Bond and Interest Fund

Transcription

1 Bond and Interest Fund J-1

2 Fund BOND AND INTEREST Budget Resources by Classification: Total $10,305,374 Fund Bal. Fwd., 44.28% Ad Valorem Taxes, 43.30% Spec. Assessment 5.92% Misc., 0.05% Other Taxes, 4.48% Use of Money/Prop 1.97% RECEIPTS 2002 Actual 2003 Adopted 2003 Estimated 2004 Budget Taxes - Current $ 4,048,928 $ 4,352,536 $ 4,352,536 $ 4,649,975 Taxes - Delinquent 63,478 40,000 40,000 38,151 Payment In Lieu of Taxes 17,169 6,212 6,212 15,000 Motor Vehicle Taxes 451, , , ,849 Special Assessments 640, , , ,000 Interest on Investments 252, , , ,000 Airport charges Miscellaneous 134,025 5,000 5,000 53,000 Other transfers Transfers from Parking (Riverfront Garage) TOTAL RECEIPTS 5,608,531 5,652,206 5,652,206 6,377,975 Balance, January 1 7,638,070 4,491,070 7,006,605 3,927,399 TOTAL RESOURCES AVAILABLE 13,246,601 10,143,276 12,658,811 10,305,374 Revenue Sources - Descriptions and Trends Revenue Source- Property taxes are the major source of revenue for the Bond and Interest Fund, followed by special assessments, motor vehicle tax, and interest on investments. This fund is used to account for the accumulation of resources and payment of general obligation bond principal and interest from governmental resources and special assessment bond principal and interest form special assessment levies of the primary government when the government is obligated to pledge its full faith and credit for the payment. Trends- Assessed valuation growth has slowed from the 8-9% growth experienced in previous years to a more modest 7% increase this year. The Bond and Interest mill levy remains stable, taking into consideration the increase in assessed property valuation, but is expected to rise in the next few years in order to provide revenue for several City-at-large capital improvement projects approved recently. J-3

3 Fund BOND AND INTEREST Budget Expenditures by Category: Total $9,924,856 Contingency 5% Debt Service 95% 2002 EXPENDITURES Actual GO Bonds - Principal 4,122, Adopted 2003 Estimated 2004 Budget $ $ 6,005,000 $ 5,505,000 $ 6,600,000 GO Bonds - Interest 2,115,664 3,206,412 3,206,412 2,814,856 Commission / Postage 1,500 20,000 20,000 10,000 Cash Basis Reserve - 450, ,000 Transfers TOTAL EXPENDITURES $ 6,239,996 $ 9,681,412 $ 8,731,412 $ 9,924,856 FUND BALANCE FORWARD $7,006,605 $461,864 $3,927,399 $380,518 Expenditures - Descriptions and Trends GO Bonds - Principal- The money owed as long-term debt payable from the full faith and credit of the City, upon which interest is calculated. Increases in 2003 expenditures reflect the capital improvmeent projects funded from general oblication (GO) bonds approved by previous City Commissions. These projects are related to expansion, growth, and maintenance of existing faciltiies. GO Bonds - Interest- The charge for issuing long term debt payable from the full faith and credit of the City. Cash Basis Reserve- An amount of funds set aside to insure that sufficient cash is available to pay principal and interest payments in the case there is a delay in receiving property taxes. The 2004 increase provides more of a safety net during difficult economic conditions. J-3

4 BOND AND INTEREST FUND BOND AND INTEREST ACCOUNT DEPARTMENT / DIVISION SPENDING SUMMARY EXPENDITURES 2002 Actual 2003 Adopted 2003 Estimate 2004 Budget Personal Services $ - $ - $ - $ - Commodities Capital Outlay Debt Service 6,239,996 9,231,412 8,731,412 9,424,856 Transfers Contingency - 450, ,000 Total $ 6,239,996 $ 9,681,412 $ 8,731,412 $ 9,924,856 PURPOSE AND MISSION OF THE DEPARTMENT / DIVISION This fund is used to account for the resources dedicated to the payment of the principal and interest on the City's general obligation bonds. Revenues come from ad valorem property taxes, special assessments, interest earnings and transfers of surplus funds from capital projects. As of June 30, 2003, the total debt for the city was $93,255,000. The City is limited by State law in the amount of general obligation debt it can incur. This limit is set at 30% of the total assessed valuation, including motor vehicle assessments. The legal debt margin as of June 30, 2003 can be computed as follows: Assessed Value - January 1, 2002 $696,271,456 Debt Limitation (30% of assessed value) $208,881,436 Total Bonded Debt (including notes) 103,765,000 Less Revenue Bonds -10,510,000 Total Debt applicable to limitation $ 93,255,000 Legal Debt Margin $ 115,626,436 CURRENT YEAR ACCOMPLISHMENTS Maintained a G.O. Debt rating of Aa2. Refunded G.O. debt to achieve savings of nearly $1.0 million in future payments. Issued $40.54 million in notes and bonds. Prepared a Debt Service Policy. J-5

5 BOND AND INTEREST FUND STATEMENT OF OUTSTANDING INDEBTEDNESS Outstanding January 1, 2002 Retired in 2002 Issued in 2002 Outstanding December 31, 2002 General Obligation Bonds $ 62,615,000 8,055,000 $ 12,105,000 $ 66,665,000 Temporary Notes 14,850,000 14,850,000 22,270,000 22,270,000 TOTAL 77,465,000 22,905,000 34,375,000 88,935,000 Revenue Bonds 11,855,000 1,345, ,510,000 TOTAL 11,855,000 1,345, ,510,000 TOTAL DEBT $ 89,320,000 $ 24,250,000 $ 34,375,000 $ 99,445,000 City of Lawrence Total Debt: $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000, $ 75,815, ,240, ,010, ,935, ,445,000 $ J-5

6 BOND AND INTEREST FUND CURRENT DEBT ISSUE ISSUED ESTIMATED Entryway Improvements - ORIGINAL OUTSTANDING AFTER TO BE OUTSTANDING DESIGNATION AMOUNT JAN.1,2002 JAN.1,2002 RETIRED DEC.31,2002 GENERAL OBLIGATION Series N 1,410, , ,000 0 Series O 1,140, , ,000 0 Series P 1,990, , , ,000 Series Q 3,065,000 1,050, , ,000 Series R 2,445,000 1,100, , ,000 Series S 295, ,000 30,000 85,000 Series T 9,240,000 5,665, ,000 4,940,000 Series U 540, ,000 55, ,000 Series V 16,465,000 12,555, ,000 11,670,000 Series W 390, ,000 40, ,000 Series X 2,930,000 1,550, ,000 1,260,000 Series Y 2,900,000 1,895, ,000 1,615,000 Series 1998-A 5,325,000 3,345, ,000 2,850,000 Series 1999-A 4,405,000 3,175, ,000 2,780,000 Series 1999-B 2,110,000 1,745,000 40,000 1,705,000 Series 1999-C 2,505,000 2,335,000 2,145, ,000 Series 2000-A 2,330,000 2,230, ,000 2,120,000 Series 2000-B 2,455,000 2,255, ,000 2,050,000 Series 2000-C 560, ,000 55, ,000 Series 2000-D 4,280,000 4,185,000 35,000 4,150,000 Series 2000-E 4,990,000 4,990, ,990,000 Series 2000-F 8,645,000 8,645, ,645,000 Series 2001-A 2,840,000 2,575, ,000 2,385,000 Series 2001-B 1,420,000 1,420,000 95,000 1,325,000 Series 2002-A 9,070,000 9,070, ,000 8,205,000 Series 2002-B 2,115,000 2,115, ,115,000 Series 2002-c 920, , ,000 Subtotal $ 62,615,000 $ 12,105,000 $ 8,055,000 $ 66,665,000 TEMPORARY NOTES Temp Note 2001-I 10,095,000 10,095,000 10,095,000 Temp Note 2001-II 2,735,000 2,735,000 2,735,000 Temp Note 2001-III 1,710,000 1,710,000 1,710,000 Temp Note 2001-IV 310, , ,000 Temp Note 2002-I 10,185,000 10,185,000 10,185,000 Temp Note 2002-II 11,290,000 11,290,000 11,290,000 Temp Note 2002-III 795, , ,000 Subtotal $ 14,850,000 $ 22,270,000 $ 14,850,000 $ 22,270,000 REVENUE BONDS Series 1992 $ 3,615,000 $ 365,000 $ - $ 365,000 $ - Series ,200,000 1,020, , ,000 Series ,390,000 4,920, ,000 4,685,000 Series ,900,000 5,550, ,000 5,300,000 Subtotal $ 11,855,000 $ - $ 1,345,000 $ 10,510,000 J-6

7 BOND AND INTEREST FUND CURRENT DEBT SERVICE SCHEDULE GENERAL OBLIGATION BONDS AT-LARGE Principal Interest Total 2003 $5,937,060 $2,938,332 $8,875, ,608,335 2,653,563 8,261, ,442,724 2,325,032 8,767, ,876,174 2,025,699 7,901, ,240,340 1,750,129 6,990, ,757,037 1,502,957 6,259, ,408,356 1,282,522 5,690, ,860,490 1,075,955 4,936, ,727, ,392 3,621, ,858, ,778 3,620, ,708, ,632 3,331, ,718, ,759 2,206, ,698, ,766 2,091, ,806, ,322 2,106, , , , ,045, ,740 1,210, ,090, ,085 1,201, ,000 53,175 1,048,175 59,332,773 19,544,533 78,877,306 SPECIAL ASSESSMENT AMORTIZATION SCHEDULE Principal Interest Total 2003 $722,940 $296,420 $1,019, , , , , , , , , , , , , , , , , , , , , , , , , ,806 95, , ,278 81, , ,330 66, , ,983 50, , ,262 34, , ,193 17, ,801 7,332,227 2,056,139 9,388,366 DEBT SERVICE SCHEDULE FOR ALL BONDS Principal Interest Total 2003 $ 6,660,000 $ 3,234,752 $ 9,894, ,335,000 2,919,518 9,254, ,130,000 2,560,004 9,690, ,595,000 2,231,203 8,826, ,875,000 1,927,396 7,802, ,135,000 1,658,072 6,793, ,760,000 1,421,678 6,181, ,225,000 1,200,845 5,425, ,075,000 1,004,302 4,079, ,220, ,772 4,078, ,085, ,154 3,789, ,110, ,230 2,664, ,105, ,583 2,549, ,230, ,860 2,563, , ,303 1,212, ,045, ,740 1,210, ,090, ,085 1,201, ,000 53,175 1,048,175 $ 66,665,000 $ 21,600,672 $ 88,265,672 J-8

8 City of Lawrence General Obligation Debt Service Special Assessment At-Large Debt J-8

9 Capital Improvement Budget Summary J-9

10 CAPITAL IMPROVEMENT BUDGET SUMMARY PURPOSE AND MISSION OF A CAPITAL IMPROVEMENT PROGRAM The following capital budget summary pages list those projects approved by the City Commission to be included in the City's annual Capital Improvement Budget. They are selected from lists of projects and improvements submitted or suggested by the public or various city departments and agencies as part of the Capital Improvement Program. The Capital Improvement Plan is reviewed by the Planning Commission for conformity with the City's Comprehensive Plan. A Capital Improvement Plan is a tool to help City Commissioners look beyond year to year budgeting to determine what, when, where and how future improvements are to take place. At the same time, a Capital Improvement Budget can assist the City in taking advantage of alternative methods of financing, including federal and state grants. Each year, project lists are submitted to the Planning Office and are reviewed based on the comprehensive plan. The projects are then reviewed by the Capital Improvement Administrative Committee, which submits a preliminary program to the Planning Commission. The Planning Commission reviews the preliminary program and then submits a tentative program to the City Commission for consideration. The City Commission either accepts the program with or without amendments, or rejects it. The Capital Improvement Budget is complementary to the City's operating budget. It is a subset of the projects included in the Capital Improvement Plan that are scheduled to be funded. It is reviewed annually so that the needs of the city may be re-evaluated and re-prioritized. The capital improvement program impacts the operating budget in several ways. Capital improvement projects are generally large projects that impact multiple city departments. For example, construction of a new roadway means additional snow removal that must be done, additional area that must be patrolled by police officers, and additional right of way that must be maintained. This can mean budgeting for more staff, equipment, contractual services, etc.. On the following pages, after each section of the "Capital Improvement Budget Summary", additional detail can be found regarding impacts from these projects on the operating budget. Major improvements can also impact revenues. New road improvements can provide access to new commercial and residential developments, which when developed, can increase the property tax base and may generate additional sales tax. MAJOR GOALS AND OBJECTIVES FOR A CAPITAL IMPROVEMENT PROGRAM 1. To forecast public facilities and improvements that will be needed in the near future. 2. To focus attention on and assist in the implementation of established community goals as outlined in the official Comprehensive Plan. 3. To anticipate and project financing needs in order to maximize available federal, state and county funds. 4. To promote sound financial planning and serve as a guide for budgetary decisions. J-10

11 CAPITAL IMPROVEMENT BUDGET SUMMARY CITY AT LARGE PROJECTS Public Building Improvements - Improvements to public buildings are made as needed throughout the year. $450,000 $500,000 $500,000 $550,000 $550,000 Connecting Link Road Projects - The location of these projects is determined each year according to priority. 350, , , , ,000 Major Thoroughfare Improvements - These projects include improvements to those roadways designated as major thoroughfares throughout the City. 650, , , , ,000 Traffic Signal Renovation - Traffic Signals will be repaired and updated as needed throughout the year. 250, , , , ,000 Traffic Signal - Traffic signal will be added as needed, based on recommendation and study by the Traffic Safety Commission. 250, , , , ,000 Public Works Facility Improvements - Improvements to the public works facility on Wakarusa Drive. 250,000 Carnegie Library Building Renovation - These funds will be used to improve the current condition and for renovations necessary to bring it into compliance with ADA and other safety codes. 750,000 ROW costs for 6th Street - City match to KDOT 3,295,000 Fire Station #5 Construction* - This new station will be located at 19th and Iowa, and will allow the department to better serve the growing community on the west and south sides of town when the existing station on Stone Barn Terrace is relocated. 3,345,000 Airport Improvements (FAA match) - These funds will be used at the City's 10% match for FAA funding to rehabilitate Runway 1/19 as well as lighting improvements. 30,000 Quint 1 Replacement - An additional quint (a joint ladder and pump truck) will be needed upon completion of new Station #5 in order to maintain the Quint at Station # Fire Station #1 Remodel - This station, located at 746 Kentucky, was built in 1950 and should be updated to meet the needs of our modern fire and medical department.* ,000 Fire Station #4 Relocation Design/Construction - The Master plan for Fire and Medical service calls for Station #4, located on Stone Barn Terrace to be relocated to city-owned property near the Clinton Water Treatment Plant. 230,000 3,345,000 TOTAL $10,435,000 $5,902,000 $2,400,000 $2,600,000 $2,750,000 On pages J-12 thru J-14, each 2004 project is listed along with the anticipated impact to the City's current and future operating budget. The focus of this additional information is a reasonable quantification of additional costs and/or savings (direct or indirect) or any other service impacts that could result from capital spending. The list does not include projects that will be financed through special benefit districts because the number of projects to be funded through this mechanism is unknown. Matching funds for miscellaneous KDOT funded projects are not included in this summary because the amount of funds necessary are dependent on projects receiving KDOT approval. J-11

12 IMPACT OF CAPITAL IMPROVEMENT PROGRAM ON CITY S OPERATING BUDGET City at Large Capital Improvement Budget 2004 The following projects, funded by general obligation bonds and supported by the Cityat-large, are slated for the 2004 construction year. Included are project costs and any anticipated operating budget and/or related service impacts. Public Building Improvements Project Description: improvements to public buildings as needed. Examples of projects completed in 2003 include upgrades at various fire stations, library improvements, etc. Cost: $450,000 Operating Budget Impact: staff time to develop specs, prepare bid documents, and monitor progress of projects. Connecting Link Road Projects Project Description: The project scheduled for 2004 is the improvement of 6 th Street, form Arizona to Arkansas. Cost: $350,000 Operating Budget Impact: staff time to develop specs, prepare bid documents, and monitor progress of projects. Major Thoroughfare Improvements Project Description: Examples of projects to be completed include the improvement of O Connell Road, from 23 rd to 31 st Street and the extension of George Williams Way, from 6 th Street to Harvard Road. Cost: $650,000 Operating Budget Impact: staff time to develop specs, prepare bid documents, and monitor progress of projects. Traffic Signal Renovation Project Description: A renovation project is scheduled for traffic signals at the intersection of 19 th Street and Louisiana. Cost: $250,000 Operating Budget Impact: staff time to develop specs, prepare bid documents, and monitor progress of projects. Potential for reduced maintenance. New Traffic Signal Installation Project Description: New traffic signals will be added in 2004 as needed, based on recommendations and study by the Traffic Safety Commission. A project slated for 2004 is the installation of a traffic signal at the intersection of 7 th Street and Kentucky. Cost: $250,000 Operating Budget Impact: staff time to develop specs, prepare bid documents, and monitor progress of projects. There will be maintenance requirements for the added signals. J- 12

13 IMPACT OF CAPITAL IMPROVEMENT PROGRAM ON CITY S OPERATING BUDGET City at Large Capital Improvement Budget 2004 Public Works Facility Improvements Project Description: Completion of a revised site plan and additional grading work at the public works facility on Wakarusa Drive. Cost: $250,000 Operating Budget Impact: staff time to develop site plan and perform grading duties inhouse. Projects dependent on the site plan process and coordination with the adjoining Clinton Water Treatment Plant facilities. Carnegie Building Renovation Project Description: Project to improve the current condition (to include renovations necessary to bring building into compliance with ADA etc.) Cost: $750,000 Operating Budget Impact: staff time to work with consultant to develop specs, prepare bid documents, and monitor progress of project. Depending on ultimate use, ongoing maintenance/operating costs may be a City responsibility. ROW Costs for 6 th Street Project Description: City s match to KDOT funding for the acquisition of right-of-way associated with the widening of 6 th Street from Wakarusa Drive west to -10. Cost: $3,295,000 Operating Budget Impact: staff time to describe and obtain appropriate amount of ROW for street improvement project. Fire Station #5 Construction Project Description: Construction of new fire station at 19 th and Iowa. Cost: $3,345,000 Operating Budget Impact: staff time to work with design consultant to review design and specs, provide assistance during construction phase and administration of construction contract. Operating costs are estimated at $50,000 - $75,000 per year. Personnel costs are estimated at $500,000 per year to cover the costs of hiring and maintaining twelve new firefighter positions. Quint 1 Purchase Project Description: Purchase of a Quint 1 (joint ladder and pumper truck) for new station #5. Cost: $550,000 Operating Budget Impact: staff time to develop specs and progress through bidding process. Additional maintenance requirements for operating vehicle will include fuel, oil, service, etc. J- 13

14 CAPITAL IMPROVEMENT BUDGET SUMMARY CITY SHARE OF COUNTY WIDE SALES TAX PROJECTS Park Land Acquisition - Funds will be used to purchase property to be used at park land throughout the year. Bike Trail & Facility Development - funds will be used to construct bike trails and other amenities for bicyclists throughout the year. $0 $300,000 $300,000 $300,000 $300, , , , ,000 Entryway Improvements - landscaping at major traffic entryways to Lawrence and along major traffic medians will be completed throughout the year. 0 50,000 Misc. Maintenance Improvement (system wide) - Improvements will be made to facilities and equipment as necessary throughout the year. 75,000 75,000 75, , ,000 Green Meadows Park - Continued development of a neighborhood park in the Green Meadows subdivision, located at 27th and Crossgate Peterson Park Improvements - Development of a neighborhood park, roller hockey rink, and all year shelter on property donated by Hallmark Cards, Inc. that is located on Peterson Road , ,000 Park Maintenance Facility Improvement - Improvements to the Maintenance facility are made throughout the year as needed , , , Sub-total 75,000 1,225, ,000 1,250, ,000 Debt: Aquatic Center (outdoor) - principal and interest payments on bonds issued for the construction of the facility located on Kentucky Street. 306, , East Lawrence Center - principal and interest payments on bonds issued for the construction of the facility located at 1245 E. 15th Street. 247, , , Health Center/Indoor Aquatic Center - principal and interest payments on bonds issued for construction of the facility located at 4706 Overland Drive. 1,287,000 1,288,000 1,291,000 1,260,000 1,267,690 Adult Softball Complex - principal and interest payments on bonds issued for construction of the facility located at 5101 Speicher Road. 260, , , Sub-total 2,100,000 2,104,000 1,805,000 1,260,000 1,267,690 TOTAL $2,175,000 $3,329,000 $2,730,000 $2,510,000 $2,017,690 On page J-16, the 2004 project is listed along with the anticipated impact to the City's current and future operating budget. The focus of this additional information is a reasonable quantification of additional costs and/or savings (direct or indirect) or any other service impacts that could result from capital spending. J-15

15 IMPACT OF CAPITAL IMPROVEMENT PROGRAM ON CITY S OPERATING BUDGET City Share of County Wide Sales Tax Capital Improvement Budget 2004 Misc. Maintenance Improvements Project Description: System-wide improvements to Parks and Recreation facilities, as necessary, throughout the year. Cost: $75,000 Operating Budget Impact: Project monitoring by staff; potential for reduced maintenance (e.g. major HVAC improvements, plumbing repairs, etc. can reduce the need for frequent minor repairs). J- 16

16 CAPITAL IMPROVEMENT BUDGET SUMMARY STORMWATER UTILITY PROJECTS Minor Misc. System Improvements - Minor projects needed to improve the overall effectiveness of the storm system throughout the year. $150,000 $150,000 $150,000 $150,000 $150,000 Curb/Inlet Repair - Repairs are made as needed throughout the year. 150, , , , ,000 West 20th, Alabama to Naismith - Project will alleviate recurring flooding that results from inadequacy of existing storm sewer generally located on W. 20th Street from Alabama to Naismith. (Phase I, Priority Number 7 in 1996 Master Plan) 416,000 4,160,000 Future Priority 1 Projects: Maple Lane, 19th to Brook - Project will alleviate recurring flooding that results from inadequacy of existing storm sewer generally located on Maple Lane from 19th to Brook Street. (Phase I, Priority Number 9 in the 1996 Master Plan) 2,428,000* 16th, Kentucky to Rhode Island - Project will alleviate recurring flooding that results from inadequacy of existing storm sewer generally located on 16th Street from Kentucky to Rhode Island. (Phase I, Priority Number 10 in 1996 Master Plan) 6,174,000* TOTAL $300,000 $716,000 $4,460,000 $300,000 $300,000 *2002 estimates On page J-18, each 2004 project is listed along with the anticipated impact to the City's current and future operating budget. The focus of this additional information is a reasonable quantification of additional costs and/or savings (direct or indirect) or any other service impacts that could result from capital spending. J-17

17 IMPACT OF CAPITAL IMPROVEMENT PROGRAM ON CITY S OPERATING BUDGET Stormwater Utility Capital Improvement Budget 2004 Minor Misc. System Improvements Project Description: Projects needed to improve overall effectiveness of stormwater system. Cost: $150,000 Operating Budget Impact: Projects performed by contractor would involve project monitoring by staff. In-house projects will require staff time and effort, materials, and equipment for completion. Potential exists for reduced maintenance as a project outcome. Curb and/or Inlet Repairs Project Description: Repairs to curbs and/or inlets, essential components of the stormwater system, as necessary throughout the year. Cost: $150,000 Operating Budget Impact: Projects performed by contractor would involve project monitoring by staff (plan/spec review, inspection, etc.). Potential exists for reduced maintenance as a project outcome, such as fewer spot repairs to curbs and inlet monitoring. J- 18

18 CAPITAL IMPROVEMENT BUDGET SUMMARY WATER UTILITY Source: 1998 Water Treatment Plant Studies & 1998 Water Distribution System Update* PROJECTS Waterline Improvements - Installation of new waterlines are made as needed throughout the year to improve the quality, quantity, and reliability of water. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 Misc. Water System Improvements - general water system improvements and replacements at various water treatment facilities 1,000,000 1,200,000 1,500,000 1,500,000 1,700,000 Water Main Improvement 536/538/554 - The water main on the North side of 6th Street from Wakarusa Dr. to the South Lawrence Trafficway will be installed as part of the 6th Street project. 994,000 Water Main Improvement Also part of the 6th Street project, this parallel line on 6th Street will be installed to improve the quality, quantity and reliability of water in the area. 634,000 Water Main Improvement 18B - The transmission line from Indiana to 8th and Indiana to Kentucky on 8th will be replaced will a larger diameter water line to improve the quality and reliability of water in the area. 1,900,000 Clearwell Improvements - Installation of a clearwell or improvements to the water tower located on Stratford Rd. are necessary to improve water service to the Westhills Pumping Zone. 2,037,000 Throttling Valve - Construction of this valve will provide better operational flexibility and increased hydraulic capacity during high demand periods. Further review is necessary before determining exact construction location however initial reports indicate near 8th and Kentucky. 116,000 Central Service Discharge piping - This distribution system improvement to the Kaw Treatment Plant is necessary to improve water service to East and Southeast Lawrence. 878,000 Clinton Plant Expansion (Phase II) - The Clinton Water Treatment Plant, located on Wakarusa must be expanded to meet future water demands of the growing community. (Phase I was completed in 2002) 1,650,000 Clinton Plant Expansion (Phase III) - This phase will continue the expansion begun in 2000 and will better equip the department to meet customer demand. 9,350,000 TOTAL $3,628,000 $4,100,000 $5,531,000 $4,150,000 $12,050,000 *Black & Veatch is under contract in 2003 to update the Water Master Plan; consequently, many of the projects listed above may change in terms of scope, schedule, and /or estimated cost. On page 20, each 2004 project is listed along with the anticipated impact to the City's current and future operating budget. The focus of this additional information is a reasonable quantification of additional costs and/or savings (direct or indirect) or any other service impacts that could result form capital spending. J-19

19 IMPACT OF CAPITAL IMPROVEMENT PROGRAM ON CITY S OPERATING BUDGET Water Utility Capital Improvement Budget 2004 Waterline Improvements Project Description: Replacement of existing waterlines to improve the quality, quantity, and reliability of water distributed. Cost: $1,000,000 Operating Budget Impact: Projects are performed by contractor. Staff involvement would include selection of design engineer, review of plans/specs, project inspection, and customer service during project. Reduced maintenance, including line flushing, response to customer complaints, and improved system reliability are project outcomes. Projects are selected annually and are typically in older neighborhoods, due to the age of existing infrastructure. Misc. Water System Improvements Project Description: General water system improvements and replacements, such as pump replacements, chemical feed equipment upgrades/replacement, etc. Cost: $1,000,000 Operating Budget Impact: Projects performed by a contractor would involve project monitoring by staff (plan/spec review, inspection, etc.). Potential for reduced frequent day-to-day maintenance on equipment (pumps, chemical feed equipment, etc.). Water Main Improvement 536/538/554 Project Description: Installation of a new 12 water main on the north side of 6 th Street from Wakarusa Drive to the South Lawrence Trafficway (installation as part of the 6 th Street road improvement project). Cost: $994,000 Operating Budget Impact: Project will be performed by a contractor and would involve project monitoring by staff (plan/spec review, inspection, etc.). Increased maintenance costs will include hydrant and valve maintenance for new waterline, GIS system updates and maintenance, etc. 572 Water Main Improvement Project description: Installation of a new 12 water main on the south side of 6 th Street from Wakarusa Drive to the South Lawrence Trafficway (installation as part of the 6 th Street road improvement project). Cost: $634,000 Operating Budget Impact: Project will be performed by a contractor and would involve project monitoring by staff (plan/spec review, inspection, etc.). Increased maintenance costs will include hydrant and valve maintenance for new waterline, GIS system updates and maintenance, etc. J- 20

20 CAPITAL IMPROVEMENT BUDGET SUMMARY WASTEWATER UTILITY Source: 1995 Wastewater System Master Plan and subsequent updates* PROJECTS Inflow/Infiltration Reduction Program - Projects to reduce infiltration and inflow of stormwater into the sanitary sewer system will be done as needed. $768,000 $814,000 $863,000 $915,000 $970,000 General Sanitary Sewer System Improvements- General collection system improvements throughout the City. 608, , , ,000 $767,000 East Hills Business Park Pump Station - Improvement to the existing pump station will accommodate growth in the Industrial Park and residential areas south of Highway 10 and east of O'Connell Rd. 3,269,000 Four Season Pump Station Pump Additions - This increased capacity will serve growth in the west and northwest. 252,000 Wakarusa Pump Station 5C & Force Main - New pump station in the area of 31st and Louisiana with a new force main to the Wastewater treatment plant. 9,342,000 Pinckney Relief Sewers - Projects will help reduce overloading and residential back-ups in the area between 9th and Avalon and Pump Station #16 at 6th and Kentucky. 250,000 Airport Force Main and Pump Station - Addition of pump station and appurtenances will serve the existing airport and future commercial expansion and allow for abandonment of septic systems in the area. 1,900,000 SE Growth Area Sewers, Pump Station & Force Main - A new pump station and force main will be constructed to accommodate growth in the southeast part of town. 4,048,000 Alabama Pump Station & Force Main - A new pump station will be designed and constructed to replace existing Pump Station 8, originally constructed in ,615,000 North Lawrence Pump Station & Force Main - New construction will replace the existing facilities in the area of N. 3rd and North Street as required. 1,954,000 Downtown Relief Sewers -Replacement of aging collection systems with construction of relief sewers for Kansas River subbasin, generally from 6th and Tennessee to 7th and Connecticut. North Lawrence Relief Sewers - Project will relieve sewers expected to exceed capacity in the area along N. 7th between Maple and North Street. 1,415, ,000 Inverness Relief Sewer - Project will relieve sewers expected to exceed capacity in the area of 15th and Inverness in the Wakarusa River subbasin. 1,003,000 Anderson/Haskell Relief Sewers - Project will relieve sewers expected to reach capacity in East Lawrence EL-1subbasin, generally from 27th and Whitmore to 24th and Harper. 284,000 Sherwood Pump Station & Force Main - Project will accommodate growth north of Peterson Road and east of Kasold Drive. 877,000 J-22

21 CAPITAL IMPROVEMENT BUDGET SUMMARY WASTEWATER UTILITY Source: 1995 Wastewater System Master Plan and subsequent updates* PROJECTS CONT. Massachusetts Relief Sewers - Project will increase overall effectiveness of sewer system during certain rain events and relieve sewers generally from 17th and Massachusetts to 13th and Rhode Island and 12th to 11th on New Hampshire. 31 st St./Knights of Columbus Pump Station & Force Main - Replacement of existing facilities in the area of 2206 E. 23rd Street. 841, ,000 Yankee Tank Relief Sewers - Design and Construction of relief sewers from approx. 15th and Foxfire, south and East to 31st and Kasold, to resolve capacity issues and serve impending growth. 4,503,000 North 3 rd St. Pump Station and Force Main- Generally located at N. 3rd and U.S. 24/40, this improvement is in anticipation of industrial growth in the area and increase overall system effectiveness. 775,000 Lakecrest Relief Sewers - These relief sewers will increase capacity and protect the collection system east of Monterey Way and north of Harvard Road. 702,000 Central Basin C-2 - This improvement, between 20th and Ousdahl and 23rd and Alabama, will increase capacity of sewer to meet increased demand. 875, th St. Relief Sewers (10ABC) - This collection system improvement, located generally along Louisiana (20th to 22nd) and 20th St. (Louisiana to Massachusetts), will increase capacity and protect the collection systems facilities. 933,000 TOTAL $16,389,000 $13,207,000 $5,033,000 $6,142,000 $5,022,000 On pages J-23 thru J-24, each 2004 project is listed along with the anticipated impact to the City's current and future operating budget. The focus of this additional information is a reasonable quantification of additional costs and/or savings (direct or indirect) or any other service impacts that could result from capital spending. J-22

22 IMPACT OF CAPITAL IMPROVEMENT PROGRAM ON CITY S OPERATING BUDGET Wastewater Utility Capital Improvement Budget 2004 Inflow/Infiltration Reduction Program Project description: Projects designed to reduce the inflow and infiltration of stormwater into the sanitary sewer system based on system monitoring results and flow data. Cost: $768,000 Operating Budget Impact: Projects are performed by contractors. Staff involvement would include determination of appropriate projects from priority list, selection of design engineer, review of plans/specs, project inspection, and customer service during project. Reduced maintenance, including reduced wear/tear on pump stations (due to reduced flow), fewer responses to customer complaints, and improved system reliability are project outcomes. Projects are selected annually and are typically in older neighborhoods, due to the age of existing infrastructure. General Sanitary Sewer System Improvements Project Description: General sanitary sewer collection system improvements throughout the City. Cost: $608,000 Operating Budget Impact: Projects performed by a contractor would involve project monitoring by staff (plan/spec review, inspection, etc.). Potential for reduced frequent day-to-day maintenance on equipment (pumps, motors, pipe repairs, etc.). East Hills Business Park Pump Station Project description: Improvements to an existing pump station to accommodate growth in the Industrial Park and residential areas south of K-10 and east of O Connell Rd. Cost: $3,269,000 Operating Budget Impact: Project will be performed by contractor and would involve project monitoring by staff (selection of design engineer, review of plans/specs, project inspection, and customer service during the project). Increased maintenance for larger pumps, higher electricity demands, and increased flow at Wastewater Treatment Plant are predicted project outcomes. Four Season Pump Station Pump Additions Project description: Improvements to an existing pump station to accommodate growth in the west and northwest portion of the City. Cost: $252,000 Operating Budget Impact: Project will be performed by contractor and would involve project monitoring by staff (selection of design engineer, review of plans/specs, project inspection, and customer service during the project). Increased maintenance for larger pumps, higher electricity demands, and increased flow at Wastewater Treatment Plant are predicted project outcomes. J- 23

23 Wakarusa Pump Station 5C and Force Main Project description: New pump station and force main to accommodate growth in the west and south expansion of the city. Cost: $9,342,000 Operating Budget Impact: Considerable impact to the operating budget anticipated due to the size and complexity of the pump station. This project will include staff time to provide input during design and construction process, as well as operating costs once station is complete. Operating costs include staff monitoring/maintenance costs, equipment, utilities, and materials. Pinckney Relief Sewers Project description: This project will reduce overloading and surcharging of sanitary sewers in the Pinckney Neighborhood. Cost: $250,000 Operating Budget Impact: Staff effort will be needed to provide input and monitoring during design and construction of the project. Additional lines (relief sewers) will need to become part of the annual line maintenance program. Reductions in numbers of customer complaints and potential property damage claims are potential project outcomes. Airport Force Main and Pump Station Project description: Addition of a pump station, force main, and interior sanitary sewer service lines at the Lawrence Municipal Airport. Cost: $1,900,000 Operating Budget Impact: Staff effort will be needed to provide input and monitoring during design and construction of the project. Additional lines and pump stations to existing sanitary sewer system will increase operating costs. Operating costs include staff monitoring/maintenance costs, equipment, utilities, and materials. Elimination of the existing septic system at the airport will eliminate costs to maintain that system. J- 24