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City Council Packet 11-12-2019 Special
City Council 1 of 1 November 12, 2019 CITY OF PLYMOUTH AGENDA Special City Council November 12, 2019, 5:30 PM 1. CALL TO ORDER 2. TOPICS 2.1 2020/2021 Budget Agenda Utility Rate Study Utility Trunk Fund Analysis CIP - Projects by Department Ameresco Executive Study Ameresco Executive Study - PP #2 FTE Summary by Division Levy 2.2 Set future Study Sessions November December January 3. ADJOURN 1 Special City Council November 12, 2019 Agenda Number:2.1 To:Dave Callister, City Manager Prepared by:Jodi Bursheim, Finance Manager Reviewed by:Laurie Hokkanen, Administrative Services Director Item:2020/2021 Budget 1. Action Requested: Provide staff direction to finalize the 2020 property tax levy, budget (including utility rate increases), and the Capital Improvement Plan. 2. Background: Council has received all budgeted fund materials during previous budget sessions held on the following dates: August 20, September 10, September 24, October 8, and October 15. At the October 15 meeting, Council requested staff to provide a final review of the utility rate studies, Ameresco facility study, staffing, and the proposed levy. Materials are provided in the budget binder and staff will present a final review of those items during the study session on November 12. The proposed 2020 levy is $38,733,423 or a 7.5% increase from 2019. This levy includes a partial levy for the Plymouth Creek Center Expansion project. 3. Budget Impact: Staff will update the budget further after the Council’s discussion and prepare for the final adoption planned for December 10. 4. Attachments: Agenda Utility Rate Study Utility Trunk Fund Analysis CIP - Projects by Department Ameresco Executive Study Ameresco Executive Study - PP #2 FTE Summary by Division Levy 2 City of Plymouth Budget Workshop – November 12, 2019 1. Introduction –Dave 2. Review of Utility Studies a. Utility Study highlights & Impacts – Jodi/Julie b. Water Conservation Program - Michael 3.CIP a.Overall Capital Improvement Project report - Laurie b. Ameresco Executive Study highlights -Michael 4. Review of Staffing a. FTE by division - Givonna 5. Review of Prelim Levy –Dave/Jodi a. Comparative Cities b. County & School Districts c.Impacts d.Levy Options 6. Summary -Dave 3 Water, Sanitary Sewer, Water Resources & Solid Waste Management Utility Rate Study For Year Ending December 31, 2018 Prepared By: Finance Division 4 2 | P a g e Introduction This Utility Rate Study was completed to update the financial projections for the water, sanitary sewer, water resources, and solid waste management utilities. Goals of a Utility Enterprise Rate Structure Water, sanitary sewer, water resources, and solid waste management utility funds are reported in financial statements as enterprise funds, meaning that the charges for services are designed to cover the costs of operations. The general goals of a utility rate structure are: • Rates sufficient to cover capital and operating costs of the system • Provide adequate cash balances for cash-flow and contingencies • Allocate costs consistently to those that use the system • Promote conservation by charging higher rates for greater consumption Capital Needs The City has completed its Capital Improvement Plan (2020 – 2029) which is incorporated into this rate study to ensure future capital needs are covered by the proposed rate structures. The CIP for the water, sanitary sewer, and water resource utilities is provided in Appendix E. The City has maintained a comprehensive long-range Capital Improvement Plan for many years focusing on replacement of existing infrastructure and system expansion to accommodate new growth. The City’s fiscal planning has resulted in very little debt for the utility systems. In 2004, bonds (series 2004B) were issued in the amount of $13,140,000 to fund water treatment plant upgrades. These bonds were refunded in 2012 resulting in savings of over $257,000. The amount outstanding on the refunding bond is $1,005,000 as of 12/31/18 and was retired on February 1, 2019. Assumptions The following chart summarizes the significant assumptions in the rate study. Water Utility Sanitary Sewer Utility Water Resources Utility Solid Waste Management Consumption N/A N/A Revenue New growth is estimated at 100- 250 units per year from 2019- 2029. Consumption is approximately 68% of water consumption based on historic ratios. Operating Expenses Capital Expenses N/A Cash 1 Per the American City and County Magazine's published Construction Cost Index Average consumption over a 3 year period. New growth is estimated at 100-250 units per year from 2019-2029. Projections include increases of 3.0%1 annually to account for new demand and inflation. Capital expenditures from 2020-2029 are based on the City's Capital Improvement Plan through 2029. A contingency for unforeseen projects are also included in projections for 2025- 2029. An inflationary adjustment of 2% is included on placeholder projects. Cash projections are based on 12/31/2018 cash balances. 5 3 | P a g e Water Utility The water utility fund provides municipal water service to the community. The fund finances the operations, maintenance, and construction of the water systems. Rate Structure The primary revenue sources of the water utility fund are consumption fees, base charges, and demand charges. Consumption Fees are based on the metered use of water and primarily used to offset the costs of water production, maintenance and improvements to the existing system. Base Charges are fixed monthly fees for residential and commercial customers and help offset the cost of expenses incurred regardless of the amount of water consumed, such as utility staffing and the billing process. Base charges are applied to all accounts including separately billed irrigation accounts. Demand Charges are billed to commercial users with meters 1 ½” or greater and are based on meter size. Demand charges were established to offset the cost of increased water demand of commercial users. Residential The Minnesota Legislature requires a conservation rate structure for all metropolitan area public water suppliers, who serve more than 1,000 people. The Department of Natural Resources has provided further guidance that an increasing tiered rate means that there is a significant increase between the tiers to encourage conservation, or at least 25% cost increase between the first two tiers and at least 50% more between the last two. The current and recommended rate structures are in compliance with these guidelines; tier two is 25% and tier three is 72%. With a three-tiered rate system, a typical resident will pay more for water used for irrigation than water used in daily activities. The purpose of a tiered rate system is: 1. To promote conservation. 2. To allocate costs appropriately, based on metered consumption. Cities construct water systems to meet the capacity of peak watering days in the heat of the summer. A tiered rate structure charges more per gallon for peak use, thereby allocating the cost of over-sizing the system for peak days to peak users. Residential customers are billed a base charge per month and consumption fees per 1,000 gallons of water used. Some residential customers have a separate meter to measure non-essential water consumption such as irrigation or water used for pools, hot tubs, and hockey rinks and are billed separately from their daily use. However, most residents do not have a separate meter to measure non-essential water consumption and this use is included in the three-tiered rate structure along with their daily water consumption. Commercial Commercial businesses, industrial, and institutional organizations are included in this category. Commercial customers are billed a base charge per month, consumption fees per 1,000 gallons of water used, and demand charges for meters that are 1 ½” or greater in size. Many of these customers have separate irrigation meters which measure seasonal water use. 6 4 | P a g e Billing Residential Consumption fees, including daily activity and non-essential use, account for nearly 76% of the residential billings, with the remaining 24% coming from the base charges. Residential consumption fees total approximately $3.6 million per year, while base charges bring in over $1 million. The average annual residential consumption over the past three years (2016-2018) was 2,103,181,384 gallons. Commercial Consumption fees, including daily activity and irrigation use, account for nearly 70% of commercial billings, base charges account for 2%, and demand charges account for the remaining 28%. Commercial consumption fees total approximately $1.3 million per year while base and demand charges average approximately $635,000 annually. The average annual commercial consumption over the past three years (2016-2018) was 757,273,292 gallons. The following table shows the top 10 commercial water users which account for 23% of the total commercial consumption and 6% of the total residential and commercial consumption. Company Business Use Irrigation Total Medivators 60,901,944 1,876,255 62,778,199 Honeywell 17,675,986 671,080 18,347,066 Hennepin County 16,450,034 985,550 17,435,584 Lifetime Fitness Inc 14,669,251 - 14,669,251 Regency Plymouth Ventures 11,969,500 1,192,607 13,162,107 Plymouth Corporate Center 6,851,486 1,842,634 8,694,120 AGA Medical Corp 5,577,332 3,100,829 8,678,161 Prudential Financial 7,324,800 - 7,324,800 Independent School #284 3,779,328 2,863,089 6,642,417 United Health Group 5,606,340 900,000 6,506,340 2018 Consumption in Gallons Like residential users, commercial users pay consumption fees and base charges. Commercial accounts also pay a demand charge for meters that are 1 ½” or greater. For accounts that have multiple meters, the commercial user pays the demand fee associated with the largest meter. The following chart breaks down commercial consumption by size and type of meter. 7 5 | P a g e Meter Size Meter Count Total Consumption Minimum Maximum Average Median 3/4" and 1"223 26,591,501 1 202,209 10,196 3,243 1 1/2"319 119,488,861 3 1,304,783 31,444 13,496 2"154 116,059,494 5 770,851 62,973 30,679 3"55 83,004,121 3 1,364,033 127,502 61,364 4"20 134,728,310 59 4,970,647 561,368 230,625 6"3 19,358,680 170 1,342,671 537,741 541,400 499,230,967 241 9,955,194 1,331,224 880,807 Meter Size Meter Count Total Consumption Minimum Maximum Average Median 3/4" and 1"127 27,590,714 1 399,110 33,856 27,221 1 1/2"231 102,352,641 1 616,764 36,937 61,884 2"65 52,185,635 1 915,508 64,988 102,167 3"18 18,479,195 1 928,181 85,552 72,262 4"2 2,373,186 1,804 811,827 98,883 246,728 6"2 - - - - - 202,981,371 1,808 3,671,390 320,216 510,262 2018 Commercial Consumption Commercial Irrigation Consumption 2018 Of the total annual commercial consumption, commercial irrigation accounts for 29% compared to regular commercial use of 71%. For commercial usage during the months of June - September, consumption consists of 52% regular use and 48% irrigation. Commercial irrigation during the peak months of June through September accounts for 24% of the total annual commercial usage. Irrigation and other non-essential uses Over 50% of the total water consumption occurs during four months; June through September. Non-essential consumption is defined as irrigation or water used in filling pools, hot tubs, hockey rinks or other miscellaneous uses. Non-essential usage is approximately 30% of the overall water consumption. Commercial irrigation contributes 8% and residential non-essential use is estimated to be approximately 22% towards the overall water consumption. The majority of residential irrigation consumption is not separately metered and is included within the regular residential consumption structure. The second and third tier of this structure is assumed to be primarily non- essential use of water. During the months of June – September, 44% of residential users fall into the second tier of consumption and 14% fall into the third tier. During the months of October-May, 17% of residential users fall into the second tier and less than 1% fall into the third tier. Of the total irrigation consumption in 2018, the breakdown between commercial and residential users is estimated to be 26% and 74% respectively. The commercial irrigation rate was created in 2010. The irrigation rate was set at a conservation rate of 25% over the lowest tier and is within the guidelines set by the Department of Natural Resources. 8 6 | P a g e The current billing structure with rates per 1,000 gallons is as follows: 2019 Rates Conservation Rate $4.35 Tier 1 $1.57 Tier 2 $1.97 25% Tier 3 $3.39 72% Regular $1.87 Irrigation $2.34 25%All irrigation consumption Flat feeFlat fee All regular consumption N/A N/A up to 17,500 gallons > 17,500 gallons Daily Use (includes non-essential use not separately metered)Irrigation-only Meter N/AConsumption based fee Consumption based fee Consumption based fee Flat fee Type of Fee up to 6,250 gallons 6,251 to 17,500 gallons > 17,500 gallons Residential & Multi-Family Commercial Base Charge (Comm & Res) Currently, residential non-essential use is embedded in the daily use structure unless a separate meter was installed. The residential rate structure provides for two tiers for this non-essential use as noted above in the table. Commercial irrigation is set at a flat rate that falls between the second and third tier rates for residential. One of the main differences between the two structures is that residential irrigation rates are tiered depending on usage above or below 17,500 gallons; whereas the commercial irrigation rate is for all irrigation consumption. Further, to incent water conservation, a rebate program was offered for irrigation. The rebate program was originally funded primarily by a grant from the Met Council. Funding was exhausted quickly due to the large demand for participation in the program resulting in closure of the program on June 23, 2017. Since the program was designed to be on a first come, first served basis, a long list of users were not accepted into the program. In the 2017 study, Council increased funding available for the water efficiency rebate program. The 2018 rebate program was 100% city funded. Rebates were offered to incent residential and commercial customers to replace old, inefficient sprinkler spray bodies and irrigation controllers with new WaterSense certified products. Rebates reimbursed owners for 75% of the cost of the device, up to a maximum of $100 for residential or $200 for commercial for WaterSense sprinkler spray bodies and $200 for residential or $500 for commercial for WaterSense irrigation controllers. The results of the program are as follows: Devices Installed Properties Benefited Total Rebates Sprinkler Heads 20 2 $170 Irrigation Controls 153 153 $31,652 TOTALS 173 1,695 $31,782 Upon review of benefiting properties, the annual gallons saved for non-essential water usage in June – September is approximately 40% as a result of the sprinkler spray body and irrigation controller upgrades. Rainfall and timing of installation of new WaterSense devices impacts water usage savings. 9 7 | P a g e Total Residential and Commercial Although the customer base is primarily residential at 97% of the total number of utility customers, approximately 29% of the utility revenue comes from commercial billings. Residential consumption accounted for 75% or 2.1 billion gallons of the City’s total annual water consumption. Commercial consumption accounted for 25% or 702 million gallons of the City’s total water consumption. The following charts illustrate the relationship between the total residential and commercial customers: 2018 Actual 22,667 , 97% 796 , 3% Water Utility Customers (Accounts) Residential Commercial $4,850,340 , 71% $1,946,163 , 29% Revenue by Customer Base, Consumption & Demand Charges (Revenue) Residential Commercial The following charts illustrate the relationship between types of consumption. 2018 Actual 2,151,455,920 , 75% 702,212,338 , 25% Consumption by Customer (Gallons) Residential Commercial 2,509,994,248 , 88% 343,674,010 , 12% Consumption by Usage (Gallons) Non-Irrigation * Irrigation *Non-irrigation includes single-metered residential irrigation which may under state the ratio. 10 8 | P a g e Water Rates Based on the projections in Appendix C-1, increases are necessary in the water utility. The proposed rates are illustrated in the chart below. Current 3.50% 3.50% 3.50% 3.00% 3.00% in gallons 2019 2020 2021 2022 2023 2024 0 to 6,250 $1.57 $1.62 $1.68 $1.74 $1.79 $1.84 6,251 to 17,500 1.97 2.04 2.11 2.18 2.25 2.32 >17,501 3.39 3.51 3.63 3.76 3.87 3.99 Base Charge $4.35 $4.50 $4.66 $4.82 $4.96 $5.11 in gallons 2020 2021 2022 2023 2024 0 to 6,250 $0.05 $0.06 $0.06 $0.05 $0.05 6,251 to 17,500 0.07 0.07 0.07 0.07 0.07 >17,501 0.12 0.12 0.13 0.11 0.12 Base Charge $0.15 $0.16 $0.16 $0.14 $0.15 Change in Residential & Multi-Family Rates per month Proposed Residential & Multi-Family Rates per 1,000 gallons per 1,000 gallons per month The effect of these rate increases on customers, by various consumption level is as follows: Gallons per Current 3.50%3.50%3.50%3.00%3.00% Month 2019 2020 2021 2022 2023 2024 Light 2,500 $8.28 $8.55 $8.86 $9.17 $9.44 $9.71 Average 6,250 14.16 14.63 15.16 15.70 16.15 16.61 Above Avg 12,500 26.48 27.38 28.35 29.32 30.21 31.11 Heavy 22,500 53.28 55.13 57.05 59.02 60.81 62.66 Note: Projections are based on proposed increases to base charges and consumption rates. Gallons per Month 2020 2021 2022 2023 2024 Light 2,500 $0.28 $0.31 $0.31 $0.26 $0.28 Average 6,250 0.46 0.54 0.54 0.45 0.46 Above Avg 12,500 0.90 0.97 0.97 0.89 0.90 Heavy 22,500 1.85 1.92 1.97 1.79 1.85 Consumption per customer, per month Consumption Level Level per customer, per month Change in Residential & Multi-Family Charges by Consumption Proposed Residential & Multi-Family Charges by Consumption Level 11 9 | P a g e Current 3.50% 3.50% 3.50% 3.00% 3.00% 2019 2020 2021 2022 2023 2024 Consumption Fees $1.87 $1.94 $2.01 $2.08 $2.14 $2.20 Irrigation Fees 2.34 2.42 2.50 2.59 2.67 2.75 Base Charge 4.35 4.50 4.66 4.82 4.96 5.11 Demand Charges 3/4" and 1" meters N/A N/A N/A N/A N/A N/A 1 1/2" meter $54.13 $56.02 $57.98 $60.01 $61.81 $63.66 2" meter 81.20 84.04 86.98 90.02 92.72 95.50 3" meter 169.16 175.08 181.21 187.55 193.18 198.98 4" meter 270.67 280.14 289.94 300.09 309.09 318.36 6" meter 541.36 560.31 579.92 600.22 618.23 636.78 2020 2021 2022 2023 2024 Consumption Fees $0.07 $0.07 $0.07 $0.06 $0.06 Irrigation Fees 0.08 0.08 0.09 0.08 0.08 Base Charge 0.15 0.16 0.16 0.14 0.15 Demand Charges 3/4" and 1" meters N/A N/A N/A N/A N/A 1 1/2" meter $1.89 $1.96 $2.03 $1.80 $1.85 2" meter 2.84 2.94 3.04 2.70 2.78 3" meter 5.92 6.13 6.34 5.63 5.80 4" meter 9.47 9.80 10.15 9.00 9.27 6" meter 18.95 19.61 20.30 18.01 18.55 per month Change in Commercial Rates per month Proposed Commercial Rates 12 10 | P a g e The effect of these rate increases on customers, including base, consumption and demand charges, if applicable, by average consumption at each meter size is as follows: Average Gallons per Current 3.50%3.50%3.50%3.00%3.00% Month 2019 2020 2021 2022 2023 2024 3/4" and 1" meters 10,200 $23.42 $24.29 $25.16 $26.04 $26.79 $27.55 1 1/2" meter 31,446 117.28 121.53 125.85 130.24 134.06 137.95 2" meter 62,973 203.31 210.71 218.22 225.82 232.44 239.15 3" meter 127,502 411.94 426.93 442.15 457.57 470.99 484.59 4" meter 561,368 1,324.78 1,373.69 1,422.95 1,472.56 1,515.38 1,558.48 6" meter 537,741 873.82 905.86 938.23 970.96 999.31 1,027.95 Irrigation 320,216 753.66 779.42 805.20 834.18 859.94 885.70 Note: Projections are based on proposed increases to base charges, consumption rates and demand charges. Average Gallons per Month 2020 2021 2022 2023 2024 3/4" and 1" meters 10,200 $0.86 $0.87 $0.87 $0.75 $0.76 1 1/2" meter 31,446 4.24 4.32 4.39 3.83 3.89 2" meter 62,973 7.40 7.51 7.61 6.62 6.71 3" meter 127,502 15.00 15.22 15.43 13.42 13.60 4" meter 561,368 48.92 49.26 49.61 42.82 43.10 6" meter 537,741 32.04 32.38 32.73 28.35 28.63 Irrigation 320,216 25.77 25.78 28.98 25.76 25.77 per customer, per month Meter Size Proposed Commercial Charges by Meter Size per customer, per month Meter Size Change in Commercial Charges by Meter Size Summary The Water Fund had an estimated cash balance of $2,911,607 as of 12/31/18. The actual cash balance is $3,891,288. Rate increases are consistent with the previous study. To maintain cash balances in the Water Fund at the target reserve (see page 21), the Water Fund receives a cash transfer to or from the Water Sewer Replacement Fund as needed. The 2018 transfer from Water Sewer Replacement fund was $1,951,595. 13 11 | P a g e The following graph shows the projection for the estimated cash balances with comparisons to the previous study (see Appendix C-1 for comparative tables). Both the red and green lines are identified with a (1) as they are a direct comparative of the original and updated projection without the target reserve adjustment to reflect any variance due to revenue and expenditure adjustments. The blue line, identified by a (2), reflects the updated projection with adjusted transfers to/from the Water Sewer Replacement Fund to maintain target reserve balances and offset any variances from revenue and expenditures. The black line reflects actuals for 2014-2018. $0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.5$4.0$4.5 MillionsWater Fund Cash Balances Actuals Cash Projections January 2019 * (1) Cash Projections with Prior Year Transfers September 2019* (1) Cash Projections with Adjusted Transfers September 2019 ** (2) * Net Transfer to Water Sewer Replacement of $9,465,000 ** Net Transfers to Water Sewer Replacement of $2,815,000 *** This study was adjusted to align with the 10 year CIP, therefore two years were added to this graph. Cash variances are due to fluctuations in net revenues and expenses. The majority of the variance is due to changes in capital needs as identified in the summary below, including unexpected water main rehabilitation at Xenium Lane and cost adjustment to street projects as a result of the State of the Streets. 2019 CIP projects decreased $172,883 2020 CIP projects increased $2,550,000 2021 CIP projects increased $1,377,333 2022 CIP projects increased $650,000 2023 CIP projects increased $697,000 2024 CIP projects increased $646,481 2025 CIP projects increased $1,016,306 2026 CIP projects increased $1,543,406 2027 CIP projects increased $1,746,576 These changes resulted due to the following: o Newly identified projects Xenium Lane Water Main Rehabilitation for $2,000,000 in 2020 Ridgemount Avenue Rehabilitation for $500,000 in 2021 County Road 9 at TH 169 Bridge Replacement for $300,000 in 2024 Water Storage Facility Improvement for $200,000 ($125,000 in 2026 and $75,000 in 2027) 14 12 | P a g e o Cost adjustments Brockton Lane Reconstruction construction costs were decreased in 2019 by $208,972 Annual Well Refurbishing costs were increased by $25,000 in 2026 and 2027. Annual Treatment Plant Refurbishing costs were increased by $50,000 each year from 2024 to 2027. 2000 Wheel Loader with Plow costs were reduced to $0. This equipment is funded by Central Equipment. Annual Street Reconstruction construction costs increased by $8,846,000 ($700,000 in 2020, $999,000 in 2021, $1,000,000 in 2022, $947,000 in 2023, $1,100,000 in 2024 and 2025, $1,400,000 in 2026, and $1,600,000 in 2027). Annual Mill and Overlay construction costs decreased by $1,843,911 (increased $56,089 in 2019 and $100,000 in 2020, and decreased $100,000 in 2021, $400,000 in 2022, and $300,000 in 2023 through 2027). Annual Full Depth Reclamation (FDR) construction costs increased by $605,000 (decreased $20,000 in 2019 and increased $150,000 in 2020, $25,000 in 2021, $50,000 in 2022 through 2024 and $100,000 in 2025 through 2027). o Timing variances The Juneau Lane from Hampton Hills to 59th Avenue project is moved to 2028 with a cost of $310,000. 15 13 | P a g e Sanitary Sewer Utility The City of Plymouth participates in the Metropolitan Council Environmental Services (MCES) sanitary sewer system. The City is responsible for the sewer collection system within the city limits and then pays MCES disposal fees for treatment. Currently, these fees comprise approximately 63% of the sewer utility’s operating expenses, depreciation accounts for 13%, and operational costs controlled by the City are the remaining 24%. Current Sewer Rate Structure The primary source of funding for the Sewer Fund is consumption fees. Sewer consumption fees are set at a single-rate structure, which includes a base fee plus a consumption fee for commercial and residential. The base fee helps cover the costs of expenses incurred regardless of consumption, such as the utility billing process and staff, while the consumption fees are primarily to cover the costs of maintenance and improvements to the existing system. Senior Discount Historically, a discounted consumption fee of 10% has been offered to residents who are 62 years of age or older, homesteaded in the property, and the utility account is in the individuals’ name. This program changed in 2014 and does not allow any new enrollment in order to phase out the discount. The primary reason for this change is that the program does not provide a benefit to all Plymouth residents; it targets a small population of the City, does not incent conservation, and adds to administrative costs for the City. As of 12/31/18, 2,098 accounts take advantage of the discount; a reduction of approximately 148 due to residents moving out of their qualifying home in 2018. The total discount received by all customers in 2018 was approximately $39,479. This is a decrease of approximately $2,865 from the prior year. Sewer Rates Based on the projections in Appendix C-2, increases are needed in the Sewer Fund. With conservation already encouraged with a tiered residential water rate structure, it is not necessary to convert sewer rates to a tiered system. The proposed rates are illustrated in the chart below. Current 5.50% 5.50% 5.50% 5.50% 5.50% 2019 2020 2021 2022 2023 2024 $4.01 $4.23 $4.46 $4.71 $4.97 $5.24 $6.82 $7.20 $7.60 $8.02 $8.46 $8.93 2020 2021 2022 2023 2024 $0.22 $0.23 $0.25 $0.26 $0.27 $0.38 $0.40 $0.42 $0.44 $0.47base charge per 1,000 gallons Proposed Rates (All users) base charge per 1,000 gallons Change in Rates (All users) per month per month 16 14 | P a g e The impact of the increases is summarized by various consumption levels in the following chart. Consumption Gallons per Current 5.50%5.50%5.50%5.50%5.50% Month 2019 2020 2021 2022 2023 2024 Light 1,700 $13.64 $14.39 $15.18 $16.03 $16.91 $17.84 Average 4,250 23.86 25.18 26.56 28.04 29.58 31.20 Above Avg 8,500 40.91 43.16 45.51 48.06 50.71 53.47 Note: Projections are based on proposed increases to base charges and consumption rates. Consumption Gallons per Month 2020 2021 2022 2023 2024 Light 1,700 $0.75 $0.79 $0.85 $0.88 $0.93 Average 4,250 1.32 1.38 1.48 1.55 1.62 Above Avg 8,500 2.25 2.36 2.54 2.65 2.77 Level Change in Charges by Consumption Level (All users) per customer, per month Level Proposed Charges by Consumption Level (All users) per customer, per month Summary The Sewer Fund had an estimated cash balance of $2,728,780 as of 12/31/18. The actual cash balance is $3,241,134. One of the goals of completing a utility study is to ensure appropriate cash balances are available. Rate increases remain consistent with the previous study for 2019-2023. To maintain cash balances in the Sewer Fund at the target reserve (see page 21), the Sewer Fund receives a cash transfer to or from the Water Sewer Replacement Fund as needed. The 2018 transfer from Water Sewer Replacement fund was $1,157,036. 17 15 | P a g e The following graph shows the projection for the estimated cash balances with comparisons to the previous study (see Appendix C-2 for comparative tables). Both the red and green lines are identified with a (1) as they are a direct comparative of the original and updated projection without the target reserve adjustment to reflect any variance due to revenue and expenditure adjustments. The blue line, identified by a (2), reflects the updated projection with adjusted transfers to/from the Water Sewer Replacement Fund to maintain target reserve balances and offset any variances from revenue and expenditures. The black line reflects actuals for 2014-2018. $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 MillionsSewer Fund Cash Balances Actuals Cash Projections January 2019* (1) Cash Projections with Prior Year Transfers September 2019* (1) Cash Projections with Adjusted Transfers September 2019** (2) * Net Transfer from Water Sewer Replacement of $2,609,000 ** Net Transfers to Water Sewer Replacement of $6,053,000 *** This study was adjusted to align with the 10 year CIP, therefore two years were added to this graph. Cash variances are due to fluctuations in net revenues and expenses. The majority of the variance is due to reducing the MetCouncil annual rate increase from 5.5% to 5.0% based on the 2020 rate information and historical trends. Additional variances are due to adjustments to the three-year average consumption as a result of development activity. The remaining variance is due to changes in capital needs as summarized below. 2019 CIP projects increased $7,893 2020 CIP projects increased $100,000 2021 CIP projects decreased $46,667 2022 CIP projects decreased $110,000 2023 CIP projects decreased $85,000 2024 CIP projects decreased $679,835 2025 CIP projects increased $101,134 2026 CIP projects increased $125,680 2027 CIP projects increased $151,167 These changes resulted due to the following: o Newly identified projects Future Lift Station Improvements for $900,000 ($150,000 for 2024 and $250,000 for 2025 through 2027) County Road 9 at TH 169 Bridge Replacement for $100,000 in 2024 o Change in scope Line Sanitary Sewer Main constructions costs were increased $100,000 each year from 2025 through 2027. 18 16 | P a g e 2000 Wheel Loader with Plow costs were reduced to $0. This is equipment is not funded by Central Equipment. Annual Street Reconstruction construction costs were increased $105,000 (increased $90,000 in 2020, $40,000 in 2021 and 2022, and $35,000 in 2023 and reduced $40,000 in 2024 and 2025 and $20,000 in 2026). Annual Mill and Overlay construction costs decreased $1,272,107 (increased $17,893 in 2019 and decreased $10,000 in 2020, $70,000 in 2021, $180,000 in 2022, $50,000 in 2023, and $220,000 in 2024 through 2027). Annual Full Depth Reclamation (FDR) construction costs increased $260,000 (decreased $10,000 in 2019 and increased $30,000 in 2021 through 2024, and $40,000 in 2025 through 2027). o Timing variances The Juneau Lane from Hampton Hills to 59th Avenue project was shifted from 2020 to 2028. 19 17 | P a g e Water Sewer Replacement Fund The Water Sewer Replacement Fund is used to replace and repair existing infrastructure and equipment of the Water and Sewer funds. As cash balances fluctuate in the Water and Sewer funds, cash is transferred to or from the Water Sewer Replacement Fund to meet target reserves. The estimated cash balance as of 12/31/2018 was $1.2 million. The actual cash balance is $1.8 million, a decrease of $3.0 million over 2017. The decrease was due to net reserve transfers required in 2018 of approximately $3.5 million to maintain target reserves as a result of large capital projects such as the water tower refurbishing projects. The water tower refurbishing projects were initially projected to be paid over five years, but due to changes in legislation the projects are required to be paid in the year of construction. The remaining amount is interest and market value adjustments. It is anticipated that the Water Sewer Replacement Fund reserves will be sufficient to cash flow projects without the need to issue debt. However, due to the significant amount of capital needs scheduled in the next ten years, a considerable amount of the cash reserves will be used. Reserves are projected to fluctuate between $1.0 million and $3.5 million during that time. Cash balances will be monitored and timing of these projects will be adjusted to ensure sufficient cash balances are available. The cash flow of the Water Sewer Replacement Fund is combined with that of the Water and Sewer funds (Appendix C-3). 20 18 | P a g e Water Resources This fund is used to account for resources used to administer the City’s surface water plan, erosion control, wetland regulations, and environmental programs including planning, projects, and maintenance. Current Water Resources Rate Structure The primary source of funding for the Water Resources Fund is surface water fees. The fee helps cover the costs incurred for the utility billing process, staff, and maintenance and improvements to the existing system. Water Resources Rates In 2019, surface water fees are set at a single-rate structure of $6.86 per month for residential, $22.75 per acre per month for multi-family residential, and $49.17 per acre per month for commercial. Based on the projections in Appendix C-4, increases are needed to maintain adequate reserves in the water resources utility. The proposed rates are illustrated in the chart below. Current 7.0% 7.0% 7.0% 7.0% 7.0% 2019 2020 2021 2022 2023 2024 $6.86 $7.34 $7.85 $8.40 $8.99 $9.62 22.75 24.34 26.04 27.86 29.81 31.90 49.17 52.61 56.29 60.23 64.45 68.96 2020 2021 2022 2023 2024 $0.48 $0.51 $0.55 $0.59 $0.63 1.59 1.70 1.82 1.95 2.09 3.44 3.68 3.94 4.22 4.51Commercial Multi-Family Residential Commercial Change in Rates (All users) Residential Multi-Family Residential per acre, per month Proposed Rates (All users) per month Residential Summary The Water Resources Fund had an estimated cash balance of $3,589,896 as of 12/31/18. The actual cash balance is $2,607,042, a decrease of approximately $869,000 over 12/31/17. There are nine projects that may be funded by grants, however, reimbursement is uncertain at this time. If the grant funding is not available and if cash reserves are not sufficient, the projects will be delayed until one or the other becomes available. These projects are Mount Olivet Stream Restoration, Plymouth Creek Stream Restoration, 19th Avenue and Dunkirk Lane Pond Improvement, Parkers Lake Park Drainage Improvement, Maple Creek Stream Restoration, Bass and Pomerleau Alum Treatment Phase 2, Palmer Creek Estates Stream Restoration, Ponderosa Stream Restoration, and BCWMC Water Quality, Channel and Basin Improvements. These projects are included in the study with the assumption that external funding is available. Rate increases remain consistent with the previous study. 21 19 | P a g e The following graph shows the projection for the estimated cash balances with comparisons to the previous study (see Appendix C-4 for comparative tables). The red line reflects previous cash projections with construction projects that have grant funding (GF). The green line reflects previous cash projections without construction projects that have grant funding. The blue line reflects current cash projections which include the City’s costs of the six projects with partial grant funding. Actuals are shown for 2014-2018. $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 MillionsWater Resources Fund Cash Balances Actuals Cash Projections January 2019 Cash Projections September 2019 * This study was adjusted to align with the 10 year CIP, therefore two years were added to this graph. Cash variances are due to fluctuations in net revenues and expenses. The majority of the variance is due to changes in capital needs as identified in the summary below. 2019 CIP projects decreased $192,777 2020 CIP projects increased $30,000 2021 CIP projects increased $229,000 2022 CIP projects increased $988,000 2023 CIP projects decreased $129,000 2024 CIP projects decreased $1,098,407 2025 CIP projects increased $1,310,102 2026 CIP projects increased $1,319,412 2027 CIP projects increased $1,719,123 These changes resulted due to the following: o Newly identified projects Bass and Pomerleau Alum Treatment Phase 2 for $37,000 in 2020 BCWMC Water Quality, Channel and Basin Improvements for $225,000 ($75,000 each year for 2025, 2027 and 2029) Future Water Quality Improvements for $5,750,000 ($1,000,000 in 2025 and 2026 and $1,250,000 in 2027 through 2029) New ½ ton Pickup for $30,000 in 2020 County Road 9 at TH 169 Bridge Replacement for $100,000 in 2024 Ridgemount Avenue Rehabilitation for $20,000 in 2021 Annual Mill and Overlay for $226,000 ($58,000 in 2020, $44,000 in 2021, $18,000 in 2022, $26,000 in 2023, and $20,000 in 2024 through 2027) 22 20 | P a g e Annual Full Depth Reclamation (FDR) for $625,000 ($50,000 in 2020 and 2021, $75,000 in 2022 through 2024 and $100,000 in 2025 to 2029). o Timing variances Chelsea Woods Drainage from Weston Lane to County Road 6 project planning and design was moved to 2021 for $50,000. Construction was moved to 2022 for $400,000. Juneau Lane from Hampton Hills to 59th Avenue was moved to 2028 and increased to $100,000. Ivanhoe/Pleasant Hills Drainage Improvement costs of $50,000 were moved to 2020. Meadow Wood Drainage Improvement costs of $100,000 were moved to 2020. 4th and Zircon Drainage Improvement costs of $50,000 were moved to 2020. Playfield 10 Development Stormwater Quality Improvements replaces the Elm Creek Drainage Improvements at NWG Trailhead for $375,000. The project was also shifted to 2022 in 2020 o Cost adjustments Courts/Fields of Nantarre Drainage Improvement construction costs were increased in 2021 by $25,000. Kingsview Heights Drainage Improvement construction costs were increased in 2022 by $50,000. Ponderosa Woods Stream Restoration construction costs were decreased in 2024 by $150,000. The construction is funded by the Watershed District. Maintain Water Quality Ponds was increased by $50,000 in 2026 and 2027. Drainage Improvements were reduced by $50,000 in 2024 through 2027. Brockton Lane Reconstruction construction costs were increased by $7,223 in 2019. Annual Street Reconstruction was increased $520,000 ($40,000 in 2020 and 2021, $65,000 in 2022 and 2023, $55,000 in 2024, and $80,000 in 2025 through 2027). 23 21 | P a g e Solid Waste Management The Solid Waste Management Fund provides collection services for various recyclable materials. Solid waste expenditures are primarily costs for curbside collection. Current Solid Waste Rate Structure The primary source of funding for the Solid Waste Management Fund is recycling fees. Solid Waste Management recycling fees are set at a single-rate structure. The fee helps cover the costs incurred for the utility billing process, staff, and service contract expense. Solid Waste Rates Based on the projections in Appendix C-5, increases are needed to maintain adequate reserves in the Solid Waste Management Fund. The proposed rates are illustrated in the chart below. Current $0.35 $0.35 $0.40 $0.40 $0.40 2019 2020 2021 2022 2023 2024 City Fee $2.75 $3.10 $3.45 $3.85 $4.25 $4.65 Republic Services Contract $2.91 $2.98 $3.05 $3.13 $3.21 $3.29 2020 2021 2022 2023 2024 City Fee $0.35 $0.35 $0.40 $0.40 $0.40 Proposed Rates (All users) Change in Rates (All users) per month Summary The Solid Waste Management Fund had an estimated cash balance of $1,219,142 as of 12/31/18. The actual cash balance is $1,242,378, a decrease of $145,854 over 12/31/17. However, this is an increase of $23,236 over the previous projection for 2018. The Solid Waste Management program has been subsidized by fund balance throughout the years resulting in depleting cash reserves. Cash balances are anticipated to decrease until 2023 as a result of operations and to maintain cash balances at target reserves. 24 22 | P a g e The following graph shows the trend for the estimated cash balances with comparisons to the previous study (see Appendix C-5). Actuals are shown for 2014-2018. $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 MillionsSolid Waste Management Fund Cash Balances Actuals Cash Projections January 2019 Cash Projections September 2019 * This study was adjusted to align with the 10 year CIP, therefore two years were added to this graph. Cash variances are due to the fluctuation in net revenues and expenses. The variances in the projected balances are due to: An increase of approximately $60,000 in contractual services in 2019 due to the market for grinding and hauling Yard Waste site materials. An addition half day was added for drop off day. This resulted in a net increase in costs of $5,000. 25 23 | P a g e Target Cash Reserves One of the goals of completing a utility study is to identify appropriate cash balances. A reserve is used to accommodate fluctuations in revenue and expense due to weather and unforeseen events and to provide funding in the CIP for replacement needs, and for unexpected repairs. A reserve helps minimize the reliance on debt and allows for a more stable rate structure over time. The City’s target reserve is to have an amount equal to three months of operating expenses (without depreciation), 100% of the following year's debt service, and 50% of the following year's capital costs. The following graphs show the trend for the estimated cash balances compared to suggested target reserves for each of the utility funds reviewed in this study. - 2 4 6 8 10 12 14 16 18 20 MillionsWater/Sewer/Water Sewer Replacement Funds Reserves Reserves Estimated Cash Balance Estimated cash balances are greater than target reserves. Capital repair and replacement policies will be reviewed and rates will be analyzed when this process is complete. - 2 4 6 8 10 12 14 MillionsWater Resources Fund Reserves Reserves Estimated Cash Balance 26 24 | P a g e - 0.5 1.0 1.5 2.0 2.5 MillionsSolid Waste Management Fund Reserves Reserves Estimated Cash Balance 27 25 | P a g e Conclusion The City of Plymouth has managed its utility funds well, and as a result, has been able to fund almost all improvements with cash. The rate study demonstrates that future increases are necessary to support capital needs, maintain positive cash balances, and ensure long-term stability. The results of this analysis conclude that the recommended rate increases should reduce the need to issue debt. Staff is cautious to increase rates beyond what is recommended as reserves begin to build after five years to support future capital needs. In addition, as the City nears full development, additional reserves may become available from the Utility Trunk Fund. As the City continues to grow and mature, it becomes more critical to assess infrastructure conditions and capital needs of the water and sewer systems. Staff will evaluate the systems and assess the long-term capital needs that could potentially have a significant impact to utility projections and reserves. The utility fund balances will be reviewed annually to determine whether the available cash is sufficient to cover upcoming capital and operational expenses, to identify potential shortages early and reevaluate the option to issue new debt. We acknowledge that future trends may vary from assumptions made in this study and therefore recommend regular updates and adjustments as necessary. Appendix A Comparisons to Other Cities’ Rates Appendix B Historical Consumption Trends Appendix C Water, Sewer, Water Resources, and Solid Waste Management Utility Projections Appendix D Target Reserve Projections Appendix E Capital Improvement Plans for Water, Sewer, and Water Resources 28 Appendix A Appendix A Comparisons to Other Cities’ Rates The graphs below compare monthly water sewer charges for a residential customer based on 2019 rates and 6,000 gallons per month. Base Consumption Base Consumption Surface Water Recycling Total Minnetonka 0.53 18.42 22.80 14.58 7.08 4.40 67.81 Plymouth 4.35 9.42 6.82 24.06 6.86 2.85 54.36 Bloomington1 7.38 14.76 9.64 19.28 7.66 5.79 64.51 Eden Prairie1 6.00 13.50 10.60 16.10 5.03 0.00 51.23 Brooklyn Park 2.02 12.60 2.18 21.30 4.79 3.35 46.24 Maple Grove 4.49 4.47 7.53 14.70 0.00 3.00 34.20 1 Minimum usage for water and sewer of 4,000 gallons/quarter. 0.00 5.00 10.00 15.00 20.00 25.00 Bloomington Eden Prairie Minnetonka Brooklyn Park PLYMOUTH Maple Grove Water Rate Comparison Base Consumption 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 Minnetonka PLYMOUTH Bloomington Eden Prairie Brooklyn Park Maple Grove Sewer Rate Comparison Base Consumption (continued…) 29 Appendix A (continued from previous page) 0.00 2.00 4.00 6.00 8.00 Bloomington Minnetonka PLYMOUTH Eden Prairie Brooklyn Park Water Resources Rate Comparison 0.00 1.00 2.00 3.00 4.00 5.00 6.00 Bloomington Minnetonka Brooklyn Park Maple Grove PLYMOUTH Recycling Rate Comparison 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 Minnetonka Bloomington PLYMOUTH Eden Prairie Brooklyn Park Maple Grove 67.81 64.51 54.36 51.23 46.24 34.20 Total Bill Comparison 30 Appendix B Appendix B Historical Consumption Trends 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 19961997199819992000200120022003200420052006200720082009201020112012201320142015201620172018Annual Per Capita Water Demand (mg) Average Demand (MGD) Total Population Water demand is declining at an average rate of approximately 2% per year. 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 19961997199819992000200120022003200420052006200720082009201020112012201320142015201620172018Annual Per Capita Sewer Flows (mg) Sewer Flows Total Population 31 Appendix B 0 20 40 60 80 100 120 140 160 180 19961997199819992000200120022003200420052006200720082009201020112012201320142015201620172018Total Gallons/Capita/DayDaily Per Capita Water Demand and Sewer Flows Per Capita Demand Rainfall Data (inches) Annual Per Capita Sewer Flows Linear (Per Capita Demand) Linear (Rainfall Data (inches)) Linear (Annual Per Capita Sewer Flows) 32 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 Revenue rate assumption 2.50%3.50%3.50%3.50%3.50%3.50%3.50%3.50%3.50%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 2 Investment income yield 1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25% 3 Expense rate - personnel 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 4 Expense rate - all other 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 5 6 Operating Revenues 7 Water Utility Consumption Charges1 3,982,462 4,219,888 4,407,473 4,934,873 5,060,668 5,361,919 5,455,286 5,649,904 5,848,514 6,021,903 6,196,633 6,391,251 6,585,868 6,784,478 6,987,812 7,191,147 8 Water Utility Base Charges1 1,090,792 1,019,168 1,067,675 1,120,201 1,177,924 1,199,326 1,267,002 1,312,051 1,357,100 1,396,518 1,438,751 1,480,985 1,526,034 1,571,082 1,618,947 1,666,812 9 Demand Charges 484,921 503,737 528,339 545,275 564,666 572,598 593,129 613,884 635,363 654,424 674,040 694,271 715,110 736,576 758,682 781,436 10 Penalties2 45,964 49,638 92,725 107,485 71,965 52,000 77,000 77,000 77,000 77,000 77,000 77,000 77,000 77,000 77,000 77,000 11 Fire Hydrant Inspection 55,160 111,650 56,175 28,158 85,488 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 12 Permits 15,944 21,573 16,660 23,519 20,082 - - - - - - - - - - - 13 Antennae Charges 128,719 135,256 135,376 137,965 142,365 154,666 142,298 146,775 151,912 156,469 161,164 165,998 170,978 176,108 181,391 186,833 14 Water Meter Sales 145,596 157,566 143,785 170,054 150,381 137,703 140,000 140,000 144,900 149,247 153,724 158,336 163,086 167,979 173,018 178,209 15 Other 16,138 18,570 15,529 14,100 29,515 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 16 Additional Consumption Charges- new growth6 - - - - - 26,631 55,020 79,812 100,329 121,511 137,530 154,806 172,878 191,800 211,684 232,392 17 Additional Base Charges - new growth6 - - - - - 13,050 27,000 39,144 49,164 59,520 67,452 75,744 84,552 93,744 103,500 113,664 18 19 Total Operating Revenues 5,965,696 6,237,046 6,463,737 7,081,630 7,303,054 7,559,393 7,798,235 8,100,069 8,405,782 8,678,092 8,947,794 9,239,891 9,537,007 9,840,268 10,153,534 10,468,991 20 21 Operating Expenses 22 Personal Services4 1,582,486 1,486,064 1,231,423 1,157,509 1,289,112 1,461,774 1,535,749 1,592,640 1,640,419 1,689,632 1,740,321 1,792,530 1,846,306 1,901,695 1,958,746 2,017,509 23 Materials & Supplies 811,504 1,100,383 789,965 554,303 669,617 698,500 684,000 704,000 725,120 746,874 769,280 792,358 816,129 840,613 865,831 891,806 24 Employee Development & Meetings 5,839 5,223 6,106 7,874 13,031 10,000 10,000 10,000 10,300 10,609 10,927 11,255 11,593 11,941 12,299 12,668 25 Dues & Subscriptions 2,741 3,632 3,717 3,553 5,223 5,000 5,000 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 26 Contractual Services7 1,922,814 2,574,076 2,693,992 1,841,708 1,958,637 2,118,000 2,096,400 2,096,500 2,159,395 2,224,177 2,290,902 2,359,629 2,430,418 2,503,331 2,578,431 2,655,783 27 Equipment 11,828 15,155 12,697 5,601 12,574 12,000 13,000 13,000 13,390 13,792 14,205 14,632 15,071 15,523 15,988 16,468 28 Other Expenses 850 2,464 6,219 10,318 19,062 7,500 15,800 15,800 16,274 16,762 17,265 17,783 18,317 18,866 19,432 20,015 29 Depreciation 3,096,050 3,147,027 2,539,210 2,512,590 2,534,863 2,714,473 2,684,905 2,696,921 2,661,963 2,689,993 2,730,114 2,694,439 2,564,671 2,417,582 2,453,996 2,540,899 30 Allocations4 425,159 435,354 746,540 711,722 743,959 768,327 745,676 767,439 790,462 814,176 838,601 863,759 889,672 916,362 943,853 972,169 31 32 Total Operating Expenses 7,859,271 8,769,378 8,029,869 6,805,178 7,246,078 7,795,574 7,790,530 7,901,300 8,022,473 8,211,319 8,417,079 8,552,013 8,597,973 8,631,883 8,854,726 9,133,651 33 34 Net Operations (1,893,575) (2,532,332) (1,566,132) 276,452 56,976 (236,181) 7,705 198,769 383,309 466,774 530,715 687,878 939,034 1,208,385 1,298,809 1,335,340 35 36 Non operating revenues (expenses) 37 Interest on Investments 59,778 (1,473) 32,833 41,760 67,523 31,000 44,500 44,500 27,542 28,670 31,993 35,046 39,100 41,144 41,865 42,761 38 Interest on Special Assessments 3,842 3,645 3,742 4,403 1,913 1,320 3,400 3,400 3,400 3,400 3,400 3,400 3,400 3,400 3,400 3,400 39 Intergovernmental (427) - 10,000 - - - - - - - - - - - - - 40 Sale of Assets - - - (18,180) 3,080 - - - - - - - - - - - 41 Capital contributions3 1,609,910 543,219 3,001,434 3,323,134 1,678,486 600,000 850,000 850,000 850,000 850,000 850,000 850,000 850,000 850,000 850,000 850,000 42 Administrative fee 18,707 - - - - - - - - - - - - - - - 43 Debt Service - Interest (134,121) (87,440) (60,194) (31,319) (1,681) (2,513) - - - - - - - - - - 44 Transfers In (Out) 45 Water Sewer Construction 34,930 28,615 5,577,074 193,534 125,037 - - - - - - - - - - - 46 Water Sewer Replacement - 4,625,718 (1,678,168) (549,463) 1,951,595 - - - - - - - - - - - 47 Central Equipment (3,000) (69,519) (124,222) - (131,018) - - - - - - - - - - - 48 General5 (82,567) (82,567) - - - - - - - - - - - - - - 1 Historically, base charges have been included as consumption revenue. These charges will be recorded separately in the future to allow for better analysis. The additional revenue expected as a result of the water meter replacement is now factored in the consumption charges as we have one year of data. 2 Penalties estimated to remain stable. 3 Capital contributions have no impact on cash flow, therefore are estimated based on average history. 4 Allocations increase in 2016 due to a change in methodology. Administrative support personal services costs are now recorded as an allocation instead of direct costs to the department. 5 Beginning in 2016, General Fund transfer is incorporated in allocations. 6 Revenue from new growth displayed in lines 17 and 18 will be shifted to Water Utility revenues as current customer counts are used in subsequent years. 7 Contractual services expense decreases beginning in 2018 due to adding costs for water main repair to the mill and overlay project costs in the CIP.Appendix C-1 Actual Projections Water Fund Performance/Projection City of Plymouth 33 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Appendix C-1 Actual Projections Water Fund Performance/Projection City of Plymouth 49 Improvement Project Construction (708,103) (229,751) (530,630) (527,419) (851,235) - - - - - - - - - - - 50 Information Technology (10,400) (10,000) - - - - - - - - - - - - - - 51 52 Total non operating revenue (expenses)788,549 4,720,447 6,231,869 2,436,450 2,843,700 629,807 897,900 897,900 880,942 882,070 885,393 888,446 892,500 894,544 895,265 896,161 53 54 Net increase (decrease) in resources (1,105,026) 2,188,115 4,665,737 2,712,902 2,900,676 393,626 905,605 1,096,669 1,264,251 1,348,843 1,416,107 1,576,323 1,831,534 2,102,929 2,194,074 2,231,502 55 56 CIP Funding 57 Current Year Capital (1,079,421) (970,823) (899,298) (680,445) (2,755,271) (3,054,117) (5,405,000) (2,500,000) (1,725,000) (1,825,000) (2,275,000) (2,677,396) (3,237,717) (3,474,774) (3,497,403) (3,544,270) 58 Bond Proceeds 59 Bond Principal - 2004B/2012A Issue (950,000) (920,000) (935,000) (965,000) (990,000) (1,005,000) - - - - - - - 60 Total Capital & Related Debt (2,029,421) (1,890,823) (1,834,298) (1,645,445) (3,745,271) (4,059,117) (5,405,000) (2,500,000) (1,725,000) (1,825,000) (2,275,000) (2,677,396) (3,237,717) (3,474,774) (3,497,403) (3,544,270) 61 62 Cash 63 Beginning Cash Ending Cash 91,036 3,117,354 2,691,728 3,140,112 3,891,288 3,979,270 2,551,780 2,203,370 2,293,584 2,559,420 2,803,641 3,128,007 3,291,495 3,349,232 3,420,899 64 Add net increase (decrease) in resources (56)393,626 905,605 1,096,669 1,264,251 1,348,843 1,416,107 1,576,323 1,831,534 2,102,929 2,194,074 2,231,502 65 Add back depreciation (28)2,714,473 2,684,905 2,696,921 2,661,963 2,689,993 2,730,114 2,694,439 2,564,671 2,417,582 2,453,996 2,540,899 66 Less capital contributions (42)(600,000) (850,000) (850,000) (850,000) (850,000) (850,000) (850,000) (850,000) (850,000) (850,000) (850,000) 67 Less capital and related debt principal(64)(4,059,117) (5,405,000) (2,500,000) (1,725,000) (1,825,000) (2,275,000) (2,677,396) (3,237,717) (3,474,774) (3,497,403) (3,544,270) 68 Ending Cash 91,036 3,117,354 2,691,728 3,140,112 3,891,288 2,340,270 1,314,780 2,995,370 3,554,584 3,657,420 3,580,641 3,547,007 3,436,495 3,487,232 3,649,899 3,799,030 69 Transfer to/from Replacement Fund 1,639,000 1,237,000 (792,000) (1,261,000) (1,098,000) (777,000) (419,000) (145,000) (138,000) (229,000) (378,000) 70 Ending Cash 91,036 3,117,354 2,691,728 3,140,112 3,891,288 3,979,270 2,551,780 2,203,370 2,293,584 2,559,420 2,803,641 3,128,007 3,291,495 3,349,232 3,420,899 3,421,030 71 72 73 Comparison of net increase (decrease) in resources 74 Current Projection 393,626 905,605 1,096,669 1,264,251 1,348,843 1,416,107 1,576,323 1,831,534 2,102,929 2,194,074 2,231,502 75 Previous Projection 395,300 (120,698) 47,019 265,318 407,947 500,379 524,370 534,685 640,280 - - 76 77 Projection Variance (1,674) 1,026,303 1,049,650 998,933 940,896 915,728 1,051,953 1,296,849 1,462,649 2,194,074 2,231,502 78 79 Comparison of transfer (to) from Water Sewer Replacement fund 80 Current Projection 1,639,000 1,237,000 (792,000) (1,261,000) (1,098,000) (777,000) (419,000) (145,000) (138,000) (229,000) (378,000) 81 Previous Projection 342,000 (191,000) (407,000) (872,000) (1,635,000) (739,000) (1,154,000) (1,235,000) (1,152,000) - - 82 83 Projection Variance 1,297,000 1,428,000 (385,000) (389,000) 537,000 (38,000) 735,000 1,090,000 1,014,000 (229,000) (378,000) Appendix C-1 (continued)34 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 Revenue rate assumption 2.00%5.50%5.00%5.00%5.50%6.00%5.50%5.50%5.50%5.50%5.50%5.50%5.50%5.00%5.00%5.00% 2 Investment income yield 1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25% 3 Expense rate - personnel 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 4 Expense rate - Met Council8 6.20%2.83%3.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00% 5 Expense rate - all other 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 6 7 Operating Revenues 8 Sewer Utility Consumption Charges1 5,809,796 6,137,693 6,323,722 6,901,893 7,296,522 7,304,215 7,843,285 8,269,752 8,733,303 9,215,396 9,716,032 10,253,751 10,810,012 11,347,732 11,922,535 12,515,881 9 Sewer Utility Base Charges1 1,546,985 1,462,616 1,557,471 1,665,536 1,792,916 1,858,846 2,018,131 2,130,250 2,247,974 2,371,304 2,503,043 2,640,388 2,786,142 2,926,290 3,072,044 3,226,207 10 Penalties2 65,827 69,784 68,029 82,928 83,586 65,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 11 Permits 16,016 21,353 17,271 21,205 19,287 - - - - - - - - - - - 12 Other 11,615 25,782 46,723 30,415 19,282 26,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 13 Additional Consumption Charges- new growth7 - - - - - - 126,602 186,880 239,646 297,499 345,028 397,225 453,672 512,872 577,340 646,478 14 Additional Base Charges - new growth7 - - - - - - 43,200 63,840 81,804 101,520 117,876 135,648 155,064 175,392 197,280 220,992 15 16 Total Operating Revenues 7,450,239 7,717,228 8,013,216 8,701,977 9,211,593 9,254,061 10,125,218 10,744,722 11,396,727 12,079,720 12,775,978 13,521,012 14,298,890 15,056,286 15,863,200 16,703,557 17 18 Operating Expenses 19 Personal Services4 769,819 871,785 716,000 693,736 741,585 852,237 890,202 926,814 954,618 983,257 1,012,755 1,043,137 1,074,431 1,074,431 1,106,664 1,106,664 20 Materials & Supplies 84,298 129,525 115,841 156,275 52,662 130,000 110,500 110,500 113,815 117,229 120,746 124,369 128,100 128,100 131,943 131,943 21 Employee Development & Meetings 5,028 1,892 5,614 4,705 7,220 8,000 8,000 8,000 8,240 8,487 8,742 9,004 9,274 9,274 9,552 9,552 22 Contractual Services6 5,497,604 6,107,141 5,971,633 6,085,427 6,248,042 6,912,230 6,848,330 7,044,600 7,390,138 7,752,752 8,133,290 8,532,642 8,951,742 9,391,572 9,853,160 10,337,587 23 Equipment 5,909 5,257 4,657 1,498 3,089 5,000 5,000 5,000 5,150 5,305 5,464 5,628 5,796 5,796 5,970 5,970 24 Other Expenses 4,273 2,387 3,079 7,920 20,366 8,000 23,610 23,610 24,318 25,048 25,799 26,573 27,370 27,370 28,192 28,192 25 Depreciation 1,099,093 1,168,785 1,221,889 1,256,013 1,304,490 1,364,185 1,380,745 1,400,515 1,421,848 1,453,230 1,477,230 1,511,397 1,543,743 1,562,820 1,483,237 1,517,148 26 Allocations4 276,714 283,326 699,565 701,923 737,579 759,066 759,636 781,894 805,351 829,511 854,397 880,029 906,429 906,429 933,622 933,622 27 28 Total Operating Expenses 7,742,738 8,570,098 8,738,278 8,907,497 9,115,033 10,038,718 10,026,023 10,300,933 10,723,479 11,174,819 11,638,423 12,132,779 12,646,887 13,105,793 13,552,340 14,070,679 29 30 Net Operations (292,499) (852,870) (725,062) (205,520) 96,560 (784,657) 99,195 443,789 673,248 904,901 1,137,556 1,388,233 1,652,003 1,950,493 2,310,859 2,632,878 31 32 Non operating revenues (expenses) 33 Interest on Investments 53,301 4,960 34,849 46,103 75,078 30,700 55,050 55,050 37,068 42,631 40,763 47,341 49,269 49,269 50,650 52,732 34 Intergovernmental 24,789 21,536 15,315 35,593 25,520 28,644 29,000 29,000 29,870 30,766 31,689 32,640 33,619 33,619 34,628 34,628 35 Capital contributions3 1,277,209 403,867 1,853,614 3,021,709 1,905,059 - 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 36 Administrative fee 50,207 - - - - - - - - - - - - - - - 37 Transfers In (Out) 38 Water Sewer Construction - (1,068) - 68,916 (546) - - - - - - - - - - - 39 Water Sewer Replacement - 1,969,184 2,718,768 415,444 1,157,036 - - - - - - - - - - - 40 Water Resources Construction - - - - 18,460 - - - - - - - - - - - 41 General5 (58,643) (58,643) - - - - - - - - - - - - - - 42 Improvement Project Construction (216,344) (132,529) (141,365) (305,357) (328,910) - - - - - - - - - - - 1 Historically, base charges have been included as consumption revenue. These charges will be recorded separately in the future to allow for better analysis. The additional revenue expected as a result of the water meter replacement is now factored in the consumption charges as we have one year of data. 2 Penalties estimated to remain stable. 3 Capital contributions have no impact on cash flow, therefore are estimated based on average history. 4 Allocations increase in 2016 due to a change in methodology. Administrative support personal services costs are now recorded as an allocation instead of direct costs to the department. 5 Beginning in 2016, General Fund transfer is incorporated in allocations. 6 Beginning in 2015, all expenses related to preventative sewer main repairs will be expensed directly to the Sewer fund instead of a transfer out to the Capital Project fund. The waste water fee is estimated based on notification of a percentage increase. The actual gallons charged at that rate is unknown at the time of departmental budget entry, thus the increase is calculated on the prior year total charge. 7 Revenue from new growth displayed in lines 13 and 14 will be shifted to Sewer Utility revenues as current customer counts are used in subsequent years. 8 MetCouncil rate increase in 2019 was higher than normal. 2020 rate increase was confirmed with MetCouncil.Appendix C-2City of Plymouth Sewer Fund Performance/Projection Actual Projections 35 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Appendix C-2City of Plymouth Sewer Fund Performance/Projection Actual Projections 43 Central Equipment (1,500) (62,092) 44 Information Technology (10,000) 45 46 Total non operating revenue (expenses)1,129,019 2,197,307 4,481,181 3,282,408 2,789,605 59,344 1,384,050 1,384,050 1,366,938 1,373,397 1,372,452 1,379,980 1,382,888 1,382,888 1,385,277 1,387,359 47 48 Net increase (decrease) in resources 836,520 1,344,437 3,756,119 3,076,888 2,886,165 (725,313) 1,483,245 1,827,839 2,040,187 2,278,298 2,510,008 2,768,214 3,034,891 3,333,381 3,696,137 4,020,237 49 50 Met Council Detail 51 MCES Portion of Operating Expenses 5,040,001 5,254,739 5,278,283 5,661,557 5,961,976 6,334,830 6,514,030 6,710,000 7,045,500 7,397,775 7,767,664 8,156,047 8,563,849 8,992,042 9,441,644 9,913,726 52 MCES % of Operating Expenses 65.09%61.31%60.40%63.56%65.41%63.10%64.97%65.14%65.70%66.20%66.74%67.22%67.72%68.61%69.67%70.46% 53 54 CIP Funding 55 Current Year Capital (1,266,589) (979,761) (1,480,663) (1,480,663) (1,835,861) (2,152,893) (1,750,000) (1,440,000) (1,280,000) (1,960,000) (1,440,000) (2,263,366) (2,331,156) (2,331,156) (2,400,753) (2,442,910) 56 Total Capital & Related Debt (1,266,589) (979,761) (1,480,663) (1,480,663) (1,835,861) (2,152,893) (1,750,000) (1,440,000) (1,280,000) (1,960,000) (1,440,000) (2,263,366) (2,331,156) (2,331,156) (2,400,753) (2,442,910) 57 58 Cash 59 Beginning Cash 1,899,468 1,578,784 2,853,505 2,959,241 3,201,984 3,241,134 3,037,113 2,946,103 2,965,457 3,410,491 3,261,019 3,787,257 3,941,502 3,941,502 4,051,980 4,218,546 60 Add net increase (decrease) in resources (45)(725,313) 1,483,245 1,827,839 2,040,187 2,278,298 2,510,008 2,768,214 3,034,891 3,333,381 3,696,137 4,020,237 61 Add back depreciation (23)1,364,185 1,380,745 1,400,515 1,421,848 1,453,230 1,477,230 1,511,397 1,543,743 1,562,820 1,483,237 1,517,148 62 Less capital contributions (33)- (1,300,000) (1,300,000) (1,300,000) (1,300,000) (1,300,000) (1,300,000) (1,300,000) (1,300,000) (1,300,000) (1,300,000) 63 Less capital and related debt principal (52)(2,152,893) (1,750,000) (1,440,000) (1,280,000) (1,960,000) (1,440,000) (2,263,366) (2,331,156) (2,331,156) (2,400,753) (2,442,910) 64 Ending Cash 1,578,784 2,853,505 2,959,241 3,201,984 3,241,134 1,727,113 2,851,103 3,434,457 3,847,491 3,882,019 4,508,257 4,503,502 4,888,980 5,206,546 5,530,600 6,013,022 65 Transfer to/from Replacement Fund 1,310,000 95,000 (469,000) (437,000) (621,000) (721,000) (562,000) (837,000) (988,000) (1,170,000) (1,653,000) 66 Ending Cash 1,578,784 2,853,505 2,959,241 3,201,984 3,241,134 3,037,113 2,946,103 2,965,457 3,410,491 3,261,019 3,787,257 3,941,502 4,051,980 4,218,546 4,360,600 4,360,022 67 68 69 Comparison of net increase (decrease) in resources 70 Current Projection 2,886,165 (725,313) 1,483,245 1,827,839 2,040,187 2,278,298 2,510,008 2,768,214 3,034,891 3,333,381 3,696,137 4,020,237 71 Previous Projection (448,936) (705,733) (252,037) (22,227) 183,184 404,785 577,042 754,865 971,082 1,159,763 - - 72 73 Projection Variance 3,335,101 (19,580) 1,735,282 1,850,066 1,857,003 1,873,513 1,932,966 2,013,349 2,063,809 2,173,618 3,696,137 4,020,237 74 75 Comparison of transfer (to) from Water Sewer Replacement fund 76 Current Projection 1,157,036 1,310,000 95,000 (469,000) (437,000) (621,000) (721,000) (562,000) (837,000) (988,000) (1,170,000) (1,653,000) 77 Previous Projection 1,630,000 1,049,000 320,000 759,000 250,000 368,000 227,000 28,000 (51,000) (341,000) - - 78 79 Projection Variance (472,964) 261,000 (225,000) (1,228,000) (687,000) (989,000) (948,000) (590,000) (786,000) (647,000) (1,170,000) (1,653,000) Appendix C-2 (continued)36 CASH 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 Ending Cash Balances 2 Water 3,979,270 2,551,780 2,203,370 2,293,584 2,559,420 2,803,641 3,128,007 3,291,495 3,349,232 3,420,899 3,421,030 3 Sewer 3,037,113 2,946,103 2,965,457 3,410,491 3,261,019 3,787,257 3,941,502 4,051,980 4,218,546 4,360,600 4,360,022 4 Water Sewer Replacement 1,916,683 584,683 1,845,683 3,543,683 5,262,683 6,760,683 7,741,683 8,723,683 9,849,683 9,849,683 9,849,683 5 6 Total Ending Cash1 13,007,778 16,932,570 10,379,035 11,207,779 8,964,874 8,933,066 6,082,566 7,014,510 9,247,758 11,083,122 13,351,581 14,811,192 16,067,158 17,417,462 17,631,182 17,630,735 7 8 Previous Projection 13,007,778 16,932,570 10,379,035 11,207,779 8,472,942 8,388,158 7,433,269 7,681,699 9,984,921 11,228,373 12,586,111 14,356,876 15,643,408 15,741,656 9 10 Projection Variance2 - - - - 491,932 544,908 (1,350,703) (667,189) (737,163) (145,251) 765,470 454,316 423,750 1,675,806 1 Cash decrease in 2016 due to water meter replacement project. Additional cash flucations due to capital projects. 2 Estimated cash balances are less than the previous projection beginning in 2020. This is due to the fluctuation in capital project as identified in the Water and Sewer sections. CASH 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 Ending Cash Balances 2 Utility Funds 13,007,778 16,932,570 10,379,035 11,207,779 8,964,874 8,933,066 6,082,566 7,014,510 9,247,758 11,083,122 13,351,581 14,811,192 16,067,158 17,417,462 17,631,182 17,630,735 3 Utility Trunk3 6,646,482 4,485,520 6,827,634 9,087,645 11,307,923 11,632,961 11,463,887 12,198,160 12,681,505 13,360,757 14,145,020 14,320,480 14,627,693 14,919,564 15,741,778 16,045,748 4 5 Total Ending Cash 19,654,260 21,418,090 17,206,669 20,295,424 20,272,797 20,566,027 17,546,453 19,212,670 21,929,263 24,443,879 27,496,601 29,131,672 30,694,851 32,337,026 33,372,960 33,676,483 6 7 Previous Projection 8 Utility Funds 13,007,778 16,932,570 10,379,035 11,207,779 8,472,942 8,388,158 7,433,269 7,681,699 9,984,921 11,228,373 12,586,111 14,356,876 15,643,408 15,741,656 9 Utility Trunk 6,646,482 4,485,520 6,827,634 9,087,645 10,844,116 10,503,357 9,923,813 10,274,483 10,886,725 11,197,223 11,997,071 12,845,427 13,372,027 13,835,098 10 11 Total Previous Projection 19,654,260 21,418,090 17,206,669 20,295,424 19,317,058 18,891,515 17,357,082 17,956,182 20,871,646 22,425,596 24,583,182 27,202,303 29,015,435 29,576,754 12 13 Projection Variance4 - - - - 955,739 1,674,512 189,371 1,256,488 1,057,617 2,018,283 2,913,419 1,929,369 1,679,416 2,760,272 3 Utility Trunk cash increase in 2015 is due to higher than anticipated collections of Area and REC charges. Remaining cash variances are due to shifting or changing special assessments for street projects. 4 Estimated cash balances are less than the previous projection beginning in 2019. This is due to the fluctuation in capital project as identified in the Water and Sewer sections.Appendix C-3Actual Actual City of Plymouth Utility Funds Combined Cash Water, Sewer and Water Sewer Replacement Funds Projections Water, Sewer, Water Sewer Replacement, and Utility Trunk Funds Projections - 5 10 15 20 25 30 35 40 MillionsUtility Fund Cash Balances (including Utility Trunk) Cash Projections September 2019 Cash Projections January 2019 37 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 Revenue rate assumption 0.0%6.0%6.0%6.0%6.0%6.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0% 2 Investment income yield 1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25% 3 Expense rate - personnel 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 4 Expense rate - all other 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 5 6 Operating Revenues 7 Water Resources Utility Charges 2,595,848 2,761,797 2,980,383 3,188,179 3,448,042 3,482,977 3,775,359 4,038,521 4,321,142 4,624,055 4,947,738 5,293,259 5,663,760 6,060,072 6,483,031 6,936,367 8 Penalties1 19,199 22,650 24,892 31,059 28,409 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 9 Other 20,037 31,304 40,080 16,345 37,328 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 10 Additional Revenue - new growth6 - - - - - - 44,040 65,940 85,680 107,880 126,984 148,176 171,756 197,904 226,800 258,816 11 12 Total Operating Revenues 2,635,084 2,815,751 3,045,355 3,235,583 3,513,779 3,535,977 3,872,399 4,157,461 4,459,822 4,784,935 5,127,722 5,494,435 5,888,516 6,310,976 6,762,831 7,248,183 13 14 Operating Expenses 15 Personal Services2, 7 655,971 624,499 713,549 729,123 701,758 909,252 962,226 1,003,892 1,034,009 1,065,029 1,096,980 1,129,889 1,163,786 1,198,700 1,234,661 1,271,700 16 Materials & Supplies 127,060 118,808 172,057 64,079 133,518 191,250 166,250 168,750 173,813 179,027 184,398 189,930 195,628 201,496 207,541 213,767 17 Employee Development & Meetings 1,731 832 2,526 1,122 2,512 2,200 3,700 3,700 3,811 3,925 4,043 4,164 4,289 4,418 4,551 4,687 18 Dues & Subscriptions 294,762 303,946 278,894 300,943 312,906 330,000 330,000 330,000 339,900 350,097 360,600 371,418 382,560 394,037 405,858 418,034 19 Contractual Services4 380,517 948,352 664,254 366,394 544,348 100,000 512,100 513,000 528,390 544,242 560,569 577,386 594,708 612,549 630,925 649,853 20 Equipment 10,345 9,851 6,366 11,266 14,619 15,000 15,000 15,000 15,450 15,914 16,391 16,883 17,389 17,911 18,448 19,002 21 Other Expenses 13,350 176,191 1,264 3,050 8,182 4,100 7,900 7,900 8,137 8,381 8,633 8,892 9,158 9,433 9,716 10,007 22 Depreciation 294,322 351,671 396,259 481,429 614,024 752,078 808,750 867,684 931,274 965,074 968,721 1,056,554 1,143,887 1,242,054 1,342,220 1,443,099 23 Allocations2 240,721 247,484 346,322 355,170 378,144 390,013 384,503 395,787 407,661 419,890 432,487 445,462 458,826 472,590 486,768 501,371 24 25 Total Operating Expenses 2,018,779 2,781,634 2,581,491 2,312,576 2,710,011 2,693,893 3,190,429 3,305,713 3,442,444 3,551,579 3,632,821 3,800,577 3,970,231 4,153,188 4,340,688 4,531,521 26 27 Net Operations 616,305 34,117 463,864 923,007 803,768 842,084 681,970 851,748 1,017,378 1,233,356 1,494,901 1,693,858 1,918,285 2,157,788 2,422,142 2,716,662 28 29 Non operating revenues (expenses) 30 Interest on Investments 110,859 44,939 25,119 45,706 79,343 21,000 51,650 51,650 30,080 30,465 45,751 69,180 68,060 70,306 71,397 75,333 31 Intergovernmental 4,317 4,500 264,026 6,500 - - - - - - - - - - - - 32 Capital contributions5 1,201,598 660,498 2,248,049 3,929,636 1,801,816 700,000 2,000,000 1,600,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 33 Administrative fee 46,932 - - - - - - - - - - - - - - - 34 Transfers In (Out) 35 Water Resources Construction (800) - 214,913 (54,791) 478,474 - - - - - - - - - - - 36 Transit - (18,330) (56,700) - - - - - - - - - - - 37 Central Equipment (53,052) (23,862) - - (68,262) - - - - - - - - - - - 38 General3 (17,388) (17,388) - - - - - - - - - - - - - - 39 Improvement Project Construction (291,488) (155,222) (204,690) (55,753) (1,178,008) - - - - - - - - - - - 40 Information Technology (13,225) - - - - - - - - - - - - - - - 41 42 Total non operating revenue (expenses)987,753 513,465 2,529,087 3,814,598 1,113,363 721,000 2,051,650 1,651,650 730,080 730,465 745,751 769,180 768,060 770,306 771,397 775,333 43 44 Net increase (decrease) in resources 1,604,058 547,582 2,992,951 4,737,605 1,917,131 1,563,084 2,733,620 2,503,398 1,747,459 1,963,821 2,240,652 2,463,039 2,686,345 2,928,094 3,193,539 3,491,995 1 Penalties estimated to remain stable. 2 Allocations increase in 2016 due to a change in methodology. Administrative support personal services costs are now recorded as an allocation instead of direct costs to the department. 3 Beginning in 2016, General Fund transfer is incorporated in allocations. 4 Beginning in 2015, all expenses related to preventative storm sewer repairs will be expenses directly to the Water Resources Fund instead of the Capital Project Fund. 5 Capital contributions have no impact on cash flow, therefore are estimated based on average history. 6 Revenue from new growth displayed in line 7 will be shifted to Water Resources Utility revenues as current customer counts are used in subsequent years. 7 Added a Senior Engineering Technician and a portion of a Utilities Maintenance Worker, removed a portion of the Water Resources Manager from personal services beginning in 2019.Appendix C-4City of Plymouth Water Resources Fund Performance/Projection Actual Projections 38 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Appendix C-4City of Plymouth Water Resources Fund Performance/Projection Actual Projections 45 CIP Funding 46 Current Year Capital (665,000) (1,323,486) (652,338) (558,919) (2,364,692) (1,295,223) (2,040,000) (1,794,000) (1,948,000) (1,006,000) (635,000) (2,909,253) (2,950,546) (3,382,879) (3,520,836) (3,573,561) 47 Total Capital & Related Debt (665,000) (1,323,486) (652,338) (558,919) (2,364,692) (1,295,223) (2,040,000) (1,794,000) (1,948,000) (1,006,000) (635,000) (2,909,253) (2,950,546) (3,382,879) (3,520,836) (3,573,561) 48 49 Cash 50 Beginning Cash 3,434,353 3,174,289 2,713,799 2,642,736 3,476,493 2,607,042 2,926,981 2,429,351 2,406,434 2,437,166 3,660,061 5,534,434 5,444,774 5,624,460 5,711,728 6,026,651 51 Add net increase (decrease) in resources (47)1,563,084 2,733,620 2,503,398 1,747,459 1,963,821 2,240,652 2,463,039 2,686,345 2,928,094 3,193,539 3,491,995 52 Add back depreciation (22)752,078 808,750 867,684 931,274 965,074 968,721 1,056,554 1,143,887 1,242,054 1,342,220 1,443,099 53 Less capital contributions (32)(700,000) (2,000,000) (1,600,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) 54 Less capital and related debt principal(50)(1,295,223) (2,040,000) (1,794,000) (1,948,000) (1,006,000) (635,000) (2,909,253) (2,950,546) (3,382,879) (3,520,836) (3,573,561) 55 Ending Cash 3,174,289 2,713,799 2,642,736 3,476,493 2,607,042 2,926,981 2,429,351 2,406,434 2,437,166 3,660,061 5,534,434 5,444,774 5,624,460 5,711,728 6,026,651 6,688,184 Appendix C-4 (continued)39 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 Revenue flat rate assumption - 0.25 0.25 0.25 0.25 0.25 0.35 0.35 0.40 0.40 0.40 0.35 0.35 0.35 0.30 0.30 2 Investment income yield 1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25% 3 Expense rate - personnel 3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00% 4 Expense rate - all other 3.00%3.00%3.00%3.00%3.00%3.00%3.50%3.50%3.50%3.50%3.50% 5 6 Operating Revenues 7 Solid Waste Utility Charges 423,718 496,541 573,564 652,981 737,135 811,998 923,788 1,028,086 1,147,285 1,266,483 1,385,681 1,489,980 1,594,279 1,698,577 1,787,976 1,877,375 8 Penalties1 4,815 5,405 5,662 7,274 6,788 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 9 Licenses - Garbage Hauler - 4,975 - 4,771 4,856 4,975 4,975 4,975 4,975 4,975 4,975 4,975 4,975 4,975 4,975 4,975 10 Other3 69,986 12,285 16,881 101,458 12,670 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 11 Additional Revenue - new growth6 - - - - - - 18,600 28,980 39,270 51,000 61,380 72,000 83,460 95,760 108,000 120,960 12 13 Total Operating Revenues 498,519 519,206 596,107 766,484 761,449 836,473 966,863 1,081,541 1,211,030 1,341,958 1,471,536 1,586,455 1,702,214 1,818,812 1,920,451 2,022,810 14 15 Operating Expenses 16 Personal Services4,7 100,194 183,796 148,891 122,859 87,154 171,469 173,848 212,894 219,281 225,859 232,635 239,614 246,802 254,207 261,833 269,688 17 Materials & Supplies 9,999 4,425 2,263 9,354 1,809 5,550 5,550 7,050 7,262 7,479 7,704 7,973 8,252 8,541 8,797 9,061 18 Employee Development & Meetings 392 399 25 25 37 450 450 450 464 477 492 509 527 545 562 578 19 Dues & Subscriptions 450 562 10 10 300 400 400 400 412 424 437 452 468 485 502 519 20 Contractual Services2 797,953 855,220 848,410 881,901 928,896 1,031,600 1,122,300 1,158,900 1,193,667 1,229,477 1,266,361 1,310,684 1,356,558 1,404,037 1,453,179 1,504,040 21 Equipment - - - - - - - - - - - - - - - - 22 Other Expenses 1,447 1,919 1,932 2,637 3,996 3,000 4,500 4,500 4,635 4,774 4,917 5,089 5,268 5,452 5,643 5,840 23 Depreciation 2,438 3,289 4,821 4,893 5,683 5,683 5,683 5,683 5,683 5,683 5,683 5,683 5,683 5,683 5,683 5,683 24 Allocations4 8,558 8,747 68,086 65,577 67,158 69,151 69,082 71,146 73,280 75,479 77,743 80,464 83,280 86,195 89,212 92,334 25 26 Total Operating Expenses 921,431 1,058,357 1,074,438 1,087,256 1,095,033 1,287,303 1,381,813 1,461,023 1,504,683 1,549,653 1,595,972 1,650,469 1,706,839 1,765,145 1,825,410 1,887,744 27 28 Net Operations (422,912) (539,151) (478,331) (320,772) (333,584) (450,830) (414,950) (379,482) (293,654) (207,695) (124,436) (64,014) (4,625) 53,667 95,041 135,065 29 30 Non operating revenues (expenses) 31 Interest on Investments 75,306 30,901 18,006 22,384 24,811 20,300 20,050 20,050 5,696 3,588 2,527 2,494 3,217 4,690 6,911 9,676 32 Intergovernmental 197,233 226,782 222,251 205,779 178,141 135,837 131,674 113,602 113,602 113,602 113,602 113,602 113,602 113,602 113,602 113,602 33 Capital contributions - 54,886 - - - - - - - - - - - - - - 34 Transfers In (Out) 35 General5 (17,929) (17,929) - - - - - - - - - - - - - - 36 General Capital Projects (60,016) - - - - - - - - - - - - - - 37 38 Total non operating revenue (expenses)254,610 234,624 240,257 228,163 202,952 156,137 151,724 133,652 119,298 117,190 116,129 116,096 116,819 118,292 120,513 123,278 39 40 Net increase (decrease) in resources (168,302) (304,527) (238,074) (92,609) (130,632) (294,693) (263,226) (245,830) (174,356) (90,506) (8,307) 52,082 112,193 171,959 215,554 258,343 41 42 Cash 43 Beginning Cash 2,397,737 2,220,051 1,877,841 1,503,770 1,388,232 1,242,378 953,368 695,825 455,678 287,005 202,183 199,559 257,324 375,201 552,843 774,079 44 Add net increase (decrease) in resources (40)(294,693) (263,226) (245,830) (174,356) (90,506) (8,307) 52,082 112,193 171,959 215,554 258,343 45 Add back depreciation (22)5,683 5,683 5,683 5,683 5,683 5,683 5,683 5,683 5,683 5,683 5,683 46 Ending Cash 2,220,051 1,877,841 1,503,770 1,388,232 1,242,378 953,368 695,825 455,678 287,005 202,183 199,559 257,324 375,201 552,843 774,079 1,038,106 1 Penalties estimated to remain stable. 2 A new contract is being negotiated with Republic Services. The cost per household is not available for 2019 and beyond, therefore the contractual services is estimated. 3 The market for recyclables has declined beginning in 2015, therefore revenue sharing is conservatively eliminated. 4 Allocations increase in 2016 due to a change in methodology. Administrative support personal services costs are now recorded as an allocation instead of direct costs to the department. 5 Beginning in 2016, General Fund transfer is incorporated in allocations. 6 Revenue from new growth displayed in line 7 will be shifted to Solid Waste Utility revenues as current customer counts are used in subsequent years. 7 Water Resources Manager is overseeing the Solid Waste program. 25% of personal services are budgeted here beginning in 2019.Appendix C-5City of Plymouth Solid Waste Management Fund Performance/Projection Actual Projections 40 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 Water 2 Ending Cash Balance 3,979,270 2,551,780 2,203,370 2,293,584 2,559,420 2,803,641 3,128,007 3,291,495 3,349,232 3,420,899 3,421,030 3 Target Reserves 3,978,906 2,551,095 2,202,628 2,292,831 2,559,241 2,803,092 3,127,184 3,290,962 3,348,884 3,420,323 3,420,323 4 Excess (Shortfall)364 685 742 752 179 550 824 533 348 576 707 5 6 Sewer 7 Ending Cash Balance 3,037,113 2,946,103 2,965,457 3,410,491 3,261,019 3,787,257 3,941,502 4,051,980 4,218,546 4,360,600 4,360,022 8 Target Reserves 3,036,320 2,945,105 2,965,408 3,410,397 3,260,298 3,787,028 3,941,364 4,051,321 4,217,652 4,359,838 4,359,838 9 Excess (Shortfall)794 999 49 94 721 229 138 658 894 763 184 10 11 Water Sewer Replacement 12 Ending Cash Balance 1,916,683 584,683 1,845,683 3,543,683 5,262,683 6,760,683 7,741,683 8,723,683 9,849,683 9,849,683 9,849,683 13 14 Total Ending Cash Balance1 8,933,066 6,082,566 7,014,510 9,247,758 11,083,122 13,351,581 14,811,192 16,067,158 17,417,462 17,631,182 17,630,735 15 16 17 Water Resources 18 Ending Cash Balance2 2,926,981 2,429,351 2,406,434 2,437,166 3,660,061 5,534,434 5,444,774 5,624,460 5,711,728 6,026,651 6,688,184 19 Target Reserves 1,615,420 1,506,507 1,601,792 1,149,626 983,525 2,140,632 2,181,859 2,419,223 2,510,035 2,558,886 2,558,886 20 Excess (Shortfall)1,311,561 922,844 804,641 1,287,540 2,676,536 3,393,802 3,262,915 3,205,237 3,201,693 3,467,765 4,129,298 21 22 23 Solid Waste Management 24 Ending Cash Balance 953,368 695,825 455,678 287,005 202,183 199,559 257,324 375,201 552,843 774,079 1,038,106 25 Target Reserves 344,033 363,835 374,750 385,993 397,572 411,197 425,289 439,866 454,932 470,515 470,515 26 Excess (Shortfall)609,336 331,990 80,928 (98,987) (195,390) (211,638) (167,965) (64,665) 97,911 303,564 567,590 1 2 Appendix DAs the water and sewer systems continue to age, it is critical to assess infrastructure conditions and capital needs. Target reserves are being maintained at a higher level as staff is proposing to hire an outside firm to evaluate the systems and long-term capital needs. Cash projections and target reserves will be evaluated and adjusted to match the evaluation results. Ending cash balance includes estimated external funding for projects noted in Appendix E-3. Reimbursement is uncertain at this time. City of Plymouth Reserves 41 Inflation Rate 2.00% PROJECT DESCRIPTION PROJECT #2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Funding Provided by Water Fund Refurbish Central Water Tower WA-19-0001 1,400,000 Xenium Lane Water Main Rehabilitation WA-20-0001 2,000,000 Annual Well Refurbishing2 WA-XX-9001 280,000 280,000 300,000 300,000 300,000 300,000 300,000 325,000 325,000 325,000 325,000 Annual Treatment Plant Refurbishing WA-XX-9003 125,000 125,000 125,000 125,000 125,000 175,000 175,000 175,000 175,000 175,000 225,000 Water Storage Facility Improvements WA-XX-9004 125,000 75,000 Brockton Lane Reconstruction ST-19-0005 26,028 Juneau Lane from Hampton Hills to 59th Ave ST-20-0001 310,000 County Road 9 at TH 169 Bridge Replacement ST-20-0002 300,000 Ridgemount Ave Rehabilitation ST-21-0002 500,000 Annual Street Reconstruction1, 2 ST-XX-9001 552,000 2,200,000 1,100,000 1,100,000 1,100,000 1,200,000 1,200,000 1,500,000 1,700,000 1,400,000 1,700,000 Annual Mill & Overlay2 ST-XX-9002 556,089 600,000 400,000 100,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Annual Full Depth Reclamation (FDR)2 ST-XX-9005 200,000 75,000 100,000 100,000 100,000 150,000 150,000 150,000 175,000 175,000 Camera System Upgrades IT-17-0008 115,000 Future Project Contingency 400,000 400,000 400,000 400,000 400,000 Total Water Fund 3,054,117 5,405,000 2,500,000 1,725,000 1,825,000 2,275,000 2,425,000 2,875,000 3,025,000 2,985,000 3,025,000 Inflated Total 2,677,396 3,237,717 3,474,774 3,497,403 3,544,270 Note: A 2% inflation factor is included on placeholder projects, based on the American City and County Magazine's published Construction Cost Index. 1A history of watermain issues is known in the 2019 and 2020 street reconstruction areas. There is no history of issues in the 2021-2023 areas. 2Project area is adjusted to be within CIP based on bid estimates.Appendix E-1City of Plymouth Water Utility Capital Improvement Plan 42 Inflation Rate 2.00% PROJECT DESCRIPTION PROJECT #2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Funding Provided by Sewer Fund Autumn Hills Lift Station SS-16-0001 100,000 500,000 Refurbish Bass Lake Plaza Lift Station SS-18-0001 700,000 Ferndale North Lift Station Generator SS-19-0001 45,000 Kingswood Farms Lift Station Generator SS-19-0002 45,000 Mission Farm Lift Station Generator SS-19-0003 75,000 Mission Farm Lift Station Bypass SS-20-0001 350,000 Lancaster Lift Station Pump Replacement SS-21-0001 150,000 Bass Lake Lift Station Pump Replacement SS-23-0001 250,000 Line Sanitary Sewer Main - annual2 SS-XX-9001 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 Future Lift Station Improvements SS-XX-9003 150,000 250,000 250,000 250,000 250,000 250,000 Juneau Lane from Hampton Hills to 59th Ave ST-20-0001 10,000 County Road 9 at TH 169 Bridge Replacements ST-20-0002 100,000 Annual Street Reconstruction1, 2 ST-XX-9001 10,000 100,000 50,000 50,000 50,000 60,000 60,000 80,000 100,000 75,000 100,000 Annual Mill & Overlay1, 2 ST-XX-9002 277,893 250,000 190,000 80,000 110,000 80,000 80,000 80,000 80,000 90,000 90,000 Annual Full Depth Reclamation (FDR)1, 2 ST-XX-9005 50,000 50,000 50,000 50,000 50,000 60,000 60,000 60,000 60,000 60,000 Future Project Contingency 500,000 500,000 500,000 500,000 500,000 Total Sewer Fund 2,152,893 1,750,000 1,440,000 1,280,000 1,960,000 1,440,000 2,050,000 2,070,000 2,090,000 2,085,000 2,100,000 Inflated Total 2,263,366 2,331,156 2,400,753 2,442,910 2,460,485 Note: A 2% inflation factor is included on placeholder projects, based on the American City and County Magazine's published Construction Cost Index.1Project cost is dependent of the size of the project area.2Project area is adjusted to be within CIP based on bid estimates.Appendix E-2City of Plymouth Sanitary Sewer Utility Capital Improvement Plan 43 Inflation Rate 2.00% PROJECT DESCRIPTION PROJECT #2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Funding Provided by Water Resources Fund Chelsea Woods Drainage - Weston Ln to CR 64 WR-15-0004 50,000 400,000 Weston Lane Storm Sewer Lift Station Rehab.WR-16-0001 75,000 475,000 Wild Wings Western Wetland Improvements WR-17-0001 100,000 100,000 Harbor Place Erosion Repair WR-17-0003 200,000 St. Mary's Addition Drainage Improvement WR-18-0001 125,000 Mengelkochs First Addition Drainage Improvement WR-18-0002 20,000 50,000 Plum Tree East Drainage Improvement WR-18-0003 20,000 250,000 Schiebers Addition Erosion Repair WR-18-0004 20,000 150,000 Elm Creek Stream Restoration - HWY 55 to WHS1,4 WR-18-0005 598,000 Ivanhoe/Pleasant Hills Drainage Improvement WR-18-0007 50,000 50,000 Meadow Wood Drainage Improvement WR-18-0009 150,000 100,000 4th and Zircon Drainage Improvement WR-18-0010 60,000 50,000 19th Avenue/Dunkirk Lane Pond Improvement1 WR-19-0001 75,000 250,000 Northwest Greenway Trailhead Playfield 10 Development Stormwater Quality Improvement3 WR-22-0002 375,000 Maple Creek Stream Restoration1 WR-20-0001 50,000 400,000 Plymouth Marketplace Drainage Improvement WR-20-0002 20,000 80,000 County Road 9/Larch Lane Drainage Improvement WR-20-0005 75,000 100,000 Courts/Fields of Nantarre Drainage Improvement WR-20-0006 20,000 100,000 Street Sweeper WR-20-0007 350,000 The Bass and Pomerleau Alum Treatment - Phase 2 WT-20-0008 37,000 Palmer Creek Estates Stream Restoration1 WR-21-0002 75,000 350,000 Ponderosa Woods Stream Restoration WR-21-0003 75,000 Kingsview Heights Drainage Improvement WR-21-0004 25,000 175,000 Schmidt Lake Woods Drainage Improvement WR-21-0005 50,000 200,000 Bass Lake Estates 2nd Add Stream Restoration WR-22-0001 100,000 400,000 Maintain Water Quality Ponds2 WR-XX-0001 75,000 100,000 100,000 100,000 150,000 150,000 150,000 200,000 200,000 200,000 250,000 Unspecified Drainage Improvements2 WR-XX-9002 75,000 75,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 BCWMC Water Quality, Channel, and Basin Improvements2 WR-XX-9003 75,000 75,000 75,000 Future Water Quality Improvements2 WR-XX-9004 1,000,000 1,000,000 1,250,000 1,250,000 1,250,000 New 1/2 ton Pickup CE-20-400X 30,000 Brockton Lane Reconstruction ST-19-0005 17,223 Juneau Lane from Hampton Hills to 59th Ave ST-20-0001 100,000 County Road 9 at TH 169 Bridge Replacement ST-20-0002 100,000 Ridgemount Ave Rehabilitation ST-21-0002 20,000 Annual Street Reconstruction2 ST-XX-9001 10,000 50,000 50,000 80,000 80,000 90,000 90,000 100,000 100,000 100,000 120,000 Annual Mill and Overlay2 ST-XX-9002 58,000 44,000 18,000 26,000 20,000 20,000 20,000 20,000 30,000 30,000 Annual Full Depth Reclamation (FDR)2 ST-XX-9005 50,000 50,000 75,000 75,000 75,000 100,000 100,000 100,000 125,000 125,000 Future Project Contingency 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Total Water Resources Fund 1,295,223 2,040,000 1,794,000 1,948,000 1,006,000 635,000 2,635,000 2,620,000 2,945,000 3,005,000 3,050,000 Inflated Total 2,909,253 2,950,546 3,382,879 3,520,836 3,573,561 Note: A 2% inflation factor is included on placeholder projects, based on the American City and County Magazine's published Construction Cost Index. 2Project area is adjusted to be within CIP based on bid estimates.3Project will coincide with the Playfield Land Development project. 4Project shifted from what was presented in the 2019-2023 CIP. City of Plymouth Water Resources Capital Improvement Plan 1Projects may be funded by an external source, however, reimbursement is uncertain at this time. Cash balances are projected in Appendix C-4 assuming that external funding is available.Appendix E-344 Utility Trunk Fund Analysis For Year Ending December 31, 2018 Prepared By: Finance Division 45 1 | P a g e Introduction This analysis was done to update the financial projections for the trunk expansion fund and ensure the following: 1. Rates are sufficient to support the expansion of the water and sewer utilities to undeveloped areas. 2. Revenue sources are restricted to new users going forward. 3. An adequate cash balance is maintained to cover fluctuations in revenue and expenses. Background The Utility Trunk Expansion fund was created to track the cost of adding water and sewer mains to new developments and assist in evaluating whether the incoming revenue from those developments is adequate to cover the related expenses. The utility trunk fund was intended to separate projects related to growth from those related to maintenance and repair of systems used to serve existing residents. Assumptions The following are the significant assumptions made in this analysis: 1) Growth is estimated at 100-250 units per year from 2019-2029. 2) Area charges a) 46% collected in the year charged b) 54% assessed and collected over 5 years (15% collected as payoffs each year) 3) Expenses a) Capital – 2020 through 2029 obtained from the proposed CIP document. b) Capital beyond 2020 and all other expenses projected to increase 2% annually (based on The American City and County Magazine’s published Construction Cost Index). 4) Rates – 2% increase Overview and Recommendations The Trunk Expansion fund generates revenue from water and sewer area and connection (REC) charges from new construction. These charges are intended to provide funding for the expansion of utility services to new developments and allocate the cost of the system to those who benefit, instead of existing users. The area charges are based on the land area associated with the development, and are charged out at a per-acre rate. It is normal practice to assess the area charges to the properties and collect the fee over a five year period, with interest. Water connection fees are based on the number of residential equivalency units (REU) assigned to their usage. An REU is defined as the use of 225 gallons per day, the equivalent of a typical single-family dwelling. In order to keep up with the expenses of new development, we recommend annual rate increases of 2% to the Area and REC charges for both water and sewer for a minimum of five years, at which time new development will have leveled off and the financial demands on the Expansion Fund are reduced. 46 2 | P a g e Proposed Increases 2%2%2%2%2% 2019 2020 2021 2022 2023 2024 $1,277 $1,303 $1,329 $1,355 $1,382 $1,410 4,743 4,838 4,935 5,033 5,134 5,237 538 549 560 571 582 594 1,379 1,407 1,435 1,463 1,493 1,523 Note: Area charges are per acre and connection (REC) charges are per REU. Sewer Area Water Area Sewer REC Water REC Cash Balances The Utility Trunk Expansion fund had an estimated cash balance of $11,183,150 as of 12/31/18. The actual cash balance is $11,307,923. Cash variances are the result of higher than anticipated REC charges, additional street assessments and interest. The increase in REC charges was due to the timing of development. The increase in street assessment was due to changes in the capital improvement projects. The remaining variance is due to the fluctuation of special assessments collected as this fund holds the receivables for street project special assessments. Special assessments are collected over a 5, 10 or 15 year term or up front. For projection purposes, 46% of assessments are estimated to be collected up front and 54% are estimated to be collected over the term with 15% collected as payoffs each year. - 2 4 6 8 10 12 14 16 18 20 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029MillionsUtility Trunk Expansion Fund Cash Balances Updated Cash Projections September 2019 Original Cash Projections January 2019 *This study was adjusted to align with the 10 year CIP, therefore two years were added to this graph. Growth expectations were adjusted in this study based on updated data from Community Development and the 2040 Comprehensive Plan. Proposed area and REC charges remain consistent with the previous study. 47 3 | P a g e Summary The Council had elected to fund expansion projects from new development (the users that derive the benefit). A 2% annual increase is recommended to ensure funds are available for future capital needs. If growth continues as estimated, there will be very little development beyond 2025. The demand for expansion will dissipate as the City nears complete development, leaving the fund with a sizeable reserve. Upon full development of the city, a new water treatment plant will be evaluated for need. The cost is estimated at approximately $9 million. Staff recommends this cash balance be maintained until there is not a need for expansion projects. At that time, any excess can be transferred to the water and sewer utility funds for support of ongoing operations and maintenance of the system. Appendix A Cash flow Projections Appendix B Capital Expenditure Projections 48 City of Plymouth Utility Trunk Expansion Cashflow 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Revenue Rate Assumption 3.8%0.0%0.0%3.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0%0.0% Interest Rate 1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25%1.25% Revenue Area Charges 11,512 124,441 31,939 75,335 118,916 - - - - - - - - - - - Area Chares Assessments 797,453 638,859 826,159 589,159 675,492 151,492 154,522 174,190 177,674 181,227 184,852 188,549 192,320 196,166 200,089 204,091 REC Charges 832,755 1,236,530 805,340 1,181,893 1,364,105 479,208 488,792 398,854 305,123 311,226 211,634 215,866 220,184 224,587 229,079 233,661 Interest 224,807 137,099 347,291 301,459 306,627 141,349 152,211 155,907 166,804 174,773 184,862 196,484 201,097 210,292 218,195 225,734 Transfers Improvement Project Construction***- 747,752 - - - - - - - - - - - - Total Revenue 1,866,527 2,884,681 2,010,729 2,147,846 2,465,140 772,049 795,525 728,951 649,601 667,226 581,347 600,899 613,600 631,045 647,363 663,486 Expense Sewer Projects 100,000 100,000 100,000 100,000 100,000 100,000 - - - - - Water Projects 220,000 220,000 220,000 220,000 220,000 100,000 100,000 100,000 - - - Transfers Water Sewer Construction**- - 218,401 134,694 118,787 - - - - - - - - - - - Improvement Project Construction***1,355,224 - - 793,646 1,834,095 - - - - - - - - - - - Other 28 1,751 12,536 2,117 4,230 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Total Expense 1,355,252 1,751 230,937 930,457 1,957,112 325,000 325,000 325,000 325,000 325,000 205,000 105,000 105,000 5,000 5,000 5,000 511,275 2,882,930 1,779,792 1,217,389 508,028 447,049 470,525 403,951 324,601 342,226 376,347 495,899 508,600 626,045 642,363 658,486 *Transfer due to adjusted project funding. **Trunk water main/sewer main oversizing. ***Dunkirk Lane Street and Utility Project and Peony Lane Project. Beginning Cash 5,938,381 6,646,482 4,485,520 6,827,634 9,087,645 11,307,923 12,176,893 12,472,560 13,344,301 13,981,847 14,788,942 15,718,758 16,087,735 16,823,353 17,455,599 18,058,744 Add: Net Income (Loss)447,049 470,525 403,951 324,601 342,226 376,347 495,899 508,600 626,045 642,363 658,486 Less: Area Assessments (151,492) (154,522) (174,190) (177,674) (181,227) (184,852) (188,549) (192,320) (196,166) (200,089) (204,091) Less: Cash Advance for Street Assessments (1,747,400) (2,615,000) (1,520,000) (1,620,000) (1,470,000) (1,370,000) (2,470,000) (1,770,000) (2,200,000) (2,400,000) (2,200,000) Add: Current Year Assessment Collections 2,320,813 2,594,664 2,161,980 2,110,619 2,116,096 2,108,320 2,531,627 2,189,337 2,402,367 2,560,872 2,558,510 Ending Cash Balances 6,646,482 4,485,520 6,827,634 9,087,645 11,307,923 12,176,893 12,472,560 13,344,301 13,981,847 14,788,942 15,718,758 16,087,735 16,823,353 17,455,599 18,058,744 18,871,649 Previous 2018 Projection 6,646,482 4,485,520 6,827,634 9,087,645 10,844,116 10,503,357 9,923,813 10,274,483 10,886,725 11,197,223 11,997,071 12,845,427 13,372,027 13,835,098 Variance from Previous Projection - - - - 463,807 1,673,536 2,548,747 3,069,818 3,095,122 3,591,719 3,721,687 3,242,308 3,451,326 3,620,501 2017 Projection 6,646,482 4,485,520 6,827,634 9,087,645 9,363,874 7,923,913 7,788,858 8,106,707 8,388,508 9,113,620 9,086,245 9,039,715 10,724,410 Variance from 2017 Projection - - - - 1,944,049 4,252,980 4,683,702 5,237,594 5,593,339 5,675,322 6,632,513 7,048,020 6,098,943 Year End Assessment Receivable 6,143,692 5,371,120 4,943,715 4,168,510 4,004,527 3,582,606 3,757,463 3,289,673 2,976,728 2,511,859 1,958,390 2,085,312 1,858,295 1,852,094 1,891,312 1,736,893 Cash Advance Comparison Current Projection 1,747,400 2,615,000 1,520,000 1,620,000 1,470,000 1,370,000 2,470,000 1,770,000 2,200,000 2,400,000 2,200,000 Previous 2018 Projection 2,847,400 3,430,000 2,542,000 2,030,000 2,819,000 2,430,000 2,430,000 2,430,000 2,430,000 Variance from Previous 2018 Projection (1,100,000) (815,000) (1,022,000) (410,000) (1,349,000) (1,060,000) 40,000 (660,000) (230,000) 2017 Projection 3,061,438 2,078,757 2,001,574 2,024,000 1,880,000 2,600,000 2,880,000 880,000 Variance from 2017 Projection (1,314,038) 536,243 (481,574) (404,000) (410,000) (1,230,000) (410,000) 890,000 Actual Net Income (Loss) Appendix AProjections Area charges in 2019-2029 are shown as assessments since only a small portion are paid in the year charged. It is assumed that 46% of assessments are collected in the year charged and 54% are collected over 5 years. The Utility Trunk fund advances cash to the Construction Improvement - Streets fund. As a result, the Utility Trunk fund holds the receivables for street assessments. Street assessments are also assumed to have 46% collected in the year charged and 54% collected over 5 years. 49 City of Plymouth Utility Trunk Fund Capital Expenditure Projections Inflation 2.00% % New Development Year CIP Cost Sewer Trunk sewer oversizing 100.00%2019 100,000 Trunk sewer oversizing 100.00%2020 100,000 Trunk sewer oversizing 100.00%2021 100,000 Trunk sewer oversizing 100.00%2022 100,000 Trunk sewer oversizing 100.00%2023 100,000 Trunk sewer oversizing 100.00%2024 100,000 Total 600,000 Water Trunk water main oversizing 100.00%2019 220,000 Trunk water main oversizing 100.00%2020 220,000 Trunk water main oversizing 100.00%2021 220,000 Trunk water main oversizing 100.00%2022 220,000 Trunk water main oversizing 100.00%2023 220,000 Trunk water main oversizing 100.00%2024 100,000 Trunk water main oversizing 100.00%2025 100,000 Trunk water main oversizing 100.00%2026 100,000 Total 1,400,000 *The CIP document has $9,000,000 budgeted for a new Water Treatment Plant, however, it is uncertain when this plant will be needed, therefore it has been omitted from this study. Appendix B 50 Year Identified 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total ADMINISTRATIVE SERVICES Information Technology IT-16-0010 Fiberoptics Interconnections 2016 80,000 80,000 0 0 0 0 0 0 0 0 160,000 IT-17-0007 Switch Upgrades 2017 30,000 0 0 0 0 0 0 0 0 0 30,000 IT-19-0002 Public Safety Dell Isilon Expansion 2018 0 80,000 0 0 0 0 0 0 0 0 80,000 IT-19-0004 VMware ESX Host Upgrades 2019 0 32,000 0 0 0 0 0 0 0 0 32,000 IT-20-0003 Cisco UCS Compute Hardware 2020 39,300 39,300 39,300 39,300 0 0 0 0 0 0 157,200 IT-20-0004 Cohesity Backup 2020 34,716 34,716 34,716 34,716 0 0 0 0 0 0 138,864 IT-20-0006 CityHall Lower Level Rewiring 2020 65,000 0 0 0 0 0 0 0 0 0 65,000 Total: Information Technology $249,016 $266,016 $74,016 $74,016 $0 $0 $0 $0 $0 $0 $663,064 TOTAL: ADMINISTRATIVE SERVICES $249,016 $266,016 $74,016 $74,016 $0 $0 $0 $0 $0 $0 $663,064 CITY ADMINISTRATION Mayor and Council AS-20-0001 Council Chambers Remodel 2020 20,000 300,000 0 0 0 0 0 0 0 0 320,000 Total: Mayor and Council $20,000 $300,000 $0 $0 $0 $0 $0 $0 $0 $0 $320,000 TOTAL: CITY ADMINISTRATION $20,000 $300,000 $0 $0 $0 $0 $0 $0 $0 $0 $320,000 PARKS AND RECREATION Field House FH-22-0001 Field House Retaining Wall Repair & Replacement 2019 0 0 500,000 0 0 0 0 0 0 0 500,000 FH-23-0001 Field House Doors and Container Repair & Replacement 2019 0 0 0 75,000 0 0 0 0 0 0 75,000 FH-XX-9001 Dome & Turf Repair and Replacement 2020 0 0 0 0 700,000 0 0 0 0 0 700,000 FH-XX-9002 Fieldhouse Electrical & Mechanical 2020 75,000 0 0 0 0 0 250,000 0 0 0 325,000 Page 1Nov 04, 2019 08:22 AM City of Plymouth Capital Improvement Plan 2020-2029 Projects by Department 51 Year Identified 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total FH-XX-9003 Fieldhouse Equipment 2020 0 65,000 0 0 0 30,000 0 0 0 0 95,000 Total: Field House $75,000 $65,000 $500,000 $75,000 $700,000 $30,000 $250,000 $0 $0 $0 $1,695,000 Ice Center IC-14-0003 Replace Ice Center Dehumidifier Desiccant Wheels 2013 40,000 0 0 0 0 0 0 50,000 0 65,000 155,000 IC-16-0001 Replace Ice Center Roof Top Air Handler 2013 0 0 0 0 0 0 125,000 0 0 0 125,000 IC-16-0002 Replace Ice Center Roof 2013 0 900,000 0 0 0 0 0 500,000 0 0 1,400,000 IC-17-0001 Replace Ice Center Dasher Boards 2013 180,000 0 0 0 0 195,000 0 0 0 0 375,000 IC-18-0003 Low E-Ceilings 2018 0 0 150,000 0 0 0 0 0 0 0 150,000 IC-20-0001 Replace Cooling Towers at Plymouth Ice Center 2016 0 0 0 0 0 0 150,000 0 0 0 150,000 IC-23-0001 PIC General Building Improvements 2019 0 0 0 100,000 100,000 100,000 0 0 0 0 300,000 IC-XX-9001 PIC Water Heaters 2020 50,000 0 0 0 0 0 0 50,000 0 0 100,000 IC-XX-9002 PIC Sound System 2020 0 60,000 0 40,000 0 0 0 0 80,000 0 180,000 IC-XX-9003 PIC Rubber Flooring 2020 0 0 90,000 0 0 0 0 90,000 0 60,000 240,000 IC-XX-9004 PIC Ice Resurfacers 2020 0 0 0 0 0 0 0 0 170,000 170,000 340,000 IC-XX-9006 PIC Scoreboards 2020 0 0 0 0 80,000 0 0 0 0 0 80,000 Total: Ice Center $270,000 $960,000 $240,000 $140,000 $180,000 $295,000 $275,000 $690,000 $250,000 $295,000 $3,595,000 Parks & Rec Admin PR-07-0005 Replace Irrigation Systems 2003 0 0 375,000 252,000 0 0 250,000 0 300,000 0 1,177,000 PR-10-0004 Add/Replace Outdoor Hockey Rinks 2006 0 0 150,000 0 0 0 0 0 0 0 150,000 PR-13-0001 Neighborhood Parks 2012 0 250,000 0 500,000 0 0 300,000 400,000 300,000 0 1,750,000 PR-14-0003 Replace Miscellaneous Boardwalks 2010 65,000 0 125,000 275,000 225,000 75,000 150,000 0 0 150,000 1,065,000 PR-14-0004 Tennis Court Repair 2012 210,000 0 0 0 0 0 0 0 400,000 0 610,000 PR-14-0005 Northwest Greenway 2012 2,200,000 0 0 0 1,600,000 0 0 0 0 0 3,800,000 PR-15-0002 Parking Lot Repair/Replacement 2012 150,000 500,000 0 400,000 0 500,000 100,000 0 100,000 0 1,750,000 Page 2Nov 04, 2019 08:22 AM City of Plymouth Capital Improvement Plan 2020-2029 Projects by Department 52 Year Identified 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total PR-16-0002 Park Lighting 2016 0 120,000 0 0 0 0 0 0 0 0 120,000 PR-20-0001 Playfield Land Development 2016 0 5,300,000 0 0 0 0 0 0 0 0 5,300,000 PR-20-0002 Field Renovation/Replacement 2020 300,000 0 0 0 0 0 0 0 0 0 300,000 PR-29-0001 Outdoor Artificial Turf 2020 0 0 0 0 0 0 0 0 0 1,200,000 1,200,000 PR-XX-9001 New Trails 2003 300,000 300,000 275,000 300,000 0 550,000 0 0 0 0 1,725,000 PR-XX-9002 Trail Repair 2003 300,000 400,000 400,000 400,000 500,000 500,000 500,000 500,000 500,000 500,000 4,500,000 PR-XX-9003 Playground Replacement or Renovation 2006 400,000 450,000 270,000 250,000 500,000 270,000 300,000 400,000 350,000 375,000 3,565,000 PR-XX-9004 Miscellaneous Park Improvements 2006 250,000 150,000 100,000 0 0 200,000 150,000 0 150,000 0 1,000,000 PR-XX-9005 Park Amenities & Facilities 2020 250,000 0 0 0 100,000 0 0 0 0 200,000 550,000 PR-XX-9006 Land Acquisition 2020 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 0 0 2,400,000 PR-XX-9007 Park Building Repair/Renovation 2020 90,000 0 0 0 0 0 0 1,300,000 0 1,000,000 2,390,000 REC-22-0001 Electronic Sign 2020 0 0 100,000 0 0 0 0 0 0 0 100,000 Total: Parks & Rec Admin $4,815,000 $7,770,000 $2,095,000 $2,677,000 $3,225,000 $2,395,000 $2,050,000 $2,900,000 $2,100,000 $3,425,000 $33,452,000 Plymouth Creek Activity Center PR-18-0001 Plymouth Creek Center Renovation & Expansion 2018 51,700,000 0 0 0 0 0 0 0 0 0 51,700,000 Total: Plymouth Creek Activity Center $51,700,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $51,700,000 TOTAL: PARKS AND RECREATION $56,860,000 $8,795,000 $2,835,000 $2,892,000 $4,105,000 $2,720,000 $2,575,000 $3,590,000 $2,350,000 $3,720,000 $90,442,000 PUBLIC WORKS Central Services - Central Equipment CE-13-0238 Motorgrader 2009 308,000 0 0 0 0 0 0 0 0 0 308,000 CE-14-0279 Single Axle Plow with Sander 2013 240,000 0 0 0 0 0 0 0 0 0 240,000 CE-15-0205 Remote Sheepsfoot Trench Compactor 2012 0 45,000 0 0 0 0 0 0 0 0 45,000 CE-16-1705 Police CSO 1/2 Ton Pickup 2012 30,000 0 0 0 0 0 0 0 0 0 30,000 CE-17-0225 Excavator 2013 0 150,000 0 0 0 0 0 0 0 0 150,000 CE-17-0333 Back Hoe 2013 0 200,000 0 0 0 0 0 0 0 0 200,000 CE-18-0198 Minivan 2016 30,000 0 0 0 0 0 0 0 0 0 30,000 CE-18-0203 2000 Wheel Loader w/plow 2014 0 280,000 0 0 0 0 0 0 0 0 280,000 Page 3Nov 04, 2019 08:22 AM City of Plymouth Capital Improvement Plan 2020-2029 Projects by Department 53 Year Identified 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total CE-20-0217 4 Inch Pump 2016 40,000 0 0 0 0 0 0 0 0 0 40,000 CE-20-0239 2005 Air Compressor 2016 31,000 0 0 0 0 0 0 0 0 0 31,000 CE-20-0286 Tandem Axle Dump Truck with Sander 2016 280,000 0 0 0 0 0 0 0 0 0 280,000 CE-20-0287 Tandem Axle Truck with Sander 2016 0 280,000 0 0 0 0 0 0 0 0 280,000 CE-20-0353 Step Van for Excavations 2016 81,000 0 0 0 0 0 0 0 0 0 81,000 CE-20-0368 3/4 Ton Pickup 4x4 2016 34,000 0 0 0 0 0 0 0 0 0 34,000 CE-20-1000 Police Cars (7)2020 380,000 0 0 0 0 0 0 0 0 0 380,000 CE-20-100X Additional Vehicle - School and Community Sergeant 2020 32,000 0 0 0 0 0 0 0 0 0 32,000 CE-20-101X Additional Vehicle - Training Sergeant 2020 40,000 0 0 0 0 0 0 0 0 0 40,000 CE-20-1706 2010 Police Investigations SUV 2016 30,000 32,000 0 0 0 0 0 0 0 0 62,000 CE-20-1707 Police Investigation Vehicle 2016 0 31,000 0 0 0 0 0 0 0 0 31,000 CE-20-2006 3/4 Ton Pickup 4x4 with Plow 2016 38,000 0 0 0 0 0 0 0 0 0 38,000 CE-2024-1000 Police Cars (7)2020 0 0 0 0 420,000 0 0 0 0 0 420,000 CE-20-4003 Minivan 2016 0 0 30,000 0 0 0 0 0 0 0 30,000 CE-20-400X New 1/2 ton Pickup 2020 30,000 0 0 0 0 0 0 0 0 0 30,000 CE-20-5008 3/4 Ton Pickup 4x4 with Plow 2016 41,000 0 0 0 0 0 0 0 0 0 41,000 CE-20-5009 3/4 Ton Pickup 4X4 with Plow 2016 41,000 0 0 0 0 0 0 0 0 0 41,000 CE-20-5011 Cargo Van 2016 30,000 0 0 0 0 0 0 0 0 0 30,000 CE-20-5015 Mower 16'2016 135,000 0 0 0 0 0 0 0 0 0 135,000 CE-20-5016 Mower 6'2016 0 72,000 0 0 0 0 0 0 0 0 72,000 CE-20-501X Forestry Mower Attachment 2020 45,000 0 0 0 0 0 0 0 0 0 45,000 CE-20-6002 Smithco Painter Groomer 2020 40,000 0 0 0 0 0 0 0 0 0 40,000 CE-21-0031 Aerial 100 Platform Fire Truck 2017 0 1,200,000 0 0 0 0 0 0 0 0 1,200,000 CE-21-0284 2007 Single Axle Plow 2017 0 250,000 0 0 0 0 0 0 0 0 250,000 CE-21-0288 Tandem Axle Plow with Sander 2017 0 0 278,000 0 0 0 0 0 0 0 278,000 CE-21-0302 1996 350 Kw Generator on Wheels 2017 0 100,000 0 0 0 0 0 0 0 0 100,000 CE-21-0304 2006 Dozer 2017 0 0 235,000 0 0 0 0 0 0 0 235,000 CE-21-0369 One Ton 4X4 Pickup 2017 0 37,000 0 0 0 0 0 0 0 0 37,000 CE-21-0370 Utility Pickup 2017 0 44,600 0 0 0 0 0 0 0 0 44,600 Page 4Nov 04, 2019 08:22 AM City of Plymouth Capital Improvement Plan 2020-2029 Projects by Department 54 Year Identified 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total CE-21-0371 2011 Pickup 4x4 2017 0 30,000 0 0 0 0 0 0 0 0 30,000 CE-21-0372 2011 Pickup 4x4 2017 0 30,000 0 0 0 0 0 0 0 0 30,000 CE-21-1708 Police Investigations SUV 2017 0 32,500 0 0 0 0 0 0 0 0 32,500 CE-21-5010 2010 Crew Cab 4x4 2017 0 36,000 0 0 0 0 0 0 0 0 36,000 CE-21-5012 6' Mower 2017 60,864 0 0 0 0 0 0 0 0 0 60,864 CE-21-5013 2011 Pickup 4x4 with Plow 2017 0 42,000 0 0 0 0 0 0 0 0 42,000 CE-22-0044 Fire Deputy Chief SUV 2018 0 0 47,700 0 0 0 0 0 0 0 47,700 CE-22-1000 Police Cars(7)2020 0 0 400,000 0 0 0 0 0 0 0 400,000 CE-22-1024 2013 Ford NGPI pool car 2019 0 0 30,000 0 0 0 0 0 0 0 30,000 CE-22-1710 Police Chief SUV 2018 0 0 42,871 0 0 0 0 0 0 0 42,871 CE-22-1711 Police Investigations SUV 2018 0 0 38,950 0 0 0 0 0 0 0 38,950 CE-22-2011 Asphalt Planer 2018 0 0 28,425 0 0 0 0 0 0 0 28,425 CE-22-500X Outdoor Artificial Turf Equipment 2020 0 0 100,000 0 0 0 0 0 0 0 100,000 CE-22-5017 3/4 Ton Pickup with Plow 2018 0 0 39,300 0 0 0 0 0 0 0 39,300 CE-22-5018 One Ton 4X4 with Plow 2018 0 0 43,400 0 0 0 0 0 0 0 43,400 CE-22-5024 Mower 16' 2014 2018 0 0 119,000 0 0 0 0 0 0 0 119,000 CE-23-0038 Fire Ladder Fire Truck L-31 2019 0 0 0 1,100,000 0 0 0 0 0 0 1,100,000 CE-23-0373 2013 4x4 Extended Cab Pickup 2019 0 0 0 35,800 0 0 0 0 0 0 35,800 CE-23-1712 2013 SUV Investigations 2019 0 0 0 35,000 0 0 0 0 0 0 35,000 CE-23-1713 2013 SUV Investigations 2019 0 0 0 37,000 0 0 0 0 0 0 37,000 CE-23-1720 2016 PI SUV Explorer used by command staff 2017 0 0 0 45,000 0 0 0 0 0 0 45,000 CE-23-1721 2016 PI SUV Explorer Used by Police Command 2017 0 0 0 45,000 0 0 0 0 0 0 45,000 CE-23-2014 2013 Ford Pick up with plow 2019 0 0 0 46,500 0 0 0 0 0 0 46,500 CE-23-3048 2013 Bobcat S630 Skidsteer 2019 0 0 0 51,000 0 0 0 0 0 0 51,000 CE-23-500X New Sidewalk Machine 2020 0 0 0 185,000 0 0 0 0 0 0 185,000 CE-23-5020 MacLean MV2 Sidewalk Machine 2019 0 0 0 185,000 0 0 0 0 0 0 185,000 CE-23-5022 2013 Toro GM 360 mower blower broom 2019 0 0 0 79,500 0 0 0 0 0 0 79,500 CE-23-6045 Field Groomer 2013 Smithco 2019 0 0 0 18,100 0 0 0 0 0 0 18,100 CE-24-0202 2006 Cat Loader with plow and wing 2020 0 0 0 0 350,000 0 0 0 0 0 350,000 Page 5Nov 04, 2019 08:22 AM City of Plymouth Capital Improvement Plan 2020-2029 Projects by Department 55 Year Identified 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total CE-24-1714 2014 Ford Explorer Black, Investigations 2020 0 0 0 0 44,300 0 0 0 0 0 44,300 CE-24-1715 2014 Ford Taurus Investigations 2020 0 0 0 0 36,000 0 0 0 0 0 36,000 CE-24-2009 Sign Truck 2020 0 160,000 0 0 0 0 0 0 0 0 160,000 CE-24-2020 2014 Ford F-350 4x4 with plow 2020 0 0 0 0 44,300 0 0 0 0 0 44,300 CE-24-2023 2014 Truck mounted heated Asphalt patch unit 2020 0 0 0 0 87,000 0 0 0 0 0 87,000 CE-24-3025 2004 Atlas Copco Generator 52 Kw 2020 0 0 0 0 27,000 0 0 0 0 0 27,000 CE-24-3045 2012 Big Tow Skid Steer Trailer 20" deck 18,200lb 2020 0 0 0 0 13,700 0 0 0 0 0 13,700 CE-24-3059 2014 Multi terrain Loader Tracked Skid Cat 287D 2020 0 0 0 0 94,400 0 0 0 0 0 94,400 CE-24-4004 2014 1/2 Ton 4x4 GMC PU Engineering 2020 0 0 0 0 34,500 0 0 0 0 0 34,500 CE-24-5021 MacLean MV2 Sidewalk Machine 2020 0 0 0 0 211,000 0 0 0 0 0 211,000 CE-24-5025 2014 Ford SUV Escape 2020 0 0 0 0 32,700 0 0 0 0 0 32,700 CE-24-5027 Bob Cat All Steer Skid Steer A770 2013 2020 0 0 0 0 66,850 0 0 0 0 0 66,850 CE-24-5028 2014 Chev 4x4 Pick up 2020 0 0 0 0 44,200 0 0 0 0 0 44,200 CE-24-5030 2014 ABI Field Groomer 2020 0 0 0 0 26,300 0 0 0 0 0 26,300 CE-24-6070 2014 Pro Core deep Aerator SR72 2020 0 0 0 0 32,000 0 0 0 0 0 32,000 CE-24-6085 2016 Vermeer BC 1800XL015 wood chipper 2017 0 0 0 0 88,000 0 0 0 0 0 88,000 CE-25-0035 Medium Duty Fire Rescue Truck 2021 0 0 0 0 0 360,000 0 0 0 0 360,000 CE-25-0376 2015 Chevrolet Silverado 4x4 Pickup w/plow 2021 0 0 0 0 0 53,500 0 0 0 0 53,500 CE-25-0377 2015 Lift Station Truck with F- 550 chassis 2017 0 0 0 0 0 104,000 0 0 0 0 104,000 CE-25-0379 2015 Chevrolet Pickup 4x4 w/Utility box 2021 0 0 0 0 0 59,500 0 0 0 0 59,500 CE-25-1000 Police Cars (7)2020 0 0 0 0 0 425,000 0 0 0 0 425,000 CE-25-1718 2015 Black Ford Taurus Investigation 2021 0 0 0 0 0 36,000 0 0 0 0 36,000 CE-25-2027 2015 Chev Pick up 4x4 with plow 2021 0 0 0 0 0 48,000 0 0 0 0 48,000 Page 6Nov 04, 2019 08:22 AM City of Plymouth Capital Improvement Plan 2020-2029 Projects by Department 56 Year Identified 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total CE-25-2028 2015 Chevrolet Pickup 4x4 w/ plow 2021 0 0 0 0 0 48,000 0 0 0 0 48,000 CE-25-4005 2015 White Colorado Bldg div 2021 0 0 0 0 0 36,000 0 0 0 0 36,000 CE-25-4006 2016 Chev Colorado, Bld Inspections 2017 0 0 0 0 0 36,000 0 0 0 0 36,000 CE-25-5031 2015 Chevrolet Silverado 4 door 4x4 Pickup Truck 2021 0 0 0 0 0 44,700 0 0 0 0 44,700 CE-25-5032 2015 Ford Focus Hatchback car 2021 0 0 0 0 0 26,000 0 0 0 0 26,000 CE-25-5033 2015 Tool Cat G series 2021 0 0 0 0 0 87,000 0 0 0 0 87,000 CE-25-5034 2015 Multi Purpose Tractor 5610 Tool Cat 2017 0 0 0 0 0 76,000 0 0 0 0 76,000 CE-25-5035 2015 T-650 Tracked Bobcat Skid Steer 2021 0 0 0 0 0 77,000 0 0 0 0 77,000 CE-25-5036 Toro GM 7210 Mower, blower polar tracks 2017 0 0 0 0 0 71,000 0 0 0 0 71,000 CE-25-5037 2015 Mower with blower Toro GM 7210 with Polar tracks 2017 0 0 0 0 0 70,000 0 0 0 0 70,000 CE-25-5038 2015 Groomer Rake Toro Model 8750 Pro Sand 5040 2017 0 0 0 0 0 37,000 0 0 0 0 37,000 CE-26-0051 E-21 Engine Pumper for Duty Crew 2017 0 0 0 0 0 0 640,000 0 0 0 640,000 CE-26-0053 2016 Ford Expedtion used by Fire Chief 2017 0 0 0 0 0 0 57,500 0 0 0 57,500 CE-26-0054 2016 Ford Expedtion 2017 0 0 0 0 0 0 58,000 0 0 0 58,000 CE-26-0290 2014 Mack Tandem with plow etc. 2022 0 0 0 0 0 0 365,000 0 0 0 365,000 CE-26-0291 2015 Mack Tandem, with snow equip 2022 0 0 0 0 0 0 365,000 0 0 0 365,000 CE-26-0292 2014 Single Axle dump with Swap Loader Hook 2022 0 0 260,000 0 0 0 0 0 0 0 260,000 CE-26-0305 2001 Onan 350 Kw Generator on Trailer 2022 0 0 0 0 0 0 115,000 0 0 0 115,000 CE-26-0374 2014 Drainage crew truck 2022 0 0 165,000 0 0 0 0 0 0 0 165,000 CE-26-0381 2016 GMC Sierra 1/2 ton 4x4 double cab Sr Eng Tech 2017 0 0 0 0 0 0 0 35,500 0 0 35,500 CE-26-0382 2016 GMC with Utility Body for Hyd Maint 2017 0 0 0 0 0 0 61,000 0 0 0 61,000 CE-26-0789 Nilfisk Advance CS7000 Floor Sweeper/ Scrubber 2017 0 0 0 0 0 0 68,000 0 0 0 68,000 CE-26-2008 2008 24' trailer with 6' ramps for Paver 2022 0 0 0 0 0 0 35,000 0 0 0 35,000 Page 7Nov 04, 2019 08:22 AM City of Plymouth Capital Improvement Plan 2020-2029 Projects by Department 57 Year Identified 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total CE-26-2038 2016 Carlson CP100 Asphalt Paver 2017 0 0 0 0 0 0 270,000 0 0 0 270,000 CE-26-2046 Pavement Melter 2020 0 0 0 0 0 0 59,000 0 0 0 59,000 CE-26-3060 Mini Excavator Case CX318 2014 2022 0 0 0 0 0 0 56,000 0 0 0 56,000 CE-26-4007 2016 Colorado, Bld inspections 2017 0 0 0 0 0 0 37,000 0 0 0 37,000 CE-26-4008 2016 Colorado Pick up--Bld inspections 2017 0 0 0 0 0 0 37,000 0 0 0 37,000 CE-26-5014 Tractor with Blower and Plow John Deere 5105M 2022 0 0 0 0 0 0 140,000 0 0 0 140,000 CE-26-5039 2016 F-350 Ford pick with plow 2017 0 0 0 0 0 0 50,000 0 0 0 50,000 CE-26-5040 F-350 Ford Pick up with plow 2017 0 0 0 0 0 0 49,500 0 0 0 49,500 CE-26-5042 JD Gator Groomer and Rake 2020 0 0 0 0 0 0 27,000 0 0 0 27,000 CE-26-5045 2017 Toro GM 7210 D Zero turn 2020 0 0 0 0 0 0 0 71,500 0 0 71,500 CE-27-0052 2015 Ford F-150 Pick Up Utility 31 2017 0 0 0 0 0 0 0 55,000 0 0 55,000 CE-27-0293 2016 Tandem Truck with Plow 2023 0 0 0 0 0 0 0 360,000 0 0 360,000 CE-27-0378 2016 T880 Kenworth Truck Tractor 2023 0 0 0 0 0 0 0 0 0 190,000 190,000 CE-27-1000 Police Cars (7)2020 0 0 0 0 0 0 0 435,000 0 0 435,000 CE-27-2053 2017 Bobcat S770 Skid Steer 2020 0 0 0 0 0 0 0 57,000 0 0 57,000 CE-27-2054 2017 Bobcat S770 Skid Steer 2020 0 0 0 0 0 0 0 57,000 0 0 57,000 CE-27-3067 2015 Low Boy Trailer Towmaster T-100DTG 2017 0 0 0 0 0 0 0 0 0 120,000 120,000 CE-27-3068 2015 Side Dup'r trailer 25 yard 2023 0 0 0 0 0 0 0 66,000 0 0 66,000 CE-27-5044 2017 Ford F-350 4x4 with plow 2017 0 0 0 0 0 0 0 49,500 0 0 49,500 CE-27-5055 2017 Isuzu Garbage Truck 2020 0 0 0 0 0 0 0 139,000 0 0 139,000 CE-28-0294 2017 Mack Tandem dump truck 2017 0 0 0 0 0 0 0 0 355,000 0 355,000 CE-28-0295 2017 Mack Tandem dump truck 2017 0 0 0 0 0 0 0 0 355,000 0 355,000 CE-28-0380 2017 Kenworth with B-10 Aquatech Jetter/Vac truck 2017 0 0 0 0 0 0 0 0 520,000 0 520,000 CE-28-1000 Police Cars (7)2020 0 0 0 0 0 0 0 0 440,000 0 440,000 CE-28-2018 Falls 12' Snowplow 10' wing 2024 0 0 0 0 0 0 0 0 56,000 0 56,000 CE-28-2019 2013 Case Wheel Loader 721F 2017 0 0 0 0 0 0 0 0 265,000 0 265,000 CE-28-2037 2016 Stepp 4 yrd hot box for asphalt with F-750 Chassis 2017 0 0 0 0 0 0 0 0 195,000 0 195,000 Page 8Nov 04, 2019 08:22 AM City of Plymouth Capital Improvement Plan 2020-2029 Projects by Department 58 Year Identified 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total CE-28-2056 Street Sweeper 2020 0 0 0 0 0 0 0 0 290,000 0 290,000 CE-28-2065 Street Sweeper 2020 0 0 0 0 0 0 0 0 290,000 0 290,000 CE-28-5023 Cat Loader 908H2 2024 0 0 0 0 0 0 0 0 149,000 0 149,000 CE-28-5058 F150 Pickup 4x4 2020 0 0 0 0 0 0 0 0 37,000 0 37,000 CE-28-6104 Vermeer Wood chipper 2020 0 0 0 0 0 0 0 0 98,000 0 98,000 CE-29-0047 2014 Explorer Fire Dept 2025 0 0 0 0 0 0 0 0 0 58,000 58,000 CE-29-2039 Ford F-450 contractor box 2017 model 2017 0 0 0 0 0 0 0 0 0 76,000 76,000 CE-29-3061 XQ 30KW Portable Generator 2025 0 0 0 0 0 0 0 0 0 36,000 36,000 CE-29-5043 2017 F-450 One ton contractor box 2017 0 0 0 0 0 0 0 0 0 86,000 86,000 CE-29-5046 Sidewalk Machine 2020 0 0 0 0 0 0 0 0 0 215,000 215,000 Total: Central Services - Central Equipment $2,016,864 $3,052,100 $1,857,646 $1,862,900 $1,652,250 $1,694,700 $2,490,000 $1,325,500 $3,050,000 $781,000 $19,782,960 Central Services - Public Facilities FM-16-0004 Lighting High Efficiency Improvements -Citywide 2016 50,000 50,000 0 0 0 0 0 0 0 0 100,000 FM-19-0002 Replace Air Makeup Unit - Public Safety Garage 2015 0 0 0 50,000 0 0 0 0 0 0 50,000 FM-19-0003 Bathroom Remodels - City Hall 2018 120,000 0 0 0 0 0 0 0 0 0 120,000 FM-19-0005 Finish HVAC Automation Controls - City Hall/Public Safety 2019 155,000 0 0 0 0 0 0 0 0 0 155,000 FM-20-00010 Replace roof - The Reserve 2020 15,000 0 0 0 0 0 0 0 0 0 15,000 FM-20-0002 Replace 3 Roof Top Units - City Hall 2016 125,000 0 0 0 0 0 0 0 0 0 125,000 FM-20-0003 Replace Used Oil Burner - Public Works 2016 30,000 0 0 0 0 0 0 0 0 0 30,000 FM-20-0005 Replace Radiant Heat -Fire Station 1 2016 30,000 0 0 0 0 0 0 0 0 0 30,000 FM-20-0006 Community Development and engineering office remodel 2018 1,300,000 0 0 0 0 0 0 0 0 0 1,300,000 FM-20-0007 Replace Radiant heat system in largest vehicle parking area at PW 2018 110,000 0 0 0 0 0 0 0 0 0 110,000 FM-20-0008 Replace 4 Downdraft Exhaust Fans at Public Works 2019 28,000 0 0 0 0 0 0 0 0 0 28,000 FM-20-0010 Remodel upper level clerical space - Public Safety 2020 45,000 0 0 0 0 0 0 0 0 0 45,000 Page 9Nov 04, 2019 08:22 AM City of Plymouth Capital Improvement Plan 2020-2029 Projects by Department 59 Year Identified 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total FM-20-0012 Remodel Maintenance Facility meeting room off vehicle storage area 2020 25,000 0 0 0 0 0 0 0 0 0 25,000 FM-20-0013 Replace concrete sidewalks - Ply Creek Center 2020 0 150,000 0 0 0 0 0 0 0 0 150,000 FM-20-0014 Replace carpet tiles - Ply Creek Center 2020 0 60,000 0 0 0 0 0 0 0 0 60,000 FM-20-0015 Replace interior lighting - Fire Station 2 2020 0 40,000 0 0 0 0 0 0 0 0 40,000 FM-20-0016 LED Retrofit Plymouth Creek Center lighting 2020 0 85,000 0 0 0 0 0 0 0 0 85,000 FM-20-0017 Replace wall and floor finishes - Ply Creek Center 2020 0 130,000 0 0 0 0 0 0 0 0 130,000 FM-20-0018 Replace ceramic tile - Fire Station 3 2020 0 40,000 0 0 0 0 0 0 0 0 40,000 FM-20-0019 Replace acoustic ceiling tiles - Plymouth Creek Center 2020 0 100,000 0 0 0 0 0 0 0 0 100,000 FM-20-0020 Replace plumbing fixtures and finishes - multiple buildings 2020 195,000 0 0 0 0 0 0 0 0 0 195,000 FM-20-0021 Replace and upgrade gutter and downspout system - Ply Creek Center 2020 30,000 0 0 0 0 0 0 0 0 0 30,000 FM-20-0022 Replace water lines - Ply Creek Center 2020 0 25,000 0 0 0 0 0 0 0 0 25,000 FM-20-0023 Replace water to air and water to water pumps - Central and Zachary Plants 2020 60,000 60,000 60,000 0 0 0 0 0 0 0 180,000 FM-20-0024 Repair or replace natural gas piping - Old Central Water Plant 2020 28,000 0 0 0 0 0 0 0 0 0 28,000 FM-20-0025 Replace exhaust fans - City Hall 2020 42,000 0 0 0 0 0 0 0 0 0 42,000 FM-20-0026 Replace 3 ton split system rooftop unit - CH Audio/Video room 2020 0 25,000 0 0 0 0 0 0 0 0 25,000 FM-20-0027 Door and Window repair/replacement - Citywide 2020 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 300,000 FM-20-0028 Replace Council Chambers, Med. Lk. room, Police training rm, Fire conf rm chairs 2020 0 65,000 0 0 0 0 0 0 0 0 65,000 FM-20-0029 Foundation, water, and structural repairs - Fire Station 2 2020 0 30,000 0 0 0 0 0 0 0 0 30,000 Page 10Nov 04, 2019 08:22 AM City of Plymouth Capital Improvement Plan 2020-2029 Projects by Department 60 Year Identified 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total FM-20-0030 Foundation, water, and structural repairs - Fire Station 3 2020 0 120,000 0 0 0 0 0 0 0 0 120,000 FM-20-0031 Repair tilt-up wall sealants - Public Works 2020 30,000 0 0 0 0 0 0 0 0 0 30,000 FM-20-0032 Column and wall repairs - Ply Creek Center 2020 0 25,000 0 0 0 0 0 0 0 0 25,000 FM-21-0001 RTU Replacement for Mechanic's Office and Sign Making Room 2017 0 30,000 0 0 0 0 0 0 0 0 30,000 FM-21-0002 Replace rubber roof - Ply Creek Center 2020 0 100,000 0 0 0 0 0 0 0 0 100,000 FM-21-0003 Replace roof - Fire Station 2 2020 0 90,000 0 0 0 0 0 0 0 0 90,000 FM-21-0004 Remodel Forester and Proj Coord. office at Public Works 2020 0 30,000 0 0 0 0 0 0 0 0 30,000 FM-21-0005 Replace ceramic tile flooring 2020 0 100,000 0 0 0 0 0 0 0 0 100,000 FM-21-0006 LED retrofit - Zachary Plant and Old Central Plant 2020 0 45,000 0 0 0 0 0 0 0 0 45,000 FM-21-0007 Replace rubber roof - City Hall 2020 0 290,000 0 0 0 0 0 0 0 0 290,000 FM-21-0008 Replace metal fencing, metal railing, benches - Ply Creek Center 2020 0 40,000 0 0 0 0 0 0 0 0 40,000 FM-21-0009 Replace air drying humidity control system - City Hall 2020 0 50,000 0 0 0 0 0 0 0 0 50,000 FM-21-0010 Replace exhaust fans - Fire Station 2 2020 0 25,000 0 0 0 0 0 0 0 0 25,000 FM-21-0011 Replace radiant heating - Fire Station 2 2020 0 0 0 0 0 0 0 30,000 0 0 30,000 FM-21-0012 Replace 10 exhaust fans - Maintenance Facility 2020 0 40,000 0 0 0 0 0 0 0 0 40,000 FM-21-0013 Bathroom remodels - Citywide 2020 0 50,000 50,000 50,000 50,000 50,000 0 0 0 0 250,000 FM-21-0014 Fire Stations Building Projects 2021 0 15,000,000 0 0 0 0 0 0 0 0 15,000,000 FM-22-0002 Replace 2 roof sections - Public works 2020 0 0 85,000 0 0 0 0 0 0 0 85,000 FM-22-0003 Replace Carpet - Public Safety 2020 0 0 110,000 0 0 0 0 0 0 0 110,000 FM-22-0004 Replace electrical service and distribution - Fire Station 2 2020 0 0 140,000 0 0 0 0 0 0 0 140,000 FM-22-0005 Replace electrical service, distribution, and branch wiring (building and site) - Fire Station 3 2020 0 0 125,000 0 0 0 0 0 0 0 125,000 Page 11Nov 04, 2019 08:22 AM City of Plymouth Capital Improvement Plan 2020-2029 Projects by Department 61 Year Identified 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total FM-22-0007 Replace exterior site lighting 2020 0 0 85,000 0 0 0 0 0 0 0 85,000 FM-22-0008 Replace water and sanitary sewer supply and waste piping - Fire Station 2 2020 0 0 180,000 0 0 0 0 0 0 0 180,000 FM-22-0009 Replace boiler pumps - Central and Zachary Water Plants 2020 0 0 70,000 0 0 0 0 0 0 0 70,000 FM-22-0010 Replace baseboard heat - Fire Station 3 2020 0 0 30,000 0 0 0 0 0 0 0 30,000 FM-22-0011 Replace elevator - Zachary Treatment plant 2020 0 0 125,000 0 0 0 0 0 0 0 125,000 FM-23-0001 Waterproof Police Garage 2019 0 0 0 55,000 0 0 0 0 0 0 55,000 FM-23-0002 Replace roof - Fire Station 3 2020 0 0 0 90,000 0 0 0 0 0 0 90,000 FM-23-0003 Replace roof - Old Water Treatment Plant 2020 0 0 0 135,000 0 0 0 0 0 0 135,000 FM-23-0004 Replace CH landscaping 2020 0 0 0 60,000 0 0 0 0 0 0 60,000 FM-23-0005 Replace telephone and security systems - Old Central Water Plant 2020 0 0 0 25,000 0 0 0 0 0 0 25,000 FM-23-0006 Replace branch wiring - Station 73 2020 0 0 0 35,000 0 0 0 0 0 0 35,000 FM-23-0007 Replace gutters and downspouts - City Hall 2020 0 0 0 42,000 0 0 0 0 0 0 42,000 FM-23-0008 Replace City Hall elevator 2020 0 0 0 330,000 0 0 0 0 0 0 330,000 FM-24-0001 Replace Kato-lite generator - City Hall 2020 0 0 0 0 80,000 0 0 0 0 0 80,000 FM-24-0002 Replace electrical service, distribution, and branch wiring - Fire Station 1 2020 0 0 0 0 65,000 0 0 0 0 0 65,000 FM-25-0001 Replace Metal roof sections - Ply Creek Center 2020 0 0 0 0 0 140,000 0 0 0 0 140,000 FM-25-0002 Replace 3 roof sections - Public Safety 2020 0 0 0 0 0 160,000 0 0 0 0 160,000 FM-25-0003 Replace roof - Fire Station 1 2020 0 0 0 0 0 75,000 0 0 0 0 75,000 FM-25-0004 Replace and repair heated concrete sidewalk - City Hall 2020 0 0 0 0 0 25,000 0 0 0 0 25,000 FM-25-0005 Replace Vinyl Flooring - City Hall 2020 0 0 0 0 0 30,000 0 0 0 0 30,000 FM-25-0006 Replace dance floor and ceramic floor finishes - Ply Creek Ctr 2020 0 0 0 0 0 110,000 0 0 0 0 110,000 Page 12Nov 04, 2019 08:22 AM City of Plymouth Capital Improvement Plan 2020-2029 Projects by Department 62 Year Identified 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total FM-25-0007 Replace Theater A/V Equipment - Ply Creek Center 2020 0 0 0 0 0 75,000 0 0 0 0 75,000 FM-25-0008 Repair Concrete Stairs - Plymouth Creek Center 2020 0 0 0 0 0 65,000 0 0 0 0 65,000 FM-25-0009 Replace plumbing finishes and fixtures - Fire Station 1 2020 0 0 0 0 0 50,000 0 0 0 0 50,000 FM-25-0010 Replace AC, AC compressors, radiant heaters - Station 73 2020 0 0 0 0 0 80,000 0 0 0 0 80,000 FM-26-0001 Replace 2 roof sections - Public Works 2020 0 0 0 0 0 600,000 0 0 0 0 600,000 FM-26-0002 Replace generator - Zachary Treatment Plant 2020 0 0 0 0 0 0 110,000 0 0 0 110,000 FM-26-0003 Replace flooring finishes - Maintenance Facility 2020 0 0 0 0 0 0 150,000 0 0 0 150,000 FM-26-0004 Replace electrical service and distribution - Old Central Water Plant 2020 0 0 0 0 0 0 100,000 0 0 0 100,000 FM-26-0005 Replace electrical service and distribution - Maintenance Facility 2020 0 0 0 0 0 0 810,000 0 0 0 810,000 FM-26-0006 Replace electrical switch gear and panel boards - City Hall 2020 0 0 0 0 0 0 225,000 0 0 0 225,000 FM-26-0007 Replace copper piping - Fire Station 1 2020 0 0 0 0 0 0 62,000 0 0 0 62,000 FM-26-0008 Replace standpipes and repair sprinkler system - Maintenance Facility 2020 0 0 0 0 0 0 108,000 0 0 0 108,000 FM-26-0009 Replace boilers - Central Water Plant 2020 0 0 0 0 0 0 400,000 0 0 0 400,000 FM-26-0010 Replace makeup air unit - Fire Station 2 2020 0 0 0 0 0 0 33,000 0 0 0 33,000 FM-26-0011 Replace makeup air unit - Fire Station 1 2020 0 0 0 0 0 0 30,000 0 0 0 30,000 FM-27-0001 Replace roof - Zachary Treatment Plant 2020 0 0 0 0 0 0 0 205,000 0 0 205,000 FM-27-0002 Replace phone, PA, and security systems - City Hall 2020 0 0 0 0 0 0 0 100,000 0 0 100,000 FM-27-0004 Replace phone, PA, fire alarm, and security systems - Fire Station 1 2020 0 0 0 0 0 0 0 50,000 0 0 50,000 FM-27-0005 Replace electrical service and distribution - Public Safety 2020 0 0 0 0 0 0 0 380,000 0 0 380,000 Page 13Nov 04, 2019 08:22 AM City of Plymouth Capital Improvement Plan 2020-2029 Projects by Department 63 Year Identified 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total FM-27-0006 Replace ceiling tiles - Maintenance Facility 2020 0 0 0 0 0 0 0 30,000 0 0 30,000 FM-27-0007 Replace vehicle storage area skylights - Public Works 2020 0 0 0 0 0 0 0 100,000 0 0 100,000 FM-27-0009 Replace ceiling tiles - Public Safety 2020 0 0 0 0 0 0 0 100,000 0 0 100,000 FM-27-0010 Replace roof drains - Maintenance Facility 2020 0 0 0 0 0 0 0 50,000 0 0 50,000 FM-27-0011 Replace radiant heaters - Fire Station 1 2020 0 0 0 0 30,000 0 0 0 0 0 30,000 FM-27-0012 Replace air ducts- Fire Station 2 2020 0 0 0 0 0 0 0 66,000 0 0 66,000 FM-27-0013 Replace exhaust fans - Fire Station 3 2020 0 0 0 0 0 0 0 30,000 0 0 30,000 FM-27-0014 Replace HVAC automation controls - Public Works 2020 0 0 0 0 0 0 0 100,000 0 0 100,000 FM-27-0015 Replace dry cooling rooftop unit - Zachary Water Plant 2020 0 0 0 0 0 0 0 30,000 0 0 30,000 FM-27-0016 Remodel CH Council Chambers, reception desk, trophy cases, decorative woodwork - City Hall 2020 0 0 0 0 0 0 0 350,000 0 0 350,000 FM-27-0017 Replace lower lvl movable walls - Ply Creek Center 2020 0 0 0 0 0 0 0 60,000 0 0 60,000 FM-28-0001 Replace electrical service, distribution, and branch wiring - Zachary Treatment Plant 2020 0 0 0 0 0 0 0 0 130,000 0 130,000 FM-28-0002 Replace electrical service and distribution - Ply Creek Center 2020 0 0 0 0 0 0 0 0 120,000 0 120,000 FM-28-0003 Replace reheat coil units - City Hall 2020 0 0 0 0 0 0 0 0 180,000 0 180,000 FM-28-0004 Replace heat only rooftop units (2) - Public Works 2020 0 0 0 0 0 0 0 0 100,000 0 100,000 FM-28-0011 Replace boilers - Ply Creek Center 2020 0 0 0 0 0 0 0 0 100,000 0 100,000 FM-29-0001 Replace roof - Central Water Plant 2020 0 0 0 0 0 0 0 0 0 160,000 160,000 FM-29-0002 Replace ceiling tiles - City Hall 2020 0 0 0 0 0 0 0 0 0 100,000 100,000 FM-29-0003 Replace wooden wall finishes - Maintenance Facility 2020 0 0 0 0 0 0 0 0 0 40,000 40,000 FM-29-0004 Replace plumbing fixtures - City Hall 2020 0 0 0 0 0 0 0 0 0 90,000 90,000 Page 14Nov 04, 2019 08:22 AM City of Plymouth Capital Improvement Plan 2020-2029 Projects by Department 64 Year Identified 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total FM-29-0005 Replace standpipes and repair sprinkler system - Station 73 2020 0 0 0 0 0 0 0 0 0 75,000 75,000 FM-29-0006 Replace water distribution and sanitary sewer piping - Public Safety 2020 0 0 0 0 0 0 0 0 0 225,000 225,000 FM-29-0007 Replace gutters and downspouts - Public Safety 2020 0 0 0 0 0 0 0 0 0 62,000 62,000 FM-29-0008 Replace thermostats and controls - Public Safety 2020 0 0 0 0 0 0 0 0 0 200,000 200,000 FM-29-0009 Replace elevator - Ply Creek Center 2020 0 0 0 0 0 0 0 0 0 200,000 200,000 FM-XX-9001 Seal Coating/Crack Sealing/Asphalt Repair 2004 50,000 50,000 50,000 50,000 0 0 0 0 0 0 200,000 FM-XX-9002 Misc. Concrete Replacement 2004 50,000 50,000 50,000 50,000 0 0 0 0 0 0 200,000 FM-XX-9003 Roof Inspections and Repairs 2014 35,000 35,000 35,000 35,000 0 0 0 0 0 0 140,000 Total: Central Services - Public Facilities $2,583,000 $17,060,000 $1,225,000 $1,037,000 $255,000 $1,490,000 $2,058,000 $1,711,000 $660,000 $1,182,000 $29,261,000 Sewer SS-16-0001 Autumn Hills Lift Station 2014 0 0 100,000 500,000 0 0 0 0 0 0 600,000 SS-20-0001 Mission Farm Lift Station Bypass 2019 350,000 0 0 0 0 0 0 0 0 0 350,000 SS-21-0001 Lancaster Lift Station Pump Replacement 2019 0 150,000 0 0 0 0 0 0 0 0 150,000 SS-23-0001 Bass Lake Lift Station Pump Replacements 2019 0 0 0 250,000 0 0 0 0 0 0 250,000 SS-XX-9001 Line Sanitary Sewer Main: Annual Program 2002 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 10,500,000 SS-XX-9002 Trunk Sewer Oversizing 2004 100,000 100,000 100,000 100,000 100,000 0 0 0 0 0 500,000 SS-XX-9003 Future Lift Station Improvements 2020 0 0 0 0 150,000 250,000 250,000 250,000 250,000 250,000 1,400,000 Total: Sewer $1,450,000 $1,250,000 $1,200,000 $1,850,000 $1,250,000 $1,350,000 $1,350,000 $1,350,000 $1,350,000 $1,350,000 $13,750,000 Street Maintenance ST-11-0010 Concrete Sidewalk Replacement 2007 50,000 100,000 75,000 75,000 100,000 100,000 100,000 150,000 150,000 150,000 1,050,000 ST-17-0003 54th Avenue from Peony Lane to CSAH 101 2016 0 0 0 0 250,000 3,000,000 0 0 0 0 3,250,000 ST-20-0001 Juneau Lane from Hampton Hills to 59th Avenue 2016 0 0 0 0 0 0 0 500,000 2,400,000 0 2,900,000 Page 15Nov 04, 2019 08:22 AM City of Plymouth Capital Improvement Plan 2020-2029 Projects by Department 65 Year Identified 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total ST-20-0002 CR 9 at TH 169 Bridge Replacement 2019 0 0 0 0 1,500,000 0 0 0 0 0 1,500,000 ST-20-0004 Peony Ln & Schmidt Lake Rd Intersection Improvements 2020 500,000 0 0 0 0 0 0 0 0 0 500,000 ST-21-0002 Ridgemount Ave Rehabilitation 2020 200,000 1,300,000 0 0 0 0 0 0 0 0 1,500,000 ST-24-0001 Hwy 55 at Vicksburg Lane Signal Replacement Project 2020 0 0 0 0 295,000 0 0 0 0 0 295,000 ST-XX-9001 Annual Street Reconstruction 2012 10,310,000 5,200,000 5,010,000 5,350,000 5,500,000 5,750,000 7,000,000 8,200,000 6,650,000 8,200,000 67,170,000 ST-XX-9002 Mill & Overlay Projects 2005 3,750,000 2,800,000 1,150,000 1,700,000 1,200,000 1,250,000 1,250,000 1,300,000 1,300,000 1,350,000 17,050,000 ST-XX-9003 Replace Retaining Walls 2005 310,000 100,000 130,000 100,000 100,000 115,000 115,000 115,000 115,000 115,000 1,315,000 ST-XX-9005 Full Depth Reclamation (FDR) Project 2019 8,860,000 5,400,000 5,050,000 3,550,000 3,900,000 3,850,000 3,200,000 3,300,000 5,400,000 4,000,000 46,510,000 ST-XX-9006 Traffic Signal Improvements 2020 0 0 0 0 50,000 300,000 50,000 50,000 0 50,000 500,000 Total: Street Maintenance $23,980,000 $14,900,000 $11,415,000 $10,775,000 $12,895,000 $14,365,000 $11,715,000 $13,615,000 $16,015,000 $13,865,000 $143,540,000 Water WA-20-0001 Xenium Lane Water Main Rehabilitation 2020 2,000,000 0 0 0 0 0 0 0 0 0 2,000,000 WA-XX-9001 Well Refurbishing 2003 280,000 300,000 300,000 300,000 300,000 300,000 325,000 325,000 325,000 325,000 3,080,000 WA-XX-9002 Trunk Watermain Oversizing 2004 220,000 220,000 220,000 220,000 100,000 100,000 100,000 0 0 0 1,180,000 WA-XX-9003 Treatment Plant Refurbishing 2019 125,000 125,000 125,000 125,000 175,000 175,000 175,000 175,000 175,000 225,000 1,600,000 WA-XX-9004 Water Storage Facility Improvements 2020 0 0 0 0 0 0 125,000 75,000 0 0 200,000 Total: Water $2,625,000 $645,000 $645,000 $645,000 $575,000 $575,000 $725,000 $575,000 $500,000 $550,000 $8,060,000 Water Resources WR-15-0003 Mount Olivet Stream Restoration 2013 75,000 325,000 0 0 0 0 0 0 0 0 400,000 WR-15-0004 Chelsea Woods Drainage - Weston Ln. to CR 6 2014 0 50,000 400,000 0 0 0 0 0 0 0 450,000 WR-16-0001 Weston Lane Storm Sewer Lift Station Rehab. 2013 0 475,000 0 0 0 0 0 0 0 0 475,000 WR-16-0002 Plymouth Creek Stream Restoration 2014 0 0 100,000 0 0 0 0 0 0 0 100,000 WR-17-0001 Wild Wings Western Wetland Improvements 2014 100,000 100,000 0 0 0 0 0 0 0 0 200,000 WR-17-0003 Harbor Place Erosion Repair 2016 200,000 0 0 0 0 0 0 0 0 0 200,000 Page 16Nov 04, 2019 08:22 AM City of Plymouth Capital Improvement Plan 2020-2029 Projects by Department 66 Year Identified 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total WR-18-0002 Mengelkochs First Addition Drainage Improvement 2016 50,000 0 0 0 0 0 0 0 0 0 50,000 WR-18-0003 Plum Tree East Drainage Improvement 2017 250,000 0 0 0 0 0 0 0 0 0 250,000 WR-18-0004 Schiebers Addition Erosion Repair 2017 150,000 0 0 0 0 0 0 0 0 0 150,000 WR-18-0007 Ivanhoe/Pleasant Hills Drainage Improvement 2018 50,000 0 0 0 0 0 0 0 0 0 50,000 WR-18-0009 Meadow Wood Drainage Improvement 2018 100,000 0 0 0 0 0 0 0 0 0 100,000 WR-18-0010 4th and Zircon Drainage Improvement 2018 50,000 0 0 0 0 0 0 0 0 0 50,000 WR-19-0001 19th Avenue/Dunkirk Lane Pond Improvement 2016 500,000 0 0 0 0 0 0 0 0 0 500,000 WR-19-0002 Parkers Lake Park Drainage Improvement 2016 0 75,000 325,000 0 0 0 0 0 0 0 400,000 WR-20-0001 Maple Creek Stream Restoration 2016 100,000 750,000 0 0 0 0 0 0 0 0 850,000 WR-20-0002 Plymouth Marketplace Drainage Improvement 2017 20,000 80,000 0 0 0 0 0 0 0 0 100,000 WR-20-0005 County Road 9/Larch Lane Drainage Improvement 2018 75,000 100,000 0 0 0 0 0 0 0 0 175,000 WR-20-0006 Courts/Fields of Nantarre Drainage Improvement 2018 20,000 100,000 0 0 0 0 0 0 0 0 120,000 WR-20-0007 Street Sweeper 2019 350,000 0 0 0 0 0 0 0 0 0 350,000 WR-20-0008 The Bass and Pomerleau Alum Treatment - Phase 2 2020 120,000 0 0 0 0 0 0 0 0 0 120,000 WR-21-0002 Palmer Creek Estates Stream Restoration 2017 0 100,000 500,000 0 0 0 0 0 0 0 600,000 WR-21-0003 Ponderosa Woods Stream Restoration 2017 0 0 0 75,000 400,000 0 0 0 0 0 475,000 WR-21-0004 Kingsview Heights Drainage Improvement 2019 0 25,000 175,000 0 0 0 0 0 0 0 200,000 WR-21-0005 Schmidt Lake Woods Drainage Improvement 2019 0 50,000 200,000 0 0 0 0 0 0 0 250,000 WR-22-0001 Bass Lake Estates 2nd Addition Stream Restoration 2019 0 0 100,000 400,000 0 0 0 0 0 0 500,000 WR-22-0002 Playfield 10 Development Stormwater Quality Improvements 2020 0 0 375,000 0 0 0 0 0 0 0 375,000 WR-XX-9001 Maintain Water Quality Ponds 2002 100,000 100,000 100,000 150,000 150,000 150,000 200,000 200,000 200,000 250,000 1,600,000 Page 17Nov 04, 2019 08:22 AM City of Plymouth Capital Improvement Plan 2020-2029 Projects by Department 67 Year Identified 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total WR-XX-9002 Unspecified Drainage Improvement 2004 0 75,000 75,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 1,550,000 WR-XX-9003 BCWMC Water Quality, Channel, and Basin Improvements 2020 0 0 0 0 0 75,000 400,000 75,000 400,000 75,000 1,025,000 WR-XX-9004 Future Water Quality Improvement Projects 2020 0 0 0 0 0 1,000,000 1,000,000 1,250,000 1,250,000 1,250,000 5,750,000 Total: Water Resources $2,310,000 $2,405,000 $2,350,000 $825,000 $750,000 $1,425,000 $1,800,000 $1,725,000 $2,050,000 $1,775,000 $17,415,000 TOTAL: PUBLIC WORKS $34,964,864 $39,312,100 $18,692,646 $16,994,900 $17,377,250 $20,899,700 $20,138,000 $20,301,500 $23,625,000 $19,503,000 $231,808,960 GRAND TOTAL $92,093,880 $48,673,116 $21,601,662 $19,960,916 $21,482,250 $23,619,700 $22,713,000 $23,891,500 $25,975,000 $23,223,000 $323,234,024 Page 18Nov 04, 2019 08:22 AM City of Plymouth Capital Improvement Plan 2020-2029 Projects by Department 68 City of Plymouth Facility Needs Assessment “Page content is subject to Confidentiality Restrictions” City of Plymouth Facility Needs Assessment Ameresco Asset Sustainability Group October 10, 2019 1 69 City of Plymouth Facility Needs Assessment “Page content is subject to Confidentiality Restrictions” City of Plymouth Facility Needs Assessment Ameresco Asset Sustainability Group October 10, 2019 2 TABLE OF CONTENTS Introduction ................................................................................................ 3 Methodology ............................................................................................... 4 Summary of Findings ................................................................................ 5 Detailed Findings ....................................................................................... 6 Facility Age ............................................................................................................... 6 Life Cycle Projections ............................................................................................ 7 Funding ..................................................................................................................... 8 How much funding is required? ........................................................................................ 8 Facility Condition Index ................................................................................................... 10 Sustainability Target .......................................................................................................... 12 Capital Creation Strategies ................................................................................... 13 Recommendations ...................................................................................15 Appendix A: Decision Development FrameworkTM ..........................18 70 City of Plymouth Facility Needs Assessment “Page content is subject to Confidentiality Restrictions” City of Plymouth Facility Needs Assessment Ameresco Asset Sustainability Group October 10, 2019 3 Introduction The need for adequate “Facility Renewal Funding” for the City of Plymouth portfolio has become a significant issue with facilities leadership and the cities financial stakeholders. Assets are becoming more expensive to maintain as they age, and the risk of failure increases as building systems near their “end of life”. The quality and overall condition of the assets is directly impacted by the level of funding for maintenance and building renewal. The City of Plymouth engaged Ameresco to provide services for Capital Planning and Asset Management and to deliver the following: • A Decision Development Framework™ used to capture multiple streams of criteria that aid in effective decision making and risk mitigation to manage the deferred maintenance backlog, aging infrastructure and capital projects: o Quantify Unfunded Liability – graphical presentation of each asset based on Ameresco’s life cycle profiles (for each building, site and portfolio); o Establish the Facility Condition Index (FCI) profile for each asset based on Ameresco’s life cycle profiles (for each building, site and portfolio) to evaluate overall building risk and continued asset sustainability; o Establish an Asset Sustainability Target to measure funding appropriation levels based on prescribed risk tolerance; • Establish Life Cycle Profiles for major building components and systems (incorporating both short term [5 Year] and long term [30 Year] planning renewal and life cycle data as well as current information (existing condition assessments, capital plans, relevant maintenance information, etc.) and phone-based interviews (which we refer to as Asset Reviews); • Subscription to AssetPlanner™ and AuditPlanner™ to maintain and update a real time capital planning dataset; • Present an Executive Summary of the life cycle and Asset Sustainability Planning review findings; • Funding Appropriation will be benchmarked based on typical industry findings providing the City of Plymouth with a high-level view of possible Financial Strategies to reduce unfunded liability and mitigate overall building risk; and • Development of a Capital Plan – incorporating multiple streams of criteria. Ameresco will aid with the development of executive reports and presentations to convey the optimal funding appropriation strategy including the leveraging concept around Capital Creation StrategiesTM. 71 City of Plymouth Facility Needs Assessment “Page content is subject to Confidentiality Restrictions” City of Plymouth Facility Needs Assessment Ameresco Asset Sustainability Group October 10, 2019 4 Methodology Working with the staff of the City of Plymouth, Ameresco followed a series of steps designed to efficiently establish life cycle profiles, quantify unfunded liability, and benchmark building performance while measuring the effectiveness of capital spend by establishing FCI profiles. The analysis covered a total of 403,245 square feet and consisted of 12 buildings. As shown in Figure 1 below, the portfolio is represented by colored pins which show the FCI range the facility is currently in. Figure 1: Representative Map showing City of Plymouth facilities Figure 2 highlights our approach, which begins with a data development process that created life cycle cost profiles for each asset utilizing the modeling capabilities of our AssetPlannerTM software. Figure 2: Ameresco Data Development process – a unique and leading practice 72 City of Plymouth Facility Needs Assessment “Page content is subject to Confidentiality Restrictions” City of Plymouth Facility Needs Assessment Ameresco Asset Sustainability Group October 10, 2019 5 Utilizing some basic asset details provided by the City of Plymouth’s staff (i.e. building age, number of floors, building type), Ameresco developed life cycle cost models for each building. The models contain a listing of building component inventory based on the various asset “types” and established order of magnitude replacement costs and renewal timelines for each major building system and component. Each model includes architectural, mechanical, and electrical components and systems as well as site elements. Ameresco worked with City of Plymouth staff to refine and set the predictive life cycle modeling costs and timelines. Ameresco then validated and improved the models by incorporating other data for each asset that was provided by the City of Plymouth, and interviewed staff that were knowledgeable about the condition of the facilities. This data included component replacement years, modernization details, and current deficiencies. Ameresco also reviewed cost assumptions with the City of Plymouth aligning recent capital project cost experience. Once the needs were captured, Ameresco performed a high-level quality assurance/quality control check and generated a capital forecast from the final data set. Ameresco then incorporated funding assumptions to compare expected funding dollars with anticipated capital needs. Funding models were then developed to quantify the amount of funding to ensure long term preservation and sustainability of the assets. The models addressed: • Building component renewal needs based on preliminary assessment of condition and life cycle data; • How capital needs will grow in both the short and long term as the buildings continue to age; • Graphical representation of the Unfunded Liability and risk-based Asset Sustainability Target; • Building performance using industry standard metrics including Facility Condition Index (FCI) to evaluate overall building risk and continued asset sustainability. Summary of Findings The present level of the deferred maintenance backlog and facility renewal for the City of Plymouth’s portfolio is estimated to be $3.0 million. The replacement value of assets is approximately $126 million based on cost per square foot analysis projections (in current year dollars). Using these two numbers, we find that the portfolio is in “Good” condition overall today based on industry standards. As capital needs continue to increase, we expect the portfolio to migrate to the “Poor” range by 2029 based on the results of our Data Development process. This is based on an estimate of $1.0 million of capital funding dollars per annum for deferred maintenance and capital renewal. To maintain the portfolio in the “Fair” range, the University will need to invest approximately $1.5 million each year in capital renewal. Capital Creation StrategiesTM may be considered to help solve this funding challenge and mitigate building risk (FCI). By leveraging a series of alternative funding strategies, including energy efficiency and renewable energy solutions, and intersecting with life cycle renewal needs, a significant impact can be realized which helps reduce the funding gap and future need for Capital dollars. The main benefits of leveraging Capital Creation StrategiesTM include: 73 City of Plymouth Facility Needs Assessment “Page content is subject to Confidentiality Restrictions” City of Plymouth Facility Needs Assessment Ameresco Asset Sustainability Group October 10, 2019 6 • Upfront capital funding to reduce deferred maintenance backlog & associated FCI; • Extension to useful life for the entire portfolio; • Enhancement of the Quality of Community and Living. Detailed Findings Facility Age Various sources of funding are required to build, maintain, and operate a facility and assets during its life: • Capital funding to construct it; • Renewal funding for replacement of worn out components; • Maintenance funding for repairs, up-keep and preservation of capital investments; • Redevelopment and accommodation funding to offset the effects of code changes and required functional modifications. The City of Plymouth portfolio has a weighted average age of 28 years, as shown in Figure 3 below. As facilities age, they require increased maintenance and upkeep. The overall condition of the facilities is directly attributable to the level of funding required for maintenance and building renewal. Figure 3: Age Profile – Total Portfolio Average Facility Age: 28 years (1990) Total Facility Size: 403,245 SF 74 City of Plymouth Facility Needs Assessment “Page content is subject to Confidentiality Restrictions” City of Plymouth Facility Needs Assessment Ameresco Asset Sustainability Group October 10, 2019 7 Life Cycle Projections Different building components will undergo replacement at various times during the life of a facility. If one assumes a building lasts 100 years, some components, such as a roof, will require numerous cyclical replacements. Each component has a unique life cycle that may be altered depending on the type and level of maintenance adopted. Based on preliminary estimates of life cycle timing and costs, the present level of “Deferred Maintenance Backlog” is estimated at $3.0 million prior to any funding as shown in Figure 4 below. Life cycle renewal costs for the major building components have been established for each building to determine the Capital Renewal budget requirements over the next 30 years. Figure 4: Current Deferred Backlog and 30-year Renewal Cost – Total Portfolio 75 City of Plymouth Facility Needs Assessment “Page content is subject to Confidentiality Restrictions” City of Plymouth Facility Needs Assessment Ameresco Asset Sustainability Group October 10, 2019 8 Funding How much funding is required? Many guidelines for facility renewal have been established by reputable professional organizations and asset management specialists. One states, “It has become clear that institutions have failed in the stewardship of their facilities assets. Erosion of its buildings and supporting infrastructure undermines every aspect of an institution’s ability to function effectively. To restore those facilities .... Massive increases in the amount now spent on repair and renovation will be necessary”1. The American Public Works Association (APWA)2 has published maintenance and repair guidelines for facilities. As a minimum, between 0.5% to 1% of the current replacement value of those facilities is required to adequately maintain them. For the City of Plymouth’s assets, this would suggest a capital renewal reinvestment between $630,000 and $1.26 million per year based on a current replacement value of approximately $126 million. Another set of guidelines for funding of assets is based on facility subsystem life cycle evaluations (stipulated as follows): • (1.5% to 2.5%) of the replacement value is required for sufficient “Capital Renewal” on an ongoing basis to keep the facilities in good condition for their present use; • PLUS (0.5% to 1.5%) of the replacement value is required to sufficiently address “Plant Adaptation” funds on an ongoing basis to alter the facilities for changes in use as well as codes and standards; • PLUS, sufficient “Catch-up Maintenance” funds over a short period to bring the facilities to a reliable operating condition by offsetting the effects of deferred maintenance. Both the previously mentioned reports concur that 2% of the current replacement value should be allocated to annual renewal, assuming proper preventative maintenance practices are adhered to. In addition, special funds should be allocated to reduce the backlog of deferred maintenance for those facilities with an abnormally high backlog. Excluding special funds, the renewal funding for City of Plymouth would translate to $2.5 million annually. 1 Financial Planning Guidelines for Facility Renewal and Adaptation. A joint project by SCUP (The Society for College and University Planning), NACUBO (The National Association of College and University Business Officers) APPA (The Association of Physical Plan Administrators of Universities and Colleges) and Coopers and Lybrand. 2 Committing to the Cost of Ownership, Maintenance and Repair of Public Buildings Building Research Board, National Research Council, American Public Works Association - Special Report #60 76 City of Plymouth Facility Needs Assessment “Page content is subject to Confidentiality Restrictions” City of Plymouth Facility Needs Assessment Ameresco Asset Sustainability Group October 10, 2019 9 Figure 5 below provides a graphical outline of the cumulative renewal costs. The total liability (light blue) over the next 30 years is approximately $58 million. Figure 5: 30-year Cumulative Needs Profile showing Total Liability Presently, we estimate the average funding for City of Plymouth facilities, allocated to deferred maintenance and capital renewal, to be $1.0 million per year (excluding operational improvements). Figure 6 below provides a graphical representation of the growing Unfunded Liability over a 30-year period (without inflationary adjustments or escalations). The top line represents the total liability and total cumulative capital renewal needs for the portfolio. The purple represents the impact that an annual investment of $1.0 million per year would have on the current portfolio. The light blue area represents the Unfunded Liability gap that requires additional investment and alternative funding strategies. This Unfunded Liability for the City of Plymouth portfolio grows from $3.0 million (2018) to $29.5 million (2047). 77 City of Plymouth Facility Needs Assessment “Page content is subject to Confidentiality Restrictions” City of Plymouth Facility Needs Assessment Ameresco Asset Sustainability Group October 10, 2019 10 Figure 6: 30-year Cumulative Needs Profile showing Unfunded Liability The liability figures represent the findings and results obtained from the life cycle renewal cost analysis. Some dramatic adjustments must be considered to obtain control of the rapidly growing capital needs projected for the future. Facility Condition Index The term Facility Condition Index (or FCI) is “a ratio of the cost of remedying capital deficiencies listed in the deferred maintenance backlog to the current replacement value (CRV)”. The formula used for determining the FCI for a facility, or a component of the facility, is as follows: 𝐅𝐅.𝐂𝐂.𝐈𝐈.=𝐕𝐕𝐋𝐋𝐋𝐋𝐋𝐋𝐋𝐋𝐑𝐑𝐋𝐋𝐑𝐑 𝐋𝐋𝐋𝐋𝐔𝐔𝐔𝐔𝐋𝐋𝐔𝐔𝐋𝐋𝐔𝐔𝐋𝐋 ($)𝐂𝐂𝐋𝐋𝐂𝐂𝐂𝐂𝐋𝐋𝐋𝐋𝐔𝐔 𝐑𝐑𝐋𝐋𝐑𝐑𝐔𝐔𝐔𝐔𝐔𝐔𝐋𝐋𝐑𝐑𝐋𝐋𝐋𝐋𝐔𝐔 𝐔𝐔𝐔𝐔𝐔𝐔𝐋𝐋𝐋𝐋 ($) Where the “Unfunded liability” represents the sum value of all capital deficiencies and renewal costs (at any given point in time) less the funding applied to the asset(s) for capital renewal. “Current Replacement Value” is defined as the total amount of expenditure in current dollars that would be required to replace the institution's facilities to its optimal condition. The FCI provides a consistent measurement of condition for a single building, group of buildings, or a total portfolio. FCI is used by the U.S. Government Accounting Standards Board (GASB) as standard practice for Facility Condition Assessments (FCA) and Building Evaluation Reports (BER) for federal facilities. The FCI is calculated and represented by various benchmark & color-coded indicators as follows: 78 City of Plymouth Facility Needs Assessment “Page content is subject to Confidentiality Restrictions” City of Plymouth Facility Needs Assessment Ameresco Asset Sustainability Group October 10, 2019 11 • A “Good” FCI rating is achieved when the unfunded liability for the asset(s) is less than 5% of the current asset(s) replacement value (green), • A “Fair” FCI rating is achieved when the unfunded liability for the asset(s) is between 5% and 10% of the current asset(s) replacement value (yellow), • A “Poor” FCI rating is achieved when the unfunded liability for the asset(s) is between 10% and 30% of the current asset(s) replacement value (orange); • A “Critical” FCI rating is achieved when the unfunded liability for the asset(s) is greater than 30% of the current asset(s) replacement value (red), As an FCI rating increases, facilities will experience: • Increased failure risk to components • Increased maintenance and operating costs of facilities • Negative impacts on building occupants Figure 7 illustrates that the City of Plymouth’s portfolio has an FCI of 2.4% in 2018, which places the assets in the “Good” range based on its current FCI rating. Based on current funding of $1.0 million per year, the FCI migrates to the “Poor” range in 2029 as many significant components come due. The life cycle modelling show that the current average annual funding level for facility renewal and deferred maintenance is inadequate for the short and long-term preservation of City of Plymouth’s buildings. Figure 7: FCI (with funding) for all City of Plymouth facilities 79 City of Plymouth Facility Needs Assessment “Page content is subject to Confidentiality Restrictions” City of Plymouth Facility Needs Assessment Ameresco Asset Sustainability Group October 10, 2019 12 Figure 8 illustrates the FCI migration of some of the City of Plymouth facilities, over a 30-year period. Within the next 10 years, the majority of assets will migrate to the “Poor” range if left unfunded. Based on the current average annual funding levels, the entire portfolio average will migrate to Poor by 2029. Figure 8: 30-year FCI Migration Chart for City of Plymouth Sustainability Target It is recommended that the City of Plymouth establish an “Asset Sustainability Target” for funding using the FCI metric. Many organizations have begun using 10%, or lower, as an appropriate FCI level for their portfolios, stating that it is acceptable to carry a deferred backlog of up to 10% of the replacement value of the asset. If the deferred backlog can remain at less than 10%, then the assets will be continually “sustained” at an acceptable level of risk preserving the initial capital investment and minimizing impacts to end users and staff. This Asset Sustainability Target compared to the Unfunded Liability is shown in Figure 9. Figure 9: Unfunded Liability with Sustainability Target 80 City of Plymouth Facility Needs Assessment “Page content is subject to Confidentiality Restrictions” City of Plymouth Facility Needs Assessment Ameresco Asset Sustainability Group October 10, 2019 13 The Asset Sustainability Target funding levels are also illustrated in Figure 10. Based on the projected future funding level a Facilities Condition Index (FCI) is calculated. To maintain the facilities in a “Fair” state of repair (based on a 10% FCI rating), approximately $1.5 million will need to be applied annually for the next 30 years (in today’s dollars – non-inflated / not escalated). Figure 10: FCI and Funding Required to maintain City of Plymouth Assets These levels of funding for capital and repair will ensure the building stock will be maintained at an acceptable level of risk preserving the initial capital investment. If the level of facility renewal funding is reduced, the exposure to risk will increase and the probability of premium renewal expenditures will increase. However, at current funding levels, a funding gap of $0.57 million per year exists and will need to be addressed to achieve Asset Sustainability. Capital Creation Strategies To solve this funding challenge and mitigate building risk (FCI), a significant amount of capital is required to support future year renewal needs. In addition, Capital Creation StrategiesTM may be considered to help fill the funding gap by leveraging a series of alternative funding strategies including enhanced maintenance management, asset optimization, energy performance and procurement, renewable solutions, tax leveraging and depreciation strategies, real estate strategies, etc. Intersecting Capital Creation Strategies™ with life cycle renewal needs can represent a significant impact and reduce the funding gap and future need for Capital dollars. A unique opportunity to leverage funding and create capital exists where building systems have reached the end of their useful life and many of these same systems are energy and operationally inefficient. For the entire portfolio, the City of Plymouth has a unique opportunity to capture the benefits of intersecting life cycle needs and associated operating savings. 81 City of Plymouth Facility Needs Assessment “Page content is subject to Confidentiality Restrictions” City of Plymouth Facility Needs Assessment Ameresco Asset Sustainability Group October 10, 2019 14 To highlight the effect of leveraging Capital Creation StrategiesTM (using benchmarking only), Ameresco has conservatively estimated an Energy Performance Contract of $0.15 million (representing only one Capital Creation Strategy). The impact of this investment on the entire portfolio is illustrated in Figure 11 below, with the funding gap (i.e. the difference between the unfunded liability and asset sustainability target), reduced to $0.42 million. Figure 11: Unfunded Liability Reduction to City of Plymouth due to Capital Creation Strategies Additional Capital Creation StrategiesTM should be explored in detail to help solve this funding challenge and reduce the funding gap. These strategies could include the following: • Real estate strategies – Purchase, Sale, Leasing • Energy conservation strategies (i.e. ESPC, Street Lighting, CHP) • Renewable solutions (i.e. Solar, Microgrids,) • Maintenance optimization strategies • Asset redevelopment strategies • Community partnership strategies Following on from the benchmarked example above, the Energy Performance based Capital Creation Strategy improves the condition of the facilities by providing an alternative funding source thereby reducing the Unfunded Liability and improving the corresponding FCI rating, as shown in Figure 12. The additional annual funding from the Capital Creation Strategy helps extend the useful life of the portfolio, delaying the migration of the FCI to the “Poor” range until 2035. This represents a 6-year extension to useful life for significant components that make up the assets and facilities. 82 City of Plymouth Facility Needs Assessment “Page content is subject to Confidentiality Restrictions” City of Plymouth Facility Needs Assessment Ameresco Asset Sustainability Group October 10, 2019 15 Figure 12: Extension to useful service life of portfolio due to Capital Creation Strategies Recommendations The development of an “Asset Sustainability” plan is an important step when it comes to preservation of vital building assets and the portfolio. As facilities continue to age, it is important to: • Maintain their condition in a good state of repair; • Mitigate risk and reduce liability; • Apply Funding Appropriation policies to manage the long-term preservation of the portfolio; and • Establish Capital Creation StrategiesTM to further reduce liability and leverage funds resourcefully. To preserve the assets and maintain a healthy “Asset Sustainability” level, a few key recommendations are presented herein for consideration: 1. Establish and Maintain an FCI Target An Asset Sustainability Target should be established and maintained to ensure the condition of the facilities and preserve the alignment to the portfolio investment strategy. A 10% FCI (“Fair” FCI range) is recommended to achieve these goals and minimize risk. 83 City of Plymouth Facility Needs Assessment “Page content is subject to Confidentiality Restrictions” City of Plymouth Facility Needs Assessment Ameresco Asset Sustainability Group October 10, 2019 16 2. Apply an Adequate Annual Funding Level to Maintain the FCI Target To maintain the facilities in a “Fair” state of repair (based on 10% FCI rating), the City of Plymouth portfolio will require approximately $1.5 million per year. This higher level of funding for capital and repair will ensure the building stock will be maintained at an acceptable level of risk preserving the initial capital investment. If the level of facility renewal funding is reduced, the exposure to risk will increase and the probability of premium renewal expenditures will increase. An increase in the amount of capital funding will need to be considered along with solutions that create further operational savings ensuring the savings are re-applied to capital renewal and deferred maintenance projects (referred to herein as “Capital Creation Strategies”. Additional process planning strategies can also be applied to further increase the effectiveness of the Capital Planning Process. 3. Enhance the Capital Planning Process and apply the Decision Development FrameworkTM Enhancing existing capital renewal planning strategies and methods should also be considered to further increase the effectiveness of the Capital Planning Process. The strategies should include a business process map that lays out best practices related to maintaining and sustaining assets including the establishment and measurement of: metrics and targets; funding appropriation policies; and internal business procedures that map to best practices associated with the prioritization, approval, and management of capital investments. The data that currently resides in AssetPlanner™ (a robust capital planning software system that houses the life cycle data and important decision-making criteria and measurements for those assets considered part of this assignment) can be used to enhance Decision Making and allow for dynamic data management. 4. Execute Capital Creation Strategies to help offset the need for future capital investments Once a comprehensive long-term Capital plan has been created, it is possible to integrate this capital planning data with operational data to create alternative funding options referred to as Capital Creation Strategies. These creative solutions can be explored to uncover operational savings which can be re-applied to capital renewal and deferred maintenance projects. We recommend a follow on engagement with Ameresco to review the following opportunities: • Energy conservation strategies (i.e. Energy Conservation, Street Lighting, CHP); • Renewable solutions (i.e. Solar, Microgrids,etc.); • Maintenance optimization strategies; • Asset redevelopment strategies; • Real estate strategies – Purchase, Sale, Leasing; • Community partnership strategies. 84 City of Plymouth Facility Needs Assessment “Page content is subject to Confidentiality Restrictions” City of Plymouth Facility Needs Assessment Ameresco Asset Sustainability Group October 10, 2019 17 5. Establish Executive Dashboards Communication of success is sometimes overlooked due to busy schedules. Establishment of “graphical” Executive Level dashboards are an effective way to highlight the on-going progress that is made by implementing an “Asset Sustainability” plan and framework. Use of graphical tools and dashboards will visually assist in maintaining sustainable assets. A quick win would be to utilize the reports and dashboards available within AssetPlanner™, as shown below in Figure 13, including our mobile reporting tool, eDashboard™. Figure 13: Representative Dashboard for City of Plymouth 85 City of Plymouth Facility Needs Assessment “Page content is subject to Confidentiality Restrictions” City of Plymouth Facility Needs Assessment Ameresco Asset Sustainability Group October 10, 2019 18 Appendix A: Decision Development FrameworkTM A Decision Development FrameworkTM is used to capture multiple streams of criteria that aid in effective decision making. For example, Physical Criteria (FCI, Unfunded liability) and Financial Criteria (CapEx, OpEx) and Environmental Criteria (carbon footprint, conservation, etc.) can be blended together. Multiple criteria are used to enhance the decision-making process through various methods, including impact analysis utilizing AssetPlannerTM. A Decision Development FrameworkTM allows you to make informed, optimized and data-driven decisions. The steps for establishing and utilizing a Decision Development FrameworkTM include: • Establish the Criteria; • Gather (and maintain) the data for the criteria; and • Conduct analysis using data-driven criteria; and • Make informed, optimized decisions We are proposing the below criteria as an initial Decision Development FrameworkTM for City of Plymouth, based on the data we have collected to date for this engagement. In fact, our analysis of the proposed Capital Creation StrategiesTM included in this report utilizes both AssetPlannerTM and the Decision Development FrameworkTM. 86 EXECUTIVE SUMMARY CITY OF PLYMOUTH, MINNESOTA | NOVEMBER 6, 2018 Your Trusted Sustainability Partner. 87 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary AGENDA 2 TOPIC TIMING PROJECT BACKGROUND 5 MINS FINDINGS & OUTCOMES 20 MINS ASSET SUSTAINABILITY TARGET 15 MINS CAPITAL CREATION STRATEGIES 10 MINS DISCUSSION OF NEXT STEPS 10 MINS 88 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary •LLC wholly-owned by Ameresco (NYSE:AMRC) •AssetPlanner™: in house, 21,500 users, CMMS and Capital Planning •Expertise in Strategic Capital Planning, Life Cycle Assessments, Facility Condition Assessments, Facility Renewal Management, Capital Creation Strategies, Communications and Business Cases •Proprietary technology to streamline data gathering, analysis, usage and reporting •Database of 3.2 billion feet2 of assessment findings in 74,000+buildings •Sample recent clients: City of Saint Paul, City of Vancouver, City of Bend (OR), City of Mankato, City of Wichita, Minneapolis Public Housing Authority, etc. Ameresco Asset Sustainability Group 89 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary KEY DELIVERABLES 4 •Create Life Cycle Profiles for major building components and systems; Quantify Renewal Needs •Forecast how capital needs will grow in both the short and long term (5-year & 30-year plan) as the buildings continue to age; Multi-Year Capital Plan •Calculate building performance using industry standard metrics to evaluate overall building risk and continued asset sustainability; Evaluate Building Performance •Develop Cost by Discipline, Unfunded Liability, & Facility Condition Index (FCI) profiles for the portfolio;Risk Mitigation •Introduce Asset Sustainability targets to demonstrate funding required to enhance the Quality of Community & LivingAsset Sustainability •Benchmark Capital Creation Strategies and illustrate their impact on the portfolio in terms of building performance and risk. Capital Creation Strategies 90 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary . 5 Capital Budgets constrained / growing Maintenance Backlog Escalating Operating Costs Institutional Knowledge Transfer Changing functional demands Aging Infrastructure Inadequate service levels Holistic Prioritization Process Common Challenges 91 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary Facilities’ Life Cycles Years 10-15 Years 20-25 Years 30-35 Years 40-45 Interior Painting, Kitchens, Bathrooms DHW Heaters 35% of Building Replacement Value 65% of Building Replacement Value Roofing HVAC Plumbing BLDG Envelope 92 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary DECISION DEVELOPMENT FRAMEWORK 7 TECHNOLOGY TYPE: ENERGY EFFICIENCY ENERGY MANAGEMENT PHOTOVOLTAIC SYSEM RENEWABLE ENERGY FACILITY SIZE: 2,864,730 SQ FT (47 BUILDINGS) ESPC ENERGY PROJECT SIZE: $21.1 MILLION PV CAPACITY: 1.8 MEGAWATTS $1,522,629 ESPC ANNUAL ENERGY SAVINGS Physical Asset Criteria •Building Condition Needs •Unfunded Liability •FCI Utilization Criteria •Facility utilization •Accommodation planning •Functional Index •Own vs. lease Real Estate Criteria •Asset Valuation •Land Valuation Environmental Criteria •Carbon Footprint •Energy Conservation •Renewable Solutions Financial Criteria •Capital Costs •Operating Costs •Capital Creation Strategies •Incentives Tools Processes & Policies 93 FINDINGS 94 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary ASG AssetPlannerTM Approach 9 Disparate data: Excel Spreadsheets PDF’s Institutional Knowledge Drawings / Schedules Basic Asset Details: Age Size No. of floors Functional use Site Address Template Validation: Incorporation of detailed datasets Knowledge Transfer On-Site Condition Assessments Life Cycle Cost “Templates” Life Cycle “Profile” Benefits: •Rapid data development process •Institutional Knowledge transfer •Single data repository •Dynamic dashboards for entire portfolio Single Data Repository 95 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary AGE PROFILE BY DECADE 10 Buildings are more expensive to maintain as they age, and the risk of failure increases as building systems near their “end of life.” Average Facility Age: 28 years (1990) Total Facility Size: 403,245 SF* Not included in condition assessment: Hilde Performance Center, Ice Arena, Plymouth Towne Square, Township Hall, Vicksburg Commons 96 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary AGE PROFILE BY CURRENT REPLACEMENT VALUE 11 Total Replace Value: $126,050,260 97 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary CAPITAL NEEDS BY DISCIPLINE 12 Life cycle renewal costs for the major building elements have been established for each building to determine the Capital Renewal budget requirements over the next 30 years. 2018 Deferred Backlog: $3.0M $0.96M average annual funding 98 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary PROJECTED TOTAL LIABILITY 13 Total Liability The total liability represents the cumulative renewal needs of the portfolio based on the findings and results obtained from the life cycle renewal cost analysis. 2018 Liability: $3.0M (Deferred Backlog) 2047 Liability: $58.4M 99 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary PROJECTED UNFUNDED LIABILITY Cumulative lifecycle renewal costs (top line) and the average annual capital funding allocation (purple area) of $0.96M per year. 14 2047 Unfunded Liability: $29.5M Average Annual Funding: $0.96M Unfunded Liability 100 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary FACILITY CONDITION INDEX (FCI) Industry standard index used to track condition performance of facilities and portfolios 15 FCI =Renewal and Repair Costs Replacement Cost GOOD Range: FCI (0% -5%) FAIR Range: FCI (5% -10%) POOR Range: FCI (10%-30%) CRITICAL Range: FCI (> 30%) Sustainability Target Sustainability Target 101 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary FACILITY CONDITION INDEX -UNFUNDED 16 The portfolio has a 2018 FCI of 2.4%, placing the facilities in the “Good” range. Without funding, the FCI would migrate to “Poor” by 2023 2018 FCI: 2.4% (Good) FCI migrates to “Critical” (30%): 2037 FCI migrates to “Poor” (10%): 2023 FCI without funding 102 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary FACILITY CONDITION INDEX -FUNDED 17 Overlaying the City’s average annual capital funding of $0.96M delays the migration of the portfolio to the “Poor” range to 2029 Average Annual Funding: $0.96M per yearWith funding, FCI migrates to Poor by 2029 103 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary ASSET SUSTAINABILITY TARGET 18 Establishing an Asset Sustainability Target of 10% (Fair)will “sustain” the assets at an acceptable level of risk. This will require $1.53M annual funding over the next 30 years,an extra $0.57M per year With funding, FCI migrates to Poor by 2029 Sustainability Target $0.57M per year additional funding required to achieve target $0.96M per year Average Annual Funding: $0.96M per year 104 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary RISK MIGRATION: FCI FORECASTING 19 Facility Name Year 1 FCI Year 5 FCI Year 10 FCI Year 15 FCI Year 20 FCI Year 25 FCI Year 30 FCI Central Treatment Plant -New 1.90%2.56%15.54%24.92%30.54%37.44%44.90% Central Treatment Plant -Old 1.53%8.00%14.30%15.49%16.42%17.32%21.96% City Hall 2.92%13.36%19.13%33.54%35.38%38.61%53.43% County Road 73 Transit Station 0.08%0.92%3.72%17.28%22.61%25.40%42.03% Fire Station #1 0.28%1.13%31.25%43.34%48.89%58.14%70.47% Fire Station #2 5.91%22.98%32.49%40.62%46.90%55.80%66.64% Fire Station #3 10.56%16.63%27.86%40.22%55.87%72.55%75.50% Maintenance Facility 0.51%3.15%8.76%12.56%17.52%25.09%26.83% Plymouth Creek Center 5.97%15.70%30.45%45.27%51.10%60.89%73.71% Public Safety Building 1.76%3.37%16.63%38.27%44.17%45.59%48.50% Reserve Transit Station 5.94%26.43%36.85%52.26%101.62%109.57%140.14% Treatment Plant #2 1.06%8.40%21.14%25.32%31.43%43.01%47.37% 105 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary CAPITAL NEEDS BY PRIORITY 20 Life cycle renewal costs for the major building elements have been filtered by priority for each building to help influence strategic Capital Investment over the next 30 years. 2018 High or Urgent: $2.15M (71.7%) 106 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary FACILITIES DEPARTMENT 21 2018 Deferred Backlog: $1.36M Facility Name Year 1 FCI Year 5 FCI Year 10 FCI Year 15 FCI Year 20 FCI Year 25 FCI Year 30 FCI City Hall 2.92%13.36%19.13%33.54%35.38%38.61%53.43% Plymouth Creek Center 5.97%15.70%30.45%45.27%51.10%60.89%73.71% Public Safety Building 1.76%3.37%16.63%38.27%44.17%45.59%48.50% 107 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary PUBLIC WORKS DEPARTMENT 22 2018 Deferred Backlog: $0.85M Facility Name Year 1 FCI Year 5 FCI Year 10 FCI Year 15 FCI Year 20 FCI Year 25 FCI Year 30 FCI Central Treatment Plant -New 1.90%2.56%15.54%24.92%30.54%37.44%44.90% Central Treatment Plant -Old 1.53%8.00%14.30%15.49%16.42%17.32%21.96% Maintenance Facility 0.51%3.15%8.76%12.56%17.52%25.09%26.83% Treatment Plant #2 1.06%8.40%21.14%25.32%31.43%43.01%47.37%108 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary TRANSIT DEPARTMENT 23 2018 Deferred Backlog: $0.01M Facility Name Year 1 FCI Year 5 FCI Year 10 FCI Year 15 FCI Year 20 FCI Year 25 FCI Year 30 FCI County Road 73 Transit Station 0.08%0.92%3.72%17.28%22.61%25.40%42.03% Reserve Transit Station 5.94%26.43%36.85%52.26%101.62%109.57%140.14% 109 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary FIRE DEPARTMENT 24 2018 Deferred Backlog: $0.78M Facility Name Year 1 FCI Year 5 FCI Year 10 FCI Year 15 FCI Year 20 FCI Year 25 FCI Year 30 FCI Fire Station #1 0.28%1.13%31.25%43.34%48.89%58.14%70.47% Fire Station #2 5.91%22.98%32.49%40.62%46.90%55.80%66.64% Fire Station #3 10.56%16.63%27.86%40.22%55.87%72.55%75.50% 110 Fire Stations Assessed l © 2018 Ameresco, Inc. All rights reserved.Page 25 Fire Station #2 Fire Station #3Fire Station #1 111 Buildings are more expensive to maintain as they age, and the risk of failure increases as building systems near their “end of life.” Total Size: 30,598 thousand ft2 Average Age is 33 years (circa 1985) Age Profile (All Fire Stations) l © 2018 Ameresco, Inc. All rights reserved.Page 26 30 y/o (circa 1988)28 y/o (circa 1990)41 y/o (circa 1977) 112 2018 Deferred Backlog: $784,050 Capital Needs By Discipline -30 Years (All Fire Stations) Life cycle renewal costs for the major building elements have been established for each building to determine the Capital Renewal budget requirements over the next 30 years. $74K average annual funding l © 2018 Ameresco, Inc. All rights reserved.Page 27 113 2018 Capital Needs By Discipline –Urgent & High Priority (All Fire Stations) Total Deferred Backlog of $784,050 includes over $735,313 deemed High Priority. l © 2018 Ameresco, Inc. All rights reserved.Page 28 2018 High Priority Backlog: $735,313 (93.8%) 114 FCI GRID (ALL FIRE STATIONS) l © 2018 Ameresco, Inc. All rights reserved.Page 29 Facility Name Year 1 FCI Year 5 FCI Year 10 FCI Year 15 FCI Year 20 FCI Year 25 FCI Year 30 FCI Fire Station #1 0.3% 1.1% 31.3% 43.3% 48.9% 58.1% 70.5% Fire Station #1 - Site 3.6% 26.3% 30.7% 32.3% 32.3% 83.3% 84.6% Fire Station #2 6.2% 23.2% 32.8% 40.9% 47.2% 56.3% 67.2% Fire Station #2 - Site 0.0% 3.7% 24.2% 24.2% 43.2% 50.2% 58.3% Fire Station #3 10.6% 16.6% 27.9% 40.2% 55.9% 72.6% 75.5% Fire Station #3 - Site 19.0% 19.0% 32.1% 42.0% 44.0% 53.7% 59.4% 115 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary DECISION DEVELOPMENT FRAMEWORK 30 TECHNOLOGY TYPE: ENERGY EFFICIENCY ENERGY MANAGEMENT PHOTOVOLTAIC SYSEM RENEWABLE ENERGY FACILITY SIZE: 2,864,730 SQ FT (47 BUILDINGS) ESPC ENERGY PROJECT SIZE: $21.1 MILLION PV CAPACITY: 1.8 MEGAWATTS $1,522,629 ESPC ANNUAL ENERGY SAVINGS Physical Asset Criteria •Building Condition Needs •Unfunded Liability •FCI Utilization Criteria •Facility utilization •Accommodation planning •Functional Index •Own vs. lease Real Estate Criteria •Asset Valuation •Land Valuation Environmental Criteria •Carbon Footprint •Energy Conservation •Renewable Solutions Financial Criteria •Capital Costs •Operating Costs •Capital Creation Strategies •Incentives Tools Processes & Policies 116 Facility Condition Index -30 Years (with Funding) (All Fire Stations) Overlaying the average annual capital funding of $74 thousand has minimal impact to FCI; it does not change the year that FCI migrates to the “Critical” range (i.e. 2030) l © 2018 Ameresco, Inc. All rights reserved.Page 31 FCI without funding FCI with $74K Average Annual Funding 2030 FCI: 30.2% (Critical) 2018 FCI: 6.9% (Fair) 117 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary 32 CAPITAL CREATION STRATEGIESTM (CCS) Optimized CCS Energy Solutions O&M Optimization Capital Program Management Real Estate Strategies 118 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary CAPITAL CREATION STRATEGIES 33 •Capital renewal and deferred maintenance needs that contain embedded energy savings (MEP, Shell). 20 Year Renewal Needs: -$25.86M total needs -$19.98M MEP -$5.88M Shell (Envelope) 119 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary IMPACT OF CCS’S ON LIABILITY 34 •Ameresco’s Capital Creation Strategies™ can have a sizeable impact on the City’s aging infrastructure Capital Needs, reducing the unfunded liability. Sustainability Target Reduced Unfunded Liability Injection of Capital: -Ameresco CCS Funding -$244k Annually Thereafter is applied to City of Plymouth facilities Average Annual Funding: $0.96M per year 120 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary IMPACT OF CCS’S ON FCI 35 •Supplementing your existing annual capital funding, Ameresco’s CCS’s will help extend the useful life of your portfolio by 14 years. Sustainability Target 7-year extension of useful life: FCI migrates to poor in 2037 vs. 2023 121 ©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary RECOMMENDATIONS AND NEXT STEPS •Create 10-yr Capital Improvement Plan •Explore Benefits of Integrated Work Order System: more maintenance equals longer life for capital systems •Further Discuss Capital Creation Strategies™ •Maintenance & Operations -$94,000 Annual Savings •Energy Solutions -$150,000 Annual Savings •Study Remaining Facilities in City of Plymouth Portfolio 36 122 THANK YOU Your Trusted Sustainability Partner ameresco.com 123 Division 2017 Amended FTE 2018 Adopted FTE 2019 Amended FTE 2020 Adopted FTE 2021 Concept FTE City Manager 2.0 2.0 2.0 2.0 2.0 Economic Development 1.0 1.5 1.5 1.5 1.5 Communication Services 3.0 3.0 3.0 4.0 4.0 City Clerk 4.0 4.0 4.0 4.0 4.0 Human Resources 3.8 3.8 3.8 3.8 3.8 Finance 9.5 9.0 9.0 9.0 9.0 Assessing 0.0 0.0 0.0 0.0 0.0 Transit 0.0 1.0 1.0 1.0 1.0 Information Technology 5.8 5.8 5.8 5.8 5.8 Risk Management 0.0 0.0 0.0 0.0 0.0 CD Administration and Support 4.8 4.8 4.8 4.8 4.8 Planning 4.4 4.4 4.4 4.4 4.4 Inspections 11.9 11.9 10.0 10.0 10.0 Housing and Redevelopment 4.9 4.7 4.7 4.7 4.7 Parks & Rec Admin 4.5 4.5 4.9 3.9 3.9 Parks & Forestry 20.9 20.9 21.9 23.9 24.4 Plymouth Creek Activity Center 4.0 4.0 4.0 4.3 5.1 Recreation 7.5 7.5 7.5 8.3 9.3 Ice Center 5.4 4.4 4.4 4.9 4.9 Field House 1.0 1.0 1.0 1.3 1.3 PD Administration 12.3 12.3 13.3 12.8 12.8 PD Patrol 56.3 58.5 59.8 59.8 59.8 PD Services 22.3 22.0 22.8 23.1 24.1 Fire Operations 13.5 13.5 21.5 24.5 27.5 Fire Duty Crew 0.0 0.0 0.0 0.0 0.0 Street Maintenance 16.6 16.6 18.0 18.0 18.0 Engineering 6.7 6.7 6.8 6.9 6.9 Water 12.5 13.5 14.1 14.3 14.3 Water Resources 7.6 7.6 8.6 9.0 9.0 Sewer 8.2 8.2 8.7 8.9 8.9 Solid Waste 0.9 0.9 1.1 1.2 1.5 Central Services - Central Equipment 4.7 4.7 5.1 5.2 5.2 Central Services - Public Facilities 2.5 2.5 3.1 3.1 3.1 262.1 264.9 280.3 287.9 294.50 1 City of Plymouth 2020 Adopted Budget FTE Summary by Division 124 Levy Type 2017 % Increase / Decrease over 2016 2018 % Increase / Decrease over 2017 2019 % Increase / Decrease over 2018 Proposed 2020 % Increase / Decrease over 2019 Proposed 2021 % Increase / Decrease over 2020 Levy Base General Fund Base 26,691,753 5.59%28,113,058 5.32%29,958,324 6.56%31,644,857 5.63%33,453,337 5.71% Street Reconstruction 3,024,021 2.00%2,584,501 -14.53%2,636,191 2.00%2,662,553 1.00%2,689,179 1.00% Recreation Fund 631,674 4.99%650,624 3.00%670,143 3.00%703,650 5.00%738,832 5.00% Park Replacement 360,705 2.00%871,526 141.62%888,957 2.00%906,736 2.00%924,870 2.00% Capital Improvement Fund 427,853 2.00%440,688 3.00%449,501 2.00%458,491 2.00%467,661 2.00% Total Levy Base 31,136,006 5.13%32,660,397 4.90%34,603,116 5.95%36,376,287 5.12%38,273,879 5.22% Special Levies GO 2012A (2004A) Public Safety 561,488 -0.43%569,258 1.38%571,148 0.33%572,565 0.25%573,510 0.17% 2015A Open Space 268,347 2.61%269,712 0.51%265,722 -1.48%272,232 2.45%271,182 -0.39% Plymouth Creek Center 910,000 2,032,996 Total Special Levies 1,097,441 0.34%1,105,683 0.75%836,870 -24.31%1,754,797 109.69%2,877,688 63.99% TOTAL CITY LEVY 32,233,447 4.96%33,766,080 4.75%35,439,986 4.96%38,131,084 7.59%41,151,567 7.92% HRA Levy 571,379 1.80%580,519 1.60%590,528 1.72%602,339 2.00%614,386 2.00% TOTAL LEVY $32,804,826 4.90%$34,346,599 4.70%$36,030,514 4.90%$38,733,423 7.50%$41,765,953 7.83% CITY OF PLYMOUTH PROPERTY TAX LEVIES 11/7/2019 125 Special City Council November 12, 2019 Agenda Number:2.2 To:Dave Callister, City Manager Prepared by:Sandy Engdahl, City Clerk Reviewed by:Laurie Hokkanen, Administrative Services Director Item:Set future Study Sessions 1. Action Requested: Schedule Study Sessions and/or add topics as desired. Calendars are attached to assist with scheduling. 2. Background: Pending Study Session Topics (at least three Council members have approved the following study items on the list): -IOCP Affordable Workforce Housing Tour (item to be removed and readdressed in the spring) Other Council requests for Study Session Topics: None at this time. Staff requests for Study Session Topics: None at this time. 3. Budget Impact: N/A 4. Attachments: November December January 126 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 November 2019 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR Phone: 763-509-5080 plymouthmn.gov 5:30 PM SPECIAL COUNCIL MEETING Budget, CIP, Utility Rate Study Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers 7:00 PM PLANNING COMMISSION MEETING Council Chambers THANKSGIVING HOLIDAY 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Medicine Lake Room 5:30 PM SPECIAL COUNCIL MEETING Review Board and Commission Applications Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers SUN TUES MON THUR FRI SAT THANKSGIVING HOLIDAY CITY OFFICES CLOSED CITY OFFICES CLOSED VETERANS DAY CITY OFFICES CLOSED 7:00 PM PARK & REC ADVISORY COMMISSION MEETING Plymouth Ice Center 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY MEETING Parkers Lake Room Plymouth Arts Fair Plymouth Creek Center Plymouth Arts Fair Plymouth Creek Center 127 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 December 2019 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR Phone: 763-509-5080 plymouthmn.gov 7:00 PM PLANNING COMMISSION MEETING Council Chambers 5:30 PM SPECIAL COUNCIL MEETING Dundee Nursery Redevelopment Concept Plan Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY MEETING Parkers Lake Room SUN TUES MON WED THUR FRI SAT 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Council Chambers 7:00 PM CHARTER COMMISSION MEETING Medicine Lake Room 7:00 PM PLANNING COMMISSION MEETING Council Chambers CHRISTMAS DAY CITY OFFICES CLOSED CHRISTMAS EVE CITY OFFICES CLOSED AT NOON 2:00 PM - 5:00 PM Old Fashioned Christmas Plymouth Creek Park 5:30 PM SPECIAL COUNCIL MEETING Board and Commission Interviews Medicine Lake Room 128 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 MARTIN LUTHER KING JR. BIRTHDAY CITY OFFICES CLOSED 21 22 23 24 25 26 27 28 29 30 31 January 2020 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR 763-509-5080 plymouthmn.gov 7:00 PM PARK & REC ADVISORY COMMISSION MEETING Council Chambers SUN TUES MON WED THUR FRI SAT CHANGES ARE NOTED IN RED 7:00 PM REGULAR COUNCIL MEETING Council Chambers 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Medicine Lake Room 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY MEETING Parkers Lake Room NEW YEAR’S DAY CITY OFFICES CLOSED 7:00 PM REGULAR COUNCIL MEETING Council Chambers Absentee Voting begins for Presidential Nomination Primary Election 6:00 PM-8:00 PM Skate the Garden Millennium Gardens Pond 6:30 PM-10:00 PM After Hours at the Creek Plymouth Creek Center 129