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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 addressed in a responsible manner based on priority and thoughtful planning. A capital improvement program is a critical component of the capital improvement budget and the overall budget strategy. By formalizing a capital plan and capital budget, the City of Salem has the ability and knowledge to address deferred maintenance issues that have been postponed and ignored in prior years, as well as plan for the future needs of the City. When considering funding items in the Capital Improvement Program, the City strategically pursues available options from grants at the state and federal levels, and also utilizes monies available from water and sewer retained earnings to avoid the issuance of long term debt for certain projects that can be covered in full by such retained earnings. From a financing perspective, priority is given to projects with grant 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, decreasing deferred maintenance costs, reducing heating and electricity expenses, and creating efficiencies by means of technological advances and automation. As important, a sound capital 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 Mayor – FY2022 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 implementation of capital work projects. Our early efforts focused on overhauling and renovating neglected parks, playgrounds and recreational spaces, as well as a full assessment of roadway, sidewalk and utility infrastructure conditions which enabled us to begin implementation of a comprehensive strategy to address long overdue maintenance needs in these areas. Priority is given to projects that can use grant funds to help offset overall costs of projects, or in some cases, fund an entire project. Otherwise, projects are ranked based upon priority as well as the ability to stabilize long term operational costs. Sec. 7-1 ---PAGE BREAK--- FY2022 Capital Improvement Program (CIP) – highlights of proposed CIP and FY2022 Capital Budget For FY2022, the Mayor and Finance Director have created a capital plan that is fiscally responsible and transparent. The plan includes a particular focus on asset preservation, replacement of apparatus and equipment, and continued improvements to the City’s historic infrastructure. The City of Salem is scheduled to receive an estimated $840,000 from the Commonwealth of Mass for road repairs from Chapter 90 Grant funding. In addition to the authorized Chapter 90 funding, the City will be funding an additional $1,500,000 for roadway improvements and sidewalks beyond the state aid appropriation. As well, as funding a number of other specific roadway projects. The FY2022 capital improvement plan reflects a continued commitment to addressing aging infrastructure and improving the appearance of our City overall. Investments in playground upgrades, traffic calming, parking infrastructure, roadway improvement, technology initiatives, also including computer hardware, various departmental vehicles and equipment, as well as building repairs and maintenance. Sec. 7-2 ---PAGE BREAK--- Capital Improvement Program Overview A capital improvement program (CIP) is a blueprint for planning a community’s capital expenditures. A CIP is typically a multi-year plan identifying capital projects and equipment to be funded during the planning period. A CIP is composed of two parts, a capital program and a capital budget. The capital program is a plan for capital expenditures that extends out past the capital budget. The capital budget is the upcoming year’s spending plan for capital items. Developing a CIP that will ensure sound financial and capital planning requires effective leadership and the involvement and cooperation of all municipal departments. A properly developed CIP will help the City in many ways such as enhancing a community’s credit rating, stabilizing debt service payments, and identifying the most economical means of financing capital projects. It will also help increase opportunities to obtain federal and state aid and help avoid duplication by overlapping governmental units. The City has several ways to finance its CIP, including state and federal grants, appropriations from the City’s Capital Outlay account, capital leases, and long-term borrowing. Depending on the cost and the useful life, the Finance Director will make recommendations to the Mayor for funding the City’s capital needs. Capital leases are often three years or less and are built into the operating budget. Capital leases are often used for items such as school buses, office equipment, and other items that may not last five years in useful life. The City’s Capital Outlay account typically funds items under $25,000 but can be used to fund items over $25,000 if it is deemed prudent. Funding capital improvements 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 capital items over $25,000 require long-term borrowing as authorized by a 2/3rd vote of the City Council upon recommendation of the Mayor. Long term bonding helps spread the costs of expensive capital improvements over their full useful life (per MGL Chapter 44/7 and Chapter 44/8). The CIP dovetails into the City’s five-year financial forecast for planning purposes. 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 a year-to-year basis. Oftentimes the CIP suffers as fixed costs such as health insurance and retirement assessments continue to rise which places further pressure on the operational budget. However, it is incumbent upon the Mayor and Finance Director to ensure that both the operating budget and CIP are reasonable and attainable to ensure fiscal stability within the limitations of Proposition 2 ½. What is a Capital Asset? Capital items are tangible assets or projects with a value of $25,000 or more and must have a depreciable life of five or more years. Examples of Capital Assets are DPW equipment, Buildings (purchase or major renovations), water and sewer infrastructure. Items that are NOT capital assets include services, painting rooms or buildings, books, field maintenance, routine building maintenance. Sec. 7-3 ---PAGE BREAK--- This Capital Plan has multiple funding sources, including grant funds, capital lease, one-time appropriations, Community Preservation Act funds, and bonding. The list proposed is a scaled down list from departmental requests, with priority given to those projects that are supplemented by grant dollars or any other revenue sources that will keep net general fund expenditures to a minimum. TOTAL PROPOSED CAPITAL PLAN FOR THE CITY OF SALEM: $ 11,654,000 TOTAL PROPOSED FOR BORROWING AND CAPITAL LEASES: $ 9,819,000 FY22 CIP –CH. 90: Engineering Roads, Sidewalks & Crosswalks (Chapter 90) 840,000 TOTAL CH.90: 840,000 FY22 CIP-Funded from one time revenue sources-CAPITAL OUTLAY FUND-FUND 2000 Building Improvements, Upgrades, Repairs, and ADA Compliance - 40,000 City Clerk Replcacement of Voting Equipment 55,000 Electrical F350 Utility Truck 55,000 Fire Portable Radios 20,000 Fire General Building Maintenance/Upgrades/Master Plan 50,000 HarborMaster Dockhouse Relocation 50,000 Health Mack Park Community Farm 15,000 Recreation Equipment - Golf Course & Winter Island 87,000 Parking Parking Equipment Install and Maintenance (meters, kiosks, Evs, other) 75,000 Planning Studies, Including Open Space, Harmony Grove Multi-Use Path, Other 100,000 Planning Dickson Chapel Next Phases Design 30,000 Planning OTH & Artist Row General Upgrades, Improvements, Repairs, & ADA 30,000 Police Body Worn Cameras, Police Equipment 90,000 Police Community Cameras 45,000 Police Police Headquarters General Repairs, Improvements, Elevator, ADA 75,000 Pulbic Services F550 Dump 69,000 School Motorized Cleaning Equipment 109,000 TOTAL CAPITAL OUTLAY FUND: 995,000 Sec. 7-4 ---PAGE BREAK--- FY22 CIP-Funded from CAPITAL LEASES TOTAL CAPITAL LEASES: - FY22 CIP-Funded from anticipated BOND AUTHORIZATION Engineering Roads, Sidewalks & Crosswalks (Non Chapter 90 eligible, includes Bridge, Boston, Washington, Essex, Other) 1,500,000 Engineering Citywide Seawall Improvements 200,000 Engineering McGrath Park Soils Redemption 200,000 Engineering Derby St Complete Project phase 3 560,000 Fire New Engine to Replace Engine 1 662,000 IT Annual Equipment-Life-Cycle Mgmt Program (City) 125,000 Library General Building Upgrades, Improvements, Envelope, ADA 85,000 Recreation Golf Course Cart Paths 426,000 Recreation City Wide Playgorund Equipmen, Court, Minor Park Repairs 100,000 Recreation Park and Recreation Major Improvements/ADA 100,000 Recreation Willows Pier 900,000 Parking and Traffic Traffic Calming Improvements 70,000 Parking and Traffic Bicycle Infrastructure Design, Implementation & Repairs/Improvements 100,000 Parking and Traffic Museum Place Garage Renovation Phase 2 1,580,000 Parking and Traffic South Harbor Garage Stair Replacement & ADA Compliance 850,000 Parking and Traffic MP & SH Garage Maintenance, Repairs, ADA 100,000 Planning OTH Restorations & Systems Assesment, Planning, Design 100,000 Police Police & Fire Radio Communication System 250,000 Police Vehicle Replacement Program 150,000 Public Servcies Annual Small Repairs, DPS Building Studies and ADA Improvements - DPS & Cemeteries 75,000 Public Servcies Salem DPS Salt Shed Project 420,000 Public Servcies Replae Primary Sweeper 241,000 Schools School Life Safety, MEP, Utility, Roof Repairs, Upgrades, Studies 150,000 Schools Collins Roof/Masonry Study/Repair 125,000 Schools District Camera and Access Control 250,000 Schools Energy/Water Upgrades and Audits 125,000 Schools Heights Floor Replacement 300,000 Schools ADA/Architectural/Interior, Site Repairs, Upgrades, Studies Schools 75,000 Sec. 7-5 ---PAGE BREAK--- TOTAL BOND AUTHORIZATION: 9,819,000 GRAND TOTAL GENERAL FUND CAPITAL REQUESTS: 11,654,000 Sec. 7-6 ---PAGE BREAK--- Approved Approved Approved FY22 Funding Source Funded FY22 Dept. Request FY2022 CAPITAL REQUEST FY20 FY21 FY21 Mid Future Need FY2023 FY2024 FY2025 FY2026 Building Clerk's Office Phased Restoration of Walls, Carpets, & Associated Areas 50,000 Office Improvements, Upgrades, Repairs, and ADA Compliance 30,000 Fund 2000 Y 40,000 40,000 40,000 40,000 40,000 Subtotal:Building 30,000 40,000 40,000 40,000 40,000 40,000 City Clerk Replacement of Voting Equipment Fund 2000 Y 55,000 Repair and Replace City Council Furniture 18,795 Vault Storage for Historic Preservation 51,125 Subtotal: City Clerk 51,125 - 55,000 - - - - Electrical ADA Walk Signal Buttons 10,000 10,000 10,000 10,000 10,000 Riley Plaza LED Lighting 76,000 F150 Pick Up Truck 38,000 38,000 F350 Utility Truck Fund 2000 Y 55,000 Led Lighting Upgrades (100 Watt Led Luminancies) Smart Signalization Expansion 225,000 100,000 2019 Ford F350 Pickup Truck 8' Bed 2 Wheel Drive 31,000 24,000 Ford F650 Areal Truck 195,000 195,000 Subtotal: Electrical 256,000 210,000 - 55,000 205,000 48,000 10,000 - Engineering - Roads, Sidewalks, & Crosswalks Boston Street Complete Upgrade (TIP) 200,000 285,000 500,000 3,500,000 Bridge Street (Massworks) Roadway improvements 150,000 500,000 100,000 Citywide seawall improvements (inc. Columnbus) 100,000 Bonding Y 200,000 500,000 Common Signature Park Fund 1,500,000 Common Bandstand Restoration 43,400 60,000 DPS relocation study / evaluation 185,000 500,000 25,000,000 Essex St Ped & vehicle access improv. (nic lights-north st) 200,000 200,000 Forest River Pool & Associated Facilities 200,000 1,000,000 10,100,000 McGrath Park Soils Remediation 80,000 Bonding Y 200,000 2,100,000 Transfer Station Cap 1,000,000 Willows Park Restoration (and Signature Park) 210,000 1,000,000 Derby St Complete Streets 842,400 340,000 Bonding Y 560,000 Washington & Bridge St. Intersection Mass works 100,000 100,000 Szetela Lance Shared Use Path 303,000 Roads, Sidewalks & Crosswalks (Non Chapter 90 eligible) 1,540,000 800,000 Bonding Y 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Howard Street Reconstruction 843,000 Winter Island Restoration Signature Park 2,100,000 Leggs Hill Culvert Study 100,000 Roads, Sidewalks & Crosswalks (Chapter 90) 870,000 870,000 Ch. 90 Y 840,000 Subtotal: Eng. - Roads, Sidewalks, Crosswalks 4,358,800 6,420,000 12,800,000 3,300,000 2,000,000 1,500,000 1,500,000 1,500,000 Fire ADA - Fire Station - # Paving, Ramp, Drainage, R&M 125,000 Bay Floor 750,000 Requested City of Salem Capital Plan - General Fund Fiscal Year 2022-2026 Sec. 7-7 ---PAGE BREAK--- Approved Approved Approved FY22 Funding Source Funded FY22 Dept. Request FY2022 CAPITAL REQUEST FY20 FY21 FY21 Mid Future Need FY2023 FY2024 FY2025 FY2026 Requested Facade Repair - Station 2 & 4 32,000 250,000 General Building Upgrades/Master Plan/Repairs/ADA 30,000 Fund 2000 Y 50,000 85,000 85,000 85,000 85,000 Ladder 1 1,373,152 New Engine to Replace Engine 1 Bonding Y 662,000 Paving Station 5 40,000 Portable Radios Fund 2000 Y 20,000 Scott Self Contained Breating Apparatus & Accessories 24,940 Bathroom and ADA Code Upgrades 250,000 Station 1 Antenna Project 346,000 Subtotal: Fire 54,940 503,000 - - - 732,000 1,000,000 335,000 85,000 85,000 85,000 Harbormaster Department Truck Harbormaster Dockhouse Relocation Fund 2000 Y 50,000 Mooring/Harbor Management 12,000 Primary Patrol Vessel 337,000 Enchanced Communication DHS 25,500 Subtotal : Harbormaster 25,500 - - - 50,000 - 337,000 - - - Health Health Department Vehicle 35,000 35,000 Mack Park Community Farm 20,000 Fund 2000 Y 15,000 50,000 Subtotal : Health - 20,000 - - 15,000 50,000 35,000 - - - Information Technology Annual Equipment-Life-Cycle Mgmt Program (City) 120,995 120,405 Bonding Y 125,000 120,000 120,000 120,000 120,000 Annual Equipment- Life-Cycle Mgmt Program (Schools) 171,506 171,449 216,462 200,000 Ongoing Dititization of record, City wide 75,000 150,000 139,585 100,000 100,000 100,000 View Permit Upgrade 74,680 Subtotal: Information Technology 442,181 441,854 - - - 125,000 - 420,000 220,000 220,000 120,000 Library ADA Upgrades 10,000 10,000 Theft detection system replacement 30,000 Repairs to roof emergency stairway 28,750 Fire Alarm Repairs 4,950 Outdoor ADA Accessible Book Drop 13,006 Children's Room resdesign furniture and fixtures 20,000 General Building Upgrades/Improvements/Envelope/ADA Bonding Y 85,000 25,000 25,000 25,000 25,000 Envelope & leak detection 10,000 Subtotal: Library 60,000 38,750 4,950 - - 85,000 - 25,000 25,000 25,000 25,000 Parks, Recreation & Community Services Park and Recreation Major Improvements inc. ADA - 40,000 Bonding Y 100,000 100,000 100,000 100,000 100,000 Apron Tee Greens Mower 46,000 Bertram Field Phase 2 4,956,357 Court Renovations 75,000 125,000 100,000 Forest River Restrooms Interior Renovation 175,000 Park & Rec Facilities Truck 30,000 Playground, Irrigation & Fence Upgrades 75,000 75,000 Golf Course Cart Paths Bonding Y 426,000 Tractor/Loader/Backhoe 70,235 City Wide Playground, Court, Park Equipment, & Minor Repairs Bonding Y 100,000 125,000 125,000 125,000 125,000 Equipment - Golf Course & Winter Island Fund 2000 Y 87,000 Sec. 7-8 ---PAGE BREAK--- Approved Approved Approved FY22 Funding Source Funded FY22 Dept. Request FY2022 CAPITAL REQUEST FY20 FY21 FY21 Mid Future Need FY2023 FY2024 FY2025 FY2026 Requested Willows Pier Bonding Y 900,000 Pioneer Village Signature Park 2,000,000 Subtotal: Recreation 5,106,357 561,235 - - - 1,613,000 - 225,000 225,000 225,000 225,000 Parking and Traffic Department South Harbor Security 175,000 South Harbor Garage Bathrooms 250,000 Bike Share 50,000 Parking Equipment Install and Maintenance (meters, kiosks, Evs, other) Fund 2000 Y 75,000 Garage Improvements - Annual Maint & ADA Compliance 100,000 100,000 Bonding Y 100,000 100,000 100,000 100,000 100,000 Traffic Calming Improvements 76,500 50,000 Bonding Y 70,000 Community Car Share 95,690 Bicycle Infrastructure Upgrades (Annual) 25,500 - Bicycle Infrastructure Design, Implementation & Repairs/Improvements 200,000 Bonding Y 100,000 208,000 212,000 216,000 220,000 Museum Place Garage Renovation Phase 1 200,000 1,100,000 Norman Summer Chestnut Roundabout Phase 4 241,000 Museum Place Garage Restoration Future Phases Bonding Y 1,580,000 1,500,000 Signs/Safety/Tactical 25,500 South Harbor Stair Replacement & ADA Compliance Bonding Y 850,000 Subtotal: Parking and Traffic 427,500 1,691,000 475,000 - - 2,775,000 1,500,000 308,000 312,000 316,000 320,000 Planning Artists Row Bathroom Reno, Design & Construction 130,000 Purchase of Nissan Leaf at End of Lease 9,346 Common Fence Maintenance 20,000 Gallows Hill Park Renovation 227,259 Mansell Field Restoration 150,000 Municipal Harbor Plan 55,500 Palmer Cove Park Renovation & Signature Park 50,000 270,000 500,000 Bike Plan Infratstructure 10,000 Bike Plan Implementation 25,000 30,000 30,000 Dickson Memorial Chapel Study, Door Repair, Future Phases 25,000 30,500 Fund 2000 Y 30,000 350,000 Underpass Public Art Installation 25,000 OTH and Artists Row Repair, Minor Renos, ADA Comp. Studies 30,000 Fund 2000 Y 30,000 30,000 30,000 30,000 30,000 Willows Restoration & Park Improvements 1,000,000 Forten Park Programming, Management, Maintenance 10,000 Harmony Grove Multiuse Path Study/Design 30,000 OTH Restorations & Systems Assesment, Planning, & Design Bonding Y 100,000 Historic Cemetery Stone Restorations 25,000 Neighborhood Interpretive Signs 14,000 Studies, Including Open Space, Harmony Grove Multi-Use Path, Other Fund 2000 Y 100,000 OTH Capital and Business Needs Study 25,000 Subtotal: Planning 442,105 1,620,500 500,000 - - 260,000 350,000 60,000 60,000 30,000 30,000 POLICE Auditorium Seating and Flooring Replacement with ADA Comp 33000 Body Worn Cameras / Police Equipment Fund 2000 Y 90,000 65,000 65,000 65,000 65,000 Elevator Controller and Door Operator Replacement 55,000 Sec. 7-9 ---PAGE BREAK--- Approved Approved Approved FY22 Funding Source Funded FY22 Dept. Request FY2022 CAPITAL REQUEST FY20 FY21 FY21 Mid Future Need FY2023 FY2024 FY2025 FY2026 Requested Police & Fire Radio Communication System 50,000 Bonding Y 250,000 4,500,000 Police Headquarters General Repairs, Improvements, Elevator, ADA 30,000 Fund 2000 Y 75,000 Vehicle Replacement Plan 196,000 250,000 Bonding Y 150,000 250,000 250,000 250,000 250,000 Cameras - Community/Police 75,000 45,000 Fund 2000 Y 45,000 45,000 45,000 45,000 45,000 Boiler and Heaters 157,595 Subtotal: Police 478,595 358,000 - - - 610,000 4,500,000 360,000 360,000 360,000 360,000 Public Services International Dump Truck 100,000 50,000 Annual Small Repairs, DPS Building Studies and ADA Improvements - DPS & Cemeteries 25,000 Bonding Y 75,000 30,000 30,000 30,000 30,000 Ball Field Maint. Mach. 31,000 Replace 16 yr truck with grant funded new vehicle 109,100 Park Department Foreman Truck 40,000 Replace Primary Sweeper #28 (2003) Bonding Y 241,000 Salem DPS Salt Shed Project Bonding Y 420,000 Replace 16 yr truck with grant funded new vehicle 109,100 Cat. Backhoe 100,000 F550 Dump 67,000 23,012 Fund 2000 Y 69,000 F350 Ford Pickup 43,000 Ford Escape/Engineering-DPS 34,000 Replace 2000 Front End Loader 243,000 243,000 Winter Island Lighthose Concrete Restoration, Painting 30,000 Subtotal: Public Services 228,000 409,212 - - - 805,000 - 273,000 30,000 30,000 30,000 Schools Bentley Boilers/HVAC 226,000 Bathroom Renovations - SHS 200,000 Building and Strategic Master Plan 125,000 50,000,000 Bus-29 Passenger #1 (leased over 3 years) 68,500 30 Pass. Bus w/ 2 WC 95,000 Capital Repairs (Roof Projs, Signage, Playground, Other) 330,000 Collins Roof/Masonry Study/Repair Bonding Y 125,000 District Camera and Access Control Bonding Y 250,000 77 Passenger Bus 97,000 Energy/Water Upgrades and Audits Bonding Y 125,000 Horace Mann Gym floor Replacement 50,000 New High School Gym Floor 220,000 SHS Library Remodel 20,000 250,000 Playground Equip Replacment School Life Safety, MEP, Utility, Roof Repairs, Upgrades, Studies Bonding Y 150,000 250,000 250,000 250,000 250,000 Saltonstall Water Heaters 84,000 Chiller & Assoc. HVAC System 605,000 Site/Field Studies & Small Repairs to Capital Assets 30,000 Office Remodel - Collins 270,000 Life Safety Studies & Small Repairs to Capital Assets 90,000 MEP/Elevator/Utility Studies & Small Repairs to Capital Assets 180,000 Roof/Envelope Studies&Small Repairs to Capital Assets 25,000 Heights Floor Replacement Bonding Y 300,000 300,000 Sec. 7-10 ---PAGE BREAK--- Approved Approved Approved FY22 Funding Source Funded FY22 Dept. Request FY2022 CAPITAL REQUEST FY20 FY21 FY21 Mid Future Need FY2023 FY2024 FY2025 FY2026 Requested Motorized Cleaning Equipment Fund 2000 Y 109,000 Access/ADA/Archit Studies & Small Repairs to Capital Assets 160,000 265,000 Bonding Y 75,000 150,000 150,000 150,000 150,000 Subtotal: Schools 1,386,000 1,508,500 226,000 - - 1,134,000 50,000,000 700,000 400,000 400,000 400,000 Bonding 9,819,000 Capital Leases - Ch. 90 840,000 Footnotes: Fund 2000 995,000 Bertram Field is listed at full amount of loan, CPA authorized payment of $100k for 20 years Total CIP 11,654,000 Total to be Bonded 9,819,000 Sec. 7-11 ---PAGE BREAK--- Department Description Funding Cost Impact Building Improvements, Upgrades, Repairs, and ADA Compliance - 40,000 Code Compliance/ Preventative Maintenance City Clerk Replcacement of Voting Equipment Fund 2000 55,000 Increased Efficiency Electrical F350 Utility Truck Fund 2000 55,000 Decreased Maintenance/ Improves Safety of Asset/ Increased Efficiency/Preventative Maintenance Engineering Roads, Sidewalks & Crosswalks (Non Chapter 90 eligible, includes Bridge, Boston, Washington, Essex, Bonding 1,500,000 Asset Preservation/Decreased Maintenance Engineering Citywide Seawall Improvements Bonding 200,000 Asset Preservation Engineering McGrath Park Soils Redemption Bonding 200,000 Asset Preservation/Improves Safety of Asset Engineering Derby St Complete Project phase 3 Bonding 560,000 Asset Preservation/Improves Safety of Asset/ Increased Efficiency Fire Portable Radios Fund 2000 20,000 No Impact Fire General Building Maintenance/Upgrades/Master Plan Fund 2000 50,000 Asset Preservation/Code Compliance/Decreased Maintenance Fire New Engine to Replace Engine 1 Bonding 662,000 Decreased Maintenance/Improves Safety of Asset HarborMaster Dockhouse Relocation Fund 2000 50,000 Asset Preservation Health Mack Park Community Farm Fund 2000 15,000 No Impact IT Annual Equipment-Life-Cycle Mgmt Program (City) Bonding 125,000 No Impact Library General Building Upgrades, Improvements, Envelope, ADA Bonding 85,000 Asset Preservation Improves Safety of Asset Increased Efficiency Parking Parking Equipment Install and Maintenance (meters, kiosks, Evs, other) Fund 2000 75,000 Increased Efficiency, Revenue Generator Parking and Traffic Traffic Calming Improvements Bonding 70,000 No Impact Parking and Traffic Bicycle Infrastructure Design, Implementation & Repairs/Improvements Bonding 100,000 Asset Preservation/Code Compliance/Decreased Maintenance Parking and Traffic Museum Place Garage Renovation Phase 2 Bonding 1,580,000 Asset Preservation/Improves Safety of Asset/ Increased Efficiency Parking and Traffic South Harbor Garage Stair Replacement & ADA Compliance Bonding 850,000 Asset Preservation/Safety of Asset Parking and Traffic MP & SH Garage Maintenance, Repairs, ADA Bonding 100,000 Preventative Maintenance Planning Studies, Including Open Space, Harmony Grove Multi-Use Path, Other Fund 2000 100,000 No Impact New Investment Planning Dickson Chapel Next Phases Design Fund 2000 30,000 Asset Preservation Planning OTH & Artist Row General Upgrades, Improvements, Repairs, & ADA Fund 2000 30,000 Asset Preservation/Code Compliance/Decreased Maintenance Planning OTH Restorations & Systems Assesment, Planning, Design Bonding 100,000 Asset Preservation/Code Compliance/Decreased Maintenance Police Body Worn Cameras, Police Equipment Fund 2000 90,000 No Impact Police Community Cameras Fund 2000 45,000 Improves Safety of Asset Police Police Headquarters General Repairs, Improvements, Elevator, ADA Fund 2000 75,000 Asset Preservation/Code Compliance/Decreased Maintenance Police Police & Fire Radio Communication System Bonding 250,000 Decreased Maintenance/ Increased Efficiency Police Vehicle Replacement Program Bonding 150,000 Increased Efficiency Public Servcies Annual Small Repairs, DPS Building Studies and ADA Improvements - DPS & Cemeteries Bonding 75,000 Capital Planning/Decreased Maintenance/Increased Efficiency Public Servcies Salem DPS Salt Shed Project Bonding 420,000 Asset Preservation/Increased Efficiency Public Servcies Replace Primary Sweeper Bonding 241,000 Preventative Maintenance Pulbic Services F550 Dump Fund 2000 69,000 No Impact Recreation Equipment - Golf Course & Winter Island Fund 2000 87,000 Increased Efficiency, Preventative Maintenace IMPACT OF CAPITAL IMPROVEMENT PROJECTS ON OPERATING BUDGET Sec. 7-12 ---PAGE BREAK--- Department Description Funding Cost Impact IMPACT OF CAPITAL IMPROVEMENT PROJECTS ON OPERATING BUDGET Recreation Golf Course Cart Paths Bonding 426,000 Improves Safety of Asset/New Investment for Economic Growth/Asset Preservation Recreation City Wide Playgorund Equipmen, Court, Minor Park Repairs Bonding 100,000 Preventatative Mainteance/No Impact Recreation Park and Recreation Major Improvements/ADA Bonding 100,000 Asset Preservation Recreation Willows Pier Bonding 900,000 Improves Safety of Asset/New Investment for Economic Growth/Asset Preservation School Motorized Cleaning Equipment Fund 2000 109,000 Preventative Maintenance/ No Impact Schools School Life Safety, MEP, Utility, Roof Repairs, Upgrades, Studies Bonding 150,000 Asset Preservation/Code Compliance/Decreased Maintenance/Increased Efficiency Schools Collins Roof/Masonry Study/Repair Bonding 125,000 Asset Preservation/Preventative Maintenance Schools District Camera and Access Control Bonding 250,000 Improves Safety of Asset Schools Energy/Water Upgrades and Audits Bonding 125,000 Increased Efficiency Schools Heights Floor Replacement Bonding 300,000 Improves Safety of Asset Schools ADA/Architectural/Interior, Site Repairs, Upgrades, Studies Schools Bonding 75,000 Asset Preservation/Code Compliance/Decreased Maintenance Sec. 7-13 ---PAGE BREAK--- The Enterprise Fund's Capital Plan has multiple funding sources, including retained earnings, SESD funds and bonding. The list proposed has been reviewed and approved by the City's Engineer. Total proposed Capital Plan for the City of Salem's Enterprise Funds for FY22 is: 4,429,000 $ Total proposed for Borrowing & Capital Leases for the WS Enterprise Funds for FY22 is: 4,429,000 $ FY22 Enterprise Fund CIP-Funded from bonding Water Bridge St. Water Main Replacement Water Citywide Flushing, valve excecise, leak detection, GIS - 400,000 Water Folly Hill Water Tank Upgrades/Major Repairs 345,000 Water Highland Ave 16 inch Water Main - 300,000 Water Water Distribution Main System Improvements - 800,000 Water Water Meter Reader Truck 34,000 Water Water Transmission Main System Improvements - 400,000 Water Loring Ave. 16 Ince Water Main Replacement 200,000 Sewer Community Wide Climate Change/Stormwater/Watershed Model and Outreach 50,000 Sewer Brown/Church Street Drainage Improvements Sewer Citywide Drain & Sewer Flushing, Pipe Replacements, Sewer Extensions, GIS - 1,450,000 Sewer Ocean Ave Sewer Pump Station Design 150,000 Sewer Rosie's Pond Flood Protection & Drainage System Improvements - Sewer SSES Report Implementation (eliminate I/I sources citywide) - 300,000 Sewer Stodder Place Drainage Improvements FY 2022 CIP Enterprise Funds Executive Summary FY2 Enterprise Fund CIP – Funding Sources Sec. 7-14 ---PAGE BREAK--- Sewer Willow Ave. Sewer Line Replacement- TOTAL BONDING: 4,429,000 FY22 CIP-Funded from CAPITAL LEASES TOTAL CAPITAL LEASES: GRAND TOTAL ENTERPRISE FUND CAPITAL REQUESTS: 4,429,000 Sec. 7-15 ---PAGE BREAK--- CAPITAL REQUEST Approved FY20 FY2021 FY22 Funding Source FY2022 FY2023 FY2024 FY2025 FY2026 Future Need Water Enterprise-Engineering Distribution System Highland Ave 16 inch water main and valves (replace 1930 vintage system) 200,000 Bonding 300,000 8,500,000 Szetela lane (from lee fort terrance to memorial drive loop) Bertram Field Phase 2 100,000 Bridge St. Water Main Replacement City Wide-Distribution Main System Initiatives (plan, design & construct) 100,000 300,000 Bonding 800,000 1,145,000 1,145,000 1,145,000 Vactor Truck #18 Replacement 433,033 Forest River New Water Line 100,000 City Wide System Flushing, Valve Maint., Leak Detection and GIS Admin. 100,000 300,000 Bonding 400,000 400,000 400,000 400,000 Water Meter Reader Truck Bonding 34,000 Replace 2001 Primary Front End Loader Transmission main system initiatives (plan, design & construct) 100,000 500,000 Bonding 400,000 1,000,000 1,000,000 1,000,000 Loring Ave 16 inch Water Main Bonding 200,000 3,800,000 Folly Hill Water Tank Upgrades/Major Repairs Bonding 345,000 Subtotal: Water Enterprise 400,000 1,833,033 2,479,000 2,545,000 2,545,000 2,545,000 Sewer Enterprise-Engineering Sewer - City Wide System Flushing, Valve Maint., Leak Detection and GIS Admin. 200,000 300,000 Bonding 1,450,000 400,000 400,000 400,000 EPA MS4 Stormwater Permit Compliance/Illicit Connection Removal Pre-Paving Sewer/ drain inspections (prior to annual paving) 50,000 Spoil Material Disposal at dps (testing and disposal) 50,000 SSES report implementation (eliminate I/I sources city wide ) 600,000 600,000 Bonding 300,000 800,000 800,000 800,000 289 derby drain (replace existing) 289 Derby St at Congress-Drainage system repairs(Waterfront Hotel Commitment) 250,000 575,000 Fowler and No Pine St Sewer Rehabilitation Moffat drainage easement improvements Palmer Cove drain outfall clean-up (remove bacteria source) 100,000 Willow Ave (pipe beach) sewer replacement 200,000 Bertram Field Phase 2 250,000 Canal Street- SSU Flood Mitigation Improvements-Phase II Rosies Pond flood improvements 1,000,000 1,500,000 Community Wide Climage Change/Watershed Stormwater Model Bonding 50,000 531/2 Canal Sewer Easement Evaluation 50,000 Brown/Church Street Drainage Improvements 200,000 Derby ST. Interceptor Sewer Cleaning Evaluation 250,000 Ocean Ave Sewer Pump Station Deisgn Bonding 150,000 Stodder Place Drainage Improvements 100,000 International Dump Truck 80,000 250,000 Subtotal: Sewer Enterprise 1,400,000 2,925,000 4,150,000 1,200,000 1,200,000 1,200,000 Total: Enterprise Fund 1,800,000 4,758,033 6,629,000 3,745,000 3,745,000 3,745,000 City of Salem Capital Plan - Water and Sewer Enterprise Fund REQUESTED FY2022 to 2026 Sec. 7-16 ---PAGE BREAK--- CAPITAL REQUEST Approved FY20 FY2021 FY22 Funding Source FY2022 FY2023 FY2024 FY2025 FY2026 Future Need City of Salem Capital Plan - Water and Sewer Enterprise Fund REQUESTED FY2022 to 2026 Bonding 4,429,000 Bond Premium - Grants - R/E - Capital Lease - SESD - Sec. 7-17 ---PAGE BREAK--- Water or Sewer Description Funding Cost Impact Water Citywide Flushing, valve excecise, leak detection, GIS - Bonding 400,000 Preventative Maintenenance, Increased Efficiency Water Folly Hill Water Tank Upgrades/Major Repairs Bonding 345,000 Asset Preservation Water Highland Ave 16 inch Water Main - Bonding 300,000 Asset Preservation, Increased Efficiency Water Water Distribution Main System Improvements - Bonding 800,000 Increased Efficiency, Code Compliance Water Water Meter Reader Truck Bonding 34,000 Increased Efficiency, Cost Transfer Water Water Transmission Main System Improvements - Bonding 400,000 Increased Efficiency, Code Compliance Water Loring Ave. 16 Ince Water Main Replacement Bonding 200,000 Asset Preservation, Increased Efficiency Bonding Sewer Community Wide Climate Change/Stormwater/Watershed Model and Outreach Bonding 50,000 Improves Safety of Asset, Asset Preservation Sewer Citywide Drain & Sewer Flushing, Pipe Replacements, Sewer Extensions, G Bonding 1,450,000 Preventative Maintenenance, Increased Efficiency Sewer Ocean Ave Sewer Pump Station Design Bonding 150,000 Improves Safety of Asset, Asset Preservation Sewer SSES Report Implementation (eliminate I/I sources citywide) - Bonding 300,000 Preventative Maintenenance, Increased Efficiency Grand Total All Water & Sewer Enterprise Capital Projects 4,429,000 IMPACT OF WATER & SEWER CAPITAL IMPROVEMENT PROJECTS ON OPERATING BUDGET Sec. 7-18 ---PAGE BREAK--- Capital Improvement Policies Budget Policies The city will make all capital purchases and improvements in accordance with the adopted capital improvement program. The city will develop a multi-year plan for capital improvements and update it annually. The city will enact an annual capital budget based on the multi-year capital improvement plan. Future capital expenditures necessitated by changes in population, changes in real estate development or changes in economic base will be calculated and included in capital budget projections. The city will coordinate development of the capital improvement budget with the development of the operating budget. Future operating costs associated with new capital improvement will be projected and included in operating budget forecasts. The city will use intergovernmental assistance to finance only those capital improvements that are consistent with the capital improvement plan and priorities, and whos’ operating and maintenance costs have been included in operating budget forecasts. The city will maintain all its assets at a level adequate to protect the city’s capital investment and to minimize future maintenance and replacement costs. The city, as part of its capital planning process, will project its equipment replacement and maintenance needs for the next several years and will update this projection each year. From this projection, a maintenance and replacement schedule will be developed and followed. The city will identify the estimated costs and potential funding sources for each capital project proposal before it is submitted to the City Council for approval. The city will determine the least costly financing method for all new projects. Sec. 7-19 ---PAGE BREAK--- Debt Policies The city will confine long-term borrowing to capital improvements or projects/equipment that cannot be finance from current revenues. When the city finances capital projects by issuing bonds, it will pay back the bonds within a period not to exceed the expected useful life of the project. Total net debt service from general obligation debt will not exceed five percent of total annual operating budget as listed on part 1a of the annual tax rate recapitulation as submitted to the Department of Revenue. Debt will only be issued for capital that is valued greater than $25,000 and has a depreciable life of five or more years. Total general obligation debt will not exceed that provided in the state statues. Whenever possible, the city will use special revenue funds, special assessments, or other self-supporting bonds, instead of general obligation bonds. The city will not use long-term debt for current operations unless otherwise allowed via special legislation. The city will retire bond anticipation debt within six months after completion of the project. The city will maintain good communications with bond rating agencies about its financial condition. The city will follow a policy of full disclosure on every financial report and bond prospectus. Source: “Handbook 4, Financial Performance Goals”, Evaluating Local Government Financial Condition, International City Management Association. Sec. 7-20