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Capital Improvement Program Mayor's Message Goals of the Capital Improvement Program (CIP) The City of Salem relies on a capital improvement program and capital budget to ensure that capital needs are being addtessed in a responsible manrìer based on priority and thoughtfi.rl planning. A capital improvement program is a critical component of the capttal improvement budget and the overall budget straregy. By formalizrr:g ^ caprtøJ. plan and capitnJ budget, the City of Salem now has the abiJity and knowledge to address deferred maintenance issues that have been posçoned and þored in prior years, as well as plan for the future needs of the City. SØhen considering funding items in the Caprtal Improvement Program, the City strategcally pursues zvatfable options from grants at the state and federal levels, and also utilizes monies ava:diable from water and sewer retained earnings to avoid the issuance of long term debt for certe-rrn projects that czn be covered in firll by such retained earnings. From a financing perspective, priority is given to projects with graint revenues or other matching funds to offset the costs of borrowing. Addressing capital needs when appropriate will assist the City in reaching many of its longer-term goals such as reducing fuel consumption, decteasing deferred maintenance costs, reducing heating and electricity expenses, and creating efficiencies by means of technological advances and automation. As importùnt, ^ sound improvement program will continue to ensure that our facilities, equipment and vehicles are safe, energy efficient and operable at all times to deliver top-notch services to the City's residents. Goals of the Ma]'ot - FY2014 Capital Improvement Program (CIP) The Mayor's main goals are to improve the overall planning and budget process for addressing capital needs and to ensure accountability as it relates to implementâtion of r proJecti. Our eady efforts fãcused on overhauling and renovating neglected parks, playgrounds and recreational spaces, as well as a full assessmeflt of roadway, sidewalk and utìJity infrastructure conditions which enabled us to begrn implementation of a comprehensive strategy to address Sec 7 - 1 ---PAGE BREAK--- long overdue maintenance needs in these ^re s. Priority is given to projects that carì use gr^nt funds to help offset overaìì costs of ptojects, ot in some cases, fund an entire project. Otherwise, projects are ranked based upon priority as well as the ability to reduce long term operational costs. For FY2014,the Mayor and Finance Director have created ^ capttal plan that is fiscally responsible and transparenr. The plan includes a particular focus on asset preservation, teplacemerìt of appanrus and eqt,ipment, and continued improvemerìts to the City's infrastructure. -dlso, with regards to the City's infrastructure, the City is scheduled to receive an esrimated $1,000,000 from the State for road repairs. Othet infrastructure related improvements include the City's committed ßnancial portion to the construction of the new MBTA g r^ge, upgrades to the security systems at Salem Public Schools, continuation of the development of the Salem V4rarf project at Blaney Street pier, upkeep and maintenance of the Museum Place Garage, and the continued replacement of sections of the historic wrought iron fence at Salem Common. The City proposes to use $303,000 of one time funds for the replacement of caprtal equipment, including compurer hardware, various public service and parks departrnent equipment, as well as building repairs and mainteflance. The City also proposes to erìter into a c pLte^I lease of $279,000 the purchase of city vehicles and equipment, including one marked and one un-marked police cruiser, one school bus, one backhoe and one heavy duty pick-up truck. As a new addition to the c prtal budget this year, the City proposes $397,000 in Community Preservation Act projects. Projects for approval include the cleaning of Conant and Choate statues, open space beautifìcation, upgrades to the historic wrought iron fences at the Salem Common, and a new splash pad for the recreation departrnent at Forest Hills. t Sec 7 - 2 ---PAGE BREAK--- Capital Improvement Program Overview A capital improvement program (CIP) is a blueprint for planning a corûnunity" capital expenditures. A CIP is typically a multi-year plan identifutrg capttal projects and equipment to be funded during the planning period. A CIP is composed of nvo parts, a capital program arrd a capital budget. The capital program is a plan for capitzl expenditures that extends out past the capital budget. The capital budget is the upcoming year's spending plan for capitalitems. Developing a CIP that will ensure sound ftnancral and caprtal planning requires effective leadership and the involvement and cooperation of all municipal departrnents. A propedy developed CIP will help the City in many ways such as enhancing a community's credit rating, stabilzing debt service payments, and identi$ring the most economical means of financing caprtn) projects. It will also help increase opportunities to obtain federal and state atd and help avoid duplication by ovedapping goverrìmental units. The City has several ways to finance its CIP, including state and federal grants, ^ppr.oprL^tions from the City's Capital Outlay âccount, ca;pttal leases, and long-term borrowing. Depending on the cost and the usefrrl life, the Finance Director will make recofirnendations to the Mayor for funding the City's c pttal, needs. Capital leases are often three years or less and are built into the operating budget. Caprtal leases are often used for items such as school buses, office equipment, and other items that mlay not last five years in useful life. The City's Capital Ouday account typically funds items under $25,000, but can be used to fund items over $25,000 if it is deemed prudent. Funding imptovements through the Capital Outlay account is beneficial because there is no borrowing or interest costs; you simply pay for the item in the year that it is purchased. Many of the City's c^ptte-I items over $25,000 require long-term borrowing as authorized by a2/3'd vote of the City Council upon recoÍìlnendation of the Mayor. Long term bonding helps spread the cósts of expensive capital improvemerìts over their full usefi-rl life þer MGL Chapter 44/7 and Chapter 44/8). The CIP dovetails into the City's five-year financial forecast for planning pulposes. The CIP has to be worked into the operational part of the budget so that both the operational and capital needs of the municipal departments are met on ^ year- to-ye^r basis. Oftentimes the CIP suffets as fixed costs such as health insurance and retirement âssessments continue to rise which places pressure on the operational budget. Flowever, it is incumbent upon the Mayor and Finance Director to ensure that both the operating budget and CIP are reasonable and attatnable to ensure fiscal stability within the limitations of Proposition 2 Vz. Sec 7 - 3 ---PAGE BREAK--- What is a Caoital Asset? o Capital items are tang1ble assets or projects with avalue of $25,000 or more. ¡ Must have a depreciable life of five or more ye rs. Examples of Capital Assets are Fire Truck, DPì7 equipment, Buildings þurchase or major renovations), water and sewer infrastructure. Items that arc NOT caprtal assets include services, painting rooms or buildings, books, fi.eld maintenance, routine building maintenance. FY 2014 CIP Overview During the FY2014 budget process, the City's Finance Director met with department heads to review the requests for FY2014. The Finance Director subsequently met with the Mayor to discuss funding options and priority levels for the requested items. This resulted in the FY2014 Capttal Plan for the General Fund included in this section of the budget. This year's Capital Plan relies on a mix of one-time appropriations from the City's Capital Outlay account, grantdollars, and long term debt financing. The CIP for the general fund budget totals $5,880,700 of which $2,255,800 will come from State and Federal Grants, g90,000 fiom R/Reserved, $26,000 from Revolving Funds, $396,700 from estimated Community Preservation,\ct Funds, $353,000 will come from the Capital Outlay account, $279,000 will come from capital leases and$2,480,000 will come from aloan order. FY 2014 Routine Debt Routine debt is issued for items used during normal operations by City departments. Vehicle replacement, departmental equipment, genetal repairs, and maintenârìce are all, considered routine. The debt service proposed for FY2014 thatis routine in nature would be as follows: Vehicles lPolice Deoartment) ¡ One Marked Police Cruiser o One Unmarked Police Cruiser $ $ 38,000 34,000 Sec 7 - 4 ---PAGE BREAK--- Buses lSchool Deoartment) o One 77 Passenger School Bus $ 100,000 TOTAL:Vehicle $17 Heavy Equipment Gublic Services Department) o Replace 1999 Ford F550 Dump Truck (tJrut #36) ¡ Replace 1,987 John Deere Backhoe (unit # 37) 12 yearhfe ¡ Replace L999 Ford F350 pickup (uttit # 1,21) $ $ $ 69,000 128,000 38,000 TOTAL: He rr1 t Replacement $ 235,ooo Public Safew Eouioment Fire Dçartment o self-contained Breathing Apparatus - cyJinders (10 year life) o Jaws of Life for New Ladder Truck o Alter Door Height to accolnmodate Ladder 1 at Station 4 Police Department o Bullet Proof Vest Replacement 55,000 42,000 60,000 $ 38,000 (Partidly funded) $ $ $ TOTAL: Public $ 195,ooo Sec 7 - 5 ---PAGE BREAK--- Deoartmental Eouioment ¡ I.T. (Hardware/ Software/ Consultìng Services o Electrical (Generator fFreAlarm Terminal Boxes/Painting) o Recreation (Security Access Controls-\X/inter Island) $ $ $ 140,000 65,000 25,000 TOTAL: Departmental t $ 23o,ooo General Renairs / Infrastructure - o Roads, Sidewalks & Crosswalks (non-Chapter 90 eligible) o Engrneering - Canù Street (interim improvements) o Engineering- Bike Path - Desþ/Construction o Parks and Recreation (Salem Common Fence) o Parking- Museum Place Garage \X/atetproofing $ 150,000 $ 210,000 $ 25,000 $ 5o,ooo $ 1,120,000 TOTAL: General /Infrastructure $ L,555,000 School Deoartment o District \7ide Security lJpdates $ 125,000 TOTAL: School Department $ 125,000 R/Reserve/Revolving Fund Proiects (No impact on General Fund) Harbotmaster - Repowers Pacific Patrol Boat Parks and Recreation - Golf Course Equipment Parks and Recreation - Olde Salem Green Cart Paths Parks and Recreation- Repairs to the NØitch House a o a o $ $ $ $ 26,200 40,000 25,000 25,000 TOTAL: R/Reserve and Fund ects $ 116,200 Sec 7 - 6 ---PAGE BREAK--- f . Lilbr¿ry - Replacement of window frames and sills $ o Parks and Recreation-IJpgrades to historic wrought iron fence $ ¡ Parks and Recreation- Splash Pad at Forest River Park $ o Planning - Cleaning of Conant and Choate Statues $ o Planning - Open Space Beautification (Space Building) $ 75,000 50,000 180,000 41.,700 50,000 TOTAL: Community Preservation Act Projects $ 396,700 Grant Fundins and Other Financial sources t Llbrary- Replacement of window frames and sills o Planning - Blaney Street Pier and Terminal o Planning - Winter Island Scenic Pathway /Historic Fort ¡ Police- Bullet Proof Vest Replacement o Public Services - Ch. 90 Roadway Improvements $ 50,000 $ 700,ooo $ 500,000 $ 30,800 $ 1,000,000 TOTAL: Proiects on Grant Funding $ 2,255,800 GRAND TOTAL: $ 5,880,700 FY 2014 Non-Routine Debt Non-routine debt is debt that is issued for purchasing items for new initiatives and projects of the City. New buildings, additions, and capital projects arc all. considered non-routine. The City does not have any debt service proposed for FY2014 that is non-routine in nature. Sec 7 - 7 ---PAGE BREAK--- FY 2014 CIP GENERAL FUND EXECUTIVE SUMMARY The total proposed Capital Plan fot the City of Salem for is $5,880,700. However, the total amount proposed for borowing is $2,480,000. This Capttal Plan has multiple ñ-ditg sources, including grant funds, capttal lease, one-time appropriations, Community Preservation ,tct funds, and bonding. The list proPosed is a scaled down list ftom depattrnental requests, with priority given to those projects that are supplemented by grant dollars or âny other revenue sources that will keep net general fund expenditues to a minimum. FY14 CIP - funded from one time revenue sources - Capital Outlay Fund ¡ Information Technology - Redundant Servers/Windows Upgrades o Information Technology - Consulting for Consolidation School/City IT Services o Electdcal - North and Summer Streets Loop Detector System o Police Departrnent - Bullet Proof Vest Replacement o Parks and Rec.-Upgrades to Flistoric \Ørought Iron Fence o Parks and Rec. - Security Access Conüols at ìTinter Island o Electdc Department - Maintenance/Repaits - Streetlights o Electdc Departrnent - Painting Pedestrian/Historical Streetlights o Schools - Ertly Childhood Center Building Transition TOTAL - CAPITAL OUTI.AY FUND: FY14 CIP - funded from Grants and other financial sources . Llbra¡ry - Replacement of Window Sills o Planning - Blaney Stteet Pier and Terminal o Planning - nØinter Island Scenic Pathway and Flistoric Fort Renovation o Police Departrnent - equipment (surveillance cameras) o Engineering - Infrastructure-Ch. 90 Roadway Improvement $ 140,000 $ 30,000 $ 25,000 $ 38,800 (Paftialþ Granr Fundnd) $ 50,000 (Fund 2001-CPA Projects) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 353,000 $ 100,000 $ 700,000 $ 500,000 $ 30,800(PartiaÌþOperaringBudgøFundcd) $ 1,000,000 TOTAL - GRANTS AITID OFS: $ 2p55,800 Sec 7 - 8 ---PAGE BREAK--- FY14 CIP - funded from capitallease (built inro operaring budgets) o Police Departrnent - One Marked/One Un-Marked Cruiser o Public Sen ices - One Dump Truck o Public Sen¡ices- One Ford F350 o School Department -One 77 Passenger School Bus TOTAL - CAPITAL LEASES FY14 CIP - funded from anticipated Bond Authorizarion o Electric -Generator for the DPìø o Ffue- Self Contained Breathing Apparatus o Fire -Jaws of Life for New Ladder Truck o Fire- -,\lter Door Herght to ¿\ccommodate L¿dder 1 (Station Four) o Parking \X/ateqproofing Museum Place Gange o Planning- MBTA GarageConstruction o Public Seryices - One Backhoe o Engineering - Non Ch. 90 Eligrbte Roadway Improvements o Engineering - Canal Street Intedm Improvements o Engineering - Bike paths o Schools- District \Wide Secudty Updates TOTAL - BOND AUTHORIZATION 72,000 69,000 38,000 100,000 $ 279,000 $ 2,480,000 $ 65,000 $ 55,000 $ 42,000 $ 60,000 $ 1,120,000 $ 500,000 $ 128,000 $ 150,000 $ 210,000 $ 25,000 $ 125,000 Sec 7 - 9 ---PAGE BREAK--- FY14 CIP - funded from Community Preservation Act Funds o Libnry - Replacement of window ftames and sills þartiatly grant funded) o Parks and Recreation-Upgades to historic wrought iron fence o Patks and Recteation- Splash pad/restroom paviJion-Forest River Park o Planning - Cleaning of Conant and Choate Statues o Planning - Open Space Beautification (Space BuildinÐ TOTAL - COMMT]NITY PRESERVATION ACT FT]NDS FY14 CIP Funded from R/Reserve and Revolving Funds Please note, these proiects have no impact on the General Fund o Harbormaster - Repowers Patrol Boat o Parks and Recreation - Golf Course Equipment o Patks and Recreation - Olde Salem Green Cat Paths o Parks and Recreation- Maintenance and Repairs to the ìØitch House TOTAL - R/RESERVE A\rD FLINDS 75,000 50,000 180,000 47,700 50,000 $ 396,700 26,200 40,000 25,000 25,000 $ tt62oo Sec 7 - 10 ---PAGE BREAK--- Gity of Salem Capital Plan - General Fund Fiscal Year2013 -2017 FY 2017 $ $ s $ FY 2016 I 75,000.00 5 75.000.00 s 60.000.00 $ 60,000.00 s 25.000.00 $ 25.000.00 $ 50.000.00 $ 25,000.00 s 475.000.00 $ 500.000.00 FY 2015 $ 4.994.136.00 $ 400.000.00 75.000-00 $ 5.469.136.00 s 60.000.00 $ 50,000.00 50_000.00 160,000.00 s 25.000.00 $ 2s.000.00 25.000.00 $ 35.000.00 s 110.o00.o0 $ 38,000.00 s 25.000.00 s 170,000.00 s 233.000.00 Dept. Request FY 2014 $ $ s 60.000.00 $ $ 5 5O,OOO.OO $ 30.000.00 $ 1¿to.ooo.oo I 2s.000.00 $ 5 65.000.00 $ 25.000.00 $ 25.OOO.O0 5 140.O00.OO $ s 5 55.000.00 s 42.000.00 $ 60.000.00 s 157.000.00 FY14 Funding Source Fund 2000 Fund 2000 Fund zooo Fund 2000 Fund 2000 Fund 2OOO Eond¡nq Fund 2000 Fund 2O0O Fund 20OO Fund 2000 Eond¡nq Bondinq Bond¡nq FY14 Prioritv 1 3 1 4 2 1 ACTUAL FY 2013 s $ 150.000.00 $ 30,000.00 $ 180.000.00 $ r00,000.00 $ 100,000.00 s 1.100.000.00 s 1.100.000.00 FY13 Fund¡ne Source Cap¡tal Lease Fund 2000 Bond¡no Bondino CAPITAL REQUEST on on n ram nes nes on nes on Subtotal: Data Process¡no tstectncat F-'t5Ul ano racK Dody Frre Ararm I ermrnat Ëoxes Generator for DPW a North & Summer Streets Loo Ftre General Eu¡ld¡ng Maantenance ,aÍalus - cvilnoers t1u vear illet Personal Protect¡on Gear New Pumper Truck #5 subtotal: Fire rnsDecuonat Servrces IrucK I vo¡ce F(ecorder (for d¡sDatch sell-contatned Efeath¡nq Apt Sec 7 - 11 ---PAGE BREAK--- Gity of Salem Gapital Plan - General Fund FiscalYear2013 -2017 FY 2017 s s s 50.000.00 s 40.000-00 s 46.000.00 $ 136,000.00 FY 2016 $ 25.999.00 s 25.999.00 $ s 50.000.00 s s0.000.00 S ¡t0.000.00 $ 2s.000.00 s 25.350.00 $ 200,000.00 $ 390,350.00 FY 2015 s 28.870.00 $ 28.870.00 s 150.000-00 I I 50.000.00 $ s0,000.00 $ ¡10.000.00 $ 25,000.00 $ 26.271.00 $ 27,E00.00 5 25.000.00 s 214.071.OO Dept. Request FY 2014 s 26.200.00 $ 5 $ 26.200.00 $ 25.000.00 s 75.OO0.00 5 100.000.00 $ s0,000.00 s 50.ooo.oo S ¡10.000.00 s 25.OOO.OO s 25.000.00 s 25.OO0.OO 5 160.000.00 s 395.OO0.OO FY14 Funding Source Flevolv¡no Fund Faevolv¡no Fund Revolvinq Fund MHC Grent CPA Fund 2001-CPA CPA R/RES R/RES R/RES Fund 2000 CPA FY14 Prioritv 1 I 5 6 1 2 3 4 ACTUAL FY 2013 s 270.000.00 $ 270.000.00 $ $ 30.000.00 5 ¿t0.000.00 $ 1¡t0.000.00 $ 100,000.00 5 30.000.00 $ 340,000.00 FY13 Funding Source Grant Funds Fund 2000 Fund 2000 Bond¡nq Grant Funds Fund 2000 CAPITAL REQUEST E,recrronrc Keptacement wnater Mult¡ Vessel Tra¡ler Subtotal: Harbormastel (irant Ponron on Subtotal: Librarv Playground update - splaine Park upgraoes to Htstoflc wrouqnt Secunty ó Acess uontrot - wtnter tsland sprasn PadrRestroom/Pav¡t¡t¡on - Forest R¡ver Park SubtoEÌl Recreatioñ Sec 7 - 12 ---PAGE BREAK--- City of Salem Capital Plan - General Fund Fiscal Year 2013 -2017 FY 2017 s s s E0.000.00 s 80.000.00 $ FY 2016 I 75.000.00 $ 25,000.00 s 100.000.00 $ $ 76.000.00 $ 74,000.00 I 200.000.00 s 352.000.00 $ FY 2015 $ 330.000.00 $ 170,000.00 s 75.000.00 $ 60.000.00 $ 75.000.00 s 710.000.00 s 3.000.000.00 s 3.000.000.00 s 78.000.00 $ 72.000.00 s 30.000.00 s 180.000.00 s 68.000.00 $ 35,000.00 $ 103.000.00 Dept. Request FY 2014 s 1.120.000.oo 5 1.120.000.oo 5 700.ooo.oo 5 500.000.00 $ 41.700.00 s 50.ooo.oo s 500.ooo.oo $ 1.79'1.700.00 $ 38.000.00 $ 34,000.00 5 $ 30,800.00 s 36.000.00 5 1¿t{¡.EO0.00 $ $ 5 FY14 Fund¡ng Source Bondinq Grant Funds Bondinq CPA CPA Grant Funds capital Lease CeD¡tâl Lêâse Fund 2O0O Federal Grant Fund 2000 FY14 Prioritv 1 1 2 4 3 1 ACTUAL FY 201 3 s 53.625.00 s 17.470.OO $200.000 $ 50.000.00 $ 321,095.00 s 4.000.000.00 s 4,000,000.00 $ 200.000.00 s 74.000.00 $ 55.000.00 $ 46,000.00 $ s4,000.00 I 429,000.00 s 2.000.000.00 $ 30.000.00 s 1.850.000.00 $ 3.880.000.00 FY13 Fundinç Source Fund 2000 Grant Funds Bondino CaD¡tal Lease Fund 2000 Grant Funds Grant Funds Cap¡tal Lease irants/Other Fund CAPITAL REQUEST new Park¡ng Study Recommendat¡ons (development of des¡gn plans: Riley Plaza) new )arrrreDrace totnts no or Subtotal: Plann¡no Pol¡ce car car rrds Retentron New Roof - Pol¡ce Stat¡on rs Remed¡ation o1 Tax T¡üe Land - Un¡versal Steel Studv Recommendat¡ons Studv Recommendat¡ons wtnter tstano ¡'cenrc Patnwav an( Wa¡t to see ¡f State Covers if not from Fund 2000 Sec 7 - 13 ---PAGE BREAK--- Gity of Salem Gapital Plan - General Fund Fiscal Year2013 -2017 FY 2017 $ 85.000.00 $ ô8.735.00 s 153.735-00 $ 500.000.00 I 150,000.00 s 25.000.00 $ 675.000.00 $ $ FY 2016 $ 150.000.00 $ /15.000.00 s 150.000.00 $ 85.000.00 $ 6E.735.00 s 498.735.00 s 500.000.00 $ r50,000.00 s 25.000.00 $ 675,000.00 $ $ FY 2015 s 150.000.00 $ 150,000.00 $ 200.000.00 I 12s,000.00 s 75.000.00 s 35.000.00 5 75.000.00 s 35.000.00 s 80.000.00 $ 6E.735.00 s 993.735.00 I 500.000.00 I 150,000.00 s 25.000.00 $ 675.000.00 $ 100,000.00 $ 100,000.00 $ 200.000.00 s 21.395.00 $ 100.000.00 s 121,395.00 Dept. Request FY 2014 s 69.000.00 5 12E.OOO.OO 5 3E.OOO.Oo $ s 235.000.00 $ r.0(X).000.00 $ 150.000.00 s 210.000.00 $ 25.OOO.OO s 1.385.000.00 s s $ $ FY'I4 Funding Source Lêase Bond Lease Chapter 90 Bond¡nq Bond¡no Bondino FYI4 Prioritv 1 3 1 4 ACTUAL FY 201 3 $ 40.000.00 $ 40.000.00 s 80.000.00 $ 30.000.00 $ 674,160.00 I 904.t60.00 s $ FY13 Funding Source Fund 2000 Fund 2000 CaDital Lease CH 90 GRANT CAPITAL REQUEST one - 1Z vear ltle - 1Z vear lrle - 1Z Veer ille ('ratltu Kemovat Macnlne rdewalKs, crosswalKs as seawell - Foresl l{tver Ðeawail - uotumDus Ave. otal: veteran sêrvrces un¡t # 121 çnaDter non çneo ooet I Eandrt wood chr General Eu¡ld¡n Aenel Lrn lrucK ventcle - Sec 7 - 14 ---PAGE BREAK--- Gity of Salem Capital Plan - General Fund Fiscal Year2013 -2017 FY 2017 s 120.000.00 1 $ 1.164.735.00 FY 2016 I 1r2.500.00 $ 210,000.00 S 2/Í0.000.00 $ 60.000.00 FY 201s $ 112,500.00 s 210_000.00 $ 240.000.00 $ 60,000.00 $ r20,000.00 $ 35.000.00 $ 85.000.00 $ 65,000.00 s 25.000.00 $ r10.500.00 s 13.201.207.00 Dept. Request FY 20',14 s 5 125.000.00 $ 5 25.000.00 s5 100.000.00 $ $ 5.880.700.00 FY14 Funding Source Bond¡nq Fund 2000 Fund 2000 Cap¡tal Lease Caoital Lèese FY14 Prioritv 1 3 2 ACTUAL FY 201 3 s 100.000.00 $ 150.000.00 $ 52.000.00 $ 31,500.00 s 50.000.00 $ 50.000.00 s 1 t.937.755.00 FY13 Funding Source Cap¡tal Lease Bondinq Cap¡tal Lease CeD¡tal Leese Bond¡nq Bondinq CAPITAL EST ;nools Protect (waterDroot¡ nq/masonry. on/bu¡ldl z9 Passenqer lype A school bus - Elevator reparr 42 Passenqer Scnool Eus Total - General Fund Grant Total Fund CIP 2014 Note - CPA est¡mated to bring in 460K City 119,600 Sfate = 579,600 Bond¡ng Fund 2000 Fund 200'l-GPA Grants cH90 Capital Leases R/Reserve Revolv¡ng Funds CPA $ 2,480,000.00 $ 303,000.00 $ 50,000.00 $ 1,255,800.00 $ 1,000,000.00 $ 279,000.00 $ 90,000.00 $ 26,200.00 $ 396,700.00 TOTAL $ 5.880.700.00 Sec 7 - 15 ---PAGE BREAK--- IMPACT OF CAPITAL IMPROYEMENT PROJECTS ON OPERATING BUDGET Imoact on Ooeratin-s Budget More efficient communication between departrnents. Dectease in maintenance and more efhcient communication betv¡een departments. Potential s treamlining o f IT sewices /increas ed communication for the City and School District. Asset presewation, decrease in long term capital outlay for new poles. No impact. rtsset preservation and decrease in long term capital outlay for new poles. No impact. No impact. No impact. No impact. Improves energy efhciency, and reduces heat costs Extends life of the fence and teduces annual mamtenafice costs. No impact. Fundins - Capital Outlay Fund Capital Outlay Fund Capital Outlay Fund Capital Outlay Fund Bonding Capital Outlay Fund Capital Outlay Fund Bonding Bonding Bonding Community Preservation Act and NÍHC Grant Community Preservation Act Community Pres ervation rtct Cost 60,000 50,000 30,000 25,000 65,000 25,000 25,000 55,000 42,000 60,000 100,000 50,000 180,000 I.T. - Phase 1 of Windows XP lJpgade I.T. - Emergency Preparedness UPS LT.-Consulting Sewices to study the Consolidation of School/City IT Services Electrical - Streetlight Pole and Luminaire Replacement Electrical -Generator for the DPW Electdcal Painting Pedestrian and Histodcal Lights Electrical - North and Summer Streets Loop Detector System Fire - Self Contained Breathing Apparatus Fire -Jaws of Life for New Ladder Truck Fire - Alter Door Heþht at Station Four Iitbrary -Replacement of Window Sills and Frames Parks and Recreation-Upgrades to historic vzrought iron fence Patks and Recreation- Splash pad/restroom pavilion-Forest River Park Sec 7 - 16 ---PAGE BREAK--- Imoact on ODera :no Budget Extends life of the fence and reduces annual malntenance costs. Ptovides proper security measures for the Winter Island area, and reduces vandalism. Extends hfe of gange and reduces annual maintenance and electricity costs. Extends life of the statue and reduces annual malntenânce costs. No impact. No impact. Annual payments for each vehicle through the capital leasing program. Patttally gtant funded necessary increase in public safety equipment. Annual payment for the truck through the capital leasing program. No impact. Annual payment for tlre truck, through the capital leasing program. No impact. No impact. No impact. No impact. Evaluates transitional options for the Earþ Childhood Center for FY15. Annual payments for the bus through the capital leasing program. Funding Capital OutJay Fund and Community Preservation Act Capital Outlay Fund Bonding Community Preservation Act Community Pres ervation Act Bonding Capital Lease Capital Outlay Fund and Pattial Grant Funding Capital Lease Bonding Capital Lease Bonding Bonding Bonding Bonding Capital Outlay Fund Capital Lease Cost 100,000 25,000 1,120,000 41,,700 25,000 500,000 72,000 38,000 69,000 128,000 38,000 150,000 21.0,00 25,000 1.25,000 25,000 100,000 Engineering - Non-Ch. 90 Eþbte Roadway Improvement Engineering- Canal Street Interim Improvements ß.oadway) EnEúneering- Bike Paths Schools-District ì7ide Security Updates Schools- Earþ Childhood Center and Elementary Building Transition Schools - One 77 Passenger Descriotion Parks and Recreation - to NTrought Iron Fence Parks and Recreation-Security Access Control at $Øinter Island Parking - Wate¡proohng at Museum Place Garage Planning - Cleaning of Conant and Choate Statues Planning - Open Space Beautification (Space Building) Planning - MBTA Gange Construction Police - One Marked/One Un- Marked Cruiser Police - Bullet Proof Vest Replacement Public Services - Dump Truck Public Services Backhoe Public Sewices Pick Up Truck Sec 7 - 17 ---PAGE BREAK--- FY14 CIP Enterprise Funds Executive Sumtrrary . The total proposed Caprtal Plan for the City of Salem's Entelprise Funds for FY14 is $1,275,000. o The Entelprise Fund's Capital Plan has multiple funding sources, including retained earnings, SESD funds, and bonding. o The list proposed has been reviewed and approved by the City's Engineer. FYL4 Enterprise Fund CIP - Funding Sources FY14 Enteqprise Fund CIP - funded from one time revenue sources - Retained Earnings . Water: Main System Upgrades - Valve/Pipe Replacement ¡ Sewer: Illicit Connection Removal . Sewer: Sewer Line Extension/Rehabilitation/Upgrades $ 100,000 $ 100,000 $ 5o,ooo TOTAL WATER/SEWER RETAINED EARNINGS: $ 760,000 FY14 Enteqprise Fund CIP - funded from other financial sources (SESD) Sewet: I/I Removal Program $ 25,000 o TOTAL GRANTS and OTHER FINANCIAL SOURCES: $ 25,000 o 'W'ater: Rehabilitation-Folly Hills StorageTank $1,000,000 TOTAL - BONDING: $1,000,000 Sec 7 - 18 ---PAGE BREAK--- City of Salem Capital Plan - Water and Sewer Enterprise Fund Fiscal Year 2013 - 2017 CAPITAL REQUEST $ 't00.000.00 $ 7,800.000.00 $ r00,000.00 $ 50.000.00 $ 8,050,000.00 $ r00.000.00 s 850.000.00 $ 6,000.000.00 $ ,160,000.00 s 100.000.00 s s0.000.00 $ 7.560.000.00 s 1.500.000.00 $ r,700,000.00 $ 100,000.00 $ r50.000.00 $ 1,903,000.00 $ 180.000.00 $ 1.400.000.00 $ 5.433.000.00 $ 1.000.000.00 $ 100.000.00 s $ $ 1.100.000.00 bondino R/E 5 6 $ $ 3s.000.00 $ r00.000.00 $ 17s.000.00 $ 310,000.00 bond¡nq bondinq ¡le rle rle bond¡nq Water Enterorise-Enqineerino lnternal/External Rehabilitation - Gallows Hills Storaqe Tanks (201 'l ) lnternal/External Rehabilitation - Folly H¡lls Storaqe Energy eff¡c¡ency evaluat¡on - pump stat¡on Main System Upgrades Vales/Pipe replacement Water Easements - Research, Taking, Clearinq Transm¡ss¡on System Salem PS and Booster Station Sohier Road Transmission Main Rehab and easements (10 Year Proqram) Distribution System D¡striburtion Main Rehab Valve Hydrant Service Replacement-known replacements Valve Hvdrant Service Replacement-Annual Proqram Water Meter Replacement Water Meter Replacement - Annual Proqram Subtotal: Water Enterprise Sec 7 - 19 ---PAGE BREAK--- City of Salem Capital Plan - Water and Sewer Enterprise Fund Fiscal Year 2013 - 2017 CAPITAL REQUEST $ s $ $ 7.s00.000.00 $ 662,s00.00 $ 625,000.00 $ 1.600.000.00 s 10.387.500.00 $ 18,437,500.00 5 r00,000.00 $ 50.000.00 $ 2s,000.00 $ 6.000.000.00 $ 530.000.00 $ s00.000.00 $ 1.280.000.00 $ 8.485.000.00 $ 16,045,000.00 $ 100,000.00 $ s0,000.00 s 25.000.00 $ 175,000.00 $ 5.608.000.00 $ l UU,UUU.UU $ 50.000.00 s 25.000.00 $ r75,000.00 $ 1.275.000.00 K/ts R/E SESD Bondino Bondinq Bondino Bondinq ¿ e 4 'I 1 1 1 $ 4.200.000.00 $ 400,000.00 $ 400.000.00 s 900.000.00 s 5.900.000.00 $ 5.900.000.00 $ 400,000.00 $ 50.000.00 $ 25,000.00 $ 475,000.00 $ 785,000.00 R/E R/E SESD Bondinq Bondino Bond¡nq Bond¡nq Sewer Enterprise-Enqineerinq ililcrr conneclron removat (stuoy, qestgn, construcÜonf Sewer L¡ne Extension/Upgrade/Rehabilitation l/l Removal Proqram Canal Street Utility Proqram (ln advance of roadwav) Drainage Sewer Water So River Gonduit Bids are opening in March 2013 Need Bond Authorization to award contracts Subtotal: Sewer Enterprise Total: Enterprise Fund Bonding: R/E SESD BAN Total $ 1,000,000.00 $ 250,000.00 $ 2s,000.00 $ 1.275,000.00 Sec 7 - 20 ---PAGE BREAK--- IMPACT OF CAPITAL IMPROVEMENT PROJECTS ON OPERATING BUDGET Impact on Ooeratins Budset Reduction in repairs to water systems Reductions in penalties/fines from DEP and EPA on mandates for correction illicit connections. Reductions in emergency repairs No impact. Repairing structural defects, as well as sealing the roof to prevent future water leaks. Fundins - Retained Earnings - Enterprise Fund Retained Earnings - Enterprise Fund Retained Earnings - Entelprise Fund South Essex Sewerage District - Retained Earnings Bonding Cost 100,000 100,000 50,000 25,000 1,000,000 Descriotion - 'Water - Main System upgrades Sewer - Illicit Connection removal Sewer - Sewer Line Extension / IJp grades /Rehabilitation Sewer - Inflow/Infiltration Removal Program \X/ater- I nte rnal f External Rehabilitation for Folly Hills Storage Tank. Sec 7 - 21 ---PAGE BREAK--- \üater and Sewer Enterprise Fund Capital Projects Update - Approved Projects May 16,2013 Water Enterprise Fund Highland Avenue Water Tank & Main System Upgrades (2003) o Authorized: $ 12,000,000 o Issued: S 7,67I,792 (bonded) o Unissued: $ 4,328,208 o As of May 16, 20l3,we have $1.4 million encumbered, S2.9 million available, and $8.7 million expended The 2003 812 million loan authorization included the completed Lafayette and Loring Ave. water main improvement project, the Highland Ave water tank design and construction, and various system-wide upgrades to ensure proper long term operation of the city's water distribution system. The Highland Ave water tank project is on hold pending the advancement of potential commercial development at the site which may impact the location of the tank. AII other aspects of this loan authorization are complete. The existing 82 million BAN has been converted to bonds in FY20I1. The balance of the authorization ($4,328,208) will continue to remain unauthorized and unissued until the Highland Avenue Water Tankwork begins. Transmission Main - Rantoul St. (2009) o Authorized: $ 2,500,000 o Issued: $ 2,500,000 (bonded) . Unissued: $ 0 As of May 16, 20l3,we have $144,000 encumbered, $1.0 million available, and $1.36 million expended The 2009 $2.5 million loqn authorizqtion was for the upgrade of the City's 2}-inch transmission main in Rantoul Street, from Beverly Hospital to the Salem Beverly Bridge. The cleaning and lining of that segment of water main was completed in 2010 and a portion of the remaining funds were used to prepare construction documents for the remaining segment of transmission main, from the Beverly Hospital to the Water Treatment Plant on Arlington Avenue in Beverly. Sec 7 - 22 ---PAGE BREAK--- The remainingfunds wlil be used to continue the water meter replacement project. The existing 82,500,000 BAN has been converted to bonds in FY20l I Upgrade of Water Meters (2009) o Authorized: $ 3,000,000 o Issued: $ 3,000,000 (bonded) . Unissued: $ 0 As of May l6,20l3rwe have $1.0 million encumbered, $253,000 available, and 51.72 million expended The 2007 83.0 million loan authorization is for the replacement of aging and inaccurate water meters and replacement of the meter reading capability in the city. A 100% replacement program is expected. The installation of new automatic meter reading system and the new meters throughout the City is underway , as of the end of FY 2013, with the entire laon authorization expended, approximately 80% of the meters will have been replaced. The available funds from the Transmission Main loan authorization will be used to continue the meter project. AII BAN's have been converted to bonds in FY2011. It is estimated that an additional 8500,000 may be needed to compete this project. Internal and External Rehabilitation - Gallows and Folly Hills Storage Tanks (2011) o Authorized $ 1,000,000 . Issued $ 1,000,000 o Unissued $ 0 As of May 16,2013,we have $323,000 encumbered, $388,000 available, and $289,000 expended a Both Storage tanks were inspected in 2010, the results found the protective paining system at the Gallows Hill Tank was failing and needs to be replaced, and the Folly Hill Tank requiredfurther structural inspection. The Folly Hill Tank was drained and inspected in the fall of 201 1, a report summarizing the findings of the inspection is expected by the end of FY 2013. Improvements to the Folly Hill Tank are expected, but not yet defined. The current loan authorization is be expended to complete the investigations of both tanl