City of Stevens Point2022 Capital Budget Presentation
First-Where are we in the Process • September Finance: Initial Presentation Chance to ask any questions, express any initial
concerns Not looking for formal action
• October Finance/Council: Formal Action Both Finance Committee and Council can make
amendments. Looking for formal approval.
Sources of Funding-Capital • $5,385,500: Borrowing Proceeds • $1,000,000: Use of Fund Balance • $800,000: Proceeds from TIF Repayments
$7,185,500: Total 2022 Capital Budget
*Use of Fund Balance means the use of budget surpluses, resulting from either revenues coming in higher than expected/budgeted, or expenses coming in lower than expected/budgeted. Two TIF Districts are also repaying advances from the General Fund, which results in extra money that the General Fund can use for capital projects.
Capital Budget Size vs. Requests • 2020 Capital Budget: $5.85 Million • 2021 Capital Budget: $6.27 Million • 2022 Capital Budget: $7.18 Million (6.4% Increase)Initial
Request Updated Difference
2022 8,950,250 7,185,500 -1,764,750 2023 12,039,600 12,136,600 97,000 2024 11,846,500 11,887,500 41,000 2025 9,246,500 9,246,500 0 2026 8,310,000 8,310,000 0
Requested Vs. Recommended
Requested Recommended Target
Note Format Change • “2022 Budget Proposal” Column: Amount that is
proposed to come from the regular Capital Budget. • “2022 Funded By Other Sources” Column: Amount
this is proposed to come from other sources. • The total of both columns is the total cost of the
project.
(In the past, the other sources were subtracted at the end of the sheet.)
ARPA (Stimulus) Money • Proposing to utilize $194,000 out of the
$2,708,822 that we have been allocated Under Revenue Replacement Provision Signage Plan Implementation: $60,000 Infrared Patching Equipment: $120,000 Dehumidifier Wheel-Willett: $14,000
• Note that this is only a proposal
Community Development • $15,000: Citywide Assessment Revaluation • $60,000: Signage Plan (ARPA Funded)
City Clerk • $45,000: Express Vote • $12,000: Copier/Scanner/Fax
Citywide • $50,000: Citywide Building Maintenance • $60,000: ADA Evaluation and Improvements
Information Technology • $4,500: Replace Printers • $50,000: Parks Fiber & Network Improvement • $40,000: PD Toughbook Replacements • $95,000: Domain Unification/Exchange 365 • $25,000: Hardened Immutable Backup • $30,000: Routers and Redundant Internet • $20,000: UPS Replacement
Airport • $45,000: Runway Reconstruction • $187,000: Tractor and Mower
Transit • $30,000: Support Vehicle (Covered with
Transit Funds on Hand)
Road Construction-Two Types • Street Reconstruction: Replace both road
surface and utilities underneath (dig everything up-replace everything)
• Street Resurfacing: Replace only the road surface, leave utilities, curb/gutter in place.
Dept of Public Works-Streets Projects
• $1,600,000: Complete Reconstruction- Washington, Smith, Portage (Northside) Cost is City Portion (does not include utilities)
• $1,150,000: Resurfacing: Janick Circle, Ridge Rd.
• $750,000: Road Surface Improvements (ie. Chip Seal, Resurface)
• Total Road Projects: $3,500,000
Road Construction Budgets 2016-2022
Fleet Vehicles/Equipment • $900,000: Fire Ladder Truck • $325,000: Grader • $230,000: Loader • $177,000: Pickups (6)-DPW • $64,000: Mowers (2)-Parks • $19,500: Equipment Trailer-Fire
Fire Department • $125,000: Training Site • $60,000: Computer Aided Dispatch Software • $24,000: Turnout Gear • $20,000: General Fire Equipment • $15,000: Technical Rescue Equipment • $12,000: Mobile Radio • $10,000: Fire Hose • $10,000: Lapel Mics/Radio
Parks Department (1 of 2) • $600,000: Turf Replacement-Goerke (Donated
Funds) • $150,000: Swimming Pool Replaster • $120,000: Playground Equipment-Iverson • $45,000: Convert to Pickleball Courts-Mead
($15k regular capital, $30k funds in lieu) • $40,000: Erosion Restoration-Koziczkowski
Parks Department-(2 of 2) • $25,000: Outdoor Recreation Plan • $22,000: Tuckpoint/Repair Bridge-Iverson • $20,000: Engineering/Design-Groholski Park • $20,000: Shed-Replace Roof, Siding,
Windows: Forest Cemetery • $14,000: Dehumidifier Wheel-Willett (ARPA)
Police Department • $295,000: Parking Lot Resurface • $96,500: Software-Records Management • $24,000: Radios for Auxillary • $16,500: Parking Lot Storm Sewer Upgrade • $15,000: Less Lethal Munitions/Equipment
(Funded by Asset Forfeitures)
Questions on 2022 Capital Projects
Capital Outlook: Positives • Ability to Make Our Own Decisions (Levy Limit
Exception) • Support for Inflationary Adjustments • Repayment of TIF District Advances Has Been Helpful, but will reduce significantly
after 2023 • American Rescue Plan Act (ARPA) Funds • Prospect of Federal Infrastructure Bill
Capital Outlook: Challenges • Expenses of Business 51 Project • 5 Year Plan: 2023 and 2024 Requests Significantly
Exceed Available Funding • Significant Cost Increases, Inflation Prospects • Falling Short of Goal on Street Reconstruction and
Resurfacing Although doing much better than in the past
• Sensitivity to Tax Adjustments • Continuing Struggle with How to Fund New Assets • Mismatch between Financial Capacity and
Expectations/Needs/Requests
Conclusion:
2022 Budget Updates
Update on Tax Rate
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
Workers Compensation: Expenses Vs Funding
(2021 is Projected)
2022 Funding at Current Rates: $402,200 2022 Funding with 30% Reduction: $281,540
Year Expense 2016 $76,779 2017 $291,919 2018 $192,680 2019 $173,563 2020 $131,450 2021 $273,768
Sheet1
Revenue
Expenditures
Surplus/Deficit
30%
2016
$76,779
2017
$291,919
2018
$192,680
2019
$173,563
2020
$131,450
2021
$273,768
2021
123049
210953.197325561
13900
13900
48915
48915
273768.197325561
Sheet2
2015
$0
2016
$417,962
417962
2017
$662,557
244595
2018
$1,032,364
369807
2019
$1,484,508
452144
2020
$1,737,068
252560
2015 2016 2017 2018 2019 2020 0 417962 662557 1032364 1484508 1737068
Workers Compensation Fund-Summary
• Workers Compensation Fund is in 6th Year: Always Had Positive Performance
• Self Insured Retention is $500,000/Accident. • Past Experience and Current Balance in Fund
Justifies Rate Adjustment Benefits will extend beyond the General Fund.
For example, part of the savings will be experienced by the enterprises (utilities).
It is expected this adjustment will be needed to balance the operating budget.
Questions on Workers Compensation
Property Taxes • Planning 2.5% increase in City Portion of Tax
Rate Standing Policy Direction
• Total Tax Rate (City, County, School, MSTC): Preliminary Indications are Favorable
Factors Affecting Total Tax Bill • State Budget increased both school funding and
technical college funding, effectively “buying down” these tax rates
• Lottery and Gaming Credit expected to increase Based on strong financial performance
• The Legislative Fiscal Bureau issued a report projecting net property tax levies statewide to actually decrease slightly However, it also noted that impacts could
“vary considerably” among different municipalities.
Additional Factor-Apportionment • Tax levies for other jurisdictions are allocated to
each municipality based on equalized value, excluding TIF increment
• City of Stevens Point-Share of County Levy Last Year: 30.83% This Year: 30.50% Result: Responsible for approximately 1% less,
helps offset any increase in the County Tax Levy.
Result • Initial indications are promising for very
reasonable total tax bills in December Except for residents of the McDill Lake District
• Chance to take a long-term view Especially with a revaluation coming Can’t completely offset impacts, but can do
something to help
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Alternative Plan-No Increase for Revaluation Year
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
2021 2022 2023 2024 2025
Decision Making Timeline • Variable portion of tax rate driven by debt
repayment schedule. • Need to set the repayment schedule of current
borrowing by November 5th. • Should know school tax rate by then, but likely not
before October meetings. Also, may not have all pieces of information.
• Would like to set a strategy in October What to do if total taxes are projected to go down? What to do if total taxes are projected to be
reasonable? (No more than 2% total increase)
Questions on Taxes
Sources of Funding-Capital
Requested Vs. Recommended
Note Format Change
ARPA (Stimulus) Money
Road Construction-Two Types
Road Construction Budgets 2016-2022
Parks Department-(2 of 2)
Workers Compensation Fund-Summary
Slide Number 31
Additional Factor-Apportionment
Alternative Plan-No Increase for Revaluation Year
Decision Making Timeline
Slide Number 39