HomeMy WebLinkAboutOB 1 SPORTS COMPLEX 06-21-93,4 GENDA__
OLD BUSINESS NO. 1
6-21-93
OATE: JUNE 21, 1993
Inter-Corn
. TO:
FROM:
SUBJECT:
HONORABLE M3%YOR Ai~D MEMBERS OF THE CITY COUNCIL
WILLIAM A. HUSTON, CITY MANAGER
FUNDING - SPORTS COMPLEX
RECOMMENDATION:
That, in addition to $1,600,000 currently allocated in the 1992-93
budget, the City Council appropriate the following funds for the sports
complex project:
· Capital Projects Fund $ 569,036
· Park Development Fund $ 812,523
· Equipment Replacement Fund $ 250,000
· 1993-94 and 1994-95 $ 430,000
New Development Fees
BACKGROUND:
The city Council directed that plans for the sports complex be completed
.and that the bid documents provide options for completing the project in
one or two phases. The City Council also directed staff to prepare a
report which identifies how the project can be financed.
FISCAL IMPACT:
The total estimated cost for the project is $3,661,559. Phase I is
$2,584,266 of the total and Phase II is $1,077,293 of the total. To
date, $1,600,000 has been appropriated in the 1992-93 capital projects
fund. The unappropriated shortfall to complete both phases of the
project is $2,061,559.
Funding - Sports Complex
June 21, 1993
Page two
DISCUSSION:
The total estimated cost of $3,661,559 includes all design fees, project
administration fees and construction. The estimates are based on fifty
percent complete working drawings. It can be assumed that by completing
the project in one phase, there will be a savings reflected in the bids.
Based on the year end projections for the 1992-93 budget and taking into
account the draft 1993-94 budget, the following sources and amounts of
funds could be appropriated to cover the total estimated cost of the
project:
· Park Development Fund $ 812,523
This fund is restricted to park
construction and improvement
projects. The principal sources
of revenue are the General Fund
and the New Development Fee on
new construction. The projected
June 30, 1993 balance in this
fund is $812,523.
New Development Fees
The New Development Fee is
applied to new construction
and pledged by City Council
policy to park projects.
The $430,000 amount is based on
the projected fees for fiscal
years 1993-94 and 1994-95.
$ 430,000
Equipment Replacement Fund
The Equipment Replacement Fund
is used to accumulate funds for
the replacement of vehicles and
equipment. The General Fund makes
an annual appropriation to this
fund based on an equipment
replacement and depreciation
schedule. Staff has recently
$ 250,000
Funding - Sports Complex
June 21, 1993
Page three
completed an analysis which
indicates that while the current
charges to the General Fund are
too low, there is currently an
excess fund balance in the
Equipment Replacement Fund. The
draft 1993-94 budget includes
adjusted lease rates to reflect
what the annual charges should
be based on a ten-year schedule
for equipment replacement. The
excess balance could be transferred
to the Capital Projects Fund as a
contribution towards the cost of
the sports complex.
Capital Projects Fund
$ 569,036
The capital projects fund is
a fund established for capital
improvement projects. Its
principal source of revenue has
been the General Fund. There
are no restrictions on the types
of projects that can be financed
through this fund. There is
currently $1,600,000 appropriated
in this fund for the sports complex.
The June 30, 1994 fund balance in
this fund (based on the draft 1993-94
budget) is $3,234,309. Together with
the other amounts set forth above, the
$569,036 appropriation would provide
funds needed to complete the sports
complex in one phase.
The recommendation on how to finance the sports complex is based on
staff's analysis of available funds. There is a policy issue of how
much money should be allocated from one fund vs. another. The City
Council could choose to appropriate the $2,061,559 amount needed to
complete the project entirely from the Capital Projects Fund. However,
by doing that, 64% of the monies in this fund would be allocated for one
-- project. This fund is largely dependent upon transfers from the General
Fund. With the recession and the State using city funds to balance the
State budget, it is increasingly difficult to accumulate monies in the
Capita~ Projects Fund. It is for this reason that staff is recommending
a combination of funding sources.
Funding - Sports Complex
June 21, 1993
Page four
With staff's recommendation, there will be less than $100,000 in the
Park Development Fund by June 30, 1995. The only implication of
appropriating most funds currently in, and to be accumulated in, the
Park Development Fund is the deferral of other potential park projects
or the necessity to utilize Capital Project Funds. This is a policy
rather than a financial issue.
Staff does not believe it would be cost-effective to use any form of
debt financing to cover the cost of the project.
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