CIP Review Session

2018 2022 CIP Review Session (November 28, 2017) TO: FROM: Governing Body members Eric Wade, City Administrator Doug Robinson, CFO SUBJECT: 2018 2022 Recommended Capital Improvement Program (CIP) We are pleased to submit the FY 2018 2022 Recommended CIP for review and discussion by the Governing Body beginning at a work session on November 28 th. Staff has organized the CIP document in the following sections: Section 1 Executive Summary Section 2 Financial Projections & Outstanding Debt Information Section 3 Detail Information for Funded Projects Section 4 List of Unfunded Projects Section 5 Draft of Revised Debt Policy The total FY 2018 2022 Recommended CIP is $138 million with 32 funded projects. Proposed CIP Review Schedule Staff proposes the following schedule for review and discussion of the CIP: November 28 th Governing Body work session to review CIP December 4 th Planning Commission considers CIP December 19 th Public Hearing on CIP December 19 th or January 2 nd Governing Body adoption of the CIP Staff can adjust this schedule as needed for Governing Body consideration of the CIP. Please contact us if you have any questions on the 2018 2022 Recommended CIP. 1

FY 2018 FY 2022 Recommended Capital Improvement Program (CIP) Executive Summary The recommended FY 2018 FY 2022 CIP is $138 million (including prior year expenditures) and is $100 million lower than the previous CIP due to the completion of several projects, including: the Civic Center campus, 95 th Street and I-35 Interchange, Lenexa Logistics North special benefit districts, and the Mill Creek Road special benefit district. Sources of Funding The debt service property tax rate for the CIP is estimated at approximately 7.94 mills in FY 2018 through FY 2022 (no change from the FY 2017 debt service property tax rate). The property tax revenue generated from the debt service mill levy is used to make principal and interest payments on general obligation debt issues. The funding sources in the recommended CIP are: Funding Sources: FY 2018-2022 CIP General Obligation (includes SBD bonds) $44,022,284 32% General Fund Revenues $30,792,994 22% 3/8-Cent Sales Tax $16,642,845 12% Stormwater General Obligation $12,418,491 9% External Grants $9,702,040 7% Special Highway Fund (Gas Tax) $7,906,700 5% Stormwater Revenues $6,550,878 5% Excise Tax Revenues $3,811,349 3% CARS Program $2,172,000 1% Other $3,768,359 3% Total $137,787,940 100% The general obligation bonds category includes $44 million for street and facility (Fleet Maintenance Facility) projects. Stormwater projects are funded with general obligation bonds ($12.4 million) and Stormwater pay-as-you-go revenues ($6.6 million). In addition, external sources of funding (including the Special Highway Fund, the County Assistance Road System, or CARS program, and grants) finance 15% of the recommended CIP for FY 2018 through FY 2022. Project Information The recommended CIP includes 32 funded capital projects. Three projects comprise over 50% of the recommended CIP: Ridgeview Road Prairie Star Parkway to K10 Highway ($33.2 million) Pavement Management Program ($32 million) Stormwater Infrastructure Replacement ($14.3 million) The uses of funding in the recommended CIP are listed on the next page. 2

FY 2018 FY 2022 Recommended Capital Improvement Program (CIP) Executive Summary Uses of Funding: FY 2018-2022 CIP Streets/Bridges/Traffic Projects $98,027,997 71% Stormwater Projects $18,618,491 13% Facility Projects $12,540,963 9% Parks & Recreation Projects $6,312,989 5% Capital Equipment/Other Projects $2,287,500 2% Total $137,787,940 100% Stormwater Financial Model Staff has updated the stormwater financial model to incorporate the stormwater projects funded in the recommended CIP. For FY 2018 through FY 2022, the stormwater service charge is $109 per equivalent dwelling unit, or EDU. This is the same rate as FY 2017. Debt Amortization The time period for debt amortization varies depending on the type of project. The city s current practices are summarized below: Special benefit districts debt is retired over a period of 10 to 20 years, and debt is repaid by property owners within the benefit district. Stormwater projects debt is retired over a period of 20 years, and debt is repaid by dedicated stormwater revenues. General projects debt is retired over a period of 10 years, except for the Ridgeview Road project (which is retired over a period of 20 years). Final Comments In developing communities like Lenexa, the CIP represents a snapshot in time. As such, it is the best plan that can be formulated today based on the information available. As conditions change, staff anticipates presenting amendments to assure the CIP continues to implement the city s Comprehensive Plan and accomplish the Governing Body s goals. 3

2018-2022 Recommended CIP Sources and Uses of Funding by Year Prior Sources of Funding: Years FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Totals % share General Obligation $2,396,181 $0 $17,650,000 $11,682,603 $0 $6,833,500 $0 $38,562,284 28% Stormwater $0 $1,994,000 $5,344,000 $1,037,391 $2,657,500 $1,385,600 $0 $12,418,491 9% Special Benefit District $0 $0 $5,460,000 $0 $0 $0 $0 $5,460,000 4% General Fund Revenues $3,534,169 $5,856,543 $11,693,031 $3,100,050 $2,034,472 $2,854,928 $1,719,801 $30,792,994 22% Stormwater Revenues $0 $650,878 $1,300,000 $1,325,000 $1,225,000 $1,025,000 $1,025,000 $6,550,878 5% Excise Tax $0 $763,400 $2,116,449 $0 $931,500 $0 $0 $3,811,349 3% TIP Fees $0 $196,805 $274,050 $287,100 $300,150 $157,200 $0 $1,215,305 1% PRIF Fees $59,071 $299,305 $0 $0 $0 $0 $0 $358,376 0% 3/8 cent sales tax $517,635 $4,898,609 $319,000 $2,535,504 $2,611,568 $2,989,916 $2,770,613 $16,642,845 12% County 1/4 cent sales tax $0 $0 $220,000 $0 $0 $0 $0 $220,000 0% Parks Revenues $266,624 $450,000 $0 $25,000 $25,000 $25,000 $25,000 $816,624 1% Subtotal: $6,773,680 $15,109,540 $44,376,530 $19,992,648 $9,785,190 $15,271,144 $5,540,414 $116,849,146 85% External sources of funding: Federal & State Grants $2,814,822 $964,790 $5,278,428 $44,000 $600,000 $0 $0 $9,702,040 7% CARS Program $0 $0 $1,158,000 $1,014,000 $0 $0 $0 $2,172,000 2% SMAC Program $0 $0 $0 $0 $0 $0 $0 $0 0% Special Highway fund (gas tax) $0 $1,282,800 $1,324,780 $1,324,780 $1,324,780 $1,324,780 $1,324,780 $7,906,700 6% Other local funding $0 $958,054 $200,000 $0 $0 $0 $0 $1,158,054 1% Total external sources of funding: $2,814,822 $3,205,644 $7,961,208 $2,382,780 $1,924,780 $1,324,780 $1,324,780 $20,938,794 15% Grand Total Sources of Funding: $9,588,502 $18,315,184 $52,337,738 $22,375,428 $11,709,970 $16,595,924 $6,865,194 $137,787,940 100% 4

2018-2022 Recommended CIP Sources and Uses of Funding by Year Prior Uses of Funding: Years FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Totals % share Streets & Bridges $5,437,400 $12,104,845 $43,627,975 $5,994,334 $6,672,320 $11,910,624 $5,185,194 $90,932,692 66% Traffic $0 $1,151,805 $3,679,050 $667,100 $680,150 $537,200 $380,000 $7,095,305 5% Stormwater $42,113 $4,057,355 $4,938,532 $2,337,391 $3,857,500 $2,385,600 $1,000,000 $18,618,491 14% Facilities $22,600 $1,483,963 $8,240,400 $1,694,000 $500,000 $300,000 $300,000 $12,540,963 9% Parks $1,629,508 $1,973,024 $2,410,457 $0 $0 $300,000 $0 $6,312,989 5% Capital Equipment & Miscellaneous $0 $0 $1,125,000 $0 $0 $1,162,500 $0 $2,287,500 2% Total Uses of Funding: $7,131,621 $20,770,992 $64,021,414 $10,692,825 $11,709,970 $16,595,924 $6,865,194 $137,787,940 100% 5

2018-2022 Recommended CIP Funded Project Expenditures by Year Year Capital Expenditures are Incurred Prj Prior Budget No. Project Title Years 2017 2018 2019 2020 2021 2022 Total STREETS/BRIDGES 60092 Pavement Management Program 0 8,100,000 3,223,189 5,784,334 4,872,200 4,977,124 5,085,194 32,042,041 60041 Bridge Maintenance 0 110,000 100,000 100,000 100,000 100,000 100,000 610,000 60005 K-10 & Lone Elm Interchange Design and ROW Acquisition 3,284,929 68,488 4,130,583 0 0 0 0 7,484,000 60081 Ridgeview Road - Prairie Star Parkway to 99th Street 406,922 214,938 21,590,591 0 0 0 0 22,212,451 60082 Ridgeview Road from K-10 north to 99th Street 1,699,589 879,775 8,429,126 11,008,490 60083 City Center Amenity Zone 45,960 1,007,244 173,514 0 0 0 0 1,226,718 60094 I-435 & 87th Street Parkway Landscaping 0 450,000 450,000 0 0 0 0 900,000 60100 99th Street & Clare Road 0 0 0 0 931,500 6,833,500 0 7,765,000 60095 Westbound 87th Street Right Turn Lane at Northbound I-435 Entrance Ramp 0 0 390,533 0 0 0 0 390,533 60099 95th Street & Santa Fe Trail Drive Intersection Improvements 0 0 74,990 110,000 768,620 0 0 953,610 New (60097) Maurer Road Special Benefit District 0 511,000 3,889,000 0 0 0 0 4,400,000 New (60098) Lone Elm Special Benefit District 0 763,400 1,176,449 0 0 0 0 1,939,849 Subtotal 5,437,400 12,104,845 43,627,975 5,994,334 6,672,320 11,910,624 5,185,194 90,932,692 TRAFFIC 60042 Street Lighting System Replacement 0 680,000 680,000 380,000 380,000 380,000 380,000 2,880,000 60093 LED Streetlight Conversion 0 275,000 2,725,000 0 0 0 0 3,000,000 60090 87th Street Traffic Signals - Scarborough to Winchester 0 196,805 274,050 287,100 300,150 157,200 0 1,215,305 Subtotal 0 1,151,805 3,679,050 667,100 680,150 537,200 380,000 7,095,305 PUBLIC BUILDINGS Fund 73 Facilities Improvements & Maintenance Fund 0 1,483,963 500,000 500,000 500,000 300,000 300,000 3,583,963 Fund 15 Community Center & Senior Center Improvements 22,600 0 370,400 44,000 0 0 0 437,000 80014 City Center Parking Structure (SMSD Aquatics Center) 0 0 1,150,000 1,150,000 0 0 0 2,300,000 80015 Municipal Service Center Fleet Facility 0 0 6,000,000 0 0 0 0 6,000,000 New Public Safety Facility Study 0 0 220,000 0 0 0 0 220,000 Subtotal 22,600 1,483,963 8,240,400 1,694,000 500,000 300,000 300,000 12,540,963 PARKS 70012 Playground Equipment Replacement 1,132,335 47,000 319,000 0 0 300,000 0 1,798,335 70017 Park Entry Signage and Wayfinding 288,431 32,257 290,312 0 0 0 0 611,000 70021 Sar-Ko-Par Trails Park Improvements 79,154 1,821,895 572,965 0 0 0 0 2,474,014 70022 Renner Boulevard (91st to 93rd Street) Mixed Use Trail 29,565 21,895 312,380 0 0 0 0 363,840 70023 Lackman Road (Sar-Ko-Par to 95th & I-435) Mixed Use Trail 100,023 49,977 848,800 0 0 0 0 998,800 New Pool Facility Needs Study 0 0 67,000 0 0 0 0 67,000 Subtotal 1,629,508 1,973,024 2,410,457 0 0 300,000 0 6,312,989 6

2018-2022 Recommended CIP Funded Project Expenditures by Year Year Capital Expenditures are Incurred Prj Prior Budget No. Project Title Years 2017 2018 2019 2020 2021 2022 Total STORMWATER 90049 Traditional Stormwater Infrastructure Replacement 0 2,394,000 3,810,000 2,337,391 2,362,500 2,385,600 1,000,000 14,289,491 90046 Brookwood Place Stormdrainage Improvements 42,113 1,663,355 1,128,532 0 0 0 0 2,834,000 90050 Pflumm & College Stormwater Rehabilitation 0 0 0 0 1,495,000 0 0 1,495,000 Subtotal 42,113 4,057,355 4,938,532 2,337,391 3,857,500 2,385,600 1,000,000 18,618,491 MAJOR CAPITAL EQUIPMENT & MISCELLANEOUS 85037 Command Post Replacement Vehicle 0 0 400,000 0 0 0 0 400,000 10 (2018) Fire Engine/Pumper 0 0 725,000 0 0 0 0 725,000 10 (2021) 75' Elevated Stream/Aerial Ladder Apparatus 0 0 0 0 0 1,162,500 0 1,162,500 Subtotal 0 0 1,125,000 0 0 1,162,500 0 2,287,500 Funded Projects 7,131,621 20,770,992 64,021,414 10,692,825 11,709,970 16,595,924 6,865,194 137,787,940 7

Amount changes for funded projects change from 2017-2021 Amended CIP to Recommended 2018-2022 CIP Amended Recommended Prj 2017-2021 2018-2022 No. Project Title CIP CIP Change Reason for change STREETS/BRIDGES 60087 Pavement Management Program 27,975,915 32,042,041 4,066,126 $2.2 in CARS funding and increase in funding from Capital Improvement Fund 60041 Bridge Maintenance 610,000 610,000 0 No change 60005 K-10 & Lone Elm Interchange Design and ROW Acquisition 7,484,000 7,484,000 0 No change 60043 95th Street & I-35 Interchange 12,126,954 0-12,126,954 Project complete 60081/60082 Ridgeview Road 33,220,941 33,220,941 0 No change 60083 City Center Amenity Zone 1,226,718 1,226,718 0 No change 60086 Lenexa Logistics Center North SBD - Mill Creek Road 3,460,000 0-3,460,000 Project complete 60088 Mill Creek Road Improvements SBD (Fairways at City Center) 3,140,000 0-3,140,000 Project complete 60091 Winchester Street & Civic Center Amenity Zone 900,000 0-900,000 Project complete 60089 Britton Street Extension Improvement District - Special Benefit District 1,513,349 0-1,513,349 Project complete 60094 I-435 & 87th Street Parkway Landscaping 900,000 900,000 0 No change 60100 99th Street & Clare Road 7,765,000 7,765,000 0 No change 60095 Westbound 87th Street right turn lane at Northbound I-435 Entrance 390,533 390,533 0 No change ramp 60099 95th Street & Santa Fe Trail Drive Intersection Improvements 953,610 953,610 0 No change New/60097 Maurer Road Special Benefit District 0 4,400,000 4,400,000 New special benefit district New/60098 Lone Elm Road Special Benefit District 0 1,939,849 1,939,849 New special benefit district Subtotal 101,667,020 90,932,692-10,734,328 TRAFFIC 60042 Street Lighting System Replacement 3,980,000 2,880,000-1,100,000 Street light maintenance funds moved to General Fund in 2019-2022. Street light replacment funds retained in CIP. 60090 87th Street Traffic Signals 400,000 1,215,305 815,305 2017 included Penrose signals 60093 LED Streetlight Conversion 3,000,000 3,000,000 0 No change Subtotal 7,380,000 7,095,305-284,695 PUBLIC BUILDINGS Fund 73 Facilities Improvements & Maintenance Fund 3,115,001 3,583,963 468,962 Unspent funding carried over from previous years 80008-80013 Lenexa Civic Center 75,400,000 0-75,400,000 Project complete Fund 15 Community Center and Senior Center Improvements 437,000 437,000 0 No change 80014 City Center Parking Structure (SMSD Aquatics Center) 4,600,000 2,300,000-2,300,000 Only show City portion of project 80015 Municipal Service Center Fleet Facility 6,000,000 6,000,000 0 No change 80016 Civic Center - Park University Tenant Finish 520,000 0-520,000 Project complete New Public Safety Facility Study 0 220,000 220,000 New project Subtotal 90,072,001 12,540,963-77,531,038 PARKS 70012 Playground Equipment Replacement 1,798,335 1,798,335 0 No change 70014 Park Shelter and Restroom Improvements 1,140,323 0-1,140,323 Funding combined with Sar-Ko-Par Trails Park Improvements. 70017 Park Entry Signage and Wayfinding 611,000 611,000 0 No change 70021 Sar-Ko-Par Trails Park Improvements 2,474,014 2,474,014 0 No change 70022 Renner Blvd (91st to 93rd) Multi Use Trail 363,840 363,840 0 No change 70023 Lackman Road (Sar-Ko-Par to 95th & I-435) Mixed Use Trail 1,273,750 998,800-274,950 Project split into phases 70024 City Center Trail and Pond Improvements 575,093 0-575,093 Project complete New Pool Facility Needs Study 0 67,000 67,000 New project Subtotal 8,236,355 6,312,989-1,923,366 8

Amount changes for funded projects change from 2017-2021 Amended CIP to Recommended 2018-2022 CIP Amended Recommended Prj 2017-2021 2018-2022 No. Project Title CIP CIP Change Reason for change STORMWATER 90044 Traditional Stormwater Infrastructure Replacement 16,487,835 14,289,491-2,198,344 90046 Brookwood Place Stormdrainage Improvements 2,069,000 2,834,000 765,000 Eliminate inflation factor in future years. Added Brookwood Phase II (87th Street to 83rd Street from I-435 to Allman) 90047 Lenexa Logistics Center North SBD - Stormwater 4,970,000 0-4,970,000 Project complete 90050 Pflumm & College Stormsewer Rehabilitation 1,495,000 1,495,000 0 No change Subtotal 25,021,835 18,618,491-6,403,344 MAJOR CAPITAL EQUIPMENT & MISCELLANEOUS 85021 Video Cameras, Upgrade and Integrate Video Control System 1,302,719 0-1,302,719 Project complete 85036 SCBA Fleet Replacement 1,024,000 0-1,024,000 Project complete 85037 Command Post Replacement Vehicle 325,000 400,000 75,000 Revised cost estimate 10 (2017) Fire Engine/Pumper 704,000 0-704,000 Project complete 10 (2018) Fire Engine/Pumper 742,500 725,000-17,500 Revised cost estimate 10 (2021) 75' Elevated Stream/Aerial Ladder Apparatus 1,162,500 1,162,500 0 No change Subtotal 5,260,719 2,287,500-2,973,219 Funded Projects 237,637,930 137,787,940-99,849,990 9

FY 2018 FY 2022 Multi-year Financial Models (Updated November 2017) Introduction Staff has updated the multi-year financial models for the Debt Service Fund and Stormwater Fund to incorporate the final approved budget for FY 2018 and the recommended CIP for FY 2018 FY 2022. The financial models continue to reflect structural balance (projected revenues equal or exceed projected expenditures) for the Debt Service Fund and Stormwater Fund beginning in FY 2019. Financial Model Assumptions Staff has summarized the major financial assumptions for the models in the table below. FY2018 FY2019 FY2020 FY2021 FY2022 Assessed Value % change 6.1% 6.1% 5.2% 4.8% 4.3% Debt Service Fund mill levy 7.937 7.937 7.937 7.937 7.937 Estimated property tax delinquency rate 3% 3% 3% 3% 3% Stormwater Equivalent Dwelling Unit 3% 2% 1% 1% 1% (EDU) % change Stormwater EDU annual fee $109 per EDU $109 per EDU $109 per EDU $109 per EDU $109 per EDU Debt Service Fund Financial Model Staff has updated the Debt Service Fund projections to include the estimated debt service necessary to finance projects funded with debt in the recommended FY 2018 FY 2022 CIP. 10

The Debt Service Fund financial model reflects a deficit of $1.7 million in FY 2018 and structural balance beginning in FY 2019 (due to the retirement of bonds in FY 2018 originally issued in FY 2003). The ending Debt Service Fund reserve ranges from 26% to 47% of projected debt service expenditures ($3.6 to $6.7 million). The reserve policy requires a reserve of 10% to 20% of debt service expenditures. The estimated surplus amount of $1.7 million in 2022 would be sufficient to cover debt service on a $14.5 million bond issue retired over 10 years or a $24 million bond issue retired over 20 years (based on the current interest rate environment). Stormwater Fund Financial Model Staff has updated the Stormwater Fund projections to include the estimated debt service necessary to finance stormwater projects funded with debt in the recommended FY 2018 FY 2022 CIP. The Stormwater Fund financial model reflects a deficit of $1 million in FY 2018 and structural balance beginning in FY 2019 (due to the retirement of bonds in FY 2018 originally issued in FY 2003). The ending Stormwater Fund reserve ranges from 16% to 17% of projected revenues ($1.1 to $1.2 million). The reserve policy requires a reserve of 10% to 20% of Stormwater Fund revenues. 11

Final Comments The financial model projections are based on a number of assumptions which continue to change as time passes. The City can control some of the assumptions while others cannot be controlled and are difficult to predict. Overall, the projections are a tool to illustrate the impact of policy alternatives and to highlight potential financial issues in future years. 12

Recommended FY 2018 - FY 2022 CIP Debt Statistics General Obligation - non-stormwater 2018 2019 2020 2021 2022 Principal Balance - beginning of year 108,720,325 123,633,349 128,238,991 115,890,561 110,248,266 Principal Payments 11,910,325 11,476,961 12,348,430 12,475,795 12,346,252 New Debt Issued 26,823,349 16,082,603 0 6,833,500 0 Principal Balance - end of year 123,633,349 128,238,991 115,890,561 110,248,266 97,902,014 Stormwater General Obligation Principal Balance - beginning of year 21,369,675 30,673,000 29,523,871 29,872,704 28,842,018 Principal Payments 3,004,675 2,186,520 2,308,667 2,416,286 2,501,420 New Debt Issued 12,308,000 1,037,391 2,657,500 1,385,600 0 Principal Balance - end of year 30,673,000 29,523,871 29,872,704 28,842,018 26,340,598 BOND TOTALS Principal Balance - beginning of year 130,090,000 154,306,349 157,762,862 145,763,265 139,090,284 Principal Payments 14,915,000 13,663,481 14,657,097 14,892,081 14,847,672 New Debt Issued 39,131,349 17,119,994 2,657,500 8,219,100 0 Principal Balance - end of year 154,306,349 157,762,862 145,763,265 139,090,284 124,242,612 General Obligation Notes (temporary financing for Special Benefit Districts) Balance - beginning of year 11,100,000 4,400,000 0 0 0 Principal Payments 12,160,000 4,400,000 0 0 0 New Notes Issued 5,460,000 0 0 0 0 Balance - end of year 4,400,000 0 0 0 0 General Obligation Debt Totals Principal Balance - beginning of year $141,190,000 $158,706,349 $157,762,862 $145,763,265 $139,090,284 Principal Payments $27,075,000 $18,063,481 $14,657,097 $14,892,081 $14,847,672 New Debt Issued $44,591,349 $17,119,994 $2,657,500 $8,219,100 $0 Principal Balance - end of year $158,706,349 $157,762,862 $145,763,265 $139,090,284 $124,242,612 RATIO Calculations Estimated Market Value of Tax Base $6,724,784,976 $7,128,272,075 $7,484,685,679 $7,858,919,963 $8,173,276,762 Outstanding Debt as a % of Tax Base 2.4% 2.2% 1.9% 1.8% 1.5% 13

ANNUAL PAVEMENT MANAGEMENT PROGRAM The annual Pavement Maintenance Program will maintain roadways during their useful life (Pavement Condition Index above 55). Current maintenance procedures include curb & gutter replacement, crack sealing, micro seals, mill & overlay and asphalt surface replacement using ultra-thin bonded asphalt surface (UBAS). In an effort to maintain quality roadways, the takes a proactive approach to pavement maintenance. Using the GBA Street Master Pavement Maintenance Program, we are able to evaluate alternative maintenance techniques, such as crack sealing, slurry seal, and mill & overlay to create a cost effective program. $75,000 will be dedicated towards maintenance of trails. Funding sources include $25,000 each from Stormwater, Parks and Pavement Maintenance Program. Various locations throughout Lenexa In-house Construction Timeline 2018-2022 $32,042,041 Legend Stephen Mustain, Pavement/Asset Management Technician smustain@lenexa.com 913.477.7658 14

ANNUAL BRIDGE MAINTENANCE Without routine maintenance, the useful life of Lenexa s bridges will be significantly shortened. The is required to have all 26 bridges inspected biennially and report to the Kansas Department of Transportation. A bridge is defined as a structure or reinforced concrete box with an overall width (measured along the centerline of the roadway) exceeding 20 feet. Our consultant has identified a number of maintenance needs to keep our bridges safe and to extend their useful life. Specific improvements include: expansion joint repairs, crack sealing, guardrail repair, and scour protection. Various locations throughout Lenexa In-house Construction Timeline 2018-2022 $610,000 Legend Tim Green, City Engineer tgreen@lenexa.com 913.477.7661 15

K-10 HIGHWAY & LONE ELM ROAD DESIGN AND R.O.W. ACQUISITION This project represents an integral component to further development within the City as outlined in the Western Lenexa Study completed in 1997. Design of the interchange at Lone Elm and K-10 with over 2 miles of continuous auxiliary lanes between the new K-10 at Lone Elm interchange and the existing K-7 interchange and the Woodland Road interchange. The plan includes widening of approximately 4,600 feet of Lone Elm to a fourlane arterial street section from 101st Street north of K-10 to 2,600' south of K-10, plus realignment of the frontage road in the southwest quadrant of the interchange to intersect with Lone Elm approximately 1,200' south of the interchange. This project also includes right-of-way acquisition costs. K-10 & Lone Elm Road Burns & McDonnell Construction Timeline Future $7,484,000 Funding Sources Steve Schooley, Transportation Manager sschooley@lenexa.com 913.477.7662 16

RIDGEVIEW ROAD PHASES 1 & 2 Construction of Ridgeview Road to open land for new development. The project will be financed by General Obligation bonds, the Capital Improvement Fund, Excise Tax, and private funding. A portion of the General Obligation bonds will be repaid with Tax Increment Financing (TIF) revenues. Work includes constructing Ridgeview Road as a four-lane divided arterial roadway with concrete curb and gutter, asphalt surfacing, storm drainage infrastructure, and intersection improvements from Prairie Star Parkway to K- 10. Ridgeview Road from Prairie Star Parkway south to K-10 HNTB To be awarded to the Design/Build Team presenting the best value. Construction Timeline 2018-2019 $33,220,941 Legend Tim Green, City Engineer tgreen@lenexa.com 913.477.7661 17

CITY CENTER STREET AND SIDEWALK AMENITY ZONE The amenity zone and street lighting adjacent to the Lexmark Enterprise Software buildings and Renner89 building are being installed as part of the 89 th Street/Penrose Lane Street Improvement project. This proposed project will complete work along the remainder of 89 th Street/Penrose Lane. Provide pedestrian street lighting, sidewalk, amenity zone, and landscaping along 89 th Street/Penrose Lane from 87 th Street Parkway to Hampton Street. Penrose Lane from 87 th Street Parkway to Hampton Street George Butler Associates MEGA Industries Construction Timeline 2017-2018 $1,226,718 Legend Ben Clark, bclark@lenexa.com 913.477.7685 18

87 TH STREET PARKWAY AND I-435 LANDSCAPING IMPROVEMENTS This development will enhance the most visible portion of City Center's access and provide way finding for visitors. This project will provide landscape improvements and signage/way finding for the access point into City Center. 87 th Street Parkway and I-435 Indigo Design Construction Timeline 2017-2018 $900,000 Legend ` Logan Wagler, Deputy Parks & Recreation Director lwagler@lenexa.com 913.477.7140 19

99 TH STREET & CLARE ROAD IMPROVEMENTS To facilitate development of new residential subdivisions. Construct 99th Street as a four-lane, divided roadway from the current end-of-pavement (EOP) at 98th Street easterly 2,550' to future Clare Road. In addition, the project would construct Clare Road from the current EOP at 97th Terrace southerly 1,350' to the proposed 99th Street extension. Clare Road would require grading for the ultimate four-lane section, but only constructing the eastern-most two-lanes of asphalt at this time. 99th Street & Clare Road Construction Timeline 2021 $7,765,000 Legend Tim Green, Deputy Community Development Director / City Engineer tgreen@lenexa.com 913.477.7661 20

87 TH STREET PARKWAY & NB I-435 ENTRANCE RAMP IMPROVEMENTS Due to development west of I-435, westbound 87th Street Parkway traffic volumes continue to grow. The addition of a right turn lane on 87th Street Parkway at the northbound I- 435 entrance ramp will remove turning vehicles from the through lanes and increase the capacity of the intersection. Addition of a right turn lane along westbound 87th Street Parkway at the northbound I-435 entrance ramp. Work includes new concrete curb and gutter; asphalt pavement; storm drainage system; and relocation of existing 10' trail and street lights. 87 th Street Parkway & I-435 Schlagel Construction Timeline 2018 $390,533 Legend Tim Green, Deputy Community Development Director / City Engineer tgreen@lenexa.com 913.477.7661 21

95 TH STREET & SANTA FE TRAIL DRIVE INTERSECTION IMPROVEMENTS There are currently several operational issues with this intersection. Heavy right turning movements cause excessive congestion and delay. Driveway access is too close to the intersection causing conflicts that negatively impact the operation. One drive will be relocated and the other will be restricted to right-in/right-out. There are also no current accommodations for bicycles through the intersection. Work will include southbound, eastbound and westbound right turn lanes, extending the storage length of the eastbound left turn lane, restricting an access drive to rightin/right-out to minimize conflicts, replace the traffic signal, ADA ramps and accessible pedestrian signals on all approaches, relocation of drive approach to minimize conflicts through the intersection, and extension of a mixed use trail along the north side of the intersection. 95 th Street & Santa Fe Trail Drive Construction Timeline 2020 $953,610 Legend Lenexa, Kansas 6621 Paula Parke, Traffic Engineer pparke@lenexa.com 913.477.7687 22

MAURER ROAD SPECIAL BENEFIT DISTRICT Maurer Road extension will provide access to the new Sonoma Plaza, which includes retail, restaurants, grocery, and apartments. In addition, 87th Street Parkway will be widened to accommodate the additional traffic generated from the development. Northbound Loiret Boulevard will tie in to Maurer Road and provide a full access signal at 87th Street Parkway. Loiret will become a right-in, right-out at 87th Street Parkway. Construct Maurer Road as a multi-lane arterial roadway from 87th Street Parkway to Loiret Boulevard. Widening of 87th Street Parkway will include auxiliary turn lanes, traffic signal improvements at 87 th Street Parkway & Maurer; and median construction on 87th Street Parkway at Loiret. 87 th Street Parkway & Maurer Road Construction Timeline 2018 $4,400,000 Legend Matt Just, Engineer II mjust@lenexa.com 913.477.7732 23

LONE ELM ROAD SPECIAL BENEFIT DISTRICT Construction of Lone Elm Road opens the area for proposed development. A collector road starting at the northern terminus of Lone Elm Road and extending north a distance of approximately 2,200 linear feet. This road shall be constructed as a two lane, twenty-eight (28) foot wide street from back-of-curb to back-of-curb and including concrete curb and gutter and sidewalks, asphalt pavement, street lighting, landscaping, associated utility relocation and associated appurtenances. Lone Elm Road north of 95 th Street Phelps Engineering Construction Timeline 2017-2018 $1,939,849 Legend Matt Just, Engineer II mjust@lenexa.com 913.477.7732 24

ANNUAL STREET LIGHT REPLACEMENT PROGRAM In 2009, the ended its lease of and purchased 2,437 street lights from Kansas City Power & Light. Purchasing them outright instead of leasing them led to a cost savings which funds this program. Over time, old and functionally deficient lights will be replaced modern, energy-efficient ones. Most of the street lights purchased from Kansas City Power & Light are over 30 years old, were installed under different standards, and have exceeded their expected service life. This program will gradually replace older lights with new, energy-efficient lights meeting current standards. Various locations throughout Lenexa In-house Installation Timeline 2018-2022 $2,880,000 Legend Steve Schooley, Transportation Manager sschooley@lenexa.com 913.477.7662 25

LED STREET LIGHT CONVERSION PROGRAM The replacement of street lights with LED's will result in significant energy savings with a payback of about 5-6 years. LED lights also provide a more desirable white light. Replace existing HID lights with more energy efficient LED lights. Various locations throughout Lenexa In-house Facility Solutions Group Installation Timeline 2017-2018 $3,000,000 Legend Paula Parke, Traffic Engineer pparke@lenexa.com 913.477.7687 26

87 TH STREET PARKWAY TRAFFIC SIGNAL IMPROVEMENTS Due to increased traffic, it has been determined that the signal is needed in order to support growth and development in the City Center area. The original project included the design and construction of a traffic signal at eastbound 87th Street and Penrose Lane and also included the final signal design of the remaining seven (7) intersections on 87th Street from Scarborough to Winchester. The amended project now includes a schedule over the next several years to install the remaining seven (7) traffic signals along 87th Street from Scarborough to Winchester at a rate of two traffic signals per year. 87 th Street Parkway from Scarborough to Winchester Construction Timeline 2017-2021 $1,215,305 Legend Paula Parke, Traffic Engineer pparke@lenexa.com 913.477.7687 27

ANNUAL FACILITIES IMPROVEMENTS AND MAINTENANCE To prolong the useful life of our infrastructure, reduce operational costs, and protect stakeholders investments. Funding for maintenance and improvement of all Cityowned facilities, including parks. Includes: interior and exterior, site parking, roofing, deferred maintenance for equipment replacement, heating, ventilation, and air conditioning (HVAC). Various locations throughout Lenexa In-house Construction Timeline 2018-2022 $3,583,963 Legend Nick Arena, Municipal Services Director narena@lenexa.com 913.477.7810 28

COMMUNITY / SENIOR CENTER FEASIBILITY STUDY AND IMPROVEMENTS Senior and low income persons are the main focus of CDBG monies. Necessary renovations to the Community/Senior Center will be prioritized and implemented with available funding available through the CDBG program. The Senior Center/Community Center Rehabilitation project includes a feasibility study for the repurposing of the existing Community Center facility to accommodate senior activities, including ADA upgrades. Walnut Street & Pflumm Road Construction Timeline 2018-2019 $437,000 Legend Danielle Dulin, Assistant to the City Administrator ddulin@lenexa.com 913.477.7553 29

LENEXA CITY CENTER PARKING STRUCTURE The parking structure will provide additional public parking for the City Center development area, including City Hall and the Rec Center. The City will pay 50% of the cost ($2,300,000) of the parking structure and the Shawnee Mission School District will pay the remaining 50% ($2,300,000). Construction of a public parking structure to serve the new Shawnee Mission School District Aquatics Facility and the City Center neighborhood. 87 th Street Parkway & Winchester Street ACI Boland JE Dunn Construction Construction Timeline 2018-2019 $2,300,000 Legend Todd Pelham, Deputy City Administrator tpelham@lenexa.com 913.477.7556 30

MUNICIPAL SERVICES FLEET MAINTENANCE FACILITY The current fleet maintenance facility is inadequate to serve the needs of the city due to its insufficient size and configuration. During times of inclement weather, routine maintenance and emergency service work are very challenging for maintenance staff due to no lifting capability outside of the building and with mechanics required to work on the ground and inadequate light levels. The new facility will include new maintenance bays, office area, break room, parts room, storage area and an automotive paint shop. This facility will be responsible for all maintenance and repair of the entire fleet and small equipment for the. 7700 Cottonwood Street Construction Timeline 2018 $6,000,000 Legend Nick Arena, Municipal Services Director narena@lenexa.com 913.477.7810 31

PUBLIC SAFETY FACILITY STUDY Public Safety space needs have increased since the current Police Station was constructed. This study will determine how to best meet the facility requirements for public safety activities. Feasibility study to determine potential remodel of the old City Hall, Municipal Court and Police Department building at 87th Street Parkway and Monrovia (including potential construction of new Police Station and Fire Station). 87 th Street Parkway & Monrovia Street Timeline 2018 $220,000 Funding Sources Todd Pelham, Deputy City Administrator tpelham@lenexa.com 913.477.7556 32

ANNUAL PLAYGROUND EQUIPMENT REPLACEMENT Replace playground equipment at various parks due to its age and safety. Playground has a useful life-span and eventually has to be replaced. This project continues replacement of equipment on a rotating basis according to the replacement schedule. 2018 - Gillette Park, McNearney Park, Sar-Ko-Par Trails West and Heritage Forest. 2018 - Gillette Park, McNearney Park, Sar-Ko-Par Trails West and Heritage Forest. Construction Timeline 2018-2021 $1,798,335 Funding Sources Logan Wagler, Deputy Parks & Recreation Director lwagler@lenexa.com 913.477.7140 33

PARKS / GATEWAY ENTRY SIGNAGE AND WAYFINDING Identified by the Parks Master Plan and according to the signage study completed in 2012, replace signage according to schedule. This is a phased approach and would reduce maintenance costs on signage and create consistent branding and way finding throughout the park system and city. 2017 completed Phase III which finishes all existing parks and trail signs. This includes 2 large, 5 medium, and 23 single column signs. Replace aging and outdated park signage throughout the park's system. Signage, way finding, and branding is in the top priorities identified in the Parks, Recreation, and Open Space Master Plan. Various locations throughout Lenexa Indigo Design Construction Timeline 2014-2018 $611,000 Funding Sources Logan Wagler, Deputy Parks & Recreation Director lwagler@lenexa.com 913.477.7140 34

SAR-KO-PAR TRAILS PARK IMPROVEMENTS As the central point of the park, this space will be repurposed for a large shelter/pavilion and additional parking. This project will also replace the park restroom that serves this area of the park. And improve the connections between the playground, new pavilion, and pond. Demolition of the Rose House, garage, and surrounding amenities; complete improvements for this area of the park identified in the Sar-Ko-Par Trails Park Master Plan. 87 th Street Parkway & Lackman Road Indigo Design Mega Industries Construction Timeline 2015-2018 $2,474,014 Funding Sources Logan Wagler, Deputy Parks & Recreation Director lwagler@lenexa.com 913.477.7140 35

RENNER BOULEVARD MIXED-USE BIKE/HIKE TRAIL Recent construction of the Prairie Creek Center which built the trail from 95 th Street/Prairie Star Parkway to their north property line has made it necessary to continue construction of bicycle/pedestrian infrastructure. With recent activity at Lenexa City Center, along with the planned construction of the City Center Mixed-Use Bike/Hike Trail, this segment of trail is needed to ensure a major connection between Prairie Star Parkway and 87 th Street Parkway is made. Provide a key missing segment of the mixed-use bike/hike trail system on Renner Boulevard and work toward completing the connection between 87 th Street Parkway and Prairie Star Parkway. Renner Boulevard from 91 st Street to 93rd Street Shafer, Kline & Warren Construction Timeline 2018 $363,840 Funding Sources Ben Clark, bclark@lenexa.com 913.477.7685 36

LACKMAN ROAD MIXED-USE BIKE/HIKE TRAIL PHASE 1 This project will provide a key missing segment of the mixed-use trail system on 95th Street. This segment will allow continuous trail access to Mill Creek, City Center, Sar- Ko-Par and the Little Mill Creek trail system. This project will construct a 10' wide, concrete mixed-use trail with retaining walls, drainage structures and other appurtenances. 95 th Street from Lackman Road to Loiret Boulevard Shafer, Kline & Warren Construction Timeline 2018 $998,800 Funding Sources Ben Clark, bclark@lenexa.com 913.477.7685 37

POOL FACILITIES STUDY Currently, the city has three outdoor aquatic facilities and one indoor aquatic facility. Two of the outdoor pools are aging and in need of repairs and updates. This study will determine the appropriate need for indoor/outdoor aquatic facilities. Feasibility study to determine the need for outdoor and indoor aquatic facilities for the citizens of Lenexa. Indian Trails Aquatic Center, Lenexa Rec Center, Ad Astra Pool, and Flat Rock Creek Pool Construction Timeline 2018 $67,000 Legend Logan Wagler, Deputy Parks & Recreation Director lwagler@lenexa.com 913.477.7140 38

ANNUAL STORMWATER INFRASTRUCTURE REPLACEMENT The City has over 60 miles of corrugated metal pipe (CMP) allowed for stormwater infrastructure due to a previous storm drainage standard that Lenexa and many cities around the country employed for several decades. Lenexa no longer allows CMP for storm drainage due to its susceptibility to corrosion. The City completed its first Condition Assessment of pipes and storm boxes in 2005 and stormwater crews continually update the database. Numerous pipes and the catch basins that connect them are in need of immediate replacement. Others require ongoing proactive maintenance. This project addresses this significant issue in a systematic way over several years. This project reflects the ongoing replacement of CMP and the catch basins that connect them, primarily in eastern Lenexa. Various locations throughout Lenexa Construction Timeline 2018-2022 $14,289,491 Funding Sources Tom Jacobs, Stormwater Engineer tjacobs@lenexa.com 913.477.7644 39

BROOKWOOD PLACE STORM DRAINAGE IMPROVEMENTS This storm drainage system has reached the end of its useful life. Rehabilitation of existing storm drainage system. Routine inspections by staff have identified many pipes in this area that have reached the end of their useful life. Project will include pipe lining and replacement to bring the entire system to an acceptable level of service. East of Maurer Road and west of Lackman between 83 rd Street and 87 th Street Renaissance Infrastructure Consulting Construction Timeline 2017-2018 $2,834,000 Funding Sources Tom Jacobs, Stormwater Engineer tjacobs@lenexa.com 913.477.7644 40

COLLEGE & PFLUMM STORM DRAINAGE IMPROVEMENTS This storm drainage system has reached the end of its useful life. Replacement and rehabilitation of large corrugated metal pipe that began to fail in 2015. Emergency repairs were made at that time but the remainder of the pipe needs to be evaluated and repaired. Northeast corner of the College Boulevard & Pflumm Road Construction Timeline 2020 $1,495,000 Funding Sources Tom Jacobs, Stormwater Engineer tjacobs@lenexa.com 913.477.7644 41

POLICE MOBILE COMMAND POST There is a critical need that the has for a Command Post: one that will be a shared resource within the City and one that is capable of being used to facilitate effective and coordinated response to an emergency or other incident and thereby aid in the proficient use of resources. Being able to respond to emergencies and disasters in a coordinated and efficient manner is critical since these situations can cause severe disruptions in normal operations and communications. This capital investment is for the vehicle only and not the equipment contained therein. Funding of equipment will come from 911 Fee Funds. Mobile Command Post outfitted with radio dispatch area, conference area, work stations, video monitoring capabilities and backup/side monitoring surveillance system. Chassis and length to be determined. Lenexa Police Department Purchase Timeline 2018 $400,000 Funding Sources Maj. Dawn Layman, Police dlayman@lenexa.com 913.825,8042 42

FIRE ENGINE/PUMPER CLASS A This apparatus replaces fleet #9202, a 2008 class A engine/pumper. Apparatus #9202 will be reassigned to reserve status and fleet #929 (1991 class A engine / pumper) is recommended for trade-in. This purchase helps to ensure a safe, efficient, and effective fire apparatus fleet that is necessary for fire operations at commercial, industrial, and residential occupancies. 1,250 GPM, class A engine/pumper fire apparatus with 750-gallon water tank. Fire Station #3 Purchase Timeline 2018 $725,000 Funding Sources Battalion Chief Rick DeVries, Fire rdevries@lenexa.com 913.477.7925 43

FIRE ENGINE WITH AERIAL LADDER To maintain a high quality fleet of both front-line and reserve apparatus it is recommended that each fire apparatus be assigned to 8-10 years of front line service and 8-10 years of reserve service. Delaying this apparatus replacement program will negatively affect front-line and reserve apparatus quality and reliability. This requested apparatus replaces fleet #9501, a 2011 class A pumper / engine with 75' aerial ladder. This unit will be reassigned to reserve status and fleet # 953 (2003 Engine / Pumper with 75 aerial ladder) is recommended for trade-in. 1,500 GPM Class A Engine/Pumper with 75' Aerial Ladder. Fire Station #5 Purchase Timeline 2021 $1,162,500 Funding Sources Battalion Chief Rick DeVries, Fire rdevries@lenexa.com 913.477.7925 44

FY 2018 - FY 2022 CIP: Unfunded Projects Estimated costs shown include design, right-of-way acquisition, utility relocation, construction and inspection services. Design Project design entails surveying, preparation of right-of-way and easement documents, plan preparation, and bidding documents. Right-of-way Acquisition Purchase of right-of-way and easements necessary for access and construction of projects Utility Relocation Major construction projects often conflict with existing utilities such as waterlines, gas, electric, telecommunications, and fiber. Utilities within existing right-of-way are required to relocate at no cost to the city under approved franchise agreements. However, the city is responsible for relocation of utilities within private easements. Construction Work includes grading, curb, pavement, bridges, storm drainage facilities, signals, sidewalks and other necessary appurtenances. Inspection Services The city maintains full-time construction observation to inspect, document, and provide material testing during construction. Project Title Estimated STREETS/BRIDGES Priority - High Ridgeview Road from Prairie Star Parkway to 87th Street $19,740,000 Gleason Road, Prairie Star Parkway south 850' (School entrance - SBD) $1,520,750 K-10 & Lone Elm Road Interchange Construction Phase 1 (north ramps) $15,000,000 Costs K-10 & Lone Elm Road Interchange Construction Phase 2 (includes overpass and south ramps) $34,800,000 Pavement Reconstruction $12,675,440 Quivira Road, 91st Street to 95th Street $7,122,000 Priority - Medium 83rd Street (K-7 to Mize Boulevard) $13,048,000 Renner Boulevard from 84th Street to 79th Street $3,645,690 101st Street/Woodsonia from Prairie Star Pkwy to Prairie Creek Road $13,875,000 Lone Elm from Prairie Star Parkway to 101st Street $2,950,000 K-7 & Prairie Star Parkway Interchange Improvements $14,380,000 87th Street Parkway & I-435 Ramp Improvements $1,275,000 Subtotal $140,031,880 TRAFFIC Priority - High Priority - Medium 95th Street & Monrovia Intersection Improvements $2,197,000 Street Lighting System Expansion $2,285,000 95th & Loiret Signalization $488,250 $4,970,250 PUBLIC BUILDINGS Priority - High Priority - Medium City Hall Public Safety Facility/Fire Station #6 Fire Station #2 rebuild TBD TBD PARKS Priority - High Swimming Pool Construction/Renovation TBD Cedar Station Park (Mize Lake) $780,000 Centennial Park Development Phase I $1,911,065 Lackman Road/95th Street Mixed Use Trail Phase 2 $1,611,800 Sar Ko Park Trails Park - Skate Park & Parking Lot Renovation $975,000 Sar-Ko Par Trails and Bois D'Arc Tennis Court Renovations $700,000 Black Hoof Trail $380,000 Priority - Medium Construction of Future Walking/Jogging Trails TBD Centennial Park Development Phase 2 $1,549,970 Little Mill Creek trail crossing 79th Street $687,670 Little Mill Creek trail crossing 87th Street Parkway $1,158,110 Subtotal $9,753,615 45

FY 2018 - FY 2022 CIP: Unfunded Projects STORMWATER Priority - Medium Project Title Estimated Costs Upper Coon Creek Development $1,532,137 Subtotal $1,532,137 MAJOR CAPITAL EQUIPMENT/OTHER Priority - High Priority - Medium City wide radio project $3,500,000 95' - 105' Aerial Platform Class "A" Fire Apparatus $1,200,000 City Gateway Signage Replacement $859,890 Fiber Optic Upgrade $2,035,744 Opticom System Upgrade $300,000 Subtotal $7,895,634 TOTAL COST $164,183,516 46

Policy Number: GB-Finance-3 Effective Date: GOVERNING BODY POLICIES Debt Policy (Resolution 2017-1xx) Approved By: Governing Body Sunset Date: None Approval Date: Prepared By: Finance Dept. Repeals/Replaces: Statutory Authority: Cross References: Current Debt Policy (GB05-A) GB-Finance-4 (Post Debt Issuance Tax Compliance Policy); GB05-C (Special Benefit District Policy); GB05-E (Tax Increment Financing Policy); GB05-I (Community Improvement District Policy) Policy Purpose: To establish guidelines for the issuance of City debt in order to achieve favorable credit ratings and minimize interest costs incurred on outstanding debt. 1. Introduction. A formal debt policy allows the City to properly plan for the financing of capital expenditures and minimize the interest costs incurred on outstanding debt. When evaluating the issuance of debt, the City will consider a number of factors: Adherence to the approved Capital Improvement Program (CIP). Potential for the debt-financed project(s) to create an increase in assessed valuation and/or sales tax revenue. The property tax or other revenue required to fund the annual debt service. Any other factors the City believes are pertinent. This policy does not address industrial revenue bonds and other private activity debt that may be issued by the City (see the City s Private Activity Conduit Financing Policy for information on industrial revenue bonds and other private activity debt). The City Administrator and Chief Financial Officer have overall responsibility for enforcement of this policy. The Governing Body may waive provisions of this policy provided the waiver does not violate state or federal law. 2. Ethics, Integrity & City Values. Section 1-6-H-1 et seq. of the City Code establishes a Code of Ethics for all City employees. This Code of Ethics is reinforced through the City s Personnel Policies/Procedures and the City s values. 47

GOVERNING BODY POLICIES Debt Policy All City employees involved with the issuance of City debt shall act in an honest and professional manner in accordance with the City s values, Code of Ethics, and Personnel Policies/Procedures. 3. Method of Sale. The City will market any debt issues on a competitive basis, unless circumstances related to unusual credit quality, issue size, or market access create a need for a negotiated sale process. If a negotiated sale process is necessary and appropriate, the City will normally select the underwriter(s) needed to accomplish the structuring, marketing, pricing, and sales of the bonds through a formal competitive selection process. The City Administrator may approve exceptions to this formal competitive selection process after consulting with the City s bond counsel and financial advisor. City staff and the City s financial advisor will be directly involved in all pricing for the negotiated sale of debt. 4. General Obligation, Special Obligation, and Temporary Notes. The City will normally issue general obligation bonds for equipment, land acquisition, buildings, and other public improvements. The maximum maturity of the bonds shall not exceed the estimated useful life of the capital item(s) being financed with the bonds. As a general guideline, the City will structure debt for normal capital improvement projects to mature over 10 to 15 years or the estimated useful life of the project, whichever is less. In addition, the City will normally structure debt service for general obligation bonds on a level payment basis with at least 60% of the debt service occurring during the first 10 years of the bond issue. When possible, special assessment revenues or other available revenues will be pledged for the payment of debt service in order to reduce the financial burden on the City-at-large. The City may issue special obligation bonds for special benefit district projects. These bonds are secured by special assessments levied on property owners within the special benefit district and by the City s full faith and credit. The City will structure debt for special benefit district projects to mature over 10 to 20 years or the estimated useful life of the project, whichever is less. The City s Special Benefit District policy includes additional information on the process for establishing a special benefit district. The City will normally issue general obligation temporary notes for equipment, land acquisition, buildings, and other public improvements. The maximum maturity of the bonds shall not exceed the estimated useful life of the capital item(s) being financed and will not exceed four years from the date of issue. The City will determine call provisions and other special provisions on a project-by-project basis. The City may sell temporary notes in a public sale or may decide to issue temporary notes without a public sale (including the City buying and holding the temporary notes as an investment). The City may choose to request ratings on general obligation bonds and temporary notes from credit rating agencies after consulting with the City s bond counsel and financial advisor. GB-Finance-3 48