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City of Fernley Debt Management Policy Fiscal Year 2007 Prepared July 2006 Johnson Consulting Group 1400 Wyoming Street, Suite 3 Boulder City, NV 89006 [PHONE REDACTED] fax [PHONE REDACTED] ---PAGE BREAK--- i EXECUTIVE SUMMARY This Debt Management Policy was created to fulfill the requirements of NRS 350.013. The City is generally limited in the bonds it can issue by its statutory debt limit, the $3.64 limit on overlapping tax rates and the amount of revenue available to pay debt service on bonds. The policy discusses the outstanding and proposed debt of the City, its ability to afford such debt and other items relating to the issuance of bonds by the City. As of June 30, 2006, the City has $1,560,282 of general obligation revenue supported debt outstanding. The City’s general obligation revenue supported debt is paid from water and sewer systems revenue. The City is currently in the process of obtaining authorization for an additional $50,000,000 of general obligation revenue supported debt which it anticipates issuing over the next two years. This additional debt will be used to provide infrastructure for the City’s water and sewer systems. The City presently has approximately $113,322,000 of statutory debt limit available. The City also has installment purchase debt outstanding in the amount of $5,000,000 outstanding. The installment purchase is paid from general fund resources and is not considered general obligation debt . The City identified the need for approximately $144,143,644 of capital improvements in fiscal years 2007 through 2011, these projects will be funded with general revenues, grants, user fees, consolidated taxes, bonds and by developer reimbursements. ---PAGE BREAK--- ii TABLE OF CONTENTS Page Affordability of Existing, Authorized and Proposed General Obligation Debt . . . . . . . . . . . . . . . . . . . 1 Outstanding, Authorized and Proposed General Obligation Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 General Obligation Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 General Obligation Water System Revenue Secured Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 General Obligation Sewer System Revenue Secured Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Proposed General Obligation Revenue Supported Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 General Obligation Debt Limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 General Obligation Debt Comparisons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Method of Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Operational Costs of Future Capital Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Capital Improvement Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Chief Financial Officer of the City . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 APPENDIX A - GENERAL OBLIGATION REVENUE BONDS DEBT SERVICE SCHEDULES APPENDIX B - FIVE-YEAR CAPITAL IMPROVEMENT PLAN ---PAGE BREAK--- iii TABLES Page Outstanding Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Water System Revenue Secured Bonds Outstanding Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Water System Revenue Secured Bonds Debt Service Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Sewer System Revenue Secured Bonds Outstanding Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Proposed General Obligation Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Pro Forma Debt Service Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Pledged Revenue and Coverage Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 General Obligation Debt Limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 General Obligation Debt Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 ---PAGE BREAK--- Debt Management Policy City of Fernley 1 Affordability of Existing, Authorized and Proposed General Obligation Debt NRS 350.013 A discussion of its ability to afford existing general obligation debt, authorized future general obligation debt and proposed future general obligation debt; NRS 350.013 A discussion of its sources of money projected to be available to pay existing general obligation debt, authorized future general obligation debt and proposed future general obligation debt; Outstanding, Authorized and Proposed General Obligation Debt As of June 30, 2006, the City has no general obligation bonds outstanding. The City has $1,560,282 in general obligation revenue supported debt outstanding. The City anticipates issuing $50,000,000 of general obligation revenue supported debt over the next two years. It expects to issue $30,000,000 in fiscal year 2007 and $20,000,000 in fiscal year 2008. The City is in the process of getting authorization for this debt.. The City reserves the privilege of issuing bonds or other securities at any time legal requirements are satisfied. The City has $5,000,000 of lease purchase debt outstanding which is not counted against its debt limit. The following table lists the outstanding debt of the City. Outstanding Debt June 30, 2006 Date Issued Maturity Date Original Amount Amount Outstanding GENERAL OBLIGATION REVENUE SUPPORTED BONDS Water Refunding Bonds 11/25/03 11/01/09 $950,000 $670,000 Sewer Bonds (SRF) 10/28/92 06/30/12 2,000,000 890,282 TOTAL GENERAL OBLIGATION REVENUE DEBT $1,560,282 OTHER DEBT City Hall Expansion 12/29/05 12/12/25 $5,000,000 $5,000,000 SOURCE: City of Fernley 2007 Final Budget Appendix A contains individual debt service schedules for each of the outstanding bond issues. General Obligation Bonds The City currently has no outstanding general obligation debt paid by the levy of a specific property tax. ---PAGE BREAK--- Debt Management Policy City of Fernley 2 General Obligation Water System Revenue Secured Bonds The City currently has $670,000 of outstanding general obligation debt secured by a lien on the net pledged revenues of its water system. The following table details the payments on the bonds. Water System Revenue Secured Bonds Outstanding Debt Service As of June 30, 2006 Fiscal Year Principal Interest Annual Debt Service 2007 $155,000 $25,925 $180,925 2008 160,000 18,050 178,050 2009 170,000 9,800 179,800 2010 185,000 2,775 187,775 Total $670,000 $56,550 $726,550 SOURCE: City of Fernley ---PAGE BREAK--- Debt Management Policy City of Fernley 3 The following table demonstrates the debt service coverage for the bonds. Water System Revenue Secured Bonds Debt Service Coverage FY 2005 (Audited) FY 2006 (Estimated) FY 2007 (Budgeted) Water Fund User Fees $1,975,451 $2,425,000 $2,798,000 Connection Charges 2,026,164 1,125,000 1,125,000 Other Pledged Revenues 1,028,957 849,000 694,000 Water Revenues 5,030,572 4,399,000 4,617,000 Less: Operating Expenses 1 (1,399,676) (1,779,600) (2,048,700) Water Pledged Revenues 3,630,896 2,619,400 2,568,300 Alternate Water Fund Connection Charges 131,300 130,000 500,000 Other Pledged Revenues 990 20,000 20,000 Alternate Water Pledged Rev. 132,290 150,000 520,000 Total Pledged Revenues $3,763,186 $2,769,400 $3,088,300 Maximum Annual Debt Service 2 $187,775 $187,775 $187,775 Coverage 20.04 14.75 16.45 1 Operating expenses exclude depreciation. 2 Maximum annual debt service of $187,775 occurs in fiscal year 2010. SOURCE: City of Fernley, Nevada, compiled by Johnson Consulting Group ---PAGE BREAK--- Debt Management Policy City of Fernley 4 General Obligation Sewer System Revenue Secured Bonds The City currently has $890,282 of outstanding general obligation debt secured by a lien on the net pledged revenues of its sewer system. The following table details the payments on the bonds. Sewer System Revenue Secured Bonds Outstanding Debt Service As of June 30, 2006 Fiscal Year Principal Interest Annual Debt Service 2007 $122,502 $34,398 $156,900 2008 127,451 29,449 156,900 2009 132,600 24,300 156,900 2010 137,957 18,943 156,900 2011 143,531 13,370 156,900 2012 149,329 7,571 156,900 2013 76,912 1,538 78,450 Total $890,282 $129,570 $1,019,852 SOURCE: City of Fernley ---PAGE BREAK--- Debt Management Policy City of Fernley 5 The following table demonstrates the debt service coverage for the bonds. Pledged Revenue and Coverage Schedule FY 2005 (Audited) FY 2006 (Estimated) FY 2007 (Budgeted) Sewer Fund User Fees $1,441,455 $1,525,500 $1,655,500 Connection Charges 2,182,969 1,386,000 1,848,000 Other Pledged Revenues 163,832 416,500 447,000 Sewer Revenues 3,788,256 3,328,000 3,950,500 Less: Operating Expenses 1 (939,053) (1,150,900) (1,224,000) Pledged Revenues $2,849,203 $2,177,100 $2,726,500 Annual Debt Service $156,900 $156,900 $156,900 Coverage 18.16 13.88 17.38 1 Operating Expenses exclude depreciation. SOURCE: City of Fernley, Nevada, compiled by Johnson Consulting Group ---PAGE BREAK--- Debt Management Policy City of Fernley 6 Proposed General Obligation Revenue Supported Debt The City has begun the process of authorizing $50,000,000 of general obligation revenue supported debt in order to finance improvements to its water and sewer systems. The City anticipates issuing these bonds in two issues, one in early 2007 and the other in early 2008. The City will pay the Proposed Bonds with the revenues generated from its water and sewer systems. The tables below show the proposed debt and the pro forma debt service for the two bond issues. Proposed General Obligation Debt Proposed Bonds Date Issued 1 Par Amount Water and Sewer Bonds 2007 $30,000,000 Water and Sewer Bonds 2008 20,000,000 TOTAL $50,000,000 1 Based on current assumptions. Actual issuance dates and amounts depend upon many factors, including assessed value growth, interest rates, project costs and timing. SOURCE: City of Fernley, Nevada; compiled by Johnson Consulting Group ---PAGE BREAK--- Debt Management Policy City of Fernley 7 Pro Forma Debt Service Requirements Fiscal Year Ended June 30 Proposed Bonds Spring 2007 Proposed Bonds Spring 2008 Grand Total Principal Interest Total Principal Interest Total 2007 $0 $0 $0 $0 $0 $0 $2,007 2008 0 1,575,000 1,575,000 0 0 0 1,577,008 2009 460,000 1,575,000 2,035,000 0 1,100,000 1,100,000 3,137,009 2010 485,000 1,550,850 2,035,850 295,000 1,100,000 1,395,000 3,432,860 2011 510,000 1,525,388 2,035,388 310,000 1,083,776 1,393,776 3,431,175 2012 540,000 1,498,612 2,038,612 330,000 1,066,726 1,396,726 3,437,350 2013 565,000 1,470,262 2,035,262 345,000 1,048,576 1,393,576 3,430,851 2014 595,000 1,440,600 2,035,600 365,000 1,029,600 1,394,600 3,432,214 2015 630,000 1,409,362 2,039,362 385,000 1,009,526 1,394,526 3,435,903 2016 660,000 1,376,288 2,036,288 405,000 988,350 1,393,350 3,431,654 2017 695,000 1,341,638 2,036,638 430,000 966,076 1,396,076 3,434,731 2018 730,000 1,305,150 2,035,150 455,000 942,426 1,397,426 3,434,594 2019 770,000 1,266,826 2,036,826 480,000 917,400 1,397,400 3,436,245 2020 810,000 1,226,400 2,036,400 505,000 891,000 1,396,000 3,434,420 2021 855,000 1,183,876 2,038,876 530,000 863,226 1,393,226 3,434,123 2022 900,000 1,138,988 2,038,988 560,000 834,076 1,394,076 3,435,086 2023 945,000 1,091,738 2,036,738 595,000 803,276 1,398,276 3,437,037 2024 995,000 1,042,126 2,037,126 625,000 770,550 1,395,550 3,434,700 2025 1,045,000 989,888 2,034,888 660,000 736,176 1,396,176 3,433,089 2026 1,105,000 935,026 2,040,026 695,000 699,876 1,394,876 3,436,928 2027 1,160,000 877,012 2,037,012 735,000 661,650 1,396,650 3,435,689 2028 1,220,000 816,112 2,036,112 775,000 621,226 1,396,226 3,434,366 2029 1,285,000 752,062 2,037,062 815,000 578,600 1,393,600 3,432,691 2030 1,355,000 684,600 2,039,600 860,000 533,776 1,393,776 3,435,406 2031 1,425,000 613,462 2,038,462 910,000 486,476 1,396,476 3,436,969 2032 1,500,000 538,650 2,038,650 960,000 436,426 1,396,426 3,437,108 2033 1,575,000 459,900 2,034,900 1,010,000 383,626 1,393,626 3,430,559 2034 1,660,000 377,212 2,037,212 1,070,000 328,076 1,398,076 3,437,322 2035 1,750,000 290,062 2,040,062 1,125,000 269,226 1,394,226 3,436,323 2036 1,840,000 198,188 2,038,188 1,190,000 207,350 1,397,350 3,437,574 2037 1,935,000 101,588 2,036,588 1,255,000 141,900 1,396,900 3,435,525 2038 0 0 0 1,325,000 72,876 1,397,876 1,399,914 TOTAL $30,000,000 $30,651,866 $60,651,866 $20,000,000 $21,571,844 $41,571,844 $102,288,430 ---PAGE BREAK--- Debt Management Policy City of Fernley 8 The proposed bonds will be paid from water and sewer system revenues and are not expected to have any effect on the tax rate. The table below shows the coverage of the outstanding and proposed debt service by the pledged revenues. Pledged Revenue and Coverage Schedule Fiscal Year 2004 (Actual) Fiscal Year 2005 (Actual) Fiscal Year 2006 (Estimated) Fiscal Year 2007 (Budgeted) Fiscal Year 2008 (Projected) Fiscal Year 2009 (Projected) Water Fund User Fees $1,794,430 $1,975,451 $2,425,000 $2,798,000 $3,217,700 $3,700,355 Operating Expenses 1 (1,336,859) (1,399,676) (1,779,600) (2,048,700) (2,458,440) (2,950,128) Connection Charges 1,529,900 2,026,164 1,125,000 1,125,000 1,000,000 1,000,000 Other Pledged Revenues 1,701,365 1,028,957 849,000 694,000 600,000 600,000 Water Pledged Revenues 3,688,836 3,630,896 2,619,400 2,568,300 2,359,260 2,350,227 Sewer Fund User Fees 1,187,212 1,441,455 1,525,500 1,655,500 1,787,940 1,930,975 Operating Expenses 1 (759,197) (939,053) (1,150,900) (1,224,000) (1,346,400) (1,481,040) Connection Charges 1,907,505 2,182,969 1,386,000 1,848,000 1,500,000 1,500,000 Other Pledged Revenues 42,604 163,832 416,500 447,000 400,000 400,000 Sewer Pledged Revenues 2,378,124 2,849,203 2,177,100 2,726,500 2,341,540 2,349,935 Alternate Water Fund Connection Charges 131,300 130,000 500,000 200,000 200,000 Other Pledged Revenues 990 20,000 20,000 10,000 10,000 Alternate Water Pledged Rev. 0 132,290 150,000 520,000 210,000 210,000 Total Pledged Revenues 6,066,960 6,612,389 4,946,500 5,814,800 4,910,800 4,910,162 Existing Debt - Water (FY10) 175,425 178,425 180,925 178,050 179,800 Existing Debt - Sewer (FY12) 156,900 156,900 156,900 156,900 156,900 156,900 Proposed Debt Service 0 0 0 0 1,575,000 3,135,000 Total Debt Service 332,325 335,325 337,825 1,909,950 3,471,700 Coverage 19.90 14.75 17.21 2.57 1.41 1 Operating Expenses exclude depreciation. SOURCE: City of Fernley, Nevada, compiled by Johnson Consulting Group ---PAGE BREAK--- Debt Management Policy City of Fernley 9 General Obligation Debt Limit NRS 350.013 A discussion of its capacity to incur authorized and proposed future general obligation debt without exceeding the applicable debt limit; The City is limited by state statutes as to the amount of general obligation debt it can have outstanding. The limit is equal to 30 percent of the City’s total assessed valuation. As of June 30, 2006, the City has no general obligation debt outstanding or proposed. Based on the fiscal year 2006 assessed value of $377,743,200, the City’s available general obligation debt limit is approximately $63,322,960. General Obligation Debt Limit Based on Fiscal Year 2006 Assessed Value Total Assessed Value $377,743,200 General Obligation Debt Limit (30%) 113,322,960 Less: Outstanding General Obligation Debt 1,560,282 Less: Proposed General Obligation Debt 50,000,000 Available General Obligation Debt Limit $63,322,960 Other factors also limit the amount of debt the City can issue. These factors include, but are not limited to, voter approval, overlapping tax rates, available revenues, market conditions, and types of projects to be funded. ---PAGE BREAK--- Debt Management Policy City of Fernley 10 General Obligation Debt Comparisons NRS 350.013 A discussion of its general obligation debt that is payable from property taxes per capita as compared with such debt of other municipalities in this state; NRS 350.013 A discussion of its general obligation debt that is payable from property taxes as a percentage of assessed valuation of all taxable property within the boundaries of the municipality; The following table shows a comparison of the City’s outstanding debt with other comparable local governments. General Obligation Debt Comparison as of June 30, 2006 City Total General Obligation Debt Population 1 FY 2006 Assessed Value 2 GO Debt Per Capita GO Debt as a % of Assessed Value Boulder City $0 15,203 $563,511,360 $0.00 0.00% Elko 820,000 17,850 296,771,239 45.94 0.28% Fernley 1,560,282 16,357 377,743,200 95.39 0.41% Fallon 10,182,080 8,339 126,555,509 1,221.02 8.05% Mesquite 0 16,423 419,313,111 0.00 0.00% Winnemucca 0 7,234 117,347,730 0.00 0.00% Average: $272.47 1.75% 1 Excludes redevelopment agencies. 2 Population estimates are as of July 1, 2005, the latest available figures from the State demographer. SOURCE: Nevada Department of Taxation, Nevada State Demographer and the cities; complied by Johnson Consulting Group ---PAGE BREAK--- Debt Management Policy City of Fernley 11 Method of Sale NRS 350.013 Policy regarding the manner in which the municipality expects to sell its debt; Bonds can generally be sold at a competitive sale, negotiated sale or be privately placed. Competitive Sale - Offering documents are sent to any firm interested in purchasing the bonds. A day and time are chosen for the sale and bonds are generally awarded to the firm offering the lowest true interest cost on the bonds (the “TIC”). The TIC is the discount rate which results in a present value of the future debt service payments equal to amount bid for the bonds. Negotiated Sale - One firm, or group of firms, is chosen in advance to offer the bonds for sale. At the time of sale, interest rates and other terms of the bonds are negotiated with the underwriter. Private Placement - A purchaser, usually an individual or bank, is identified and the bonds are placed directly. Interest rates and other terms of the bonds are negotiated with the purchaser. NRS 350 generally requires bonds issued by the City to be sold at competitive sale. For most City general obligation bonds a competitive sale will usually result in the lowest TIC on the bonds. There are certain circumstances under which the City would consider a negotiated sale or private placements. Such circumstances include, but are not limited to: 1) Bonds issued with a variable rate of interest 2) Bonds rated below A- or not rated 3) Very small or very large bond issues 4) Unstable or highly volatile markets 5) Bonds with unusual security or structure The City will follow the requirements of NRS 350.155 in choosing a method of sale for its bonds. If the City determines that a negotiated sale is warranted for a general obligation bond or a bond secured by an excise tax, it will distribute a request for proposal to underwriting firms. The selection of an underwriter(s) will be based on a determination of the firm that demonstrates its ability to obtain the overall best interest rate for City. Consideration in making this determination will be given to the firm’s experience with similar financings, proposed compensation structure and marketing plan. ---PAGE BREAK--- Debt Management Policy City of Fernley 12 Operational Costs of Future Capital Projects NRS 350.013 A discussion of its operational costs and revenue sources, for the ensuing 5 fiscal years, associated with each project included in its plan for capital improvement submitted pursuant to paragraph if those costs and revenues are expected to affect the property tax rate. The City has prepared a Capital Improvement Plan, a summary of which is attached as Appendix B. There are no contemplated projects which would require the City to issue general obligation bonds nor levy a specific property tax. Operational costs will be paid for from operating funds for the water and sewer systems and are not expected to impact the property tax rate. Capital Improvement Plan NRS 350.013 1.(d) Either: Its plan for capital improvement for the ensuing 5 fiscal years, which must include any contemplated issuance of general obligation debt during this period and the sources of money projected to be available to pay the debt; or A statement indicating that no changes are contemplated in its plan for capital improvement for the ensuing 5 fiscal years. The City’s five-year capital improvement plan is attached as Appendix B. Chief Financial Officer of the City NRS 350.013 1.(e) A statement containing the name, title, mailing address and telephone number of the chief financial officer of the municipality. The chief financial officer of the City of Fernley is: Bonnie Duke CPA City Treasurer 595 Silver Lace Boulevard Fernley, Nevada 89408 [PHONE REDACTED] [PHONE REDACTED] fax [EMAIL REDACTED] ---PAGE BREAK--- Debt Management Policy City of Fernley APPENDIX A GENERAL OBLIGATION REVENUE BONDS DEBT SERVICE SCHEDULES ---PAGE BREAK--- Debt Management Policy City of Fernley A-1 Debt Service Summary 1992 Sewer Revenue Bonds Date Principal Coupon Interest Total Payment Annual Payment 07/01/06 $60,645 4.000% $17,806 $78,450 01/01/07 61,857 4.000% 16,593 78,450 $156,900 07/01/07 63,095 4.000% 15,356 78,450 01/01/08 64,356 4.000% 14,094 78,450 156,900 07/01/08 65,644 4.000% 12,807 78,450 01/01/09 66,956 4.000% 11,494 78,450 156,900 07/01/09 68,296 4.000% 10,155 78,450 01/01/10 69,661 4.000% 8,789 78,450 156,900 07/01/10 71,055 4.000% 7,395 78,450 01/01/11 72,476 4.000% 5,974 78,450 156,900 07/01/11 73,925 4.000% 4,525 78,450 01/01/12 75,404 4.000% 3,046 78,450 156,900 07/01/12 76,912 4.000% 1,538 78,450 78,450 TOTAL $890,282 $129,570 $1,019,852 $1,019,852 Debt Service Summary 2003 Water Revenue Refunding Bonds Date Principal Coupon Interest Total Payment Annual Payment 11/01/06 $155,000 5.000% $14,900 $169,900 05/01/07 11,025 11,025 $180,925 11/01/07 160,000 5.000% 11,025 171,025 05/01/08 7,025 7,025 178,050 11/01/08 170,000 5.000% 7,025 177,025 05/01/09 2,775 2,775 179,800 11/01/09 185,000 3.000% 2,775 187,775 TOTAL 670,000 $56,550 $726,550 $538,775 ---PAGE BREAK--- Debt Management Policy City of Fernley APPENDIX B FIVE-YEAR CAPITAL IMPROVEMENT PLAN ---PAGE BREAK--- FIVE YEAR CAPITAL IMPROVEMENT PLAN ENTITY: City of Fernley (Per NRS 354.5945) DATE: July 5, 2006 Minimum level of expenditure for items classified as capital projects 5,000 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: General Fund Capital Improvement: Vehicles and Machinery 67,200 70,000 70,000 70,000 70,000 Funding Source: General Revenues Completion Date: 6/30/XX (end of each fiscal year) Normal Replacements of equipment Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Court Facilities Fees Fund Capital Improvement: City Hall Expansion (Court Facilities Portion) 90,000 Funding Source: NRS 176.0611 fee already collected Completion Date: June 30, 2007 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Grants Fund Capital Improvement: Matching Funds for Future Grants 100,000 100,000 100,000 100,000 Funding Source: Prior transfers from General Fund Completion Date: 6/30/XX (end of each fiscal year) as grants are identified and ap Fund Total List of Funding Sources: Property Tax - Gen. Revenues Charges for Services Debt Grants Other ( Please Describe) CIP 1 Page 1 of 17 ---PAGE BREAK--- FIVE YEAR CAPITAL IMPROVEMENT PLAN ENTITY: City of Fernley (Per NRS 354.5945) DATE: July 5, 2006 Minimum level of expenditure for items classified as capital projects 5,000 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Residential Construction Tax Dist #1 Capital Improvement: Park Improvement Projects/Community Center 200,000 200,000 20,000,000 Funding Source: RCT Tax on New Construction Bond Issue for Commity Center Development Completion Date: 6/30/XX (end of each fiscal year) Community Center completion after 2011 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Residential Construction Tax Dist #2 Capital Improvement: Park Projects 140,000 350,000 350,000 350,000 350,000 Funding Source: RCT Tax on New Construction Completion Date: 6/30/XX (end of each fiscal year) Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Streets and Storm Drains Fund Capital Improvement: Street Improvement Projects 1,496,500 1,605,000 1,435,000 1,032,529 1,513,788 Costs for projects possible funded through impact fees not included pending completion of impact fee process. Funding Source: Gas Tax, Shared Ad Valorem, RTC, RCT Potentially impact fees pending completion of impact fee process Completion Date: 6/30/XX (end of each fiscal year) Possible bond issue repaid from impact fees, when impact fee process is complete. Fund Total List of Funding Sources: Property Tax - Gen. Revenues Charges for Services Debt Grants Other ( Please Describe) CIP 1 Page 2 of 17 ---PAGE BREAK--- FIVE YEAR CAPITAL IMPROVEMENT PLAN ENTITY: City of Fernley (Per NRS 354.5945) DATE: July 5, 2006 Minimum level of expenditure for items classified as capital projects 5,000 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Streets and Storm Drains Fund Capital Improvement: Vehicles and Machinery 20,000 50,000 50,000 50,000 50,000 Funding Source: Gas Tax, Shared Ad Valorem, RTC, RCT Completion Date: 6/30/XX (end of each fiscal year) Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Capital Fund Capital Improvement: City Hall Expansion 6,500,000 Funding Source: $5M Loan + $2M cash Completion Date: June 30, 2007 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Capital Fund Capital Improvement: Technology Development (per plan) 300,000 150,000 150,000 150,000 150,000 Funding Source: Prior Transfers from General Fund Completion Date: 6/30/XX (end of each fiscal year) Fund Total List of Funding Sources: Property Tax - Gen. Revenues Charges for Services Debt Grants Other ( Please Describe) CIP 1 Page 3 of 17 ---PAGE BREAK--- FIVE YEAR CAPITAL IMPROVEMENT PLAN ENTITY: City of Fernley (Per NRS 354.5945) DATE: July 5, 2006 Minimum level of expenditure for items classified as capital projects 5,000 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: Ground/Surface Water Treatment Plnt 600,000 30,000,000 Funding Source: Bonds Repaid thru Developer/User Fees Completion Date: June 30, 2008 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: Highlands Water Improvements 800,000 Funding Source: Connection Fees/Existing Cash Completion Date: June 30, 2007 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: Wellhead Protection Program Update 150,000 Funding Source: Connection Fees/Existing Cash Completion Date: June 30, 2007 Fund Total List of Funding Sources: Property Tax - Gen. Revenues Charges for Services Debt Grants Other ( Please Describe) CIP 1 Page 4 of 17 ---PAGE BREAK--- FIVE YEAR CAPITAL IMPROVEMENT PLAN ENTITY: City of Fernley (Per NRS 354.5945) DATE: July 5, 2006 Minimum level of expenditure for items classified as capital projects 5,000 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: Well 9/9A Booster Station Bypass 313,000 Funding Source: Connection Fees/Existing Cash Completion Date: June 30, 2007 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: Well 14 Emerg. Supply/Pump Station 550,000 Funding Source: Connection Fees/Existing Cash Completion Date: June 30, 2007 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: Well #11 Tie-In Upgrades 35,000 Funding Source: Connection Fees/Existing Cash Completion Date: June 30, 2007 Fund Total List of Funding Sources: Property Tax - Gen. Revenues Charges for Services Debt Grants Other ( Please Describe) CIP 1 Page 5 of 17 ---PAGE BREAK--- FIVE YEAR CAPITAL IMPROVEMENT PLAN ENTITY: City of Fernley (Per NRS 354.5945) DATE: July 5, 2006 Minimum level of expenditure for items classified as capital projects 5,000 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: NE Tank Exterior Coating Repair 75,000 Funding Source: Connection Fees/Existing Cash Completion Date: June 30, 2007 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: Well 12 Pump Station & Transmission 1,420,000 Funding Source: Reimbursement Agreements Developers Completion Date: June 30, 2007 ***See footnote Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: Well 4 Pump Station Conversion 586,960 Funding Source: Reimbursement Agreements Developers Completion Date: June 30, 2007 ***See footnote Fund Total List of Funding Sources: Property Tax - Gen. Revenues Charges for Services Debt Grants Other ( Please Describe) CIP 1 Page 6 of 17 ---PAGE BREAK--- FIVE YEAR CAPITAL IMPROVEMENT PLAN ENTITY: City of Fernley (Per NRS 354.5945) DATE: July 5, 2006 Minimum level of expenditure for items classified as capital projects 5,000 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: Ricci Tank Exterior Coating Repair 75,000 Funding Source: Connection Fees/Existing Cash Completion Date: June 30, 2008 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: Well 10 Pump Station 1,420,667 Funding Source: Reimbursement Agreements Developers Completion Date: June 30, 2008 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: Gazzigilli Lane Transmission Main 450,000 Funding Source: Reimbursement Agreements Developers Completion Date: June 30, 2008 Fund Total List of Funding Sources: Property Tax - Gen. Revenues Charges for Services Debt Grants Other ( Please Describe) CIP 1 Page 7 of 17 ---PAGE BREAK--- FIVE YEAR CAPITAL IMPROVEMENT PLAN ENTITY: City of Fernley (Per NRS 354.5945) DATE: July 5, 2006 Minimum level of expenditure for items classified as capital projects 5,000 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: Well 15 Pump Station Transmission Main 1,425,000 Funding Source: Reimbursement Agreements Developers Completion Date: June 30, 2008 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: Ricci/Mull Transmission Main 610,000 Funding Source: Reimbursement Agreements Developers Completion Date: June 30, 2008 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: SCADA 265,000 Funding Source: Connection Fees/Existing Cash Completion Date: June 30, 2009 Fund Total List of Funding Sources: Property Tax - Gen. Revenues Charges for Services Debt Grants Other ( Please Describe) CIP 1 Page 8 of 17 ---PAGE BREAK--- FIVE YEAR CAPITAL IMPROVEMENT PLAN ENTITY: City of Fernley (Per NRS 354.5945) DATE: July 5, 2006 Minimum level of expenditure for items classified as capital projects 5,000 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: Well Electric Retrofits 50,000 Funding Source: Connection Fees/Existing Cash Completion Date: June 30, 2009 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: Transmission Main Rehab 200,000 200,000 200,000 Funding Source: Connection Fees/Existing Cash Completion Date: 6/30/20XX (by the end of each fiscal year) Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: Ricci Lane Transmission Main 350,000 Funding Source: Reimbursement Agreements Developers Completion Date: June 30, 2010 Fund Total List of Funding Sources: Property Tax - Gen. Revenues Charges for Services Debt Grants Other ( Please Describe) CIP 1 Page 9 of 17 ---PAGE BREAK--- FIVE YEAR CAPITAL IMPROVEMENT PLAN ENTITY: City of Fernley (Per NRS 354.5945) DATE: July 5, 2006 Minimum level of expenditure for items classified as capital projects 5,000 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: Surface Water Treatment Plnt Expansion 5,000,000 Funding Source: Reimbursement Agreements Developers Completion Date: June 30, 2010 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Sewer Enterprise Fund Capital Improvement: East Lift Station Headworks Realign. 400,000 Funding Source: Connection Fees/Existing Cash Completion Date: June 30, 2007 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Sewer Enterprise Fund Capital Improvement: Summer Street Rerouting 78,000 Funding Source: Connection Fees/Existing Cash Completion Date: June 30, 2007 Fund Total List of Funding Sources: Property Tax - Gen. Revenues Charges for Services Debt Grants Other ( Please Describe) CIP 1 Page 10 of 17 ---PAGE BREAK--- FIVE YEAR CAPITAL IMPROVEMENT PLAN ENTITY: City of Fernley (Per NRS 354.5945) DATE: July 5, 2006 Minimum level of expenditure for items classified as capital projects 5,000 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Sewer Enterprise Fund Capital Improvement: Correct Reverse Grade MH 290-292 & 29 330,000 Funding Source: Connection Fees/Existing Cash Completion Date: June 30, 2007 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Sewer Enterprise Fund Capital Improvement: West Lift Forcemain Investigation 20,000 Funding Source: Connection Fees/Existing Cash Completion Date: June 30, 2007 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Sewer Enterprise Fund Capital Improvement: Fernley Interceptor Upgrade 5,450,000 Funding Source: Bonds Repaid thru Developer/User Fees Completion Date: June 30, 2007 Fund Total List of Funding Sources: Property Tax - Gen. Revenues Charges for Services Debt Grants Other ( Please Describe) CIP 1 Page 11 of 17 ---PAGE BREAK--- FIVE YEAR CAPITAL IMPROVEMENT PLAN ENTITY: City of Fernley (Per NRS 354.5945) DATE: July 5, 2006 Minimum level of expenditure for items classified as capital projects 5,000 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Sewer Enterprise Fund Capital Improvement: Rolling Meadows Lift Station Gen-Set 75,000 Funding Source: Connection Fees/Existing Cash Completion Date: June 30, 2007 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Sewer Enterprise Fund Capital Improvement: SCADA 150,000 Funding Source: Connection Fees/Existing Cash Completion Date: June 30, 2008 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Sewer Enterprise Fund Capital Improvement: West Lift Upgrade 620,000 Funding Source: Developer Driven/Bonds Repaid through Reimbursement Agreements Completion Date: June 30, 2007 See footnote Fund Total List of Funding Sources: Property Tax - Gen. Revenues Charges for Services Debt Grants Other ( Please Describe) CIP 1 Page 12 of 17 ---PAGE BREAK--- FIVE YEAR CAPITAL IMPROVEMENT PLAN ENTITY: City of Fernley (Per NRS 354.5945) DATE: July 5, 2006 Minimum level of expenditure for items classified as capital projects 5,000 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Sewer Enterprise Fund Capital Improvement: 95A Interceptor 5,300,000 Funding Source: Developer Driven/Bonds Repaid through Reimbursement Agreements Completion Date: June 30, 2007 See footnote Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Sewer Enterprise Fund Capital Improvement: Hwy 50 Lift Station 2,500,000 Funding Source: Developer Driven/Bonds Repaid through Reimbursement Agreements Completion Date: June 30, 2007 See footnote Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Sewer Enterprise Fund Capital Improvement: Interceptor Construction (phased) 5,400,000 1,840,000 Funding Source: Developer Driven/Bonds Repaid through Reimbursement Agreements Completion Date: 6/30/2008 and June 30, 2009 Fund Total List of Funding Sources: Property Tax - Gen. Revenues Charges for Services Debt Grants Other ( Please Describe) CIP 1 Page 13 of 17 ---PAGE BREAK--- FIVE YEAR CAPITAL IMPROVEMENT PLAN ENTITY: City of Fernley (Per NRS 354.5945) DATE: July 5, 2006 Minimum level of expenditure for items classified as capital projects 5,000 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Sewer Enterprise Fund Capital Improvement: East Lift Station Upgrade Ph 2 & Ph 3 2,200,000 580,000 Funding Source: Developer Driven/Bonds Repaid through Reimbursement Agreements Completion Date: 6/30/20010 and June 30, 2011 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Sewer Enterprise Fund Capital Improvement: EWWTP Expansion Ph 1 and Ph 2 3,700,000 26,000,000 Funding Source: Developer Driven/Bonds Repaid through Reimbursement Agreements Completion Date: 6/30/2010 and june 30, 2011 Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Non-Potable Water Enterprise Fund Capital Improvement: Alternate Water Distribution Center 700,000 Funding Source: Connection Fees/Existing Cash Completion Date: June 30, 2007 Fund Total List of Funding Sources: Property Tax - Gen. Revenues Charges for Services Debt Grants Other ( Please Describe) CIP 1 Page 14 of 17 ---PAGE BREAK--- FIVE YEAR CAPITAL IMPROVEMENT PLAN ENTITY: City of Fernley (Per NRS 354.5945) DATE: July 5, 2006 Minimum level of expenditure for items classified as capital projects 5,000 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Non-Potable Water Enterprise Fund Capital Improvement: Purple Pipe Infrastructure 200,000 500,000 500,000 500,000 500,000 Funding Source: Developer Driven/Bonds Repaid through Reimbursement Agreements Completion Date: 6/30/20XX (phased end of each year) Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Capital Improvement: Funding Source: Completion Date: Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Water Enterprise Fund Capital Improvement: Vehicles and Machinery 236,750 450,000 450,000 450,000 450,000 Funding Source: Connection Fees/User Fees Completion Date: 6/30/20XX (yearly acquisitions) Fund Total List of Funding Sources: Property Tax - Gen. Revenues Charges for Services Debt Grants Other ( Please Describe) CIP 1 Page 15 of 17 ---PAGE BREAK--- FIVE YEAR CAPITAL IMPROVEMENT PLAN ENTITY: City of Fernley (Per NRS 354.5945) DATE: July 5, 2006 Minimum level of expenditure for items classified as capital projects 5,000 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Sewer Enterprise Fund Capital Improvement: Vehicles and Machinery 388,250 450,000 450,000 450,000 450,000 Funding Source: Connection Fees/User Fees Completion Date: 6/30/20XX (yearly acquisitions) Fund Total FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 Fund: Non-Potable Water Enterprise Fund Capital Improvement: Vehicles and Machinery 30,000 30,000 30,000 30,000 Funding Source: Connection Fees/User Fees Completion Date: 6/30/20XX (yearly acquisitions) Fund Total TOTALS 29,441,660 $ 43,285,667 $ 6,490,000 $ 14,482,529 $ 50,443,788 $ Total All Years 144,143,644 $ Difference between adopted budget FY07 and CIP is Developer Reimbursable Projects totalling $10,426,960*** List of Funding Sources: Property Tax - Gen. Revenues Charges for Services Debt Grants CIP 1 Page 16 of 17 ---PAGE BREAK--- FIVE YEAR CAPITAL IMPROVEMENT PLAN ENTITY: City of Fernley (Per NRS 354.5945) DATE: July 5, 2006 Minimum level of expenditure for items classified as capital projects 5,000 Other ( Please Describe) CIP 1 Page 17 of 17