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HomeMy WebLinkAbout05272025 Agenda CFPMay 27, 2025 Port Angeles City Council Special Meeting Page 1 May 27, 2025 City of Port Angeles Council Meeting Special Meeting Agenda This 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 the meeting in person, in Council chambers at City Hall located at 321 East 5th Street, Port Angeles, or remotely via telephone or video link. The Mayor may determine the order of business for a particular City Council meeting. The agenda should be arranged to best serve the needs and/or convenience of the Council and the public. The Mayor will determine time of break. Hearing devices are available for those needing assistance. The items of business for regular Council meetings may include the following: Audio only: 1-844-992-4726 United States Toll Free Access code: 2551 612 5400 Webinar password: WMiMJJEM332 (96465536 when dialing from a phone or video system) Webex link: https://cityofpa.webex.com/cityofpa/j.php?MTID=m699b5a7637847b73a6f8930da2ee2a54 These access codes are good for the May 27, 2025 meeting only. A. Call to Order – Special Meeting at 5:00 p.m. B. Capital Facilities Plan (CFP) and Transportation Improvement Plan (TIP) Work Session • Presentation by Finance Director Sarina Carrizosa on the CFP and TIP for the years 2026-2031. The document is available on the City’s website here: 2026-2031-Preliminary-Capital-Facilities-Plan-and-Transportation- Improvement-Plan-PDF C. Adjournment – 7:00 p.m. The City Council encourages citizen participation. An opportunity for public comment will be available during regular meetings. 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 Port Angeles City Hall is accessible for persons with disabilities. Requests for special accommodations can be made by contacting the City Clerk’s Office. Closed captioning can also be made available. Please contact City Clerk Kari Martinez-Bailey by phone at 360- 417-4634, or by email at cityclerk@cityofpa.us, to request accommodations or receive instructions for closed captioning. Kari Martinez-Bailey City Clerk cityclerk@cityofpa.us (p) 360-417-4634 │TTY 360-417-4645 2026 –2031 CAPITAL FACILITIES & TRANSPORTATION IMPROVEMENT PLAN City Council Work Session May 27, 2025 MEETING OBJECTIVES 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 2 Capital Facilities Plan Process 2024 Completed Projects Funding Sources and Expenses Cash Flows by Fund New and Unfunded Projects Questions & Discussion CAPITAL FACILITIES PLAN PROCESS 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 3 CAPITAL 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. Maximizes limited resources by planning for needs, prioritizing and coordinating projects and identifying funding options. 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 4 CAPITAL FACILITY PLANNING JA N . - MA R C H Department 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 M A Y CFP/TIP Reviewed by City Council, Utility Advisory Committee (UAC) and Port Angeles Citizens. Input is provided by these groups. City Council work session. JU N E Council conducts the 1st and 2nd Public Hearing and reading of the CFP/TIP resolution for consideration of adoption TIP is filed with the State 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 5 CAPITAL 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n MAINTENANCE Capital projects include the: Installation Build Purchase of Equipment or assets Exceed a one-year lifecycle Exceed $30,000 in cost Maintenance of assets are included in the City’s operating budget. $1.7M planned in 2025. Parks -$88,000 Streets –$119,900 Electric –$296,500 Water –$793,500 Wastewater –$187,500 Solid Waste –$175,800 Stormwater -$30,000 Capitalized at $7,500 City Council Work Session | May 27, 2025 | Slide 6 CITY COUNCIL’S OPPORTUNITY Learn about Capital projects, funding sources and costs. Discuss the CFP. Review and revise priorities if needed. 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 7 CITY COUNCIL DIRECTIVES 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.* *Ordinance #3615 adopted in Dec. of 2018 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 8 CFP CONSIDERATIONS Rising cost of inflation significantly impacted affordability in all utilities. Cost increases may impact the ability to deliver essential services to the community. Grant funding has been carefully vetted to ensure that critical projects are able to move forward in a timely and cost-effective manner. 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 9 While funding may have been identified for projects, adequate staff to complete the critical capital needs of the City is also essential. Through the recommendations from the UAC and City Council action additional positions have helped create capacity to move the plan forward. Maintaining staffing for capital projects will prevent delayed projects. CAPACITY 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 10 ESTIMATED PERSONNEL NEED 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 11 39 , 2 8 8 57 , 2 2 1 40 , 8 0 7 28 , 1 5 4 21 , 1 3 7 16 , 9 0 6 14 , 1 5 3 28 , 0 8 0 28 , 0 8 0 28 , 0 8 0 28 , 0 8 0 28 , 0 8 0 28 , 0 8 0 28 , 0 8 0 5.4 14.0 6.1 0.0 (3.3) (5.4)(6.7) (10.0) (5.0) 0.0 5.0 10.0 15.0 20.0 - 10,000 20,000 30,000 40,000 50,000 60,000 2025 2026 2027 2028 2029 2030 2031 ESTIMATED 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) Many projects 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. Projects included in the plan are critical and should not be deferred. PROJECT COMPLETION 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 12 COUNCIL REQUESTED UPDATES During the 2025-2030 CFP/TIP process City Council approved two alterations to the process starting in the 2026-2031 document that have been implemented: 1.A Housing section has been included in the General Governmental section 2.Historical funding estimates for all projects are listed in the last section. 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 13 2024 COMPLETED PROJECTS 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 14 2024 COMPLETED PROJECTS 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n Public Safety completed eight projects totaling $213,625 FD0415 –Turnout Gear FD0615 –Fire Hoses PD0116 –Mobile Data Terminal PD0120 –Taser Replacements PD0122 –Police Radio Replace PD0222 –PenCom Radios PD0223 –Body Worn Cameras PD0307 –Regional Range Facility Parks and Governmental completed six projects totaling $1,340,933 GG0303 –NICE Program PK0123 –Elks Pickleball Courts PK0216 –Facility Revolving Fund PK0423 –City Pier Tower Repair PK0519 –City Pier Erosion Stabilization & Sidewalk Repair PK0523 –Dream Playground City Council Work Session | May 27, 2025 | Slide 15 2024 COMPLETED PROJECTS 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n Transportation completed nine projects totaling $8,876,902 TR0209 –Race Street Phase I TR0221 –Marine Dr Paving TR0316 –8th St Chip Seal TR0417 –Ennis St Pavement TR0518 –I St Chip Seal (5th to 16th) TR0621 –Waterfront Trail Repairs TR0821 –Facility Assessment TR0918–Downtown Tree/Sidewalk TR1215 –City Hall East Parking Lot Information Technology completed three projects totaling $109,142 IT0320 –ESRI Migration to Arc Pro IT0416 –Cemetery Software IT0618 –Virtual Server Replacements City Council Work Session | May 27, 2025 | Slide 16 2024 COMPLETED PROJECTS 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n The Electric utility completed six projects totaling $726,288 CLCAP –Distribution/Overhead CL0719 –Underground Cable Replacement –2024 CL0123 –Overhead Reconductoring -2024 CL0217-I St Substation Switchgear CL0420 –College St. LTC CL1124 –Decant Facility The Water utility completed three projects totaling $329,484 CAPWT –General Water Equipment WT0321 –Facility Assessment WT0222 –Elwha Effluent Distribution Structure Bypass City Council Work Session | May 27, 2025 | Slide 17 2024 COMPLETED PROJECTS 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n The Wastewater utility completed five projects totaling $6,470,255 CAPWW –Wastewater Treatment Equipment WW0220 –West 4th St. Capacity Improvements WW0319 –Wastewater Comprehensive Plan WW0121 –Facility Assessment WW0120 –Pump Station #3 Force Main Replacement City Council Work Session | May 27, 2025 | Slide 18 FUNDING SOURCES & EXPENSES 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 19 FUNDING SOURCES 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 20 Revenue by Type 2025 2026 2027 2028 2029 2030 2031Utility 6,250,100 6,712,600 6,846,100 7,235,700 7,407,900 7,573,800 7,467,100 Grant 11,847,600 24,866,200 21,919,000 5,665,000 6,690,000 1,933,000 2,677,000 General Fund 1,365,100 1,686,500 1,577,700 1,641,500 1,603,500 1,662,200 1,645,400 Donations 202,700 975,000 75,000 75,000 75,000 75,000 75,000 Interest 67,100 78,200 53,100 50,200 43,000 47,500 48,600 REET 743,800 1,129,300 521,000 825,000 305,000 275,000 305,000 Utility Rate Stabilization Reserves 3,778,500 3,109,200 1,855,000 1,383,500 509,900 1,121,000 1,121,900 Landfill Post-closure Reserves - - - - 204,700 - - Internal service funds 87,900 91,200 76,900 94,700 57,800 63,300 79,800 Pencom 1,452,400 2,120,000 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 - 576,000 186,000 - - 300,000 - Housing Tax - - - - - - - Transportation Tax 2,045,700 1,157,800 2,900,000 2,540,000 1,105,000 940,000 1,255,000 Totals 27,857,200 42,518,300 36,076,100 19,576,900 18,068,100 14,057,100 14,741,100 REVENUE BY TYPE AND YEAR 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 21 - 5 10 15 20 25 30 35 40 2025 2026 2027 2028 2029 2030 2031 Mi l l i o n s REVENUES BY TYPE & YEAR Utility Grant Interest General Fund Donations REET Lodging Tax Pencom Transportation Tax GRANT FUNDING $75.6M in the 2026-2031 CFP/TIP 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 22 59.2 9.5 2.7 1.9 5.3In M i l l i o n s Transportation Governmental Electric Wastewater Stormwater SPENDING 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 23 Budget 2025 2026 2027 2028 2029 2030 2031Electric7,299,100 13,332,000 1,322,000 3,047,000 782,000 892,000 800,000 Equipment Services 5,067,800 1,398,900 1,998,800 1,703,600 1,986,200 1,361,600 2,650,500 General Government 9,279,300 9,543,000 682,900 830,400 564,900 1,474,100 567,300 Information Technologies 2,616,800 465,000 255,000 765,000 195,000 605,000 45,000 Medic 1 106,200 30,500 115,500 118,600 30,600 30,600 30,600 Solid Waste 82,900 270,000 884,500 110,800 409,500 215,300 767,500 Stormwater 958,800 1,009,600 502,000 4,308,000 347,000 4,119,000 2,759,000 Transportation 11,399,300 20,919,300 24,965,000 6,560,000 8,250,000 2,240,000 2,120,000 Wastewater & CSO 2,263,400 5,016,100 2,075,000 2,385,000 1,948,900 2,758,900 1,965,000 Water 3,036,400 7,398,300 4,080,000 560,000 1,250,000 2,050,000 1,050,000 Totals 42,110,000 59,382,700 36,880,700 20,388,400 15,764,100 15,746,500 12,754,900 CAPITAL FACILITIES PLANExpenditures SPENDING BY TYPE AND YEAR 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 24 - 10 20 30 40 50 2025 2026 2027 2028 2029 2030 2031 Mi l l i o n s SPENDING BY PROJECT TYPE AND YEAR Equipment Services General Government Information Technologies Solid Waste Stormwater Transportation Wastewater & CSO Water Medic 1 CASH BALANCES 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 25 - 2 4 6 8 10 12 14 16 18 Go v e r n m e n t a l Tr a n s p o r t a t i o n Eq u i p m e n t Se r v i c e s In f o r m a t i o n Te c h n o l o g y Me d i c 1 El e c t r i c So l i d W a s t e St o r m w a t e r Wa s t e w a t e r Wa t e r Mi l l i o n s CASH BALANCES PROJECTED BY PROJECT TYPE 2025 Beginning Cash 2031 Projected Cash CASH RATIO 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 26 0.1 1.6 7.0 0.9 16.5 2.4 3.0 1.2 0.9 0.9 - 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 Go v e r n m e n t a l Tr a n s p o r t a t i o n Eq u i p m e n t S e r v i c e s In f o r m a t i o n Te c h n o l o g y Me d i c 1 El e c t r i c So l i d W a s t e St o r m w a t e r Wa s t e w a t e r Wa t e r Cash Ratio to Depreciation Cash Ratio to Depreciation CASH RATIO 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 27 0.6 7.1 1.1 9.2 13.5 9.9 3.4 1.6 3.7 16.0 0.1 1.6 2.7 0.9 16.5 2.4 0.9 0.9 3.0 1.2 0 5 10 15 20 25 Ge n e r a l G o v e r n m e n t Tr a n s p o r t a t i o n Eq u i p m e n t S e r v i c e s IT Me d i c 1 El e c t r i c Wa t e r Wa s t e w a t e r So l i d W a s t e St o r m w a t e r 2025 2026 2027 2028 2029 2030 2031 CHANGES FROM THE 2025 –2030 CFP 2025 –2030 Adopted CFP $408,278,400 Projects Complete in 2024 $24,506,400 2031 Additions $10,904,900 New Projects $9,642,500 Project Cost Changes $13,832,200 2026 –2031 Proposed CFP $418,151,600= City Council Work Session | May 27, 2025 | Slide 28 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n CASH FLOWS 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 29 All Cash Flows GOVERNMENTAL CASH FLOW An additional transfer from the General fund in the amount of $75,000 is planned each year starting in 2026 to build the cash to depreciation level over time per Council directives. 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 30 2025 2026 2027 2028 2029 2030 2031Beginning Cash Balance 3,701,032 785,232 435,332 552,432 521,032 730,932 34,032 Funding sources:60,500 60,500 60,500 60,500 60,500 60,500 60,500 3,836,800 5,646,800 - 25,000 - - - 296,800 536,500 520,200 494,200 495,000 497,400 497,400 127,700 - - - - - - 2,041,700 2,949,300 219,300 219,300 219,300 219,300 219,300 Spending:(9,279,300) (9,543,000) (682,900) (830,400) (564,900) (1,474,100) (567,300) Ending Cash Balance 785,232 435,332 552,432 521,032 730,932 34,032 243,932 Depreciation 1,330,248 1,648,530 2,000,027 1,940,081 2,016,760 1,974,447 2,043,493 Depreciation to Cash Ratio 0.59 0.26 0.28 0.27 0.36 0.02 0.12 Project cost CASH FLOW ANALYSIS UtilitiesGrantsGeneral Fund FundingDonationsREET, Lodging tax GOVERNMENT CASH FLOW 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 31 - 21,000 50,000 114,100 127,700 423,500 2,130,000 3,337,500 3,822,400 9,508,600 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 Lodging Tax Medic I Housing Tax Range User Fees Donations Utilities REET General Fund PenCom Grants TRANSPORTATION CASH FLOW 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 32 2025 2026 2027 2028 2029 2030 2031Beginning Cash Balance 9,091,261 9,137,361 7,350,561 5,639,361 4,421,561 4,482,461 4,777,361 Funding sources:288,000 585,000 175,000 175,000 200,000 200,000 200,000 9,907,200 16,169,000 21,479,000 3,445,000 6,690,000 925,000 560,000 - - - - - - - 30,000 - - - - - - - 900,000 - - - - - 1,046,400 1,159,200 1,228,800 1,247,200 1,265,900 1,284,900 1,304,200 173,800 319,300 371,000 475,000 155,000 125,000 155,000 Spending:(11,399,300) (20,919,300) (24,965,000) (6,560,000) (8,250,000) (2,240,000) (2,120,000) Ending Cash Balance 9,137,361 7,350,561 5,639,361 4,421,561 4,482,461 4,777,361 4,876,561 Depreciation 1,280,948 1,667,271 2,263,032 2,484,785 2,828,599 3,071,602 3,111,013 Depreciation to Cash Ratio 7.13 4.41 2.49 1.78 1.58 1.56 1.57 DonationsTransportation Benefit District REET/LTAXProject cost CASH FLOW ANALYSIS UtilitiesGrantsExcess Operating ReserveGeneral Fund TRANSPORTATION CASH FLOW 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 33 30,000 900,000 1,774,100 1,823,000 8,536,600 59,175,200 - 20,000,000 40,000,000 60,000,000 General Fund Donations REET Utilities Transportation Benefit District Tax Grants IT CASH FLOW Transfer increases from all operating funds are planned starting in 2026 to complete the projects recommended. 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 34 2025 2026 2027 2028 2029 2030 2031Beginning Cash Balance 2,465,238 438,338 646,238 614,138 502,038 636,238 540,438 Funding sources: 430,900 524,400 161,900 545,100 268,200 401,400 161,900 - - - - - - - - - - - - - - 159,000 148,500 61,000 107,800 61,000 107,800 61,000 - - - - - - - - - - - - - - Spending: (2,616,800) (465,000) (255,000) (765,000) (195,000) (605,000) (45,000) Ending Cash Balance 438,338 646,238 614,138 502,038 636,238 540,438 718,338 Depreciation 47,393 576,626 557,811 485,197 636,383 391,454 788,126 Cash/Depreciation 9.25 1.12 1.10 1.03 1.00 1.38 0.91 GrantsComputer replacementsGeneral FundInterest/DonationsOther FundsProject Costs CASH FLOW ANALYSIS Utilities Reserves ELECTRIC CASH FLOW A $4.0 million transfer from excess operating reserves is planned in 2025 and 2026 combined to complete the Light Operations building as well as a 5.0% increase to utility rates to complete the plan. 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 35 2025 2026 2027 2028 2029 2030 2031Beginning Cash Balance 17,086,957 14,766,857 4,809,857 4,862,857 3,790,857 4,383,857 4,866,857 Funding sources:Electric Rates 800,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 Excess Operating Reserves 3,000,000 1,000,000 - - - - - Adjust. for cash timing - - - - - - - General Fund - - - - - - - Donations/Insurance 75,000 75,000 75,000 75,000 75,000 75,000 75,000 Other Funds/Grants 1,104,000 1,000,000 - 600,000 - - - Spending:Project cost (7,299,100) (13,332,000) (1,322,000) (3,047,000) (782,000) (892,000) (800,000) Ending Cash Balance 14,766,857 4,809,857 4,862,857 3,790,857 4,383,857 4,866,857 5,441,857 Depreciation 1,492,569 1,529,426 2,121,043 2,153,900 2,236,357 2,253,500 2,266,357 Depreciation to Cash Ratio 9.89 3.14 2.29 1.76 1.96 2.16 2.40 CASH FLOW ANALYSIS WATER CASH FLOW In 2027, 2029 and 2031 an increase of approximately 2.0%to rates is planned to complete large critical projects. The use of $3.5 million will occur from reserves designated for rate stabilization. 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 36 2025 2026 2027 2028 2029 2030 2031Beginning Cash Balance 7,428,172 6,066,772 1,532,472 252,472 1,992,472 2,192,472 1,592,472 Funding sources:Water Rates 1,100,000 1,100,000 1,300,000 1,300,000 1,450,000 1,450,000 1,550,000 Grants - - - - - - - Excess Operating Reserve - 1,000,000 1,500,000 1,000,000 - - - General Fund - - - - - - - Donations - - - - - - - NPS Reserves for Industrial 575,000 764,000 - - - - - Spending:Project cost (3,036,400) (7,398,300) (4,080,000) (560,000) (1,250,000) (2,050,000) (1,050,000) Ending Cash Balance 6,066,772 1,532,472 252,472 1,992,472 2,192,472 1,592,472 2,092,472 Depreciation 1,804,694 1,878,527 1,940,927 2,028,927 2,143,460 2,204,860 2,214,860 Depreciation to Cash Ratio 3.36 0.82 0.13 0.98 1.02 0.72 0.94 CASH FLOW ANALYSIS WASTEWATER CASH FLOW In 2027, 2029 and 2031 an increase of approximately 2.0%to rates is planned to complete large critical projects. 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 37 CASH FLOW ANALYSIS 2025 2026 2027 2028 2029 2030 2031Beginning Cash Balance 4,229,893 3,345,393 1,767,193 1,877,293 1,270,993 1,414,293 1,361,093 Funding sources:Wastewater Rates 1,200,000 1,200,000 1,450,000 1,450,000 1,650,000 1,650,000 1,700,000 Grants 12,800 1,425,400 440,000 - - - - Bonds/Interest/Other 51,700 556,200 29,700 31,500 21,400 23,800 22,900 General Fund - - - - - - - Donations - - - - - - - Excess operating reserves - - - - - - - CSO Surcharge 2,358,200 2,358,200 2,358,200 2,358,200 2,358,200 2,358,200 2,358,200 Spending:Debt Payments (projected)(2,243,800) (2,101,900) (2,092,800) (2,061,000) (1,937,400) (1,326,300) (1,325,400) Project Costs (2,263,400) (5,016,100) (2,075,000) (2,385,000) (1,948,900) (2,758,900) (1,965,000) Ending Cash Balance 3,345,393 1,767,193 1,877,293 1,270,993 1,414,293 1,361,093 2,151,793 Depreciation 2,055,568 2,122,426 2,221,063 2,251,907 2,268,215 2,271,548 2,450,923 Depreciation to Cash Ratio 1.63 0.83 0.85 0.56 0.62 0.60 0.88 SOLID WASTE CASH FLOW No rate changes are planned in the 2026-2031 CFP cycle. 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 38 2025 2026 2027 2028 2029 2030 2031Beginning Cash Balance 1,794,883 2,199,383 2,340,283 1,868,783 2,162,983 2,368,883 2,566,383 1,283,400 1,283,400 1,283,400 1,283,400 1,283,400 1,283,400 1,283,400 Solid Waste Rates 300,000 300,000 300,000 300,000 300,000 300,000 300,000 Grants 82,900 - - - - - - Bonds (net used & paid)(1,194,300) (1,194,500) (1,193,800) (1,197,100) (1,194,300) (1,194,300) (1,194,300) General Fund - - - - - - - Landfill Post-Closure - - - - 204,700 - - Interest Income 15,400 22,000 23,400 18,700 21,600 23,700 25,700 Spending:Project Cost (82,900) (270,000) (884,500) (110,800) (409,500) (215,300) (767,500) Ending Cash Balance 2,199,383 2,340,283 1,868,783 2,162,983 2,368,883 2,566,383 2,213,683 Depreciation 595,592 637,208 645,608 707,908 712,740 726,390 736,155 Depreciation to Cash Ratio 3.69 3.67 2.89 3.06 3.32 3.53 3.01 CASH FLOW ANALYSISLandfill Surcharge* Funding sources: STORMWATER CASH FLOW Rate increases of approximately 3.5% in 2027 and 1.0% in 2031 years in line with the cost-of-service analysis schedule. Utilization of NICE funds and REET for rate stabilization. 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 39 2025 2026 2027 2028 2029 2030 2031Beginning Cash Balance 3,398,001 2,915,200 3,082,600 3,531,600 1,783,600 2,201,600 205,600 Funding sources:Stormwater Rates 461,000 461,000 750,000 750,000 750,000 800,000 800,000 Grants - 625,000 - 1,595,000 - 1,008,000 2,117,000 Bonds - - - - - - - General Fund 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Use of Reserves - One Time T - - - - - - - NICE Funds, REET 2 - 76,000 186,000 200,000 - 300,000 - Spending:Project cost (958,800) (1,009,600) (502,000) (4,308,000) (347,000) (4,119,000) (2,759,000) Ending Cash Balance 2,915,200 3,082,600 3,531,600 1,783,600 2,201,600 205,600 378,600 Depreciation 182,614 223,639 225,514 228,789 265,133 265,133 312,321 Depreciation to Cash Ratio 15.96 13.78 15.66 7.80 8.30 0.78 1.21 CASH FLOW ANALYSIS MEDIC 1 CASH FLOW No rate changes are planned in the 2026-2031 CFP cycle. 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 40 2025 2026 2027 2028 2029 2030 2031Beginning Cash Balance 1,566,969 1,511,269 1,531,269 1,466,269 1,398,269 1,418,269 1,438,269 Funding sources:50,500 50,500 50,500 50,600 50,600 50,600 50,600 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Spending:(106,200) (30,500) (115,500) (118,600) (30,600) (30,600) (30,600) Ending Cash Balance 1,511,269 1,531,269 1,466,269 1,398,269 1,418,269 1,438,269 1,458,269 Depreciation 111,818 101,276 68,101 57,576 78,301 83,401 88,501 Depreciation to Cash Ratio 13.52 15.12 21.53 24.29 18.11 17.25 16.48 Donations/InsuranceOther FundsProject Costs CASH FLOW ANALYSIS Utility ReservesGrantsBondsGeneral Fund EQUIPMENT SERVICES CASH FLOW 30 Vehicle Replacements planned in 2025 totaling $5.1M 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 41 15 Vehicle Replacements planned in 2026 totaling $1.4M CASH FLOW ANALYSIS 2025 2026 2027 2028 2029 2030 20315,190,763 2,631,363 3,438,363 3,868,163 4,660,263 5,214,963 6,391,963 (5,067,800) (1,398,900) (1,998,800) (1,703,600) (1,986,200) (1,361,600) (2,650,500) 1,556,200 1,128,200 1,295,200 1,301,500 1,375,600 1,358,300 1,341,100 864,300 986,500 1,056,500 1,099,500 1,107,500 1,117,000 1,147,000 85,400 88,700 74,400 91,900 55,000 60,500 76,500 2,500 2,500 2,500 2,800 2,800 2,800 3,300 Ending Cash Balance 2,631,363 3,438,363 3,868,163 4,660,263 5,214,963 6,391,963 6,309,363 Beginning Cash BalanceVehicle purchases Funding sources:Utilities ReservesGeneral FundSales, Interest & GrantsInternal Service Funds NEW & UNFUNDED PROJECTS 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 42 3 Electric Projects $1,250,000 6 Solid Waste Projects $2,410,000 5 Water Projects $1,625,000 2 Wastewater Projects $1,000,000 1 Stormwater Project $480,000 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n NEW PROJECTS Total $9.6M 29 City Council Work Session | May 27, 2025 | Slide 43 5 General Government Projects$477,500 3 Transportation Projects $1,110,000 2 IT Projects $1,290,000 NEW PROJECTS GENERAL GOVERNMENT PROJECTS 2025 PROJECT TOTAL Emergency Operations Center Tech.77,500 Core City Facilities Assessment 50,000 Pebble Beach Park Nourishment 50,000 Park Shop Greenhouse 75,000 Parking Lot Repaving –Haynes & Pier 225,000 GENERAL GOVERNMENT TOTAL $477,500 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 44 NEW PROJECTS TRANSPORTATION PROJECTS 2025 PROJECT TOTAL Crosswalk Enhancement Program 150,000 16th/18th Pavement (E to L Streets)810,000 Streetlight Program 150,000 TRANSPORTATION TOTAL $1,110,000 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n IT PROJECTS 2025 PROJECT TOTAL Continuous Operations POD 90,000 Building Access Control 1,200,000 IT TOTAL $1,290,000 City Council Work Session | May 27, 2025 | Slide 45 NEW PROJECTS ELECTRIC PROJECTS 2025 PROJECT TOTAL Underground Cable Replacement -2031 300,000 Overhead Reconductoring -2031 250,000 Vandalism Repairs 700,000 ELECTRIC TOTAL $1,250,000 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n WASTEWATER PROJECTS 2025 PROJECT TOTAL 2031 Neighborhood Sewer Rehabilitation 750,000 Wastewater System SCADA Upgrades 250,000 WASTEWATER TOTAL $1,000,000 City Council Work Session | May 27, 2025 | Slide 46 NEW PROJECTS WATER PROJECTS 2025 PROJECT TOTAL Jones St. Reservoir Valve Replacement 300,000 Jones St. Reservoir Fence 200,000 Low Zone Intertie 750,000 Elwha Surface Water Intake Hydraulics 325,000 Elwha Flow Metering and Reporting 50,000 WATER TOTAL $1,625,000 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n STORMWATER PROJECT 2025 PROJECT TOTAL P St. and McDonald St. Outfall Repairs 480,000 STORMWATER TOTAL $480,000 City Council Work Session | May 27, 2025 | Slide 47 NEW PROJECTS 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 48 SOLID WASTE PROJECTS 2025 PROJECT TOTAL Lower Scale Evaluation & Replacement 180,000 Metal Recycle Pavement Repair 350,000 Decommission Old Decant Facility 60,000 Decant Facility Site Fencing 150,000 Restore Compost Operations 100,000 Long Haul Truck Tarping Station 220,000 Transfer Station Tipping Floor Repair 400,000 Transfer Station Building Roof 950,000 SOLID WASTE TOTAL $2,410,000 UNFUNDED PROJECTS 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n Unfunded Utility Projects $163.4 M 112Unfunded projects are included in the CFP to demonstrate the total capital need in each fund. The unfunded designation does not reduce the significance or importance of these projects. Rather this indicates these projects are not an economic reality without reprioritization of the projects. Unfunded projects are typically large scale and costly. City Council Work Session | May 27, 2025 | Slide 49 UPCOMING PROJECTS 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n Projects 113 $42.1 M 2 0 2 5 Projects 97 $59.4 M 2 0 2 6 City Council Work Session | May 27, 2025 | Slide 50 The City’s capital plan is diverse, thriving and changing to meet the needs of our community. The plan is sustainable, without unnecessary rate increases or burden on other City funds. Guidance has kept the capital plan on course and ensured the City is not over committing our resources. Ensures City infrastructure may be enjoyed by our community for years to come. CLOSING 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 51 NEXT STEPS JUNE 17 CFP/TIP Public Hearing Continuation & 2nd Reading of Resolution JUNE 3 CFP/TIP Public Hearing & 1st Reading of Resolution 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 52 The Utility Advisory Committee sent a favorable recommendation to the City Council for approval of the utility portion of the 2026-2031 Capital Facility Plan RECOMMENDATION TO CITY COUNCIL 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 53 QUESTIONS AND DISCUSSION 20 2 6 – 20 3 1 C a p i t a l F a c i l i t i e s P l a n City Council Work Session | May 27, 2025 | Slide 54