Fiscal Years 2018 – 2022 Capital Improvements Plan “Realizing Our Potential” “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 ........................................................................................... 5 List of Elected Officials................................................................................................................... 9 List of Appointed Officials ............................................................................................................ 13 Evaluation Criteria ....................................................................................................................... 14 Capital Project Definition............................................................................................................. 15 Needs Assessment.......................................................................................................................... 16 Financial Analysis ........................................................................................................................ 16 Funding Options ........................................................................................................................... 17 Current Revenue Trends ............................................................................................................... 18 Bonding Capacity.......................................................................................................................... 19 Plan Implementation ..................................................................................................................... 20 Summary and Detail Sheets .......................................................................................................... 20 Plan Financial Assumptions ......................................................................................................... 21 Revenue Estimates and Fund Balance Summary .......................................................................... 22 Citywide Totals ............................................................................................................................. 26 Capital Improvements Plan Summary .......................................................................................... 28 Capital Improvements Plan Detail ............................................................................................... 29 Glossary ........................................................................................................................................ 58 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 Deputy City Manager Assistant Finance Director James Shano, Deputy City Manager Department Heads Resolution R-17-01-02 submitted for Council approval January 17th, 2017 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 Hohokam, an ancient Native American culture, were the earliest inhabitants of what is known today as El Mirage. The Hohokam occupied a wide area of south-central Arizona from roughly Flagstaff south to the Mexican border. They are thought to have originally migrated north out of Mexico around 300 BC to become the most skillful irrigation farmers in the Southwest. The ingenious Hohokam developed an elaborate irrigation network using only stone instruments and organized labor. They were commonly known as the “Canal Builders.” In 1867, most of the Hohokam canals were retrenched and used for farming. Federal irrigation projects constructed in the 20th century provided a more consistent and assured water supply throughout the Phoenix valley for agriculture. During the early 1930‟s, migrant farm workers came to El Mirage to help build the canals and harvest the acres of roses, cotton, and other crops that would come to define the City‟s agricultural heritage. They settled on the west bank of the Agua Fria River and founded El Mirage in 1937 to provide stability and education for future generations. El Mirage was incorporated in 1951. At the time of incorporation, the City was primarily a compact residential community. Since its incorporation, the City has transcended its agricultural beginnings to become a vibrant, diverse community with a current population of 33,935 according to the 2015 census estimates. El Mirage has 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 mission is to offer exemplary service to all who live, work, and visit El Mirage. We take great pride in treating each citizen equally and professionally, in a manner that fosters continued confidence in the City‟s leadership. 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. 1 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 and the City of El Mirage proudly supports the men and women of Luke Air Force Base and their mission. 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. El Mirage is part of a collaborative effort to build the Northern Parkway transportation corridor. This project will provide access to the Loop 303, connecting to Interstate 10 and Interstate 17. Economy El Mirage has adopted initiatives to attract new commercial and industrial businesses to the City. Impact fees normally charged for infrastructure expansion have been eliminated and El Mirage is part of a multi-jurisdictional effort in the West Valley known as the Greater Maricopa Foreign Trade Zone (FTZ). The FTZ is a government designated, 400-acre site at the City‟s southern end where foreign and domestic goods may be stored, assembled, or exhibited for sale exempted from U.S. Customs duties and excise taxes. The FTZ is an integral part of future business development. Retail expansion in El Mirage is also a significant economic driver due to its potential for generating tax revenues, creating jobs, and drawing new visitors and residents. In recent years, several new retailers – most representing national chains – have located to El Mirage including, Valero, Auto Zone, Goodwill Industries, Burger King, Subway, and Enterprise Rent-A-Car. Public safety and recreation have been the focus of voter-approved bonds in recent years. As a result, a new fire station, new police station, Northwest Valley Family YMCA facility, and a new City Hall, are among the City‟s most ambitious projects to address the significant community needs spurred by the influx of new residents and businesses. In fact, the City‟s population grew from 5,001 residents in 1990 to 31,767 residents in 2010 according to the U.S. Census Bureau. It is anticipated the City will continue to experience growth in the next decade, and City leaders are committed to keeping pace with such growth through fiscal stewardship and sound financial management. 2 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 provide the City with a sound industrial base. Luke Air Force Base, located one mile 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. History 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 was 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 a variety of housing 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 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 Dr. Spencer A. Isom – City Manager 3 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 $90 million budget to provide services for the City‟s residents. This year‟s budget utilizes the theme “Realizing Our Potential.” Policymaking and legislative authority are vested in a governing council consisting of the Mayor and six councilors (One is selected as Vice-Mayor.). All seven members of the Council are elected at large and on a non-partisan basis to serve a fouryear term. Elections are staggered so three councilors are elected every two years and the Mayor is elected every four years. The Council is responsible for passing ordinances, adopting the budget, appointing committees, and selecting the City Attorney and judge in addition to the City Manager. Types and Levels of Services. The City of El Mirage provides a full range of services including police and fire protection, roadway maintenance and construction, recreational and cultural activities, health and social services, as well as general administrative services. The City provides sewer and water services to its residents, along with water services to residents in a portion of the City of Surprise. El Mirage contracts with a local sanitation company for sanitary services. 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 appropriate 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. 4 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 companies operating in El Mirage currently stands at 1671 according to the 2012 Survey of Business Owners. The historic recession and weaker than expected recovery have made significant commercial growth challenging, resulting in an 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. Beginning in 2014- 2015, however, water rates began stabilizing and are expected to remain stable for the next few years. 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 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 new Council goals and 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. 5 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 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 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 Improvements Plan shall include the following: o A statement of the objectives of the Capital Improvements 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 Improvements 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. The City may rely on grants to leverage City funds. The City shall avoid inconsistent and/or fluctuating grants to fund ongoing activities. In the event of reduced grant funding, the City may substitute City resources only after all other priorities and 6 alternatives are considered. Therefore, employees shall apply for grants that are consistent with the mission and priorities of the City. o When employees apply for, accept, and/or administer a grant, the City assumes responsibility for complying with the grant obligations. The City Manager shall establish policies for grant related projects.  Whenever possible, the City shall consider grant funded projects which require City matching or operating funds as part of the budget process. Any grant funded expenditure should include a five year analysis of the amount of City funds required to subsidize its operation. 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. Dysart Road Expansion - The City is partnering with the Maricopa Association of Governments (MAG) to widen and reconstruct Dysart Road from Northern Avenue to Peoria Avenue to four lanes. The City previously issued bonds to pay for El Mirage Road improvements. The City will use reimbursements from that project to cash flow this expansion rather than repaying the total amount borrowed early. MAG will provide 70% funding up to approximately $7.8 million. 7 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. 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 2018. 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. 8 List of Elected City Officials Mayor Lana Mook Mayor Lana Mook has called Arizona home for more than 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 Boards of both Greater Phoenix Economic Council (GPEC) and Western Maricopa Coalition (Westmarc). She also serves on the Executive Committee of the Arizona League of Cities and Towns and on the Executive Committee of the Maricopa Association of Governments (MAG). 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 advocated for passage of 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 council members from across the State. The League provides an important link among the 91 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, 9   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. Reconfiguration of the Thompson Ranch/Grand Avenue/Thunderbird Road intersection and major improvements to El Mirage Road and Thunderbird Road are both scheduled to be completed in early 2017. The design of El Mirage‟s portion of the Northern Parkway project is underway. 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 10 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. 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 11 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! 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 and was recently re-elected to another four year term in 2016. He served in the U.S. Navy and now volunteers his time as a representative of Operation Lifesaver throughout the State of Arizona, presenting railroad safety programs to government agencies and local organizations. He has also volunteered on several committees including committee chair of the City‟s Community Uplift Program. Councilman Selby also helps the El Mirage Fire Department distribute and install free smoke detectors. The Selbys have been married for 55 years and have three daughters and four grandchildren. Councilman David Shapera Councilman David M. Shapera, re-elected to a third four-year term on the El Mirage City Council in 2016, was also a past member and Chairman of the El Mirage Planning and Zoning Commission. He has over 40 years in elected and appointed positions in government. He and his wife, Linda, have been married for 41 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 Dysart Elementary PTO and Thompson Ranch PTSA. Shapera has also been a proud member of the Elks Lodge for 39 years. As an advocate for the new city hall building, police station and YMCA recreational facility, Councilman Shapera continues to ensure the 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. 12 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. LIST OF APPOINTED CITY OFFICIALS City Manager – Dr. Spencer A. Isom City Attorney – Robert M. Hall City Magistrate – Monte Morgan 13 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 is 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 reviews Department Head submissions of CIP requests and asks 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. 14 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 useful life of more than one year and an initial individual 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 Improvements 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 Improvements Plan. All of the preceding steps culminated in the development of the plan document that is updated on an annual basis. 15 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 be included in the annual update process. Some unanticipated needs will occur during the budget year and will be weighed against those already identified in the annually adopted CIP. Attached at the end of this document is a document entitled “City of El Mirage, Capital Improvements Program.” Summarizing all of the projects approved for funding for the next five years along with 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. 16 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. 17 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 $5.6 million in 2006-2007 to revenues of $6.7 million projected for 2016-2017. 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. 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 Annual Tax Levy Per Capita capita basis. The State of $70 Arizona limits the increase $65 in primary property tax to 2% of the prior year‟s levy $60 plus the value of new $55 development. Unlike $50 many other Arizona $45 municipalities, the City $40 has no Special Assessment FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 Districts to pay for infrastructure, Primary Secondary maintenance, and street light expenditures. 18 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 backed 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 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 assessed 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. None of the water and sewer projects in this document are intended to be funded by bonds. 19 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, FY2018-FY2022, Capital Improvement Program.” This document summarizes the projects approved for funding in 2017-2018 and all projects adopted for the Capital Improvements Plan in the out years through 2021-2022. 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. 20 Plan Financial Assumptions The following assumptions have been made regarding the inflow and outflow of financial resources: 1. Beginning balances are based on the most recent audit and preliminary 2017-18 budget and bond fund balances. 2. Most revenues are projected to increase between 1% and 3% per year. a. Exceptions exist in: i. Water, Sewer, and Sanitation are based on the rate study. ii. CDBG, LTAF, Police Towing, and Special Projects are set equal to projected capital and expenditures. iii. Debt Service is based on actual expenditures less beginning balances and transfers. iv. Capital Streets are based on MAG and MCDOT revenue assumptions. b. Revenues not directly under City control are based on the 2016-17 budget. 3. Most expenditures are projected to increase 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 6% 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 match revenues after FY17-18. v. Debt Service is based on actual schedules for expenditures. vi. Capital Streets debt service is per bond schedules. vii. Special Project expenditures are flat. b. Expenditures are based on the 2016-17 budget less capital. Contingencies of $200,000 per year in the General Fund have been maintained. 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. 2017-18 capital does not reflect carryforward projects from the 2016-17 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. 21 Revenue Estimates and Fund Balance Summary General Fund 10 Beginning Balance Revenues (1) Expenditures (2) Bond Proceeds Capital Transfers In/(Out) Subtotal Reserve Ending Balance (EB) FY17-18 18,649,000 18,246,000 19,170,000 (605,000) 1,227,000 526,500 16,419,500 6,000,000 10,419,500 FY18-19 16,419,500 18,428,000 19,930,000 (630,000) 263,000 (2,344,500) 11,680,000 6,000,000 5,680,000 FY19-20 11,680,000 18,612,000 20,500,000 (655,000) 176,000 731,000 9,692,000 6,000,000 3,692,000 FY20-21 9,692,000 18,798,000 21,320,000 (610,000) 180,000 (87,000) 6,293,000 6,000,000 293,000 5 YR FY21-22 Summary 6,293,000 18,649,000 19,362,000 93,446,000 21,930,000 102,850,000 0 (2,500,000) 199,000 2,045,000 2,478,000 1,304,000 6,004,000 6,004,000 6,000,000 6,000,000 4,000 4,000 HURF 21 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY17-18 (70,500) 1,970,000 1,450,000 1,700,000 1,250,500 0 0 0 FY18-19 FY19-20 FY20-21 FY21-22 0 1,990,000 1,490,000 904,000 404,000 0 0 0 0 2,010,000 1,530,000 879,000 399,000 0 0 0 0 2,030,000 1,580,000 850,000 400,000 0 0 0 0 2,091,000 1,620,000 850,000 379,000 0 0 0 5 YR Summary (70,500) 10,091,000 7,670,000 5,183,000 2,832,500 0 0 0 FY21-22 6,771,000 9,445,000 8,163,000 1,250,000 0 (810,000) 5,993,000 5,643,000 350,000 5 YR Summary 7,737,500 46,681,500 37,891,000 6,250,000 608,000 (3,677,000) 5,993,000 5,643,000 350,000 Water 53 Beginning Balance Revenues (1) Expenditures (2) Debt Service Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY17-18 7,737,500 9,259,500 6,728,000 1,250,000 568,000 (663,000) 7,788,000 3,352,000 4,436,000 FY18-19 7,788,000 9,267,000 7,736,000 1,250,000 40,000 (698,000) 7,331,000 3,920,000 3,411,000 22 FY19-20 7,331,000 9,325,000 7,460,000 1,250,000 0 (734,000) 7,212,000 4,490,000 2,722,000 FY20-21 7,212,000 9,385,000 7,804,000 1,250,000 0 (772,000) 6,771,000 5,065,000 1,706,000 Sewer 54 Beginning Balance Revenues (1) Expenditures (2) Debt Service Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY17-18 3,530,000 3,124,000 1,865,000 30,000 344,000 (692,000) 3,723,000 2,297,000 1,426,000 FY18-19 3,723,000 3,140,000 1,954,000 30,000 125,000 (715,000) 4,039,000 2,812,000 1,227,000 FY19-20 4,039,000 3,156,000 2,047,000 30,000 125,000 (738,000) 4,255,000 3,328,000 927,000 FY20-21 4,255,000 3,172,000 2,145,000 30,000 125,000 (762,000) 4,365,000 3,844,000 521,000 5 YR FY21-22 Summary 4,365,000 3,530,000 3,187,000 15,779,000 2,249,000 10,260,000 30,000 150,000 125,000 844,000 (787,000) (3,694,000) 4,361,000 4,361,000 4,361,000 4,361,000 0 0 FY20-21 553,000 1,575,000 1,398,000 0 (297,000) 433,000 229,000 204,000 5 YR FY21-22 Summary 433,000 534,000 1,575,000 7,875,000 1,467,000 6,680,000 0 0 (297,000) (1,485,000) 244,000 244,000 240,000 240,000 4,000 4,000 Sanitation 52 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY17-18 534,000 1,575,000 1,211,000 0 (297,000) 601,000 198,000 403,000 FY18-19 601,000 1,575,000 1,271,000 0 (297,000) 608,000 208,000 400,000 FY19-20 608,000 1,575,000 1,333,000 0 (297,000) 553,000 218,000 335,000 Municipal Court 14 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY17-18 116,000 348,000 729,000 0 265,000 0 0 0 FY18-19 FY19-20 0 351,000 744,000 0 393,000 0 0 0 23 0 355,000 754,000 0 399,000 0 0 0 FY20-21 0 359,000 777,000 0 418,000 0 0 0 FY21-22 0 370,000 800,000 0 430,000 0 0 0 5 YR Summary 116,000 1,783,000 3,804,000 0 1,905,000 0 0 0 Municipal Court Enhancement 15 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY17-18 407,000 141,000 164,000 0 0 384,000 0 384,000 FY18-19 384,000 142,000 167,000 0 0 359,000 0 359,000 FY19-20 359,000 143,000 171,000 0 0 331,000 0 331,000 FY20-21 331,000 144,000 175,000 0 0 300,000 0 300,000 5 YR FY21-22 Summary 300,000 407,000 148,000 718,000 178,000 855,000 0 0 0 0 270,000 270,000 0 0 270,000 270,000 FY20-21 FY21-22 Photo Enforcement 16 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY17-18 980,000 490,000 481,000 0 (980,000) 9,000 0 9,000 FY18-19 9,000 495,000 495,000 0 (9,000) 0 0 0 FY19-20 0 500,000 500,000 0 0 0 0 0 0 505,000 505,000 0 0 0 0 0 0 520,000 520,000 0 0 0 0 0 5 YR Summary 980,000 2,510,000 2,501,000 0 (989,000) 0 0 0 CDBG 31 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY17-18 0 555,000 0 555,000 0 0 0 0 FY18-19 0 250,000 0 250,000 0 0 0 0 24 FY19-20 0 250,000 0 250,000 0 0 0 0 FY20-21 0 250,000 0 250,000 0 0 0 0 FY21-22 0 250,000 0 250,000 0 0 0 0 5 YR Summary 0 1,555,000 0 1,555,000 0 0 0 0 Debt Service 41 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY17-18 380,000 2,030,000 2,210,000 0 100,000 300,000 254,000 46,000 FY18-19 300,000 2,030,000 2,210,000 0 100,000 220,000 254,000 (34,000) FY19-20 220,000 2,125,000 2,210,000 0 100,000 235,000 265,000 (30,000) FY20-21 235,000 2,125,000 2,210,000 0 100,000 250,000 265,000 (15,000) 5 YR FY21-22 Summary 250,000 380,000 2,125,000 10,435,000 2,210,000 11,050,000 0 0 100,000 500,000 265,000 265,000 265,000 265,000 0 0 FY20-21 FY21-22 0 0 (70,000) 0 430,000 500,000 1,000,000 0 0 0 9,878,000 (7,490,000) 0 395,000 500,000 (1,493,000) 0 0 Capital Streets 56 Beginning Balance Revenues (1) Bond Proceeds Expenditures (2) Debt Service Capital Transfers In/(Out) Subtotal Ending Balance FY17-18 10,243,500 0 0 0 505,000 1,000,000 490,000 9,228,500 9,228,500 FY18-19 9,228,500 0 0 0 480,000 11,100,000 3,166,500 815,000 815,000 FY19-20 815,000 0 0 0 455,000 500,000 140,000 0 0 5 YR Summary 10,243,500 9,878,000 (7,560,000) 0 2,265,000 13,600,000 3,303,500 0 0 Dial-A-Ride (LTAF) 23 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY17-18 240,000 97,000 97,000 0 0 240,000 0 240,000 FY18-19 240,000 98,000 98,000 0 0 240,000 0 240,000 25 FY19-20 240,000 99,000 99,000 0 0 240,000 0 240,000 FY20-21 240,000 100,000 100,000 0 0 240,000 0 240,000 5 YR FY21-22 Summary 240,000 240,000 103,000 497,000 103,000 497,000 0 0 0 0 240,000 240,000 0 0 240,000 240,000 Police Towing 28 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY17-18 19,000 72,000 72,000 0 0 19,000 0 19,000 FY18-19 19,000 73,000 73,000 0 0 19,000 0 19,000 FY19-20 19,000 74,000 74,000 0 0 19,000 0 19,000 FY20-21 19,000 75,000 75,000 0 0 19,000 0 19,000 5 YR FY21-22 Summary 19,000 19,000 77,000 371,000 77,000 371,000 0 0 0 0 19,000 19,000 0 0 19,000 19,000 FY20-21 93,000 10,449,500 10,449,500 0 0 93,000 0 93,000 5 YR FY21-22 Summary 93,000 93,000 10,449,500 52,247,500 10,449,500 52,247,500 0 0 0 0 93,000 93,000 0 0 93,000 93,000 FY20-21 22,630,000 48,967,500 48,538,500 1,710,000 (680,000) 1,905,000 0 18,764,000 15,403,000 3,361,000 5 YR FY21-22 Summary 18,764,000 42,858,500 59,580,500 253,867,000 49,766,500 236,676,500 1,675,000 8,665,000 (7,490,000) (10,060,000) 1,924,000 23,835,000 0 0 17,489,000 17,489,000 16,509,000 16,509,000 980,000 980,000 Special Projects 73 Beginning Balance Revenues (1) Expenditures (2) Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY17-18 93,000 10,449,500 10,449,500 0 0 93,000 0 93,000 FY18-19 93,000 10,449,500 10,449,500 0 0 93,000 0 93,000 FY19-20 93,000 10,449,500 10,449,500 0 0 93,000 0 93,000 (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 Bond Proceeds Capital Transfers In/(Out) Subtotal Reserve Ending Balance FY17-18 42,858,500 48,357,000 44,626,500 1,785,000 (605,000) 5,394,000 0 38,805,000 12,101,000 26,704,000 FY18-19 38,805,000 48,288,500 46,617,500 1,760,000 (630,000) 12,682,000 0 25,404,000 13,194,000 12,210,000 26 FY19-20 25,404,000 48,673,500 47,127,500 1,735,000 (655,000) 1,930,000 0 22,630,000 14,301,000 8,329,000 Capital Totals By Funding Source FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 Five Year Total Sewer Fees 344,000 125,000 125,000 125,000 125,000 844,000 Water Fees 568,000 40,000 0 0 0 608,000 CDBG 755,000 250,000 250,000 250,000 250,000 1,755,000 Photo Funds 500,000 500,000 500,000 500,000 500,000 2,500,000 Bonds/Grants 500,000 10,600,000 0 0 0 11,100,000 Taxes 2,727,000 1,167,000 1,055,000 1,030,000 1,049,000 7,028,000 Total $ 5,394,000 $12,682,000 $1,930,000 $1,905,000 $1,924,000 $23,835,000 27 28 Fund # Dept 31 DCS 31 DCS 21 HURF 56 Streets 10 Fire 10 Fire 10 Fire 10 Fire 10 Fire 10 Fire 10 IT 10 IT 10 IT 10 Police 10 Police 10 Police 10 PW-Fleet 21 HURF 21 HURF 54 Sewer 56 Streets 53 Water 53 Water 54 Sewer 53 Water 53 Water 53 PW - Engineering 53 Water 54 Sewer 21 PW-Streets 54 Sewer Funding Project CDBG Reconstruct A Street from Thunderbird Road to Meyer Lane CDBG Downtown Street Reconstruction Taxes Butler Drive Reconstruction Bonds/Grants Dysart Road from Northern Avenue to Peoria Avenue Taxes Fit Tester for Self Contained Breathing Apparatus (SCBA) Taxes Battalion Chief/Fire Chief truck (replacement) Taxes Replacement Apparatus (Fire Engine) CDBG Replacement Apparatus (Fire Engine) additional Taxes BC Mobile Radio Taxes Self Contained Breathing Apparatus (SCBA) Taxes Design/Installation Fiber Optic Cable El Mirage Rd Project Taxes Server Replacements Taxes Security Information and Event Management Solution Taxes Vehicle Replacement Taxes Spillman NIBRS Taxes MDC Computers in vehicles Taxes Vehicle Replacement Taxes Pavement Management Taxes Skid Steer Loader + Attachments Sewer Fees Wastewater Process Equipment Improvements Taxes Northern Parkway Improvements Water Fees Well Site Building Repairs Water Fees Water Storage Tank Rehabilitation Program Sewer Fees Chemical Storage Containment Water Fees Customer Service Facility Security Upgrades Water Fees Irrigation Controller Conversion Water Fees Vehicle Replacement Water Fees Backflow Data Management Module Sewer Fees Lift Station Standby Generator Taxes Vehicle Replacement Sewer Fees WW Reclamation Facility Building B-2 Wall Repair Grand Total EL MIRAGE CAPITAL IMPROVEMENTS PLAN SUMMARY 100,000 $ 5,394,000 8,000 29,000 125,000 500,000 40,000 300,000 90,000 50,000 170,000 168,000 20,000 150,000 29,000 850,000 155,000 25,000 30,000 450,000 200,000 850,000 500,000 FY17-18 555,000 $ 12,682,000 850,000 54,000 125,000 500,000 40,000 172,000 9,000 10,600,000 16,000 66,000 250,000 FY18-19 $ 1,930,000 29,000 125,000 500,000 850,000 176,000 250,000 FY19-20 $ 1,905,000 125,000 500,000 850,000 180,000 250,000 FY20-21 $ 1,924,000 125,000 500,000 850,000 15,000 184,000 250,000 FY21-22 Five Year Total 555,000 1,000,000 850,000 11,100,000 16,000 66,000 450,000 200,000 9,000 155,000 25,000 30,000 15,000 880,000 20,000 150,000 29,000 4,250,000 54,000 625,000 2,500,000 80,000 300,000 90,000 50,000 170,000 8,000 29,000 29,000 100,000 $ 23,835,000 This would be a full reconstruction of “A” Street between Thunderbird Road and Meyer Lane. The proposed project would remove and replace 2,000 linear feet of full pavement section, repair or replace any broken or inadequate curb and/or any four foot wide sidewalks as well as updating six ADA ramps to current standards. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Fund Funding Source: FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 5 YEAR PROJECT TOTAL TOTAL Design Land Equipment Buildings Improvements 31CDBG $555,000 CDBG Total $555,000 $555,000 $555,000 29 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 FY Source: 17/18 31CDBG CDBG FY 18/19 FY 19/20 FY 20/21 FY 21/22 5 YEAR TOTAL PROJECT TOTAL $250,000 $250,000 $250,000 $250,000 $1,000,000 $1,000,000 $250,000 $250,000 $250,000 $250,000 $1,000,000 $1,000,000 30 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 Source: 21HURF Taxes FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 5 YEAR TOTAL PROJECT TOTAL $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 31 Dysart Road was identified as a “Road of Regional Significance” back in the 1999 Maricopa Associations of Governments (MAG) study and currently has one lane in each direction between Northern and Peoria Avenues. The City proposes to widen this corridor to two 12 foot through lanes, a 14 foot median, bike lanes and curb and gutter. This project will include the design, land acquisition and construction. The total project cost is currently estimated at $11.1 million. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 56Capital Streets FY 17/18 FY 18/19 FY 19/20 FY 20/21 $500,000 $412,000 $912,000 $10,188,000 $10,188,000 $10,188,000 $10,600,000 $11,100,000 $11,100,000 Bonds/ Grants $500,000 32 FY 21/22 5 YEAR TOTAL PROJECT TOTAL This CIP proposal is for the purchase of a new Fit Testing Machine. OSHA 29 CFR Part 1910.134 requires that anyone wearing a respirator must be tested for proper fitting. The purpose of replacing our current fit testing machine is to upgrade due to aging and technological changes. The new upgraded equipment will dramatically cut down on out of service time for employees and equipment. The equipment was originally purchased in 2010. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund 10General Funding FY 17/18 Source: Taxes FY 18/19 FY 19/20 FY 20/21 FY 21/22 5 YEAR TOTAL PROJECT TOTAL $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 33 Replace the 2002 Ford Expedition that is our current Battalion Chief vehicle. This vehicle has many mechanical, electrical, and paint issues. Estimated costs: Truck - $35,585.92 Communication Equip- $3,314.70 Equipment - $15,883.91 Radio - $8,098.46 Striping - $2,300 Total = $65,182.90 CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10General Taxes FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 5 YEAR TOTAL PROJECT TOTAL $66,000 $66,000 $66,000 $66,000 $66,000 $66,000 34 The FY 17/18 request is for replacement apparatus (Fire Engine) and 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 between $509,000 and $581,000. Pricing may change based on equipment. The apparatus itself will have a 12501500 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 Equipment Buildings Improvements Total Fund Funding Source: 10General 10General FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 5 YEAR TOTAL PROJECT TOTAL Taxes $450,000 $450,000 $450,000 CDBG $200,000 $200,000 $200,000 $650,000 $650,000 $650,000 35 The FY 18/19 request is to outfit the BC truck with a mobile radio. The purchase of a second mobile radio for the BC vehicle will allow for monitoring and use of more than one tactical channel during any given emergency incident. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund 10General Funding FY 17/18 Source: Taxes FY 18/19 5 YEAR TOTAL PROJECT TOTAL $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 36 FY 19/20 FY 20/21 FY 21/22 This CIP request is to replace our inventory of self-contained breathing apparatus (SCBA). We have an aging inventory of SCBAs. We currently utilize the 1997 standard and have upgraded to the 2007 standard. We are requesting to upgrade to the new 2013 standard which will require a new purchase. Upgrades to our current model are no longer available as there have been significant changes that enhance firefighter safety. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Fund 10General Funding Source: FY 17/18 FY 18/19 Taxes $155,000 Buildings Improvements Total 37 FY 19/20 FY 20/21 FY 21/22 5 YEAR TOTAL PROJECT TOTAL $155,000 $155,000 $155,000 $155,000 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 Taxes General FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 5 YEAR PROJECT TOTAL TOTAL $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 38 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 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 5 YEAR PROJECT TOTAL TOTAL $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 39 A Security Information and Event Management (SIEM) Solution provides real-time analysis of security alerts generated by network hardware and applications. This new solution will allow the City to report and take action on cybersecurity threats, by providing log auditing and review. It will also allow IT staff to better manage user and service privileges, directory services and other systemconfiguration changes. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Fund Funding Source: FY 17/18 FY 18/19 10 Taxes General FY 19/20 FY 20/21 FY 21/22 5 YEAR PROJECT TOTAL TOTAL $15,000 $15,000 Buildings Improvements Total $15,000 40 $15,000 $15,000 $15,000 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 2 marked and 2 unmarked vehicles are scheduled to be purchased. Note: Cost per marked patrol vehicle, including two-tone paint, emergency lighting, radio installation, decals, and prisoner barrier is approximately $51,000. Unmarked detective vehicles with a covert emergency light package or administrative vehicle are approximately $33,000. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 10General Taxes FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 5 YEAR PROJECT TOTAL TOTAL $168,000 $172,000 $176,000 $180,000 $184,000 $880,000 Annual $168,000 $172,000 $176,000 $180,000 $184,000 $880,000 Annual 41 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 conversion from classifying 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 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 5 YEAR TOTAL PROJECT TOTAL $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 42 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 dispatch 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 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 5 YEAR TOTAL PROJECT TOTAL $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 43 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 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 5 YEAR TOTAL PROJECT TOTAL $29,000 $29,000 $29,000 $29,000 $29,000 $29,000 44 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 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 45 FY 20/21 FY 21/22 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 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 5 YEAR TOTAL PROJECT TOTAL $54,000 $54,000 $54,000 $54,000 46 This project is a multi-year program to upgrade and/or replace critical wastewater process equipment which include the following: pumps, motors, blowers, centrifuge, belt press, filters, decanters, aerators, disinfection systems, VFD's, and PLC's. Process equipment is essential to operate the WW Reclamation Facility. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 54 – Fees Sewer FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 $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 47 5 YEAR PROJECT TOTAL TOTAL 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 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 5 YEAR TOTAL PROJECT TOTAL Taxes $500,000 $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 48 Chlorine building/equipment improvements needed at two of the City's well sites (Sunnyvale & Cottonwood). Outdated disinfection systems that generate Chlorine onsite have caused significant structural damages to the concrete building due to reoccurring leaks. Improvements will include replacing the current disinfection system, repairing the damaged block walls, and coating the new walls with a sealant that will prevent future damage. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Fund Funding Source: Design Land Equipment Buildings 53Water Improvements Total Fees FY 17/18 FY 18/19 $40,000 $40,000 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $40,000 $80,000 $100,000 $40,000 $80,000 $100,000 49 FY 21/22 Water pressure and distribution in most communities is maintained via steel water storage tanks, which operate relatively maintenance and trouble free for extended multi-year periods. However, the time comes when gradual corrosion, or even ‘loss-of-curb’ appeal, can result in this mostly ‘passive’ infrastructure requiring upgrades. Therefore, a rehabilitation program should be designed to ensure asset preservation, process water quality improvements, and operator safety. The City has a total of 10 water storage tanks within the water distribution system. This project is to rehab one storage tank. Through operations, all 10 tanks will be thoroughly inspected by the end of fiscal year 17/18 and a prioritized schedule will be developed for the remaining tanks. This maintenance program will prolong the tanks useful life and ensure high quality, safe, and reliable drinking water is provided to the public. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Fund Funding Source: Design Land Equipment Buildings Improvements 53Water Total Fees 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 50 FY 20/21 FY 21/22 Unforeseen concrete damage was discovered once construction began on the Chemical Storage Containment project approved in the FY15/16 CIP. There is currently $51,000 budgeted carryover in FY 16/17. This request is for an additional $90,000 to relocate and construct a new Chemical Storage Containment area. The total cost of this project is estimated to be $141,000. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 54Sewer Fees FY 17/18 FY 18/19 FY 19/20 FY 20/21 5 YEAR TOTAL PROJECT TOTAL $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 51 FY 21/22 Sgt. Peoples, with the CoEM Police Dept., provided a safety and security assessment. The referenced recommendations are in response to the walkthrough of the Customer Service building. These projects can be completed as one large project or prioritized in 3 phases based on budgetary constraints Recommendations are as follows: 1. Install a security camera system and monitor (4 external cameras & 12 internal cameras) with recordable DVR to provide visual coverage of the entire building so employees are able to view the exterior before exiting the building. Internal camera coverage for complete transparency and theft prevention due to the large amountof cash that is handled at this location. $9,500. 2. Various Customer Service building safety improvements such as extending window dimensions which will provide improved privacy and hearing abilities in a proactive effort to de-escalate angry customer interactions and adding an ADA station for ergonomic purposes which offers a higher level of service to those residents with various disabilities. $25,000. 3. Install a security system access control (2 access points) to secure the premise in an emergency due to our secluded residential location and extended operating hours. $15,000. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Fund Funding Source: Design Land Equipment Buildings Improvements 53Water Total Fees FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 5 YEAR TOTAL PROJECT TOTAL $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 52 This capital item request is for the complete replacement and upgrade of irrigation controllers in City parks, facilities, and right of ways. The new controllers automatically adjust to environmental changes and use a master valve for more efficient operation. Estimated ROI on replacement of the current controllers is 1.5 years. It is estimated that the upgraded controllers will provide 30%-35% savings in water use and subsequent fees. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Fund Funding Source: Design Land Equipment Buildings Improvements 53Water Total Fees FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $170,000 $170,000 $170,000 $170,000 $170,000 $170,000 53 FY 20/21 FY 21/22 This software is needed for accurate management of the City's backflow data. This is a module for our current utility billing system (Caselle) that will allow staff to accurately and efficiently track, organize, notify, and manage every backflow assembly/device within the City's water distribution system. This software will aid in the City's effort to develop a backflow and cross prevention control program and help enforce compliance. This is critical to ensure high quality, safe, and reliable drinking water to the public. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Fund Funding Source: Design Land Equipment Buildings Improvements 53Water Total Fees FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 5 YEAR TOTAL PROJECT TOTAL $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 54 This project includes the purchase and installation of a standby generator and automatic transfer switch at the City's Brisas lift station. Maricopa County Environmental Health Code (Chapter I, Section 2, Regulation 5) requires standby power to be provided at all sewage pump stations where temporary power failure may allow a discharge of raw sewage. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 54Sewer Fees FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 5 YEAR TOTAL PROJECT TOTAL $29,000 $29,000 $29,000 $29,000 $29,000 $29,000 55 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 Fund Funding Source: 21HURF FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 5 YEAR TOTAL PROJECT TOTAL $29,000 $29,000 $29,000 $29,000 $29,000 $29,000 Taxes Buildings Improvements Total 56 Building wall repairs needed at the City's Wastewater Reclamation Facility (building B-2). Chlorine used in the disinfection of effluent at the WRF has caused significant structural damages to the concrete block wall on the south side of building B-2. Repairs will include replacing all the damaged concrete blocks and reinforcing the wall. CAPITAL BUDGET- BY CATEGORY AND FISCAL YEAR(S) FUNDS REQUESTED Category: Design Land Equipment Buildings Improvements Total Fund Funding Source: 54 – Sewer Fees FY 17/18 FY 18/19 FY 19/20 5 YEAR TOTAL PROJECT TOTAL $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 57 FY 20/21 FY 21/22 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 Improvements 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 useful life of more than one year and an initial individual 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 58 CIP Contingency Capital Projects Funds Debt Service when cash is increased or decreased Capital Improvements Plan Monies which have not been allocated to any specific purpose and may only be utilized in conjunction with Council notification 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 59 Fund Balance General Fund expenditures associated with specific activities Carry over funds due to actual revenues exceeding actual expenditures 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 60 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 61