Fiscal Years 2017 – 2021 Capital Improvements Plan Design Renderings of New City Hall Under Construction “Continuing a Logical and Organized Approach to Governance and Development” “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................................................................................................................... 8 List of Appointed Officials ............................................................................................................ 12 Evaluation Criteria ....................................................................................................................... 13 Capital Project Definition............................................................................................................. 14 Needs Assessment.......................................................................................................................... 15 Financial Analysis ........................................................................................................................ 15 Funding Options ........................................................................................................................... 16 Current Revenue Trends ............................................................................................................... 17 Bonding Capacity.......................................................................................................................... 18 Plan Implementation ..................................................................................................................... 19 Summary and Detail Sheets .......................................................................................................... 19 Plan Financial Assumptions ......................................................................................................... 20 Revenue Estimates and Fund Balance Summary .......................................................................... 21 Citywide Totals ............................................................................................................................. 25 Revenue Estimates and Fund Balance Summary w/o Photo Enforcement Operations ................ 27 Capital Improvement Plan Summary ............................................................................................ 28 Capital Improvement Plan Detail ................................................................................................. 29 Glossary ........................................................................................................................................ 61 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 Deputy City Manager/ Administration Assistant Finance Director Christy Eusebio Department Heads Resolution R-16-03-06 submitted for Council approval March 1st, 2016 El Mirage Community Profile Background, Population, and Business. Considered the gateway to the Northwest Valley of the Greater Phoenix Metro Area, El Mirage is situated on approximately 10 square miles. 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 33,532 according to the 2014 census estimates. El Mirage has become a thriving community of active residents keen on providing schools and amenities and attracting businesses while retaining a community spirit. The City’s affordable housing, small town feel, and proximity to Phoenix have attracted young working families seeking their first homes, retirees looking for community cohesion and a less hurried pace, and entrepreneurs seeking expansion into new markets. The City’s logo symbolizes the Agua Fria River, as well as the rich soil and distant mountains that drew so many here long ago. Its words are simple, alluding to the “Grand Heritage” rooted in humble migrant beginnings, and the promise of a “Bright Future” that is the foundation on which El Mirage continues to distinguish itself as a livable, affordable city for all ages. Location El Mirage is located in the heart of the rapidly growing West Valley, approximately 19 miles northwest of downtown Phoenix. The City is minutes away from Luke Air Force Base, the USAF’s largest fighter pilot training facility in the world. U.S. Highway 60 (Grand Avenue) and a BNSF rail line border the City’s northern edge, supporting economic development and easy access to Loop 101 and 303, two of the areas busiest regional highways. 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. 1 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 a few 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. Newly completed Basin Park is a 24-acre park and retention basin that boasts grassy areas, trees, and a paved walking path for passive 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 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 councilmanager 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 $97 million budget to provide services for the City’s 33,532 residents. This year’s budget utilizes the theme “Continuing a Logical and Organized Approach to Governance and Development.” Policymaking and legislative authority are vested in a 2 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. Types and Levels of Services. The City of El Mirage provides a full range of services including police and fire protection, roadway Dr. Spencer A. Isom – maintenance and construction, recreational and cultural activities, health City Manager 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. Factors Affecting Economic Conditions Local Economy. The economic goal is to create a community that provides our residents the opportunity to purchase any good or service they desire without having to leave our City limits. El Mirage is approaching residential build out and subsequently has turned its focus toward retail and industrial growth resulting in the opening and expansion of a number of businesses within the City in recent years. In addition, the number of businesses licensed in El Mirage currently stands at 883. The historic recession and weaker than expected recovery have made significant commercial growth challenging, resulting in an 3 overreliance on state shared revenues. 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 2014- 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 in the fall of 2014 the City was able to purchase groundwater rights given up or “extinguished” by previous owners, which offsets the City’s groundwater use and assures 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. 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. 4 Relevant Financial Policies. In June 2012, the 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 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. 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. 5 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 issued bonds to pay for its share of the improvements. McDoT is providing $6 million and MAG is providing 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. 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: started in 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 2016-2018. 6 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 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 7 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. • 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. 8 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. 9 Councilman Bob Jones the El Mirage community. 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 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 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! 10 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 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. 11 LIST OF APPOINTED CITY OFFICIALS City Manager – Dr. Spencer A. Isom City Attorney – Robert M. Hall City Magistrate – Monte Morgan 12 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. 13 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. 14 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. 15 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. 16 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 $4.9 million in 2005-2006 to revenues of $6.7 million projected for 2015-2016. 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 $8 $7 $6 $5 $4 $5.63 $5.88 $5.36 $5.25 $6.05 $5.93 $4.92 $6.15 $5.46 $6.74 $6.46 $3 $2 $1 $0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 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. As a result of changes to State law regarding property valuation and rates the City uses per capita information to compare its tax levies to other cities and itself historically. The City compares favorably both historically and to other cities on a per capita basis. 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. 17 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. 18 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, FY2017-FY2021, Capital Improvement Program.” This document summarizes the projects approved for funding in 2016-2017 and all projects adopted for the Capital Improvement Plan in the out years through 2020-2021. 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. 19 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 2016-17 budget and bond fund balances. 2. Most revenues are projected to increase between 1% and 2% 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 until 2020-21 based on declining numbers of citations. iii. CDBG 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 not directly under City control are based on the 2015-16 budget. c. The General Fund has been increased to reflect projected revenues for 2015-16. 3. Most expenditures are projected to increase between 2% and 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, CDBG, Dial-A-Ride, and Police Towing expenses match revenue estimates. iv. Photo Enforcement expenses are flat until 2020-21. 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 2015-16 budget less capital and contingencies of $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. 201617 capital does not reflect carryforward projects from the 2015-16 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. 20 Revenue Estimates and Fund Balance Summary General Fund 5 YR FY20-21 Summary 9,473,000 16,504,000 18,401,000 90,029,000 21,339,000 100,555,000 180,000 2,091,000 1,581,500 4,049,500 7,936,500 7,936,500 Fund #10 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal FY16-17 16,504,000 17,510,000 18,573,000 621,000 1,434,500 16,254,500 FY17-18 16,254,500 17,860,000 19,586,000 895,000 (220,500) 13,413,000 FY18-19 13,413,000 18,039,000 20,135,000 219,000 594,500 11,692,500 FY19-20 11,692,500 18,219,000 20,922,000 176,000 659,500 9,473,000 Reserve Ending Balance 6,000,000 10,254,500 6,000,000 7,413,000 6,000,000 5,692,500 6,000,000 3,473,000 6,000,000 1,936,500 HURF Fund #21 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY16-17 122,500 1,750,000 1,200,000 850,000 177,500 0 0 0 FY17-18 FY18-19 FY19-20 FY20-21 0 1,785,000 1,230,000 1,700,000 1,145,000 0 0 1,803,000 1,270,000 904,000 371,000 0 0 1,821,000 1,300,000 879,000 358,000 0 0 1,839,000 1,330,000 850,000 341,000 0 5 YR Summary 122,500 8,998,000 6,330,000 5,183,000 2,392,500 0 0 0 0 0 0 0 0 0 0 0 Water Fund #53 Beginning Balance Revenues (1) Expenditures (2) Debt Service Capital Transfers In/(Out) Subtotal Reserve Ending Balance 6,000,000 1,936,500 FY16-17 3,679,000 9,260,000 5,739,000 1,592,000 547,000 (1,269,000) 3,792,000 FY17-18 3,792,000 9,260,000 6,012,000 1,592,000 32,000 (1,303,000) 4,113,000 FY18-19 4,113,000 9,267,000 6,263,000 1,592,000 0 (1,338,000) 4,187,000 2,788,000 1,004,000 3,352,000 761,000 3,920,000 267,000 5 YR FY19-20 FY20-21 Summary 4,187,000 4,551,000 3,679,000 9,325,000 9,385,000 46,497,000 5,995,000 6,284,000 30,293,000 1,592,000 1,592,000 7,960,000 0 0 579,000 (1,374,000) (1,412,000) (6,696,000) 4,551,000 4,648,000 4,648,000 4,490,000 61,000 5,065,000 (417,000) 5,065,000 (417,000) 21 Sewer Fund #54 Beginning Balance Revenues (1) Expenditures (2) Debt Service Capital Transfers In/(Out) Subtotal FY16-17 2,615,000 3,108,000 1,786,000 310,000 287,000 (400,000) 2,940,000 FY17-18 2,940,000 3,124,000 1,875,000 310,000 132,000 (422,000) 3,325,000 FY18-19 3,325,000 3,140,000 1,961,000 310,000 125,000 (445,000) 3,624,000 FY19-20 3,624,000 3,156,000 2,057,000 310,000 125,000 (468,000) 3,820,000 5 YR FY20-21 Summary 3,820,000 2,615,000 3,172,000 15,700,000 2,159,000 9,838,000 310,000 1,550,000 425,000 1,094,000 (492,000) (2,227,000) 3,606,000 3,606,000 Reserve Ending Balance 1,783,000 1,157,000 2,297,000 1,028,000 2,812,000 812,000 3,328,000 492,000 3,844,000 (238,000) 5 YR FY20-21 Summary 532,000 290,000 1,575,000 7,875,000 1,373,000 6,243,000 (297,000) (1,485,000) 437,000 437,000 Sanitation Fund #52 Beginning Balance Revenues (1) Expenditures (2) Transfers In/(Out) Subtotal Reserve Ending Balance FY16-17 290,000 1,575,000 1,130,000 (297,000) 438,000 FY17-18 438,000 1,575,000 1,186,000 (297,000) 530,000 FY18-19 530,000 1,575,000 1,246,000 (297,000) 562,000 FY19-20 562,000 1,575,000 1,308,000 (297,000) 532,000 188,000 250,000 198,000 332,000 208,000 354,000 218,000 314,000 229,000 208,000 Court Fund #14 Beginning Balance Revenues (1) Expenditures (2) Transfers In/(Out) Subtotal Reserve Ending Balance FY16-17 88,000 315,000 880,000 477,000 0 0 0 3,844,000 (238,000) 229,000 208,000 0 318,000 900,000 582,000 0 0 321,000 920,000 599,000 0 0 324,000 930,000 606,000 0 0 330,000 958,000 628,000 0 5 YR Summary 88,000 1,608,000 4,588,000 2,892,000 0 0 0 0 0 0 0 0 0 0 0 FY17-18 FY18-19 FY19-20 FY20-21 22 Court Enhancement Fund #15 Beginning Balance Revenues (1) Expenditures (2) Subtotal FY16-17 64,000 375,000 439,000 0 Reserve Ending Balance 0 379,000 379,000 0 0 383,000 383,000 0 0 387,000 387,000 0 0 395,000 395,000 0 5 YR Summary 64,000 1,919,000 1,983,000 0 0 0 0 0 0 0 0 0 0 0 FY17-18 0 0 FY18-19 FY19-20 FY20-21 Photo Enforcement Fund #16 Beginning Balance Revenues (1) Expenditures (2) Transfers In/(Out) Subtotal Reserve Ending Balance FY16-17 1,133,000 1,800,000 900,000 (1,133,000) 900,000 FY17-18 900,000 1,800,000 900,000 (900,000) 900,000 FY18-19 900,000 1,800,000 900,000 (900,000) 900,000 FY19-20 900,000 1,800,000 900,000 (900,000) 900,000 0 900,000 0 900,000 0 900,000 0 900,000 5 YR FY20-21 Summary 900,000 1,133,000 1,836,000 9,036,000 927,000 4,527,000 (900,000) (4,733,000) 909,000 909,000 0 909,000 CDBG Fund #31 Beginning Balance Revenues (1) Capital Subtotal Reserve Ending Balance FY16-17 FY17-18 FY18-19 FY19-20 0 909,000 5 YR Summary FY20-21 0 0 0 0 0 250,000 250,000 0 0 250,000 250,000 0 0 250,000 250,000 0 0 0 0 0 0 750,000 750,000 0 0 0 0 0 0 0 0 0 0 0 0 0 23 Debt Service Fund #41 Beginning Balance Revenues (1) Expenditures (2) Transfers In/(Out) Subtotal Reserve Ending Balance FY16-17 451,000 2,030,000 2,210,000 100,000 371,000 FY17-18 371,000 2,030,000 2,210,000 100,000 291,000 FY18-19 291,000 2,030,000 2,210,000 100,000 211,000 FY19-20 211,000 2,120,000 2,210,000 100,000 221,000 254,000 117,000 254,000 37,000 254,000 (43,000) 265,000 (44,000) 5 YR FY20-21 Summary 221,000 451,000 2,120,000 10,330,000 2,210,000 11,050,000 100,000 500,000 231,000 231,000 265,000 (34,000) 265,000 (34,000) FY18-19 FY19-20 FY20-21 3,024,500 2,975,000 368,500 0 9,122,000 4,787,000 0 (11,679,000) (2,675,000) 865,000 865,000 0 500,000 500,000 500,000 1,315,500 1,315,500 450,500 2,975,000 368,500 2,431,000 2,975,000 368,500 2,431,000 5 YR Summary 1,300,000 15,683,000 (14,354,000) 3,005,000 2,500,000 5,307,000 2,431,000 2,431,000 Capital Streets Fund #56 Beginning Balance Revenues (1) Bond Proceeds Debt Service Capital Transfers In/(Out) Subtotal Ending Balance FY16-17 1,300,000 1,774,000 0 410,000 500,000 910,000 3,074,000 3,074,000 FY17-18 3,074,000 0 0 865,000 500,000 1,315,500 3,024,500 3,024,500 Dial-A-Ride (LTAF) Fund #23 Beginning Balance Revenues (1) Expenditures (2) Capital Subtotal Reserve Ending Balance FY16-17 164,000 96,000 90,000 170,000 0 0 0 0 97,000 97,000 0 0 0 98,000 98,000 0 0 0 99,000 99,000 0 0 0 101,000 101,000 0 0 5 YR Summary 164,000 491,000 485,000 170,000 0 0 0 0 0 0 0 0 0 0 0 FY17-18 FY18-19 FY19-20 FY20-21 24 Police Towing Fund #28 Beginning Balance Revenues (1) Expenditures (2) Subtotal Reserve Ending Balance FY16-17 18,500 71,000 89,500 0 0 72,000 72,000 0 0 73,000 73,000 0 0 74,000 74,000 0 0 75,000 75,000 0 5 YR Summary 18,500 365,000 383,500 0 0 0 0 0 0 0 0 0 0 0 FY17-18 0 0 FY18-19 FY19-20 FY20-21 Special Projects Fund #73 Beginning Balance Revenues (1) Expenditures (2) Subtotal Reserve Ending Balance FY16-17 101,000 10,338,000 10,439,000 0 FY17-18 FY18-19 FY19-20 FY20-21 0 10,338,000 10,338,000 0 0 10,338,000 10,338,000 0 0 10,338,000 10,338,000 0 0 10,338,000 10,338,000 0 5 YR Summary 101,000 51,690,000 51,791,000 0 0 0 0 0 0 0 0 0 0 0 0 0 (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 Red Oak study dated: May 2013 Citywide Total Beginning Balance Revenues (1) Expenditures (2) Debt Service G.O. Bond Proceeds Bond Proceeds Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY19-20 24,151,500 58,610,000 46,520,000 2,767,000 5 YR FY20-21 Summary 19,865,500 26,530,000 54,354,000 260,971,000 47,489,000 228,066,500 1,902,000 12,515,000 FY16-17 26,530,000 50,002,000 43,475,500 2,312,000 FY17-18 27,769,500 48,888,000 44,785,000 2,767,000 FY18-19 25,596,500 49,117,000 45,797,000 2,767,000 0 0 2,975,000 0 27,769,500 11,013,000 16,756,500 0 0 3,509,000 0 25,596,500 12,101,000 13,495,500 0 0 0 0 (11,679,000) (2,675,000) 1,998,000 1,930,000 1,955,000 0 0 0 24,151,500 19,865,500 20,198,500 13,194,000 14,301,000 15,403,000 10,957,500 5,564,500 4,795,500 0 (14,354,000) 12,367,000 0 20,198,500 15,403,000 4,795,500 25 Capital Totals By Funding Source Sewer Fees Water Fees CDBG Grants Photo Funds Bonds/Grants Taxes Total FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 Five Year Total 287,000 547,000 170,000 500,000 1,471,000 $2,975,000 132,000 32,000 250,000 500,000 2,595,000 $3,509,000 125,000 250,000 500,000 1,123,000 $1,998,000 125,000 250,000 500,000 1,055,000 $1,930,000 425,000 1,094,000 579,000 750,000 170,000 2,500,000 7,274,000 $12,367,000 500,000 1,030,000 $1,955,000 26 Revenue Estimates and Fund Balance Summary (Without Photo Enforcement Operations) Fund #10 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal FY16-17 16,504,000 17,510,000 18,573,000 621,000 1,434,500 16,254,500 FY17-18 16,254,500 17,860,000 19,586,000 895,000 (670,000) 12,963,500 General Fund FY18-19 12,963,500 18,039,000 20,135,000 219,000 145,000 10,793,500 Reserve Ending Balance 6,000,000 10,254,500 6,000,000 6,963,500 6,000,000 4,793,500 Fund #15 Beginning Balance Revenues (1) Expenditures (2) Subtotal Reserve Ending Balance Fund #16 Beginning Balance Transfers In/(Out) Subtotal Reserve Ending Balance FY16-17 63,500 67,400 130,900 0 0 0 FY16-17 1,133,000 (1,133,000) 0 FY19-20 10,793,500 18,219,000 20,922,000 176,000 10,000 7,924,500 6,000,000 1,924,500 Court Enhancement FY18-19 FY19-20 0 0 0 68,000 69,000 70,000 68,000 69,000 70,000 0 0 0 FY17-18 0 0 0 0 6,000,000 (561,500) FY20-21 0 0 6,000,000 (561,500) 0 71,000 71,000 0 5 YR Summary 63,500 345,400 408,900 0 0 0 0 0 0 0 0 5 YR Summary 1,133,000 (1,133,000) 0 0 0 0 0 0 0 Photo Enforcement FY17-18 FY18-19 FY19-20 0 0 0 0 0 0 0 0 0 0 0 FY20-21 5 YR Summary 7,924,500 16,504,000 18,401,000 90,029,000 21,339,000 100,555,000 180,000 2,091,000 632,000 1,551,500 5,438,500 5,438,500 FY20-21 0 0 0 0 Citywide Total Beginning Balance Revenues (1) Expenditures (2) Debt Service Bond Proceeds Capital Subtotal FY16-17 26,364,500 47,894,900 42,293,400 2,312,000 0 2,975,000 26,679,000 FY17-18 26,679,000 46,777,500 43,599,500 2,767,000 0 3,509,000 23,581,000 FY18-19 FY19-20 FY20-21 5 YR Summary 23,581,000 21,211,000 15,999,500 26,364,500 47,003,500 56,493,500 52,195,000 250,364,400 44,608,500 45,328,500 46,263,500 222,093,400 2,767,000 2,767,000 1,902,000 12,515,000 0 (11,679,500) (2,675,000) (14,354,500) 1,998,000 1,930,000 1,955,000 12,367,000 21,211,000 15,999,500 15,399,000 15,399,000 Reserve Ending Balance 11,012,750 15,666,250 12,100,750 11,480,250 13,193,750 8,017,250 14,301,250 1,698,250 15,403,000 (4,000) 15,403,000 (4,000) 27 Fund # 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 21 21 21 21 23 31 53 53 53 53 54 54 54 54 54 54 54 56 28 Dept ComDev Fire Fire Fire Fire IT IT IT IT Police Police Police Police Police Police PW - Parks PW - Parks PW-Fleet HURF HURF HURF PW-Streets LTAF Engineering IT PW - Water Water Water IT PW - Sewer Sewer Sewer Sewer Sewer Sewer Streets Funding Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Grants CDBG Water Fees Water Fees Water Fees Water Fees Sewer Fees Sewer Fees Sewer Fees Sewer Fees Sewer Fees Sewer Fees Sewer Fees Photo Funds Grand Total Plotter Radios(portable) Replacement Vehicle (Expedition) Replacement Apparatus (Fire Engine) Replacement Vehicle (Expedition) Addition Design/Installation Fiber Optic Cable El Mirage Rd Project Server Replacements Firewall Replacement Technology Refresh MDC Computers in vehicles Pole Camera Spillman NIBERS Spilllman HR module Radio Replacement (reduced from $228k to $28k) Vehicles Skate Plaza Addition Relocate Community Garden Vehicle Replacement Pavement Management Butler Drive Reconstruction Skid Steer Loader + Attachments Vehicle Replacement Bus Pullout Downtown Street Reconstruction Technology Refresh Waterline - Palm and Alto Street Well Site Building Repairs Water Emergency Operation Plan (EOP) Technology Refresh Vactor Truck Repairs Pumps and Motor Replacements WW Reclamation Facility Design Wastewater Reclamation Facility Laboratory Improvements Wastewater Emergency Operation Plan (EOP) Reuse Station Improvement Project Northern Parkway Improvements Project $ EL MIRAGE CAPITAL IMPROVEMENT PLAN SUMMARY $ 3,509,000 500,000 32,000 20,000 60,000 500,000 2,975,000 125,000 7,000 20,000 250,000 12,000 50,000 125,000 7,000 500,000 20,000 20,000 170,000 $ 850,000 29,000 850,000 850,000 850,000 1,998,000 500,000 125,000 250,000 54,000 172,000 47,000 FY18-19 168,000 20,000 25,000 30,000 23,000 150,000 450,000 FY17-18 7,000 28,000 200,000 20,000 115,000 8,000 13,000 33,000 6,000 100,000 FY16-17 33,000 16,000 42,000 $ 1,930,000 500,000 125,000 250,000 29,000 850,000 176,000 FY19-20 $ 1,955,000 500,000 125,000 300,000 850,000 180,000 FY20-21 $ 12,367,000 Five Year Total 33,000 16,000 42,000 450,000 6,000 125,000 30,000 13,000 103,000 150,000 8,000 20,000 7,000 28,000 896,000 20,000 115,000 29,000 4,250,000 850,000 54,000 29,000 170,000 750,000 19,000 500,000 40,000 20,000 7,000 50,000 625,000 300,000 32,000 20,000 60,000 2,500,000 Replace the City's primary color plotter/scanner. The existing plotter/scanner is used to print GIS maps and other color exhibits and signs for nearly every City Department and for our business partners. The maps are used for infrastructure planning and development and to present during council meetings and work sessions to provide a visual representation of a given initiative. Other uses include printing enlarged monthly special event posters and signs, the senior center activity calendar and menu, and other requests. The existing plotter/scanner was purchased in May, 2006. Since then, we have plotted over 120,793 square feet of paper. The technology built into the plotter is no longer supported by the manufacturer; any malfunction to the control box would require total replacement of the plotter/scanner system. The new plotter technology will also lower our cost in ink purchases. The plotter/scanner combo equipment will take up less room than our current setup. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Fund Funding Source: Design Land Equipment 10-540 Buildings Improvements Total Taxes FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 29 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 10General Funding FY 16/17 Source: Taxes FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 30 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. An additional $6,000 was requested in FY16/17 to outfit the vehicle with a lighting and striping package. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10General Taxes FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $48,000 $48,000 $48,000 $48,000 $48,000 $48,000 31 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 16/17 Source: 10General Taxes FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $450,000 $450,000 $450,000 $450,000 $450,000 $450,000 32 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 four years from project completion. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10 General FY 16/17 Taxes $10,000 10 Taxes General $90,000 $100,000 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR PROJECT TOTAL TOTAL $10,000 $10,000 $25,000 $115,000 $115,000 $25,000 $125,000 $125,000 33 Purchase four replacement server hypervisors to update the City's Virtual Server Farm. These servers will be over seven years old at this point, past warranty and past their useful life expectancy. Estimated cost of the hardware is $7,500 each for a total of $30,000. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10 Taxes General FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR PROJECT TOTAL TOTAL $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 34 This project will replace the firewalls in use at both City Hall and the Fire Station. The current firewalls will go end of life at the end of 2017 and should be replaced at that time. The project includes a total of four firewalls (two at $4,000 and two at $2,500) for a total of $13,000. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10 Taxes General FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR PROJECT TOTAL TOTAL $13,000 $13,000 $13,000 $13,000 $13,000 $13,000 35 This CIP request represents a replacement of all the computers within the City once they have reached the five year mark. Due to the age of the computers the replacements are estimated as follows: FY17 - Replace 30 computers to facilitate the move to City Hall (16 computers will have reached five years old in this FY) FY18 - Replace 32 computers that will have reached five years old FY19 - Replace 36 computers that will have reached five years old (majority of these are in PD) Assumptions: 1. Computers have a useable life of five years in the environment before the speed and cost of repairs make them obsolete 2. Computer costs were averaged to $1300 per computer as costs will vary depending on a desktop, All-in-one, laptop or workstation. 3. Standard Warranty is three years and adding additional years may be sought depending on budget 4. Monitors will be replaced on an as-needed basis, but monitor replacement costs were assumed as part of these figures 5. Taxes are included in estimated costs. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Equipment Equipment Equipment Total Fund Funding Source: FY 16/17 FY 17/18 FY 18/19 10 Taxes General 53Fees Water 54Fees Sewer $33,000 $23,000 $47,000 $7,000 $40,000 FY 19/20 FY 20/21 5 YEAR PROJECT TOTAL TOTAL $103,000 $103,000 $12,000 $19,000 $19,000 $7,000 $7,000 $7,000 $129,000 $129,000 $42,000 $47,000 36 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 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 37 Request is to purchase a police pole camera as an investigative tool to monitor, prevent and suppress criminal activities, such as overt or covert surveillance, and intelligence. It would allow the streaming of images contemporaneously/real time allowing monitoring and subsequent police response, especially in geographic areas that are not conducive to surveillance. Pole cameras are often used for investigative purposes such as drug and human trafficking, stolen property (auto theft and bicycle rings), and other criminal activities which are manpower and resource-intensive. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10General Taxes FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 38 This request is for the purchase of the NIBRS Module, allowing the conversion from the current Uniform Crime Reporting summary based system to NIBRS. The conversion is required for all Law Enforcement Agencies to be complete by sometime in 2019 and mandated by the FBI. The change will be significant, and labor intensive requiring the convertion from classifing and reporting criminal activities for 8 basic offenses, to classifying and reporting criminal activities for 59 offenses, plus the categorizing of individual aspects of each of those offenses. Dual reporting will be required for a minimum of two years. Additional staffing will be required for this conversion. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10General Taxes FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 39 Request to purchase the Spillman Personnel Module, a component of our existing records management system. This module will replace an antiquated, unsupported access data base system which is currently used to track personnel and training information including position information (start date, termination/retirement date, position, supervisor), personal contact information (home address, phone number, emergency contact information), and training information (classes attended, continuing and proficiency hours). Sworn personnel are required to have multiple hours of continuing and proficiency hours every year in order to maintain their Arizona certification. This will provide a more stable tracking environment, supported in the Spillman system. The first year’s maintenance is included. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10General Taxes FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 40 Police Radio Replacement - Authorized funds will be used to purchase four of the five remaining mobile radios for the three Motorcycles, and Command Van; not the Crime Scene Van. The radios plus accessories are estimated at $6,800 each for approximately $28,000. This would satisfy the department's radio inventory replacement. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10General Taxes FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $28,000 $28,000 $28,000 $28,000 $28,000 $28,000 41 An eight year vehicle replacement program has been created. The program will permit the timely replacement of vehicles before they become unrealiable. It is estimated that over an eight year period most patrol vehicles will reach 100,000 miles of service use. Non-patrol vehicles will be replaced with dodge pickups on a similar time frame, however they may be used by other departments after that period of time if the vehicle is still reliable. This year’s identified replacement vehicles are four Ford Crown Victoria marked units. Over the course of the five year capital plan, 12 patrol and 8 non-patrol vehicles will be replaced. Note: Cost per marked patrol vehicle, including two-tone paint, emergency lighting, radio installation, decals, and prisoner barrier is approximately $49,000. Unmarked detective vehicles with a covert emergency light package or administrative vehicle are approximately $29,000. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10General Taxes FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR PROJECT TOTAL TOTAL $200,000 $168,000 $172,000 $176,000 $180,000 $896,000 Annual $200,000 $168,000 $172,000 $176,000 $180,000 $896,000 Annual 42 Currently the south ramp of the skate plaza at Gateway Park does not have a platform for users to stand on. The suggested improvement is to add a 24" platform that would run the length of the south ramp of the skate plaza, enhancing the safety and usefulness of the amenity. A split face wall would include a 96 inch by 32 inch section with the title “City of El Mirage” in cast lettering. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10Taxes General FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 43 The El Mirge Community Garden will be relocated from the southeast corner of El Mirage Road and Thunderbird to another City owned parcel. This capital request is inclusive of all costs required to move the garden to the new location. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10Taxes General FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $115,000 $115,000 $115,000 $115,000 $115,000 $115,000 44 The vehicle being replaced is unit 4939, a 2007 Ford F-150 with over 100,000 miles. This vehicle has reached the mileage and age threshold for replacement. The vehicle will be replaced with a similar Dodge pickup. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10Taxes General FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $29,000 $29,000 $29,000 $29,000 $29,000 $29,000 45 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 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 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 46 Reconstruct Butler Drive from just west of El Mirage Road to 127th Avenue The project will include new curb and gutter along with complete replacement of the roadway. This project is in anticipation of the Butler Drive extension between 127th Avenue to Dysart Road 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 16/17 Source: 21HURF Taxes FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 47 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 to efficiently perform its functions. 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 Streets division. The attachment requested is a trencher attachment, which will be used for trenching for electrical or irrigation repairs in the right of way. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 21 – HURF Taxes FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $54,000 $54,000 $54,000 $54,000 48 The vehicle being replaced is unit #8072, a 2007 Ford F-150 with over 100,000 miles. This vehicle has reached the mileage and age threshold for replacement. The vehicle will be replaced with a similar Dodge pickup. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 21HURF Taxes FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $29,000 $29,000 $29,000 $29,000 $29,000 $29,000 49 Construction of a Bus Pullout for passenger loading and offloading on Thunderbird Road, between Primrose Street and Poppy Street. The Regional Public Transportation Authority authorized the use of lottery funds for the full cost of the improvement. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund 23LTAF Funding FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 Source: Grants 5 YEAR TOTAL PROJECT TOTAL $170,000 $170,000 $170,000 $170,000 $170,000 $170,000 50 Street improvements in downtown CDBG eligible area; the project will entail complete reconstruction of roadway surface, curb and 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 16/17 FY 17/18 FY 18/19 FY 19/20 $250,000 $250,000 $250,000 $250,000 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $250,000 $750,000 $750,000 $250,000 $750,000 $750,000 51 Remove and replace the existing fences along the utility easement between Alto Street and Palm Street and between Thunderbird Road and Well Street to easily access the area in the event of a water break. A field review was attempted of as many parcels as possible to better understand the work to be involved in order to complete the removal and replacement, and recommend an estimated cost. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 Source: 53Fees Water 5 YEAR TOTAL PROJECT TOTAL $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 52 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 16/17 FY 17/18 $20,000 $20,000 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $20,000 $40,000 $40,000 $20,000 $40,000 $40,000 53 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 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $40,000 $40,000 $40,000 54 The current Combination Sewer Cleaning Truck, unit #8698, is a 1996 Vactor with 196,000 miles. The truck is used to clean the City's sewer system and respond to emergency sewer blockages. Due to the age of the truck, repairs are needed to ensure it's reliable and operating properly. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 54Sewer Fees FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 55 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 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 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 56 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: 54 – Fees Sewer FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $300,000 $300,000 $300,000 $300,000 57 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 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 58 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 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 59 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 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL Photo $500,000 Funds $500,000 $500,000 $500,000 $500,000 $2,500,000 $8,974,500 $500,000 $500,000 $500,000 $500,000 $500,000 $2,500,000 $8,974,500 60 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 when cash is increased or decreased 61 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 Fund A set of self-balancing accounts that record revenues and expenditures associated with specific activities 62 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 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 63 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 64