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Agenda CITY OF JANESVILLE CITY COUNCIL SPECIAL MEETING (STUDY SESSION) TUESDAY, MAY 6, 2008 6:30 P.M. (Municipal Building Council Chambers - Room #417) 1. Call to Order and Pledge of Allegiance. 2. Roll call. 3. Review of: A. Fiscal projection for the 2009 budget. B. Potential items and projects in the 2008 note issue. 4. Matters not on the agenda. 5. Consideration of a motion to convene into closed session, pursuant to Wisconsin Statute Section 19.85 (1)(c), for the purpose of considering employment, promotion, compensation or performance evaluation data of any public employee over which the governmental body has jurisdiction or exercises responsibility. CITY MANAGER’S MEMORANDUM May 1, 2008 TO: City Council FROM: Steven E. Sheiffer, City Manager SUBJECT: Fiscal projection for the 2009 budget and Potential items and projects in the 2008 note issue. Attached are various support documents for the City Council study session on May 6, 2008 including my First Macro Projection of 2009 Operating Budget; the Proposed 2008 Note Issue and Project Descriptions; and Projected 2009 General Fund Budget Characteristics. My first macro projection of the 2009 operating budget indicates that there will be an operating deficit of nearly $523,000. At this point in time I believe net new construction will be 2.3% which results in a total allowable increase in the tax levy for operations of 2.87%. In addition, we are able to have some additional increase in the tax levy for operations due to the close-out of 2 TIF districts, which results in a total increase in the operations tax levy of 3.05%. The projected deficit assumes normal wage and health insurance cost increases, increases in the price of gasoline and diesel fuel, and additional costs for the operation of the Riverside Park wading pool and north restroom. It does not include any additional increases in service levels. Assuming that the City Council does not wish to address service cuts, I propose to close this gap through efficiency increases ($100,000) and by transferring nearly $423,000 for street maintenance from the operating budget to debt service. The proposed 2008 Note Issue totals $14,895,000, of which $6,045,000 is to be repaid by the General Fund. The proposed list of projects and a more detailed listing of project descriptions is attached. The proposed Note Issue primarily provides for the basic infrastructure needs of the community. These projects represent $8,955,000, or 60% of the proposed Note Issue. Other significant projects proposed for funding include first year funding for construction of a downtown parking structure ($1,250,000), property acquisitions previously approved by the City Council ($780,000), first year funding for the construction of a new central fire station ($500,000), and the partial funding for the development of the youth sports facility east of Wuthering Hills Drive in partnership with Janesville Youth Baseball ($500,000). If the Note Issue is approved as proposed it will result in an increase in General Fund debt service of $656,224 per year, or 13.9%. However, when combined 1 with a projected increase in expenditures for operations of 1.6% results in a projected tax increase, without TIF, of 3.05%. I believe the recommended budget approach and proposed Note Issue represent a reasonable approach to addressing the operating and capital needs of the community while maintaining current service levels. I also believe the projected tax increase is reasonable given that the cost of living is projected to exceed 3%. Staff will be prepared to present the list of capital projects and answer any questions Councilmembers may have regarding the projected operating budget or capital projects. I will explain the macro projections of the 2009 Budget and ask for your feedback on my proposed approach to close the deficit. This approach will avoid service cuts and personnel reductions. 2 JJW /PL - 5/1/2008 First Macro Projection of 2009 Operating Budget Current Projection Allowable increases under Levy Limits: Levy limit for operations$543,341(1) Levy limit increase for closeout of TIF#8 & TIF #20$32,812 Subtotal for Levy Limit$576,153 Expenditure Changes: Wages/health Insurance$1,505,000(2) Gasoline/diesel fuel cost increases$115,000(3) Eliminate contingency fund-$102,400 Operation costs for Riverside Park wading pool and$31,500(4) north restroom building Subtotal for Expenditure Changes$1,549,100 Revenue Changes: Revenue Growth $0(5) Increase Sanitation Fund transfer to General Fund$100,000(6) Use of remaining TIF #3 repayment over 5 years$150,000 Fee Increases$50,000 Increase use of undesignated fund balance$150,000 Subtotal for Revenue Changes$450,000 Projected Deficit-$522,947 City Manager Recommendations to Balance Budget: Budget cuts through efficiencies$100,000 Transfer street maintenance to borrowing$422,947 Grand Total $0 (1) Assumes net new construction of 2.3% which results in a operations levy increase of 2.87% (2) Assumes 3% wage increase and 10% increase in health insurance costs (3) Assumesd price at pump reaches $4.00/gallon (4) Operating costs for restroom of $24,000 plus operating costs for bathroom of $7,500 (labor to clean, utilities, supplies) (5) Interest rates are declining and construction starts are declining. (6) $200,000 transferred in 2008. Increase of $100,000 C:\Documents and Settings\wellnitzs\Local Settings\Temporary Internet Files\OLK1438\2009 Macro Budget Projection City of Janesville JJW - 5/1/2008 Proposed 2008 Note Issue Proposed 2008 Note Issue Special Major Capital Prior Years Assessment Water Wastewater Stormwater Hedberg Public ProjectDescriptionTotal ProjectProjects Budget BorrowingsGeneral FundFundUtility FundUtility FundUtility FundSanitation FundLibraryTIF FundsTotal Borrowing Construct and Improve Streets Infrastructure Maintenance & Extensions Street ExtensionsStreets constructed in 2008 in new developments$310,000$60,000$1,140,000$1,200,000$1,510,000$1,450,000 Sidewalks (Repair)Replacement sidewalk program to elimnate backlog of repairs generated by complaints$425,000$425,000$425,000$980,000 Curb and Gutter Replacement & ReconstructionCurb and Gutter replacement and repair associated with street resurfacing program$250,000$170,000$420,000$420,000$465,000 Street Maintenance and ImprovementsImproved street maintenance and intersection/railroad crossing improvements$500,000$500,000$500,000$200,000 Street Lights - New Streets & SubdivisionsStreet light installation in new developments$0$0$120,000 Railroad Crossing Improvements - Jackson StreetImprovements associated with converting Jackson St. to two-way traffic$100,000$100,000$100,000$100,000 Major Arterials & Connecting Highways E. Rotamer - N. Wright to Townhall RoadReconstruction to urban section scheduled for 2008$40,000$125,000$225,000$350,000$390,000$325,000 Comprehensive PlanGeneral Fund portion of costs for completion of Comprehensive Plan$35,000$35,000$35,000$35,000 SUBTOTAL $350,000$1,495,000$1,535,000$3,030,000$3,380,000$3,675,000 Construct and Improve Storm Sewers System Improvements South River Road GreenbeltRestoration of greenbelt at S. River Road and Kellogg Ave.$125,000$125,000$125,000 Replacement at Lapham and WashingtonReplace 650 feet of 12" - 15" storm sewer to alleviate ponding$50,000$50,000$50,000 Greenbelt Walkway Replacement - Suffolk to LaramieReplace deteriorated greenbelt walkway and re-establish channel$50,000$50,000$0 Replacement at Tyler StreetReplace and upgrade 600 feet of deteriorated 32" storm sewer with 36" storm sewer$80,000$80,000$0 Manhole RehabilitationRepair or replacement of storm sewer manholes in advance of street resurfacing$125,000$125,000$0 Storm Sewer ExtensionsStorm sewers constructed in 2008 for new developments.$750,000$750,000$750,000$750,000 SUBTOTAL $430,000$750,000$750,000$1,180,000$925,000 Acquire, Improve & Maintain Parks and Public Grounds Replace Playground EquipmentImprovements proposed for Ruger Park$35,000$35,000$35,000$35,000 Aquatics Facility ImprovementsPartial funding for aquatics facility improvements$0$0$1,000,000 Property AcquisitionsFunding of various property acquisitions previously authorized by the City Council$780,000$780,000$780,000$1,500,000 Wastewater Treatment Plant Land Acquisition Acquisition of property surround the Wastewater Treatment Plant$200,000$200,000$200,000$200,000 Youth Sports Facility (develop east of Wuthering Hills)Partnership with Janesville Youth Baseball. Year 1 of 2 year funding.$500,000$500,000$500,000$0 SUBTOTAL $1,315,000$200,000$1,515,000$1,515,000$2,735,000 Acquire, Improve & Maintain Public Bldgs. and Grounds Fire Station #1 Construction (year 1)First year funding for construction. Total construction costs of $2.5 - $3.0 million$500,000$500,000$500,000$1,000,000 Transit Services Center Construction (year 3)Final year of funding for City share of project costs. Funding delayed to 2009$0$0$255,000 Building MaintenanceFunds for minor building maintenance projects at City facilities$150,000$150,000$150,000$150,000 General Building Repairs - Hedberg Public LibraryBuilding is now 12 years old and needs ongoing maintenance.$150,000$150,000$150,000$100,000 Downtown Parking Structure (year 1)Construction of 3 - 4 level parking structure at Wall St. and Parker Dr. Year 1 of 3 year funding$1,250,000$1,250,000$1,250,000$0 Municipal Building Renovation (relocate sever room)Relocate room the houses network servers to resolve space, heat, and electrical issues$250,000$250,000$250,000$0 Police Pistol Range RenovationsReplace target retrieval system which no longer functions and building maintenance$60,000$60,000$60,000$0 Salt Storage BuildingConstruction of a 3rd salt storage facility to increase efficiency and storage capacity$195,000$195,000$195,000$0 SUBTOTAL $2,405,000$150,000$2,555,000$2,555,000$1,505,000 Acquire Capital Equipment Technology EnhancementsProjects associated with continued implementation of Strategic Plan$200,000$50,000$50,000$300,000$300,000$300,000 Public Safety Equipment (K-9, squad cars, Fire Act match)2nd canine unit; squad cars for school officers; local match for Fire Act Grant$125,000$125,000$125,000$100,000 ERP Phase II (Building Permits, Code Enf., Planning)Second of four phases to replace disparate computer application with integhrated ERP$350,000$350,000$350,000$350,000 GIS EnhancementsEnhancements to GIS including outside access, quality control, and other activities$25,000$25,000$25,000$25,000$100,000$100,000$100,000 Transit Capital ProjectsSmall Transit capital projects inc. radio bases station, shop equipment & garage sweeper$25,000$25,000$25,000$24,000 Snow Fighting Technology (GPS and Anti-Icing unit)Purchase of seconf anti-icing unit and GPS for lead plow trucks$70,000$70,000$70,000$70,000 Public Safety Network Upgrade (T-1 lines for Fire)Establish T-1 data lines to station 2 - 5 and Mercy Hospital to increase network reliability$35,000$35,000$35,000$36,500 Technology Enhancements - LibraryPhase 1 of 2 to implement radio frequency identification$75,000$75,000$75,000$75,000 SUBTOTAL $830,000$75,000$75,000$25,000$75,000$1,080,000$1,080,000$1,055,500 Construct and Close Landfills New Landfill - Construction of Phase 2Remaining funds ($300,000) to be provided in 2009.$300,000$300,000$300,000$300,000 Horizontal Gas Collection SystemTemporary gas collection system required by DNR$30,000$30,000$30,000$30,000 Landfill Maintenance Facility/Fuel Tank (year 2)$150,000 borrowed in Spring, 2007. Total project $285,000$135,000$135,000$135,000$150,000 Closure of Cell 1Project delayed to 2009$0$0$700,000 SUBTOTAL $465,000$465,000$465,000$1,180,000 Construct and Extend Water Mains System Improvements: Undersized Main ReplacementReplace approximately 4,000 feet of undersized main.$695,000$695,000$695,000$335,000 Lead Service ReplacementReplacement of approximately 125 lead services.$250,000$250,000$250,000$75,000 Main ReinforcementAddition of 3,300 feet of transmission mains on S. Oakhill Ave.$150,000$80,000$230,000$230,000$1,000,000 System Expansion Main ExtensionsWater mains to support new developments.$375,000$360,000$65,000$425,000$800,000$1,400,000 LateralsWatwer laterals to support new developments$210,000$210,000$210,000$100,000 Transmission MainsConstruction of 4,900 feet of transmission mains to support new development$340,000$165,000$505,000$505,000$955,000 Harmony Grove Booster StationProject delayed$0$0$250,000 East Side Reservoir - Land Acquisition & DesignFunding for design and land acquision for an east-side reservoir$400,000$400,000$400,000$400,000 Main RelocationFunding for project delayed$0$0$0$100,000 Well Site and Water Treatment StudyStudy to evaluate treatment options to comply with Safe Drinking Water Act$100,000$100,000$100,000$100,000 Master Plan UpdateEvaluation of long-term water needs and water supply$60,000$60,000$60,000$60,000 Valve Manhole Reapir & ReplacementRepair or replacement of deteriorated water manholes and/or valves$100,000$100,000$100,000$0 SUBTOTAL $375,000$1,060,000$1,915,000$2,975,000$3,350,000$4,775,000 Construct and Extend Sewer Mains System Improvements: Sewer LiningReline approximately 3 miles of sanitary sewer main which is clay pipe.$500,000$500,000$500,000$500,000 Inflow/Infiltration ReductioonRepair manholes to prevent stormwater inflow and infiltration.$100,000$100,000$100,000$100,000 Sewer Repair (Spring Brook)Project delayed$300,000$0$300,000$300,000 City of Janesville JJW - 5/1/2008 Proposed 2008 Note Issue Proposed 2008 Note Issue Special Major Capital Prior Years Assessment Water Wastewater Stormwater Hedberg Public ProjectDescriptionTotal ProjectProjects Budget BorrowingsGeneral FundFundUtility FundUtility FundUtility FundSanitation FundLibraryTIF FundsTotal Borrowing North Parker DriveProject delayed pending deciosion on County Jail$0$0$950,000 Harmony Circle Interceptor (design)Interceptor sewer for Harmony Circle area to increase system capacity$300,000$100,000$100,000$400,000$400,000 System Expansion: Sewer ExtensionsSewer extensions to support new developments.$550,000$180,000$180,000$730,000$1,200,000 LateralsSewer laterals to support new developments.$210,000$210,000$210,000$100,000 Interceptor ExtensionsInterceptor sewers to support new development$35,000$310,000$310,000$345,000$630,000 Spring Bluff Lift StationProject delayed$0$0$225,000 Sunset Meadows Lift StationSewage lift station to support Sunset Meadows Subdivision$210,000$210,000$210,000$0 SUBTOTAL $1,185,000$700,000$910,000$1,610,000$2,795,000$4,405,000 Provide Financial Assistance for Community Redevelopment Development Incentive - (TIF #26)Development incentives for Rinehart Targets and Tigre USA$325,000$325,000$325,000$0 Venture Drive -(TIF #22)Construction of water, sewer, and road to support Helgesen Properties warehouse$590,000$590,000$590,000$0 SUBTOTAL $915,000$915,000$915,000$0 Grand Total$2,340,000$6,045,000$4,045,000$1,990,000$1,185,000$25,000$465,000$225,000$915,000$14,895,000$17,235,000$20,255,500 2008 NOTE ISSUE PROJECT DESCRIPTIONS Construct and Improve Streets - $3,030,000 ? Infrastructure Maintenance and Extension - $2,645,000 This program totals $2,645,000 and has projects that fall into five (5) primary categories: Street Extensions - $1,200,000 o This program totals $1,510,000 and represents actual bid prices for streets to be constructed in 2008 in new developments for the Spring Public Works Program ($810,000) and additional funding for streets included in the 2007 Public Works Program (700,000). Funding for these improvements is provided through Special Assessments ($1,500,000) with the balance ($10,000) being provided by the General Fund. Of the amount provided by Special Assessments, $360,000 is available from the 2007 Note Issue leaving a balance of $1,140,000 to be included in this Note Issue. In addition, $50,000 is required from the General Fund to fully fund the 2007 program, bringing the total proposed for the General Fund to $60,000. Sidewalks (Repair and Replacement) - $425,000 o This program totals $630,000 for the repair and replacement of deteriorated sidewalk and/or sidewalk with other safety deficiencies. Of the $630,000 required for this program, $455,000 will be billed directly to abutting property owners and is not included in the proposed borrowing. The remaining portion ($175,000) will be paid by the General Fund and is included in the proposed 2008 Note Issue. General Fund costs include expenses such as curb ramp replacements, sidewalks crossing city owned property (greenbelts, parks, etc.) and other miscellaneous costs typically paid by the city at large. In addition, $250,000 is required from the General Fund to fully fund the 2007 program, bringing the total proposed for the General Fund to $425,000. Curb and Gutter (Replacement) - $420,000 o This program includes $420,000 for curb and gutter replacement approved in the 2008 Spring Public Works Program. Approximately $170,000 of the curb and gutter replacement cost for 2008 will be assessed to the abutting property owners. The remaining $250,000 will be provided by the General Fund. Street Maintenance and Improvements - $500,000 o The 2008 Budget proposed a $200,000 borrowing to continue the current level of street maintenance given the levy limits. This program includes an additional $300,000 to increase maintenance of City streets and make various other improvements to the street C:\Documents and Settings\wellnitzs\Local Settings\Temporary Internet Files\OLK1438\Project Descriptions.doc jjw 5/25/2008 2008 Note Issue Page 2 of 12 Project Descriptions network such as intersection and railroad crossing improvements. This is a 5-year program which should allow the City to catch-up on its street maintenance activities. The 2008 Note Issue includes $500,000 for this program. Railroad Crossing Improvements - $100,000 o The Railroad Crossing on Jackson Street immediately north of Centerway will require safety improvements when Jackson Street is converted from one-way to two-way traffic. The proposed 2008 Note Issue includes $100,000 for these improvements. ? Major Arterials and Connecting Highways - $350,000 This program totals $350,000 and funding is proposed for one (1) project: E. Rotamer Road – N. Wright Road to Townhall Road - $350,000 o The City of Janesville, using Surface Transportation Program (STP) funding from the Wisconsin Department of Transportation, proposes to reconstruct E. Rotamer Road from N. Wright Road to Townhall Road in 2008. The existing rural section will be replaced with an urban (curb and gutter) section, sidewalks, storm sewers and bicycle facilities. The project estimate is $1,482,000 for design, construction, and right-of-way acquisition, which includes funding from the STP ($1,092,000), Special Assessments ($225,000), and General Fund ($165,000). Funding for the General Fund portion of this project ($165,000) will come from the 2007 Note Issue ($40,000), and the proposed 2008 Note Issue ($125,000). ? Comprehensive Plan - $35,000 The City of Janesville is required by the State of Wisconsin to prepare a new Comprehensive Plan. We have contracted with a planning consulting firm to produce this plan and the total estimated cost is $200,000. Of this amount, $50,000 was provided through the 2006 Note Issue, and $37,500 each was provided by the Water, Wastewater, and Stormwater utilities. The balance will be provided through the 2008 operating budget ($2,500) and the proposed 2008 Note Issue ($35,000). Construct and Improve Storm Sewers - $750,000 ? System Improvements – No new funding needed. No new funding is needed for this program which totals $430,000. Funding is available from the 2004 and 2005 Note Issues for two (2) projects that have been partially completed but where the remaining work has been postponed indefinitely. The 2004 Note issue included $825,000 for construction of northeast regional drainage improvements. A storm sewer was constructed along N. Wright Road, but the other planned drainage improvements, including a regional detention pond, have not been constructed because the planned residential development in this area has not occurred as anticipated. The 2005 Note Issue included $565,000 for the construction of drainage improvements in the Twelve Oaks subdivision. These improvements have been substantially 2008 Note Issue Page 3 of 12 Project Descriptions completed, but the other anticipated improvements are postponed pending additional residential development. Five (5) projects are proposed in this category: South River Road Greenbelt - No new funding needed. o The South River Road Greenbelt extends from the intersection of South River Road and Kellogg Avenue to the Rock River. This greenbelt is badly eroded and in need of restoration. A section of this greenbelt was previously repaired to protect the property of an adjacent property owner, but additional restoration is needed throughout the greenbelt ($125,000). Funding for these improvements is proposed to be reallocated from the 2004 Note Issue for northeast drainage improvements. Lapham and Washington Replacement - No new funding needed. o The Lapham and Washington replacement project will replace and upgrade approximately 650 feet of existing 12" - 15" diameter storm sewer ($50,000). The existing pipe has extensive root damage from adjacent terrace trees, which is causing storm water ponding on associated streets. Funding for these improvements is proposed to be reallocated from the 2005 Note Issue for drainage improvements in the Twelve Oaks Subdivision. Greenbelt Walkway Replacement - No new funding needed. o In the late 1960’s a concrete walkway was constructed in the greenbelt between Suffolk and Laramie Streets. Due to erosion and normal deterioration this walkway has become a hazard and is in need of replacement. This project provides $50,000 to replace this greenbelt walkway and to reestablish the greenbelt channel which has erosion problems. Funding for these improvements is proposed to be reallocated from the 2004 Note Issue for northeast drainage improvements. Tyler Street Replacement - No new funding needed. o This project on Tyler Street between Main and Sharon streets proposes to replace and upgrade 600 feet of 32” pipe which has deteriorated with 36” pipe ($80,000). The work will also include the replacement of manholes, catch basins, new curb, street resurfacing, and terrace restoration. Funding for these improvements is proposed to be reallocated from the 2005 Note Issue for drainage improvements in the Twelve Oaks Subdivision. Manhole Rehabilitation - No new funding needed. o This is a new program beginning in 2008 to repair or replace storm sewer manholes on streets being resurfaced or reconstructed. This will prevent the need to tear-up a new street surface if the manhole fails after the street has been resurfaced. The proposed funding ($125,000) provides for the replacement of 16 manholes ($100,000) and the repair of an additional 15 manholes ($25,000). Funding for these improvements is 2008 Note Issue Page 4 of 12 Project Descriptions proposed to be reallocated from the 2004 Note Issue for northeast drainage improvements. ? Storm Sewer Extensions - $750,000 This program totals $750,000 and represents actual bid prices to extend storm sewer for streets to be constructed in 2008 in new developments on the Spring Public Works Program ($385,000), as well as an estimate for storm sewer extensions to be constructed in the Fall Public Works Program ($365,000). Funding for these improvements is provided through Special Assessments. Acquire, Improve & Maintain Parks and Public Grounds - $1,515,000 ? Renovate Playgrounds/Maintain Equipment - $35,000 In 1996, the City began a program to renovate/replace playground equipment in neighborhood parks. To date, renovations have been completed at 29 neighborhood parks at a cost of approximately $35,000 for each neighborhood park. The renovation/replacement of playground equipment will continue in 2008, with improvements proposed for Ruger Park ($35,000). ? Property Acquisitions - $780,000 Over the last several years the City has acquired several properties where one of the sources of funding for acquisition, relocation, and/or demolition was the General Fund (Swingers Batting Cages ($169,000), Dooley Photography (41,000), Westphal ($173,000), Energetics ($58,000), Northrup Awning ($29,000), Alliant Tech. ($238,000), Sanford ($42,000), Riverside Plating ($21,000) and other miscellaneous costs ($9,000). The General Fund portion of these projects has never been funded through a Note Issue. This project proposes to fund all of the property acquisitions previously approved by the City Council. ($780,000). ? Wastewater Treatment Plant Land Acquisition - $200,000 Funding is proposed to acquire land around the Wastewater Treatment Plant to be held by the City ($200,000). The land obtained under this program would not be available for residential or commercial development. Its primary purpose will be to act as a buffer between nearby residential properties and the treatment plant. This is the first year of a five year project. ? Youth Sports Facility - $500,000 A partnership is proposed with Janesville Youth Baseball (JYB) to develop additional softball and baseball fields at the Youth Sports Facility East of Wuthering Hills Drive. Total City costs for this project are estimated to be between $1.3 and $1.4 million and will include infrastructure improvements such as rough grading of the fields, utilities, roads, parking lots, safety lighting, and restrooms. Janeville Youth Baseball would be responsible for improvements totaling approximately $2.5 million including fine grading of the fields, fencing, dugouts, field lighting, scoreboards, and seeding. A total of eight (8) new fields are proposed. The proposed 2008 Note Issue includes $500,000 for this project. An additional $400,000 from the sale of the City lots on 2008 Note Issue Page 5 of 12 Project Descriptions Ruger Avenue will also be dedicated to this project. The remainder of the funding ($400,000 - $500,000) will be included in the 2009 Note Issue. Acquire, Improve & Maintain Public Buildings and Grounds - $2,545,000 ? Central Fire Station and Administration - $500,000 The central fire station and administrative offices (Fire Station #1) was constructed in 1957 and no longer meets the space or operational needs of the Fire Department. Staff plans to present a report to the City Council in 2008 with recommended station locations. Initial funding for design and site acquisition was provided in 2006 ($150,000) and 2007 ($350,000). Funding for construction will be phased over several years with the initial $500,000 proposed for 2008. The estimated construction cost is $2,500,000 to $3,000,000. ? Building Maintenance - $150,000 Each year, funds are required for minor building maintenance projects at City facilities. In 2008, improvements totaling $150,000 are proposed for several public buildings. The locations may include the Municipal Building, various park and recreational facilities, the Fire Training Center, and Fire Station #4. ? Hedberg Public Library Building Maintenance- $150,000 The Hedberg Public Library was constructed in 1996 so the building is now eleven years old. This project proposes funding for ongoing general building maintenance needs ($150,000) including the replacement of the air conditioning system. ? Downtown Parking Structure - $1,250,000 The construction of a parking structure is proposed for the downtown on the site of the former parking garage on the corner of Parker Drive and Wall Street. The proposed structure will either be three (3) or four (4) levels depending upon development plans for an adjacent office building. A three (3) level structure will accommodate 186 vehicles at a cost of $3.1 million. A four (4) level structure will accommodate 251 vehicles at a cost of $4.1 million. Funding proposed in the 2008 Note Issue ($1,250,000) is the first year of a three (3) year project. ? Municipal Building Renovation - $250,000 The room that currently houses the servers and other infrastructure for the City’s computer network was completed eight (8) years ago. At that time two (2) servers met the City’s computing needs. Since then new computer technologies (voicemail, VOIP telephone system, Enterprise-wide computer systems, GIS, etc.) have been implemented requiring the purchase and installation of an additional 18 servers, bringing to total number of servers to 20. This room was not designed to meet the space, power demands, nor cooling requirements of 20 servers. Attempts have been made to adequately cool this room with limited success. When the first floor of the Municipal Building was renovated three (3) years ago, unfinished space was allocated for the relocation of the server room and IT department. The 2008 Note Issue proposes 2008 Note Issue Page 6 of 12 Project Descriptions $250,000 to relocate the IT department and the server room to the first floor of the Municipal Building. ? Police Pistol Range Renovation - $60,000 The pistol range used by the Janesville Police Department for weapons qualification and training was constructed and equipped with the current target retrieval system in the early1980's. The automatic target station system has not been operational for over a year and replacement parts are no longer available. Range Officers manually position and retrieve their targets creating a less than optimal safety situation. One of the primary purposes of a target position and retrieval system is to minimize officers being down range from the firing line. This creates a potentially dangerous situation if a weapon were to accidentally discharge. The cost to replace the target return system is estimated to be $50,000. An additional $10,000 is also being proposed for building maintenance items that have been unresolved for several years. ? Salt Storage Building - $195,000 The construction of a third salt storage facility is proposed for 2008 ($195,000). The City currently has two (2) salt storage facilities located at the City Services Center and the Transit Maintenance Facility. The close geographic proximity of these facilities negatively impacts the efficiency of the salting and snow removal operations because operators must make numerous trips from their snow removal route to the salt storage facility and back during snow removal operations. A third salt storage facility would likely be located on existing City-owned property on the near-south side of Janesville. This facility would also provide additional salt storage capacity and reduce the future likelihood of the salt supply problems experienced in 2007 - 2008. Acquire Capital Equipment - $1,080,000 ? Technology Enhancements - $300,000 The City will continue implementation of the Information Technology Strategic Plan. This plan addresses improving the efficiency of City services and providing citizen satisfaction through the use of information technology. In 2008, funds are requested from the General Fund ($200,000), Water Utility ($50,000) and Wastewater Utility ($50,000) to obtain consulting services and purchase hardware and software for the implementation of specific citywide information technology priority projects, as determined by the City Manager. ? Public Safety Equipment - $125,000 Public Safety Equipment for 2008 ($143,000) includes funding to purchase and equip a squad car for the second Canine unit ($46,000), the purchase of light bars and other public safety vehicle equipment in order to retain five (5) squad cars scheduled for replacement for use by the school officers ($76,000), and the local match for a Fire Act Grant ($21,000). At the present time the school officers drive their personal vehicles. A portion of these costs ($18,000) is offset by a private donation towards the squad car for the second canine unit. 2008 Note Issue Page 7 of 12 Project Descriptions ? Enterprise Resource Planning (ERP) - $350,000 The City is in the process of implementing an Enterprise Resource Planning (ERP) project which will replace disparate computer applications and integrate them into a single solution reducing redundant data entry and facilitating the sharing and tracking of information. Phase I of this project included the replacement of our Land Management/Computer-aided Mass Appraisal Software and was funded in the 2006 note issue ($350,000). Phase II of this project is proposed for 2008 and will include the replacement of code enforcement, building permits and inspections, complaint tracking, and planning software ($350,000). The proposed project is the second phase of a four (4) phase project. ? GIS Enhancements - $100,000 Implementing the GIS is an ongoing process. In 2008 funds are requested to: 1) provide software and the appropriate licensing to allow GIS utilization outside of Municipal Building (i.e. water, operations); 2) provide quality control activities to assure accurate system mapping; 3) develop software for recording new construction and maintenance activities; and 4) other GIS development activities. Funds are requested from the General Fund ($25,000), Water Utility ($25,000), Wastewater Utility ($25,000) and Stormwater Utility ($25,000). ? Transit Capital Projects - $25,000 Funding is proposed for several small Transit capital projects ($25,000) including repair parts ($6,000), replacement of the radio base station ($11,000), shop equipment ($2,000), and replacement of a garage sweeper ($6,000). Transit projects are funded 80% from the Federal Transit Act and these costs represent the projects local share (20%). ? Snow Fighting Technology - $70,000 Snow fighting technology includes the addition of one anti-icing spray unit ($20,000) and costs to equip all lead plow trucks with Geographic Positioning System (GPS) tracking and data management capabilities ($50,000). In 2007 one anti-icing spray unit was added to the fleet and was successful in preventing build-up of ice on bridges and other problem areas. A second unit is proposed to expand coverage to a portion of the arterial streets. Equipping our lead plow trucks with GPS capabilities will allow our staff to better manage snow removal operations and respond to citizen inquiries during the event. ? Public Safety Network Upgrade – $35,000 Funding is proposed to upgrade the public safety computer network ($35,000), specifically the data connections into the City’s computer network. At the present time Stations 2 – 5 are connected the City’s network via DSL service. The speed and reliability of this connection has proven unsatisfactory and it is proposed to upgrade this to a higher speed T-1 connection. In addition, there is a wireless connection into the City’s network from Mercy Hospital. This has also proven unreliable and a T-1 connection is proposed for this location. 2008 Note Issue Page 8 of 12 Project Descriptions ? Hedberg Public Library Technology Enhancements - $75,000 Radio Frequency Identification provides for "sightless" or no line sight identification of items. It includes the ability to facilitate circulation, re-shelving and theft detection. In recent years, circulation and materials management have grown; at the same time library staffing has remained constant or is being reduced. The use of RFID reduces the amount of time required to check-out and check-in materials, allows for improved inventory of materials and provides for better security of materials, especially audiovisual materials. Funding for the project will be phased over two years with $75,000 proposed in 2008. Construct and Maintain Solid Waste Disposal Facilities - $465,000 ? New Landfill – Phase 2 Construction - $300,000 The construction of Cell 2 at the Landfill began 2007 and is now complete with a total project cost of $1,214,000. Initial funding ($300,000) was provided in 2007. A portion of the project costs were offset with funding available from prior years notes for closure of phase 5 and the purchase of a second landfill compactor ($287,000). The remainder of the project costs will be provided in 2008 ($300,000) and 2009 ($327,000). ? Horizontal Gas Collection System - $30,000 A temporary horizontal gas collection system is required by the DNR as a condition of approval for the operating Sanitary Landfill. The temporary system will allow the City to place the permanent gas collection header pipe system above the plastic membrane at final closure. This will significantly reduce long-term maintenance costs related to the permanent system. Initial funding ($60,000) was provided in 2007 and additional funding ($30,000) is proposed in 2008 to extend the system. ? Maintenance Facility/Fuel Tank - $135,000 A new maintenance facility and fuel tank to support the operating Landfill was approved and constructed in 2007. Initial funding ($150,000) was provided in 2007 with the remaining funding ($135,000) proposed for 2008. Construct and Extend Water Mains - $2,975,000 ? System Improvements - $1,175,000 This program totals $1,175,000 and has projects that fall into three primary categories: Undersize Main Replacement - $695,000 o Undersize main replacements totaling $695,000 are proposed for 2008. This program is needed to replace undersized water (replace 1-1/2 inch and 4-inch mains with 6 inch 2008 Note Issue Page 9 of 12 Project Descriptions mains) in the distribution system. There are approximately 12 miles of undersized main in the system. Replacement is done in coordination with street restoration projects. Funds requested will replace about 4,000 feet of main ($695,000). Lead Service Replacement - $250,000 o In 2005, the Water Utility implemented a lead services replacement program within the City. This program is similar to the iron service replacement activities the City has historically undertaken. The actual cost of this program will vary from year to year based upon the number of lead services under streets that are being reconstructed in any given year. Currently, there are about 2,560 lead services in the City. In 2007, 25 lead services were replaced. In 2008, the Water Utility proposes to replace 125 lead services ($250,000). Main Reinforcement - $230,000 o The Main Reinforcement program addresses identified weaknesses in the existing water distribution system by adding transmission mains or upgrading distribution mains to transmission mains. In 2008, 3,300 feet of 12” transmission mains are proposed for construction on S. Oakhill Avenue ($230,000). ? System Expansion - $1,900,000 Main Extensions – $425,000 o This program totals $785,000 and represents actual bid prices to extend water mains for new developments on the Spring Public Works Program ($445,000), as well as an estimate for water main extensions to be constructed in the Fall Public Works Program ($340,000). Approximately $735,000 will be assessed to developers with the remainder of the cost ($50,000) being paid by the Water Utility. The total borrowing for Special Assessments is reduced by $375,000 due to carryover funds from the 2007 Note Issue. An additional $15,000 is also needed from the Water Utility to completely fund the 2007 extensions bring the total for the Water Utility to $65,000. Water Laterals – $210,000 o Laterals provide water service from the water main to the curb stop. Most laterals are installed to support new residential development. The cost of installing the laterals is paid through special assessments ($210,000). Transmission Mains - $505,000 o Transmission mains carry water from the pumping stations and the reservoir to the distribution systems. In order to provide sufficient water flow to developing areas, new transmission mains must periodically be constructed. The 2008 budget proposes the construction of 4,900 feet of a combination of 12” and 16” transmission mains at three (3) locations – County “A”, Austin Road and Dartmouth Drive, and the Austin Farm ($505,000). 2008 Note Issue Page 10 of 12 Project Descriptions East Side Reservoir - $400,000 o The City has experienced significant residential growth to the northeast, which has created the need to make upgrades in the water supply system infrastructure. Preliminary reports indicate the need for one or two water reservoirs on the east side to support the existing distribution system. A new 3 million gallon earth sheltered reservoir is estimated to cost approximately $3,000,000. In 2008, funds are requested for design services for an east side reservoir ($300,000) and land acquisition ($100,000). ? Well Site and Water Treatment Study - $100,000 The Water Utility needs to identify a site for a new well and ground level reservoir for the south part of the distribution zone. A site for this well was previously identified and approved by the WDNR (at the intersection of Beloit Avenue and Venture Drive) but is no longer approved and likely will not meet the current requirements. In addition, this project will also identify and evaluate the treatment options for the City's potable water supply to maintain compliance with the requirements of the Safe Drinking Water Act and its amendments ($100,000). ? Master Plan Update - $60,000 The Water Utility is currently involved in a master planning effort to identify the long-term needs of the City. The effort currently underway will closely reflect the past master planning activities, developing similar information to help the Utility plan for the future. The funds requested will allow the City to proceed with developing a complete evaluation of our water supply aquifers. It will provide a baseline reference point for planning the future water needs of the City ($60,000). ? Manhole and Valve Replacement - $100,000 The valve and manhole repair and replacement program repairs or replaces deteriorated water valves and/or water manholes that are contributing to street surface settlement and deterioration Construct and Extend Sewer Mains - $1,610,000 ? System Improvements - $700,000 This program totals $700,000 and has projects that fall into three primary categories: Sewer Lining - $500,000 o Janesville has approximately 140 miles of clay pipe in the sanitary sewer collection system that ranges in age from 40 to 100 years. Most of the clay pipe is structurally sound, but suffers from root intrusion and infiltration of groundwater. The 2008 Note Issue proposes $500,000 of funding, which will reline about 3 – 3-1/2 miles of sanitary sewer main. This is the eighth year of a multi-year program, which reduces the potential for clogged sewers resulting from root growth and also ensures the continued structural integrity of the clay sewers. 2008 Note Issue Page 11 of 12 Project Descriptions Inflow/Infiltration Reduction - $100,000 o A six-year program, estimated to cost $100,000 annually, is proposed to repair about 520 manholes to prevent stormwater inflow and infiltration. These manholes are located in greenbelts and roadside ditches and many were submerged during the 1998 flooding. The manholes will be repaired and retrofitted with either internal or external seals, if needed. This is the sixth and final year of the program, and since 1999, the City has repaired about 485 of the manholes that were most susceptible to flooding. Springbrook Sewer Repair – No Additional Funding Needed o This project totals $300,000 and initial funding for this project ($100,000) was included in a prior Note Issue. The remaining funds ($200,000) are available from prior Note Issues for other projects that were completed under budget. A 36-inch sewer main is exposed at the flow line of Springbrook. The pipe causes flow obstruction in the creek and has led to deteriorated conditions of the shoreline. This project will require the construction of an 18-inch and 24-inch double barrel siphon and relaying about 100-feet of 32-inch diameter concrete pipe. Harmony Circle Interceptor - $100,000 o A sewer interceptor is needed in the Harmony Circle area to increase capacity in the existing collection system. It is estimated that this will require 13,000 feet if 18” sewer. The total cost for the design of this improvement $400,000. The total borrowing is reduced by $300,000 due to carryover funds from 2007 Note Issue. ? System Expansion - $945,000 Sewer Extensions - $180,000 o This program totals $730,000 and represents actual bid prices to extend sewer mains for new developments on the Spring Public Works Program ($425,000), as well as an estimate for sewer main extensions to be constructed in the Fall Public Works Program ($305,000). Approximately $700,000 will be assessed to developers with the remainder of the cost ($30,000) being paid by the Wastewater Utility. The total borrowing is reduced by $550,000 due to carryover funds from the 2007 Note issue ($30,000 – Wastewater Utility; $520,000 - Special Assessments) Sewer Laterals – $210,000 o Laterals provide sewer service from the sewer main to the property line. Most laterals are installed to support new residential development. The costs of installing the laterals are paid through special assessments ($210,000). Interceptor Extensions - $345,000 o nterceptor sewers carry waste from the collection system to the treatment plant. Several I interceptor sewer mains have been identified as necessary to serve potential new 2008 Note Issue Page 12 of 12 Project Descriptions developments around the City in 2008 totaling $345,000 (Sunset Meadows - $110,000; N. Wright Road - $235,000). The proposed projects total 1,900 feet of 8 inch sewer ($110,000) and 3,200 feet of 15 inch sewer ($235,000). Approximately $310,000 will be assessed to developers with the remainder of the cost ($35,000) being paid by the Wastewater Utility. The total borrowing is reduced by $35,000 due to carryover funds from the 2007 Note issue ($35,000 – Wastewater Utility). Lift Station - $210,000 o A sewage lift station is necessary to support the Sunset Meadows Subdivision ($210,000). This subdivision is located at the southwest corner of Austin Road and County Highway “A”. Provide Financial Assistance for Commuhnity Redevelopment - $915,000 ? Development Incentive (TIF 26) - $325,000 Funding is proposed in the 2008 Note Issue for two (2) TIF development loans in TIF #26 (Conde Street) previously authorized by the City Council ($325,000). Funding is included for development loans to Rinehart Targets ($125,000) to reimburse costs of adding a sprinkler system and loading dock to a vacant industrial building that Rinehart Targets will purchase for their growing manufacturing operations; and Tigre USA ($200,000) to reimburse costs of leasehold improvements and new equipment associated with an expansion of their production capacity. ? Venture Drive (TIF 22) – $590,000 In 2007 approximately 1,700 feet of Venture Drive was constructed including the 800’ extension of water and sewer mains. These improvements were necessary to support the development of a 250,000 sq. ft., $7.5 million warehouse spec. building constructed by Helgesen Properties. The funding of these improvements is proposed for the 2008 Note Issue. JJW Projected 2009 General Fund Budget 5/1/2008 Characteristics AmountPercentage AdoptedProjectedIncreaseIncrease 20082009(Decrease)(Decrease) Revenues: Non-Property Tax Revenues$15,775,700$15,775,700$00.00% Applied Fund Balance1,231,0001,231,00000.00% Total$17,006,700$17,006,700$00.00% Expenditures: Operations$35,907,883$36,484,036$576,1531.60% Debt Service4,722,3445,378,568656,22413.90% Total$40,630,227$41,862,604$1,232,3773.03% Tax Levy: City Property Tax Levy$23,623,527$24,855,904$1,232,3775.22% TIF Levy737,434737,43400.00% Total Tax Levy$24,360,961$25,593,338$1,232,3775.06% Tax Rates: City Property Tax Rate$6.9332$7.1448$0.21163.05% TIF Tax Rate0.21650.2120(0.0045)-2.08% Total Tax Rate$7.1497$7.3568$0.20712.90% Taxes Paid (Ave. Home $112,700) General Fund$781.37$805.22$23.85003.05% TIF24.4023.89(0.5100)-2.09% Total Taxes Paid$805.77$829.11$23.34002.90% Assessed Valuation $3,407,313,010$3,478,866,583$71,553,5732.10% Ave. Home Assessed Valuation$112,700 AmountPercentage AdoptedProjectedIncreaseIncrease General Fund20082009(Decrease)(Decrease) Operations Levy $18,901,183$19,477,336$576,1533.05% (w/o TIF) Add: Debt Service4,722,3445,378,568656,22413.90% Total Levy $23,623,527$24,855,904$1,232,3775.22% (w/o TIF) Assumptions: Assessed Valuation projected to increase 2.1%. No growth in non-property tax revenues or applied funds. The increase in 2009 debt service is equal to a 2% increase in total 2008 tax levy (w/o TIF) No change in the TIF Levy. A 2.3% increase in net new construction. The allowable 2009 Operations Levy increase is determined by applying the % increase in net new construction to the 2008 total levy (including both operations and debt service). C:\Documents and Settings\wellnitzs\Local Settings\Temporary Internet Files\OLK1438\Proposed 2009 Budget Characteristics JJW