2005-01-26 CC Packet - Laserfiche WebLink

Home Browse Search

Introduction and Purpose of Amendment In 2004, the City of Centerville prepared and approved a Five-Year Capital Improvement Plan (CIP) to guide capital expenditures based on need, priority, fiscal impact and available funds. This CIP is being amended to provide financial support for the construction of a 12,000 square foot joint powers police station to be located in the city of Circle Pines. This joint powers police station is supported by the cities of Centerville (35%), Lexington (30%) and Circle Pines (35%) and has a total cost of $2,365,000. The City of Centerville's portion of this facility is 35% or $827,750. The authority being used to finance the joint police station expenditure is under Minnesota Statute Section 475.521. Under this authority, the City of Centerville must approve the sale of capital improvement bonds by a 3/5ths majority of the membership, hold a public hearing for input, notice the hearing at least 14 days but not more than 28 days prior to the public hearing and have city council approval of the amendment. A reverse referendum is allowable provided that at least 5 percent of votes cast in the last general election requesting a vote on the issuance of bonds have signed a petition and is received by the city clerk within 30 days after the public hearing. A referendum vote on the issuance of the bonds shall then be called. Minnesota Statute 475.521 Use Criteria Minnesota Statute 475.521 establishes criteria for use that includes: condition and need for the project; demand for the improvement; cost of the improvement; availability of public resources; level of overlapping debt; cosUbenefit of alternative uses of funds; operation costs of the proposed improvement, and, options for shared facilities with other cities or local governments. In response to the criteria, the current police station is located at Circle Pines City Hall. This police station is twenty years old and was designed to house six officers. With the creation of the joint powers policing agency and population growth in the member cities, staff has grown to seventeen and the current space is inadequate. The cost of this improvement (Joint Police Station) is $2,365,000 and the City of Centerville's share is $827,750. The City of Centerville has committed to pay an estimated $77,000 for fifteen years as their share of the debt service for the construction of the joint police station. The City of Centerville of has overlapping debt of $11,155,649. The city has a numerous needs but funding the joint police station is the highest priority of the city. The new joint police station will increase operating costs a total of $ 15,000 annually. The new joint police station represents a shared facility with other local governments (cities of Lexington and Circle Pines). Statutory Capital Improvement Plan Financina Limitations Under Minnesota Statute 475.53, generally cities can not incur debt in excess of 2% of the assessor's taxable market value. The City of Centerville's payable 2005 taxable market value is $242,357,000. Consequently, the total outstanding debt can not exceed $4,847,140. As of December 31,2004, the City of Centerville has $ 0 debt subject to the legal debt limit. The City of Centerville's commitment of $827,750 is well under the statutory debt limit of $4,847,140. In addition to this limit, using Minnesota Statute 475.521 without referendum requires that the total amount of principal and interest in anyone year for Capital Improvement Plan activities cannot exceed .05367% of the Assessor's Taxable Market Value for the county. In Anoka County, the current Assessor's Taxable Market Value is $23,601,620,500. Consequently, the capital improvements plan annual principal and interest payment limit in Anoka County under 475.521 is $12,667.151. The City of Centerville's principal and interest payments are estimated to be $ 77,000 annually for a 15 year period.