2005-02-02 WS All City Committee/Commission Meeting

Home Browse Search

"""lIIIII , ., 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. This amendment to the CIP, and financing of the joint police station, is pursuant to Minnesota Statutes Section 475.521. This statute authorizes the City to finance certain "capital improvements" as defined in the statute. Generally, those improvements are limited to improvements used for a city hall, a p'ublic safety facility, or a public works facility. The term "capital improvement" does include light rail transit facilities, parks, libraries, roads, bridges, or administrative buildings other than a city hall. 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 regarding the bonds and regarding the amended CIP, notice the hearing at least 1~ days but not more than 28 days prior to the public hearing and have city council approval of the amendment. The statute provides for a "reverse referendum" regarding the bonds: if voters equal to at least 5 percent of votes cast in the last general City election sign a petition and deliver it to the city clerk within 30 days after the public hearing, the bonds may not be issued unless approved by the voters. Minnesota Statutes Section 475.521 Capital Improvements Plan Criteria Minnesota Statute 475.521 establishes criteria that must be considered by the City in adopting a CIP under the statute. For the capital improvements to be financed under the plan, the City must consider (1) the condition of existing improvements and need for repair or replacement; (2) likely demand for the improvement; (3) the cost of the improvement; (4) availability of public resources; (5) level of overlapping debt; (6) the relative benefits and costs of alternative uses of funds; (7) operating costs of the proposed improvements, and, (8) 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 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). The attached chart shows planned capital improvements over the 2005 through 2009 period. The chart includes improvements that are beyond the scope of "capital improvement" as defined in Section 475.521, as the City has determined that it is most efficient to integrate the police facility improvements with the City's broader capital improvement plan. Statutory Capital Improvement Plan FinancinQ 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.