04-12-1994 STUDY SESSIONCITY OF RICFIFIELD
PLAnninG OOfYimission
AGENDA
April 12, 1994
6:00 p.m. -- Study Session
MEETING WILL BE IN LARGE CONFERENCE ROOM
a:`',,.
ITEM #1
PC LETTER #9 Review the Capital Improvement Plan
Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96
hours in advance to the Administrative Service's Director at 861- 9702."
OITY of R10HRELD
Item: Study Session Agenda Section: New Business
PC Letter: #9 Date: April 12, 1994
GENERAL INFORMATION
Subject: Review of the 1996 -2000 Capital Improvement Program (CIP) and 1995
Capital Improvement Budget (CIB) process.
References: 1. 1994 CIB Summary and 1995 -1999 CIP (attached)
BACKGROUND
Issues: The 1994 Capital Improvement Program (CIP) process was initiated by the
Community Services Advisory Commission in February of this year. The
CIP links the community's master and fiscal plan to long and short range
physical development.
CIP94. DOC
The Planning Commission reviews and evaluates all departmental
requests against community needs and the ability to pay. A recommendation
is made to the City Council to ensure that projects conform to the
comprehensive plan. Major improvements are listed over a five year period, and
include proposed scheduling, estimated costs and method of financing as well as
a description of each improvement.
The CIP should be reviewed and updated each year to reflect changing
community priorities, emergencies, opportunities or alternative financial
strategies. The Capital Improvement Budget (CIB) is a recommendation
from the City Manager to the City Council on capital improvements. The CIB
appropriates money for projects included in the first year of the CIP and
authorizes necessary funding to pay for these improvements.
The 1995 priorities (and estimated costs) listed under the 1995 -1999 CIP total
14,707,000 and include the following:
1)Recreation /Open Space: Madison Park, Rich Acres Tee Construction using
special revenues and user fees totaling $540,000;
2)Right -of -Way Improvements: 77th Street Tunnel, streetlight reconstruction;
frontage Road Reconstruction, Penn Avenue /66th Street streetscape, LHN
Graham Avenue Development using various funding sources totaling
13,817.00;
3)Public Facilities: Richfield Lake Outlet to Woodlake using various funds
totaling $350,000.
RECOMMENDATION
Recommended
Action:
Review the 1995 -1999 CIP as a basis for discussing the 1996 -2000 CIP. The
Community Services Advisory Commission met on March 8 to discuss the
1996 -2000 CIP but did not make a recommendation. Planning Commission
action will be required at the regularly scheduled April 26 Planning
Commission meeting.
BaSiS• The Planning Commission is required by City Charter to prepare and
recommend a Capital Improvement Program for inclusion in the Annual
Budget Message of the City Council.
CIP94.DOC
F
94CI8:95/99CIP(3/15/93)
QTY OF RIO* -MD, MDNMOTA
1994 GPITAL kmIENT air 61M9"
loo, • • •
4 Ice Arena 08da Roof 25,100 U
7WAL FMCFMATICN/OPEN SPACE 702, 100
Right of W= 11'•1!•x• =111 .
7,200,000
98,500
11800,000
IEW 77th Street Tunnel 4,800,1tt
TOTAL PUBLIC FACILITIES 0
Public
Pheareation/Open Spam DevelqMmt 702,100
Right of Way 15,098,50D
GRAND WrAL
UNDITG SOLRM
F') Federal Aid Damlitian Funds 12, 000, 000
I) Aermwvnt Inprvwww wt Aeyolmbv 98, 500
M) Maiicipal State Aid 100,000
R) Special FirnNue 50D,000
S) State Grant. 3,000,000
U) User Fees 102.100
GRAND TOTAL 15 800.600
Mare 15, 1993
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4
SECTION TWO
FINANCING THE 1995 - 1999 CAPITAL IMPROVEMENT PROGRAM
Richfield's planning for public improvements in the Capital Improvement Program gives
recognition both to community needs and to the City's ability to pay. A summary of each of the
major revenue sources for the 1995 -1999 Capital Improvement Program is included below.
Special Revenues $ 8,218,000
Federal and State Grants 11,500,000
Municipal State Aid 5,050,000
Tax Increment Financing 2,733,000
Special Assessments 12,000,000
User Fees 5,582500
General Obligation Bonds 500,000
Sale of Property 1.000,000
TOTAL SOURCES OF FUNDS 146,583150 0
SPECIAL REVENUE FUNDS
The Special Revenue Fund consists of profits from public enterprises, including profits from the
Richfield Liquor Stores. These funds are used for Capital Program projects in lieu of issuing
General Obligation Bonds and payink interest on the bonds. This source of funding is the
backbone of the City's "pay -as- you -go policy. A summary of the sources of funds for the
Special Revenue Fund for the past ten years is included below.
Year liquor Profits Interest Earning Total
1983 $400,000 $16,710 $416,710
1984 393,000 22,632 415,632
1985 216,000 22,669 238,669
1986 315,000 934 315,934
1987 300,000 0 300,000
1988 300,000 10,948 310,948
1989 300,000 15,103 315,103
1990 300,000 2,467 302,467
1991 300,000 8,887 308,887
1992 400,000 5,842 405,842
1993 (EST) 500,000 10,000 510,000
1994 (EST) 900,0001
10,000 910,000
1
Includes $500,000 from the Capital Improvement Reserve Fund which will be repaid with
1995 liquor profits.
In recent years, the Liquor Store profits have been used to fund the redevelopment of Veterans
Memorial Park and neighborhood parks. There is an ongoing need for these funds as the
neighborhood park facilities and equipment age.
2.1
FEDERAL AND STATE GRANTS
It is the City's policy to explore available sources of federal and state funds and to use these funds
wherever possible. In recent years, the City has received grants from all three levels of
government. In 1992, the City secured Federal and State grants for the expansion of 77th Street.
Additional Federal and State funding is anticipated through the completion of the project in 1995.
MUNICIPAL STATE AID
The State of Minnesota provides funds for both construction and maintenance of certain streets in
Richfield. The policy of the City is to finance traffic control improvements, and to partially
finance street improvements, with municipal state aid construction funds. The state aid
maintenance funds are used for des * grated maintenance purposes. With the completion of
improvements on municipal state aid roadways, construction funds may be transferred to
maintenance. The annual allotment of these funds to the City of Richfield total approximately
1,015,000, with $760,000 for construction and $255,000 for maintenance.
TAX INCREMENT FINANCING
The State Housing and Redevelopment Act established tax increment financing as a method of
financing improvements in a renewal area. This statute enables a local Housing and
Redevelopment Authority or City to finance redevelopment activities and public improvements
through a tax increment program, without federal assistance and without additional burden on
residents' tax dollars. The City currently has eight tax increment financing districts. The
Lyndale /Hub /Nicollet (L /H /N) project and the Interstate /Lyndale /Nicollet (I /L /N) project
redevelopment has been funded in part through tax increment financing. The tax increment
receipts are used to pay the debt service on the City's General Obligation Redevelopment Bonds
and to fund redevelopment activities such as land acquisition, relocation, and demolition.
Remaining debt service on General Obligation Redevelopment Bonds as of December 31, 1993 is
shown on the next page.
2.2