02-17-2004 City Council Study Session PacketCity of Grand Island
Tuesday, February 17, 2004
Study Session Packet
City Council:Mayor:
Jay Vavricek
City Administrator:
Gary Greer
City Clerk:
RaNae Edwards
T
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7:00:00 PM
Council Chambers - City Hall
100 East First Street
Carole Cornelius
Peg Gilbert
Joyce Haase
Margaret Hornady
Robert Meyer
Mitchell Nickerson
Don Pauly
Jackie Pielstick
Scott Walker
Fred Whitesides
City of Grand Island City Council
Call to Order
Pledge of Allegiance
Roll Call
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for Future
Agenda Items form located at the Information Booth. If the issue can be handled administratively without Council
action, notification will be provided. If the item is scheduled for a meeting or study session, notification of the date
will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve time to
speak. Please come forward, state your name and address, and the Agenda topic on which you will be speaking.
MAYOR COMMUNICATION
This is an opportunity for the Mayor to comment on current events, activities, and issues of interest to the community.
City of Grand Island City Council
Item -1
Discussion Concerning Financial Implications of Projects Relative
to 1/2 Cent Sales Tax
Tuesday, February 17, 2004
Study Session
City of Grand Island
Staff Contact: David Springer
City of Grand Island City Council
Council Agenda Memo
From: Gary Greer, City Administrator
Meeting: February 17, 2004
Subject: Financial Implications of Projects Relative to ½ Cent
Sales Tax
Item #’s: 1
Presenter(s): Finance Director David Springer and City Administrator
Gary Greer
Background
On August 27, 2002 the City Council voted to put a measure on the 2004 ballot to
consider a ½ cent sales tax for the purpose of expanding parks and recreational
opportunities, providing for infrastructure, and property tax relief. It was determined that
many important capital projects can not be funded without additional revenue and that the
voters should be given the chance to approve paying for projects such as a new fire
station, library expansion, law enforcement facility with expanded sales tax. A great deal
of discussion has taken place on the possible ballot measure. In November of 2003 a
survey was conducted to receive input from citizens concerning projects which have been
suggested as needed capital projects. 613 respondents prioritized projects in the following
order:
1. Construction of 3rd and Broadwell Underpass
2. Replacement of Pine Street Fire Station
3. Police/Sheriff Public Safety Center Replacement
4. Expansion of the Edith Abbott Library
5. Fire Training Facility
6. Grand Generation Center Renovation
7. Expand Island Oasis/ Replace Lincoln Park Pool
8. Reduction of Train Noise
9. Hike/Bike Trail Expansion
10. Ammunition Plant Recreation Development
11. Northwest Park Pool
In order to continue the education process study sessions were conducted to go more in
depth with the projects. The following projects were studied:
1. January 20th Fire Station, Fire Training Facility, Train Noise
2. February 3rd 3rd & Broadwell Underpass, Aquatics, CAAP Development
Additionally, a fire Sprinkler system was approved for funding for the Grand Generation
Center on February 10th.
During the annual retreat on February 21st the Council will be asked to discuss each
project and begin to narrow in on the final ballot language. On March 9th the final ballot
language will be approved to be sent to the election Commissioner.
The purpose of the February 17th Study Session is to create an understanding of the
financial implications of the proposed projects to help in the process of prioritizing the
use of possible sales tax receipts.
Discussion
Attached is a list of the aforementioned projects with the estimated total costs for each
project. The figures listed include all costs and does not account for grants, cooperative
agreements, or any other financing solutions. The total cost of $47,238,627 is a
staggering figure that would obviously stretch the proceeds of a sales tax too far. Even
though the costs listed are somewhat intimidating, it is important to understand the
probable costs of moving forward. City Administration is prepared to answer any
questions concerning the projects and the elements that are included in the cost estimates.
Attached is also a spreadsheet that indicates the need for additional revenue.
Recommendation
The City Council is asked to review the information and ask any questions that may help
bring focus to the impending decision concerning the ballot question. A full
understanding of the costs associated with the projects will be critical in preparing the
ballot language. Additionally, it will help the Council prioritize the projects in order to
assure that future revenue that may be collected from a sales tax will be used to create the
best return on investment. City Administration recommends that the City Council take
the cost information under advisement and prepare to scale back the projects and cost to a
more workable and reasonable scenario.
In addition to the projects that are on the table for sales tax it is recommended that the
City Council consider the possibility of creating a property tax relief element to the
proposal. The recent Bond election for needed school projects indicated that voters are
not in favor of expanding property tax. Further, the vote may indicate a desire for the
stabilization or possible reduction of property tax asking. Sales tax brings about the
possibility of accomplishing this task.
"GRAND" IMPROVEMENTS
ESTIMATED
PROJECTS COST
1. Fire Station #1 Replacement with 5 drive through bays, land acquisition 3,338,627$
2. Fire Training Center, 41,700sq ft on 35 acres with burn bldg,tower, & lake 7,870,000$
3. Library Expansion, including land acquisition 8,130,000$
4. Lincoln Park Pool Replacement 2,000,000$
5. Northwest Park Pool 1,500,000$
6. Island Oasis Improvements 2,000,000$
7. CAAP Recreation Development 2,000,000$
8. Railroad Underpass, 3rd and Broadwell 12,600,000$
9. Public Safety Center Replacement 3,000,000$
10. Railroad Noise Reduction, 10 crossings @ $200,000 each 2,000,000$
11. Hiker/Biker Trail Expansion, 4 year plan 2,300,000$
12. Grand Generation Facility 500,000$
TOTAL 47,238,627$
NEED FOR ADDITIONAL REVENUE
GENERAL FUND REVENUE
* Revenue growth up only 2.7% from 2000, $612,000
* Property tax and sales tax up 15% and 10% respectively since 2000
* Interest down 49%, State Aid down 32%, Motor Vehicle Tax down 24%
GENERAL FUND EXPENSES
* Operating Expenses up 37.9%, from 2000, over $7 million
* Personnel costs up 23% from 2000, over $3 million
* Economic Development up over $900,000 from 2000
* Reclassification of $1 million of street repairs to General Fund expense from Capital Projects Fund
* $800,000 budgeted this year from reserves for General Fund Capital Equipment replacement
General Fund Transfers Out
General Fund monies needed to make up short-fall in Capital Improvement Fund
Actual Actual Actual Actual Actual Actual Budget
1998 1999 2000 2001 2002 2003 2004
Projects 2,207,000 2,599,000 4,902,000 8,063,000 5,909,000 6,000,000 7,992,000
General Fund Transfers Out 1,610,000 970,000 2,013,000 4,685,000 3,350,000 35,000 2,552,000
Effect Over Time
* General Fund Reserves will shrink as expenses and capital transfers exceed revenue
* Capital Projects will be very limited without an additional source of revenue