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Home My WebLink AboutPS 2018-09-04 Item 2C - Public Safety Plan - 2019-2020 Budget Update�� »u8' ��« Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Peggy McCarthy, Finance Director BY: Vicky Car|mem,Deputy Finance Director CC: Mayor Ekberg DATE: August 15,2018 SUBJECT: Public Safety Plan and City Facilities Fumdm2019-2020 Proposed Budget Updated August 29,2018 ISSUE As provided for in the budget process approved by the Finance Committee, Council Committees will be [8vi8vv\ng budget SeC1iODS prior to review by the full Council. The Public S8[g[v P|8D and City Facilities funds section of the budget is ready for review by the Finance Committee. BACKGROUND The Public S@[8[v Plan fund is used to account for construction costs 8SSOCi318d with the new Justice Center and [8COD8t[UCtiOn of fire St8dODm. Projects in this fund are funded by voter approved debt, DOO-VOiHd debt (LTGO) and dedicated revenue SOU[ceS including [88| eSt8|8 excise tax, fire impact fees, and land sale proceeds. The City Facilities fund accounts for costs 8SSOCi8t8d with major [eCODSL[UCtiOO Of City facilities including the Public VVOrhS shops facility. Projects in this fund are funded by LTGO or other non -voted debt options. DISCUSSION Public Safety Plan Fund. The pn}pOSBd budget reflects updated project costs as presented bySC}J on August 1, 2018. Because fire Station 54w8S removed from the p|8n. soft costs that had been 8UVC8t8d to fire station 54 had to be re8UOC8t8d to the remaining projects. At the end of the biennium, the fund is expected tOhave anending fund balance o|approximately $2.5million. City Facilities fund /PN/ Funding for PW Shops facility in the City Facilities fund include LTGO bond proceeds in 2019 to pVnCh8S8 |GDd for the Public VVOrkS Shops f@Ci|i[v and r80Od8| existing structures to accommodate City staff needs. |tiSanticipated that construction will bRcompleted iD2O2Oand any remaining funds will be transferred t0the public safety plan fund. Updates t0the Financial Framework The financial framework, as presented to the Finance committee on June 5'2O18included issuing LTGC)debt OfS20million iD2O2O. Because Ofchanges intiming Ofexpenditures and reallocating soft costs from fire S18tiOO 54k}the [e[D8iDiDg projects, the City now expects to issue $25 Dli||iOO iD2O1S. Fire impact fee budget has also been increased from $300 thousand to $500 thousand to reflect the iOC[eaSH in the impact fee rates. At the AUOUst 20. 2018 Public S8f8b/CO00ittH8 0RetiOq, the pn3pOS8d bUdqEtfor the Public SafetV Plan and Citv Facilities (PW Shops) funds were presented. Staff was asked to provide (1)afootnote explaining capitalization Ofsupplies and equipment, (2) 8fOOinOHe exp|8iOiDq [8VeOUeS OD the Capital |0Op[OVeOleDt P[OqDl0 pages in qr88t8r INFORMATIONAL MEMO Page 2 (3). hJOƒOOteS 8Xp|8iDiDq the proposed $287thOUs8Od estimate for fire station 54 in 2019, and (4) an explanation for the chanqe in LTGO debt from $20 million to $25 million. (1)Capitalization ufsupplies and equipment Supply line items included in the budqet have been updated to reflect exactly what equipment is bGinq purchased. Bunker q88[and SCBAS were purchased in 2017. PVrCh@S8 Of extrication equipment iSplanned for the UpCOOOiOqbiennium. (2) Capital Improvement P/Dqn]cn(CIF) paq8G—revenues Caption has been updated to correctly state "Fund Balance" (0Costs associated with Fire Station 54 Be|Ovv is e chGrt8Urnnlahzinq costs spent to date On Fire Station 54 as well as the proposed bUdq8tfor 2O19. Summary pfFire Station SACosts (roundad) A&ESorviuea $ 82.000 $ 69,000 $ ' $ 151'000 LandAoq. & related costs 9.000 905.000 914.000 Pnojeut[WOmt 49.008 58.000 107'000 Pre -Construction 500 33.000 33.500 Study toretrofit existing station ' - 297'000 297.000 Atthe July 10, 2018 Public Safety committee OleetOq, discussion was held [eq8rdiDq COn[[8ot amendments k]the Public Safety Plan. Committee members discussed the amendments oSwell as the uDhDOvvO costs of [8trofittiOq EtGdOn 54. Mr. GO|db|8ttstated that preliminary work iS planned tOassess the condition Ofthe station. The preliminary work will build Onpast studies and provide an updated cost estimate for rgtrofittinq the exiEtiDq station. The proposed budqet includes $297thousand for this assessment. Also included iDthe revised budqEtofG1.5million is budqettOdemolish the 8xiGtiDq structure onthe new station 54 site. W1PrIpOsed change in debt from $20million b?$25million Steve E\O|db|att. PWYQAConsultant provided a Public Safety Plan update dated AuquSt9. 2018. In his report, he states that with the deletion of station 54 from the p[0\e{t. Lh8[8 will be a loss of some economy Ofscale ODd8GiqD,construction, and dependent costs for stations 51and 52. The City received updated bUdq8tSfor the Plan 8tthe July 23.2O18Committee Ofthe Whole and, due tOthe removal Ofstation 54.total project costs increased approximately $3million. COSt:h8DqHS are summarized inthe chart below. 34 INFORMATIONAL MEMO Page 3 Summary ofProject Budget Changes (in thousands) Scenario D-20 Year Debt as presented mdJune 11.2O18Work Updated otJuly 23. Session 2018C.O.VV. Change Justice Center $ 68.570 $ 68,530 $ C34 Fire Station 51 12.540 13.272 732 Fire Station 52 17,651 18,610 959 ^ Fire Station 54 143 1.502 1.359 Apparatus &Equipment 15.825 15.825 PVVShops 30.000 30.000 ^Scenario D-20 Year Debt showed abudget for station 54at $143 thousand. The updated budget includes all costs inincurred todate aswell as $297 thousand for a study to retrofit existing station 54. In order to true up the budqet in the next biennium and provide an endinq fund balance to carry forward into the next bUdq5tCyC|8,the 2O19-2D2ObUdq8tproposes adebt issuance Df$25million. It should be noted that, when it becomes necessary to issue the debt in 2019, the Citv can choose tOissue less than the bUdO8t8damount ifthe full g25million iSnot needed. |ncraRSinqthe debt issuance was proposed because i[provides the qrH81Dstf|exibi|ityfor the q8D8[8|fUDd. There are other options available intrue upthe updated budqSt. Some Ofthe options include: * Reduce the proposed bUdqetfor debt issuance tO$23million * Reduce pGP plan costs in Othe[pn]i8(tS wReduce bUdqetfor fire apparatus and equipment • Dedicate additional q8D8[G|fund sources k}the plan Once a decision is reached on the preferred method oftruinq up the 2019'2020 Uudqetfor the Public 8afeh/ Plan fund and Cih/ Facilities fund, a revised proposed budqetvviU be presented to the Committee for review. RECOMMENDATION For information only. ATTACHMENTS