El Mirage CIP are non-consumable items with a purchase price exceeding $5,000 including expenditures 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. All other projects shall be included in Departmental operating budgets. The CIP is to be used as a guide in decision-making. 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. 13 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 for the next five years along with any costs to complete the project that may be incurred after the fifth year. 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). 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 wants and 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. 14 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. 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. 15 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 million in Fiscal-Year 2005 to revenues of $6.5 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. The City has stabilized sales tax revenue and signs of growth continue to emerge. The City is aggressively pursuing retail and commercial development to provide a sustainable sales tax base. Millions City Sales Tax Collections $7 $6 $3 $5.36 $5.93 $5 $4 $6.46 $5.88 $5.25 $4.92 $5.63 $6.03 $5.46 $6.05 $4.03 $2 $1 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 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 proposed total combined tax rate is $3.54 per $100 net assessed valuation in FY2015. The rate dropped dramatically as property values have begun to rebound significantly from past declines. Values are still below previous highs reached in the last ten years. 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 many other Arizona municipalities, the City has no Special Assessment Districts to pay for infrastructure, maintenance, and street light expenditures. 16 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 have to approve any property taxes (secondary) instituted to support the issuance of G.O. Bonds. 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 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 $4.1 million of voter authorized water/sewer debt capacity remaining and the potential to issue $17.3 million of authorized water/sewer debt before additional voter authorization is required. None of the water and sewer projects in this document are intended to be funded by these bonds. 17 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 updated annually and reviewed and adopted by the City Council each year. • After City Council adoption the CIP is published and widely distributed. • 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. Summary and Detail Sheets The following is a document entitled “City of El Mirage, FY2016-FY2020, Capital Improvement Program.” This document summarizes the projects approved for funding in FY2016 and all projects adopted for the Capital Improvement Plan in the out years through FY2020. As indicated, every project is listed 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 by function and details each CIP project by providing recommended funding source(s), description of the project, and cost detail by fiscal year. These are not in any prioritized order. All project dollars identified in FY2021+ are for informational purposes only and have not been funded. 18 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 2015-16 budget and bond fund balances. 2. Most revenues are projected to increase by 1% per year. a. Exceptions exist in: i. Water, Sewer, and Sanitation are based on the rate study. ii. Photo Enforcement is projected to remain flat based on declining numbers of citations. iii. CDBG, Capital Park Improvement, DIF Municipal Facilities, and Special Projects 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 2014-15 budget. The General Fund has been increased to reflect projected revenues for FY 2014-15. 3. Most expenditures are projected to increase by 3% per year. a. Exceptions exist in: i. Salaries are based on a five year plan recommended by the Council. 1. One new position each year has been added to the General Fund 2. Benefits are projected to increase by 3% unless additional information was available. ii. Water, Sewer and Sanitation are based on the most recent rate study. iii. Court Enhancement expenses match revenue estimates. iv. Photo Enforcement expenses are flat. 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 the 2014-15 budget less capital and contingencies except for $200,000 per year in the General Fund. 4. Debt service is based on projected and actual outstanding debt. 5. Bond proceeds and repayments 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. FY 16 capital does not reflect carryforward projects from the FY 15 budget. 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. 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. 19 Revenue Estimates and Fund Balance Summary 10 Beginning Balance Revenues (1) Expenditures (2) G.O. Bond Bond Proceeds Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY15-16 16,350,500 17,658,000 18,400,000 2,000,000 2,500,000 8,333,000 1,001,500 12,777,000 6,000,000 6,777,000 FY16-17 12,777,000 17,835,000 18,500,000 0 0 536,000 278,000 11,854,000 6,000,000 5,854,000 General Fund FY17-18 FY18-19 11,854,000 9,468,000 18,013,000 18,193,000 19,100,000 19,900,000 0 0 0 0 755,000 130,000 (544,000) 250,500 9,468,000 7,881,500 6,000,000 6,000,000 3,468,000 1,881,500 FY19-20 5 YR Summary 7,881,500 16,350,500 18,375,000 90,074,000 20,400,000 96,300,000 0 2,000,000 0 2,500,000 130,000 9,884,000 359,000 1,345,000 6,085,500 6,085,500 6,000,000 6,000,000 85,500 85,500 HURF 21 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY15-16 (58,500) 1,818,000 1,330,000 930,000 500,500 0 0 0 FY16-17 0 1,836,000 1,360,000 850,000 374,000 0 0 0 FY17-18 FY18-19 0 1,854,000 1,400,000 1,700,000 1,246,000 0 0 0 0 1,873,000 1,440,000 903,500 470,500 0 0 0 FY19-20 0 1,892,000 1,480,000 850,000 438,000 0 0 0 5 YR Summary (58,500) 9,273,000 7,010,000 5,233,500 3,029,000 0 0 0 Water 53 Beginning Balance Revenues (1) Expenditures (2) Debt Service Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY15-16 2,713,500 9,096,000 6,528,500 1,592,000 300,000 (1,236,000) 2,153,000 1,818,000 335,000 FY16-17 2,153,000 9,152,000 5,086,000 1,592,000 65,000 (1,269,000) 3,293,000 2,788,000 505,000 FY17-18 3,293,000 9,209,000 5,363,000 1,592,000 45,000 (1,303,000) 4,199,000 3,352,000 847,000 FY18-19 4,199,000 9,267,000 5,653,000 1,592,000 25,000 (1,338,000) 4,858,000 3,920,000 938,000 FY19-20 5 YR Summary 4,858,000 2,713,500 9,325,000 46,049,000 5,937,000 28,567,500 1,592,000 7,960,000 25,000 460,000 (1,374,000) (6,520,000) 5,255,000 5,255,000 4,490,000 4,490,000 765,000 765,000 20 Sewer 54 Beginning Balance Revenues (1) Expenditures (2) Debt Service Capital Transfers In/(Out) Subtotal Reserve Ending Balance 52 Beginning Balance Revenues (1) Expenditures (2) Transfers In/(Out) Subtotal Reserve Ending Balance 14 Beginning Balance Revenues (1) Expenditures (2) Transfers In/(Out) Subtotal Reserve Ending Balance 15 Beginning Balance Revenues (1) Expenditures (2) Subtotal Reserve Ending Balance FY15-16 3,271,000 3,092,000 1,723,000 310,000 1,240,000 (379,000) 2,711,000 1,274,000 1,437,000 FY15-16 146,000 1,501,000 1,076,000 (297,000) 274,000 179,000 95,000 FY15-16 121,000 362,000 940,000 457,000 0 0 0 FY15-16 1,064,500 403,000 1,467,500 0 0 0 FY16-17 2,711,000 3,108,000 1,780,000 310,000 237,000 (400,000) 3,092,000 1,783,000 1,309,000 FY17-18 3,092,000 3,124,000 1,865,000 310,000 125,000 (422,000) 3,494,000 2,297,000 1,197,000 FY18-19 3,494,000 3,140,000 1,954,000 310,000 425,000 (422,000) 3,523,000 2,812,000 711,000 FY19-20 5 YR Summary 3,523,000 3,271,000 3,156,000 15,620,000 2,047,000 9,369,000 310,000 1,550,000 125,000 2,152,000 (468,000) (2,091,000) 3,729,000 3,729,000 3,328,000 3,328,000 401,000 401,000 FY16-17 274,000 1,502,000 1,130,000 (297,000) 349,000 188,000 161,000 Sanitation FY17-18 FY18-19 349,000 368,000 1,502,000 1,502,000 1,186,000 1,246,000 (297,000) (297,000) 368,000 327,000 198,000 208,000 170,000 119,000 FY19-20 5 YR Summary 327,000 146,000 1,501,000 7,508,000 1,308,000 5,946,000 (297,000) (1,485,000) 223,000 223,000 218,000 218,000 5,000 5,000 FY16-17 0 366,000 950,000 584,000 0 0 0 FY16-17 0 407,000 407,000 0 0 0 Municipal Court FY17-18 FY18-19 0 0 370,000 374,000 960,000 980,000 590,000 606,000 0 0 0 0 0 0 Municipal Court Enhancement FY17-18 FY18-19 0 0 411,000 415,000 411,000 415,000 0 0 0 0 0 0 FY19-20 0 378,000 990,000 612,000 0 0 0 FY19-20 0 419,000 419,000 0 0 0 5 YR Summary 121,000 1,850,000 4,820,000 2,849,000 0 0 0 5 YR Summary 1,064,500 2,055,000 3,119,500 0 0 0 21 16 Beginning Balance Revenues (1) Expenditures (2) Transfers In/(Out) Subtotal Reserve Ending Balance FY15-16 1,146,500 1,800,000 1,500,000 (1,146,500) 300,000 0 300,000 FY16-17 300,000 1,800,000 1,500,000 (300,000) 300,000 0 300,000 Photo Enforcement FY17-18 FY18-19 300,000 300,000 1,800,000 1,800,000 1,500,000 1,500,000 (300,000) (300,000) 300,000 300,000 0 0 300,000 300,000 FY19-20 5 YR Summary 300,000 1,146,500 1,800,000 9,000,000 1,500,000 7,500,000 (300,000) (2,346,500) 300,000 300,000 0 0 300,000 300,000 CDBG 31 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY15-16 4,500 550,000 0 550,000 (4,500) 0 0 0 FY16-17 FY17-18 41 Beginning Balance Revenues (1) Expenditures (2) Transfers In/(Out) Subtotal Reserve Ending Balance FY15-16 580,500 2,026,000 2,192,000 100,000 514,500 253,250 261,250 FY16-17 514,500 2,026,000 2,196,000 100,000 444,500 253,250 191,250 Debt Service FY17-18 FY18-19 444,500 377,500 2,026,000 2,026,000 2,193,000 2,193,000 100,000 100,000 377,500 310,500 253,250 253,250 124,250 57,250 FY19-20 5 YR Summary 310,500 580,500 2,056,000 10,160,000 2,193,000 10,967,000 100,000 500,000 273,500 273,500 257,250 257,250 16,250 16,250 56 Beginning Balance Revenues (1) Bond Proceeds Expenditures (2) Debt Service Capital Transfers In/(Out) Subtotal Ending Balance FY15-16 1,317,500 7,740,000 11,679,500 350,500 430,000 18,211,500 1,003,500 2,748,500 2,748,500 FY16-17 2,748,500 1,774,000 0 0 430,000 500,000 930,000 4,522,500 4,522,500 Capital Streets FY17-18 FY18-19 4,522,500 4,522,500 0 0 0 0 0 0 430,000 430,000 500,000 500,000 930,000 930,000 4,522,500 4,522,500 4,522,500 4,522,500 FY19-20 5 YR Summary 4,522,500 1,317,500 9,122,000 18,636,000 (11,679,500) 0 0 350,500 430,000 2,150,000 500,000 20,211,500 930,000 4,723,500 1,965,000 1,965,000 1,965,000 1,965,000 0 0 0 0 0 0 0 0 0 250,000 0 250,000 0 0 0 0 FY18-19 0 250,000 0 250,000 0 0 0 0 FY19-20 0 250,000 0 250,000 0 0 0 0 5 YR Summary 4,500 1,300,000 0 1,300,000 (4,500) 0 0 0 22 66 Beginning Balance Revenues (1) Expenditures (2) Transfers In/(Out) Subtotal Reserve Ending Balance FY15-16 (500) 0 0 500 0 0 0 FY16-17 0 0 0 0 0 0 0 DIF Municipal Facilities FY17-18 FY18-19 0 0 0 0 0 0 0 FY19-20 73 Beginning Balance Revenues (1) Expenditures (2) Subtotal Reserve Ending Balance 0 10,296,000 10,296,000 0 0 0 0 10,296,000 10,296,000 0 0 0 Special Projects FY17-18 FY18-19 0 0 10,296,000 10,296,000 10,296,000 10,296,000 0 0 0 0 0 0 Citywide Total Beginning Balance Revenues (1) Expenditures (2) Debt Service G.O. Bond Bond Proceeds Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY15-16 26,656,500 56,342,000 45,803,500 2,332,000 2,000,000 14,179,500 29,564,500 0 21,478,000 9,524,250 11,953,750 FY16-17 21,478,000 50,102,000 43,205,000 2,332,000 0 0 2,188,000 0 23,855,000 11,012,250 12,842,750 FY17-18 23,855,000 48,855,000 44,274,000 2,332,000 0 0 3,375,000 0 22,729,000 12,100,250 10,628,750 FY15-16 FY16-17 0 0 0 0 0 0 0 5 YR Summary (500) 0 0 500 0 0 0 0 10,296,000 10,296,000 0 0 0 5 YR Summary 0 51,480,000 51,480,000 0 0 0 0 0 0 0 0 0 0 FY18-19 22,729,000 49,136,000 45,577,000 2,332,000 0 0 2,233,500 0 21,722,500 13,193,250 8,529,250 FY19-20 FY19-20 5 YR Summary 21,722,500 26,656,500 58,570,000 263,005,000 46,570,000 225,429,500 2,332,000 11,660,000 0 2,000,000 (11,679,500) 2,500,000 1,880,000 39,241,000 0 0 17,831,000 17,831,000 14,293,250 14,293,250 3,537,750 3,537,750 (1) Revenues increase by 1% annually unless better assumptions are available. (2) Expenditures increased by 3% per year. Base year = FY 15 budget Water/Sewer and Sanitation data from utility rate study dated: May 2013 23 Capital Totals By Funding Source Sewer Fees Water Fees Bonds/Fees CDBG Photo Funds Bonds/Grants Taxes Total FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 Five Year Total $ 1,240,000 50,000 250,000 550,000 500,000 17,711,500 9,263,000 $29,564,500 $ 237,000 65,000 500,000 1,386,000 $2,188,000 $ 125,000 45,000 250,000 500,000 2,455,000 $3,375,000 $ 425,000 25,000 250,000 500,000 1,033,500 $2,233,500 $ 125,000 25,000 250,000 500,000 980,000 $1,880,000 $ 2,152,000 210,000 250,000 1,300,000 2,500,000 17,711,500 15,117,500 $39,241,000 24 10 10 10 10 10 10 10 10 10 10 10 21 21 21 21 31 31 53 53 53 53 53 54 54 54 54 54 54 54 54 54 54 56 56 Fund # 25 Funding Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes CDBG CDBG Bonds/Fees Water Fees Water Fees Water Fees Water Fees Sewer Fees Sewer Fees Sewer Fees Sewer Fees Sewer Fees Sewer Fees Sewer Fees Sewer Fees Sewer Fees Sewer Fees Bonds/Grants Photo Funds Dept Facilities Engineering Fire Fire Fire Fire IT Parks Police Police Police HURF HURF HURF HURF Engineering Engineering Water Water Water Water Water Sewer Sewer Engineering Sewer Sewer Sewer Sewer Sewer Sewer Sewer Streets Streets Grand Total HVAC Replacement (2 Units) City Hall Heart Monitors Radios(portable) Replacement Vehicle (Expedition) Replacement Apparatus (Fire Engine) Design/Installation Fiber Optic Cable El Mirage Rd Project Playground Improvements (4 parks) Replacement Vehicles Police Radio Replacement MDC Computers in vehicles Pavement Management Butler Drive Reconstruction Varney Road Sidewalk Skid Steer Loader + Attachments El Mirage Road Waterline Replacement Downtown Street Reconstruction Varney Road Waterline Water Vehicle Replacement Well Site Building Repairs Distribution System New Valve Program Water Emergency Operation Plan (EOP) Pumps and Motor Replacements WW Reclamation Facility Design Mountain View Sanitary Sewer Fine Screens Replacement Project Odor Scrubber Repairs Chemical Storage Containment Wastewater Reclamation Facility Laboratory Improvements Wastewater Emergency Operation Plan (EOP) Reuse Station Improvement Project Fire and Smoke Alarm System Installation El Mirage Road Improvements Northern Parkway Improvements Project $ 29,564,500 300,000 17,711,500 500,000 165,000 550,000 40,000 60,000 125,000 25,000 250,000 25,000 550,000 $ 2,188,000 500,000 32,000 20,000 60,000 20,000 25,000 20,000 125,000 850,000 850,000 80,000 150,000 228,000 100,000 16,000 42,000 FY16-17 145,000 150,000 380,000 13,000 7,600,000 37,000 8,000 FY15-16 EL MIRAGE CAPITAL IMPROVEMENT PLAN SUMMARY $ 3,375,000 500,000 125,000 20,000 25,000 250,000 850,000 150,000 850,000 850,000 $ 2,233,500 500,000 125,000 300,000 25,000 250,000 53,500 130,000 FY18-19 130,000 450,000 25,000 FY17-18 $ 1,880,000 500,000 125,000 25,000 250,000 850,000 130,000 FY19-20 $ 39,241,000 13,000 7,600,000 37,000 24,000 42,000 450,000 125,000 145,000 690,000 608,000 150,000 4,250,000 850,000 80,000 53,500 550,000 750,000 250,000 25,000 40,000 125,000 20,000 625,000 300,000 165,000 550,000 40,000 60,000 32,000 20,000 60,000 300,000 17,711,500 2,500,000 Five Year Total $ 22,693,000 5,100,000 10,618,500 6,974,500 Balance to Complete Project $ 61,934,000 13,000 7,600,000 37,000 24,000 42,000 450,000 125,000 145,000 690,000 608,000 150,000 9,350,000 850,000 80,000 53,500 550,000 750,000 250,000 25,000 40,000 125,000 20,000 625,000 300,000 165,000 550,000 40,000 60,000 32,000 20,000 60,000 300,000 28,330,000 9,474,500 Project Total The 2 HVAC units on the Customer Service building are over 10 years old, have become unreliable, and do not run efficiently. The units cost about $6,500 each. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10Taxes General FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $13,000 $13,000 $13,000 $13,000 $13,000 $13,000 26 Design and construct a new City Hall at the northwest corner of Mountain View and El Mirage Road. This building will house the Administration, Finance, Development and Community Services, IT, and Human Resources Departments. A Council Chambers will also be included in the facility. The project will include the north half of the Mountain View Road, civic plaza, employee and public parking, Police Department's emergency access drive, and irrigation ditch relocation. The land required for the building and the Mountain View Road will be donated by the John F. Long Family. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10General Taxes FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $750,000 $750,000 $750,000 $6,850,000 $6,850,000 $6,850,000 $7,600,000 $7,600,000 $7,600,000 27 The request is to replace an aging Physio Control Life Pack 15 (LP15). The LP15 heart monitor with the serial number 387267794 was placed into service on November 1st, 2011. The estimated costs will be $38,000. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund 10General Funding FY 15/16 Source: Taxes FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $37,000 $37,000 $37,000 $37,000 $37,000 $37,000 28 The FY 15/16 request is for a narrowed banded radio replacing an outdated VHF XTS 5000 that is currently in service requiring the user to work only on a hazard radio channel. This limits the ability to change to the assigned channel and deck to monitor dispatch creating a safety concern when other units are operating on a deck and channel not available to this radio. The FY 16/17 request is for two radios bringing the total to 13 as required by Phoenix Regional Dispatch. Phoenix Regional Dispatch has implemented a personal accountability system that requires each radio to be identified with a specific unit and assignment, this will reflect internally as four radios per engine company in which we have two, three radios for the Medic unit and two radios for the Battalion unit (incident commander). The addition of the two radios will complete this project. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10General Taxes FY 15/16 FY 16/17 $8,000 $8,000 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $16,000 $24,000 $24,000 $16,000 $24,000 $24,000 29 The FY 16/17 request is for a replacement vehicle identified as BC121. This vehicle will be repurposed as the Fire Chiefs vehicle. The vehicle that will be repurposed is a 2003 Ford Expedition with 55, 233 miles. The vehicle that will be replaced is a 2002 Ford Expedition, this vehicle has 109,000 miles. We are requesting a 2015 Dodge RAM 2500 4WD priced at approximately $42,000. Additionally, the 2003 currently has an electrical problem that we have been chasing for approximately 18 months, during the repurposing it is likely to clear the electrical issue while extending the life of that vehicle. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding FY 15/16 Source: 10General Taxes FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $42,000 $42,000 $42,000 $42,000 $42,000 $42,000 30 The FY 17/18 request is for replacement apparatus (Fire Engine) rotating out the American Le France (ALF) which is 14 years old with 141,974 miles. We are looking to stay with the manufacturer Pierce. Base model pricing is about $450,000. Pricing may change based on equipment. The apparatus itself will have a 1250-1500 GPM pump with a 500 gallon water tank. There is a potential for a trade in or an outright sale of the ALF apparatus. A replacement cycle is being drafted for all Fire vehicles. Currently draft replacement timelines are: 14- 20 years of service for large fire apparatus with 5-10 years of front line service and 10 years back up service. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding FY 15/16 Source: 10General Taxes FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $450,000 $450,000 $450,000 $450,000 $450,000 $450,000 31 Request to fund design and installation of high speed fiber optic cable into conduit (El Mirage Road Project) to connect the City facilities. The project will follow the phases of the El Mirage Road project. When finished, it will provide the City with its own Fiber connecting the facilities, increasing the speed and reducing the costs associated with leased lines. Projected payback period from leased line savings is approximately 4 years from project completion. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: FY 15/16 FY 16/17 10 480 Taxes $10,000 10 480 Taxes $90,000 $100,000 FY 17/18 FY 18/19 FY 19/20 5 YEAR PROJECT TOTAL TOTAL $10,000 $10,000 $25,000 $115,000 $115,000 $25,000 $125,000 $125,000 32 Cost of labor and materials of $7,500 per park to replace existing sand with wood chips for three pocket parks that have not yet been switched to wood chips. Additionally, the playground equipment in the pocket parks owned and maintained by the City are in need of replacement due to age and damaged or missing parts. Many of the plastic parts are hard and brittle from the heat and sun exposure and are also stained with remnants of graffiti that has been removed. The City has 8 pockets parks it is responsible for maintenance and two of them have had the playground equipment replaced about 6 years ago. The remaining 6 need the equipment replaced. Replacement equipment is estimated to cost $20,000 per park. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL 10Taxes General $122,500 $122,500 $122,500 10Taxes General $22,500 $22,500 $22,500 $145,000 $145,000 $145,000 33 This request is to continue the staggered replacement for the Police Department fleet. This will enable the City to keep the fleet from reaching the end of their economic and safety life cycles during the same year. Marked patrol units consist of 18 vehicles, of those 13 were put in service between 2007 and 2010. Nine of those have accumulated more than 100,000 miles. Three of those have accumulated more than 120,000 miles. Additionally, the Department has 16 fleet vehicles for the Detectives Unit, Code Enforcement, Jail Transport, and Administration which includes one 1999 marked pickup truck, one 2001 DUI van and 8 more that were put in service between 2006 and 2009. FY15/16 - increase the allocation by $40,000 to replace three (3) marked police vehicles. FY 2016/17 - increase the allocation by $40,000 to replace three (3) marked patrol vehicles. FY 17/18 - increase the allocation by $20,000 to replace two (2) marked patrol vehicles and one (1) unmarked vehicle. FY 18/19 - increase the allocation by $20,000 to replace two (2) marked patrol vehicles and one (1) unmarked vehicle. FY18/19 allocate $130,000 for two (2) marked patrol vehicles and one (1) unmarked vehicle. Cost per marked patrol vehicle, including two-tone paint, emergency lighting, decals, and prisoner barrier are approximately $49,000. Cost for the unmarked detective vehicles with a covert emergency lights package or the administrative vehicle are approximately $29,000 each. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10General Taxes FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR PROJECT TOTAL TOTAL $150,000 $150,000 $130,000 $130,000 $130,000 $690,000 Annual $150,000 $150,000 $130,000 $130,000 $130,000 $690,000 Annual 34 Purchase 80 handheld and mobile radios, plus accessories at an estimated cost of $7,600 each. Reallocate purchase over two fiscal years, purchasing 50 radios in FY 15-16 (reducing the allocation from $718,000 to $380,000 and purchasing 30 radios in FY 16-17 for an allocation of $228,000; total reduction over the two years of $110,000. This replacement is necessary as the radios are nearing the end of their life cycle and to comply with the future radio system upgrades anticipated to be completed by the end of FY 17/18. The staggered replacement will alleviate replacing the entire inventory at the same time in future budget cycles. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10General Taxes FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $380,000 $228,000 $608,000 $608,000 $380,000 $228,000 $608,000 $608,000 35 This request is for the replacement of MDC computers, including antennas and cabling, in PD vehicles based on the anticipated end of life cycle. The MDC is a critical tool for the officers on the street for information and completion of reports. Updating the computer will ensure continued adherence with the City of Surprise dispatch service IGA to maintain compatible equipment with their system. Cost of the MDC, cabling and vehicle mounts are approximately $6,200 each. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10General Taxes FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 36 The purpose of the Pavement Management Plan is to perform cost effective street improvements by properly matching the maintenance and rehabilitation methods to the pavement condition to extend the life of the City streets, which will enhance the safety and quality of the City’s transportation system and community appearance. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 21 – HURF FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL Taxes $850,000 $850,000 $850,000 $850,000 $850,000 $4,250,000 Annual $850,000 $850,000 $850,000 $850,000 $850,000 $4,250,000 Annual 37 Reconstruct Butler Drive from just west of El Mirage Road to 127th Ave. The project will include new curb & gutter along with complete replacement of the roadway. This project is in anticipation of the Butler Drive extension between 127th Ave to Dysart Rd which will be constructed with the Northern Parkway project. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding FY 15/16 FY 16/17 Source: 21HURF Taxes FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 38 Construct approximately 5,800 SF of sidewalk on the north side of Varney Road between El Mirage Road and 125th Ave. The project will also include the relocation of the existing APS cabinet. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 21HURF Taxes FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR PROJECT TOTAL TOTAL $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 39 This request is to replace the City's Skid Steer Loader and attachment used by the Public Works Streets Division. The current Skid Steer Loader is 13 years old and breaks down often, which affects scheduling and the ability efficiency perform the mission of the Department. Over the past three years $5,500 has been spent on repairs and it is anticipated to increase going forward. The Skid Steer Loader is used for alley and right of way cleanup, grading and dirt work, cleaning of washes, asphalt work, concrete work, and other work performed by the Department. The attachment requested is a trencher attachment, which will be used for trenching for electrical or irrigation repairs in the ROW. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 21 – HURF Taxes FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $53,500 $53,500 $53,500 $53,500 40 Replacement of the existing waterline along El Mirage Road between Thunderbird Road and Santa Fe Lane with a new 16" Ductile Iron Pipe (DIP) line. This project will also include the replacement of existing fire hydrants and addition of new fire hydrants where required. The project will be constructed with the EL Mirage Road project. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 31 – CDBG CDBG FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $550,000 $550,000 $550,000 $550,000 $550,000 $550,000 41 Street improvements in downtown CDBG eligible area; the project will entail complete reconstruction of roadway surface, curb & gutter, sidewalk, and other ancillary items. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 31CDBG CDBG FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $250,000 $250,000 $250,000 $750,000 $750,000 $250,000 $250,000 $250,000 $750,000 $750,000 42 This project includes the design and construction costs to provide approximately 1,100 feet of a new 8” Ductile Iron Pipe (DIP) water line from 129th Ave to west of 127th Ave to provide adequate looping and flow in this area. This project will include 3 new fire hydrants. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund 53Water Funding Source: Bonds/ Fees FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 43 The vehicle being replaced is a 2001 Ford Sport Trac (# 8258) with 73,000 miles. This vehicle was seized by the PD years ago and passed on to PW. Although the mileage doesn’t seem high, the accuracy is unknown. This vehicle has become unreliable and is difficult to use due to the excessive wear. The vehicle will be replaced with a similar 4 door pickup. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 53Water Fees FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 44 Building repairs needed at two of the City's well sites (Sunnyvale & Cottonwood). Corrosion of the block walls due to the use of sodium chloride during onsite generation of Chlorine has caused significant structural damages. The repairs would include replacing the damaged block walls and coating the new walls with a sealant that will prevent future damage. Repairs are estimated to be $20,000 for each building. Sunnyvale will be repaired first due to the damage being more severe than Cottonwood. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Fund Funding Source: Design Land Equipment Buildings 53Water Improvements Total Fees FY 15/16 FY 16/17 FY 17/18 FY 18/19 $20,000 $20,000 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $20,000 $40,000 $40,000 $20,000 $40,000 $40,000 45 The Water Division’s mission is to provide safe and reliable potable water to its customers through a well maintained infrastructure system. These funds are to assist in the replacement of inoperable water valves as the City performs valve maintenance. Fully functioning valves help to limit the number of service disruptions, water system isolation during main breaks and maintenance, and preserve public health and safety. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 53Fees Water FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $25,000 $25,000 $25,000 $25,000 $25,000 $125,000 Annual $25,000 $25,000 $25,000 $25,000 $25,000 $125,000 Annual 46 The Emergency Operations Plan consists of written procedures that encompass the activities necessary to prepare the City of El Mirage Public Works (water and wastewater) staff to respond to operational emergencies caused by accidents, natural occurrences, technology and man-made events. This is required by Arizona Administrative Code, Title 18, Chapter 4, §204 and A204 Emergency Operation Plans (Water Systems) and Contingency Plan (Wastewater Treatment Plant) Cost: $20,000 Drinking Water and $20,000 for Wastewater. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Fund Funding Source: 53Fees Water Improvements 54Fees Sewer Total FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $40,000 $40,000 $40,000 47 Replace a combination of three pumps or motors each year due to equipment failure or having reached the life cycle and no longer supported. Replacement is suggested to be done routinely for proper operation of the treatment facility with the interest of the public's health, safety, and welfare in mind. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 54 – Fees Sewer FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR PROJECT TOTAL TOTAL $125,000 $125,000 $125,000 $125,000 $125,000 $625,000 Annual $125,000 $125,000 $125,000 $125,000 $125,000 $625,000 Annual 48 Design phase of an expansion of the Wastewater Reclamation Facility to meet wastewater demands. Design is required when the existing plant daily processing reaches 80% of capacity. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $300,000 $300,000 $300,000 $300,000 54 – Fees Sewer 49 Construction of approximately 1000’ new sanitary sewer extension along El Mirage Road from the existing sewer manhole just south of Mountain View alignment to Mountain View Road, then west along Mountain View Road to connect future development west of El Mirage Road. To be constructed in anticipation of El Mirage Road improvement project. Any utility infrastructure must be completed prior to the roadway widening construction. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund 54Sewer Funding Source: Fees FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $35,000 $35,000 $35,000 $130,000 $130,000 $130,000 $165,000 $165,000 $165,000 50 This project is to replace the current fine screens system with new, more efficient equipment. The two current units are 13 years old and are not performing as they should. This is causing more solids to build up in the basins and accelerated wear on other equipment. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 54Sewer Fees FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $550,000 $550,000 $550,000 $550,000 $550,000 $550,000 51 This project includes the replacement of the chemical pumps and all PVC piping. The current pumps have worn seals, diaphragms, and are leaking. The cost to rebuild the pumps is the same as a replacement pump. Purchasing new pumps is the better option as they will be much more efficient than the current pumps, even if rebuilt. The PVC piping needs to be replaced because the new pumps will require re-piping of the system and all of the piping has become brittle with age. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 54Sewer Fees FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 52 This project is to replace the damaged chemical storage tanks. The tanks are plastic and are currently leaking as age has made them hard and brittle. This would also include the installation of new PVC piping, which is the original piping installed when the plant was constructed. In addition, the concrete containment area is damaged due to the leaking chemical tank and will be replaced as well. This will include concrete rehabilitation, berm replacement, and a chemical resistant coating applied to the new concrete. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 54Sewer Fees FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 53 The Wastewater Reclamation Facility Laboratory (lab) needs to be brought to proper standards. The improvements include chemical resistant countertops, laboratory grade ventilation system, and minor remodeling. When the lab was originally constructed, flat Formica countertops were used. Since harsh chemicals are used, epoxy or stainless steel countertops, with an edge to hold liquid spills, are needed. The minor remodeling is to relocate the existing cabinetry to make the lab more efficient and some other small modifications. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 54Sewer Fees FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 54 Replace the current pumps with higher capacity, submersible pumps along with new controls associated with the new equipment. The current system is outdated and replacement parts and equipment are not in production any longer. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 54Sewer Fees FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 55 This project is to install a fire and smoke detection/suppression system at the Wastewater Reclamation Facility. This will include buildings A, B1, B2, and C, D, E, and F. Currently the WRF does not have any of this equipment at the facility because it was not required when the facility was originally constructed. There have been two fires at the facility due to failing electrical equipment that have caused extensive damage. A fire and smoke/suppression system will provide early warning and reduce the amount of fire and smoke damage done to vital equipment and City structures. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 54Sewer Fees FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 56 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. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 56Capital Streets Bonds/ Grants FY 15/16 FY 16/17 FY FY 17/18 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $17,711,500 $17,711,500 $28,330,000 $17,711,500 $17,711,500 $28,330,000 57 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. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 56Capital Streets FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL Photo $500,000 Funds $500,000 $500,000 $500,000 $500,000 $2,500,000 $9,474,500 $500,000 $500,000 $500,000 $500,000 $500,000 $2,500,000 $9,474,500 58 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 Non-consumable items with a purchase price exceeding $5,000 Capital Projects Budget Cash Basis 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 A basis of accounting in which transactions are recognized only 59 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 60 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 Primary Property A limited tax levy used for general government operations. State 61 Tax 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 62