Loading...
HomeMy WebLinkAbout05232023 CC Special Meeting SPECIAL MEETING NOTICE PORT ANGELES CITY COUNCIL Notice is hereby given that the City Council of the City of Port Angeles will hold a special meeting on Tuesday, May 23, 2023, starting at 5:00 p.m. Listening and webcast options will be available at www.cityofpa.us. The meeting will be conducted as a hybrid meeting. In hybrid meetings, members of the public, Council members, and City staff have the option to attend in person at the City Hall Council Chambers, located at 321 East 5th Street in Port Angeles, or remotely via telephone or video link. This meeting is open to the public. The purpose of the special meeting is for City Council to hold a Work Session to discuss the Capital Facilities Plan (CFP) and Transportation Improvement Plan (TIP) for 2024-2029. For audio only please call: 1-844-992-4726 Webinar number: 2556 422 8730 If you are joining in through the Webex link: https://cityofpa.webex.com/cityofpa/j.php?MTID=m2c50727c1aa76bbc2c037e15fc58220b The access code and link are good for the May 23, 2023 meeting only. The document is available on the City’s website here: https://www.cityofpa.us/774/Capital-Facilities- Plan The City Council encourage citizen participation. An opportunity for public comment will be available at a later date. Upcoming meeting information can be found on the City website: www.cityofpa.us/583/Meetings-Agendas. Community members may also contact City Council by email at council@cityofpa.us, or written letter mailed to 321 East 5th Street, Port Angeles, WA 98362 or by dropping it by City Hall. Learn more by visiting: www.cityofpa.us/137/City-Council Closed captioning can be made available. Please contact City Clerk Kari Martinez-Bailey at 360-417- 4634, or by email at cityclerk@cityofpa.us for instructions if this option is needed. Kari Martinez-Bailey City Clerk (p) 360-417-4634 │TTY 360-417-4645 Issued: Friday, May 19, 2023 2024 –2029 CAPITAL FACILITIES & TRANSPORTATION IMPROVEMENT PLAN MAY 23, 2023 CITY COUNCIL WORK SESSION CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 2 ▪Overview of Capital Facilities Planning and Process ▪2022 Completed Projects ▪Funding Sources and Expenses Combined ▪Cash Flows by Fund ▪Citywide New Project Listing ▪Next Steps ▪Questions & Discussion AGENDA CF P / T I P P R O C E S S CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 3CAPITAL FACILITIES PLANNING Provides adequate public facilities to serve existing and new development. Reduces the cost of serving new development with public facilities. Ensures that these facilities will be in place when development occurs. Helps the City maximize our limited resources efficiently by planning for our needs, prioritizing and coordinating projects and identifying funding options. CF P / T I P P R O C E S S CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 4 JA N . - MA R C H Departmental development and review MA R C H - AP R I L Director Prioritization and City Manager review AP R I L Finance Department prepares cash analysis, funding options and CFP/TIP Document MA Y CFP/TIP Reviewed by City Council, Utility Advisory Committee (UAC) and Port Angeles Citizens. Input is provided by these groups. JU N E Council conducts the Public Hearings and the 1st and 2nd reading of the CFP/TIP resolution for consideration of adoption TIP is filed with the State THE CFP/TIP PROCESS CF P / T I P P R O C E S S CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 5THE CFP PROCESS This stage of the CFP process is Council’s opportunity to: ▪Learn about capital projects, funding sources and costs. ▪Discuss the CFP & TIP ▪Review and revise priorities if needed. CF P / T I P P R O C E S S CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 6 ▪Little to no rate impact. ▪Set aside cash that is equal to the prior years’ depreciation. ▪Leverage projects. ▪No new debt. ▪Focus on preventable maintenance to increase asset life. ▪Complete streets initiative.* As approved during the 2018 –2023 CFP process. * This was approved with the adoption of Ordinance #3615 on December 9, 2018 CITY COUNCIL DIRECTIVES CF P / T I P P R O C E S S CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 7INFLATION IMPACTING PROJECTS Rising cost of inflation is causing project expenses to push the boundaries of affordability. ▪Evident in every area of the CFP. ▪Total funded project cost increase in all funds combined of $28.5 million since the adopted 2023-2028 CFP. ▪Balancing low impacts to utility rates with critical and costly capital needs. ▪Impacts to the City’s ability to deliver essential services to the community. ▪Changes to project scope to maintain affordability. CF P / T I P P R O C E S S P R E S E N T A T I O N T I T L E CAPITAL FACILITIES PLAN -COUNCIL WORKSESSION –MAY 23, 2023 8CAPACITY The Strategic Plan approved by City Council in March of 2021includes an Issue of Critical Importance regarding Capacity, with a goal to: “Build capacity of the City to better meet the community’s needs, invest in improvements, focus on improving economic outcomes and maintain what we have.” ▪A key focus area in this category is to reduce the CFP backlog. ▪Capacity was also a primary focus area in the City’s workplan. ▪Additional resources are in the 2023 Budget as recommended by the UAC and approved by City Council to allow completion of projects in the Water and Wastewater funds. CF P / T I P P R O C E S S P R E S E N T A T I O N T I T L E CAPITAL FACILITIES PLAN -COUNCIL WORKSESSION –MAY 23, 2023 9CAPACITY The 2024-2029 CFP also took into consideration the ability of Staff to complete projects as outlined in the CFP. ▪While funding may have been identified for projects staff continues to work on ensuring there is adequate staff to complete the critical capital needs of the City. ▪Without these additional resources projects will move at a slower pace or be delayed in total. ▪Balancing staffing needs with affordability to complete projects should be carefully weighed. ▪In each section personnel cost and need has been estimated. CF P / T I P P R O C E S S CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 10CAPACITY CF P / T I P P R O C E S S 37 , 2 9 0 40 , 1 3 8 40 , 4 8 6 3 2 , 6 7 3 1 6 , 1 0 9 19 , 7 3 7 1 6 , 7 9 3 16 , 6 4 0 16 , 6 4 0 16 , 6 4 0 16 , 6 4 0 16 , 6 4 0 16 , 6 4 0 16 , 6 4 0 9.9 11.3 11.5 7.7 (0.3)1.5 0.1 (2.0) 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 - 10,000 20,000 30,000 40,000 50,000 2023 2024 2025 2026 2027 2028 2029 ESTIMTED CITYWIDE PERSONNEL PROJECT HOURS Estimated Personnel Hours Needed to Complete Plan Current Staffing Hours in the Budget Total Additional Staff Required to Complete Projects (Yearly) CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 11CAPACITY CF P / T I P P R O C E S S Six additional FTE’s are estimated for completion of the 2024 -2029 CFP as averaged across all years. However, in years when large projects are included additional staffing will be required for completion. ESTIMATED PERSONNEL COSTS FOR PROJECT COMPLETION 2023 2024 2025 2026 2027 2028 2029 81,326 206,661 8,666 8,666 8,666 9,331 3,666 470,420 1,151,594 729,739 372,090 297,236 494,436 195,866 336,748 445,958 526,991 196,000 79,027 88,704 65,450 357,476 129,043 185,550 99,160 278,026 307,463 122,617 25,480 196,766 28,000 112,000 - - - 73,146 302,311 223,923 42,630 15,400 78,325 447,025 528,667 17,334 20,000 12,333 2,000 15,666 - 950,002 870,124 1,366,838 1,413,967 509,865 607,179 385,439 TOTAL PLANNED PERSONNEL COSTS 2,823,265 3,319,790 3,089,707 2,256,846 1,190,220 1,601,105 1,220,063 IT TRANSPORTATION GENERAL GOVERNMENT ELECTRIC WATER WASTEWATER STORMWATER SOLID WASTE P R E S E N T A T I O N T I T L E CAPITAL FACILITIES PLAN -COUNCIL WORKSESSION –MAY 23, 2023 12CAPACITY Though the CFP/TIP presented includes a large number of projects staff has prepared the plan to consider whether: ▪Many projects listed are in a planning or due diligence phase. ▪Several projects are multi-year in nature and will be seen in more than one year until completion. ▪Recognizing that the projects listed are critical needs that should not be deferred. ▪Projects listed take into consideration the possibility to seek grant funding. CF P / T I P P R O C E S S CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 132022 COMPLETED PROJECTS CO M P L E T E D P R O J E C T S PROJECTS COMPLETED IN 2022 Actual Budget PD0116 Mobile Data Terminal Replacements 21,088 18,800 PD0307 Police Regional Training & Gun Range Facility 4,145 32,000 PD0119 Computer Aided Dispatch 136,522 145,100 FD0615 Fire Hoses 4,698 6,100 FD0318 Emergency Mgmt Pods 13,147 100,000 PD0120 Police Taser Replacement 48,307 40,300 PD0222 Pencom Radio/Phone Traffic Recording 33,925 31,500 PD0322 Pencom 911 Phone Equipment 178,652 153,000 PK0119 Erickson Playfield Pump Track 383,555 650,000 PK0205 Restroom Replacement Revolving Fund 727,780 800,000 1,551,818 1,976,800 GENERAL GOVERNMENT CAPITAL PROJECTS TOTAL COMPLETED PROJECTS CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 142022 COMPLETED PROJECTS CO M P L E T E D P R O J E C T S PROJECTS COMPLETED IN 2022 Actual Budget TR0218 Lincoln Street Safety 459,744 499,100 TR0616 ADA - Francis Street 370,327 355,500 TR0621 Waterfront Trail Repairs 84,810 105,200 TOTAL COMPLETED PROJECTS 914,881 959,800 TRANSPORTATION PROJECTS PROJECTS COMPLETED IN 2022 Actual Budget CAPM1 Medic 1 revolving 15,866 - FD0118 Defibrillators 71,451 73,000 TOTAL COMPLETED PROJECTS 87,317 73,000 MEDIC 1 CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 152022 COMPLETED PROJECTS CO M P L E T E D P R O J E C T S PROJECTS COMPLETED IN 2022 Actual Budget CLCAP Distribution/Overhead/Poles/Yard lighting 96,735 150,000 CL0620 Electric Vehicle Charging Station 48,140 48,000 CL0919 "A" Street Substation Switchgear Replacement 297,639 500,000 TOTAL COMPLETED PROJECTS 442,514 698,000 ELECTRIC PROJECTS PROJECTS COMPLETED IN 2022 Actual Budget CAPWT General Water Equipment 1,685 50,000 WT0521 Water Main Replacement Village/Lind 122,326 122,400 TOTAL COMPLETED PROJECTS 124,011 172,400 PROJECTS COMPLETED IN 2022 Actual Budget CAPWW Wastewater Treatment Equipment 67,600 129,900 TOTAL COMPLETED PROJECTS 67,600 129,900 WATER PROJECTS WASTEWATER PROJECTS CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 162022 COMPLETED PROJECTS CO M P L E T E D P R O J E C T S PROJECTS COMPLETED IN 2022 Actual Budget SW0421 Transfer Station 1,665,853 1,627,800 SW0117 Landfill Scale Software 187,774 184,000 TOTAL COMPLETED PROJECTS 1,853,627 1,811,800 SOLID WASTE PROJECTS PROJECTS COMPLETED IN 2022 Actual Budget DR0119 N Street Outfall Improvement 444,096 482,500 TOTAL COMPLETED PROJECTS 444,096 482,500 STORMWATER PROJECTS PROJECTS COMPLETED IN 2022 Actual Budget IT0618 Virtual Server Replacements 149,892 150,000 TOTAL COMPLETED PROJECTS 149,892 150,000 INFORMATION TECHNOLOGY PROJECTS COUNCIL WORKSESSION -MAY 23, 2023 17 CA P I T A L F A C I L I T I E S P L A N & TR A N S P O R T A T I O N IM P R O V E M E N T P L A N CITYWIDE REVENUE, SPENDING & CASH FLOWS CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 18FUNDING SOURCES FU N D I N G S O U R C E S Revenues 2023 2024 2025 2026 2027 2028 2029 Electric 850,000 4,550,000 850,000 950,000 950,000 1,050,000 1,050,000 Equipment Services 1,354,900 2,061,500 1,843,300 1,950,800 2,003,800 1,999,900 2,037,000 General Government 8,962,100 3,176,000 831,500 520,500 562,500 568,500 491,500 Information Technologies 286,300 433,700 333,700 333,700 333,700 333,700 333,700 Medic 1 50,500 50,500 50,500 50,500 50,600 50,600 50,600 Solid Waste (incl debt)162,100 737,300 391,000 392,700 393,300 390,000 396,700 Stormwater 443,000 667,000 476,000 910,000 494,000 929,000 2,727,000 Transportation 10,155,300 5,479,200 13,887,800 10,652,100 5,697,300 6,183,000 4,731,000 Wastewater and CSO (incl debt)1,350,400 1,987,300 1,295,200 1,436,100 1,603,700 1,615,200 1,789,200 Water 1,476,000 2,775,000 3,225,000 2,100,000 1,100,000 1,200,000 1,200,000 Totals 25,090,600 21,917,500 23,184,000 19,296,400 13,188,900 14,319,900 14,806,700 Revenue by Type 2023 2024 2025 2026 2027 2028 2029 Utility 7,810,700 5,498,100 5,558,300 6,201,000 5,980,000 6,238,600 6,470,100 Grant 11,546,100 6,169,200 13,965,000 8,425,000 3,300,000 4,900,000 5,015,000 General Fund 1,535,400 1,784,900 1,796,800 1,494,800 1,613,300 1,574,800 1,332,800 Donations 440,000 50,000 110,000 150,000 750,000 50,000 50,000 Interest 166,800 116,800 104,700 115,900 117,200 84,100 74,000 REET 1,713,500 705,000 637,800 880,000 380,000 405,000 580,000 Wastewater from Reserves 300,000 850,000 - - - - - Electric from Reserves - 3,700,000 - - - - - Water from Reserves 651,000 1,850,000 - 1,000,000 - - - Stormwater from Reserves - 200,000 - - - - - Internal service funds 30,800 30,800 30,800 30,800 30,800 30,800 30,800 Pencom 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Range User Fees 16,300 16,300 16,300 16,300 16,300 16,300 16,300 Lodging Tax - - - - - - - NICE Funds - - - - - - 198,000 Transportation Tax 830,000 896,400 914,300 932,600 951,300 970,300 989,700 Totals 25,090,600 21,917,500 23,184,000 19,296,400 13,188,900 14,319,900 14,806,700 CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 19REVENUES BY TYPE & YEAR FU N D I N G S O U R C E S - 5 10 15 20 25 2023 2024 2025 2026 2027 2028 2029 Mi l l i o n s REVENUES BY TYPE & YEAR Utility Grant Interest General Fund Donations REET Lodging Tax Pencom Transportation Tax CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 20SPENDING PR O J E C T S P E N D I N G Budget Expenditures 2023 2024 2025 2026 2027 2028 2029 Electric 2,940,000 5,449,900 6,200,000 3,400,000 1,150,000 1,250,000 550,000 Equipment Services 3,734,300 1,669,600 1,856,400 2,027,900 2,390,800 550,400 1,240,200 General Government 10,577,400 3,547,500 1,028,000 696,300 486,300 646,600 434,300 Information Technologies 3,146,400 200,000 180,000 430,000 180,000 350,000 300,000 Medic 1 - - 40,000 224,700 - - - Solid Waste (incl debt)230,000 1,741,300 200,000 400,000 400,000 - - Stormwater 480,000 2,471,300 1,606,000 547,000 110,000 800,000 3,139,000 Transportation 12,913,500 6,335,400 13,408,800 11,099,000 5,530,000 6,320,000 3,935,000 Wastewater and CSO (incl debt)7,174,600 1,309,100 1,355,800 934,400 2,810,700 3,078,200 1,197,500 Water 3,385,600 3,612,700 5,297,600 2,050,000 614,500 683,600 517,500 Totals 44,581,800 26,336,800 31,172,600 21,809,300 13,672,300 13,678,800 11,313,500 CAPITAL FACILITIES PLAN CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 21SPENDING BY TYPE & YEAR PR O J E C T S P E N D I N G - 5 10 15 20 25 30 35 40 45 50 2023 2024 2025 2026 2027 2028 2029 Mi l l i o n s SPENDING BY PROJECT TYPE AND YEAR Electric Equipment Services General Government Information Technologies Solid Waste (incl debt)Stormwater Transportation Wastewater and CSO (incl debt)Water CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 22CASH BALANCES CA S H B A L A N C E S - 2 4 6 8 10 12 14 M i l l i o n s CASH BALANCES PROJECTED BY PROJECT TYPE 2023 Beginning Cash 2029 Projected Cash CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 23CASH RATIO CA S H B A L A N C E S 0.5 0.7 3.9 0.9 30.0 1.2 2.3 2.3 0.3 1.1 - 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Cash Ratio to Depreciation CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 24CHANGES FROM THE 2023 –2028 CFP/TIP CH A N G E S F R O M P R I O R 262,298,200 (6,545,200) 6,838,500 11,150,000 13,228,000 28,499,900 6,365,000 321,834,400 NEW FUNDED NEW UNFUNDED COST INCREASES: FUNDED PROJECTS UNFUNDED PROJECTS PROPOSED 2024-2029 CFP COMPARISON TO THE 2023 - 2028 CFP ADOPTED 2023-2028 CFP LESS COMPLETE PROJECTS 2029 ADDITIONS NEW PROJECTS: CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 25GOVERNMENTAL CASH FLOW CA S H F L O W S CASH FLOW ANALYSIS 2023 2024 2025 2026 2027 2028 2029 Beginning balance 3,151,702 1,536,402 1,164,902 968,402 792,602 868,802 790,702 Funding sources: Utilities 3,468,600 60,500 60,500 60,500 60,500 60,500 60,500 Grants 4,000,000 2,295,000 - - - 25,000 - General Fund Funding 732,000 526,200 551,700 240,700 282,700 263,700 211,700 Donations 390,000 - - - - - - Other Funds 371,500 294,300 219,300 219,300 219,300 219,300 219,300 Spending: Capital Investment (10,577,400) (3,547,500) (1,028,000) (696,300) (486,300) (646,600) (434,300) Ending Cash Balance 1,536,402 1,164,902 968,402 792,602 868,802 790,702 847,902 Projected Depreciation 1,402,816 1,201,697 1,395,518 1,432,803 1,450,761 1,497,719 1,555,451 Cash to depreciation ratio 1.10 0.97 0.69 0.55 0.60 0.53 0.55 Utilities $3,831,600 Grants $6,320,000 General Fund $2,808,700 Donations $390,000 REET $1,277,200 TOTAL REVENUE TYPE COMBINED CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 26TRANSPORTATION CASH FLOW CA S H F L O W S BUDGET 2023 2024 2025 2026 2027 2028 2029 Beginning Cash Balance 4,684,791 1,926,591 1,070,391 1,549,391 1,102,491 1,269,791 1,132,791 Funding sources: Utilities Reserves 235,200 310,000 330,000 610,000 175,000 200,000 200,000 Grants 7,536,100 3,389,400 11,765,000 8,000,000 3,300,000 4,450,000 3,000,000 General Fund 101,000 384,100 320,000 264,000 330,000 295,000 100,000 Donations/Insurance - - 60,000 100,000 700,000 - - Interest 41,700 19,300 10,700 15,500 11,000 12,700 11,300 REET/other 1,411,300 480,000 487,800 730,000 230,000 255,000 430,000 .2% Trans Tax 830,000 896,400 914,300 932,600 951,300 970,300 989,700 Project Costs (12,913,500) (6,335,400) (13,408,800) (11,099,000) (5,530,000) (6,320,000) (3,935,000) 1,926,591 1,070,391 1,549,391 1,102,491 1,269,791 1,132,791 1,928,791 Projected Depreciation 1,767,863 1,916,838 2,180,286 2,454,045 2,666,159 2,739,858 2,917,856 Cash to depreciation ratio 1.09 0.56 0.71 0.45 0.48 0.41 0.66 Ending Cash Balance CASH FLOW ANALYSIS Utilities $2,060,200 Grants $41,440,500 General Fund $1,794,100 Donations $860,000 REET $4,024,100 TBD Tax $6,484,600 TOTAL REVENUE TYPE COMBINED CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 27ELECTRIC CASH FLOW CA S H F L O W S 2023 2024 2025 2026 2027 2028 2029 Beginning Cash Balance 13,022,083 10,932,083 10,032,183 4,682,183 2,232,183 2,032,183 1,832,183 Funding sources: Electric Rates Transfer 800,000 800,000 800,000 900,000 900,000 1,000,000 1,000,000 For building from Reserves - 3,700,000 - - - - - Adjustments for cash timing - - - - - - - General Fund - - - - - - - Donations/Insurance - - - - - - - Other Funds/Grants 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Spending: Project cost (2,940,000) (5,449,900) (6,200,000) (3,400,000) (1,150,000) (1,250,000) (550,000) Ending Cash Balance 10,932,083 10,032,183 4,682,183 2,232,183 2,032,183 1,832,183 2,332,183 Depreciation 1,665,564 1,858,313 1,984,710 1,985,323 1,986,409 1,950,941 1,879,158 Depreciation to Cash Ratio 6.56 5.40 2.36 1.12 1.02 0.94 1.24 CASH FLOW ANALYSIS ▪An increase to the transfer from the Electric operating fund is planned in 2026 and in 2028. It is anticipated these increases will correspond with debt maturity to reduce or eliminate the impact to rates. ▪$3.7 million transfer from excess operating reserves is planned in 2024 to complete the Light Operations building. CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 28WATER CASH FLOW CA S H F L O W S 2023 2024 2025 2026 2027 2028 2029 Beginning Cash Balance 5,346,683 3,437,083 2,599,383 526,783 576,783 1,062,283 1,578,683 Funding sources: Water Rates 825,000 925,000 1,025,000 1,100,000 1,100,000 1,200,000 1,200,000 Grants - - 2,200,000 - - - - Bonds/Interest/Other - Excess Operating Reserve 1,500,000 - 1,000,000 General Fund Donations Other Funds -NPS Reserves for Elwha Facility 651,000 350,000 Spending: Project Costs (3,385,600) (3,612,700) (5,297,600) (2,050,000) (614,500) (683,600) (517,500) Ending Cash Balance 3,437,083 2,599,383 526,783 576,783 1,062,283 1,578,683 2,261,183 Depreciation 1,772,395 1,868,781 1,975,719 2,093,193 2,143,252 2,167,641 2,147,466 Depreciation to Cash Ratio 1.94 1.39 0.27 0.28 0.50 0.73 1.05 CASH FLOW ANALYSIS ▪An increase to the water rate will be necessary to complete critical projects. This is estimated at less than 2.0% in 2025 and 2026 and less than 1.0% in 2028. ▪A total of $2.5 million is planned to transfer from excess operating reserves to offset large planned projects and prevent the need for higher rate increases. CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 29WASTEWATER/CSO CASH FLOW CA S H F L O W S 2023 2024 2025 2026 2027 2028 2029 Beginning Cash Balance 7,494,205 1,670,005 2,348,205 2,287,605 2,789,305 1,582,305 119,305 Funding sources: Wastewater Rates 978,500 1,007,900 1,150,000 1,150,000 1,300,000 1,300,000 1,375,000 Grants Bonds/Interest/Other 37,400 28,100 39,400 38,400 46,900 26,600 2,000 General Fund Donations Transfer from excess operating reserves 300,000 850,000 Combined Sewer Overflow Surcharge 2,349,600 2,349,600 2,349,600 2,349,600 2,349,600 2,349,600 2,349,600 Spending: Debt Payments (projected)(2,315,100) (2,248,300) (2,243,800) (2,101,900) (2,092,800) (2,061,000) (1,937,400) Project Costs (7,174,600) (1,309,100) (1,355,800) (934,400) (2,810,700) (3,078,200) (1,197,500) Ending Cash Balance 1,670,005 2,348,205 2,287,605 2,789,305 1,582,305 119,305 711,005 Depreciation 2,015,232 2,190,589 2,152,790 2,110,169 2,190,904 2,277,891 2,253,133 Depreciation to Cash Ratio 0.83 1.07 1.06 1.32 0.72 0.05 0.32 CASH FLOW ANALYSIS ▪An increase to the transfer from the Wastewater operating fund is planned in 2025 and 2027 of 2.0% and 1.0% in 2029. ▪$1.15 million transfer from excess operating reserves is planned in 2023 and 2024 combined to complete projects without additional rate increases. ▪Allowing cash to depreciation level to fall below the 1:1 requirement to prevent large increases to rates before debt begins to mature. CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 30SOLID WASTE CASH FLOW CA S H F L O W S 2023 2024 2025 2026 2027 2028 2029 Beginning Cash Balance 1,262,431 1,194,531 190,531 381,531 374,231 367,531 757,531 Landfill Surcharge*1,283,400 1,283,400 1,283,400 1,283,400 1,283,400 1,283,400 1,283,400 Funding sources: Solid Waste Rates 50,000 250,000 300,000 300,000 300,000 300,000 300,000 Grants 10,000 384,800 - - - - - Bonds (net used & paid)(1,193,900) (1,192,800) (1,194,300) (1,194,500) (1,193,800) (1,197,100.0) (1,194,300.0) General Fund - - - - - - Donations - - - - - - - Interest Income 12,600 11,900 1,900 3,800 3,700 3,700 7,600 Spending:- Project Cost (230,000) (1,741,300) (200,000) (400,000) (400,000) - - Ending Cash Balance 1,194,531 190,531 381,531 374,231 367,531 757,531 1,154,231 Depreciation 444,930 444,930 471,596 498,263 498,263 496,821 496,821 Cash/Depreciation 2.68 0.43 0.81 0.75 0.74 1.52 2.32 CASH FLOW ANALYSIS ▪An estimated 3.0% increase is planned in 2024 to the Solid Waste rates to accommodate changes in projects and additions to assets that occurred as a result of transitioning to City operations. CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 31STORMWATER CASH FLOW CA S H F L O W S BUDGET 2023 2024 2025 2026 2027 2028 2029 Beginning Cash Balance 3,089,060 3,052,060 1,247,760 117,760 480,760 864,760 993,760 Funding sources: Utilities Reserves 443,000 452,000 461,000 470,000 479,000 489,000 499,000 Grants - - - 425,000 - 425,000 2,015,000 Bonds - - - - - - - General Fund - 15,000 15,000 15,000 15,000 15,000 15,000 Use of Reserves - One Time Transfer - 200,000 - - - - - Other Funds (NICE Funds)- - - - - - 198,000 Spending: Project cost (480,000) (2,471,300) (1,606,000) (547,000) (110,000) (800,000) (3,139,000) 3,052,060 1,247,760 117,760 480,760 864,760 993,760 581,760 Depreciation 168,081 176,499 236,872 236,257 241,959 243,362 252,290 Depreciation to Cash Ratio 18.16 7.07 0.50 2.03 3.57 4.08 2.31 Ending Cash Balance CASH FLOW ANALYSIS CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 32MEDIC 1 CASH FLOW CA S H F L O W S CASH FLOW ANALYSIS BUDGET 2023 2024 2025 2026 2027 2028 2029 Beginning balance 1,313,746 1,364,246 1,414,746 1,425,246 1,251,046 1,301,646 1,352,246 Funding sources: Utilities 50,500 50,500 50,500 50,500 50,600 50,600 50,600 Spending:- - - - - - - Capital Investment - - (40,000) (224,700) - - - Ending Cash Balance 1,364,246 1,414,746 1,425,246 1,251,046 1,301,646 1,352,246 1,402,846 Projected Depreciation 51,342 40,503 45,903 35,121 46,833 46,833 46,833 Cash to depreciation ratio 26.57 34.93 31.05 35.62 27.79 28.87 29.95 COUNCIL WORKSESSION -MAY 23, 2023 33 CA P I T A L F A C I L I T I E S P L A N & TR A N S P O R T A T I O N IM P R O V E M E N T P L A N NEW AND UPCOMING PROJECTS CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 34NEW PROJECTS NE W P R O J E C T S ▪37 New Projects Totaling $24.4 million ▪18 of which are unfunded at $13.3 million Number Title PUBLIC SAFETY PD0123 PenCom ROIP Project New 1 New 450,000 - - - PD0223 Police Body Worn Cameras New R New 260,000 - - 40,000 FD0123 SCBA Refill Compressor System New UF New 103,000 - - - PARKS AND RECREATION PK0123 Elks Pickleball Court Improvements New 8 New 30,000 30,000 30,000 - PK0223 Aluminum Bleacher Upgrades New UF New 100,000 - - - PK0323 Senior Center Front Door Replacement New UF New 45,000 - - - TOTALS - 988,000 30,000 30,000 40,000 GENERAL GOVERNMENT CAPITAL PROJECTS 2022 PRIORITY 2023 PRIORITY 2022 PROJECT TOTAL 2023 PROJECT TOTAL 2023 PROPOSED BUDGET AMEND. REQUEST GRANT FUNDING CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 35NEW PROJECTS NE W P R O J E C T S Number Title TRANSPORTATION BENEFIT DISTRICT PROJECTS TR0223 2029 Pavement Preservation New 18 New 500,000 - - - TR0323 Lincoln Street Safety (8th to Lauridsen)*New 20 New 3,300,000 - - 3,250,000 TR0123 Sidewalk for Ennis Street Improvements New UF New 225,000 - - - TRANSPORTATION PROJECTS TR0423 Signal Controller Upgrades 1st/Front Phase II*New 15 New 3,000,000 - - - TOTALS - 7,025,000 - - 3,250,000 2023 PROJECT TOTAL 2023 PROPOSED BUDGET AMEND. REQUEST GRANT FUNDING TRANSPORTATION PROJECTS 2022 PRIORITY 2023 PRIORITY 2022 PROJECT TOTAL INFORMATION SERVICES IT0123 Intrusion Detection and Prevention New 1 New 200,000 - - 100,000 IT0223 Increase Primary Backup Storage New 2 New 140,000 - - - IT0323 SCADA Server Replacements New 3 New 150,000 - - - IT0423 Building Access Control and Cameras New UF New 1,200,000 - - - IT0523 City Owned Fiber Optics New UF New 1,500,000 - - - TOTALS - 3,190,000 - - 100,000 DEPARTMENT 2022 PRIORITY 2023 PRIORITY 2022 PROJECT TOTAL 2023 PROJECT TOTAL 2023 PROPOSED BUDGET AMEND. REQUEST GRANT FUNDING CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 36NEW PROJECTS NE W P R O J E C T S Number Title ELECTRIC CL0123 Overhead Reconductoring - 2024 New 7 New 150,000 - - - CL0223 Overhead Reconductoring - 2025 New 9 New 250,000 - - - CL0323 Overhead Reconductoring - 2026 New 11 New 250,000 - - - CL0523 Underground Cable Replacement - 2029 New 19 New 250,000 - - - CL0423 Overhead Reconductoring - 2029 New 22 New 150,000 - - - TOTALS - 1,050,000 - - - Number Title WATER WT0123 11th Street ROW Tumwater Creek Crossing New 13 New 60,000 60,000 60,000 - WT0223 14th Street ROW Tumwater Creek Crossing New 14 New 60,000 60,000 60,000 - WT0323 Decant Facility Equipment New UF New 70,000 - - - WT0423 Advanced Metering Management New UF New 3,000,000 - - - TOTALS - 3,190,000 120,000 120,000 - 2023 PROJECT TOTAL 2023 PROPOSED BUDGET AMEND. REQUEST GRANT FUNDING WATER PROJECTS 2022 PRIORITY 2023 PRIORITY 2022 PROJECT TOTAL 2023 PROJECT TOTAL 2023 PROPOSED BUDGET AMEND. REQUEST GRANT FUNDING ELECTRIC PROJECTS 2022 PRIORITY 2023 PRIORITY 2022 PROJECT TOTAL CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 37NEW PROJECTS NE W P R O J E C T S Number Title WASTEWATER WW0123 Front/Georgiana Capacity Improvement New UF New 3,800,000 - - - WW0223 New Sewer Washington Street (Park to 8th)New UF New 2,000,000 - - - WW0323 Decant Facility Equipment New UF New 70,000 - - - WW0423 WWTP Knife Gate Valve Installations New UF New 75,000 - - - WW0523 WWTP UST Tank Replacement New UF New 220,000 - - - COMBINED SEWER OVERFLOW WW0123 2029 Neighborhood Sewer Rehabilitation New 9 New 750,000 - - - TOTALS - 6,915,000 - - - Number Title SOLID WASTE SW0323 Long Haul Truck Tarping Station New 4 New 200,000 - - - SW0123 Recycle Processing Center New UF New 750,000 - - - SW0223 Landfill Cover System Repairs New UF New 150,000 - - - SW0423 MRWF Building Conversion - Office Space New UF New - - - - SW0523 Decant Facility Equipment New UF New 70,000 - - - TOTALS - 950,000 - - - Number Title STORMWATER DR0123 Land Acquisition New R New 1,000,000 - - 850,000 DR0223 Decant Facility Equipment New UF New 70,000 - - - TOTALS - 1,070,000 - - 850,000 2023 PROJECT TOTAL 2023 PROPOSED BUDGET AMEND. REQUEST GRANT FUNDING STORMWATER PROJECTS 2022 PRIORITY 2023 PRIORITY 2022 PROJECT TOTAL 2023 PROJECT TOTAL 2023 PROPOSED BUDGET AMEND. REQUEST GRANT FUNDING SOLID WASTE PROJECTS 2022 PRIORITY 2023 PRIORITY 2022 PROJECT TOTAL 2023 PROJECT TOTAL 2023 PROPOSED BUDGET AMEND. REQUEST GRANT FUNDING WASTEWATER PROJECTS 2022 PRIORITY 2023 PRIORITY 2022 PROJECT TOTAL CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 38UNFUNDED PROJECTS Unfunded projects are included in the CFP to demonstrate the total capital need in each fund. Unfunded projects are typically large scale in nature and often quite costly. ▪The unfunded designation does not reduce the significance or importance of these projects. ▪Rather this indicates these projects are not an economic reality at this time without reprioritization of the projects outlined in the CFP. ▪There are currently 93 unfunded projects in the 7-year plan totaling $128.6 million. ▪Staff is constantly seeking grants for unfunded projects. UN F U N D E D P R O J E C T S CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 39UPCOMING PROJECTS IN THE CFP 20 2 3 - 20 2 4 P R O J E C T S ▪2023 Projects Total $44.6 million ▪2024 Projects Total $26.3 million ACTIVE 2023 BUDGET 8 13 6 2 4 7 2 2 0 44 2024 PROPOSED 9 2 1 1 2 2 1 2 0 20 PRIORITIZED 2023 BUDGET 3 10 0 5 8 4 1 4 0 35 2024 PROPOSED 6 16 1 4 8 2 2 4 0 43 REVOLVING 2023 BUDGET 9 3 1 1 1 1 0 0 0 16 2024 PROPOSED 10 3 1 1 1 1 0 0 0 17 TOTAL 2023 BUDGET 20 26 7 8 13 12 3 6 0 95 TOTAL 2024 PROPOSED 25 21 3 6 11 5 3 6 0 80 GRAND TOTAL 45 47 10 14 24 17 6 12 0 175 CITYWIDE PROJECTS GOVERN- MENTAL WATER WASTE WATER/CSO SOLID WASTE STORM WATER MEDIC 1 GRAND TOTALELECTRICTRANSPOR- TATION IT CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 40CLOSING STATEMENT CL O S I N G The City’s capital plan is diverse, thriving and changing to meet the needs of our community. ▪Guidance set by City Council has been utilized to not only keep the capital plan on course, but also to ensure the City is not over committing our resources. ▪The plan as presented is sustainable, without unnecessary rate increases or strain on other City funds. ▪Ensures City infrastructure may be enjoyed by our community for years to come. CAPITAL FACILITIES PLAN –COUNCIL WORKSESSION –MAY 23, 2023 41NEXT STEPS JUNE 13 JUNE 20 UAC discussion regarding the Utility CFP CFP/TIP Public Hearing Continuation & 2nd Reading of Resolution JUNE 6 CFP/TIP Public Hearing & 1st Reading of Resolution CL O S I N G P R E S E N T A T I O N T I T L E 42 CAPITAL FACILITIES PLAN -COUNCIL WORKSESSION –MAY 23, 2023 QUESTIONS AND DISCUSSION