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2020-2024 Capital Improvement PlanThis page intentionally left blank. TABLE OF CONTENTS Budget Organization______________________________________________________________________________ 1 Guiding Principles__________________________________________________________________________________2 Executive Summary________________________________________________________________________________3 Capital Project Funds Building Capital Projects ___________________________________________________________________ 11 Street Capital Projects _____________________________________________________________________ 21 Park Capital Projects _______________________________________________________________________ 41 Information Technology Capital Projects________________________________________________ 59 Equipment Capital Projects________________________________________________________________ 81 Enterprise Funds Water Utility______________________________________________________________________________ 113 Sanitary Sewer Utility_____________________________________________________________________ 129 Storm Water Utility _______________________________________________________________________137 Municipal Liquor _________________________________________________________________________ 151 This page intentionally left blank. BUDGET ORGANIZATION Adopted Budget Structure The Adopted 2020 Budget for the City of Fridley, Minnesota (City, Fridley) contains the following volumes and supplemental budget documents and/or appendices. Figure No.1: Budget Structure and Volumes Volume No. Title Description I Budget Overview and Summary A summary of the overall budget containing a brief history of the organization, demographic and economic trends, organizational structure, budget summaries, major budget assumptions and factors, and analysis and discussion of budget decisions along with a review of fund balances and debt service. The summary also includes discussion of common budget terms and information about any underlying assumption as appendices, if needed. II Budget Detail and Financial Reports A detailed review of all budgeted revenues and expenditures, including personnel, materials and supplies. The volume represents the adopted budget for the purposes of budget authority and compliance. III Capital Investment Program (CIP) A summary and detailed review of the various capital budgets and funds of the City including individual projects analysis, debt service and other considerations. The volume represents the adopted budget for the purposes of budget authority and compliance for all capital project funds. The City compiles the 2020–2024 CIP as a separate document. Other Financial Management Policies Each volume and/or section of this budget are adopted in compliance with the various financial management polices as adopted by the City Council. For more information on these polices, please contact the Finance Department. Page 1 GUIDING PRINCIPLES In order to guide and inform the development of the annual budget, the City Council and City Manager rely on a series of guiding principles and documents, principally the Vision Statement, Organizational Values and the strategic plan, known as Focus on Fridley. Vision Statement In 2015, the City Council adopted the following Vision Statement to generally guide the operations, programs and projects of the City. The City Council reaffirmed this Vision Statement in 2019. We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. Organizational Values The City Council also established three primary organizational values to guide the behavior and culture of the organization. In all things, the City shall be: Friendly, Responsive and Driven. Focus of Fridley In 2019, the City Council, through two strategic planning workshops, met to discuss their ideas and thoughts for the City over the next two years. Using these discussions, the City Council eventually compiled a strategic plan known as Focus on Fridley. Along with several specific projects, the City Council identified five strategic goals or “focus areas” to guide other City initiatives and programs. In no particular order, these Focus Areas are: 1.Community Identity and Relationship Building; 2.Public Safety and Environmental Stewardship; 3.Vibrant Neighborhoods and Places; 4.Financial Stability and Commercial Prosperity; and 5.Organizational Excellence. These Focus Areas provide guidance throughout the development of the Adopted 2020 Budget and serve as direction for daily activities and expenditures of the organization. Based on previous practices, the City Council will likely conduct another strategic planning exercise in 2022, which will have a similar impact on the budget development process and planned expenditures. Page 2 EXECUTIVE SUMMARY Introduction Annually, the City Council, upon the recommendation of the City Manager, adopts a five–year Capital Investment Program (CIP) to provide for and maintain public facilities and equipment. As both a budgeting and planning tool, the CIP balances the finite resources of the City with the policy goals and objectives of the City Council. The CIP and the associated capital projects differ from the operating budget as they often represent larger, individual or “one–time” financial obligations that may span several years (e.g., the construction of a new building). Generally, a capital project may include the acquisition of real estate, construction of public improvements and/or the purchase of equipment. Per City policy, the activity or project must exceed $10,000 for inclusion in the CIP generally. Along with the Guiding Principles outlined above, the CIP remains consistent with the actions and plans of the City Council, including, but not limited to: 2040 Comprehensive Plan; Active Transportation Plan; Americans with Disabilities Act (ADA) Transition Plan; Pavement Management; and the University Avenue and Trunk Highway 65 Corridor Development Study. In addition to these plans and studies, the City Council adopts several agreements or contracts, which also modify the CIP. Lastly, the City will likely adopt a new Park System Master Plan in 2020, which will have a significant impact on capital planning and projects for at least the next 10 years. Budget Development Process Through a months–long process, the City, in concert with Anoka County and other agencies, identified various activities and capital projects eligible for inclusion in the CIP. The CIP seeks to both determine the full cost of the project (e.g., design, engineering, construction, inspection, operations) and assign appropriate funding or revenue sources accordingly. Given the limited resources of the City and the typically high cost of capital projects, the City rates all capital project requests using five priority categories. In order, they are: 1.Essential, Health or Safety Mandate; 2.Provide Efficiency or Return on Investment; 3.Provides Long–Term Benefit; 4.External Funding Available; and 5.Future Consideration. Many capital projects may be considered under multiple priority categories. In those situations, the capital project will be assigned the highest, applicable priority rating. The ratings are assigned by staff and are not necessarily reflective of the overall priorities of the CIP as approved by the City Council. Page 3 As mentioned above, the development process for the CIP requires several months of review and analysis. Despite this process, the City may add a capital project at any time based on the level of need (e.g., safety concern, legal mandate). Absent such a change, the CIP development typically follows the following schedule. Document Structure For accounting and budget development purposes, the City divides the CIP into several areas. Generally, there are two types of funds supporting capital projects: 1) Capital Project Funds; and 2) Enterprise Funds. For the purposes of this document, they are further divided into a total ofnine sections as outlined on the next page. April •2020 Outlook and Objectives Workshop with the City Council May •Information Technology (IT) Project and CIP Request Forms Released •Information Technology Project and CIP Request Forms Due to Finance Department June •Proposed 2020 CIP Workshop with City Council •Preliminary 2020 Utility Rates and Fees reviewed by the City Council July •Internal meetings with individual department to review and refine CIP requests August •Internal meetings with the City Manager to review individual CIP requests Sept.•Proposed 2020 Property Tax Levy adopted by the City Council October •Internal meetings with the City Manager to further review individual CIP requests Nov.•Proposed 2020 Utility Rates and Fees reviewed and adopted by the City Council December •Truth-in-Taxation Public Hearing conducted by the City Council •Proposed 2020 Budget and 2020-2024 CIP adopted by the City Council Figure No. 2: Proposed 2020–2024 CIP Development Schedule Page 4 Figure No. 3: CIP Funds Capital Project Funds Enterprise Funds 1.No. 405, Building Capital Projects 1.No. 601, Water Utility 2.No. 406, Street Capital Projects 2.No. 602, Sanitary Sewer Utility 3.No. 407, Park Capital Projects 3.No. 603, Storm Water Utility 4.No. 409, IT Capital Projects 4.No. 609, Municipal Liquor 5.No. 410, Equipment Capital Project More information and analysis concerning each area may be found in their respective section in the latter portions of this 2020–2024 CIP. These sections include discussion about the allowable uses of the fund and/or section, project highlights or comments and further financial analysis. Lastly, only the first year of the 2020–2024 CIP constitutes budget authority or the authorization to expend funds related to the respective capital project, subject to the applicable purchasing regulations of the City. The remaining four years may be considered a plan and subject to change annually as part of the CIP development process. Financial Summary The 2020–2024 CIP contains 110 separate capital projects worksheets with expenditures totaling approximately $47,184,500 over the five–year projection. Over that same time period, the City anticipates about $47,184,500 in revenue. As such, the 2020–2024 CIP remains balances through the five–year planning period. As such, the City may need to examine revenue alternatives for the various funds soon, which may include increases in charges–for–service, the use of debt financing (i.e., issuing bonds) and/or 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 Budget Projection Projection Projection Projection 2020 2021 2022 2023 2024 Figure No. 4: Capital Projects Revenues by Fund Buildings Street Parks IT Projects Capital Equipment Water Sanitary Sewer Storm Water Liquor Provisional Page 5 interfund loans from the Community Investment Fund. It is worth noting that the variance between these amounts may be attributed to the $12,000,000 in Provisional Projects established for the pending Park System Master Plan, which begin in 2021. Figure No. 4 on the previous page outlines the revenue projections in greater detail. With respect to expenditures, the 2020–2024 CIP budgets approximately $11,285,000 for all capital projects across the various funds in 2020. Generally, the CIP expenditures for 2020 remain consistent with previous years, except for the Street Capital Project Fund and Water Utility Fund. In the case of the Street Capital Projects Fund, the City plans to complete a backlog of three street rehabilitation projects in 2020. As for the Water Utility Fund, the City will complete the second year of a two–year water treatment plant improvement project. Figure No. 5 outlines the current year budget and expenditure projection in greater detail. For more detailed analysis regarding any section of the CIP or greater information about a specific capital project, please refer to that CIP section or capital project worksheet, respectively. Provisional Projects. As part of the CIP development process, the City may include Provisional Projects. These capital projects are for planning purposes only and do not confer or establish any official budget authority. Therefore, staff cannot expend any monies related to these planned activities. Community Investment Fund. In 2019, the City Council created the Community Investment (CI) Fund. Generally, the CI Fund shall be used to issue interfund loans to support the cost of long–term improvements to public utilities owned and operated by the City, specifically the Water, 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 Budget Projection Projection Projection Projection 2020 2021 2022 2023 2024 Figure No. 5: Capital Project Expenditures by Fund Buildings Capital Equipment IT Projects Parks Provisional Sanitary Sewer Storm Water Street Water Liquor Page 6 Sanitary Sewer and Storm Water Utilities. Upon repayment, the interest income earned on those interfund loans will be used to support the cost of park and recreation improvements throughout the City. Fund Balance Thresholds. For public utilities, the City attempts to maintain a cash balance of sixth months of operating, debt service and capital costs. Due to the inclusion of capital costs, the cash balance threshold may fluctuate based on the activity of the given expenditure year. For the various funds included in the 2020–2024 CIP, the City attempts to maintain different cash or fund balance thresholds. These thresholds ensure that adequate resources are available to meet cash flow needs for carrying out the regular activities of the fund. The thresholds are based on the average expenditures over a five–year period plus any capital projects planned for a given year. They may also change based on the anticipated activity of the fund in question. These thresholds are outlined in Figure No. 6. Figure No. 6: Fund or Cash Balance Thresholds Fund Threshold Basis Building Capital Projects 35%Fund Balance Street Capital Projects 35% Fund Balance Park Capital Projects 35% Fund Balance IT Capital Projects 35% Fund Balance Equipment Capital Projects 35% Fund Balance Water Utility 50% Cash Balance Sanitary Sewer Utility 50% Cash Balance Storm Water Utility 50% Cash Balance Municipal Liquor 5% Cash Balance Page 7 2020 2021 2022 2023 2024 Budget Projection Projection Projection Projection Total Buildings 516,500 60,000 40,000 - - 616,500 Street 3,443,000 3,737,000 965,000 975,000 1,180,000 10,300,000 Parks 1,457,000 557,000 297,000 510,000 300,000 3,121,000 IT Projects 344,000 174,000 174,000 636,000 354,000 1,682,000 Capital Equipment 1,007,000 902,000 886,000 628,000 982,000 4,405,000 Water 3,002,000 550,000 940,000 1,050,000 2,235,000 7,777,000 Sanitary Sewer 155,000 1,465,000 90,000 695,000 250,000 2,655,000 Storm Water 1,313,000 1,115,000 1,180,000 620,000 300,000 4,528,000 Liquor 47,500 20,000 - - 32,500 100,000 Provisional -3,000,000 3,000,000 3,000,000 3,000,000 12,000,000 Total 11,285,000 11,580,000 7,572,000 8,114,000 8,633,500 47,184,500 Use of Fund Balance (2,318,500)(1,322,300)318,200 378,700 418,300 (2,525,600) Use of Cash (2,749,530) Use of Interfund Loans 1,100,000 2020 2021 2022 2023 2024 Budget Projection Projection Projection Projection Total Buildings 516,500 60,000 40,000 - - 616,500 Street 3,443,000 3,737,000 965,000 975,000 1,180,000 10,300,000 Parks 1,457,000 557,000 297,000 510,000 300,000 3,121,000 IT Projects 344,000 174,000 174,000 636,000 354,000 1,682,000 Capital Equipment 1,007,000 902,000 886,000 628,000 982,000 4,405,000 Water 3,002,000 550,000 940,000 1,050,000 2,235,000 7,777,000 Sanitary Sewer 155,000 1,465,000 90,000 695,000 250,000 2,655,000 Storm Water 1,313,000 1,115,000 1,180,000 620,000 300,000 4,528,000 Liquor 47,500 20,000 - - 32,500 100,000 Provisional -3,000,000 3,000,000 3,000,000 3,000,000 12,000,000 Total 11,285,000 11,580,000 7,572,000 8,114,000 8,633,500 47,184,500 Community Investment Fund 2018A 4,418,624 2019B 2,304,503 2020B 2,043,961 2021P 1,217,733 2022P 1,811,781 2023P 2,417,709 2024P 1,630,567 Expenditures Revenues 2020 Capital Investment Program Budget and 2021 through 2024 Plan Funding Sources and Expenditure Projections Page 8 City of Fridley, Minnesota Capital Investment Program 2020 thru 2024 EXPENDITURES AND SOURCES SUMMARY Department 2020 2021 2022 2023 2024 Total Building Capital Projects 516,500 60,000 40,000 616,500 Equipment Capital Project 1,007,000 902,000 886,000 628,000 982,000 4,405,000 Info. Tech. Cap. Project 344,000 174,000 174,000 636,000 354,000 1,682,000 Municipal Liquor 47,500 20,000 32,500 100,000 Parks Capital Project 1,457,000 557,000 297,000 510,000 300,000 3,121,000 Provisional Projects 3,000,000 3,000,000 3,000,000 3,000,000 12,000,000 Sanitary Sewer Utility 155,000 1,465,000 90,000 695,000 250,000 2,655,000 Storm Water Utility 1,313,000 1,115,000 1,180,000 620,000 300,000 4,528,000 Street Capital Projects 3,443,000 3,737,000 965,000 975,000 1,180,000 10,330,000 Water Utility 3,002,000 550,000 940,000 1,050,000 2,235,000 7,777,000 EXPENDITURE TOTAL 11,285,000 11,580,000 7,572,000 8,114,000 8,633,500 47,184,500 Source 2020 2021 2022 2023 2024 Total Auction Proceeds 23,000 23,000 Building Improve Fund Reserves 464,500 8,000 150,000 622,500 Capital Equip. Fund Reserves 147,000 61,000 136,000 344,000 Federal Aid - Highways 1,245,000 1,245,000 Franchise Fees 10,000 12,000 38,000 43,000 103,000 Grant - Federal 11,000 11,000 Grant - Local 126,000 126,000 Grant - State 812,000 812,000 IT Fund Reserves 74,700 320,000 80,000 474,700 Local Government Aid 895,000 924,000 839,000 835,000 885,000 4,378,000 Municipal Liquor Fees 175,000 175,000 Municipal Liquor Fund Reserves 222,500 195,000 134,000 207,500 759,000 Park Dedication Fees 5,000 5,000 5,000 5,000 5,000 25,000 Parks Capital Improve Fund Reserves 1,227,000 77,000 155,000 1,459,000 Property Tax Levy 57,300 116,000 64,000 237,300 Reimbursement from Other Agencies 95,000 95,000 Sanitary Sewer Utility Fees 155,000 331,000 90,000 471,000 250,000 1,297,000 Sanitary Sewer Utility Fund Reserves 1,134,000 129,000 1,263,000 Special Assessments 1,490,000 650,000 230,000 530,000 330,000 3,230,000 State Aid - Local Routes 270,000 400,000 450,000 440,000 1,560,000 State Aid - State Aid Routes 130,000 190,000 150,000 470,000 Storm Water Utility Fees 202,000 620,000 150,000 620,000 300,000 1,892,000 Storm Water Utility Fund Reserves 1,111,000 495,000 1,030,000 2,636,000 Streets Improve Fund Reserves 883,000 1,186,000 285,000 255,000 260,000 2,869,000 To Be Determined 50,000 3,050,000 3,050,000 3,050,000 3,050,000 12,250,000 Transfer In 207,000 207,000 207,000 175,000 175,000 971,000 Water Utility Fees 222,000 427,000 502,000 580,000 958,000 2,689,000 Water Utility Fund Reserves 2,780,000 123,000 438,000 550,000 1,277,000 5,168,000 SOURCE TOTAL 11,285,000 11,580,000 7,572,000 8,114,000 8,633,500 47,184,500 Page 9 City of Fridley, Minnesota Capital Investment Program 2020 thru 2024 CATEGORY SUMMARY Category 2020 2021 2022 2023 2024 Total CD - Building Inspections 4,000 4,000 CD - Planning 45,000 45,000 CD - Rental Inspections 25,000 25,000 City Manager - General 44,000 10,000 10,000 10,000 10,000 84,000 CSER - Communications 10,000 12,000 38,000 43,000 103,000 CSER - Recreation 1,162,000 402,000 262,000 265,000 265,000 2,356,000 CSER - SNC 20,000 10,000 10,000 40,000 Finance - Assessing 8,000 8,000 Finance - Information Tech 233,000 144,000 144,000 464,000 324,000 1,309,000 Finance - Municipal Liquor 47,500 20,000 32,500 100,000 Provisional Project 3,000,000 3,000,000 3,000,000 3,000,000 12,000,000 Public Safety - Fire 30,000 42,000 85,000 90,000 247,000 Public Safety - Police 300,000 220,000 277,000 362,000 361,000 1,520,000 PW - Engineering 42,000 42,000 PW - Facilities Mgmt 701,500 210,000 40,000 28,000 979,500 PW - Fleet Services 18,000 150,000 168,000 PW - Parks 243,000 280,000 142,000 305,000 155,000 1,125,000 PW - Sanitary Sewer 155,000 1,465,000 90,000 695,000 250,000 2,655,000 PW - Storm Water 1,313,000 1,115,000 1,180,000 620,000 300,000 4,528,000 PW - Streets 3,907,000 4,087,000 1,240,000 1,215,000 1,540,000 11,989,000 PW - Water 3,002,000 550,000 940,000 1,130,000 2,235,000 7,857,000 TOTAL 11,285,000 11,580,000 7,572,000 8,114,000 8,633,500 47,184,500 EXPENDITURE TYPE SUMMARY Expenditure Type 2020 2021 2022 2023 2024 Total Planning/Design 300,000 620,000 450,000 450,000 450,000 2,270,000 Land Acquisition 30,000 30,000 Construction/Maintenance 8,960,000 9,704,000 5,902,000 6,290,000 6,705,000 37,561,000 Equip./Vehicles/Furnishings 1,615,000 1,146,000 1,060,000 1,264,000 1,368,500 6,500,500 Other 410,000 110,000 130,000 110,000 110,000 870,000 TOTAL 11,285,000 11,580,000 7,572,000 8,114,000 8,633,500 47,184,500 Page 10 BUILDING CAPITAL PROJECTS Introduction and Allowable Uses The Building Capital Projects Fund accounts for funds accumulated for the acquisition, construction, improvement and/or major repairs of public buildings, including: the Fridley Civic Campus (i.e., City Hall, Police Station, Fire Station No. 1); the Public Works Building; and other municipal buildings. The City may also use the fund to finance the acquisition of real estate for the City and its component units. The primary funding sources for this fund include LGA and transfer–in or repayment from the Housing and Redevelopment Authority (HRA) for a loan related to the Fridley Civic Campus acquisition. Project Highlights In 2020, the CIP for the Building Capital Projects Fund appropriates $516,500 of budget authority for four capital projects, most notably: •$300,000, to further augment existing efforts to reduce the level of disruptive noiseresulting from the use of the gun range at the Fridley Civic Campus (Project No. 405–21–20101); and •$150,000, to install a dedicated, emergency power generator for the Public Works Building (Project No. 405–31–20150). Financial Summary Due to the planned level of expenditures, the City plans to use approximately $424,500 of fund balance to support the planned capital projects in 2020. Despite this use of fund balance, the Building Capital Projects Fund remains approximately $2,080,200 above the fund balance threshold established for the fund. Based on the projected level of project activity, the fund should remain at or near this fund balance through the end of the five–year projection, as outlined in Figure No. 7 on the following page. Budget Reallocation. Based on current expenditure activity, the 2020–2024 CIP assumes “carry– over” budget authority of $51,500 supporting one capital project: •$51,500, for miscellaneous, post–occupancy, building improvements and modifications forthe Fridley Civic Campus (Project No. 405–17–107). Page 11 The remainder of this page intentionally left blank. $1,800,000 $1,900,000 $2,000,000 $2,100,000 $2,200,000 $2,300,000 $2,400,000 $2,500,000 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 Budget Projection Projection Projection Projection 2020 2021 2022 2023 2024 Figure No. 7: Building Capital Projects Fund Summary Funding Sources Capital Plan Expenditures Ending Fund Balance Page 12 2020 2021 2022 2023 2024 Fund No. 405 Budget Projection Projection Projection Projection Total Funding Sources Local Government Aid 20,000$ 20,000$ 20,000$ 20,000$ 200,000$ 80,000$ Interest on Investments 40,000 30,000 30,000 30,000 30,000 170,000 Transfer In (From HRA)32,000 32,000 32,000 32,000 32,000 160,000 Total Funding Sources 92,000$ 82,000$ 82,000$ 82,000$ 262,000$ 600,000$ Capital Plan Expenditures Total Expenditures 516,500$ 60,000$ 190,000$ -$-$700,000$ Surplus (deficiency) of funding sources over (under) expenditures (424,500)$ 22,000$ (108,000)$ 82,000$ 262,000$ (166,500)$ Estimated Beginning Fund Balance 2,553,661 2,129,161 2,151,161 2,043,161 2,125,161 11,002,305 Estimated Ending Fund Balance 2,129,161$ 2,151,161$ 2,043,161$ 2,125,161$ 2,387,161$ 10,835,805$ Fund Balance Requirement (35% of Average)49,000$ 49,000$ 49,000$ 49,000$ 49,000$ 245,000$ Difference ($)2,080,161 2,102,161 1,994,161 2,076,161 2,338,161 10,757,305 BUILDING CAPITAL PROJECTS FUND 2020 Capital Investment Program Budget and 2021 through 2024 Plan Funding Sources and Expenditure Projections Page 13 Capital Investment Program City of Fridley, Minnesota PROJECTS & FUNDING SOURCES BY DEPARTMENT 2020 2024thru Total2020 2021 2022 2023 2024DepartmentProject # Building Capital Projects 472,500464,500 8,000Building Impr. Fund Reserves 48,00020,000 20,000 8,000Local Government Aid 96,00032,000 32,000 32,000Transfer In 616,500516,500 60,000 40,000Building Capital Projects Total 405-17-107 51,50051,500Civic Campus Security Improvements 405-21-20101 300,000300,000Gun Range Modifications 405-21-22900 40,00040,000Fire Station No. 2 Exterior Maintenance 405-31-20150 150,000150,000Emergency Generator 405-31-20151 15,00015,000City Council Dais Modifications 405-31-21150 60,00060,000Civic Campus Plaza Equipment 616,500516,500 60,000 40,000Building Capital Projects Total 616,500516,500 60,000 40,000Grand Total Page 14 Capital Investment Program City of Fridley, Minnesota Department Building Capital Projects 2020 2024thru Contact Public Works Director Description The project will provide funding for additional safety improvements for the Fridley Civic Campus, including: access changes; paging systems; and other security enhancements. This crane will be attached to the public works building. Project #405-17-107 Justification Many of these improvements were contemplated as part of the Fridley Civic Campus and included in the soft cost budget. Although the City planned to complete these projects by the end of 2019, they could not be finished due to the lead time in obtaining certain materials and equipment. Useful Life 15 years Project Name Civic Campus Security Improvements Category PW - Facilities Mgmt Type Buildings Account No.:405-3115-703100 Total2020 2021 2022 2023 2024Expenditures 51,50051,500Equip./Vehicles/Furnishings 51,500 51,500Total Total2020 2021 2022 2023 2024Funding Sources 51,50051,500Building Impr. Fund Reserves 51,500 51,500Total Page 15 Capital Investment Program City of Fridley, Minnesota Department Building Capital Projects 2020 2024thru Contact Public Works Director Description The Civic Campus currently maintains a gun range, which allows sworn police officers to train and qualify on the firearms necessary for public safety activities. This project provides funds for further noise reduction augmentation to the gun range. Project #405-21-20101 Justification Although the gun range may only be accessed through the lower level of the Public Safety portion of the Civic Campus, it is located directly beneath the City Hall area of the building. At present, the gun range, when in use, produces a disruptive level of noise that impacts City Hall operations. This project will modify the range and reduce the noise to an acceptable level for use during all hours. Useful Life 20 years Project Name Gun Range Modifications Category PW - Facilities Mgmt Type Buildings Account No.:405-2110-701100 Total2020 2021 2022 2023 2024Expenditures 300,000300,000Other 300,000 300,000Total Total2020 2021 2022 2023 2024Funding Sources 300,000300,000Building Impr. Fund Reserves 300,000 300,000Total Page 16 Capital Investment Program City of Fridley, Minnesota Department Building Capital Projects 2020 2024thru Contact Public Works Director Description This proposed investment will provide for major exterior maintenance of Fire Station 2, including brick repair, window repair and door replacement. Project #405-21-22900 Justification This project is required to provide maintenance of the existing structure. Useful Life 10 years Project Name Fire Station No. 2 Exterior Maintenance Category PW - Facilities Mgmt Type Buildings Account No.:405-2190-635100 Total2020 2021 2022 2023 2024Expenditures 40,00040,000Construction/Maintenance 40,000 40,000Total Total2020 2021 2022 2023 2024Funding Sources 8,0008,000Local Government Aid 32,00032,000Transfer In 40,000 40,000Total Page 17 Capital Investment Program City of Fridley, Minnesota Department Building Capital Projects 2020 2024thru Contact Public Works Director Description This project will be for a dedicated emergency generator for the Public Works Garage. It was removed from the original contract for the Fridley Civic Campus as part of the "value engineering." Project #405-31-20150 Justification The City does not have this equipment at this time, and it will be used to maintain backup power to improve the response capabilities of the City during an emergency. Useful Life 20 years Project Name Emergency Generator Category PW - Facilities Mgmt Type Buildings Account No.:405-3115-703100 Total2020 2021 2022 2023 2024Expenditures 150,000150,000Equip./Vehicles/Furnishings 150,000 150,000Total Total2020 2021 2022 2023 2024Funding Sources 98,00098,000Building Impr. Fund Reserves 20,00020,000Local Government Aid 32,00032,000Transfer In 150,000 150,000Total Page 18 Capital Investment Program City of Fridley, Minnesota Department Building Capital Projects 2020 2024thru Contact City Manager Description The project will modify the City Council dais by extending the seating area along the arc of the existing layout and installing two additional lecterns - one on each side of the dais. Project #405-31-20151 Justification The project will improve the function of the City Council dais by improving the visibility of all meeting participants. At present, certain seats on the dais are unable to see other seats, which limits communication. Useful Life 35 years Project Name City Council Dais Modifications Category City Manager - General Type Improvement Account No.:405-3115-704100 Total2020 2021 2022 2023 2024Expenditures 15,00015,000Equip./Vehicles/Furnishings 15,000 15,000Total Total2020 2021 2022 2023 2024Funding Sources 15,00015,000Building Impr. Fund Reserves 15,000 15,000Total Page 19 Capital Investment Program City of Fridley, Minnesota Department Building Capital Projects 2020 2024thru Contact CSER Director Description This project provides for the installation of equipment, such as audio/visual and lighting to improve the use the Civic Campus Plaza. Project #405-31-21150 Justification The Civic Campus hosts an amphitheater. This project will install commonly needed amenities in the area, such as a sound system, to make this facility as useful as possible for City events and third parties. Useful Life 10 years Project Name Civic Campus Plaza Equipment Category PW - Facilities Mgmt Type Buildings Account No.:405-3115-703100 Total2020 2021 2022 2023 2024Expenditures 60,00060,000Equip./Vehicles/Furnishings 60,000 60,000Total Total2020 2021 2022 2023 2024Funding Sources 8,0008,000Building Impr. Fund Reserves 20,00020,000Local Government Aid 32,00032,000Transfer In 60,000 60,000Total Page 20 STREET CAPITAL PROJECTS Introduction and Allowable Uses The Street Capital Projects Fund accounts for funds accumulated for the acquisition, construction, improvement and/or major repairs of transportation infrastructure, including: curb and gutter; bridges; sidewalks; streets; streetlights; traffic signals and signage; and trails. The City may expend funds on such facilities under its jurisdiction or in partnership with an area agency controlling similar assets within the City. The primary funding sources for this fund include Federal grants, local contributions from other agencies (e.g., Anoka County), MSA, special assessments and State grants. Additionally, the operating budget includes significant funding from a variety of sources for ongoing maintenance activities. Project Highlights In 2020, the CIP for the Street Capital Projects Fund appropriates $3,541,200 of budget authority for 10 capital projects, most notably: •$480,000, for ST–2018–01 for the reclamation of various street segment and minor repairson 69th Avenue east of Central Avenue (Project No. 406–18–01); •$430,000, for ST–2019–01 for the reclamation of various street segments and minor repairsEast University Frontage Road from 69th Avenue to 73rd Avenue, 71st Avenue and 69thAvenue east of University Avenue (Project No. 406–19–01); •$850,000, for ST–2020–01 for the rehabilitation of various concrete street segments andminor repairs to utilities in the Western Melody Manor and Springbrook neighborhoods(Project No. 406–31–20001); and •$800,000, for improvement to the University Avenue Corridor (Project No. 406–31–20808). Financial Summary During the initial analysis for the fund in early 2019, the planned capital project expenditures exceeded available funding sources and the projection results in a negative fund balance beginning in 2022 and continuing to about ($412,600) in 2024, or the end of the five–year projection. Based on this analysis and a desire of the City Council not to reduce or eliminate planned capital projects, the City Council reviewed several funding alternatives designed to improve the fund projection, including: 1) the implementation of a sales and use tax; 2) the creation of a street lighting utility; 3) the use of debt (i.e., bonding); and/or 4) levying additional property taxes. As a result of these discussions, the City Council decided upon a hybrid funding alternative, which included the levying of additional property taxes coupled with the reallocation of LGA beginning in 2021. Due to this change in funding strategy, the City now plans to use approximately $556,200 of fund balance to support capital projects in 2020. Despite this use of fund balance, the Street Capital Projects Fund remains approximately $469,300 above the fund balance threshold for the fund at Page 21 the end of 2020. However, it will remain below this level until 2024 upon realization of the new funding strategy. Using these additional monies, the Street Capital Projects Fund maintains a positive fund balance throughout the five–year projection. By 2024, the City projects a fund balance of approximately $1,100,000. Based on the Pavement Management Plan, these monies would be enough to maintain the planned level of activity for the foreseeable future. Additionally, the fund will be in a stronger position to absorb unanticipated costs or additional capital projects as requested by the City Council or the general public. Budget Reallocation. Based on current expenditure activity, the 2020–2024 CIP assumes “carry– over” budget authority of $1,265,000 supporting four capital projects. These amounts may be reflected in the capital projects listed above either in total or in part, including: •$480,000, for ST–2018–01 for the reclamation of various street segment and minor repairson 69th Avenue east of Central Avenue (Project No. 406–18–01); •$430,000, for ST–2019–01 for the reclamation of various street segments and minor repairsEast University Frontage Road from 69th Avenue to 73rd Avenue, 71st Avenue and 69thAvenue east of University Avenue (Project No. 406–19–01); •$300,000, for delayed trail and sidewalk upgrades throughout the City (Project No. 406–31–20021); and •$55,000, for delayed traffic signal and maintenance projects throughout the City (ProjectNo. 406–31–20006). $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 Budget Projection Projection Projection Projection 2020 2021 2022 2023 2024 Figiure No. 8: Street Capital Projects Fund Summary Funding Sources Capital Plan Expenditures Ending Fund Balance Page 22 2020 2021 2022 2023 2024 Fund No. 406 Budget Projection Projection Projection Projection Total Funding Sources Municipal State Aid - State Aid Routes -$ 130,000$ -$ 720,000$ 150,000$ 1,000,000$ Municipal State Aid - Local Routes 670,000 400,000 680,000 - 770,000 2,520,000 Local Government Aid - - 200,000 200,000 200,000 600,000 Federal Highway Funds - 1,245,000 - - - 1,245,000 Other State Grants and Aids 800,000 - - - - 800,000 Local Contribution (City of Columbia Heights)- 126,000 - - - 126,000 Special Assessments 1,490,000 650,000 230,000 530,000 330,000 3,230,000 Interest on Investments 25,000 25,000 25,000 25,000 25,000 125,000 Total Funding Sources 2,985,000$ 2,576,000$ 1,135,000$ 1,475,000$ 1,475,000$ 9,646,000$ Capital Plan Expenditures Total Expenditures 3,541,200$ 3,737,000$ 965,000$ 975,000$ 1,180,000$ 11,788,200$ Surplus (deficiency) of funding sources over (under) expenditures (556,200)$ (1,161,000)$ 170,000$ 500,000$ 295,000$ (752,200)$ Estimated Beginning Fund Balance 1,850,657 1,294,457 133,457 303,457 803,457 4,385,485 Estimated Ending Fund Balance 1,294,457$ 133,457$ 303,457$ 803,457$ 1,098,457$ 3,633,285$ Fund Balance Requirement (35% of Average)825,174$ 825,174$ 825,174$ 825,174$ 825,174$ 825,174$ Difference ($)469,283 (691,717) (521,717) (21,717) 273,283 (191,467) Target 2,442,743 Amount Remaining (1,098,457) CIP Projects to be moved to 2020 Beginning Balance Municipal State Aid - State Aid Routes 851,176 1,181,176 1,381,176 1,711,176 1,321,176 6,445,880 Allocation of Municipal State Aid - State Aid Routes 330,000 330,000 330,000 330,000 330,000 1,650,000 Usage of Municipal State Aid - State Aid Routes - (130,000)- (720,000) (150,000)(1,000,000) Ending Balance of Municipal State Aid - State Aid Routes 1,181,176 1,381,176 1,711,176 1,321,176 1,501,176 7,095,880 Beginning Balance Municipal Local - Local Routes 219,040 9,040 69,040 (150,960)309,040 455,200 Allocation of Municipal Local - Local Routes 460,000 460,000 460,000 460,000 460,000 2,300,000 Usage of Municipal Local - Local Routes (670,000)(400,000)(680,000)- (770,000)(2,520,000) Ending Balance of Municipal Local - Local Routes 9,040 69,040 (150,960)309,040 (960)235,200 Funding Sources and Expenditure Projections 2020 Capital Investment Program Budget and 2021 through 2024 Plan STREET CAPITAL PROJECTS FUND Page 23 Capital Investment Program City of Fridley, Minnesota PROJECTS & FUNDING SOURCES BY DEPARTMENT 2020 2024thru Total2020 2021 2022 2023 2024DepartmentProject # Street Capital Projects 1,245,0001,245,000Federal Aid - Highways 126,000126,000Grant - Local 800,000800,000Grant - State 3,230,0001,490,000 650,000 230,000 530,000 330,000Special Assessments 1,560,000270,000 400,000 450,000 440,000State Aid - Local Routes 470,000130,000 190,000 150,000State Aid - State Aid Routes 2,869,000883,000 1,186,000 285,000 255,000 260,000Streets Impr. Fund Reserves 10,300,0003,443,000 3,737,000 965,000 975,000 1,180,000Street Capital Projects Total 406-18-01 480,000480,000Street Rehabilitation Project (ST 2018-01) 406-31-19001 430,000430,000Street Rehabilitation Project (ST 2019-01) 406-31-20001 850,000850,000Street Rehabilitation Project (ST 2020-01) 406-31-20005 180,00030,000 30,000 60,000 30,000 30,000Traffic Safety Improvement Project 406-31-20006 55,00055,000Traffic Signal Maintenance and Retrofits 406-31-20010 173,000173,000Street Sealing Program 406-31-20021 805,000400,000 100,000 100,000 100,000 105,000Trail and Sidewalk Upgrades 406-31-20800 625,000125,000 125,000 125,000 125,000 125,000ADA Improvements 406-31-20808 800,000800,000University Avenue Corridor Improvements 406-31-21001 1,050,0001,050,000Street Rehabilitation Project (ST 2021-01) 406-31-21021 800,000100,000 700,0007th Street Pedestrian and Bike Trail 406-31-21521 982,000982,00053rd Avenue Safety Project 406-31-21802 750,000750,000Locke Park Pointe Construction 406-31-22001 680,000680,000Street Rehabilitation Project (ST 2022-01) 406-31-23001 720,000720,000Street Rehabilitation Project (ST 2023-01) 406-31-24001 920,000920,000Street Rehabilitation Project (ST 2024-01) 10,300,0003,443,000 3,737,000 965,000 975,000 1,180,000Street Capital Projects Total 10,300,0003,443,000 3,737,000 965,000 975,000 1,180,000Grand Total Page 24 Capital Investment Program City of Fridley, Minnesota Department Street Capital Projects 2020 2024thru Contact Public Works Director Description This project involves the reclamation of various street segments and minor repairs to utilities on 69th Avenue. This project was carried forward from 2018. Project #406-18-01 Justification This project is included in the City's long-range pavement management plan. Bi-annual road ratings have identified candidate segments based on condition; other considerations include age, coordination with other projects, and upgrades needed. Useful Life 25 years Project Name Street Rehabilitation Project (ST 2018-01)Category PW - Streets Type Street Construction Account No.:406-3180-705100 Total2020 2021 2022 2023 2024Expenditures 480,000480,000Construction/Maintenance 480,000 480,000Total Total2020 2021 2022 2023 2024Funding Sources 480,000480,000Special Assessments 480,000 480,000Total Page 25 Capital Investment Program City of Fridley, Minnesota Department Street Capital Projects 2020 2024thru Contact Public Works Director Description project involves the reclamation and resurfacing of various street segments and minor repairs to utilities on East University Frontage Road from 69th Avenue to 73rd Avenue, 71st Avenue and 69th Avenue east of University Avenue. This project was carried forward from 2019. Project #406-31-19001 Justification This project is included in the City's long-range pavement management plan. Bi-annual road ratings have identified candidate segments based on condition; other considerations include age, coordination with other projects, and upgrades needed. Useful Life 25 years Project Name Street Rehabilitation Project (ST 2019-01)Category PW - Streets Type Street Construction Account No.:406-3180-705100 Total2020 2021 2022 2023 2024Expenditures 430,000430,000Construction/Maintenance 430,000 430,000Total Total2020 2021 2022 2023 2024Funding Sources 430,000430,000Special Assessments 430,000 430,000Total Page 26 Capital Investment Program City of Fridley, Minnesota 2020 2024thru Department Street Capital Projects Contact Public Works Director Description This project involves the rehabilitation of various concrete street segments and minor repairs to utilities in the Western Melody Manor and Springbrook neighborhoods. This project cost projection is increased from the prior CIP to reflect construction cost increases seen for projects in 2019. Project #406-31-20001 Justification This project is included in the City's long-range pavement management plan. Bi-annual road ratings have identified candidate segments based on condition; other considerations include age, coordination with other projects and upgrades needed. Useful Life 25 years Project Name Street Rehabilitation Project (ST 2020-01)Category PW - Streets Type Street Construction Account No.:406-3180-705100 Total2020 2021 2022 2023 2024Expenditures 850,000850,000Construction/Maintenance 850,000 850,000Total Total2020 2021 2022 2023 2024Funding Sources 580,000580,000Special Assessments 270,000270,000State Aid - Local Routes 850,000 850,000Total Page 27 Capital Investment Program City of Fridley, Minnesota 2020 2024thru Department Street Capital Projects Contact Public Works Director Description This project involves improvements to traffic safety in cooperation with Anoka County and the Minnesota Department of Transportation (MN/DOT). Project #406-31-20005 Justification The City will initiate minor annual traffic safety improvements as well as seek funding for larger safety improvement projects to be identified in the coming year by staff in conjunction with Anoka County and MN/DOT. Projects may also include traffic calming measures and pedestrian/bicycle safety measures that are determined to be effective during this budgetary time frame. Useful Life 20 years Project Name Traffic Safety Improvement Project Category PW - Streets Type Improvement Account No.:406-3180-635100 Total2020 2021 2022 2023 2024Expenditures 30,00030,000Land Acquisition 150,00030,000 30,000 30,000 30,000 30,000Construction/Maintenance 30,000 30,000 60,000 30,000 30,000 180,000Total Total2020 2021 2022 2023 2024Funding Sources 180,00030,000 30,000 60,000 30,000 30,000Streets Impr. Fund Reserves 30,000 30,000 60,000 30,000 30,000 180,000Total Page 28 Capital Investment Program City of Fridley, Minnesota Department Street Capital Projects 2020 2024thru Contact Public Works Director Description This project involves maintenance, replacement, and upgrades to traffic signals throughout the City. The 2020 project funds the City's cost share of signal repainting and replacement of internally lit signage for two signals. $55,000 was carried forward from 2019. Project #406-31-20006 Justification Traffic signal systems require maintenance of coatings to extend their service life, and maintain safe and efficient intersections throughout the City. Useful Life 15 years Project Name Traffic Signal Maintenance and Retrofits Category PW - Streets Type Improvement Account No.:406-3180-635100 Total2020 2021 2022 2023 2024Expenditures 55,00055,000Construction/Maintenance 55,000 55,000Total Total2020 2021 2022 2023 2024Funding Sources 55,00055,000Streets Impr. Fund Reserves 55,000 55,000Total Page 29 Capital Investment Program City of Fridley, Minnesota Department Street Capital Projects 2020 2024thru Contact Public Works Director Description This project includes chip and crack sealing of City streets on on a ten-year rotation for pavement preservation purposes, this project will move to the general fund in 2021. -The project for 2020 includes Area 3, in the southeast area of Fridley; Project #406-31-20010 Justification This project includes chip and crack sealing of City streets on a ten-year rotation for pavement preservation purposes. Useful Life 10 years Project Name Street Sealing Program Category PW - Streets Type Improvement Account No.:406-3180-635100 Total2020 2021 2022 2023 2024Expenditures 173,000173,000Construction/Maintenance 173,000 173,000Total Total2020 2021 2022 2023 2024Funding Sources 173,000173,000Streets Impr. Fund Reserves 173,000 173,000Total Page 30 Capital Investment Program City of Fridley, Minnesota 2020 2024thru Department Street Capital Projects Contact Public Works Director Description This project involves resurfacing and minor transportation connectivity improvements for the City's walk and trail systems as identified in the City’s Active Transportation Plan. In 2020, the work will provide for the resurfacing for candidate trails on University Avenue near Rice Creek and Medtronic Parkway. $300K was carried forward from 2019. Project #406-31-20021 Justification Trail and walking path resurfacing is needed throughout the City in order to maintain the condition of the multi-modal systems. In addition, connections will be made where most cost-effective. Also, upgrades to current use standards, including ADA will be made where applicable. Useful Life 20 years Project Name Trail and Sidewalk Upgrades Category PW - Streets Type Street Construction Account No.:406-3180-705100 Total2020 2021 2022 2023 2024Expenditures 805,000400,000 100,000 100,000 100,000 105,000Construction/Maintenance 400,000 100,000 100,000 100,000 105,000 805,000Total Total2020 2021 2022 2023 2024Funding Sources 805,000400,000 100,000 100,000 100,000 105,000Streets Impr. Fund Reserves 400,000 100,000 100,000 100,000 105,000 805,000Total Page 31 Capital Investment Program City of Fridley, Minnesota 2020 2024thru Department Street Capital Projects Contact Public Works Director Description The Americans with Disabilities Act (ADA) improvements will follow the adoption of the City’s ADA transition plan to meet requirements for non- compliant pedestrian ramps, sidewalks and trails through the city right-of-way. Project #406-31-20800 Justification The existing pedestrian ramps are currently 13% compliant with the current Public Rights-of-Way Accessibility Guidelines. This project will continue the City's efforts to improve compliance. Useful Life 20 years Project Name ADA Improvements Category PW - Streets Type Improvement Account No.:406-3180-705100 Total2020 2021 2022 2023 2024Expenditures 625,000125,000 125,000 125,000 125,000 125,000Construction/Maintenance 125,000 125,000 125,000 125,000 125,000 625,000Total Total2020 2021 2022 2023 2024Funding Sources 625,000125,000 125,000 125,000 125,000 125,000Streets Impr. Fund Reserves 125,000 125,000 125,000 125,000 125,000 625,000Total Page 32 Capital Investment Program City of Fridley, Minnesota 2020 2024thru Department Street Capital Projects Contact Public Works Director Description This project involves replacement of the University Avenue fence from 37th Avenue to 69th Avenue. Sections of fence will be replaced or not replaced, and alterative buffers may be funded by this project. The project will be accomplished via a cooperative agreement with Mn/DOT and a joint powers agreement with the City of Columbia Heights. The project will be funded by Mn/DOT. Project #406-31-20808 Justification The University Avenue fence is in a state of poor repair. MnDOT has funding for its entire replacement, however in accordance with our corridor visioning process, the project will change to provide alternative buffers or no replacement (only removal) of fence in some segments. Useful Life 20 years Project Name University Avenue Corridor Improvements Category PW - Streets Type Improvement Account No.:406-3180-702100 Total2020 2021 2022 2023 2024Expenditures 800,000800,000Construction/Maintenance 800,000 800,000Total Total2020 2021 2022 2023 2024Funding Sources 800,000800,000Grant - State 800,000 800,000Total Page 33 Capital Investment Program City of Fridley, Minnesota 2020 2024thru Department Street Capital Projects Contact Public Works Director Description This project involves the rehabilitation of various concrete street segments and minor repairs to utilities in the Black Forest, North Innsbruck and South Innsbruck neighborhoods. Project #406-31-21001 Justification This project is included in the City's long-range pavement management plan. Bi-annual road ratings have identified candidate segments based on condition; other considerations include age, coordination with other projects, and upgrades needed. Useful Life 25 years Project Name Street Rehabilitation Project (ST 2021-01)Category PW - Streets Type Street Construction Account No.:406-3180-705100 Total2020 2021 2022 2023 2024Expenditures 1,050,0001,050,000Construction/Maintenance 1,050,000 1,050,000Total Total2020 2021 2022 2023 2024Funding Sources 650,000650,000Special Assessments 400,000400,000State Aid - Local Routes 1,050,000 1,050,000Total Page 34 Capital Investment Program City of Fridley, Minnesota 2020 2024thru Department Street Capital Projects Contact Public Works Director Description This project involves constructing a shared use trail and bicycle lanes on 7th Street from 61st Avenue to 53rd Avenue. Project #406-31-21021 Justification This project will provide additional transportation network connectivity for pedestrians and cyclists from 53rd Avenue to 61st avenue and on 7th Street. It will provide improved access to the Fridley Middle School and High Schools. Useful Life 25 years Project Name 7th Street Pedestrian and Bike Trail Category PW - Streets Type Street Construction Account No.:406-3180-705100 Total2020 2021 2022 2023 2024Expenditures 100,000100,000Planning/Design 700,000700,000Construction/Maintenance 100,000 700,000 800,000Total Total2020 2021 2022 2023 2024Funding Sources 515,000515,000Federal Aid - Highways 130,000130,000State Aid - State Aid Routes 155,000100,000 55,000Streets Impr. Fund Reserves 100,000 700,000 800,000Total Page 35 Capital Investment Program City of Fridley, Minnesota 2020 2024thru Department Street Capital Projects Contact Public Works Director Description This project involves reconstruction of 53rd Avenue west of Central Avenue to provide a safety improvement by access control. A roundabout is planned to allow traffic to maintain convenient access to businesses along this ½-mile stretch of roadway. The City of Fridley will lead the project through a joint powers agreement with the City of Columbia Heights. The project will be funded by a Highway Safety Improvement Program (HSIP) grant along with local match funding. Project #406-31-21521 Justification It is generally recognized that access improvements west of 53rd Avenue are needed to improve safety. A crash analysis shows a very high benefit/cost for the project, and it was competitively selected among other metro safety projects proposed. Useful Life 20 years Project Name 53rd Avenue Safety Project Category PW - Streets Type Street Construction Account No.:406-3180-705100 Total2020 2021 2022 2023 2024Expenditures 170,000170,000Planning/Design 812,000812,000Construction/Maintenance 982,000 982,000Total Total2020 2021 2022 2023 2024Funding Sources 730,000730,000Federal Aid - Highways 126,000126,000Grant - Local 126,000126,000Streets Impr. Fund Reserves 982,000 982,000Total Page 36 Capital Investment Program City of Fridley, Minnesota 2020 2024thru Department Street Capital Projects Contact Public Works Director Description This project involves the construction of a new road from the Locke Park Pointe redevelopment to 73rd Avenue. Project #406-31-21802 Justification This project will provide connection to housing development as traffic increases consistent with the Columbia Arena Redevelopment Plan. Useful Life 35 years Project Name Locke Park Pointe Construction Category PW - Streets Type Improvement Account No.:406-3180-705100 Total2020 2021 2022 2023 2024Expenditures 750,000750,000Construction/Maintenance 750,000 750,000Total Total2020 2021 2022 2023 2024Funding Sources 750,000750,000Streets Impr. Fund Reserves 750,000 750,000Total Page 37 Capital Investment Program City of Fridley, Minnesota 2020 2024thru Department Street Capital Projects Contact Public Works Director Description This project involves the rehabilitation of various concrete street segments and minor repairs to utilities in the Lakeview neighborhood. Project #406-31-22001 Justification This project is consistent with the street pavement preservation program. Sanitary sewer, storm sewer, and water system surveys will need to be completed prior to plan development to determine the extent of repairs needed on the City's utility systems. These costs are approximated in the below estimates. This project will be coordinated with CenterPoint Energy and other private utilities in regard to replacement of their aging systems. Useful Life 25 years Project Name Street Rehabilitation Project (ST 2022-01)Category PW - Streets Type Street Construction Account No.:406-3180-635100 Total2020 2021 2022 2023 2024Expenditures 680,000680,000Construction/Maintenance 680,000 680,000Total Total2020 2021 2022 2023 2024Funding Sources 230,000230,000Special Assessments 450,000450,000State Aid - Local Routes 680,000 680,000Total Page 38 Capital Investment Program City of Fridley, Minnesota 2020 2024thru Department Street Capital Projects Contact Public Works Director Description This project involves the rehabilitation of various concrete street segments and minor repairs to utilities in the South Industrial neighborhood. Project #406-31-23001 Justification This project is consistent with the street pavement preservation program. Sanitary sewer, storm sewer, and water system surveys will need to be completed prior to plan development to determine the extent of repairs needed on the City's utility systems. These costs are approximated in the below estimates. This project will be coordinated with CenterPoint Energy and other private utilities in regard to replacement of their aging systems. Useful Life 25 years Project Name Street Rehabilitation Project (ST 2023-01)Category PW - Streets Type Street Construction Account No.:406-3180-705100 Total2020 2021 2022 2023 2024Expenditures 720,000720,000Construction/Maintenance 720,000 720,000Total Total2020 2021 2022 2023 2024Funding Sources 530,000530,000Special Assessments 190,000190,000State Aid - State Aid Routes 720,000 720,000Total Page 39 Capital Investment Program City of Fridley, Minnesota 2020 2024thru Department Street Capital Projects Contact Public Works Director Description This project involves the rehabilitation of various concrete street segments and minor repairs to utilities in the Hartman and Logan Park neighborhoods. Project #406-31-24001 Justification This project is consistent with the street pavement preservation program. Sewer, storm sewer, and water system surveys will need to be completed prior to plan development to determine the extent of repairs needed on the City's utility systems. These costs are approximated in the below estimates. This project will be coordinated with CenterPoint Energy and other private utilities in regard to replacement of their aging systems. Useful Life 25 years Project Name Street Rehabilitation Project (ST 2024-01)Category PW - Streets Type Street Construction Account No.:406-3180-705100 Total2020 2021 2022 2023 2024Expenditures 920,000920,000Construction/Maintenance 920,000 920,000Total Total2020 2021 2022 2023 2024Funding Sources 330,000330,000Special Assessments 440,000440,000State Aid - Local Routes 150,000150,000State Aid - State Aid Routes 920,000 920,000Total Page 40 PARKS CAPITAL PROJECTS Introduction and Allowable Uses The Park Capital Projects Fund accounts for funds accumulated for the acquisition, construction, improvement and/or major repairs of parks and open spaces maintained by the City, including: community and neighborhood parks; playground and recreation equipment; recreation facilities; trails located in and around park units; and related activities. The primary funding sources for this fund include the Community Investment Fund, LGA, municipal liquor store proceeds, park dedication fees and State grants. The transfers–in from other fund may fluctuate based upon the performance of those funds. Project Highlights In 2020, the CIP for the Park Capital Projects Fund appropriates $1,457,000 of budget authority for 12 capital projects, most notably: •$350,000, for improvement to the park and open space areas at or near the Fridley CivicCampus (Project No. 407–31–19004); •$250,000, to install or replace playground equipment at various community andneighborhood parks (Project No. 407–31–20723); and •$200,000, for to–be– determined Park System Master Plan improvements (Project No. 407–31–20726). Additionally, the Park Capital Projects Fund includes $50,000 of budget authority for possible grant applications (Project No. 407–41–20000). The budget authority may only be expended to support matching requirements for qualified park and open space grants. In the past, the City often reallocated funds from other capital projects to support grant activities. However, this new budget authority will allow the City to maximize external funding without impacting other important capital projects. Financial Summary Due to the planned level of expenditures, the City plans to use approximately $1,212,000 of fund balance to support capital projects in 2020. Despite this use of fund balance, the Park Capital Projects Fund remains approximately $400,000 above the fund balance threshold for the fund. However, with an estimated ending fund balance of about $618,000 in 2020, the Park Capital Project Fund cannot sustain annual appropriations like the 2020 level through 2024, as outlined Figure No. 9 on the following page. Given this level of funding, and based upon the pending Park System Master Plan, the 2020–2024 CIP also includes $3,000,000 of Provisional Projects beginning in 2021. Although the City has not yet identified individual capital projects, it is generally aware of the significant investment required to improve and otherwise maintain the existing Park System. However, since the current fund balance cannot support these anticipated costs, and the City has not yet identified any offsetting Page 41 revenue, the City instead identifies them as provisional to ensure they are at least captured in the financial planning for future years of the CIP. Additionally, beginning in 2020, the City will begin transferring $100,000 annually from the recently created CI Fund to the Park Capital Projects Fund. These funds may be used to support any qualified capital project within the Park System and serve as a meaningful funding source for the foreseeable future. Lastly, in 2020, the Parks Capital Projects Fund will experience a one–time, $125,000 decrease in LGA, which the City reallocated to the Capital Equipment Projects Fund to support the acquisition and replacement of various vehicles and landscaping equipment. The City reallocated these funds as several pieces of equipment will be used to support Park System related activities and needs. However, in order to protect the long–term solvency of the fund, the 2020–2024 CIP assume the LGA funding will be restored in 2021 and returned to its historic level of $125,000 in 2022. Budget Reallocation. Based on current expenditure activity, the 2020–2024 CIP assumes “carry– over” budget authority of $475,000 supporting three capital projects, including: •$200,000, for improvement to the park and open space areas at or near the Fridley CivicCampus (Project No. 407–31–19004); and •$175,000, for the installation of a playground at Locke Park Pointe (Project No. 407–31–20729); •$100,000, to install or replace playground equipment at various community andneighborhood parks (Project No. 407–31–20723). $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 Budget Projection Projection Projection Projection 2020 2021 2022 2023 2024 Figure No. 9: Park Capital Projects Fund Summary Funding Sources Capital Plan Expenditures Ending Fund Balance Page 42 2020 2021 2022 2023 2024 Fund No. 407 Budget Projection Projection Projection Projection Total Funding Sources Local Government Aid -$ 250,000$ 125,000$ 125,000$ 125,000$ 625,000$ Park Dedication Fees 5,000 5,000 5,000 5,000 5,000 25,000 Liquor Store Proceeds (Transfer In)75,000 75,000 75,000 75,000 75,000 375,000 Interest on Investments 15,000 15,000 15,000 15,000 15,000 75,000 To Be Determined (For Grant Matching)50,000 50,000 50,000 50,000 50,000 250,000 Community Investment Fund (Transfer In)100,000 100,000 100,000 100,000 100,000 500,000 Total Funding Sources 245,000$ 495,000$ 370,000$ 370,000$ 370,000$ 1,850,000$ Capital Plan Expenditures Total Expenditures 1,457,000$ 557,000$ 297,000$ 510,000$ 300,000$ 3,121,000$ Surplus (deficiency) of funding sources over (under) expenditures (1,212,000)$ (62,000)$ 73,000$ (140,000)$ 70,000$ (1,271,000)$ Estimated Beginning Fund Balance 1,830,309 618,309 556,309 629,309 489,309 4,123,545 Estimated Ending Fund Balance 618,309$ 556,309$ 629,309$ 489,309$ 559,309$ 2,852,545$ Fund Balance Requirement (35% of Average)218,470$ 218,470$ 218,470$ 218,470$ 218,470$ 1,003,380$ Difference ($)399,839 337,839 410,839 270,839 340,839 3,120,165 Funding Sources To Be Detetermined -$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 12,000,000$ Total Funding Sources -$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 12,000,000$ Capital Plan Expenditures -$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 12,000,000$ Total Expenditures -$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 12,000,000$ Fund Balance Requirement (50% of Average)312,100$ 312,100$ 312,100$ 312,100$ 312,100$ 1,560,500$ Difference ($)306,209 244,209 317,209 177,209 247,209 1,292,045 PARKS CAPITAL PROJECTS FUND Provisional Projects Funding Sources and Expenditure Projections 2020 Capital Investment Program Budget and 2021 through 2024 Plan Page 43 Capital Investment Program City of Fridley, Minnesota PROJECTS & FUNDING SOURCES BY DEPARTMENT 2020 2024thru Total2020 2021 2022 2023 2024DepartmentProject # Parks Capital Project 512,000250,000 67,000 125,000 70,000Local Government Aid 25,0005,000 5,000 5,000 5,000 5,000Park Dedication Fees 1,459,0001,227,000 77,000 155,000Parks Capital Impr. Fund Reserves 250,00050,000 50,000 50,000 50,000 50,000To Be Determined 875,000175,000 175,000 175,000 175,000 175,000Transfer In 3,121,0001,457,000 557,000 297,000 510,000 300,000Parks Capital Project Total 407-31-19004 450,000350,000 100,000Civic Campus Park Improvements 407-31-20389 300,000150,000 150,000SNC Green Roof Completion 407-31-20443 40,00020,000 10,000 10,000Springbrook Park Boardwalk Replacement 407-31-20464 290,00090,000 200,000Parking Lot Resurfacing 407-31-20493 850,000250,000 150,000 150,000 150,000 150,000Playground Equipment Replacement 407-31-20600 250,00050,000 50,000 50,000 50,000 50,000Park Improvement Grant Matching 407-31-20604 250,00050,000 50,000 50,000 50,000 50,000General Park System Improvements 407-31-20605 75,00075,000Moore Lake Picnic Shelter 407-31-20606 200,000200,000Park System Master Plan Improvements 407-31-20609 175,000175,000Locke Park Pointe Playground 407-31-20902 175,00035,000 35,000 35,000 35,000 35,000Court Surfacing and Overlays 407-31-20903 66,00012,000 12,000 12,000 15,000 15,000Park Furnishings 3,121,0001,457,000 557,000 297,000 510,000 300,000Parks Capital Project Total 3,121,0001,457,000 557,000 297,000 510,000 300,000Grand Total Page 44 Capital Investment Program City of Fridley, Minnesota Department Parks Capital Project 2020 2024thru Contact CSER Director Description This project will provide for improvements for the Civic Campus Park, including, but not limited to: amphitheater, trail, bridge, grounds, signage and benches. This project was originally intended to begin in 2019. All $200,000 was carried forward from 2019. Project #407-31-19004 Justification As a continuation of the Fridley Civic Campus project, this project enhances the overall experience and recreational opportunities associated with the areas surrounding the public buildings. Useful Life 20 years Project Name Civic Campus Park Improvements Category CSER - Recreation Type Park Improvements Account No.:407-3160-702100 Total2020 2021 2022 2023 2024Expenditures 450,000350,000 100,000Construction/Maintenance 350,000 100,000 450,000Total Total2020 2021 2022 2023 2024Funding Sources 100,000100,000Local Government Aid 350,000350,000Parks Capital Impr. Fund Reserves 350,000 100,000 450,000Total Page 45 Capital Investment Program City of Fridley, Minnesota Department Parks Capital Project 2020 2024thru Contact CSER Director Description This project provides the funds necessary to finish the partially completed "Green Roof" at the SNC. Project #407-31-20389 Justification At present, the "Green Roof" remains uncompleted. This project will support the remaining cost of the project, which was originally supported by a donation. Useful Life 20 years Project Name SNC Green Roof Completion Category PW - Facilities Mgmt Type Buildings Account No.:407-3160-701100 Total2020 2021 2022 2023 2024Expenditures 300,000150,000 150,000Construction/Maintenance 150,000 150,000 300,000Total Total2020 2021 2022 2023 2024Funding Sources 73,00073,000Local Government Aid 227,000150,000 77,000Parks Capital Impr. Fund Reserves 150,000 150,000 300,000Total Page 46 Capital Investment Program City of Fridley, Minnesota Department Parks Capital Project 2020 2024thru Contact CSER Director Description This project constitutes work to repair and replace trails, bridges and boardwalks at Springbrook Park, home of the Springbrook Nature Center (SNC). Project #407-31-20443 Justification This project includes replacement and repairs to the existing trails, bridges, and boardwalks at Springbrook Park. There are repairs and replacement needed to bring the boardwalks into a safe condition. The 2020 project will provide for replacement of two small trail bridges at the park. Useful Life 15 years Project Name Springbrook Park Boardwalk Replacement Category CSER - SNC Type Park Improvements Account No.:407-3160-635100 Total2020 2021 2022 2023 2024Expenditures 40,00020,000 10,000 10,000Construction/Maintenance 20,000 10,000 10,000 40,000Total Total2020 2021 2022 2023 2024Funding Sources 20,00010,000 10,000Local Government Aid 20,00020,000Parks Capital Impr. Fund Reserves 20,000 10,000 10,000 40,000Total Page 47 Capital Investment Program City of Fridley, Minnesota Department Parks Capital Project 2020 2024thru Contact CSER Director Description This project is for the resurfacing of parking areas throughout the park system, including: -Moore Lake Park in 2020; and -Community Park in 2023. Project #407-31-20464 Justification Certain parking lot surfaces at parks are in need of repair or replacement in order to maintain safe and acceptable condition as well as park service level expectations. Useful Life 15 years Project Name Parking Lot Resurfacing Category PW - Parks Type Park Improvements Account No.:407-3160-702100 Total2020 2021 2022 2023 2024Expenditures 290,00090,000 200,000Construction/Maintenance 90,000 200,000 290,000Total Total2020 2021 2022 2023 2024Funding Sources 115,000115,000Local Government Aid 175,00090,000 85,000Parks Capital Impr. Fund Reserves 90,000 200,000 290,000Total Page 48 Capital Investment Program City of Fridley, Minnesota Department Parks Capital Project 2020 2024thru Contact CSER Director Description This project includes the replacement and installation of playground equipment in the various neighborhood parks. $100,000 was carried forward from 2019. Project #407-31-20493 Justification Playground equipment in the neighborhood parks will need upgrading and replacement to keep the parks attractive and useful for recreation opportunities. Useful Life 10 years Project Name Playground Equipment Replacement Category CSER - Recreation Type Equipment Account No.:407-3160-703100 Total2020 2021 2022 2023 2024Expenditures 850,000250,000 150,000 150,000 150,000 150,000Construction/Maintenance 250,000 150,000 150,000 150,000 150,000 850,000Total Total2020 2021 2022 2023 2024Funding Sources 100,000100,000Parks Capital Impr. Fund Reserves 750,000150,000 150,000 150,000 150,000 150,000Transfer In 250,000 150,000 150,000 150,000 150,000 850,000Total Page 49 Capital Investment Program City of Fridley, Minnesota Department Parks Capital Project 2020 2024thru Contact CSER Director Description This project provides funds to support matching requirements of the various grants identified by the City to support improvements and other changes throughout the park system. Project #407-31-20600 Justification Throughout the year, the City identifies various grant program and funding opportunities to support the park system. This project provides monies to meet such requirements on an as needed basis. Useful Life 10 years Project Name Park Improvement Grant Matching Category CSER - Recreation Type Park Improvements Account No.:407-3160-702100 Total2020 2021 2022 2023 2024Expenditures 250,00050,000 50,000 50,000 50,000 50,000Other 50,000 50,000 50,000 50,000 50,000 250,000Total Total2020 2021 2022 2023 2024Funding Sources 250,00050,000 50,000 50,000 50,000 50,000To Be Determined 50,000 50,000 50,000 50,000 50,000 250,000Total Page 50 Capital Investment Program City of Fridley, Minnesota Department Parks Capital Project 2020 2024thru Contact CSER Director Description This project provides funds to support miscellaneous park and trail system improvements. Project #407-31-20604 Justification Throughout the year, the City identifies miscellaneous improvements or needs throughout the park system. Generally, this project will provide an identified source of funds to support costs associated with these improvements and modifications. Useful Life 10 years Project Name General Park System Improvements Category CSER - Recreation Type Park Improvements Account No.:407-3160-702100 Total2020 2021 2022 2023 2024Expenditures 250,00050,000 50,000 50,000 50,000 50,000Other 50,000 50,000 50,000 50,000 50,000 250,000Total Total2020 2021 2022 2023 2024Funding Sources 75,00025,000 25,000 25,000Local Government Aid 50,00025,000 25,000Parks Capital Impr. Fund Reserves 125,00025,000 25,000 25,000 25,000 25,000Transfer In 50,000 50,000 50,000 50,000 50,000 250,000Total Page 51 Capital Investment Program City of Fridley, Minnesota Department Parks Capital Project 2020 2024thru Contact CSER Director Description This project provides for the construction of a new picnic shelter at Moore Lake Park. This shelter would accommodate 50 to 75 visitors and be centrally located on park grounds. Project #407-31-20605 Justification The recently initiated master plan for Moore Lake Park identified the need for a larger picnic pavilion to accommodate group outings/events at the park. The opportunity for gatherings and social events has been a high priority for uses of this park. Useful Life 15 years Project Name Moore Lake Picnic Shelter Category CSER - Recreation Type Park Improvements Account No.:407-3160-701100 Total2020 2021 2022 2023 2024Expenditures 75,00075,000Construction/Maintenance 75,000 75,000Total Total2020 2021 2022 2023 2024Funding Sources 75,00075,000Parks Capital Impr. Fund Reserves 75,000 75,000Total Page 52 Capital Investment Program City of Fridley, Minnesota Department Parks Capital Project 2020 2024thru Contact CSER Director Description In 2019, the City initiated the development of a Park System Master Plan (Plan), which will identify a series of improvements for the parks and trails located throughout the City. At present, the City has not yet identified individual projects, but staff anticipate approximately $200,000 of expenditures in 2020 to begin planning and design activities associated with the adopted Plan. Project #407-31-20606 Justification Following the formal adoption of the Plan, the City will undertake planning and design efforts to realize projects and other items identified in the Plan development process. Any subsequent project will require independent budget authority and City Council authorization. Useful Life 30 years Project Name Park System Master Plan Improvements Category CSER - Recreation Type Park Improvements Account No.:407-3160-702100 Total2020 2021 2022 2023 2024Expenditures 200,000200,000Planning/Design 200,000 200,000Total Total2020 2021 2022 2023 2024Funding Sources 200,000200,000Parks Capital Impr. Fund Reserves 200,000 200,000Total Page 53 Capital Investment Program City of Fridley, Minnesota Department Parks Capital Project 2020 2024thru Contact CSER Director Description Purchase and installation of new, all-abilities, playground to replace the playground displaced by the Civic Campus development. This project was originally intended to begin in 2019. All $175,000 was carried forward from 2019. Project #407-31-20609 Justification The Civic Campus displaced the playground currently located on the southwest side of the Locke Park. The City and Anoka County, in consoltation with area stakeholders, reached an agreement to relocate a playground to the Southeast Corner. Useful Life 20 years Project Name Locke Park Pointe Playground Category CSER - Recreation Type Equipment Account No.:407-3160-703100 Total2020 2021 2022 2023 2024Expenditures 175,000175,000Construction/Maintenance 175,000 175,000Total Total2020 2021 2022 2023 2024Funding Sources 175,000175,000Parks Capital Impr. Fund Reserves 175,000 175,000Total Page 54 Capital Investment Program City of Fridley, Minnesota Department Parks Capital Project 2020 2024thru Contact CSER Director Description This project provides for improvement and color coating for the various courts and playing sources throughout the park system. Project #407-31-20902 Justification Court resurfacing is needed on the City's basketball and tennis courts with a color coating material. Color coating material needs to be reapplied every 3 to 4 years in order to keep the courts in acceptable playing condition. Useful Life 5 years Project Name Court Surfacing and Overlays Category PW - Parks Type Park Improvements Account No.:407-3160-635100 Total2020 2021 2022 2023 2024Expenditures 175,00035,000 35,000 35,000 35,000 35,000Construction/Maintenance 35,000 35,000 35,000 35,000 35,000 175,000Total Total2020 2021 2022 2023 2024Funding Sources 105,00035,000 35,000 35,000Local Government Aid 70,00035,000 35,000Parks Capital Impr. Fund Reserves 35,000 35,000 35,000 35,000 35,000 175,000Total Page 55 Capital Investment Program City of Fridley, Minnesota Department Parks Capital Project 2020 2024thru Contact CSER Director Description This project consists of selective replacement of picnic tables, park benches, signs, fences and other fixtures throughout the park system. Project #407-31-20903 Justification In order to maintain a safe and enjoyable park system experience, the City must regularly acquire and/or replace various equipment and furnishings. Useful Life 10 years Project Name Park Furnishings Category CSER - Recreation Type Equipment Account No.:407-3160-621130 Total2020 2021 2022 2023 2024Expenditures 66,00012,000 12,000 12,000 15,000 15,000Construction/Maintenance 12,000 12,000 12,000 15,000 15,000 66,000Total Total2020 2021 2022 2023 2024Funding Sources 24,0007,000 7,000 10,000Local Government Aid 25,0005,000 5,000 5,000 5,000 5,000Park Dedication Fees 17,0007,000 10,000Parks Capital Impr. Fund Reserves 12,000 12,000 12,000 15,000 15,000 66,000Total Page 56 Capital Investment Program City of Fridley, Minnesota Department Provisional Projects 2020 2024thru Contact CSER Director Description In 2019, the City initiated the development of a Park System Master Plan (Plan), which will identify a series of improvements for the parks and trails located throughout the City. At present, the City has not yet identified individual projects, but staff anticipate the cost of the total Plan to range from $20,000,000 to $30,000,000 over a ten year period. The City does not anticipate major expenditures until 2021, after the formal adoption of the Plan. Project #000-41-0000 Justification This is a provisional project, which allows the City to indicate an intention to expend funds through the Capital Investment Program, but does not identify funding sources of the sequencing of particular projects or activities. Useful Life 30 years Project Name Park System Master Plan, Provisional Improvements Category Provisional Project Type Provisional Account No.: Total2020 2021 2022 2023 2024Expenditures 1,800,000450,000 450,000 450,000 450,000Planning/Design 10,200,0002,550,000 2,550,000 2,550,000 2,550,000Construction/Maintenance 3,000,000 3,000,000 3,000,000 3,000,000 12,000,000Total Total2020 2021 2022 2023 2024Funding Sources 12,000,0003,000,000 3,000,000 3,000,000 3,000,000To Be Determined 3,000,000 3,000,000 3,000,000 3,000,000 12,000,000Total Page 57 This page intentionally left blank. Page 58 INFORMATION TECHNOLOGY CAPITAL PROJECTS Introduction and Allowable Uses The IT Capital Projects Fund accounts for funds accumulated for the acquisition, expansion, improvement, replacement and/or major repairs of IT resources and systems, including: computers; enterprise–level or major software; networking equipment; servers; and other significant hardware. The IT Capital Projects Fund may not support ongoing IT costs or operations, such as licensing and maintenance fees. The primary funding sources for this fund include LGA, property taxes and State grants. At present, no other CIP section receives property tax support for its activities or projects. Project Highlights In 2020, the CIP for the IT Capital Projects Fund appropriates $344,000 of budget authority for 14 capital projects, most notably: •$138,000, for the regular replacement of various computers, servers, network equipmentand peripheral devices as well as the purchase of new equipment as determined by theannual IT Project Schedule and associated three–year strategic plan (Project No. 409–13–20300); •$40,000, for the replacement of a “back–up” server and auxiliary storage for City data andsoftware (Project No. 409–12–20308); and •$30,000, to replace the existing network firewall system to maintain the safety and securityinternal City systems from external threats (Project No. 409–13–20331). In addition to these activities, the IT Capital Projects Fund also supports five capital projects below the $10,000 cost threshold typically required for the CIP. Although these capital projects do not meet the requirement, they are reflected in the CIP to ensure appropriate budget authority, and to allow the IT Division to control their implementation consistent with the IT System Principles as authorized by City Manager in 2019. In future years, the City plans to combine these types of activities into a single miscellaneous capital project. Financial Summary Due to the planned level of expenditures, the City plans to use approximately $71,300 of fund balance to support capital projects in 2020. Despite this use of fund balance, the IT Capital Projects Fund remains approximately $137,200 above the fund balance threshold for the fund. However, based on these planned expenditures, the fund will fail to meet the fund balance threshold beginning in 2023, and continue to decline to approximately $25,300 of fund balance by the end of 2024. Generally, the decline in fund balance may be principally attributed to the planned purchase of physical and virtual server equipment and software in 2023 and 2024, Page 59 respectively. Figure No. 10 outlines the planned activities and corresponding change in fund balance. Given this projected decreased in fund balance, the 2020–2024 CIP reallocates approximately $127,600 of LGA from the General Fund and other capital project funds to support planned projects for a total of $200,000 in 2020. Additionally, the City Council certified a five percent increase in the property tax levy for the IT Capital Project Fund and will likely consider similar changes in future years to provide the necessary financial resources to support IT infrastructure needs. Budget Reallocation. Based on current expenditure activity, the 2020–2024 CIP assumes no “carry–over” budget authority for 2020 in the IT Capital Project Fund. $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 Budget Projection Projection Projection Projection 2020 2021 2022 2023 2024 Figure No. 10: IT Capital Projects Fund Summary Funding Sources Capital Plan Expenditures Ending Fund Balance Page 60 2020 2021 2022 2023 2024 Fund No. 409 Budget Projection Projection Projection Projection Total Funding Sources Property Taxes 58,700$ 60,200$ 61,700$ 63,200$ 64,800$ 308,600$ Local Government Aid 200,000 200,000 200,000 200,000 200,000 1,000,000 State Grant 12,000 - - - - 12,000 Interest on Investments 2,000 2,000 2,000 2,000 2,000 10,000 Total Funding Sources 272,700$ 262,200$ 263,700$ 265,200$ 266,800$ 1,330,600$ Capital Plan Expenditures Total Expenditures 344,000$ 174,000$ 174,000$ 636,000$ 354,000$ 1,682,000$ Surplus (deficiency) of funding sources over (under) expenditures (71,300)$ 88,200$ 89,700$ (370,800)$ (87,200)$ (351,400)$ Estimated Beginning Fund Balance 376,669 305,369 393,569 483,269 112,469 1,671,345 Estimated Ending Fund Balance 305,369$ 393,569$ 483,269$ 112,469$ 25,269$ 1,319,945$ Fund Balance Requirement (35% of Average)168,200$ 168,200$ 168,200$ 168,200$ 168,200$ 841,000$ Difference ($)137,169 225,369 315,069 (55,731) (142,931) 478,945 INFORMATION TECHNOLOGY CAPITAL PROJECTS FUND 2020 Capital Investment Program Budget and 2021 through 2024 Plan Funding Sources and Expenditure Projections Page 61 Capital Investment Program City of Fridley, Minnesota PROJECTS & FUNDING SOURCES BY DEPARTMENT 2020 2024thru Total2020 2021 2022 2023 2024DepartmentProject # Info. Tech. Cap. Project 12,00012,000Grant - State 474,70074,700 320,000 80,000IT Fund Reserves 958,000200,000 174,000 174,000 200,000 210,000Local Government Aid 237,30057,300 116,000 64,000Property Tax Levy 1,682,000344,000 174,000 174,000 636,000 354,000Info. Tech. Cap. Project Total 409-13-19008 20,00020,000Code Enforcement Software Replacement 409-13-20001 714,000138,000 144,000 144,000 144,000 144,000Technology Purchases and Upgrades 409-13-20004 60,00020,000 10,000 10,000 10,000 10,000Laserfiche Expansion 409-13-20300 30,00030,000Firewall Replacement 409-13-20301 9,0009,000Agenda Management 409-13-20302 8,0008,000Fleet Service Tablets 409-13-20303 8,0008,000Assessing Technology 409-13-20304 10,00010,000Public Works Vehicle Telematics 409-13-20305 4,0004,000Building Plan Review Software 409-13-20306 12,00012,000Project Management Software 409-13-20307 242,00020,000 20,000 20,000 162,000 20,000Squad Vehicle Computer and Printer Replacement 409-13-20308 40,00040,000Back-Up Server Replacement 409-13-20309 20,00020,000E-Mail Security Replacement 409-13-20330 5,0005,000Remote Site Firewall Replacement 409-13-23002 70,00070,000Wi-Fi Access Point Replacement 409-13-23300 250,000250,000Network Switch Replacement 409-13-24300 180,000180,000VSAN Replacement 1,682,000344,000 174,000 174,000 636,000 354,000Info. Tech. Cap. Project Total 1,682,000344,000 174,000 174,000 636,000 354,000Grand Total Page 62 Capital Investment Program City of Fridley, Minnesota Department Info. Tech. Cap. Proj. 2020 2024thru Contact Finance Director Description The project will support the replacement and upgrade of the code enforcement software currently used by the Planning Division of the Community Development Department. Project #409-13-19008 Justification The current code enforcement software was custom written for the City and is now obsolete. It is depedent on outdated third party software, does not allow staff mobility or remote access, nor does it provide any public accessibility. Its continued use is preventing Planning Division staff from being updated to current versions of other software. Useful Life 5 years Project Name Code Enforcement Software Replacement Category CD - Planning Type Technology Account No.:409-1330-704100 Total2020 2021 2022 2023 2024Expenditures 20,00020,000Equip./Vehicles/Furnishings 20,000 20,000Total Total2020 2021 2022 2023 2024Funding Sources 20,00020,000Local Government Aid 20,000 20,000Total Page 63 Capital Investment Program City of Fridley, Minnesota Department Info. Tech. Cap. Proj. 2020 2024thru Contact Finance Director Description This project provides funding for the regular replacement of computers, including desktops, laptops and servers, local area network equipment, printers, peripheral devices, telecommunication improvements, and software over the next 5 years. Also, it provides for the purchase of new equipment and software that serves the City as a whole. Project #409-13-20001 Justification The City requires the systematic maintenance and upgrading of computers, network equipment, printers, peripheral devices and software on a regular basis. Generally, the City replaces equipment of the following schedule: -Most PCs are on a four-year replacement cycle; -Laptops used in difficult environments are replaced every three years; -Copiers and printers are eligible for replacement every four to five years; and -Network equipment, including servers and LAN/WAN hardware, are eligible for replacement every four to five years. Useful Life 5 years Project Name Technology Purchases and Upgrades Category Finance - Information Tech Type Technology Account No.:409-1330-621130 Total2020 2021 2022 2023 2024Expenditures 714,000138,000 144,000 144,000 144,000 144,000Equip./Vehicles/Furnishings 138,000 144,000 144,000 144,000 144,000 714,000Total Total2020 2021 2022 2023 2024Funding Sources 130,70050,700 80,000IT Fund Reserves 346,00030,000 144,000 144,000 28,000Local Government Aid 237,30057,300 116,000 64,000Property Tax Levy 138,000 144,000 144,000 144,000 144,000 714,000Total Page 64 Capital Investment Program City of Fridley, Minnesota Department Info. Tech. Cap. Proj. 2020 2024thru Contact Finance Director Description This project will continue the effort to expand and improve the City's document imaging system to improve the efficiency of business processes, provide easier access to important information, improve retrieval times and increase the productivity of various departments. Project #409-13-20004 Justification Ongoing project to expand the document imaging system into additional documents types, build additional workflow processes, and provide further improvements. In addition, the City will be able to leverage the ability of the City’s new financial system to integrate with document imaging archives. Useful Life 5 years Project Name Laserfiche Expansion Category City Manager - General Type Technology Account No.:409-1330-635100 Total2020 2021 2022 2023 2024Expenditures 60,00020,000 10,000 10,000 10,000 10,000Equip./Vehicles/Furnishings 20,000 10,000 10,000 10,000 10,000 60,000Total Total2020 2021 2022 2023 2024Funding Sources 60,00020,000 10,000 10,000 10,000 10,000Local Government Aid 20,000 10,000 10,000 10,000 10,000 60,000Total Page 65 Capital Investment Program City of Fridley, Minnesota Department Info. Tech. Cap. Proj. 2020 2024thru Contact Finance Director Description The project supports the replacement of the City's network firewall, which performs multiple security functions, including protecting internal City systems from external hackers, providing first-ring anti-virus protection, and filtering outbound web traffic based on content. Project #409-13-20300 Justification The City's Watchguard firewall system will reach the end of its useful life in 2020. As technology changes, and hacking becomes more sophisticated, security technology must be kept up to date in order to continue to protect the City's information assets. Firewalls and other networking systems also need to keep pace with the increasing bandwidth needs of users. Useful Life 5 years Project Name Firewall Replacement Category Finance - Information Tech Type Technology Account No.:409-1330-704100 Total2020 2021 2022 2023 2024Expenditures 30,00030,000Equip./Vehicles/Furnishings 30,000 30,000Total Total2020 2021 2022 2023 2024Funding Sources 30,00030,000Local Government Aid 30,000 30,000Total Page 66 Capital Investment Program City of Fridley, Minnesota Department Info. Tech. Cap. Proj. 2020 2024thru Contact Finance Director Description Implement a paperless system for creating Council/Commission memos, meeting packets and minutes. This system would create documents and allow them to be proofed, edited, and organized electronically and posted on the City website for the employees and public to view. Project #409-13-20301 Justification The goal is to both streamline and standardize the internal agenda creation processes, make agendas more transparent as they are created, as well as make them more accessible and useful to the public and to the City’s legislative bodies. The system will save significant staff time throughout the City and will provide greater service to the community. Useful Life 5 years Project Name Agenda Management Category City Manager - General Type Technology Account No.:409-1330-635100 Total2020 2021 2022 2023 2024Expenditures 9,0009,000Equip./Vehicles/Furnishings 9,000 9,000Total Total2020 2021 2022 2023 2024Funding Sources 5,0005,000IT Fund Reserves 4,0004,000Local Government Aid 9,000 9,000Total Page 67 Capital Investment Program City of Fridley, Minnesota Department Info. Tech. Cap. Proj. 2020 2024thru Contact Finance Director Description This project will provide for the purchase of three new tablets for Fleet Services Division staff. Project #409-13-20302 Justification In the past, Fleet Services Division staff utilized "second-hand" tablets, but they are now well-used and no longer able to function optimally. Useful Life 5 years Project Name Fleet Service Tablets Category PW - Fleet Services Type Equipment Account No.:409-1330-621130 Total2020 2021 2022 2023 2024Expenditures 8,0008,000Equip./Vehicles/Furnishings 8,000 8,000Total Total2020 2021 2022 2023 2024Funding Sources 8,0008,000Local Government Aid 8,000 8,000Total Page 68 Capital Investment Program City of Fridley, Minnesota Department Info. Tech. Cap. Proj. 2020 2024thru Contact Finance Director Description This project is for the purchase of two handheld tablets (iPad) with connectivity to the County Assessing system. Project #409-13-20303 Justification Anoka County is in the process of implementing a new assessing system in 2017 - 2018. This new system will allow staff to update and record their field work directing into the system with the use of tablets. Useful Life 5 years Project Name Assessing Technology Category Finance - Assessing Type Technology Account No.:409-1330-621130 Total2020 2021 2022 2023 2024Expenditures 8,0008,000Equip./Vehicles/Furnishings 8,000 8,000Total Total2020 2021 2022 2023 2024Funding Sources 8,0008,000Local Government Aid 8,000 8,000Total Page 69 Capital Investment Program City of Fridley, Minnesota Department Info. Tech. Cap. Proj. 2020 2024thru Contact Finance Director Description This project will provide vehicle telematics for four additional plow trucks, outfitting all of the equipment on the Public Works fleet. Additionally, the project will include software to monitor the location and status of fleet vehicles. Project #409-13-20304 Justification The project would improve the service delivery by enabling the remote monitoring of fleet vehicles during snow events and street sweeping, among other activities. It would also provide remote information regarding vehicle performance and maintenance. Useful Life 5 years Project Name Public Works Vehicle Telematics Category PW - Fleet Services Type Equipment Account No.:409-1330-621130 Total2020 2021 2022 2023 2024Expenditures 10,00010,000Equip./Vehicles/Furnishings 10,000 10,000Total Total2020 2021 2022 2023 2024Funding Sources 10,00010,000Local Government Aid 10,000 10,000Total Page 70 Capital Investment Program City of Fridley, Minnesota Department Info. Tech. Cap. Proj. 2020 2024thru Contact Finance Director Description This project supports the purchase and implementation of a plan review software package, which would be shared by multiple departments, including Community Development, Public Safety and Public Works. Project #409-13-20305 Justification This type of software is common among contractors, and would expedite the notice and review of submittals and changes on projects reviewed by the various departments. Useful Life 5 years Project Name Building Plan Review Software Category CD - Building Inspections Type Technology Account No.:409-1330-621330 Total2020 2021 2022 2023 2024Expenditures 4,0004,000Equip./Vehicles/Furnishings 4,000 4,000Total Total2020 2021 2022 2023 2024Funding Sources 4,0004,000IT Fund Reserves 4,000 4,000Total Page 71 Capital Investment Program City of Fridley, Minnesota Department Info. Tech. Cap. Proj. 2020 2024thru Contact Finance Director Description This project will provide field management software for the Engineering Division staff and inspectors. Project #409-13-20306 Justification The software would improve service delivery by providing standardization of tracking, logging, inspection and compliance formwork while in the field. The project cost would also be eligible for reimbursement through Municipal State Aid. Useful Life 5 years Project Name Project Management Software Category PW - Engineering Type Technology Account No.:409-1330-621130 Total2020 2021 2022 2023 2024Expenditures 12,00012,000Equip./Vehicles/Furnishings 12,000 12,000Total Total2020 2021 2022 2023 2024Funding Sources 12,00012,000Grant - State 12,000 12,000Total Page 72 Capital Investment Program City of Fridley, Minnesota Department Info. Tech. Cap. Proj. 2020 2024thru Contact Finance Director Description This project supports the replacement of squad vehicle computers and printers. These machines were previously purchased as part of the Capital Equipment Plan; however, after discussion with Information Technology (IT) staff, it was determined that they should fall under the IT CIP. Project #409-13-20307 Justification Each year four police squad vehicle computers and printers must be replaced to keep the fleet current with technology and replace aging equipment. Useful Life 5 years Project Name Squad Vehicle Computer and Printer Replacement Category Public Safety - Police Type Technology Account No.:409-1330-621130 Total2020 2021 2022 2023 2024Expenditures 242,00020,000 20,000 20,000 162,000 20,000Equip./Vehicles/Furnishings 20,000 20,000 20,000 162,000 20,000 242,000Total Total2020 2021 2022 2023 2024Funding Sources 242,00020,000 20,000 20,000 162,000 20,000Local Government Aid 20,000 20,000 20,000 162,000 20,000 242,000Total Page 73 Capital Investment Program City of Fridley, Minnesota Department Info. Tech. Cap. Proj. 2020 2024thru Contact Finance Director Description The project will replace the server and auxilary storage that currently backs up user and system data throughout the city. This includes the replacement of both the hardware and software as necessary. Project #409-13-20308 Justification The current back-up server will reach the end of its useful life in 2020 and will no longer be supported by the hardware vendor. Also, best practice backup methodologies have changed and the City would like to update our processes to include these changes. Useful Life 5 years Project Name Back-Up Server Replacement Category Finance - Information Tech Type Technology Account No.:409-1330-704100 Total2020 2021 2022 2023 2024Expenditures 40,00040,000Equip./Vehicles/Furnishings 40,000 40,000Total Total2020 2021 2022 2023 2024Funding Sources 10,00010,000IT Fund Reserves 30,00030,000Local Government Aid 40,000 40,000Total Page 74 Capital Investment Program City of Fridley, Minnesota Department Info. Tech. Cap. Proj. 2020 2024thru Contact Finance Director Description This project will support the replacement of the Barracuda email security gateway. Project #409-13-20309 Justification The current Barracuda system is under-powered, and changes the manufacturer has to the system do not make it function as well in the City's environment as previous iterations. This project would research replacement products and implement the best solution for the City. Useful Life 5 years Project Name E-Mail Security Replacement Category Finance - Information Tech Type Technology Account No.:409-1330-704100 Total2020 2021 2022 2023 2024Expenditures 20,00020,000Equip./Vehicles/Furnishings 20,000 20,000Total Total2020 2021 2022 2023 2024Funding Sources 20,00020,000Local Government Aid 20,000 20,000Total Page 75 Capital Investment Program City of Fridley, Minnesota Department Info. Tech. Cap. Proj. 2020 2024thru Contact Finance Director Description This project will provide for the replacement of firewalls that protect the Fridley Liquor stores and Treatment Plant No. 3. Project #409-13-20330 Justification In place firewalls have reach their end of life and are no longer supported by the manufacturer. The current firewalls also do not provide the full range of services each site requires. Useful Life 5 years Project Name Remote Site Firewall Replacement Category Finance - Information Tech Type Technology Account No.:409-1330-621130 Total2020 2021 2022 2023 2024Expenditures 5,0005,000Equip./Vehicles/Furnishings 5,000 5,000Total Total2020 2021 2022 2023 2024Funding Sources 5,0005,000IT Fund Reserves 5,000 5,000Total Page 76 Capital Investment Program City of Fridley, Minnesota Department Info. Tech. Cap. Proj. 2020 2024thru Contact Finance Director Description This project supports the replacement of Wi-Fi access points throughout City Hall and remote City locations. Project #409-13-23002 Justification The City’s current Wi-Fi access points were purchased between 2016 and 2018, and will be at their end-of-life by 2023. Replacement of the access points will be necessary to maintain the security and integrity of the system, to continue to provide the level of service that City staff requires, and to implement future Wi-Fi speed and reliability improvements. Useful Life 5 years Project Name Wi-Fi Access Point Replacement Category Finance - Information Tech Type Equipment Account No.:409-1330-704100 Total2020 2021 2022 2023 2024Expenditures 70,00070,000Equip./Vehicles/Furnishings 70,000 70,000Total Total2020 2021 2022 2023 2024Funding Sources 70,00070,000IT Fund Reserves 70,000 70,000Total Page 77 Capital Investment Program City of Fridley, Minnesota Department Info. Tech. Cap. Proj. 2020 2024thru Contact Finance Director Description Replacement of the City's network switching infrastructure, which is the foundation of all informational technology connectivity in the City. Project #409-13-23300 Justification The City's network switch infrastructure was upgraded as part of the Civic Campus project in 2018 and, as of 2023, the equipment will be nearing its end-of-life. At that time, a determination will need to be made about upgrading the equipment to facilitate technology changes, bandwidth concerns, security issues and maintenance availability. Useful Life 5 years Project Name Network Switch Replacement Category Finance - Information Tech Type Technology Account No.:409-1330-704100 Total2020 2021 2022 2023 2024Expenditures 250,000250,000Equip./Vehicles/Furnishings 250,000 250,000Total Total2020 2021 2022 2023 2024Funding Sources 250,000250,000IT Fund Reserves 250,000 250,000Total Page 78 Capital Investment Program City of Fridley, Minnesota Department Info. Tech. Cap. Proj. 2020 2024thru Contact Finance Director Description Replacement and upgrade of City's virtual hosting environment. Project #409-13-24300 Justification The City's current virtual environment consists of a three-host, virtual storage network (VSAN). The physical servers that make up this environment will be at end-of-life in 2024, and the City will no longer be able to purchase maintenance agreements for them. These servers host important information resources and must be operational without interruption, so hardware maintenance is critical in the case of failure. Useful Life 10 years Project Name VSAN Replacement Category Finance - Information Tech Type Unassigned Account No.:409-1330-704100 Total2020 2021 2022 2023 2024Expenditures 180,000180,000Equip./Vehicles/Furnishings 180,000 180,000Total Total2020 2021 2022 2023 2024Funding Sources 170,000170,000Local Government Aid 170,000 170,000Total Page 79 This page intentionally left blank. Page 80 EQUIPMENT CAPITAL PROJECTS Introduction and Allowable Uses The Equipment Capital Projects Fund, also known as the Capital Equipment Program (CEP) accounts for funds accumulated for the acquisition, replacement and/or major repairs of larger or more expensive equipment, including: public works and public safety vehicles and equipment; parks and landscaping equipment; and other major equipment needs as determined by the City Council. The primary funding sources for this fund includes auction proceeds, Federal grants, LGA, municipal liquor store proceeds and utility or franchise fee (if applicable). Additionally, the City no longer makes use of equipment certificates or other forms of debt to finance the acquisition or replacement of equipment. Unlike the other sections of the CIP, the CEP may reference other capital project or enterprise funds as funding sources to support the acquisition or replacement of vehicles and equipment. As such, the CEP allows the City to budget and plan for equipment needs across the entire organization. Project Highlights In 2020, the CIP for the Equipment Capital Projects Fund appropriates $1,007,000 of budget authority for 12 capital projects, most notably: •$430,000, for the replacement of a dump truck with a plow attachment that will be principally used as a Street Maintenance Division vehicle (Project No. 410–31–20801); •$280,000, for the replacement of six, marked Police Division vehicles (including a $80,000 “carry–over” discussed below) (Project No. 410–21–20100); •$50,000, for the replacement of a one–ton dump truck that will be principally used as a Park Maintenance Division vehicle (Project No. 410–31–20602). In addition to these activities, the CEP also two capital projects for new equipment related to the Fridley Civic Campus: 1) a Pick–Up Truck (Project No. 410–31–20761); and 2) a Scissor Lift (Project No. 410–31–20760). Financial Summary Due to the planned level of expenditures, the City plans to use approximately $54,500 of fund balance to support capital projects in 2020. Despite this use of fund balance, the Capital Equipment Projects Fund remains approximately $260,800 above the fund balance threshold for the fund. However, the Equipment Capital Project Fund cannot continue support this level of expenditure. In fact, when coupled with current revenue projections, the fund may only finance about $800,000 of expenditures annually. To support the approximately $244,000 in additional expenditures, the 2020–2024 CIP reallocates Page 81 $125,000 in LGA from the Park Capital Projects Fund to the Equipment Capital Projects Fund. Generally, the additional funds will be used to finance the replacement of vehicles and equipment associated with park and street maintenance activities, which were deferred from previous years due to insufficient resources. However, in order to protect the long–term solvency of the Park Capital Project Fund, the Capital Equipment Project Fund will “repay” the LGA to the Parks Capital Projects Fund in 2021 and return to historic levels in 2022. Budget Reallocation. Based on current expenditure activity, the 2020–2024 CIP assumes “carry– over” budget authority of $80,000 supporting one capital project. These amounts may be reflected in the capital projects listed above either in total or in part, including: • $80,000, for the replacement of two, marked Police Division vehicles (i.e., squads) that the City will not officially take delivery of until 2020 (Project No. 410–21–20100). $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 Budget Projection Projection Projection Projection 2020 2021 2022 2023 2024 Figure No. 11: Equipment Capital Project Fund Summary Funding Sources Capital Plan Expenditures Ending Fund Balance Page 82 2020 2021 2022 2023 2024 Fund No. 410 Budget Projection Projection Projection Projection Total Funding Sources Local Government Aid 730,000$ 480,000$ 605,000$ 605,000$ 605,000$ 3,025,000$ Liquor Store Proceeds (Transfer)175,000 175,000 175,000 175,000 175,000 875,000 Interest on Investments 7,500 7,500 7,500 7,500 7,500 37,500 Federal Grants ------ Auction Proceeds 30,000 30,000 30,000 30,000 30,000 150,000 Total Funding Sources 942,500$ 692,500$ 817,500$ 817,500$ 817,500$ 4,087,500$ Capital Plan Expenditures Total Expenditures 997,000$ 902,000$ 724,000$ 510,000$ 939,000$ 4,127,000 Surplus (deficiency) of funding sources over (under) expenditures (54,500)$ (209,500)$ 93,500$ 307,500$ (121,500)$ 15,500 Estimated Beginning Fund Balance 727,958 673,458 463,958 557,458 864,958 3,287,790 Estimated Ending Fund Balance 673,458$ 463,958$ 557,458$ 864,958$ 743,458$ 3,303,290 Fund Balance Requirement (50% of Average)412,700$ 412,700$ 412,700$ 412,700$ 412,700$ 2,063,500 Difference ($)260,758$ 51,258$ 144,758$ 452,258$ 330,758$ 1,239,790 EQUIPMENT CAPITAL PROJECTS FUND 2020 Capital Investment Program Budget and 2021 through 2024 Plan Funding Sources and Expenditure Projections Page 83 Capital Investment Program City of Fridley, Minnesota PROJECTS & FUNDING SOURCES BY DEPARTMENT 2020 2024thru Total2020 2021 2022 2023 2024DepartmentProject # Equipment Capital Project 23,00023,000Auction Proceeds 150,000150,000Building Impr. Fund Reserves 344,000147,000 61,000 136,000Capital Equip. Fund Reserves 103,00010,000 12,000 38,000 43,000Franchise Fees 11,00011,000Grant - Federal 2,860,000675,000 480,000 590,000 510,000 605,000Local Government Aid 175,000175,000Municipal Liquor Fees 659,000175,000 175,000 134,000 175,000Municipal Liquor Fund Reserves 80,00080,000Water Utility Fund Reserves 4,405,0001,007,000 902,000 886,000 628,000 982,000Equipment Capital Project Total 225-41-20700 103,00010,000 12,000 38,000 43,000City Council Chamber Upgrades 405-31-22900 150,000150,000Maintenance Garage Crane (New) 410-21-20100 1,080,000280,000 200,000 200,000 200,000 200,000Squad Vehicle Replacement 410-21-20900 90,00030,000 30,000 30,000Personal Protective Equipment Replacement 410-21-21900 12,00012,000Thermal Imaging Cameras (TIC) Replacement 410-21-22100 198,00057,000 141,000Firearm and Taser Replacement 410-21-22900 145,00055,000 90,000Fire Rescue Truck Replacement 410-31-20400 30,00030,000Pick-Up Truck/Van Replacement 410-31-20600 40,00040,000Utility Vehicle Replacement 410-31-20601 55,00028,000 10,000 7,000 10,000Lawn and Field Care Equipment Replacement 410-31-20602 220,00050,000 50,000 120,000One-Ton Dump Truck Replacement 410-31-20800 34,00034,000Asphalt Roller Replacement 410-31-20801 900,000430,000 230,000 240,000Dump Truck and Equipment Replacement 410-31-20900 25,00025,000Scissor Lift (New) 410-31-20901 25,00025,000Pick-Up Truck (New) 410-31-21600 165,00085,000 50,000 30,000Pick-Up Truck Replacement 410-31-21601 150,000150,000Tanker Truck Replacement 410-31-21800 10,00010,000Hydraulic Breaker (New) 410-31-21801 90,00045,000 45,000Pick-Up Truck and Equipment Replacement 410-31-21802 130,00050,000 80,000One-Ton Dump Truck Replacement 410-31-21803 525,000245,000 280,000Wheeled Loader Replacement 410-31-23600 30,00030,000Pickup Truck Replacement 410-31-24900 28,00028,000Forklift Replacement 410-41-21000 40,00040,000Passenger Van Replacement 410-51-20200 25,00025,000Code Enforcement Vehicle Replacement 410-51-21400 25,00025,000Rental Inspection Vehicle Replacement 601-63-23601 80,00080,000Pick-Up Truck Replacement 4,405,0001,007,000 902,000 886,000 628,000 982,000Equipment Capital Project Total 4,405,0001,007,000 902,000 886,000 628,000 982,000Grand Total Page 84 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact CSER Director Description This project provides for various upgrades for the City Council Chambers, including: -2020, camera upgrades; -2021, none; -2022, tricaster upgrade; -2023, monitor and camera upgrades; and -2024, camera and switcher upgrades. Project #225-41-20700 Justification The various upgrades will improve and maintain the ability of the City to broadcast high quality content at City Council meetings. Useful Life 10 years Project Name City Council Chamber Upgrades Category CSER - Communications Type Equipment Account No.:225-4170-621150 Total2020 2021 2022 2023 2024Expenditures 103,00010,000 12,000 38,000 43,000Equip./Vehicles/Furnishings 10,000 12,000 38,000 43,000 103,000Total Total2020 2021 2022 2023 2024Funding Sources 103,00010,000 12,000 38,000 43,000Franchise Fees 10,000 12,000 38,000 43,000 103,000Total Page 85 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Works Director Description The crane was bid as an alternate, but excluded, from the Fridley Civic Campus project. It will enable the lifting of materials from the fleet maintenance mezzanine to the fabrication shop. Project #405-31-22900 Justification The crane will improve the capability in and efficiency of the Fleet Services Division. It was delayed until 2022 to allow for the evaluation of proper size and controls. Useful Life 25 years Project Name Maintenance Garage Crane (New)Category PW - Fleet Services Type Equipment Account No.:405-3190-703100 Total2020 2021 2022 2023 2024Expenditures 150,000150,000Equip./Vehicles/Furnishings 150,000 150,000Total Total2020 2021 2022 2023 2024Funding Sources 150,000150,000Building Impr. Fund Reserves 150,000 150,000Total Page 86 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Safety Director Description This project will provide funds for the Public Safety Department to replace four (4) marked Police Division vehicles. The vehicles being replaced will move into secondary roles within the fleet. Two squad vehicles are carried forward from 2019 ($80,000) as delivery will not take place until 2020. Project #410-21-20100 Justification A well maintained and functioning emergency vehicle fleet is essential to public safety and the security of the City. Regular replacement of the police primary emergency vehicle fleet is essential to keeping top functioning squad cars for the safety of police staff, citizens and the motoring public. Regular replacement of the primary patrol fleet allows the Public Safety Department to cycle vehicles that are becoming too worn for primary patrol use, but still have life to serve in police support roles. Useful Life 12 years Project Name Squad Vehicle Replacement Category Public Safety - Police Type Vehicles Account No.:410-2110-703100 Total2020 2021 2022 2023 2024Expenditures 1,080,000280,000 200,000 200,000 200,000 200,000Equip./Vehicles/Furnishings 280,000 200,000 200,000 200,000 200,000 1,080,000Total Total2020 2021 2022 2023 2024Funding Sources 1,080,000280,000 200,000 200,000 200,000 200,000Local Government Aid 280,000 200,000 200,000 200,000 200,000 1,080,000Total Page 87 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Safety Director Description The project will replace firefighter personal protective clothing that has expired under National Fire Protection Association Standard 1851 and provide a second set of personal protective clothing that will allow for cleaning of contaminated personal protective clothing while allowing firefighters to remain in service. The project will also provide improved protection from carcinogenic agents by purchasing hoods with vapor barriers. Project #410-21-20900 Justification NFPA 1851 is the standard for firefighter protective clothing (PPE) and is currently being enforced by MN Occupational Health and Safety Administration. General Duty Clause 29 CFR Part 1910.132. The standard requires that all PPE including helmets, hoods, coats, pants, gloves and boots to be replaced every 10 years regardless of condition. The Public Safety Department is anticipating an OSHA rule change that will require the new style of protective hood. The new style of hood adds additional cost to the purchase of protective hoods. Useful Life 10 years Project Name Personal Protective Equipment Replacement Category Public Safety - Fire Type Equipment Account No.:410-2190-621150 Total2020 2021 2022 2023 2024Expenditures 90,00030,000 30,000 30,000Equip./Vehicles/Furnishings 30,000 30,000 30,000 90,000Total Total2020 2021 2022 2023 2024Funding Sources 90,00030,000 30,000 30,000Municipal Liquor Fund Reserves 30,000 30,000 30,000 90,000Total Page 88 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Safety Director Description This project will replace one of four Thermal Imaging Cameras (TIC) on firefighting vehicles. Thermal Imaging Cameras are used to provide a visual image in conditions where vision is obscured by smoke, gases, and poor lighting Project #410-21-21900 Justification A TIC can be used to locate people in the water or at accident scenes. The hand held TIC is currently located on three engines and the aerial ladder. A change in technology will allow for a TIC to be part of each Self Contained Breathing Apparatus (SCBA). The current TIC are expected to reach their service life of eight years and will no longer be serviceable. Use of the TIC reduces the time spent locating people in hazardous environments including firefighters who may be in trouble. They also reduce the amount of property damaged in searching for hidden fire during the overhaul process. Useful Life 10 years Project Name Thermal Imaging Cameras (TIC) Replacement Category Public Safety - Fire Type Equipment Account No.:410-2190-703100 Total2020 2021 2022 2023 2024Expenditures 12,00012,000Equip./Vehicles/Furnishings 12,000 12,000Total Total2020 2021 2022 2023 2024Funding Sources 11,00011,000Grant - Federal 1,0001,000Municipal Liquor Fund Reserves 12,000 12,000Total Page 89 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Safety Director Description This project provides funding to the replacement of certain Police Division equipment, including: -2022, 32 Taser X26P ECDs (Electronic Control Devices), which were last purchased in 2017; -2024, 45 handguns, 30 patrol rifles with optics, and two scoped rifles, which were last purchased between 2006 and 2017. Project #410-21-22100 Justification Firearms and tasers are valuable tools to keep our officers and citizens safe. It is imperative that each officer have dependable and effective firearms and tasers. The taser has proven to be an effective tool for reducing injuries to officers and suspects by eliminating the frequency officers engage in hard-hand use of force techniques. Handguns are carried by sworn officers at all times while on duty, and they are expected to perform annual firearms qualifications and monthly training courses of fire. The patrol rifles that are deployed to each police vehicle and the firearms range will be 10 to 18 years old in 2024. Useful Life 5 years Project Name Firearm and Taser Replacement Category Public Safety - Police Type Equipment Account No.:410-2110-621150 Total2020 2021 2022 2023 2024Expenditures 198,00057,000 141,000Equip./Vehicles/Furnishings 57,000 141,000 198,000Total Total2020 2021 2022 2023 2024Funding Sources 198,00057,000 141,000Local Government Aid 57,000 141,000 198,000Total Page 90 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Safety Director Description This item provides for the scheduled replacement of three Fire Department Rescue trucks. -2022, Rescue/Utility pick-up truck -2024, Two Rescue trucks Project #410-21-22900 Justification In 2022, a pick-up truck that was originally purchased in the year 2012 will be replaced. It is vital to the Fire Department operations to have a pick- up truck capable of hauling contaminated equipment back from fire scenes. This vehicle also doubles as a Rescue truck capable of hauling Emergency personal and gear to a scene. In 2024, two rescue vehicles that were originally purchased in 2014 will be replaced. The first rescue vehicle is used as a Fire Chief’s vehicle which transports command staff to an Emergency scene and doubles as a Rescue vehicle. The second rescue vehicle is used during the daytime to transport inspection staff to the job sites in order to preform inspections and fire prevention activities; it also doubles as a rescue vehicle for payed on call fire fighters in the off hours. All 3 vehicles will have exceeded the anticipated service life of 8 years. Useful Life 10 years Project Name Fire Rescue Truck Replacement Category Public Safety - Fire Type Vehicles Account No.:410-2190-703100 Total2020 2021 2022 2023 2024Expenditures 145,00055,000 90,000Equip./Vehicles/Furnishings 55,000 90,000 145,000Total Total2020 2021 2022 2023 2024Funding Sources 145,00055,000 90,000Municipal Liquor Fund Reserves 55,000 90,000 145,000Total Page 91 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Works Director Description Pick-Up Truck or Van for Engineering. This is a replacement of the Engineering Technician's Van, a 1995 Chevy Astrovan, which is a dedicated vehicle that has racking to hold survey and field equipment. Project #410-31-20400 Justification This equipment was scheduled for replacement some years ago, however, our former survey technician preferred continuing its use until his retirement, which happened in 2019. Our new engineering technician will select a vehicle that meets our needs in the years to come. This project was added in 2019 and not in the prior schedule of the Capital Investment Plan. Useful Life 20 years Project Name Pick-Up Truck/Van Replacement Category PW - Engineering Type Vehicles Total Project Cost:$30,000 Account No.:410-3140-703100 Total2020 2021 2022 2023 2024Expenditures 30,00030,000Equip./Vehicles/Furnishings 30,000 30,000Total Total2020 2021 2022 2023 2024Funding Sources 30,00030,000Capital Equip. Fund Reserves 30,000 30,000Total Page 92 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Works Director Description This project supports the replacement of utility vehicles and associated equipment on an annual basis. At present, the City plans to replace the following: -2020, off-road utility vehicle (No. 572). Project #410-31-20600 Justification Vehicles in the Parks Maintenance Division are used for the collection of brush, spraying weeds and other maintenance activities within parks and trail grounds as well as other off road locations. The new utility vehicle will include broom, groomer and tracks to clean trails and sidewalks, groom sliding hill and the trail system. It will also help to prepare ballfields. Useful Life 15 years Project Name Utility Vehicle Replacement Category PW - Parks Type Vehicles Account No.:410-3160-703100 Total2020 2021 2022 2023 2024Expenditures 40,00040,000Equip./Vehicles/Furnishings 40,000 40,000Total Total2020 2021 2022 2023 2024Funding Sources 40,00040,000Local Government Aid 40,000 40,000Total Page 93 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Works Director Description This project supports the replacement of lawn and field care equipment on an annual basis. At present, the City plans to replace the following: -2020, 2015 z-turn lawn mower (No. 532), and front-mount tractor/mower; -2021. 2016 z-turn lawn mower (No. 534); -2022, aeration tool attachment; and -2023, front-mount tractor/mower. Project #410-31-20601 Justification This is a mower used by the Parks Maintenance Division to cut grass in City Parks and rights-of-way. This unit would be used full-time from May through October. This equipment will allow the City to maintin its level of service in turf maintenance. Useful Life 5 years Project Name Lawn and Field Care Equipment Replacement Category PW - Parks Type Equipment Account No.:410-3160-703100 Total2020 2021 2022 2023 2024Expenditures 55,00028,000 10,000 7,000 10,000Equip./Vehicles/Furnishings 28,000 10,000 7,000 10,000 55,000Total Total2020 2021 2022 2023 2024Funding Sources 16,0001,000 5,000 10,000Local Government Aid 39,00027,000 5,000 7,000Municipal Liquor Fund Reserves 28,000 10,000 7,000 10,000 55,000Total Page 94 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Works Director Description This project supports the replacement of one-ton dump trucks and associated equipment on an annual basis. At present, the City plans to replace the following: -2020, 2001 Chevrolet 3500 4WD one-ton dump truck (No. 502); -2022, one-ton dump truck (No. 594); and -2024, one-ton dump truck (No. 553), one-ton dump truck (No. 566). Project #410-31-20602 Justification This vehicle is used by the Parks Maintenance Division as a utility vehicle from April/May through September, and to plow cul-de-sacs and select streets. This equipment will allow the Public Works Department to continue providing its current level of service. Useful Life 20 years Project Name One-Ton Dump Truck Replacement Category PW - Parks Type Vehicles Account No.:410-3160-703100 Total2020 2021 2022 2023 2024Expenditures 220,00050,000 50,000 120,000Equip./Vehicles/Furnishings 50,000 50,000 120,000 220,000Total Total2020 2021 2022 2023 2024Funding Sources 220,00050,000 50,000 120,000Local Government Aid 50,000 50,000 120,000 220,000Total Page 95 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Works Director Description This equipment will replace a pavement roller used by the Street Maintenance Division. The proposed amount includes trade-in of the replaced Unit No.746 which is a 1999 Towmaster trailer. Project #410-31-20800 Justification This will replace the larger of two pavement rollers in the Street Maintenance Division. This unit would be used full-time spring through fall. This purchase will allow the City to maintain its level of service in pavement maintenance. Useful Life 30 years Project Name Asphalt Roller Replacement Category PW - Streets Type Equipment Account No.:410-3180-703100 Total2020 2021 2022 2023 2024Expenditures 34,00034,000Equip./Vehicles/Furnishings 34,000 34,000Total Total2020 2021 2022 2023 2024Funding Sources 34,00034,000Local Government Aid 34,000 34,000Total Page 96 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Works Director Description This project supports the replacement of dump trucks and associated equipment on an annual basis. At present, the City plans to replace the following: -2020, 2010 International Dump Truck with a plow replacement; (No. 777); -2020, 2005 International Dump Truck with a hot mix box replacement (No. 730); -2022, 2005 International Dump Truck with Plow Replacement (No. 769); and -2023, 2012 International Dump Truck (No. 778). Project #410-31-20801 Justification This dump truck is one of six large trucks used year-round by the Street Maintenance Division for plowing in the winter and hauling materials in the summer. This equipment will allow the Public Works Department to maintain its current level of service. Useful Life 15 years Project Name Dump Truck and Equipment Replacement Category PW - Streets Type Vehicles Account No.:410-3180-703100 Total2020 2021 2022 2023 2024Expenditures 900,000430,000 230,000 240,000Equip./Vehicles/Furnishings 430,000 230,000 240,000 900,000Total Total2020 2021 2022 2023 2024Funding Sources 92,00092,000Capital Equip. Fund Reserves 715,000245,000 230,000 240,000Local Government Aid 93,00093,000Municipal Liquor Fund Reserves 430,000 230,000 240,000 900,000Total Page 97 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Works Director Description This project will support the cost of an all-purpose scissor lift. The City intends to purchase an electric lift, which will be used for both indoor and outdoor use. Project #410-31-20900 Justification The City does not currently own or lease a scissor lift. Such a lift will be needed to support maintenance activities for the new Fridley Civic Campus. Useful Life 20 years Project Name Scissor Lift (New)Category PW - Facilities Mgmt Type Equipment Account No.:410-3190-703100 Total2020 2021 2022 2023 2024Expenditures 25,00025,000Equip./Vehicles/Furnishings 25,000 25,000Total Total2020 2021 2022 2023 2024Funding Sources 25,00025,000Municipal Liquor Fund Reserves 25,000 25,000Total Page 98 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Works Director Description This project will support a dedicated pick-up truck, which is needed to maximize effectiveness of Facilities Management Division staff. It will enable staff to work at remote sites, including all parks, liquor stores and fire stations. Project #410-31-20901 Justification The City does not have such equipment at this time, and it will be used to provide both transportation and project assistance for Facilities Management Division staff. Useful Life 10 years Project Name Pick-Up Truck (New)Category PW - Facilities Mgmt Type Vehicles Account No.:410-3190-703100 Total2020 2021 2022 2023 2024Expenditures 25,00025,000Equip./Vehicles/Furnishings 25,000 25,000Total Total2020 2021 2022 2023 2024Funding Sources 25,00025,000Local Government Aid 25,000 25,000Total Page 99 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Works Director Description This project supports the replacement of pick-up trucks and associated equipment on an annual basis. At present, the City plans to replace the following: -2021, pick-up truck with plow (No. 538), 2005 Chevrolet Silverado (No. 527); -2022, 2007 GMC Sienna Pick-Up (No. 558); -2023, pick-up truck (No. 529). Project #410-31-21600 Justification This vehicle is used as transportation for Parks Maintenance staff year-round. Useful Life 10 years Project Name Pick-Up Truck Replacement Category PW - Parks Type Vehicles Account No.:410-3160-703100 Total2020 2021 2022 2023 2024Expenditures 165,00085,000 50,000 30,000Equip./Vehicles/Furnishings 85,000 50,000 30,000 165,000Total Total2020 2021 2022 2023 2024Funding Sources 165,00085,000 50,000 30,000Local Government Aid 85,000 50,000 30,000 165,000Total Page 100 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Works Director Description This project supports the replacement of a tanker truck and the associated equipment. At present, the City plans to replace the following: -2020, tanker truck (No. 573). Project #410-31-21601 Justification This is a single tanker truck used by the Parks Maintenance staff for summer watering and flooding of rinks that the City maintains. This unit is used on a regular basis. Useful Life 20 years Project Name Tanker Truck Replacement Category PW - Parks Type Vehicles Account No.:410-3160-703100 Total2020 2021 2022 2023 2024Expenditures 150,000150,000Equip./Vehicles/Furnishings 150,000 150,000Total Total2020 2021 2022 2023 2024Funding Sources 150,000150,000Local Government Aid 150,000 150,000Total Page 101 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Works Director Description The Street Division will purchase a new hydraulic breaker attachment for their skid loader. Project #410-31-21800 Justification The use of a hydraulic breaker (rapid ram) will save a tremendous amount of time and energy when excavating asphalt, concrete and rock and a skid loader attachment allows performance of this work without having to mobilize a utility backhoe/excavator. Useful Life 12 years Project Name Hydraulic Breaker (New)Category PW - Streets Type Equipment Account No.:410-3180-703100 Total2020 2021 2022 2023 2024Expenditures 10,00010,000Equip./Vehicles/Furnishings 10,000 10,000Total Total2020 2021 2022 2023 2024Funding Sources 10,00010,000Municipal Liquor Fund Reserves 10,000 10,000Total Page 102 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Works Director Description This project supports the replacement of pick-up trucks and associated equipment on an annual basis. At present, the City plans to replace the following: -2021, 2007 GMC 3/4 Ton truck with plow and lift gate (No. 754); and -2022, 2007 GMC 3/4 ton truck with plow (No. 727). Project #410-31-21801 Justification This pick-up is used year round, snowplowing in the winter and hauling asphalt rollers and equipment in the summer. Useful Life 20 years Project Name Pick-Up Truck and Equipment Replacement Category PW - Streets Type Vehicles Account No.:410-3180-703100 Total2020 2021 2022 2023 2024Expenditures 90,00045,000 45,000Equip./Vehicles/Furnishings 45,000 45,000 90,000Total Total2020 2021 2022 2023 2024Funding Sources 3,0003,000Local Government Aid 87,00045,000 42,000Municipal Liquor Fund Reserves 45,000 45,000 90,000Total Page 103 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Works Director Description This project supports the replacement of one-ton dump trucks and associated equipment on an annual basis. At present, the City plans to replace the following: -2021, 1999 GMC one-ton dump truck with a plow (No. 729); and -2024, 2013 Ford Super Duty one-ton dump truck with a plow and sander (No. 725). Project #410-31-21802 Justification This one-ton dump truck is used year round for the Street Department for plowing snow in the winter and hauling material in the summer. Useful Life 20 years Project Name One-Ton Dump Truck Replacement Category PW - Streets Type Vehicles Account No.:410-3180-703100 Total2020 2021 2022 2023 2024Expenditures 130,00050,000 80,000Equip./Vehicles/Furnishings 50,000 80,000 130,000Total Total2020 2021 2022 2023 2024Funding Sources 32,00032,000Capital Equip. Fund Reserves 98,00018,000 80,000Municipal Liquor Fund Reserves 50,000 80,000 130,000Total Page 104 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Works Director Description This project supports the replacement of wheeled loaders and associated equipment on an annual basis. At present, the City plans to replace the following: -2020, 1999 John Deere Loader with a plow and wing (No. 795); and -2024, 2005 Case Loader with a plow and wing (No. 744). Project #410-31-21803 Justification This heavy equipment is one of three loaders used year-round by the Street Maintenance Division for plowing in the winter, and moving construction and fill materials year-round. Useful Life 20 years Project Name Wheeled Loader Replacement Category PW - Streets Type Vehicles Account No.:410-3180-703100 Total2020 2021 2022 2023 2024Expenditures 525,000245,000 280,000Equip./Vehicles/Furnishings 245,000 280,000 525,000Total Total2020 2021 2022 2023 2024Funding Sources 165,00029,000 136,000Capital Equip. Fund Reserves 144,000144,000Local Government Aid 175,000175,000Municipal Liquor Fees 41,00041,000Municipal Liquor Fund Reserves 245,000 280,000 525,000Total Page 105 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Works Director Description This pick-up will replace unit 529, a pick-up used to transport Parks Maintenance crews and equipment. Project #410-31-23600 Justification This vehicle is used as transportation for Parks Maintenance staff year-round. Useful Life 12 years Project Name Pickup Truck Replacement Category PW - Parks Type Vehicles Account No.:410-3160-703100 Total2020 2021 2022 2023 2024Expenditures 30,00030,000Equip./Vehicles/Furnishings 30,000 30,000Total Total2020 2021 2022 2023 2024Funding Sources 30,00030,000Local Government Aid 30,000 30,000Total Page 106 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Works Director Description This project will support the acquisition of a new forklift for loading and unloading in the compact spaces of the new Public Works facility. The City intends to purchase an electric forklift to eliminate emissions. Project #410-31-24900 Justification The current forklift has been in service for nearly 10 years. It was originally purchased used and will be about 30 years old upon replacement and at the end of its useful life. Useful Life 15 years Project Name Forklift Replacement Category PW - Facilities Mgmt Type Vehicles Account No.:410-3190-703100 Total2020 2021 2022 2023 2024Expenditures 28,00028,000Equip./Vehicles/Furnishings 28,000 28,000Total Total2020 2021 2022 2023 2024Funding Sources 23,00023,000Auction Proceeds 5,0005,000Municipal Liquor Fund Reserves 28,000 28,000Total Page 107 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact CSER Director Description To transport park users and staff to and from various locations as needed. Project #410-41-21000 Justification Requests to use the Recreation van have been increasing by other staff for general use. The current van was purchased in 2004 and is need of replacement. Staff propose this van be identified with a non-specific City logo for all departments to use and cost-share. The van will be operated with a motor pool concept. Useful Life 15 years Project Name Passenger Van Replacement Category CSER - Recreation Type Vehicles Account No.:410-4100-703100 Total2020 2021 2022 2023 2024Expenditures 40,00040,000Equip./Vehicles/Furnishings 40,000 40,000Total Total2020 2021 2022 2023 2024Funding Sources 40,00040,000Local Government Aid 40,000 40,000Total Page 108 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Comm. Develop. Director Description The Community Development Department maintains several vehicles to support program activities. This is for the replacement of a Planning Division vehicle. Project #410-51-20200 Justification The Planning Division has two code enforcement inspection vehicles: The 2004 Dodge Stratus is scheduled to be replaced in 2020 Useful Life 10 years Project Name Code Enforcement Vehicle Replacement Category CD - Planning Type Vehicles Account No.:410-5120-703100 Total2020 2021 2022 2023 2024Expenditures 25,00025,000Equip./Vehicles/Furnishings 25,000 25,000Total Total2020 2021 2022 2023 2024Funding Sources 25,00025,000Capital Equip. Fund Reserves 25,000 25,000Total Page 109 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Comm. Develop. Director Description The Community Development Department maintains several vehicles to support program activities. This is for the replacement of a Rental Inspection Division vehicle. Project #410-51-21400 Justification The Rental Inspection Division has two inspection vehicles: The 2002 Ford Focus is scheduled to be replaced in 2021 Useful Life 10 years Project Name Rental Inspection Vehicle Replacement Category CD - Rental Inspections Type Vehicles Account No.:410-5140-703100 Total2020 2021 2022 2023 2024Expenditures 25,00025,000Equip./Vehicles/Furnishings 25,000 25,000Total Total2020 2021 2022 2023 2024Funding Sources 25,00025,000Municipal Liquor Fund Reserves 25,000 25,000Total Page 110 Capital Investment Program City of Fridley, Minnesota Department Equipment Capital Project 2020 2024thru Contact Public Works Director Description This project will support the replacement of two pick-up trucks for the Water Division, which will be used to support regular operations and projects. Project #601-63-23601 Justification This will replace a pick-up truck used by Water Division staff. Useful Life 10 years Project Name Pick-Up Truck Replacement Category PW - Water Type Vehicles Account No.:601-6019-703100 Total2020 2021 2022 2023 2024Expenditures 80,00080,000Equip./Vehicles/Furnishings 80,000 80,000Total Total2020 2021 2022 2023 2024Funding Sources 80,00080,000Water Utility Fund Reserves 80,000 80,000Total Page 111 This page intentionally left blank. Page 112 WATER UTILITY Introduction and Allowable Uses The Water Utility Fund accounts for funds accumulated for the operational and capital expenses related to the public water utility owned and operated by the City. For the purposes of the CIP, this section contains budget authority related to the acquisition, expansion, improvement, replacement and/or major repairs of water utility facilities and systems, including: fire hydrants; pumps; water mains; water treatment facilities; water towers; wells; and their associated components. The primary funding sources for this fund includes the CI Fund, State grants and water utility fees. Annually, the City Council reviews and adopts utility rates and charges to support these activities. Project Highlights In 2020, the CIP for the Water Utility Fund appropriates $3,002,000 of budget authority for eight capital projects, most notably: •$1,100,000, for the Locke Park Water Treatment Plant Rehabilitation (Project No. 601–63–19509); and •$840,000, for reconstruction of the water distribution system in conjunction with threestreet rehabilitation projects (Project No. 601–63–20406); •$500,000, for new water distribution system extensions crossing Interstate No. 694 (ProjectNo. 601–63–20101); and •$457,000, for water well improvements and updates (e.g., motors, pipes, pumps) for WellsNo. 9 and No. 12 (Project No. 601–63–20448). The public utility funds and their associated CIP sections typically contain capital projects in conjunction with the street improvement planned in the Street Capital Projects Fund or CIP. Generally, the City accomplishes these expansions, improvements or reconstruction of the water utility system in concert with these other capital project in order to reduce the additional costs and further disruption of a stand–alone public utility project. Financial Summary Due to the planned level of expenses, the City plans to use approximately $2,480,100 of cash balance to support capital projects in 2020. Due to this larger than usual use of cash, the Water Utility Fund will remain approximately $1,919,800 below the cash balance threshold for the fund. The decrease in the cash balance may be principally attributed to the completion of the Locke Park Water Treatment Plant Improvement Project. In 2019, the City Council authorized an interfund loan from the CI Fund in an amount not to exceed $3,600,000, or the approximate cost of the improvements. In 2019, the City expended approximately $2,500,000 on the capital project with the balance reallocated to 2020. Page 113 Beginning in 2020, the Water Utility Fund will also begin repayment of its first interfund loan from the CI Fund. Per the City Council authorization, the fund will transfer approximately $422,000 back to the CI Fund annually for 10 years. The City anticipate the need for other interfund loans as soon as 2024. Based on the current projections, once the activity for the Water Utility Fund returns to the usual expenditure levels, the cash balance threshold will decrease, and the fund will exceed the cash balance threshold in 2021 by approximately $585,400. Additionally, the projection assumes a three percent increase in water sales annually in part to support ordinary capital expenses and to better maintain appropriate cash balance levels. Budget Reallocation. Based on current expenditure activity, the 2020–2024 CIP assumes “carry– over” budget authority of $1,397,000 supporting three capital projects. These amounts may be reflected in the capital projects listed above either in total or in part, including: • $600,000, for the Locke Park Water Treatment Plant Rehabilitation (Project No. 601–63–19509); • $540,000, for the reconstruction of the existing water distribution system associated with the 2018 and 2019 street rehabilitation projects (Project No. 601–63–20406); and • $257,000, for water well improvements and updates (e.g., motors, pipes, pumps) for Wells No. 9 (Project No. 601–63–20448) $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 Budget Projection Projection Projection Projection 2020 2021 2022 2023 2024 Figure No. 12: Water Utility Fund Summary Funding Sources Non-Capital Expenses Capital Plan Expenses Ending Fund Balance Ending Cash Balance Page 114 2020 2021 2022 2023 2024 Fund No. 601 Budget Projection Projection Projection Projection Total Funding Sources Water Utility Fees 4,098,400$ 4,221,400$ 4,348,000$ 4,478,400$ 4,612,800$ 21,759,000$ Interest on Investments 15,000 30,000 30,000 30,000 30,000 135,000 Interfund loan -----514,286 Total Funding Sources 4,113,400$ 4,251,400$ 4,378,000$ 4,508,400$ 4,642,800$ 21,894,000$ Expenses Non-Capital Expenses Operating Expenses 2,378,600$ 2,426,200$ 2,474,700$ 2,524,200$ 2,574,700$ 12,378,400$ Debt Service 790,900 794,975 794,650 793,795 495,400 3,669,720 Depreciation 300,000 306,000 312,100 318,300 324,700 1,561,100 Interfund Loan 422,030 422,000 422,000 422,000 422,000 2,110,030 Subtotal Non-capital Expenses 3,891,530$ 3,949,175$ 4,003,450$ 4,058,295$ 3,816,800$ 19,719,250$ Capital Plan Expenses Subtotal Capital Expenses 3,002,000$ 550,000$ 940,000$ 1,130,000$ 2,235,000$ 7,857,000$ Total Expenses 6,893,530$ 4,499,175$ 4,943,450$ 5,188,295$ 6,051,800$ 27,576,250$ Surplus (deficiency) of funding sources over (under) Expenses 221,870$ 302,225$ 374,550$ 450,105$ 826,000$ 2,174,750$ Estimated Beginning Fund Balance 14,141,056 14,362,926 14,665,151 15,039,701 15,489,806 73,698,640 Estimated Ending Fund Balance 14,362,926$ 14,665,151$ 15,039,701$ 15,489,806$ 16,315,806$ 75,873,390$ Cash Balance Floor (6 months Operating/DS/Capital)4,615,100 2,169,100 2,565,200 2,761,400 3,872,800 15,983,600 Cash Ending Balance 2,696,312 2,754,537 2,501,187 2,139,592 1,055,292 Difference (1,918,788)585,437 (64,013)(621,808)(2,817,508) WATER UTILITY FUND 2020 Capital Investment Program Budget and 2021 through 2024 Plan Funding Sources and Expenditure Projections Page 115 Capital Investment Program City of Fridley, Minnesota PROJECTS & FUNDING SOURCES BY DEPARTMENT 2020 2024thru Total2020 2021 2022 2023 2024DepartmentProject # Water Utility 2,689,000222,000 427,000 502,000 580,000 958,000Water Utility Fees 5,088,0002,780,000 123,000 438,000 470,000 1,277,000Water Utility Fund Reserves 7,777,0003,002,000 550,000 940,000 1,050,000 2,235,000Water Utility Total 601-63-19509 1,100,0001,100,000Locke Park Treatment Plant Rehabilitation 601-63-20101 1,600,000500,000 500,000 600,000New Distribution System Extension 601-63-20406 2,940,000840,000 500,000 500,000 500,000 600,000Distribution System Reconstruction 601-63-20412 70,00010,000 10,000 30,000 10,000 10,000Water Meter Replacement and Testing 601-63-20448 887,000457,000 210,000 220,000Well Updates 601-63-20477 115,00035,000 40,000 40,000Variable Frequency Drives 601-63-20494 100,00020,000 20,000 20,000 20,000 20,000Hydrant Repairs 601-63-20495 165,00040,000 20,000 40,000 20,000 45,000Building Maintenance 601-63-22497 100,000100,000Treatment Plant Retrofits 601-63-24100 500,000500,000Storage Retrofits and Reconditioning 601-63-24101 200,000200,000Recondition 63rd Ave Booster Pumps 7,777,0003,002,000 550,000 940,000 1,050,000 2,235,000Water Utility Total 7,777,0003,002,000 550,000 940,000 1,050,000 2,235,000Grand Total Page 116 Capital Investment Program City of Fridley, Minnesota Department Water Utility 2020 2024thru Contact Public Works Director Description Rehabilitation of the existing water treatment plant, including refurbishment of existing pressure filters, replacement of all plant valves, process piping modifications, removal and repartitioning of walls for restrooms and chemical feed rooms, new chemical feed equipment, new plant air compressor and an air wash blower. Construction of a detached backwash water recovery tank and associated pump room. In addition, the project includes associated electrical, mechanical, heating, ventilation and air conditioning and painting, with civil site work such as water main modifications, sanitary sewer, site grading, landscaping, and new driveway access. $600,000 is being carried forward from 2019. Project #601-63-19509 Justification This item is for improving the reliability of plant filter operations, improved treatment of a public water supply and filter backwash water re-use. This project began in 2019. Useful Life 35 years Project Name Locke Park Treatment Plant Rehabilitation Category PW - Water Type Water Distribution Account No.:601-6019-701100 Total2020 2021 2022 2023 2024Expenditures 1,100,0001,100,000Construction/Maintenance 1,100,000 1,100,000Total Total2020 2021 2022 2023 2024Funding Sources 222,000222,000Water Utility Fees 878,000878,000Water Utility Fund Reserves 1,100,000 1,100,000Total Page 117 Capital Investment Program City of Fridley, Minnesota Department Water Utility 2020 2024thru Contact Public Works Director Description This project involves reconstruction, rehabilitation and interconnection of the existing water distribution system. Project #601-63-20101 Justification This project is to provide redundancy of the water distribution system. Annual funding is targeted to provide interconnection where potential for emergency fire flow could be affected by out of service water mains. The 2020 project will rehabilitate a crossing of Interstate 694 and the proposed 2023 project (deferred from 2018) will provide connection of dead-end systems on Trunk Highway 65 between 68th Avenue and Norton Avenue. Useful Life 35 years Project Name New Distribution System Extension Category PW - Water Type Water Distribution Account No.:601-6019-705100 Total2020 2021 2022 2023 2024Expenditures 1,600,000500,000 500,000 600,000Construction/Maintenance 500,000 500,000 600,000 1,600,000Total Total2020 2021 2022 2023 2024Funding Sources 520,000197,000 323,000Water Utility Fees 1,080,000500,000 303,000 277,000Water Utility Fund Reserves 500,000 500,000 600,000 1,600,000Total Page 118 Capital Investment Program City of Fridley, Minnesota Department Water Utility 2020 2024thru Contact Public Works Director Description This project involves reconstruction, rehabilitation, and interconnection of the existing water distribution system. This project is in conjunction with annual street rehabilitation projects. $540,000 is being carried forward from 2019. Project #601-63-20406 Justification This project is to provide preservation of the water distribution system. Annual funding is targeted to extend the life of existing infrastructure. The proposed project repairs water mains in conjunction with 2020 thru 2024 street projects. Useful Life 25 years Project Name Distribution System Reconstruction Category PW - Water Type Water Distribution Account No.:601-6019-705100 Total2020 2021 2022 2023 2024Expenditures 2,940,000840,000 500,000 500,000 500,000 600,000Construction/Maintenance 840,000 500,000 500,000 500,000 600,000 2,940,000Total Total2020 2021 2022 2023 2024Funding Sources 1,625,000397,000 245,000 383,000 600,000Water Utility Fees 1,315,000840,000 103,000 255,000 117,000Water Utility Fund Reserves 840,000 500,000 500,000 500,000 600,000 2,940,000Total Page 119 Capital Investment Program City of Fridley, Minnesota Department Water Utility 2020 2024thru Contact Public Works Director Description The project includes installation of water meters with upgrades to an automatic reading system, construction of fixed antenna readers, and testing of meters. Project #601-63-20412 Justification The City's water meters are typically beyond their expected life span for accurate reading. The City has also relied on voluntary meter reading for its residential properities, which adds data entry and coordination time to collect readings. The project includes installation Citywide over a multi- year project. Useful Life 25 years Project Name Water Meter Replacement and Testing Category PW - Water Type Water Distribution Account No.:601-6019-621140 Total2020 2021 2022 2023 2024Expenditures 70,00010,000 10,000 30,000 10,000 10,000Other 10,000 10,000 30,000 10,000 10,000 70,000Total Total2020 2021 2022 2023 2024Funding Sources 10,00010,000Water Utility Fees 60,00010,000 30,000 10,000 10,000Water Utility Fund Reserves 10,000 10,000 30,000 10,000 10,000 70,000Total Page 120 Capital Investment Program City of Fridley, Minnesota Department Water Utility 2020 2024thru Contact Public Works Director Description This project involves rehabilitation and repair of well equipment and components including pumps, motors, shafts, bearings, casings, piping, and control systems. The project provides major preventative maintenance that water supply wells require. $257,000 is being carried forward from 2019. Project #601-63-20448 Justification The project consists of removing and inspecting the column pipe, shafts, pumps, and motors, and repairing these components as required. This semi-annual project ensures that the City water system continues to have a constant water supply with a minimum amount of repairs. Updates and rehabilitation are proposed for Wells No. 9 and No. 12 in 2020, along with a project on Well No. 1 carried forward from 2019. Wells No. 6 and No. 10 are scheduled in 2022 and Wells No. 4 and No. 7 are scheduled in 2024. Useful Life 25 years Project Name Well Updates Category PW - Water Type Water Distribution Account No.:601-6019-701100 Total2020 2021 2022 2023 2024Expenditures 887,000457,000 210,000 220,000Construction/Maintenance 457,000 210,000 220,000 887,000Total Total2020 2021 2022 2023 2024Funding Sources 210,000210,000Water Utility Fees 677,000457,000 220,000Water Utility Fund Reserves 457,000 210,000 220,000 887,000Total Page 121 Capital Investment Program City of Fridley, Minnesota Department Water Utility 2020 2024thru Contact Public Works Director Description This item is for replacement of pump Variable Frequency Drive (VFD) motors in the Water Division. Project #601-63-20477 Justification This item is for replacement of VFD pump motors and equipment for Water Division treatment plant and transmission systems. Useful Life 10 years Project Name Variable Frequency Drives Category PW - Water Type Water Distribution Account No.:601-6019-703100 Total2020 2021 2022 2023 2024Expenditures 115,00035,000 40,000 40,000Construction/Maintenance 35,000 40,000 40,000 115,000Total Total2020 2021 2022 2023 2024Funding Sources 35,00035,000Water Utility Fees 80,00035,000 40,000 5,000Water Utility Fund Reserves 35,000 40,000 40,000 115,000Total Page 122 Capital Investment Program City of Fridley, Minnesota Department Water Utility 2020 2024thru Contact Public Works Director Description This project involves accelerated rehabilitation and repair of existing fire hydrants. Project #601-63-20494 Justification This project is to provide preservation of the fire hydrants, a critical element in our water distribution system. Annual funding is targeted to extend the life of existing infrastructure. The work includes sandblasting and painting of hydrants and materials for mechanical repairs as identified. Useful Life 5 years Project Name Hydrant Repairs Category PW - Water Type Water Distribution Account No.:601-6019-635100 Total2020 2021 2022 2023 2024Expenditures 100,00020,000 20,000 20,000 20,000 20,000Construction/Maintenance 20,000 20,000 20,000 20,000 20,000 100,000Total Total2020 2021 2022 2023 2024Funding Sources 20,00020,000Water Utility Fees 80,00020,000 20,000 20,000 20,000Water Utility Fund Reserves 20,000 20,000 20,000 20,000 20,000 100,000Total Page 123 Capital Investment Program City of Fridley, Minnesota Department Water Utility 2020 2024thru Contact Public Works Director Description This item is for minor maintenance of plant and well house buildings. Project #601-63-20495 Justification The project includes minor preventative maintenance updates and repairs to well house buildings and plant buildings. This annual project ensures that the City water facilities are managed with a minimum amount of repairs. Well power supply, ventilation and cooling will be upgraded with this project to reduce maintenance on equipment. Useful Life 5 years Project Name Building Maintenance Category PW - Water Type Water Distribution Account No.:601-6019-635100 Total2020 2021 2022 2023 2024Expenditures 165,00040,000 20,000 40,000 20,000 45,000Construction/Maintenance 40,000 20,000 40,000 20,000 45,000 165,000Total Total2020 2021 2022 2023 2024Funding Sources 165,00040,000 20,000 40,000 20,000 45,000Water Utility Fund Reserves 40,000 20,000 40,000 20,000 45,000 165,000Total Page 124 Capital Investment Program City of Fridley, Minnesota Department Water Utility 2020 2024thru Contact Public Works Director Description This item is for replacement and retrofit of water treatment equipment in water treatment plants. Project #601-63-22497 Justification This item is for replacement and retrofit of water treatment equipment. It includes chemical system upgrades at Commons Treatment Plant. Useful Life 25 years Project Name Treatment Plant Retrofits Category PW - Water Type Water Distribution Account No.:601-6019-703100 Total2020 2021 2022 2023 2024Expenditures 100,000100,000Construction/Maintenance 100,000 100,000Total Total2020 2021 2022 2023 2024Funding Sources 47,00047,000Water Utility Fees 53,00053,000Water Utility Fund Reserves 100,000 100,000Total Page 125 Capital Investment Program City of Fridley, Minnesota Department Water Utility 2020 2024thru Contact Public Works Director Description This project will support the reconditioning of current storage systems. Project #601-63-24100 Justification This item is for replacement and retrofit of water storage space and equipment. Useful Life 20 years Project Name Storage Retrofits and Reconditioning Category PW - Water Type Water Distribution Account No.:601-6019-701100 Total2020 2021 2022 2023 2024Expenditures 500,000500,000Construction/Maintenance 500,000 500,000Total Total2020 2021 2022 2023 2024Funding Sources 500,000500,000Water Utility Fund Reserves 500,000 500,000Total Page 126 Capital Investment Program City of Fridley, Minnesota Department Water Utility 2020 2024thru Contact Public Works Director Description The 63rd Booster Station provides treated water to the distribution system that is sourced from the City of New Brighton. The station re- chlorinates the water and provides additional pressure to our system. The proposed project will recondition pumps and associated equipment, similar to our bi-annual well rehabilitation projects. Project #601-63-24101 Justification Pumps need to be occasionally reconditioned to ensure their reliability and efficiency. The City has not reconditioned these pumps in the last 15 years, and they are due for this overhaul. Useful Life 15 years Project Name Recondition 63rd Ave Booster Pumps Category PW - Water Type Water Distribution Account No.:601-6019-701100 Total2020 2021 2022 2023 2024Expenditures 200,000200,000Construction/Maintenance 200,000 200,000Total Total2020 2021 2022 2023 2024Funding Sources 200,000200,000Water Utility Fund Reserves 200,000 200,000Total Page 127 This page intentionally left blank. Page 128 SANITARY SEWER UTILITY Introduction and Allowable Uses The Sanitary Sewer Utility Fund accounts for funds accumulated for the operational and capital expenses related to the public sanitary sewer utility owned and operated by the City in concert with the Metropolitan Council. For the purposes of the CIP, this section contains budget authority related to the acquisition, expansion, improvement, replacement and/or major repairs of sanitary sewer utility facilities and systems, including: lift stations; sanitary sewer pipe lining and replacement; sanitary sewer force mains and collectors expansion and reconstruction; and their associated components. The primary funding sources for this fund includes the Community Investment Fund, State grants and sanitary sewer utility fees. Annually, the City Council reviews and adopts utility rates and charges to support these activities. Project Highlights In 2020, the CIP for the Sanitary Sewer Utility Fund appropriates $155,000 of budget authority for one capital project: •$155,000, for the reconstruction of the existing sanitary sewer collection system associatedwith three street rehabilitation projects (Project No. 602–63–20406). The public utility funds and their associated CIP sections typically contain capital projects in conjunction with the street improvements planned in the Street Capital Projects Fund or CIP. Generally, the City accomplishes these expansions, improvements or reconstruction of the sanitary sewer utility system in concert with these other capital project in order to reduce the additional costs and further disruption of a stand–alone public utility project. Financial Summary Due to the planned level of expenses, the City plans to contribute approximately $448,900 to the cash balance in 2020. As such, the Sanitary Sewer Utility Fund will remain approximately $1,816,700 above the cash balance threshold for the fund and continue to be near or above the same in 2024. In 2021, the City will invest approximately $1,320,000 in additional sanitary sewer system improvements, specifically $800,000 on the rehabilitation and/or replacement of the so–called Embers Lift Station. As such, the cash balance for the Sanitary Sewer Utility Fund will likely decrease to about $1,815,000, or about $336,400 below the project cash balance threshold. Additionally, the projection assumes a three percent increase in sanitary sewer utility sales annually in part to support ordinary capital expenses and to better maintain appropriate cash balance levels. Page 129 Budget Reallocation. Based on current expenditure activity, the 2020–2024 CIP assumes “carry– over” budget authority of $105,000 supporting one capital project. These amounts may be reflected in the capital projects listed above either in total or in part, including: • $105,000, for the reconstruction of the existing sanitary sewer system associated with the pending 2018 and 2019 street rehabilitation projects (Project No. 602–63–20406). In 2019, the City Council also authorized a budget reallocation to support unbudgeted costs associated with a sanitary sewer lining capital project, which reduced the ending cash balance for the fund by approximately $190,000. The remainder of this page intentionally left blank. $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 Budget Projection Projection Projection Projection 2020 2021 2022 2023 2024 Figure No. 13: Sanitary Sewer Utility Fund Summary Funding Sources Non-Capital Expenses Capital Expenses Ending Fund Balance Ending Cash Balance Page 130 2020 2021 2022 2023 2024 Fund No. 602 Budget Projection Projection Projection Projection Total Funding Sources Sanitary Sewer Utility Fees 6,345,800$ 6,536,200$ 6,732,300$ 6,934,300$ 7,142,300$ 33,690,900$ Interest on Investments 14,000 14,000 14,000 14,000 14,000 70,000 Grants and Other Income ---95,000 -95,000 Total Funding Sources 6,359,800$ 6,550,200$ 6,746,300$ 7,043,300$ 7,156,300$ 33,855,900$ Expenses Non-Capital Expenses Operating Expenses 956,700$ 975,800$ 995,300$ 1,015,200$ 1,035,500$ 4,978,500$ Sewer Service Charge 4,755,700 4,898,400 5,045,400 5,196,800 5,352,700 25,249,000 Depreciation 305,000 311,100 317,300 323,600 330,100 1,587,100 Debt Service 43,500 42,500 46,350 45,100 43,800 221,250 Subtotal Non-capital Expenses 6,060,900$ 6,227,800$ 6,404,350$ 6,580,700$ 6,762,100$ 32,035,850$ Capital Expenses Subtotal Capital Expenses 155,000$ 1,465,000$ 90,000$ 695,000$ 250,000$ 2,655,000$ Total Expenses 6,215,900$ 7,692,800$ 6,494,350$ 7,275,700$ 7,012,100$ 34,690,850$ Surplus (deficiency) of funding sources over (under) expenses 298,900$ 322,400$ 341,950$ 462,600$ 394,200$ 1,820,050$ Estimated Beginning Fund Balance 7,869,335 8,168,235 8,490,635 8,832,585 9,295,185 42,655,975 Estimated Ending Fund Balance 8,168,235$ 8,490,635$ 8,832,585$ 9,295,185$ 9,689,385$ 44,476,025$ Cash Balance Floor (6 months Operating/DS/Capital)829,350 2,150,950 792,650 1,409,500 976,600 6,159,050 Cash Ending Balance 2,646,074 1,814,574 2,383,824 2,475,024 2,949,324 Difference 1,816,724 (336,376)1,591,174 1,065,524 1,972,724 2020 Capital Investment Program Budget and 2021 through 2024 Plan Funding Sources and Expenditure Projections SANITARY SEWER UTILITY FUND Page 131 Capital Investment Program City of Fridley, Minnesota PROJECTS & FUNDING SOURCES BY DEPARTMENT 2020 2024thru Total2020 2021 2022 2023 2024DepartmentProject # Sanitary Sewer Utility 95,00095,000Reimbursement From Other Agencies 1,297,000155,000 331,000 90,000 471,000 250,000Sanitary Sewer Utility Fees 1,263,0001,134,000 129,000Sanitary Sewer Utility Fund Reserves 2,655,000155,000 1,465,000 90,000 695,000 250,000Sanitary Sewer Utility Total 602-63-20406 355,000155,000 50,000 50,000 50,000 50,000Sanitary Sewer Collection System Reconstruction 602-63-21450 1,070,000520,000 550,000Sanitary Sewer Collection System Lining 602-63-21501 190,00095,000 95,000Sanitary Sewer Force Main Reconstruction 602-63-21519 1,040,000800,000 40,000 200,000Sanitary Sewer Lift Station Rehabilitation 2,655,000155,000 1,465,000 90,000 695,000 250,000Sanitary Sewer Utility Total 2,655,000155,000 1,465,000 90,000 695,000 250,000Grand Total Page 132 Capital Investment Program City of Fridley, Minnesota 2020 2024thru Department Sanitary Sewer Utility Contact Public Works Director Description This project involves repairs of the existing sanitary sewer collection system in conjunction with annual street rehabilitation projects. $105,000 is being carried forward from 2019. Project #602-63-20406 Justification This project is to provide preservation of the existing sanitary sewer collection system. Annual funding is targeted to extend the life of existing infrastructure. Useful Life 25 years Project Name Sanitary Sewer Collection System Reconstruction Category PW - Sanitary Sewer Type Sanitary Sewer Account No.:602-6029-705100 Total2020 2021 2022 2023 2024Expenditures 355,000155,000 50,000 50,000 50,000 50,000Construction/Maintenance 155,000 50,000 50,000 50,000 50,000 355,000Total Total2020 2021 2022 2023 2024Funding Sources 255,000155,000 50,000 50,000Sanitary Sewer Utility Fees 100,00050,000 50,000Sanitary Sewer Utility Fund Reserves 155,000 50,000 50,000 50,000 50,000 355,000Total Page 133 Capital Investment Program City of Fridley, Minnesota 2020 2024thru Department Sanitary Sewer Utility Contact Public Works Director Description This project involves the lining of the existing sanitary sewer collection system. Project #602-63-21450 Justification The project consists of relining of clay and concrete sanitary sewer collection piping to prolong its useful life. The project was previously conducted annually, but we are now recommending moving to a biennal basis to complete work at more cost-effective pricing. Useful Life 25 years Project Name Sanitary Sewer Collection System Lining Category PW - Sanitary Sewer Type Sanitary Sewer Account No.:602-6029-705100 Total2020 2021 2022 2023 2024Expenditures 1,070,000520,000 550,000Construction/Maintenance 520,000 550,000 1,070,000Total Total2020 2021 2022 2023 2024Funding Sources 712,000241,000 471,000Sanitary Sewer Utility Fees 358,000279,000 79,000Sanitary Sewer Utility Fund Reserves 520,000 550,000 1,070,000Total Page 134 Capital Investment Program City of Fridley, Minnesota 2020 2024thru Department Sanitary Sewer Utility Contact Public Works Director Description This project involves lining of the existing sanitary sewer collection system. Project #602-63-21501 Justification This project is to provide preservation of the existing sanitary sewer force main piping system. The regular funding is targeted to extend the life of existing infrastructure. Useful Life 25 years Project Name Sanitary Sewer Force Main Reconstruction Category PW - Sanitary Sewer Type Sanitary Sewer Account No.:602-6029-705100 Total2020 2021 2022 2023 2024Expenditures 190,00095,000 95,000Construction/Maintenance 95,000 95,000 190,000Total Total2020 2021 2022 2023 2024Funding Sources 95,00095,000Reimbursement From Other Agencies 95,00095,000Sanitary Sewer Utility Fund Reserves 95,000 95,000 190,000Total Page 135 Capital Investment Program City of Fridley, Minnesota 2020 2024thru Department Sanitary Sewer Utility Contact Public Works Director Description This project involves repair and replacement of sanitary sewer lift stations, specifically the Embers Lift Station in 2021. Project #602-63-21519 Justification The project consists of replacement of sanitary lift stations or components to avoid failures which can lead to sewer backups. Useful Life 25 years Project Name Sanitary Sewer Lift Station Rehabilitation Category PW - Sanitary Sewer Type Sanitary Sewer Account No.:602-6029-703100 Total2020 2021 2022 2023 2024Expenditures 1,040,000800,000 40,000 200,000Construction/Maintenance 800,000 40,000 200,000 1,040,000Total Total2020 2021 2022 2023 2024Funding Sources 330,00090,000 40,000 200,000Sanitary Sewer Utility Fees 710,000710,000Sanitary Sewer Utility Fund Reserves 800,000 40,000 200,000 1,040,000Total Page 136 STORM WATER UTILITY Introduction and Allowable Uses The Storm Water Utility Fund accounts for funds accumulated for the operational and capital expenses related to the public storm water utility owned and operated by the City. For the purposes of the CIP, this section contains budget authority related to the acquisition, expansion, improvement, replacement and/or major repairs of storm water utility facilities and systems, including: flood control; sediment removal; storm water mains and collectors expansion and reconstruction; storm water pond maintenance; water quality improvements; and their associated components. The primary funding sources for this fund includes the Community Investment Fund, State grants and storm water utility fees. Annually, the City Council reviews and adopts utility rates and charges to support these activities. Project Highlights In 2020, the CIP for the Storm Water Utility Fund appropriates $1,313,000 of budget authority for nine capital projects, most notably: • $268,000, for the repair and upgrade of the storm water collection system (Project No. 603–63–20101); • $200,000, for the rehabilitation of a conveyance at Oak Glen Creek underneath property owned by Burlington Northern Santa Fe (Project No. 603–63–19002); and • $200,000, for the lining of two 54” pipes located under Alden Way (Project No. 603–63–20103). In addition to these activities, the public utility funds and their associated CIP sections typically contain capital projects in conjunction with the street improvement planned in the Street Capital Projects Fund or CIP. Generally, the City accomplishes these expansions, improvements or reconstruction of the storm water utility system in concert with these other capital project in order to reduce the additional costs and further disruption of a stand–alone public utility project. Financial Summary Due to the planned level of expenses, the City plans to use approximately $686,700 of cash balance to support capital projects in 2020. As a result of this use of cash, the Storm Water Utility Fund remains approximately $199,700 below the fund balance threshold for the fund and will remain below the same until 2024. The change in cash balance reflect the significant, ongoing investment by the City in the storm water system. In fact, between 2017 and 2024, the City will spend an estimated $7,633,000 on storm water system related improvements, which does not include curb and gutter improvements associated with streets improvements. Based on these expenditure levels, the projection assumes a three percent increase in storm water utility sales annually in part to support ordinary capital expenses and to better maintain Page 137 appropriate cash balance levels. However, if the City continues the anticipated level of investment, the City Council may need to consider CIP revenue and/or expense alternatives, including larger than projected increases in the storm water utility rate, issuance of debt or interfund loans, or reductions in the overall level of spending. Budget Reallocation. Based on current expenditure activity, the 2020–2024 CIP assumes “carry– over” budget authority of $818,000 supporting six capital projects. These amounts may be reflected in the capital projects listed above either in total or in part, including: •$200,000, for Oak Glen Creek Railroad Crossing improvements (Project No. 603–63–19002); •$200,000, (moved to 2021) for a series of project related to Total Maximum Daily Loadrequirement mandated by the State of Minnesota (Project No. 603–63–20467); •$168,000, for the repair and upgrade of the storm water collection system (Project No.603–63–20101); •$120,000, for the reconstruction of the existing storm water collection systems associatedwith the pending 2018 and 2019 street rehabilitation projects (Project No. 603–63–20406); •$105,000, for stormwater pond expansions related to watershed district water qualityimprovements (Project No. 603–63–20102); and •$25,000, for the cleaning and repair of existing stormwater ponds maintained by the City(Project No. 603–63–20472). $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 Budget Projection Projection Projection Projection 2020 2021 2022 2023 2024 Figure No. 14: Storm Water Utility Fund Summary Funding Sources Non-Capital Expenses Capital Expenses Ending Fund Balance Ending Cash Balance Page 138 2020 2021 2022 2023 2024 Fund No. 603 Budget Projection Projection Projection Projection Total Funding Sources Storm Water Utility Fees 1,487,400$ 1,532,000$ 1,578,000$ 1,625,300$ 1,674,100$ 7,896,800$ Grants and Other Revenue 17,000 17,000 17,000 17,000 17,000 85,000 Interest on Investments 15,000 15,000 15,000 15,000 15,000 75,000 Total Funding Sources 1,519,400$ 1,564,000$ 1,610,000$ 1,657,300$ 1,706,100$ 8,056,800$ Expenses Non-Capital Expenses Operating Expenses 861,700$ 878,900$ 896,500$ 914,400$ 932,700$ 4,484,200$ Depreciation 300,000 306,000 312,100 318,300 324,700 1,561,100 Debt Service 31,400 35,600 29,800 33,900 37,800 168,500 Subtotal Operating Expenses 1,193,100$ 1,220,500$ 1,238,400$ 1,266,600$ 1,295,200$ 6,213,800$ Capital Expenses Subtotal Capital Expenses 1,313,000$ 1,115,000$ 1,180,000$ 620,000$ 300,000$ 4,528,000$ Total Expenses 2,506,100$ 2,335,500$ 2,418,400$ 1,886,600$ 1,595,200$ 10,741,800$ Surplus (deficiency) of funding sources over (under) Expenses 326,300$ 343,500$ 371,600$ 390,700$ 410,900$ 1,843,000$ Estimated Beginning Fund Balance 9,230,853 9,557,153 9,900,653 10,272,253 10,662,953 49,623,865 Estimated Ending Fund Balance 9,557,153$ 9,900,653$ 10,272,253$ 10,662,953$ 11,073,853$ 51,466,865$ Cash Balance Floor (6 months Operating/DS/Capital)1,775,250 1,590,050 1,658,050 1,111,100 804,150 6,938,600 Cash Ending Balance 1,575,591 1,110,091 613,791 702,791 1,138,391 Difference (199,659)(479,959)(1,044,259)(408,309)334,241 STORM WATER UTILITY FUND 2020 Capital Investment Program Budget and 2021 through 2024 Plan Funding Sources and Expenditure Projections Page 139 Capital Investment Program City of Fridley, Minnesota PROJECTS & FUNDING SOURCES BY DEPARTMENT 2020 2024thru Total2020 2021 2022 2023 2024DepartmentProject # Storm Water Utility 1,892,000202,000 620,000 150,000 620,000 300,000Storm Water Utility Fees 2,636,0001,111,000 495,000 1,030,000Storm Water Utility Fund Reserves 4,528,0001,313,000 1,115,000 1,180,000 620,000 300,000Storm Water Utility Total 603-63-19002 200,000200,000Oak Glen Creek Railroad Crossing 603-63-20101 1,268,000268,000 700,000 100,000 100,000 100,000Storm Sewer System Upgrades 603-63-20102 525,000185,000 100,000 60,000 100,000 80,000Watershed District Water Quality Projects 603-63-20103 200,000200,000Alden Way Storm Sewer Repair 603-63-20406 445,000185,000 65,000 65,000 65,000 65,000Storm Sewer System Upgrades with Streets 603-63-20445 115,00020,000 20,000 25,000 25,000 25,000Watershed BMP Implementation 603-63-20467 600,000100,000 200,000 300,000TMDL Water Quality Projects 603-63-20472 175,00055,000 30,000 30,000 30,000 30,000Stormwater Pond Maintenance 603-63-20478 100,000100,000Sediment Removal Projects 603-63-22524 900,000900,000Norton Creek Flood Control 4,528,0001,313,000 1,115,000 1,180,000 620,000 300,000Storm Water Utility Total 4,528,0001,313,000 1,115,000 1,180,000 620,000 300,000Grand Total Page 140 Capital Investment Program City of Fridley, Minnesota Department Storm Water Utility 2020 2024thru Contact Public Works Director Description This project will complete the Oak Glen Creek improvements west of Commerce Circle. It will include rehabilitation of a conveyance underneath the Burlington Northern Santa Fe railroad tracks. This project was originally intended to begin in 2019; all $200,000 has been carried forward. Project #603-63-19002 Justification The project will rehabilitate existing infrastructure and include an property acquisition commitment. Useful Life 20 years Project Name Oak Glen Creek Railroad Crossing Category PW - Storm Water Type Drainage Account No.:603-6039-705100 Total2020 2021 2022 2023 2024Expenditures 200,000200,000Construction/Maintenance 200,000 200,000Total Total2020 2021 2022 2023 2024Funding Sources 200,000200,000Storm Water Utility Fund Reserves 200,000 200,000Total Page 141 Capital Investment Program City of Fridley, Minnesota Department Storm Water Utility 2020 2024thru Contact Public Works Director Description This project includes upgrades and repairs to storm sewer conveyance system Citywide. $168,000 carried forward from 2019. Project #603-63-20101 Justification This work is needed annually to mitigate flood prone areas, and to maintain the integrity of the overall conveyance system and other infastructure. A detailed work plan is typically identified through surveys conducted for outfall inspections, other rehabilitation projects, or as problem areas arise or are identified. The project will ensure resources are available to address immediate concerns or failures in a timely fashion, and to mitigate future issues. Useful Life 25 years Project Name Storm Sewer System Upgrades Category PW - Storm Water Type Drainage Account No.:603-6039-705100 Total2020 2021 2022 2023 2024Expenditures 1,268,000268,000 700,000 100,000 100,000 100,000Construction/Maintenance 268,000 700,000 100,000 100,000 100,000 1,268,000Total Total2020 2021 2022 2023 2024Funding Sources 720,000420,000 100,000 100,000 100,000Storm Water Utility Fees 548,000268,000 280,000Storm Water Utility Fund Reserves 268,000 700,000 100,000 100,000 100,000 1,268,000Total Page 142 Capital Investment Program City of Fridley, Minnesota Department Storm Water Utility 2020 2024thru Contact Public Works Director Description This project includes a stormwater pond expansion serving City watersheds and improving stormwater quality. The location will vary from year to year. $105,000 carried forward from 2019. Project #603-63-20102 Justification These projects are used to leverage additional outside funding sources for water quality projects in the Mississippi Watershed Management Organization area. Useful Life 25 years Project Name Watershed District Water Quality Projects Category PW - Storm Water Type Drainage Account No.:603-6039-705100 Total2020 2021 2022 2023 2024Expenditures 525,000185,000 100,000 60,000 100,000 80,000Construction/Maintenance 185,000 100,000 60,000 100,000 80,000 525,000Total Total2020 2021 2022 2023 2024Funding Sources 282,000102,000 100,000 80,000Storm Water Utility Fees 243,00083,000 100,000 60,000Storm Water Utility Fund Reserves 185,000 100,000 60,000 100,000 80,000 525,000Total Page 143 Capital Investment Program City of Fridley, Minnesota Department Storm Water Utility 2020 2024thru Contact Public Works Director Description This project includes lining rehabilitation of two 54" corrugated metal pipes that cross under Alden Way along the route of Stonybrook Creek. Project #603-63-20103 Justification An inspection subsequent to installation of the Craigbrook storm sewer interceptor showed these pipes have significant corrosion. The Stonybrook improvements completed in 2018 and 2019 allowed inspection of these pipes and their repair to be completed, therefore this project was added in 2019 and not in the prior schedule of the Capital Investment Plan. Useful Life 25 years Project Name Alden Way Storm Sewer Repair Category PW - Storm Water Type Improvement Total Project Cost:$200,000 Account No.:603-6039-705100 Total2020 2021 2022 2023 2024Expenditures 200,000200,000Construction/Maintenance 200,000 200,000Total Total2020 2021 2022 2023 2024Funding Sources 200,000200,000Storm Water Utility Fund Reserves 200,000 200,000Total Page 144 Capital Investment Program City of Fridley, Minnesota Department Storm Water Utility 2020 2024thru Contact Public Works Director Description This project includes repairs to the storm sewer conveyance system in conjunction with annual street rehabilitation projects. $120,000 carried forward from 2019. Project #603-63-20406 Justification This work is needed annually to provide maintenance and repairs needed to the existing storm sewer collection system. Useful Life 25 years Project Name Storm Sewer System Upgrades with Streets Category PW - Storm Water Type Drainage Account No.:603-6039-705100 Total2020 2021 2022 2023 2024Expenditures 445,000185,000 65,000 65,000 65,000 65,000Construction/Maintenance 185,000 65,000 65,000 65,000 65,000 445,000Total Total2020 2021 2022 2023 2024Funding Sources 150,00020,000 65,000 65,000Storm Water Utility Fees 295,000185,000 65,000 45,000Storm Water Utility Fund Reserves 185,000 65,000 65,000 65,000 65,000 445,000Total Page 145 Capital Investment Program City of Fridley, Minnesota Department Storm Water Utility 2020 2024thru Contact Public Works Director Description This project includes water quality improvements through application of Best Management Practices (BMPs) for stormwater. Project #603-63-20445 Justification This project will apply stormwater BMPs citywide on a targeted basis through the installation of raingardens, water quality structures and biofilters. Useful Life 25 years Project Name Watershed BMP Implementation Category PW - Storm Water Type Drainage Account No.:603-6039-635100 Total2020 2021 2022 2023 2024Expenditures 115,00020,000 20,000 25,000 25,000 25,000Construction/Maintenance 20,000 20,000 25,000 25,000 25,000 115,000Total Total2020 2021 2022 2023 2024Funding Sources 50,00025,000 25,000Storm Water Utility Fees 65,00020,000 20,000 25,000Storm Water Utility Fund Reserves 20,000 20,000 25,000 25,000 25,000 115,000Total Page 146 Capital Investment Program City of Fridley, Minnesota Department Storm Water Utility 2020 2024thru Contact Public Works Director Description This project includes addressing water quality Total Maximum Daily Load (TMDL) requirements mandated by the Minnesota Pollution Control Agency. $200,000 carried forward from 2019 to 2021. Project #603-63-20467 Justification This series of projects is intended on TDML requirements mandated by the Minnesota Pollution Control Agency through the City's stormwater permit. Useful Life 25 years Project Name TMDL Water Quality Projects Category PW - Storm Water Type Drainage Account No.:603-6039-631100 Total2020 2021 2022 2023 2024Expenditures 600,000100,000 200,000 300,000Construction/Maintenance 100,000 200,000 300,000 600,000Total Total2020 2021 2022 2023 2024Funding Sources 600,000100,000 200,000 300,000Storm Water Utility Fees 100,000 200,000 300,000 600,000Total Page 147 Capital Investment Program City of Fridley, Minnesota Department Storm Water Utility 2020 2024thru Contact Public Works Director Description This project involves repair and cleaning of small stormwater ponds outside other capital projects. $25,000 was carried forward from 2019. Project #603-63-20472 Justification This work is needed annually to maintain the needed capacity to keep exisiting storm sewer pond systems functioning normally. Useful Life 25 years Project Name Stormwater Pond Maintenance Category PW - Storm Water Type Drainage Account No.:603-6039-635100 Total2020 2021 2022 2023 2024Expenditures 175,00055,000 30,000 30,000 30,000 30,000Construction/Maintenance 55,000 30,000 30,000 30,000 30,000 175,000Total Total2020 2021 2022 2023 2024Funding Sources 90,00030,000 30,000 30,000Storm Water Utility Fees 85,00055,000 30,000Storm Water Utility Fund Reserves 55,000 30,000 30,000 30,000 30,000 175,000Total Page 148 Capital Investment Program City of Fridley, Minnesota Department Storm Water Utility 2020 2024thru Contact Public Works Director Description This item includes projects to remove sedimentation from large flow ways. Project #603-63-20478 Justification This project would provide funding for large sediment removal projects. The 2020 allocation is a partial allocation for Locke Lake dredging, if needed as determined by an updated sediment survey. Useful Life 25 years Project Name Sediment Removal Projects Category PW - Storm Water Type Drainage Account No.:603-6039-635100 Total2020 2021 2022 2023 2024Expenditures 100,000100,000Construction/Maintenance 100,000 100,000Total Total2020 2021 2022 2023 2024Funding Sources 100,000100,000Storm Water Utility Fund Reserves 100,000 100,000Total Page 149 Capital Investment Program City of Fridley, Minnesota Department Storm Water Utility 2020 2024thru Contact Public Works Director Description The project willl mitigate flooding to properties along Norton Creek including those near 73rd Avenue. Project #603-63-22524 Justification The project will mitigate flooding issues for properties along Norton Creek. Useful Life 25 years Project Name Norton Creek Flood Control Category PW - Storm Water Type Drainage Account No.:603-6039-705100 Total2020 2021 2022 2023 2024Expenditures 900,000900,000Construction/Maintenance 900,000 900,000Total Total2020 2021 2022 2023 2024Funding Sources 900,000900,000Storm Water Utility Fund Reserves 900,000 900,000Total Page 150 MUNICIPAL LIQUOR Introduction and Allowable Uses The Municipal Liquor Fund accounts for funds accumulated for the operational and capital expenses related to the sale of beer, wine and liquor by the City. For the purposes of the CIP, this section contains budget authority related to the acquisition, expansion, improvement, replacement and/or major repairs for the two municipal liquor stores operated by the City, including: building and cooler improvements; furnishings and furniture; information technology; real estate; security systems; and signage. The primary funding sources for this fund includes the proceeds from the sale of beer, wine and liquor, and other miscellaneous items sold by the municipal liquor stores. Project Highlights In 2020, the CIP for the Municipal Liquor Fund appropriates $47,500 of budget authority for three capital projects, most notably: • $20,000, for the replacement of racking and shelving at the Fridley Market location (Project No. 609–69–20101); • $15,000, for improvement for the check–out or “cash wrap” area (Project No. 609–69–20102); and • $12,500, for technology upgrades including computer, printers and a server (Project No. 609–69–20103). Financial Summary Due to the planned level of expenditures, the City plans to use approximately $31,600 of cash balance to support capital projects in 2020. Despite this use of cash, the Municipal Liquor Fund remains approximately $334,300 above the cash balance threshold for the fund. The planned capital projects represent the largest capital investment in the Municipal Liquor Division since renovation of the Fridley Market location in 2013. Additionally, the CIP now includes one–time and reoccurring capital project in 2021 and 2024. Generally, the Municipal Liquor Division will undertake a series of improvement while attempting to maintain its long–standing obligations to other funds. Figure No. 15 on the following page outlines the project fund activity through 2024. Budget Reallocation. Based on current expenditure activity, the 2020–2024 CIP assumes no “carry–over” budget authority for 2020 in the Municipal Liquor Fund. Page 151 The remainder of this page intentionally left blank. $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 Budget Projection Projection Projection Projection 2020 2021 2022 2023 2024 Figure No. 15: Municipal Liquor Fund Summary Funding Sources Non-Capital Expenses Capital Expenses Ending Fund Balance Ending Cash Balance Page 152 2020 2021 2022 2023 2024 Fund No. 609 Budget Projection Projection Projection Projection Total Funding Sources Liquor Sales 5,880,700$ 6,057,100$ 6,238,800$ 6,426,000$ 6,618,800$ 31,221,400$ Total Funding Sources 5,880,700$ 6,057,100$ 6,238,800$ 6,426,000$ 6,618,800$ 31,221,400$ Expenses Non-Capital Expenses Cost of Sales 4,341,700$ 4,542,800$ 4,679,100$ 4,819,500$ 4,964,100$ 23,347,200$ Operating Expenses 1,184,600 1,208,300 1,232,500 1,257,200 1,282,300 6,164,900 Depreciation 53,700 54,800 55,900 57,000 58,100 279,500 Transfers 338,500 338,500 338,500 338,500 338,500 1,692,500 Subtotal Non-capital Expenses 5,918,500$ 6,144,400$ 6,306,000$ 6,472,200$ 6,643,000$ 31,484,100$ Capital Expenses Subtotal Capital Expenses 47,500$ 20,000$ -$ -$ 32,500$ 100,000$ Total Expenses 5,966,000$ 6,164,400$ 6,306,000$ 6,472,200$ 6,675,500$ 31,584,100$ Surplus (deficiency) of funding sources over (under) Expenses (37,800)$ (87,300)$ (67,200)$ (46,200)$ (24,200)$ (262,700)$ Estimated Beginning Fund Balance 1,372,536 1,334,736 1,247,436 1,180,236 1,134,036 6,268,980 Estimated Ending Fund Balance 1,334,736$ 1,247,436$ 1,180,236$ 1,134,036$ 1,109,836$ 6,006,280$ MUNICIPAL LIQUOR FUND 2020 Capital Investment Program Budget and 2021 through 2024 Plan Funding Sources and Expenditure Projections Page 153 Capital Investment Program City of Fridley, Minnesota PROJECTS & FUNDING SOURCES BY DEPARTMENT 2020 2024thru Total2020 2021 2022 2023 2024DepartmentProject # Municipal Liquor 100,00047,500 20,000 32,500Municipal Liquor Fund Reserves 100,00047,500 20,000 32,500Municipal Liquor Total 609-69-20101 20,00020,000Rack and Shelving Replacement 609-69-20102 25,00012,500 12,500Check-Out/Cash Wrap Improvements 609-69-20103 25,00015,000 10,000Technology Upgrades 609-69-21100 20,00010,000 10,000Signage Improvements 609-69-21101 10,00010,000Cooler Modifications 100,00047,500 20,000 32,500Municipal Liquor Total 100,00047,500 20,000 32,500Grand Total Page 154 Capital Investment Program City of Fridley, Minnesota Department Municipal Liquor 2020 2024thru Contact Finance Director Description To replace racking and shelving at the Fridley Market location. Project #609-69-20101 Justification At approximately 20 years old, the much of the current racking and shelving is past its useful life and in need of replacement. Useful Life 10 years Project Name Rack and Shelving Replacement Category Finance - Municipal Liquor Type Equipment Account No.:609-6910-704100 Total2020 2021 2022 2023 2024Expenditures 20,00020,000Equip./Vehicles/Furnishings 20,000 20,000Total Total2020 2021 2022 2023 2024Funding Sources 20,00020,000Municipal Liquor Fund Reserves 20,000 20,000Total Page 155 Capital Investment Program City of Fridley, Minnesota Department Municipal Liquor 2020 2024thru Contact Finance Director Description To improve the check-out area and cash wraps, and to better integrate a fourth and fifth cash register into the existing cash wraps. Project #609-69-20102 Justification The project will provide greater continuity with the current check-out and cash wrap areas and allow for more efficient use of space. It will also make the cashiering process more efficient and timely for both staff and customers. Useful Life 15 years Project Name Check-Out/Cash Wrap Improvements Category Finance - Municipal Liquor Type Improvement Account No.:609-6910-704100 Total2020 2021 2022 2023 2024Expenditures 25,00012,500 12,500Equip./Vehicles/Furnishings 12,500 12,500 25,000Total Total2020 2021 2022 2023 2024Funding Sources 25,00012,500 12,500Municipal Liquor Fund Reserves 12,500 12,500 25,000Total Page 156 Capital Investment Program City of Fridley, Minnesota Department Municipal Liquor 2020 2024thru Contact Finance Director Description To provide for both dynamic point of sale signage, and purchase replacements or upgrades for the existing server, printer and sonic walls. Project #609-69-20103 Justification Generally, the municipal liquor operation would benefit from more dynamic signage, which will capitalize on existing technology to improve both customer experience and sales. More importantly, critical information technology infrastructure, including the server and printers, are in need of replacement. Useful Life 10 years Project Name Technology Upgrades Category Finance - Municipal Liquor Type Equipment Account No.:609-6910-703100 Total2020 2021 2022 2023 2024Expenditures 25,00015,000 10,000Equip./Vehicles/Furnishings 15,000 10,000 25,000Total Total2020 2021 2022 2023 2024Funding Sources 25,00015,000 10,000Municipal Liquor Fund Reserves 15,000 10,000 25,000Total Page 157 Capital Investment Program City of Fridley, Minnesota Department Municipal Liquor 2020 2024thru Contact Finance Director Description To update and otherwise improve signage and other promotional material located throughout the Fridley Market location. Project #609-69-21100 Justification The signage and similar material have not been modified or updated since the renovation of the Fridley Market location. In order to maintain the contemporary appearance of the store, remain consistent with shifts in branding strategies and improve customer experiences, the signage needs to be changed or replaced on a regular schedule. Useful Life 10 years Project Name Signage Improvements Category Finance - Municipal Liquor Type Improvement Account No.:609-6910-704100 Total2020 2021 2022 2023 2024Expenditures 20,00010,000 10,000Equip./Vehicles/Furnishings 10,000 10,000 20,000Total Total2020 2021 2022 2023 2024Funding Sources 20,00010,000 10,000Municipal Liquor Fund Reserves 10,000 10,000 20,000Total Page 158 Capital Investment Program City of Fridley, Minnesota Department Municipal Liquor 2020 2024thru Contact Finance Director Description To modify the existing layout of the main cooler to include an additional four doors and relocate certain shelving to accommodate the change. Project #609-69-21101 Justification The project will improve the selection of beer and other products as part of the main cooler and make more efficient use of the existing cooler space. It was also allow the store to remove stand-alone coolers from other parts of the sales floor, which will improve both the appearance and flow of the store. Useful Life 20 years Project Name Cooler Modifications Category Finance - Municipal Liquor Type Buildings Total Project Cost:$10,000 Account No.:609-6910-701100 Total2020 2021 2022 2023 2024Expenditures 10,00010,000Construction/Maintenance 10,000 10,000Total Total2020 2021 2022 2023 2024Funding Sources 10,00010,000Municipal Liquor Fund Reserves 10,000 10,000Total Page 159