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HomeMy WebLinkAbout1986-01-28 Info Packet of 1/17i Y I i VM:is..aaaa2..a. ..........•..»....A................r......w,......... n.n..nw......... ....0 a•u:La •rvu —�P �E E E.11 P January 28, 1986 2 of 2 Mew p i ter,; fr ti J r r �I r. rd's•. r �V��JI�'arV ti�Fnf � + • _ �a Y I l � ... ` I if fl4i. }�1.,� .�.. I'-. .:.: rn jai � 1..:.:.t .. .. ":\., ':. � .'. ' .. 1 � .r: J,•�:' ■ r V ' n c -�...aa.......... ,.................. .,,....�.......... City of Iowa City MEMORANDUM DATE: January 17, 1986 TO: City Council FROM: City Manager RE: Material in Friday's Packet Informal agendas and meeting schedule. Memoranda from the City Manager: a. Capital Improvements Program - Staff Priorities b. Pending UMTA Section 9 Grant Application Memoranda from the Department of Public Works: a. Wastewater Treatment Facility b. Wastewater Facility Construction c. ParKing Ramp "8" - Dubuque Street Memorandum from the Equipment Superintendent regarding FY87 equipment replacement. Memoranda from the Finance Department: a. Free Bus Passes for Low Income Elderly Citizens b. FY87 Budget - Recreation c. Projected cost increase in the Park and Shop Program Memorandum from the Chair of the Historic Preservation Commission rega the 1985 Awards Program. Letter of resignation from Human Relations Director. Memoranda from the City Clerk: a. Beer/Liquor License/Conditional Approval - The Airliner b. Beer Permit/Sunaay Sales/Conditional Approval - Country Kitch Copy of letter from Geri Hall, Member of the Senior Center Commission, the Chairperson of the Committee on Community Needs. Copy of presentation by Thomas Summy at the January 14 Council meeting Copy of note from the President of Israel in reply to Mayor's letter r the Nuclear Free Zone Ordinance. Articles: a. City's fiscal feat b. Cities cut energy costs Minutes of staff meetings of January 8 and 15, 1986. Letter from National League of Cities with attached survey of key muni) issues. Proposed Capital Improvements Program. d/� i City of Iowa City MEMORANDUM DATE: January 17, 1986 TO: City Council FROM: City Manager RE: Informal Agendas and Meeting Schedule January 18, 1986 Saturday 8:00 A.M. - 1:00 P.M. Iowa City Transit Facility Special Informal Council Meeting to discuss FY87 Budget January 21, 1986 Tuesday 6:30 - 8:00 P.M. Council Chambers 6:30 P.M. - Meet with Wastewater Facilities Committee 7:15 P.M. - Discuss City Attorney Evaluation Process 7:30 P.M.' - View Film on Historic Preservation 7:45 P.M. - Council time, Council committee reports January 25, 1986 Saturday 8:00 A.M. - 1:00 P.M. Iowa City Public Library, Meeting Room A Special Informal Council Meeting to discuss FY87 Budget January 27, 1986 Monday 6:30 - 8:30 P.M. Council Chambers 6:30 P.M. - Meeting of City Conference Board - Separate agenda posted 6:45 P.M. - Review zoning matters 7:15 P.M. - Development Policy for Southwest Iowa City 7:30 P.M. - Coralville Milldam Project 8:00 P.M. - Council agenda, Council time, Council committee reports 8:15 P.M. - Consider appointments to the Airport Commission, Mayor's Youth Employment Board, Human Rights Commission, Design Review Committee, Committee on Community Needs and Broadband Telecommunications Commission January 28, 1986 Tuesday 7:30 P.M. - Regular Council Meeting - Council Chambers PENDING LIST Leasing of Airport Land for Commercial Use City Administrative Procedures Sidewalk Cafes Newspaper Vending Machines Stormwater Management Ordinance Review Abandoned Vehicle Ordinance Evaluation Six Month Evaluation of City Attorney Hutchinson/Bayard Access Request Economic Development Revolving Loan Fund City of Iowa City MEMORANDUM Date: January 17, 1986 To: City Council From: City Manage Re: Capital Improvements Program - Staff Priorities A group of City staffpersons consisting of department heads and division heads from departments which submit capital improvement projects annually review and prioritize the proposed projects. For the FY87-91 CIP their priorities are as follows: TOP PRIORITIES 1. Landfill Leachate Lift Station 2. Benton Street Bridge Widening 3. Cemetery Building Addition 4. Civic Center Expansion 5. Bridge Decks: Burlington, Dodge and Gilbert 6. Animal Control Facility HIGH PRIORITY 7. Existing Sewer Plant Upgrade B. City Plaza Light Replacement 9. Governor Street Retaining Wall 10. Bridge Decks: Woolf and Melrose 11. Dodge Street -Dubuque Street to Governor Street - Improvements 12. Melrose Avenue Paving 13. Bridge Replacement - Lakeside Drive and Second Avenue 14. Heartland Railroad Crossings at Dubuque Street and Clinton Street MEDIUM PRIORITY 15. Benton Street/Mormon Trek Signals 16. Softball and Soccer Fields 17. Benton Street Culvert Replacement 18. Scott Boulevard Paving 19. Heartland Railroad Crossing at 1st Avenue 20. Melrose Avenue - Byington Avenue to Railroad Bridge - Widening and Improvement 21. Napoleon Park Restrooms 22. Governor Street Retaining Wall WA /9-S 2 LOW PRIORITY (Those which did not fall within any of the other specific categories.) 23. Kirkwood/Dodge Signals 24. Extra Width Paving at First Avenue, Sandusky and Foster Road 25. Highway 1/Sunset Signals 26. FY87 Alley Paving 27. Airport Master Plan 28. North Corridor Sewerage 29. Rohret Road Paving 30. Curb Ramp Installation 31. Taft Speedway Paving 32. Parcel 65-2a Renovation (Blackhawk Mini -Park) 33. Ralston Creek Property Acquisition 34. Orchard Douglas Storm Sewer 35. City Park Tennis Courts 36. Terrill Mill Park Improvements LOWEST PRIORITY 37. Pedestrian Bridge Over Highway 6 38. Burlington Street Foot Bridge 39. Park Road Storm Sewer 40. North Market Park Play Area 41. North Dubuque Street Sidewalk 42. New Bridge - Governor to Keokuk 43. North Dubuque Street Curb and Gutter 44. Napoleon Park Restrooms 45. Bus Fleet Replacement These priorities are being provided for your information only. They may be helpful as you discuss the FY87-91 Capital Improvement Program on January 25, 1986. The method for determining these priorities is somewhat crude and its greatest reliability is breaking them down into the catego- ries indicated as top, high, medium, low, and lowest. Rankings within these categories are crudely determined and have less validity than the group rankings. Items not included here but found in the proposed CIP document were not discussed when the staff addressed the program in October, 1985. Several projects have been added since then. /sp 195 1V'1vN N�v{wv\!vv.\lwti vw 4\w\u[�v\vlvv�w..K.Y: a":�v:•wv�H�vw.�.•..'w iiry �..vw..n.wv:.'. ..v �..1..v.v.wv:�-.'. •.�.' City of Iowa City. MEMORANDUM Date: January 16, 1986 To: City Council 00, From: City Manager/ a� Re: ' Pending UMTA Section 9 Grant Application In keeping with your request to be notified of all pending UMTA grant applications, JCCOG is currently preparing a Section 9 operating assis- tance application on behalf of Iowa City Transit. This application is for $115 384 of federal funds which will be used to operate Iowa City Transit {n FY86. The amount is $4,083 (3%) less than we received last year. JD/sp 0 .............. City of Iowa City MEMORANDUM Date: January 15, 1986 To: Neal Berlin and City Council From: Chuck Schmadeke Re: Wastewater Treatment Facility The Iowa Department of Water, Air and Waste Management is requiring, by issuing an administrative order, the City of Iowa City to submit a plan of action to the State by February 18, 1986, stating that it will have com- pleted all construction necessary to meet final effluent limitations by July 1, 1988. In order to meet final effluent limitations the proposed existing plant expansion, the Sand Road Treatment Plant, and approximately 2/3 of the southeast interceptor sewer must be constructed. The cost of these improvements is $26 million. A copy of the administrative order is attached. tp3/1 I I i i cc: Wastewater Treatment Plant Review Committee I /97 a •�N�1 Kaa\avv .. •va\.v............uv.wi.ni.l .. .:... BECEIVEDJAN 101986 department of water, air and waste management January 8, 1986 Honorable John McDonald, Mayor City Hall Iowa City, Iowa 52240 Re: City of Iowa City Administrative Order 86 -WW -03 Dear Sir: Enclosed is Administrative Order 86 -WW -03 concerning the City of Iowa City. The order requires the City to submit a plan of action under the Municipal Improvement Program by February 18, 1986. The Plan of Action is required to state that all construction necessary to meet final effluent limitations will be completed by July 1, 1988. The Department would like to schedule a meeting here in Des Moines with City officials to discuss the required plan of action. I will be calling you•in the near future to set up a meeting date. If you have any questions, do not hesitate to contact me at (515)281-6267. Sincerely, LEGAL SERVICES DIVISION yy 4"'., Diana L. Hansen Compliance Officer DLH:hmd/M352BO3.02 Enclosure cc: Region 6 CAB/Charles Furrey henry a. wallace building • 900 easf grand • des moines, i0wo 50319 • 515/281.8690 197 %4 pT 0 c DEPARTMENT OF WATER, AIR AND WASTE MANAGEMENT ADMINISTRATIVE ORDER IN THE MATTER OF: City of Iowa City, Iowa ADMINISTRATIVE ORDER Wastewater Treatment 86 -WW -03 Facility No. 52-25-0-01 To: c/o Honorable John McDonald, Mayor City of Iowa City 410 East Washington Street Iowa City, Iowa 52240 Pursuant to Iowa Code section 455B.175(1), you are hereby notified that the Executive Director of the Iowa Department of Water, Air and Waste Management (hereinafter referred to as the Department) has deter- mined that: I. A. The City of Iowa City, Iowa, owns and opera- tes Wastewater Facility No. 52-25-0-01 located in sec- tion 15, T79N, R6W, Johnson County, Iowa. The City holds NPDES Permit No. 52-25-0-01 governing the opera- tion of the facility. B. On August 10, 1984, Regional Office 6 staff informed the City by letter that it was required to submit a plan of action under the Department's munici- pal improvement plan within six months. The City was i informed that the treatment facility must achieve iwastewater treatment compliance by 1988. The inspec- tion report which accompanied the letter indicated that DH:hmd/LSQ002D03.01 197 %4 r i...................,,.,.... .... .... ,.................M.. . the City needed to address the problem of bypassing which occurred whenever there was a rainfall of approximately one inch or more. The inspection report also noted numerous deficiencies in the repair of the i City's aging and deteriorating facility and certain violations of effluent limitations. C. By letter dated January 9, 1985, the City requested that the Department grant a nine month exten- sion of time to complete the plan of action. originally due on or about February 15, 1985. The City requested the extension due to the fact that the City was to receive an engineering report from Metcalf and Eddy, an engineering consultant, on May 1, 1985 concerning collection, treatment and financing alternatives for i the City's wastewater treatment facilities. The Department granted an extension to July 1, 1985 for submission of the plan. D. On June 26, 1985, the City of Iowa City submitted a two page interim plan of action. In this interim I ' plan the City' indicated that three alternatives had been developed and that additional study would be con- ducted to determine the most desirable solution and to determine feasible financial options for implementing j the selected alternative. It was projected that the additional study would be completed by August, 1985. ; j On July 23, 1985, Region Office 6 informed the City i that it would grant an extension to October 1, 1985 for DH:blb/LS0002D03.01-.02 2 !i i /97 3 submission of the City's plan of action due to the pro- jected completion of engineering studies by August,• 1985. E. On or about December 23, 1985, Region Office 6 staff received a second Interim Plan of Action. This submission indicated that a study to select alter- natives and financial options to implement the selected E alternatives should be completed by March, 1986. T Region 6 staff reviewed this submission and found that it did not constitute a formal plan of action. F. To date the City has not submitted an acceptable plan of action to the Department. II. A. The Federal Water Pollution Control Act, 33 i D.S.C.A. 81311, requires municipal wastewater treatment facilities to meet final effluent limitations by July 1, 1988. This Act establishes the National Pollutant Discharge Elimination System (NPDES) permit program in order to accomplish this and other goals. B. Much of Division III, Part I, of Iowa Code Chapter 455E was adopted in order to implement the Federal Water Pollution Control Act and the federal ` regulations and guidelines issued pursuant to the Act. See section 455B.171. C. Federal regulations relating to delegation of the NPDES permit program to the States, 40 C.F.R. Part 123, and the Memorandum of Agreement between the State and EPA require, among other things, that dischargers which DH:blb/LSQ0O2D03.01-.02 3 ! 197 '! do not comply with final limitations must be given a schedule to comply "as soon as possible" but not later than the applicable deadline under the Clean Water Act, 40 C.F.R. 5123.25(18); 5122.47(a)(1). D. Department Rules 1. Department rule 900--64.6(6) Iowa Administrative Code (I.A.C.) requires the owner of a publicly owned itreatment works (POTW) to prepare and implement a plan of action to achieve and maintain compliance with final effluent limitations in its NPDES permit. The Department is to review such plans of action and either approve or disapprove pprove a plan. 2. Department rule 900--64.6(6)"b" I.A.C. provides: The plan of action will vary in length and complexity depending on the compliance history and physical status of the par- ticular POTW. It must identify the defi- ciencies and needs of the system, describe the causes of such deficiencies or needs, propose specific measures (including an implementation'schedule) that will be taken to correct the deficiencies or meet the needs, and discuss the method of financing the improvements proposed in the plan of action. The plan may provide for a phased construction approach to meet interim and final limitations, where financing is such that a long-term project is necessary to meet final limitations, and shorter-term projects may provide incremental benefits to water quality in the interim. Information on the purpose and prepara- tion of the plan can be found in the depart- mental document entitled "Guidance on Preparing the Plan of Action", available through the records center of the depart- ment. 3. The purpose of the plan of action is to improve DH:blb/LSQ002D03.01-.02 4 i /9� pT P n water quality throughout Iowa by providing proper treatment of domestic waste. A plan of action is required of a city for a POTW in order to provide a framework upon which city officials can base management decisions for improving and maintaining municipal sewage treatment plants in order to meet final effluent limitations by July 1, 1988. 4. Department rule 900--64.6(4)I.A.C. sets forth the procedure for establishing schedules in NPDES permit conditions to achieve compliance with applicable effluent standards and limitations, water quality stan- dards, and other legally applicable requirements. The rule provides that 'in the absence of any legally applicable schedule of compliance, such steps shall be achieved in the shortest, reasonable period of time, such period to be consistent with the guidelines and requirements of the Act.' III. The Department finds that the City of Iowa City is in violation of the requirements of rule 900--64.6(6) Iowa Administrative Code (I.A.C.) which requires that the City submit a plan of action to achieve and maintain compliance with final effluent limitations in its.NPDES permit and have such plan approved by the Department. The City is in violation of rule 900--64.6(6) due to its failure to timely sub- mit a*plan of action as requested by the Department. DH:blb/LSQ002D03.01-.02 5 /97 L................. w,,........ THEREFORE, the City of Iowa City shall comply with the following provisions in order to cease further . violations of the above cited rules and statutes: The City of Iowa City shall complete and submit to Region Office 6 of the Department a plan of action pur- suant to rule 900--64.6(6) I.A.C. by February 18, 1986. The plan of action must indicate the actions that the City of Iowa City will take to meet final effluent limitations and must include a time schedule for imple- mentation of such actions. Any construction of new treatment facilities or upgrading or rehabilitation of existing facilities needed to meet final effluent limi- tations must be completed by July 1, 1988. Therefore, the plan of action must specifically state that all construction necessary to meet final effluent limita- tions will be completed by July 1, 1988. Pursuant to Iowa Code section 455B.175(1), a Notice of Appeal to the Water, Air and Waste Management Commission may be filed within 30 days of receipt of this Order. The Notice of Appeal should be filed with the Executive Director of the Department of Water, Air and Waste Management. A contested case hearing will then be commenced pursuant to Iowa Code chapter 17A. Failure to comply with this order may result in the imposition of administrative penalties pursuant to Iowa Code section 4559.109 (1985) or referral to the Attorney General to obtain injunctive relief and civil DH:blb/LSQ002D03.01-.02 6 /9;7 E penalties pursuant to Iowa Code section 455B.187 (1985). Any questions regarding this Order should be directed to: Diana L. Hansen Legal Services Division Iowa Dept. of Water, Air and Waste Management Henry A. Wallace Building 900 E. Grand Avenue Des Moines, IA 50319 515/281-6267 Dated this day of , 1986, at Des Moines, Iowa. Stephen W. Ballou Executive Director DH:blb/LSQ002D03.01-.02 7 /97 %4 ��1k v'\valva al.aaa \atw.0 \.\aa .....aaaa..w.`.J..`n......... w...v..v..... penalties pursuant to Iowa Code section 455B.187 (1985). Any questions regarding this Order should be directed to: Diana L. Hansen Legal Services Division Iowa Dept. of Water, Air and Waste Management Henry A. Wallace Building 900 E. Grand Avenue Des Moines, IA 50319 515/281-6267 Dated this day of , 1986, at Des Moines, Iowa. Stephen W. Ballou Executive Director DH:blb/LSQ002D03.01-.02 7 /97 %4 �K\va aat/.a va. \a\ to ava\ a..� c a\!\�tuv..V:.V::.-: a �. � : �t as �..a.,.wl._�i�..:i...a.•.a .a..v..t .. n...4.�:.v.aW�.aaN w . city of Iowa city MEMORANDUM Date: January 16, 1986 To: Neal Berlin and the City Council From: Chuck Schmadeke CIP). Re: Wastewater Treatment Facility - Financial Analysis Metcalf and Eddy, Inc. has completed its study of the financing alterna- tives for constructing the Wastewater Treatment Facility. A copy of the report is attached. The Wastewater Committee will be reviewing this report along with a financial analysis report being prepared by George K. Baum & Company and Boettcher & Company. Upon completion of the review by the Wastewater Committee, this matter will be scheduled for informal discussion with the City Council. tp4/1 cc: Wastewater Treatment Plant Review Committee a i _'MV�K\awaa✓.vwbav\V✓av\\ aaa vvatNav'rWiJy: ::: r: h:Nwawa��aw+�wi.n:��i.'..Tn.v.aw.:w.v�..�Iy..4vAVM1vwv.�y' .! MSE December 18, 1985 Metcalf & Eddy, Inc. Engineers& Planners 85 W. Algonquin Road. Suite 500 Arlington Heights. Illinois 60005.4422 (312(2280900 Mr. Charles Schmadeke, P.E. Director of Public Works City of Iowa City 410 E. Washington Street Iowa City, Iowa 52240 Dear Mr. Schmadeke: Attached is the revised Financial Analysis report for Alternative II. The analysis includes four financing methods and the resulting debt service requirements. We are prepared to meet with you do discuss this report at your request. We appreciate the opportunity to serve the City of Iowa City. Very truly yours, z` � Loren W. Leach Project Manager LWL/tpw Attachment Boston / New YUTA / Palo Allo / Sen Bpmard.no / Wino. CA / CMCapp / Houston / Atlanta / $111,11111. NJ / S4ver Spring. MD /Honolulu /97 r , MSE December 18, 1985 Metcalf & Eddy, Inc. Engineers& Planners 85 W. Algonquin Road. Suite 500 Arlington Heights. Illinois 60005.4422 (312(2280900 Mr. Charles Schmadeke, P.E. Director of Public Works City of Iowa City 410 E. Washington Street Iowa City, Iowa 52240 Dear Mr. Schmadeke: Attached is the revised Financial Analysis report for Alternative II. The analysis includes four financing methods and the resulting debt service requirements. We are prepared to meet with you do discuss this report at your request. We appreciate the opportunity to serve the City of Iowa City. Very truly yours, z` � Loren W. Leach Project Manager LWL/tpw Attachment Boston / New YUTA / Palo Allo / Sen Bpmard.no / Wino. CA / CMCapp / Houston / Atlanta / $111,11111. NJ / S4ver Spring. MD /Honolulu /97 A I. STATEMENT OF OBJECTIVES The objective in this report is to analyze four approaches available to Iowa City for financing its proposed wastewater conveyance and treatment facilities. The final outcome of the analysis will be to assist the City in identifying the most attractive option available based on the costs and risks involved. II. ANALYTICAL APPROACH Metcalf 6 Eddy's Phase III Report recommended Alternative 11 as the preferred technical alternative for construction. The analysis presented in this report is aimed at identifying the approach best -suited to financing this alternative. The costs associated with the construction of Alternative 11 are detailed in Table 1. Four financing alternatives will be analyzed: A) Municipal Fixed Rate Revenue Bonds B) Municipal Fixed Rate General Obligation Bonds in Combination with Municipal Revenue Bonds C) Fixed Rate Privatization Financing D) Variable Rate Privatization Financing The approach to the analysis is divided into two parts. The first is a quantitative and qualitative comparison of the financial alternatives, ranking them in terms of both risk and annual capital cost to the City. In making this assessment a number of assumptions were made. Some of the assumptions used in this analysis were provided by the City. The assumptions utilized in this analysis are as follows: Construction Cost Construction Period i Legal 6 Administration Fees Underwriters Discount Bond Insurance Debt Service Reserve Debt Interest Rate Maturity I /97 H c �ltiiiat\!aa\v \a{1a i\\a tc\a\'a!tnan.uMi.V 11i: Y::a:vaaawaHa...A...v.wi.YiA.'�/H'.vAVAev..-.�A�MN.YAY.Y.`�r`.".' Construction Fund Investment Rate Debt Service Reserve Fund Investment Rate Liquidity Fee Remarketing Fee Recognizing that the assumptions used in part one of this report are highly conservative with respect to privatization, part two of the analysis utilizes privatization assumptions that reflect Metcalf & Eddy's recent experience with this financing method. These scenarios find justification in the general beliefs that the potential exists for construction cost savings with privatization. Experience with privatization transactions to date shows significant savings due to time and cost efficiencies of private sector management. For the purpose of the part two analysis, a conservative estimate of a construction cost savings of five percent has been utilized. A complete list of the assumptions used in both parts of the report appear in Table II. r �0.'A::a.a.S..i.a:.y..wati.ai...tw..::..:..._ r: rr:..a....+»....,.-A....-........,..m ..m.....w....w.w.n..«�..v... TABLE I CONSTRUCTION COST FOR ALTERNATIVE 411 A. University Heights Sewer System $ 1,469,022 B. Northern Portion SE Interceptor $ 3,991,060 C. Existing Plant $ 9,993,247 D. Sand Road STP $ 9,309,437 E. Sewers - SE Interceptor $ 7,627,212 F. Lift Stations $ 1,521,022 Total Construction Cost $33,911,000 Annual O&N Cost $ 1,335,400 - 3 - 197 I TABLE II Summary of Financing Analysis Assumptions 114 Fixed Rate Fixed Rate Variable Rate Fixed rate Privatization variable Rate Privatization Cost Category Revenue Bonds OJ/Revenue Bonds Privatization Privatization construction Cost $33,911,000 $33,91.1,000 $33,911,000 $33,911,000 $32,215,000 $ 32,215,000 Oonstruction Period 1.5 years 1.5 years 1.5 years 1.5 years 1.5 years 1.5 years Legal & Admin. Fees $ 120,000 $ 120,000 $ 330,000 $ 330,000 $ 330,000 $ 330,000 Werwriters Dis=nt 28 28 28 28 28 28 Bond Insurance 0.88 08 /0.88 0.88 0.88 0.88 0.8% Debt Service f1eserve 158 0% /158 158 158 158 158 Debt Interest Fate 9.28 7.58 /9.28 9.28 5.758 9.28 5.758 Maturity 30 Years 20 Years/30 Years 25 Years 25 Years 25 Years 25 Years const.. rand Invest Babe 7.758 7.758 7.758 5.758 7.75% 5.758 DSR Fund Invest Rate 9.5% 9.58 9.28 5.758 9.28 5.758 Liquidity FLe NA NA MA 3/8% NA 3/88 Remarketing Fee NFL NA NA 1/88 NA 1/88 58 reduction in oonstruction cost 114 III.1 ANALYSIS - PART 1 A. MUNICIPAL FIXED RATE REVENUE BONDS Although there is usually no legal limit to the amount of fixed rate revenue bonds that may be issued, from a practical stand point the size of a bond issue is limited by the size and amount of revenue available for debt service. Because debt service is tied to a project's future revenue stream, there is a modest amount of risk associated with revenue bonds. Revenues pledged to debt service must therefore include a coverage factor for bond holder security. This additional coverage is typically 258 of debt service. In addition to providing coverage, it is necessary to establish a debt service reserve fund of between 108 and 208 of the bond size or one year of principal and interest. This fund is to be maintained over the life of the bonds and utilized to meet maturing principal and interest in the event that revenues are insufficient for their payment. Monies withdrawn from the debt service reserve fund must be restored to bring it up to the required level. This analysis makes an allowance for both of the above mentioned requirements. These, in combination with the assumptions detailed in Table II, suggest an estimated borrowing requirement of $47,265,000 using fixed rate financing. This translates to debt service payments of $4,006,660 over a 30 year amortization period. The major advantage to this structure is that the interest rate is not only fixed, but also that the bonds usually remain outstanding for their entire maturity, i.e, they are not subject to interest rate adjustments or bondholder "put options." This feature gives Iowa City predictability of future capital costs, making the rate - setting procedures less complex. There is a general acceptance of wastewater system issues in the market, because the market for fixed rate revenue bonds is very well developed. With fixed rate financing, the issues are quick to implement and there is a corresponding high investor demand. Because the bonds are secured by the revenues of the system, General Obligation (G.O.) borrowing capacity is preserved for other purposes. A disadvantage of this financing option is that conventional revenue bonds are costly relative to other alternatives. The fixed interest rate does not permit the City to take advantage of short term market conditions or potential rate decreases. The security of project M.W /97 generated revenue streams makes them more risky than G.O. bonds. A potential variation on this alternative is the use of short-term financing during construction, with long-term fixed rate financing at the completion of construction. State and local governments can avoid the risk associated with delaying a project until long-term interest rates fall by using short-term financing as a "bridge" between beginning work on a long-term capital project and the issuance of long-term debt to finance the project permanently. Long-term debt financing has recently been affected by sharp fluctuations in interest rates which makes decision- making more difficult. In response to the need for increased debt financing in a time of unstable markets, a variety of short-term debt techniques have been created to achieve lower rates and to enable an issuer to issue debt by making its securities more attractive to investors. Examples of these short-term debt techniques, issued in anticipation of some proven source of revenue or refinancing, are Tax -Exempt Commercial Paper (TECP), Variable Rate Demand Notes, and Traditional Fixed Rate notes such as Bond Anticipation Notes (BANs). In the State of Iowa, short-term notes can be issued for a length of time not exceeding the construction period. This approach offers potential savings on interest costs during construction, but includes the risk of not knowing the level of interest rates when long-term financing is required at the completion of the project. MUNICIPAL FIXED RATE GENERAL OBLIGATION BONDS IN COMBINATION WITH FIXED RATE REVENUE Secured by the full faith and credit of the City, G.O. Bonds are economically more attractive than Revenue Bond Issues. The City is authorized to levy on all real property ad valorem taxes, as may be necessary to pay interest and principal on a G.O. Bond. Therefore, holders of these issues do not require the added security of a debt service reserve fund. The end result is a lower financing requirement and a lower cost to the City. From a political stand point, financing with G.O.'s may be less desirable as the G.O. Bond issue will use the total capacity of City's bonding capability. In Iowa, G.O. Bond issues to meet environmental requirements can be issued without voter approval. Furthermore, in Iowa City G.O. Bonds are limited to a 20 year amortization schedule while revenue bonds can be carried out 30 years. The estimated borrowing requirement using a combination of G.O. Bonds and Revenue Bonds is $42,045,000, resulting in debt service of $3,828,430 annually for 20 years and =.In 197 { n $1,890,130 payable over the remaining 10 year life of the revenue bonds. The risks and rewards associated with this financing alternative are comparable to those discussed under the fixed rate revenue bond alternative. However, because the security of general obligation bonds is of the highest quality, the coupon on a G.O. is lower than the coupon on a straight revenue issue. The political mandates of G.O. issues detract somewhat from their favorable economics. There are legal limits to the amount of general obligation debt that a community can have outstanding. Iowa City currently has $35 million in general obligation debt capacity, $20 million of which it is willing to allocate to this project. Because the construction costs associated with Alternative 11 exceed $30 million, the general obligation bonds need to be supplemented with revenue bonds in order to complete the project. Our analysis takes into account the requirement for two issues. C. PRIVATIZATION, FIXED _RATE FINANCING This analysis of fixed rate privatization assumes the availability of tax-exempt Industrial Development Bonds (IDBS) at an average rate of 9.28. This analysis uses the same construction costs as used in the municipal scenarios. Other key assumptions utilized in the analysis are as follows: 1. Annual debt service is based on a 25 year financing. 2. Legal and administrative fees are $330,000, due to the relative complexity of the transaction and the need for a complete service agreement between the City and the privatizer. 3. The debt service reserve fund is 158 of the bond size. 4. Five year depreciable property for tax purposes is estimated at 888 of the estimated construction cost. Eighteen year depreciable property is estimated at 128 of the construction cost. 5. A 10% Investment Tax Credit has been included. 6. The federal income tax rate is assumed to be 468. The effective State tax rate is assumed to be 58. 7. The facility is purchased by the City in year 25 at 508 of original cost. I - 7 - 197 i r t 8. The applicable tax law is that effective in 1984. 9. Bond insurance of 0.88 has been assumed. 10. Property taxes of $536,779/year are payable annually. Given these assumptions, the estimated financing cost of fixed rate privatization is $47,541,000. The corresponding capital charge that results is $4,117,000 payable each year for 25 years. The tax burden associated with payment of annual property taxes results in an increase in revenue requirements. Of the taxes paid by the privatizer roughly $5.37 million accrue to Iowa City over the life of the project. As a result of the accrual the increase in revenue requirements is partially offset. A noneconomic aspect of fixed rate privatization that may be appealing to the City is the necessary transfer of operating risk from City to privatizer. Under privatization, operating risk is passed from the public to the private sector and, if desired, the bulk of the construction risks may also be placed upon the privatizer. Furthermore the privatization transaction can be invisible to the system's users if so desired. The privatizer acts as a wholesaler of the treatment service. Iowa City can still maintain its relationship with its users as the service retailer. Structured in this manner, Iowa City can set management policies regarding rate -setting and system use. Although the City passes operating risk to the private sector, a degree of operating control is also given up. While this is an issue for Iowa City, because the City has an existing public work force, examples of situations in which the existing work force has been incorporated into a privatization transaction are common. D. PRIVATIZATION, VARIABLE RATE FINANCING The analysis of privatization with variable rate financing uses variable rate tax-exempt Industrial Development Bonds. The effective rate used in this analysis is 5.758. As with fixed rate privatization, the same construction costs and schedule as used in the municipal alternatives were used for the variable rate scenario. Other key assumptions utilized in the analysis are described below: 1. Annual debt service is based on a 25 year financing. - 8 - X97 2. A 1/88 remarketing change and a 3/88 fee for liquidity support is added to the interest rate. 3. Legal and administrative fees are $330,000, due to the relative complexity of the transaction and the need for a complete service agreement between the City and the privatizes. 4. The debt service reserve fund is 158 of bond size. 5. Five year depreciable property is estimated at 888 of the estimated construction cost. Eighteen year depreciable property is estimated at 128 of the construction cost. 6. A 108 Investment Tax Credit has been included. 7. The federal income tax rate is assumed to be 468. The effective State tax rate is assumed to be 58. 8. The Facility is repurchased by the City in year 25 at 508 of original cost. 9. The applicable tax law is that effective in 1984. 10. Bond Insurance of 0.88 has been assumed. 11. Property taxes are $536,779/year are payable annually. The total project cost using variable rate IDB's is $45,395,000. This translates to an annual capital charge of $3,297,000 over 25 years. As compared to the other alternative financing approaches analyzed, privatization with variable rate IDB's shows a distinct economic advantage. Despite arbitrage restrictions unfavorable to privatization, use of variable rate IDBs is clearly the least costly alternative to Iowa City. The new innovations in the floating rate financing instruments give a financing source that is structured on a long-term basis but priced on a short-term basis. While restricted by law from issuing its own variable rate debt, the City can still take advantage of low short-term borrowing rates by engaging in a service agreement with a privatizer financing with variable rate debt. The trade-off associated with the low interest rates of a variable rate issue is market risk of interest rate fluctuations. Fluctuations in interest rate make annual debt service costs variable, thus complicating the rate - setting process. Acceptance of risk for interest rate fluctuations can be negotiated with the private sector and can range from total risk being taken by private sector to total risk taken by the City. The various scenarios for - 9 - • /97 i the allocation of this risk will have to be explored by the City's legal advisors to determine any legal limitations associated with risk allocation. Obviously Iowa City would want to avoid swings in rates that would occur if the City tried to match rates to the debt service. Because of bond covenants, however, rates must cover the annual interest and principal due, with an additional coverage factor for security. To avoid rapid fluctuations in rates, Iowa City could establish an interest rate stabilization fund. This fund could be utilized if interest rates increased (or replenished when interest rates declined). Using a stabilization fund, Iowa City could mitigate fluctuations in its user rates. Market risk could also be mitigated by conversion to a fixed rate issue at a favorable rate. In good markets, this rate could potentially be even lower than in today's market. III.2 ANALYSIS - PART 2 Recognizing that one of the advantages of Privatization is its ability to allow the public sector to benefit from private sector efficiencies, two additional analyses have been performed that take this into account. Typically the Private sector can use to its advantage economies of scale that come with experience and size of operations. Often the resources available to private industry result in efficiencies of time as well. For the purpose of this analysis, only a cost savings due to privatization has been assumed. Based on recent Metcalf & Eddy experience, a five percent construction cost savings has been incorporated into this analyses of the privatization approach. The results of this change follow: Project Cost Annual Capital Charge Fixed Rate Privatization $45,171,000 $3,937,000 Variable Rate Privatization $43,133,000 $3,152,000 IV SUMMARY In this section Table III is provided to summarize the projected financing alternatives quantitatively. Figure 1 shows the relationship between the four alternatives. In Figure 2, the Privatization alternatives assuming 5 percent construction savings have been added. A comparison between the best cases of private and public financing are shown in Figure 3. Also provided in this section are qualitative comparisons between each of the alternatives. - 10 - 197 i st rM'aiAiaaR\.SaHt \avtwaitt a\iv\a!uan.A.VGaO: a.. a'.. avaaawanv.�A�:«viii..�.�.v.Y.arav�....v�.�.YYJ.vnHnn}•.�n'�' Based on the annual revenue charges presented in Table III along with annual operation and maintenance costs, the impact on user charge rates can be estimated. Table IV summarizes the impact of each financing method on the current user charge rate. The user charge rate is projected to increase in a range of 3.2 to 3.9 times the current rate based on the financing method selected. If Revenue bonds are selected, the minimum nonthly charge for sewer service will increase from the current $3.25 to $12.35. This increase in cost of service is illustrated in Figure IV. Figure IV shows the cost of service for maintaining the current level of service as well as providing increased capacity, stormwater treatment capability and upgrading of current service to meet environmental regulations. 1 T Annual Relevant Cost Capital Charge f. $47,265,000 $4,008,860 Yr 1 - Yr 30 $42,045,000 $3,828,430 I 1 1 - Yr 20 i i I i vtanliaavavay.+yyyl\\M �a\\vavaty .a+y+.Yu:A.::::f:+a\\\a�++++.�.+A.+.«:e:.+r.yv.v.w�wn�.yvm�F.v.•mv.•.vyy^r' Table III Summary of Project and Financing Charges Financing Alternative Municipal Fixed Fate Revenue Bond G.O. Bond/Fixed Fate revenue Bond Fixed Rate Privatization Variable Rate Privatization Fixed Fate Privatization w/ Oonstructicn Oost Savings Variable Rate Privatization W/ construction Oust Savings Total Project Annual Relevant Cost Capital Charge Tine -Period $47,265,000 $4,008,860 Yr 1 - Yr 30 $42,045,000 $3,828,430 Yr 1 - Yr 20 $1,890,130 Yr 21 - Yr 30 $47,541,000 $4,117,000 Yr I - Yr 25 $45,395,000 $3,297,000 Yr 1 - Yr 25 $45,171,000 $3,937,000 Yr 1 - Yr 25 $43,133,000 $3,152,000 Yr 1 - Yr 25 t Table IV Use Charge Rate for Financing Alternatives 1. Includes current debt service due in 1988. - 13 - 197 1 Annual Financing Operating Debt Revenue Rate Method Cost Service Requirement Multiplier Municipal Fixed Rate $1,335,400 $4,491,889 $5,827,289 3.8 Revenue Bond G.O. Bond/Fixed Rate 1,335,400 4,311,459 5,646,859 3.7 Revenue Bond Fixed Rate 1,335,400 4,600,029 5,935,429 3.9 Privatization Variable Rate 1,335,400 3,780,029 5,115,429 3.3 Privatization Fixed Rate 1,335,400 4,420,029 5,755,429 3.8 Privatization w/Construction Cost Savings Variable Rate 1,335,400 3,635,029 4,970,429 3.2 Privatization w/Construction Cost Savings 1986 Base Budget $ 983,358 $ 552,435 $1,535,793 1.0 1. Includes current debt service due in 1988. - 13 - 197 1 T Iowa City I �M+nXittaafaYSalav \v\N as\ta\\vvv!wanw'/wni.Ni::: rp•a\v\aa+_+wrA.::...:Fwwwr`.w.v.vnwnu..w.aO.µvnwsaw•.•.++ G.O. Bond/Rev. Bond 4000 -- - - - -- - - - - - - - - - - - - - - -- - -- _..� _—.. _ .^.-- ---.� _._ - -- ......... .............................................. .— Iowa City Fixed Rate Rev. Bond 3500 FIGURE 1 IOWA CITY Financing Alternatives Compared Annual Capital Charge ($000's) 4500 r Iowa City �M+nXittaafaYSalav \v\N as\ta\\vvv!wanw'/wni.Ni::: rp•a\v\aa+_+wrA.::...:Fwwwr`.w.v.vnwnu..w.aO.µvnwsaw•.•.++ G.O. Bond/Rev. Bond FIGURE 1 IOWA CITY Financing Alternatives Compared Annual Capital Charge ($000's) 4500 r 1500 Project Year Iowa City G.O. Bond/Rev. Bond 4000 -- - - - -- - - - - - - - - - - - - - - -- - -- _..� _—.. _ .^.-- ---.� _._ - -- ......... .............................................. .— Iowa City Fixed Rate Rev. Bond 3500 Privatization 3000 Variable Rate 2500 Privatization Fixed Rate 2000 7 1500 Project Year FIGURE 2 IOWA CITY Financing Alternatives Compared Annual Capital Charge ($000's) 4500 r -- — — ----------------- 4000 r ........................ ......3500 3000 2500 4 t t 2000 ...................... 1500 N N N N N Project Year (1) Assumes 5% Construction Cost Savings Privatization Variable Rate (i) Iowa City G.O. Bond/Rev. Bond Privatization Fixed Rate (1) ................. Iowa City Fixed Rate Rev. Bond Privatization Variable Rate Privatization Fixed Rate j I i �yl \\\aaJFaa\+\+\Hoa\att\a+vLaMnn.:wn.J:::l'Y+\'.++...w.�.wtw...isw.+.vwwv.v.tv..wv.w..1..�.Yna..rv�.a•n.' ;J '1 FIGURE 2 IOWA CITY Financing Alternatives Compared Annual Capital Charge ($000's) 4500 r -- — — ----------------- 4000 r ........................ ......3500 3000 2500 4 t t 2000 ...................... 1500 N N N N N Project Year (1) Assumes 5% Construction Cost Savings Privatization Variable Rate (i) Iowa City G.O. Bond/Rev. Bond Privatization Fixed Rate (1) ................. Iowa City Fixed Rate Rev. Bond Privatization Variable Rate Privatization Fixed Rate j I i �yl \\\aaJFaa\+\+\Hoa\att\a+vLaMnn.:wn.J:::l'Y+\'.++...w.�.wtw...isw.+.vwwv.v.tv..wv.w..1..�.Yna..rv�.a•n.' FIGURE 2 IOWA CITY Financing Alternatives Compared Annual Capital Charge ($000's) 4500 r -- — — ----------------- 4000 r ........................ ......3500 3000 2500 4 t t 2000 ...................... 1500 N N N N N Project Year (1) Assumes 5% Construction Cost Savings Privatization Variable Rate (i) Iowa City G.O. Bond/Rev. Bond Privatization Fixed Rate (1) ................. Iowa City Fixed Rate Rev. Bond Privatization Variable Rate Privatization Fixed Rate j I FIGURE 3 IOWA CITY Public vs Private Capital Charge Comparison Best Case Basis Annual Capital Charge ($000's) - 4500 Project Year IPrivatization case assumes 59 const cost savings -- Privatization Variable Rate Iowa City G.O. Bond/Rev. Bond y tialu{iaJ.\\a\\\\Mv.a\\uti a\a<a.ivawMiNJJllYtitaYiauu..wwMM:wwY�x.'.vv'.•.uv/xx�u J/vu•I`MxM1YMMu+'�' FIGURE 3 IOWA CITY Public vs Private Capital Charge Comparison Best Case Basis Annual Capital Charge ($000's) - 4500 Project Year IPrivatization case assumes 59 const cost savings -- Privatization Variable Rate Iowa City G.O. Bond/Rev. Bond EXISTING FACILITIES $3,25 (26S) $3.84 (31%) STORMWATER TRANSPORT & TREATMENT SYSTEM REHABILITATION OF EXISTING FACILITY $3.96 (32x) FIGURE IV USER CHARGE BREAKDOWN TOTAL MINIMUM CHARGE = $12,35 NOTE: THIS IS THE MONTHLY CHARGE RATE THAT WOULD BE ASSOCIATED WITH THE MUNICIPAL FIXED RATE REVENUE BOND FINANCING METHOD INCREASED TRANSPORT B TREATMENT CAPACITY YCTCALI n COOT I The following sections describe the qualitative aspects of the financing methods: A) Municipal Fixed Rate Revenue Bond Financing i Advantages• o Predictability of future costs due to fixed long-term interest rate. o Market acceptance of issues due to creditworthiness of system and general acceptance of wastewater system issues; corresponding high investor demand. o No reliance on G.O. credit, preserving borrowing capacity for other purposes. o Typically does not require voter approval. o City retains operating control of the facility. o City can contract out 0&M and associated performance risks. o City can capitalize on arbitrage opportunities. o Quick to implement. Disadvantages: o Fixed interest rate does not permit City to take advantage of short-term market conditions or potential rate decreases. o City bears construction risk. o City may bear 0&M performance risk. B) Combined Municipal Financing using G.O. Bonds and Fixed Rate Revenue Bond. Advantages o Lower interest cost than complete revenue bond financing. o Predictability of future costs due to fixed long-term interest rate. - 16 - 197 r i _RVNN\aaa ate•ata\a\M......aa\a�taaa.vN.�N. Ji:: .l-. a\aaaMMa����ninnnin..vw�.v aw.a ..nnW`Mvnw.w. I. o Market acceptance of issues due to creditworthiness of system and general acceptance of wastewater system issues; corresponding high investor demand. o City retains operating control of the facility. o City can contract out 06M and associated performance risks. o City can capitalize on arbitrage. o Quick to implement. o No debt service reserve fund requirement for the general obligation portion. Disadvantages; o Fixed interest rate does not permit City to take advantage of short-term market conditions or potential rate decreases. o City bears construction risk. o City may bear O&M performance risk. o Uses G.O. credit that might be better used elsewhere. C) Fixed Rate Privatization Advantages• o Resulting capital charges are competitive with public approaches. o May be stuctured as a fixed capital charge to the City. o Public bonding capacity is preserved for other uses. o Operating risks are passed to the private sector. o Contract may be structured to place bulk of construction risks on the private sector. o Arrangement does not require voter approval. - 17 - 197 �q ■ l:\M....... a:. ......'.v`+..:v.w.... rrvv h.Y.v.:v..w•..� i I i I Disadvantages: I O Operating control is passed to private sector, O Detailed contractual arrangements must be negotiated, lengthening the time of implementation. D) Variable Rate Privatization Advantages: o Lowest cost alternative due to combined factors Of tax benefit sharing and lower short-term interest rates. o Operating risk is passed to private sector. o Public bonding capacity is preserved for other purposes. o Contract may be structured to place bulk of construction risk on the private sector. Disadvantages: o Higher level of market risk compared to fixed rate financing. o Operating control is passed to private sector. o Enabling legislation may be required. o Detailed contractual arrangements must be negotiated, lengthening the time of implementation. V RECOMMENDATIONS The results of this analysis favor the economics of variable rate financing. Because public use of floating rate debt is not a legal alternative in Iowa, the benefits of this low cost alternative can only be realized in a service contract with a private sector entity. If cost were the only basis for decision making, variable rate privatization would be the obvious choice. However, the risks associated with this approach may detract from its economic attractiveness. The overall savings available to the City is dependent upon the level of risk for interest rate fluctuations reter City's exposure ntotincreasing tinterest srates, thealessthe attractive is variable rate privatization. - 18 - i 197 4 ei.......................... ..:..._.....„.. ....... ..... ........�.. ».• In assessing the City's alternatives it appears that fixed rate privatization is only more economical than fixed rate municipal financing if one assumes that the private sector will construct the facility at 95% of its cost to the City. The economics of the public alternative using a combination of General Obligation and Revenue Bonds at fixed rate is more compelling than fixed rate privatization, provided the bonding capacity of the City can be allocated to the project. i Recognizing that cost is only one criterion for decision- making, some of the less tangible characteristics of each alternative have been evaluated. Based on an assessment of these other variables, it is recommended that the City consider privatization further in light of the discussion that follows. i While it is acknowledged that Privatization may not be economically viable for all communities,it is a promising alternative for Iowa City. In Iowa City's situation, some of the factors which come together to provide privatization's economics were not assumed in the financial analysis. In addition to the probability of construction cost savings, the potential exists for time efficiencies and O&M savings. The financial creativity and flexibility characteristic of many private financi have also been excluded from the analysis. In mostngs instances creative approaches result in increased savings. Finally, the liability of the privatizer for property taxes other than those imposed by the City tends to bias the analysis against privatization. This added tax burden detracts from the level of savings that can be offered and ignores the benefit of these added tax collections to the City. Privatization scenarios that consider the benefit of increased tax revenues to the City could be expected to show savings when compared to various public approaches. This report evaluated the financial aspects of expanding wastewater treatment service to the City. In this context, privatization is a favorable alternative. However, other factors other than finances are critical to the decision making process. If for reasons unrelated to economics and risk the City prefers traditional public finance to privatization, Alternative B, the G.O./revenue bond combination is the recommended approach. - 19 - /97 City of Iowa City MEMORANDUM Date: January 2, 1986 To: Neal Berlin and City Council From: Chuck Schmadeke Re: Wastewater Facility Construction Metcalf & Eddy, the City's wastewater consultant, has presented five processes for constructing the proposed improvements to the City's waste- water treatment and collection system. The. five processes are the tradi- tional, program management, fast track, turnkey and privatization. These five processes are discussed in detail in the report titled "Implementa- tion Method Alternative 11" dated November 25, 1985. In order to select the most appropriate construction process, it is neces- sary to first decide whether or not the improvements should be constructed now or phased over a period of several years. Phasing the project, for example, may discourage privatizers, and reducing the size of the projects through phasing may eliminate consideration of the program management process. Iowa City's proposed wastewater facility improvements (alternative 11) accomplishes three major goals: 1) meet wastewater treatment plan efflu- ent standards established by the Environmental Protection Agency and the Iowa Department of Water, Air and Waste Management and provide sufficient capacity for the next 20 years; 2) eliminate flooding caused by sanitary sewer collection system surcharging; 3) improve the collection system in the southeast area of the city to serve future residential and industrial demand. The proposed improvement costs and effects are as fol Tows: A. Existing treatment plan improvements ($9,993,247) - Meets EPA and IDWAWM effluent standards. B. Sand Road treatment plant ($9,309,437) - Provides treatment capacity to satisfy the 20 -year demand and relieves surcharging and basement flooding. C. Southeast interceptor sewer ($7,627,212) - Relieves surcharging and basement flooding in the Rundell Street area and Fairmeadows area and provides for additional growth in the southeast area. D. Northern portion of the southeast interceptor sewer (;3,991,060) -Relieves surcharging and basement flooding in the east side area. E. University Heights sewer (512,469,022) - Relieves surcharging and surfacing flooding in the Benton Street area east of Greenwood Drive. �r ti1 qty\�taa\atal.v\v.............. ..:...... ..ar �Y�. • ..w :.. I..v.YAY.ma. Page 2 The only advantage of phasing construction of the improvements over several years' is to minimize the initial increase in user fee. Effluent standards must be met by July of 1988, so existing treatment plant improvements must be included.in the first phase. Attached is a copy of a letter from Metcalf & Eddy listing required increases in user fees to construct the improvements using various financing alterna- tives and required increases in user fees with no construction phasing, five year phasing, and ten year phasing. The temporary solution to the Rundell Street sewer problem mentioned in the letter involves constructing the Pine Street lift station, and a 27 -inch sewer along Highway 6 to the existing treatment plant. The cost of the 27 -inch sewer is estimated at $2,200,000 and it would be abandoned after completion of the second phase. This matter is scheduled for informal discussion on January 21, 1986, with the ad-hoc committee. Your decision is needed before the committee proceeds further with discussion of the.process for implementing the construction. bcl cc: Wastewater Treatment Plant Review Committee n r 0 . • , u" R. Metcalf &Eddy, Inc. Engineers 8 Planners 05 W. Algonquin Hone. Suite 500 Aeinglon Me:ghls, Illinois 60005.4422 December 10, 1985 (312)226-0900 Mr. Charles Schmadeke, P.E. Director of Public Works City of Iowa City 410 East Washington Street Iowa City, Iowa 52240 Dear Mr. Schmadeke: This letter summarizes our review of revenue stream requirements and the resulting impact on user charge rates as requested at our meeting on December 5, 1985. Table I shows the relationship between the existing user charge and the user charge resulting from construction of the entire project (Alternative 11) under the six financing methods. As shown in this table, the user charge rate must increase between 3.2 to 3.9 times the current rate. I i Additionally, Alternative 11 has been evaluated by constructing the project in two phases. The initial phase involves the improvements at the existing plant along with the northern I portion of the southeast interceptor and a temporary solution to the Rundel Street sewer problems. The second phase involves the remainder of the project along with a permanent -solution to the Rundel Street problem. Table II summarizes these findings for j both a 5 and 10 year phasing schedule. We hope this review provides the required information. We are prepared to discuss these findings at any time. Yours very truly, Loren W. Leach Project Manager LWL:tpw I I i. ti VMiii\vaaa aa!a.\. \.♦w ct+1 a :i vva!vaw:.+,r.�A•::::.:...waa......�_M.........:...-.....a ...r.....v:..+�n .•nw.vn nr Table I Use Charge Rate for Financing Alternatives Financing Operating Debt Annual Revenue Rate Method Cost Service Requirement Multiplier Municipal Fixed Rate $1,335,400 $4,491,889 $5,827,289 3.8 Revenue Bond G.O. Bond/Fixed Rate 1,335,400 4,311,459 5,646,859 3.7 Revenue Bond Fixed Rate 1,335,400 4,600,029 5,935,429 3.9 Privatization Variable Rate 1,335,400 3,780,029 5,115,429 3.3 Privatization Fixed Rate 1,335,400 4,420,029 5,755,429 3.8 Privatization w/Construction Cost Savings Variable Rate 1•,335,400 3,635,029 4,970,429 3.2 Privatization w/Construction Cost Savings 1986 Base Budget $ 983,358 $ 552,435 $1,535,793 1.0 1. Includes current debt service due in 1988. ■ Year 1988 1993 1998 2003 Table II User Charge Mutiplier for Phasing Multiplier No 5 Year 10ear PhasingPhasingPhasin 3.8 2.3 2.3 4.1 4.4 2.5 4.4 4.8 5.2 4.6 5.2 5.7 1 . A_1 '4 n rt V.�tvAavaaaw!♦�a'.l\\'v.aa'.\aa�a\a!avvvnMiN: J:: Y::\'.ww\w--ar��..I....."nii:rv..va+..v..w....v�...F.v.v.wv.�.�rvwt�+' M City of Iowa City MEMORANDUM DATE: January 16, 1986 TO: City Council and City Manager FROM: Frank Farmer, City Engineer �i-V, RE: Parking Ramp 'B" - Dubuque Street The west elevator of Parking Ramp 'B" is scheduled to be in operation on February 10, 1986. At that time, the east elevator will be closed for approximately three weeks to adjust the elevator for additional floor operation. Signs stating that the west elevator is closed are posted on the ticket spitters at the west entrance. Signs will also be posted at the east entrance. Neither Parking Systems nor Engineering have received any complaints with regard to handicapped accessibility. City of Iowa City MEMORANDUM Date: January 17, 1986 To: Dale Helling, Assistant City Manager Rosemary Vitosh, Finance Director From: Terry Reynolds, Equipment Superintendent Re: FY87 Equipment Replacement / Below is a breakdown and explanation of major equipment tentatively sched- uled in our nine-year replacement schedule to be replaced in FY87. Equipment tentatively scheduled to be replaced in FY87: 1 - Subcompact Auto E 6,900 2 - Compact Pickup Trucks 18,000 3 - 3/4 Ton Trucks 36,000 1 - 1 Ton Truck 16,300 2 - 2 Ton Trucks 91,000 1 - Backhoe 40,100 6 - Snowplows 36,600 1 - Air Compressor 15200 1 - Medium Tractor 10,100 1 - Concrete Saw 7,600 1 - Vibratory Roller 10,100 1 - Tower Truck 35,500 1 - Compactor/Roller 38,000 1 - Trencher 10,100 1 - Boom Truck 49,700 5421,200 The equipment is broken down by type, with a brief explanation as to condition, etc. Please keep the following in mind when reading through the explanations: 1. Because of the nearly 100% stop and go city driving conditions and type of use, the engine mileage on these cars and trucks is approxi- mately double the odometer mileage. 2. A final decision whether or not to replace an individual piece of equipment is not made until the fiscal year in which it is scheduled for replacement. Actual replacement of equipment may be moved ahead or back, depending on condition at the time bids and specifications are to be drawn up. The condition of equipment is monitored constantly, allowing us to replace some equipment earlier than sched- uled and some later than scheduled based on condition and operating cost of each individual unit. ao� VT �`1 h�A vvvaa vva.a.v.♦.v..�v.va.a..a .va�wNi,a, .. ..-. ... ..a .a 3. Most new equipment should last as long or longer due to our improved preventative maintenance program begun in 1979. It is vital that adequate preventative maintenance be performed from the time a vehicle is new if maximum useful life is to be obtained. One (1) subcompact auto to replace a like vehicle (No. 533 at Recreation). No. 533 was scheduled for replacement in FY86 but was moved to FY87 due to its condition at the time. This car is showing wear now and should be replaced. It is an a projected seven year life cycle and has approximate- ly 28,000 miles on the odometer. The operating cost for this vehicle is now higher than the average for like units. i Two (2) compact pickup trucks to replace two (2) full-size 1/2 ton pickup trucks (No. 103 at the Landfill and No. 124 in the Equipment Division). i No. 103 is a 1977 model with 55,000 miles on the odometer and is showing signs of wear both physically and mechanically. It is on a projected 10 year life cycle. The operating cost for this truck is now running higher than the average for like units. No. 124 is a 1978 model with 48,000 miles. -on the odometer and is on a projected 9 year life cycle. It is mechanically good but is starting to rust in the box and floor area. This truck might be retained for another year if we spend about $200 to repair - the rust spots. Currently this appears to be a cost effective alterna- tive. Three (3) 3/4 ton trucks to replace like vehicles (No. 15 at the Water Division, No. 179 in the Equipment Division, and No. 886 at the Park). No. 15 is a 1979 model with 45,000 miles on the odometer and is on a projected 8 year life cycle. It is in poor physical condition and only fair me- chanical condition and should be replaced. It's operating cost is higher than the average for like units. No. 179 is a 1978 model with 29,000 miles on the odometer and is on a projected 9 year life cycle. It is in good mechanical condition but is showing physical wear. This unit has received body work in the last 2-3 years due to rusting and further dete- rioration is now occurring. This truck might be retained for at least one more year if we spend about $300 to repair the rust. Currently this seems to be a cost effective alternative. No. 886 is a 1979 model with 35,000 miles on the odometer and is on a projected 8 year life cycle. It is in good mechanical condition but only fair physical condition and is showing body rust. This truck could probably run one more year with no major increase in operating cost, which is now running a little below the aver- age for like units. No body work would be done. One (1) one ton truck to replace a like unit (No. 7 at the Water Divi- sion). This is a 1978 model on a projected 8 year life cycle with 34,000 miles on the odometer. It was scheduled for replacement in FY86 but moved to FY87 due to condition. This truck is in good mechanical condition but only fair physical condition. It also has a large gasoline engine that gets poor fuel mileage. In order to extend the life of this truck, the truck body would have to be repaired at a cost of about $500 and the util- ity body would have to be repaired or replaced at an additional cost of $1,000 (repair cost) or $6,000 (replacement cost). It would not be cost effective to keep this truck any longer. a 0 Vim.,..;......... .,...«.......,. .....�..... ......... ...... A..................... Two (2) two ton trucks to replace like units (No. 211 at Forestry and No. 918 at the Park). No. 211 is a 1978 model with 23,000 miles on the odome- ter and is on a projected 10 year life cycle. This truck is in good condition both mechanically and physically and will probably be retained for another year. No. 918 is a 1976 model with 41,000 miles on the odometer and is on a projected 10 year life cycle. It is in good mechani- cal condition but shows some physical wear. Although it was used in the past to plow snow, the front end is too light for continual use in this area. This truck may be retained for another year if not used to plow. The operating cost for both trucks is less than the average for like units. One (1) backhoe to replace a like unit (No. 415 at the Cemetery). This is a 1972 model with 2,200 hours on the meter and is on a projected 10 year life cycle. It is in reasonably good condition both mechanically and physically for its age but is showing wear. It has served well beyond its replacement cycle. Operating costs are going up dramatically on this machine and it should be replaced. Six (6) reversible angle snow plows to replace like units (Nos. 226, 246, 242; 251, 258 and 908 at the Street Division). Nos. 226 and 246 are large endloader mounted plows. No. 226 is a 1979 model and No. 246 is a 1978 model. These plows will be reinspected in the summer to make a final determination on replacement. Nos. 242, 251, 258 and 908 are 1978 models and are showing considerable wear. All the above plows are on a projected 8 -year life cycle. Nos. 226 and 246 are in good condition and will proba- bly be retained for another two to four years. Nos. 242, 251, 258 and 908 have bent and worn moldboards and should be replaced. One (1) air compressor to replace a like unit (No. 14 at the Water Divi- sion). This is a 1973 model with 500 hours on the meter and is on a projected 8 -year life cycle. This compressor was scheduled for replace- ment in FY86 but was moved to FY87 due to condition. The operating cost is going up on this unit, it is showing wear and should be replaced with a more efficient unit. Alternatives to replacement with a new unit will be explored, including shared use with other City operating divisions. One (1) medium tractor to replace a like unit (No. 267 at the Landfill). This tractor is a 1972 model with 1,600 hours on the meter and is on a projected 15 year life cycle. It is in only fair condition both mechani- cally and physically, its operating costs are rising substantially and it should be replaced with a more efficient diesel unit. Currently it is necessary that gasoline be carried to the Landfill to fuel this unit. One (1) concrete saw to replace a like unit (No. 268 at Traffic Engineer- ing). This is a 1970 model and is on a projected 17 year life cycle. It is showing wear and will be replaced with a smaller, more easily maneuver- able machine. The operating cost of this machine increased substan- tially in FY85. One(1) vibratory roller to replace a like unit (No. 266 at the Street Division). This is a 1977 model with almost 500 hours on the meter and is on a projected 10 year life cycle. It is in good condition and will be inspected in the summer to make a final decision regarding its replace- ment. It will likely be retained for another year or more. M. 0 c 4 One (1) tower truck to replace a like unit (No. 315 at Traffic Engineer- ing). It is a 1979 model with 20,000 miles on the odometer and is on a projected 8 year life cycle. The truck is in very good condition but the lift assembly is showing wear. This unit will be reinspected before a final decision is made on replacement of all or part of it. It could probably be retained for another one to two years if $500-51,000 were spent on the lift assembly. One (1) rubber -tired compactor/roller to replace a like unit (No. 203 at the Street Division). This is a 1970 model with 2,500 hours on the meter and is on a projected 17 year life ,cycle. This unit was purchased used in 1978 and is showing wear both physically and mechanically. This ma- chine will be repaired and retained or replaced with another used unit, depending on the estimated future use and the operating cost. It would not be cost effective to purchase a new unit. One (1) trencher to replace a like unit (No. 214 at Traffic Engineering). This is a 1970 model and is on a projected 17 year life cycle. This ma- chine is starting to show signs of wear both mechanically and physically. It is, however, in reasonably good condition. It will be inspected in the spring before a final decision is made on replacement. Currently, it appears this unit could be retained for another year. One (1) hydraulic boom truck to replace a like unit (No. 270 in the Equip- ment Division). This is a 1972 model with 12,000 miles on the odometer and is on a projected 15 year life cycle. It is in good condition and will be retained for at least another one to two years. /sp aoo City of Iowa City MEMORANDUM Date: January 16, 1986 To: City Council From: Rosemary Vitosh, Director of FinanceQw+..,..iV� Re: Free Bus Passes for Low Income Elderly Citizens The Council has given approval to the establishment of an Elderly, Transit Fee of 259. This fee will not be assessed low income elderly citizens. A current City program which has been in effect for several years provides free refuse service to low income residents. It is proposed that the free refuse program criteria be used for determining eligibility for free bus permits to the low income elderly. This criteria would allow low income residents who are 60 years of age or older and who qualify for any of the programs listed below to sign up for a free bus pass. Each individual must be eligible under the low income crite- ria of one of the following programs: Supplementary Social Security Bene- fits; Title XX Program; Food Stamp Program. In addition, those individuals who qualify to file an Iowa Disabled and Senior Citizen Property Tax and Rent Disbursement Claim with the State can present a copy of the form most re- cently filed to show eligibility. A release of information form, available at the Civic Center or Senior Cen- ter, must be signed and will be used to verify the individual's participation in a program with the proper agency. With this criteria, the City is relying on state and federal guidelines from agencies which deal regularly with programs based on financial need. In this way, the City is not put in the position of reviewing confidential income data and of deciding who is "low income." To allow time to properly publicize this program for free bus passes for the low income elderly and to sufficiently train volunteers at the Senior Center, I am recommending that the implementation date for the elderly rate be March 1, 1986. bj4/7 �O/ { I City of Iowa City _ MEMORANDUM DATE: January 17, 1986 TO: City Council FROM: Rosemary Vitosh, Finance Director G1&4p� RE: FY87 Budget - Recreation Attached is a letter from the Johnson County Arts Council regarding their expanded service level request in the Recreation Division's FY87 Proposed Budget. The new request adds $1000 from City funds; please refer to the attached expanded service level for $5170 in- stead of the one on Page 191 of the FY87 Proposed Operating Budget. ce ct�;4r bs Ceaf r - Iowa ON / Johnson County Ms Council Lower Level. Jefferson Bldg. 319.337-7447 129 E. Washington Iowa City, Iowa 52240 December 22, 1985 r j Joyce Carroll, Acting Director Lee Community Recreation Center 220 S. Gilbert St. Iowa City, IA 52240 Dear Joyce: I am writing because I have to make an adjustment to our budget request to the city. At the very end of the request I described the Community Partnership Incentive Grant program of the Iowa Arts Council and how we could apply for $1,000 from the IAC if we received at least $1,000 from the city. Unfortunately I have just now found out that this is not the case. About a week ago I discovered that the Iowa City/Johnson County Arts Council had received a grant under this program from the IAC in fiscal 1980. According to the IAC rules, an arts council is eligible to have three successful requests for assistance from this program within a five year period. We have now exceeded the five year rule and are no longer eligible to apply. The upshot of all this is that we cannot get any matching funds from the IAC for our budget request. Whatever we have requested from the city in the way of support must come entirely from the city. So, instead of requesting $4,170.12 from the city, we must now request $5,170.12. I hope that I have explained this satisfactorily. It is ja very complicated situation, and I apologize for having to bring this up at the last minute. If you have any questions, or need more information, please let me know. I will be out of town from Dec. 24 - January 1. I hope you have a happy holiday! Sipcerely, June C. Fischer President i - aD.Z a d FORM 4 EXPANDED SERVICE LEVEL F Y 8 7 REVISED 1/7/86 ACCT. is 1610.0 0EPARTMENT/O1V1S10N: Parks & Recreation/Recreation Use this sheet as a worksheet. Be sure to include the costs with your description. Dictate from this worksheet to Word Processing. WPC will return it to you. You should submit a copy along with the other budget forms to Finance. DESCRIPTION: REVISED DECEMBER 2, 1985 Iowa City/Johnson County Arts Council Project #1 — Paper/Fiber Exhibition 187 $1,335.00 Project N2 — Artsfest 187 1,249.00 Project N3 - Videotaping of the Artists Forum 2,166:00 Project B4 - Membership Brochure 420.00 , a 5,170. WHY SHOULD THIS EXPANDED SERVICE LEVEL BE FUNDED? COST $5,170.00 The Iowa City/Johnson County Arts Council has requested assistance through the budgetary process as directed in 1985 by the City Council. The Arts Council has approached the Parks and Recreation Commission and now requests $4,170.00 to continue two widely recognized events; (a) Paper Fiber and (b) Arts Fest. It should be of particular interest to the Council that the Iowa City Recreation Division is currently a co-sponsor of the Arts Fest Program and that for four years has provided assistance, as reasonably possible. This program has flourished and is now a well-known event throughout Iowa. In order to make monthly exhibitions available to a wider audience, the Arts Council monthly exhibits includelans to da . They e and ralso �request t via aassistance toble their tdevelop ists rtheir amember- ship drive in an effort to maintain current members and solicit new. o,?d .2, A City of Iowa City MEMORANDUM DATE: January 17, 1986 TO: City Council FROM: Kevin O'Malley, Assistant Finance Director ' RE: Projected Cost Increase in the Park & Shop Program A question was raised concerning the effect on the Park & Shop Program caused by the increase in parking rates which was approved by Resolution at the January 14th meeting. The pro- jected hours of use of the Park & Shop Program for FY86 is 367,773 hours. The projected cost increase to the merchants in the pro- gram, with the lOt/hour increase, would be $36,777 over a 12 month period. An estimate of the Park & Shop revenues for a 12 month period is $110,332 at the previous rate of 300hour and $147,109 at the approved rate of 40d/hour. City of Iowa City MEMORANDUM Date: January 17, 1986 To: Mayor Ambrisco and City Councilmembers From: Margaret Nowysz, Chair, Historic Preservation Commission W,9 Re: 1985 Historic Preservation Commission Awards Program The Iowa City Historic Preservation Commission's 1985 Historic Preservation Awards Program will be held on Thursday, January 23, 1986, at 7:00 PM in the Civic Center Council Chambers. Members of the Iowa City City Council are cordially invited to attend. This is the third annual awards program sponsored by the Commission. In 1983, the Historic Preservation Commission recognized three preservation projects which represented historically and architecturally sensitive reha- bilitation to buildings' exterior features. Four awards were presented in 1984. The judges selected to critique the applications for this year's program are Robert Harvey, Professor of Landscape Architecture at Iowa State University, Jim Jacobsen, National Register Coordinator for the State of Iowa, and Todd Mozingo, an architect from Indianapolis, Indiana. If you have any questions, please do not hesitate to call me or Monica Moen, at 356-5247. The Commission looks forward to seeing you on January 23. tp4/8 024 T %0 CITY OF I O WA CITY CIVIC CENTER 410 E. WASHINGTON ST. IOWA CfrY, IOWA 52240 (319) 356-5000 January 16, 1986 Neal Berlin, City Manager City of Iowa City ! 410 E. Washington St. f! Iowa City, IA 52240 Dear Neal: r Please accept my resignation from the position of Human Relations Direc- tor, effective February 7, 1986. I have accepted the position of Human Resource Manager with National Computer Systems in Iowa City. I will always be grateful to you for the opportunity you gave me in ap- pointing me to this position five and one-half years ago and I have learned a great deal from working with you. I can still remember when beginning in this position how impressed I was with the City organization and City staff and this impression has not changed. There isn't a bunch of people anywhere like this bunch and it's been a lot of fun. Thank you. Sincerely, Anne Carroll Human Relations Director bc4 1.....aw.„.....„....... ..... ...a....:,..........:..:::...............--�....,:..,........................,......::..•...�,...... City of Iowa City MEMORANDUM DATII December 31, 1985 TO: Iowa City - City Council per: City Clerk RE: Beer/Liquor License/Conditional Approval FOR YOUR INFi 9/10/85 Couni for Sunday S; the 90 -day p: to retain thi M -u.::<,.....,........ ............. ....,�....,....:::::__.... city of Iowa City MEMORANDUM "fli January 13, 1986 i0: Iowa City - City Council FROM: Marian K. Karr, City Clerk �tr RE: Seer Permit/Sunday Sales Conditional Approval FOR YOUR INFORMATION -- Conditional approval was given at the 9/10/85 Council meeting to Country Kitchen, 1402 S. Gilbert for Sunday Sales/Beer Permit. They have submitted, after the 90 -day period, the required information which allows them to retain their permit. err..:n.................._.........................:.....................�c.�......�.......... January 16, 1985 Mr. Mickey Lauria, Chairperson Committee on Community Heeds City of Iowa City 410 H. Washington Street Iowa City, Iowa 52240 Dear Mr. Lauriaz F o L E JAN I J .1416 CITY C FRK As a Senior Center Commissioner, I received a copy of your December 20, 1985 letter to our chair, Bill Cain. Although disappointed in your decision not to fund the volunteer specialist position, I can understand the need to prioritize during the economic crista. What I, personally, find difficult to understand is your assessment that a part-time volunteer would adequately asaume the responsibilities of a volunteer specialist. As a former volunteer coordinator for the Hancher Gift Shop, I can assure you that coordinating volunteers is a difficult and time consuming process. Recruiting, training, scheduling, and supporting our scall cadre of 20 volun- teers took hours of work. Many volunteers, once scheduled would charge their minds about working at the last minute, leaving the gift shop unattended. AS a volunteer coordinating other volunteers, I resigned after one year, promising never to place myself in such a thenklesa position again. Three years ago I became a Senior Center volunteer, facilitating the Alzhelmerrs Support Group. The Senior Center staff provided as much support as possible, however, I was responsible for organizing, publicizing, locating speakers, 'thank yours", membership and newsletter. Unable to meet all of these responsibilities, I looked for volunteers to assist me from within the group and outaide of the group. I found none. After a full year of looking, I gave up and the support group disbanded. This was particularly and as there were 10-12 seniors who attended regularly and pleaded with me to continue the group. The points I am making are as follows. - Volunteers coordinating volunteers find the job time consuming and unrewarding. - Volunteers tend to work when they tent to. If It is not convenient, they do not work. - While a great deal has been published about seniors and volunteerise, in Iowa City, seniors expect staff to do the •groundwork" jobs. (This has also been demonstrated in other cities across the country.) /I Page two. Last year we advertised for volunteers to coordinate volunteers at the Senior Center. The only people who answered the advertisement were looking for a paid position and expressed anger that we would expect a volunteer to assume such a major responsibility. i Zn siort, Mr. Laurie, it is well known that there are members of your committee who express the opinion that the senior Center should be run solely by senior volunteers, not understanding the role and function of administrative staff. In reality, the concept of senior volunteers running their own center hes provided unsuccessful time and time again. Your suggestion demonstrates a Zack of understanding of the successful operation of the Senior Center and of its problems. This is only natural. For example, I cannot understand the need for city staff to record, transcribe, and post CCN minutes. Surely you could locate a suitable volunteer to handle CCN minutes. sincerely, � Ail Geri Hall, 1986 Chairperson Senior Center commissioner GH:be CC: Iowa City Committee on Community Needs Iowa City Council Johmmn County Board of Supervisors Senior Center Commisafon SOP E Presented at Formal City Council meeting of January 14, 1986 Mr Mayor and Council Members Everyone comes to you to protest their individual pet part of the City Budget. The economic conditions of the state has been lean to the cash registers of the businesses as well as for the coffers that feed the various govermental agencies. Coffers that fund the services that people became spoiled by in good times and that they expect the city to provide in times of unstable economic conditions. Over twenty years ago, studies shoed that a strong retail core need a good transportation system, both by private auto as well as mass transportation. The private and public reinvestment in dowtown Iowa City in the past decade was based on that premise. The premise further promised increased tax base from a new downtown core to justify the expense. Proudly we have a new downtown that has increased tax base. Continued studies by both city and private sector support the fact that lack of parking is still a major dowtown problem. The Zuchellie report on the last Urban Renewal parcel points out that for intensive use, additional parking will be ' needed, as did the HLM report of last spring, as did the Old Capital Center Martketing survey and so on. As a downtown merchant and even my collegues in Sycamore, say that the biggest compliant heard is the lack of parking. As the supporters of mass transit come to you urging low cost so they could get to work—those of us that made the € investment in dowtown that provide for our livelyhoods and employees livelyhoods are an the line to say we need to be considered also. we need more parking as well as we need more riders. we have a large investment that depends on volumnes of people getting to our doors each day. You have been concerned that as the price of bus fares goes up that ridership will drop. By the same flip of the coin as parking cost goes up..fewer people will spend money to park and to support our stores. The bull: of the dowtown merchants reimburse the customer for thier first hour of parking if they make a purchase of over $5.00. This park and shop , and the bus and ride, programs was started when partking cost was 20 cents. You are doubling our cost... providing nothing. Something has to give. You haven't look at the needs for FY 88 to determine the rate needs at that time. The economic conditions are such that stores of both large and small sizes have to question such an expense. It was questioned when the last bus raise went into effect and =.everal merchant=_ drop their support... its the old them or me �209 r OF PRECEDING DOCUMENT Presented at Formal City Council meeting of January 14, 1986 Mr Mayor and Council Members Everyone comes to you to protest their individual pet part of the City Budget. The economic conditions of the state has been lean to the cash registers of the businesses as well as for the coffers that feed the various govermental agencies. Coffers that fund the services that people became spoiled by in good times and that they expect the city to provide in times of unstable economic conditions. Over twenty years ago, studies shoed that a strong retail core need a good transportation system, both by private auto as well as mass transportation. The private and public reinvestment in dowtown Iowa City in the past decade was based on that premise. The premise further promised increased tax base from a new downtown core to justify the expense. Proudly we have a new downtown that has increased tax base. Continued studies by both city and private sector support the fact that lack of parking is still a major dowtown problem. The Zuchellie report on the last Urban Renewal parcel points out that for intensive use, additional parking will be needed, as did the HLM report of last spring, as did the Old Capital Center Martketing survey and so on. As a downtown merchant and even my collegues in Sycamore, say that the biggest compliant heard is the lack of parking. As the supporters of mass transit come to you urging low cost so .they could get to work—those of us that made the investment in dowtown that provide for our livelyhoods and employees livelyhoods are on the line to say we need to be considered also. we need more parking as well as we need more riders. we have a large investment that depends on volumnes of people getting to our doors each day. You have been concerned that as the price of bus fares goes up that ridership will drop. By the same flip of the coin as parking cost goes up..fewer people will spend money to park and to support our stores. The bulk of the dowtown merchants reimburse the customer for thier first hour of parking if they make a purchase of over $5.00. This park and shop , and the bus and ride, programs was started when partking cost was 20 cents. You are doubling our cost—providing nothing. Something -has to give. You haven't loot: at the needs for FY SB to determine the rate needs at that time. The economic conditions are such that stores of both large and small sizes have to question such an expense. It was questioned when the last bus raise went into effect and several merchants drop their supoort...its the old them or me o2 O 9 r 1 n V+ay.:Ni+vaa.aJ.a v.va. v�..aavv theory of trying to stay in business and fighting raising cost. Again another increase this time in parking could result i -n a drop in parking support and useage at places such as movies, resturants and night spots that don't support the present park and shop or bus -and shop programs. This could progress to a result that would make a full circle back to the blight that we have all worked so hard to get rid of. The bus and parking systems are for the good of the entire city. You cant single out any one group and say theu deserve to pay more or less. I feel that you need to take several steps of action: I. Budget from the General Fund for Mass Transit, because the system is for the benefit of the entire city not those that ride it. 2. Transfer the monies for the needed one year. 3. Transfer the monies back to Parking in 18 months and start the plans for the third ramp in FY 88-89 4. Work with the University in route selection to avoid duplication and competition for riders. 5. Promote the bus system as a fun way to travel. In business we always have to advertise to attract new customers. In this city we feel that the population turns over every four years. 6. Chart a final 10 year program when the JCCOG report is done. 7. As politicaly unpopular as it would be.' put into effect a fare increase effective September 1986' Remember the fare increase affects less than 5 percent of the Population. Iowa City is alive and the envey of the rest of the state, because of long range planning. I urge you not to move to fast for what could happen to us down the road. Thank you Thomas H. Summy 2505 Rochester owner - Stephens Clothing OLd Capitol Center aof s1 \•..v .......... . ...... RE CE 14" 1986 t I HIJ �o%e r P� as 'CITIZEN Awlday. January 14, 19% OUR VIEW Pty's fascal feat A lot of people are saying there are no surprises in the :C4'3 proposed budget for fiscal 19W. They are wrong. ts =44-toorise Is t with Congress hit the citleaand with the low; Legislature poi on *u to ':VOste the possibility of a tai freeze, Iowa Citlalu have a vita,. 7U4 Parantee that all the Services they have comet de*d upon will continue to be provided — unchanged. There is a price, of course — a 6 percent property tax In- ;.. -crease. And while it won't mean much to the average home- -'owner, taxes will be a significantly bigger chunk of businesses expenses in fiscal '87, and consumers will likely feel the fallout — but only slightly. Overall, the fiscal 1987 budget Is an artful achievement that V ; .comes to citizens courtesy of the insight of ell yy officials. '. .Late last year the city round tam tncreaaes on some e':3eivtces and hammered out a plan tos f k up the transit sys- +t'lertt'a red L.A. That way, a 6 percent property tax Increase will :r -more than cover the maintenance of services in fiscal '87, de• spite increased costa. Further, city officials wisely have saved $588,000 in feder- al revenue sharing money slated for civic center expansion. Aad they already have planned on severe cuts In federal -revenue sharing money next fiscal year. The federal money plus an end of the year balance in the :.general. fund will - cover the anticipated $720,000 In nes tax .money if the legislature votes to freeze property taxes. If the Legislature allows tax increases; the federal money and the general fund carryover provide a cushion for absorbing imticipated cuts that might be made at the federal or state kid. Or it could provide funds for capital Improvement =='projects. There Is always that unanticipated glitch. But in this econom• le climate, given what the city knows and can plan for, It Is truly amazing that residents can look forward to a year In which the level of municipal services remains the some City Manager Neal Berlin was wrong when he called the fis- cal 1967 budget "plain vanilla." It is not at all bland. True, there are no provisions for impressive new municipal projects. But consider the fiscal times: The state's economy is slipping, money from the federal government is tentative at best and all municipal services will cost more next fiscal year. Forget the frills; forget the Ideals. At this point, just treading water Is a fiscal feat. Berlin, Finance Director Rosemary Vitosh, their staffs and the city council deserve commendation for their insight and their work. 211 VT ................... ......... . IOWA ENERGY u.`i..EMN With winter on the way, wouldn't you like to cut your healing bill in half? Randy Martin, Energy Specialist with the Iowa Energy Policy Council has done just that by putting energy conservation measures to work In his house. "My heating bill went from $600 to $250 last year. Now that I've finished the base- ment, I expect it to go as low as $175," Martin says. His total energy bill, which Includes electricity, water, and gas for a two bedroom house has gone from a 12 month average of $130 dollars a month to $62.00 a month. "Energy conservation pays for Itself. Ideally, you should be able to borrow money for home Improvements and pay back the toanlhrough your monthly savings," Martin says, "My total Investment of $3000 will pay for itself within three to four years." "My heating bill went from $600 to $250 last year... I expect It to go as low as $175:" Martin began Implementing his plan with an energy audit that helped him figure out which projects would yield the greatest savings for the least Investment. He started working on the no cost or low cost energy savers first. They included putting gaskets on electrical outlets, adjusting water temperature, Insulating water heater, and reducing lighting levels. Air leakage amounts to 30 or 40 percent of the average heating bill so Martin's major energy savings came from tightening the building and then Insulating It. "Stopping airleakago Is not only Import. ant for energy savings and comfort, but also to protect your house from the damag. Ing effects of moisture," Martin said. "Most people think of caulking outside the house but this does not significantly slow air leakage. Caulking around the Interlor of the house, around the baseboard, band joist, and In the attic is the only sure way to reduce air leakage." Using the audit, Martin also considered replacing windows and doors. While MIS is an area that most people consider first when Implementing energy savings pro- grams, it Is expensive and only accounts for about 10 to 15 percent of the air leakage. The audit showed Martin this was nota cost effective Item for his house because It would take 20 to 25 years to pay for Itself. With the Improvements he's made, Martin's house Is now tight and well Insul- ated against winter heating bills. If you're Interested In how these same energy saving methods can work for you, call Randy Martin on the Energy Hotline 1.6045324114. Air leakage Improvements In Martin's house. Iowa City and the Slouxland Interstate Metropolitan Planning Council (SIMPCO) are using energy management program. ming to cut operating costs and save tax dollars. Each program is financed by a revolving loan fund that best benefits the community Involved. For Instance, Iowa City's Energy Savings Payback Fund (ESPF) Is a separate account in the city accounting system. Departments which apply for energy con- servation funding pay back the loan at an agreed rate plus the amount of one year's energy savings. This payback provides energy management program Involving energy offices In Iowa, Nebraska, and South Dakota. Member communities from each state will be able to use the fund for eligible energy conservation measures they might not otherwise have been able to afford. The revolving loan funds set up by Iowa City and SIMPCO to fund energy manage. ment programs offer several advantages other communities might went to consider. They benefit all departments of acommun- fty or regional planning area. They replen- Ish the fund so energy conservation measures can continue. And, they reduce the stress on operating budgets by using fuel savings to pay for conservation measures. Initial money for the programs comes from federal, state, and local government. Energy education packets for Iowa libraries The Iowa Energy Policy Council Is pro. viding energy Information on conservation, research, and alternative forms ofenergyto Iowa libraries. Free packets will be sent to Interested libraries which take part In an evaluation assessing the use of the mater - lots. This program Is part of the Appropriate Technology Information Dissemination Grant from the Department of Energy. If you would like to receive the informa- tfon,contact Tony Hefting at the EPC (515) 261.7016. �2_1Z R MINUTES OF STAFF MEETING j. January 8, 1986 Referrals from the informal Council meeting were distributed to the staff for review and discussion (copy attached). Items for the agenda of January 14 were reviewed. A memorandum concerning agenda items was furnished to the staff. The importance was stressed of bringing up items for the agenda at staff meet- ings. The City Manager advised that the budget will be printed today and tomorrow. The budget retains the current level of service through FY87. It postpones the building project to an undetermined time. It provides for positions that were vacated in the current fiscal year to be reinstated as of July 1, 1986, after a review to determine what positions are necessary. It provides for increased year-end balance in both years and provides the ability to sustain the current level of services even if there is a state- wide tax freeze. However, the budget is predicated upon a six percent increase in property tax. It does not require additional fees with the exception of some issues in recreation still being considered, and there will be adjustments in water and sewer fees in this coming year. Most of the expanded service levels have to do with computers. The City Manager announced the appointments of Larry Donner as Fire Chief and Terry Trueblood as Director of Parks and Recreation. The City Manager advised that he has reviewed the department heads' evalua- tions. Time will be scheduled soon with each individual. The City Attorney announced that the staff will be receiving on a monthly basis the pending issues and referrals in the Legal Department. The staff was asked to review items pertaining to their department to see if they agree with the comments. The City Manager asked the staff to take note of the schedules for the budget discussions on January 18 and 25. Prepared by: Lorraine Saeger Y �2/3 0 Informal Council Meeting DATE. January 7. 1986 PENDING COUNCIL ITEMS H ¢ W W W >. -13 �Z SUBJECT aw o� REFERRED To DATE DUE a�� o COMMENTS/STATUS �a W w a West Side Walkway 1. 1-7 P&PD/ Coordinate with School.District re. location and West High sidwalk. Move Transit bus stop to location if walkway is built. Resource Conservation Commission 1-7 Assistant C ty Mane er Work with RCC to develop mission statement. Sewer Proposal 1-7 Public Work Review alternative proposal.ind refer to Committee. Keggers 1-7 Legal Review ordinance re. foryof profitgpublicy events. City Manager contact Casey Mah Sidewalk Cafes 1-7 Legal/ Assistant C ty Mana e Resurrect prior proposals and legal review for control regulations, etc. Benton Street Bridge1-7 Public Work Include recognition of Mr. Ashton as builder. Notify family. Miller -Orchard Park 1-7 City Manage Letter to Charlie Ruppert with cc to CCN and Parks and Recreation Conmissio Call Karen Hradek. N! MINUTES OF STAFF MEETING January 15, 1986 Referrals from the informal and formal Council meetings were distributed to the staff for review and discussion (copy attached). The Human Relations Director announced that the staff will be receiving within the next few days a memorandum describing training courses which will be available. The number of courses is reduced from previous years. The first one to be offered will be on handicapped awareness. There will be one session for supervisors and one for employees. Only one course for employees will be held, and department heads should determine who should attend. The City Manager reminded the staff of the ordinance which deals with problems encountered with irregular attendance by board or commission members. The ordinance requires the chairperson of the board/commission to inform the City Council when any member has three consecutive unex- plained and unexcused absences. The City Manager asked the staff to take note of the schedule for Saturday's budget meeting which will be held at the Transit Facility. FPrered by: 0 Lorraine Saeger 4 ■ Informal Council Meeting DATE. January 13. 1986 PENDING COUNCIL ITEMS UW ���111 W> o F- tc W¢ oM SUBJECT oW REFERRRED DpAUE o COMMENTS/STATUS TO 2Lo az ¢ w Cr a Send copy of Council resolution to Open Meetings Policy 1-13 City Clerk each board and commission member. Provide copy to all new members. Contact City of Des Moines re. status Impact Fees 1-13 P&PD of studies on fees for tax exempt institutions. Check with City Assessor on old report re. tax exempt properties. Spanish Information Network 1-13 Assistant 'ty Mana er What is status with Heritage and future plans? Letter to Ruppert with copy to CCN Miller -Orchard Park 1-13 City Managi and Parks and Recreation Commission. Rubberized R.R. Crossings 1-13 Public Woris Proceed Demo Buses 1-13 P&PO Proceed Informal Council Meetings 1-13 Parks & Re eation Set up chairs on side of table facing audience and on the ends. Airport Overlay Zones 1-13 City Manag4r Letter to Airport Commission re. computations for building Dermits. Ad -Hoc Transit Study Committee 1-13 P&PDSolomon Lundquist - potential Lundell citizen member. nT N�lav�la.al....•...t'........val.aa�w.µ..•..v . Regular Council Meeting DATE. January 14. 1986 PENDING COUNCIL ITEMS %4 UUWLLJ In Fa SUBJECT aw �� REFERRED DATEaw¢ oir COMMENTS/STATUS To DUEw it W a 1.74 acre rezoning in County 1-i4 p&pp 0raft letter for Mayor to Board of Supervisors. Melrose Avenue R.O.W. Vacation 1-14 P&PD Legal Deferred - Place on next agenda. Legal to check with University. P&Z Recommendation re. 1-14 P&PD entranceways Refer to Urban Fringe Policy Committee Recommendation on agenda 1-14 Staff Ensure a recomnendat ons inc u e wha action is required and when it should occur. Street Light Report 1-14 Public Wor Parks & Re -Puttrr— / eation/ Traffic Engineer and Forester review for evaluation, cost estimates, and recommendations. Address differences Ran t Lighting Project. Police provide report on relative rates of criminal activity in the study area. Economic Development Revolving 1-14 P&PD Develop outline and framework. Loan Fund Schedule for discussion at informal Council meeting. Repair Light 1-14 Parks & Re eation In Council Chamber Dubuque Street Ramp 1-14Finance When will west elevator be operational Is sufficient signage for handicapped in place notifying them of current "out of order" status? %4 December 31, 1985 NEC EIVF9J'•'1' 01986 Mearrl 1901 PrriryMrYa Avru NW lWpu WmNnpn, D.C. of 2oow con (202)828'3000 Cable: NLCMES The Honorable John McDonald Mayor City of Iowa City 410 East Washington Street Iowa City, Iowa 52240 Dear Mayor McDonald: onlors ft p S—wvw U4 ..Cww 0M CA. ew,., M y G C..'" WW.. S. 4v .L,.1 r.nor. gYM.q., Gor t r WYa.S PrL Wwp. fncuow Oi.wr Aun e.w I am writing to advise you of the final actions taken by the Congress and administration this year affecting cities, of the actions we expect to be considered when Congress returns on January 21st, and of the courses of action you might take to protect your city's needs and interests. Along with this letter, I am enclosing a packet of background material and a brief survey on key municipal issues. I would very much appreciate it if you would share the background information with your elected colleagues, and I would be grateful if you would have your appropriate staff person insure that the survey is given prompt and careful attention. The survey will be critical in our efforts to give you the best representation possible in Washington, D.C., in 1986. This past year has been one of the most difficult in history for municipalities from the federal perspective. The federal government called for the deepest cuts in history to cities, a host of new and expensive federal mandates, and changes in the federal tax code which would preempt or restrict your municipal authority to raise revenue or capital. Next year will be considerably worse unless we can all work together. Despite the sharp cuts in federal aid to local governments, the federal deficit and the federal trade deficit set new records. Although the federal government made these reductions, it proposed still more federal mandates and - with the exception of the success we achieved with regard to the Fair Labor Standards legislation - no reductions in any existing federal mandates. Finally, the federal government began consideration of the most W.a far reaching tax reform proposal of the last 50 years - a proposal which would dramatically affect each and every municipality in America. Even though the Congress is a long way from final action on tax reform, the House tax reform bill will sharply restrict your authority to issue municipal bonds beginning at midnight tonight. Through it all, cities have continued to balance their budgets and respond to the basic needs of their citizens. It is a remarkable achievement, particularly for some of our cities in the greatest fiscal distress - communities in the farm belt, where property values are plummeting and foreclosures are too common; cities affected by a large influx of immigrants and foreign devalued currency; cities and towns adversely affected by the sharp decline in energy prices; and cities hit hard by foreign imports and consequent high levels of unemployment, and poverty no longer caught by an eroded federal safety net. I believe this is a credit to you and all municipal elected officials. When Congress adjourned for the Christmas vacation, it left without acting to implement its own budget. The conflicts between the Senate, the White House, -and the House which have prevented any meaningful action to reduce record federal deficits lasted through the last bitter hours. Thus, even though the Congress actually cut spending some $6 billion below what the president requested for the current fiscal year, Congress left town without taking any substantive action to cut the federal deficit. All the money saved was simply used to pay for greater tax breaks and spending elsewhere. Part of the reason for the failure was the time Congress took to pass the Gramm-Rudman legislation - a proposal which would supposedly balance the federal budget by 1991. The Gramm-Rudman legislation would effectively delete the Congress and White House from the federal budget process, instead substituting automatically triggered cuts in a small percentage of the federal budget. It would be comparable to your city - if it had to deal in an emergency with a record deficit - passing an ordinance which said that, beginning in the next fiscal year, about 25 percent of the city budget would be subject to across the board cuts in annual installments over 5 years until the city's budget balanced. You and your fellow elected colleagues would bear no responsibility for determining what the city's priorities were. Garbage collection, 9-1-1 emergency response service, city maintenance, etc. would all be cut uniformly - and there would be no consideration of what the appropriate level of local taxes ought to be. f -kllam.......................,...._ ........._......_ A ..,... -3- As you can see, the proposal has some obvious political attraction. Because, however, the portion of the federal budget subject to the Gramm-Rudman proposal - which, of course, includes all municipal assistance programs - is approximately equal to the current federal deficit, it means that implementing the bill will terminate any federal relationship with local governments. It means that effective March lst next year, all federal programs to cities will be cut in the current fiscal year. That is, you should expect reductions in your April and July revenue sharing payments, cuts in your Community Development Block grant funds, cute in any public transportation or federal -aid highway funding, and in any wastewater sewage treatment grant funds. I expect the March lst cut to be about 4.6 percent. Unless Congress proposes an alternative, I expect that on October 15, 1986, Gramm-Rudman will require a further 18 percent cut. In March, we anticipate that the Senate Finance Committee will begin actual consideration of the House -passed tax reform bill, AR 3838. At that time, we expect the administration to make strong efforts to repeal the deductibility of local property, personal Property, income, and sales taxes. The administration estimates that this will reduce municipal revenues somewhere between 1-3 percent. The committee will also be considering the administration and House proposals to restrict local authority to issue general obligation, revenue, and industrial development bonds. In other words, at the same time you are trying to compensate for extraordinary cuts in federalassistance, there will be serious efforts underway which could undermine your own ability to raise revenues yourself. Finally, I expect the federal government to continue to press for mandatory Medicare contributions from cities, for federal permits for water discharges, for more expensive enforcement of mandates. drinking water and hazardous waste regulations, and for other new You and I both know that your citizens will insist upon a certain level of basic, public services and facilities. We both know that the federal government will continue to insist that cities provide certain standards and levels of basic services such as sewage treatment, etc. The question will be who will be responsible for paying for these facilities and services, and how can the revenues be raised. The current federal deficit exceeds $200 billion. The president's tax reform proposal, as well as the version passed by the House, would cut back tax breaks enough over the next 5 years to bring in nearly $400 billion in new revenues - mostly from individuals and a4- 11- -4 - corporations who have not paid their fair share over the last 5 years. The bills would also bring in revenue from cutting back on your city's ability to issue tax exempt bonds. Both bills, however, pretend that tax refrom is completely unrelated to the nation's single most important problem: the deficit. Thus, instead of using even a single dime of the new revenues for deficit reduction, both versions would return every dollar to corporations and individuals in the form of the steepest tax cuts in this century. If the federal government proceeds along this path, it will directly affect your city. You will be faced with tough decisions about cutting personnel and services or raising taxes. if your constituents believe they are paying more in local taxes, but receiving less, they are likely to hold you responsible. Consequently, we believe you might want to consider some of the following steps: 1. issue a state of the city address in which you specifically alert your citizens to the potential impact on local taxpayers of pending federal actions; 2. Conduct an extensile campaign, both in citizen's meetings and through the local media, to inform the public of the choices forced upon the local level by these federal proposals; 3. Send a letter to all your municipal employees advising them of the federal issues which might affect their job status, salaries, pensions, and benefits; 4. Contact your Congressional delegation, preferably in person, to request: (a) a detailed analysis of how the revenue from your city sent to Washington is shared (for instance, you might want to ask why the federal government sends more economic development assistance overseas, but tells cities it has "no revenue to share;" (b) a detailed analysis of the impact of current and pending federal mandates on your local budget and taxpayers; osed ta (c) ondyourled city,�alysis of the particularly withct of regardht pyourscity's bills authority and ability to raise capital and revenues; can ut (d) an by nearly a$400 billion tion of how tunder he utax yafford ctaxes reform when the federal deficit is at record heights; i 0 �Mti\'�A vaaval!.a\v \ vvV.. a v a..".. valaa.n.L.nwi.v: . • ..v v......a�.. l..r..u.i�i...�v.�. na .v.....v�� .1 �•I.vna-.µ..Nr —5— (e) a specific statement in support of reauthorization of General Revenue Sharing; and (f) a commitment of strong, visible support for any local tax increases you will be required to seek in response to the pending federal proposals. We face a long and difficult year. It will be a year in which I believe you will have to represent you constituents not just at the local andstate levels, but also upon the federal level. We will have to make our voices heard. I hope the information included along with this letter will be of assistance to you. I would be very grateful for the benefit of Your views and further suggestions you might have in order to help us better represent you. With best re ards, Alan eaI Executive Director a�s� I i 1 a,,,,.,....,..,.. ...,,......... .............. x Background Status of Major Federal Issues s Cities 1986-87 Gramm-Rudman: As part of the legislation increasing the federal debt to over $2 trillion, the federal government enacted the so-called Gramm-Rudman legislation. This law provides for the triggering of automatic cuts in certain federal spending every year over the next 5 until 1991, beginning with cuts in the current fiscal year. Under Gramm-Rudman, the first round for FY1986 will be triggered on March 1, 1986 for the federal fiscal year which began last October 1st. In all future years, the automatic cuts would be triggered on October 15th, unless the White House and had enacted an alternative budget proposal which reduced the deficits to the amounts set under Gramm-Rudman. At this point, our best estimate is that all programs directly affecting municipalities will be cut 4.6 percent for the current year. This will mean that public transportation, housing, CDBG, EPA wastewater funding, highway assistance, etc. will be cut by that amount (see chart fl). Because the first PY1986 revenue sharing payment will be made in the next week, we project that the final 3 payments (April, July, and October) might have to be cut by about 6 percent in order to achieve the full 4.6 percent required. The Gramm-Rudman legislation triggers automatic cuts in a small percentage of federal expenditures over the next 5 years whenever the federal government estimates that the new deficit targets will be exceeded by $10 billion. The targets begin with $171.9 billion for FY1986, and decline by $36 billion annually to $0 by 1991. The administration estimates that under current law the deficit for FY86 is well over $200 billion. Gramm-Rudman limits the maximum cut in FY86 to $20 billion, and prorates that for the last 7 months of the year. That means that the maximum cut, I or "sequestration" as it is called, would be about $11.7 billion for the current year. It means that the president will be required to submit an FY1987 budget to the Congress by February 5, 1986, which provides for a deficit no greater than $144. Gramm-Rudman exempts most of the federal budget from the automatic cuts. For instance, only about 13 percent of federal expenditures are susceptible to the cuts. In FY1986, fully $750 billion of $967 billion in federal spending is protected from any cuts, and even of the remainder, much is partially protected. No city program, however, is protected. a�� &a Because Social Security, interest on the federal debt, federal obligations for binding contracts, federal tax subsidies, and other programs are completely exempt; the small percentage of federal expenditures remaining nearly equal the current federal deficit. This means that when the rate of growth of the exempt programs is taken into account, it is not even clear that the total elimination of the non-exempt agencies and programs would achieve a balanced budget. Gramm-Rudman provides that the cuts are to be divided equally between defense and domestic programs. In other words, next March, this means that about $5.8 billion in cuts will be made in defense spending, and the same amount out of domestic spending. Because defense spending has increased so much (for example, the Pentagon received $6 billion in excess inflation adjustment last year), the actual percentage cuts will be much deeper in state and local programs. If the federal government continues its current inability to deal substantively with the federal deficit and Gramm-Rudman rolls forward, it will mean the elimination of domestic government. Because Gramm-Rudman would be so destructive to national defense (while most ongoing weapons system and research would be fully protected because they are covered under binding contracts, it would mean extraordinary cuts over the next 5 years in military readiness, especially equipment and personnel), many expect the administration to seek extraordinary cuts in domestic programs in order to avoid triggering Gramm-Rudman. Since the president has pledged to increase defense spending by about 7 percent, he will be required to seek much deeper offsetting cuts in order to submit a budget providing for a deficit reduction of about $50 billion. Consequently, as.you can see from the chart, we anticipate an FY87 budget request with wholesale cuts and eliminations in key city programs. What you should do: Almost without exception, members of Congress acknowledge that Gramm-Rudman is an irresponsible way to deal with the federal deficit. Almost all acknowledge that no long term solution will be possible without including tax revenues and Social Security. Moreover, because Gramm-Rudman would call for much greater automatic cuts when economic growth is low, and much lighter cuts during strong economic growth, there is a good chance that Gramm-Rudman could provoke a recession. It is important that you fully understand and are prepared for the automatic cuts - especially those set for March 1st. It is equally important that your Congressional delegation understand that dealing with the deficit requires everything to be on the table - exactly the same way every city budgets every year. Finally, it is critical that your delegation understand that no rT V„al: Yia ..aa...... .a.w.w.v.......aaaaa..+..:._A.....«ei...rv....r._r.....v....+.v.vnr.vwv..r -3- budget process can proceed separately from the revenue process: that is, you must pay for what you spend. Remember, the pending tax reform proposals seek to raise nearly $400 billion in new tax revenues - mostly from wealthy individuals and corporations who have not paid their fair share - but then proposes to turn right around and give back every.penny in the form of the deepest tax cuts this century. 3 I II' i 3 Chart I GRAMM-RUDMAN ESTIMATED CUTS i FY 1986 (4.6i) FY 1987 i G_RPossible 2=LL1-8%L White House Cuts General Revenue Sharing $211 $ 53 $ 7621 Community Development i Block Grant 161 601 900 ' EPA and Municipal Wastewater Grants110 414 600 Public Transportation 170 635 2,027 Federal Highways 607 2,266 2,600 1 UDAG 15.4 56 3302 t Subsidized Housing 252 750 2,209 Job Training Partnership Act 129 476 i_ 1 Under current law, the last revenue sharing payment to cities and towns is scheduled to be made in October, 1986. This figure anticipates j an administration request to eliminate the scheduled payment entirely. 2 Denotes elimination. } I /�Z %4 �`�M4N vvav av!�aa�ty ♦�u..'. a a:.. aa......uva Chart I GRAMM-RUDMAN ESTIMATED CUTS i FY 1986 (4.6i) FY 1987 i G_RPossible 2=LL1-8%L White House Cuts General Revenue Sharing $211 $ 53 $ 7621 Community Development i Block Grant 161 601 900 ' EPA and Municipal Wastewater Grants110 414 600 Public Transportation 170 635 2,027 Federal Highways 607 2,266 2,600 1 UDAG 15.4 56 3302 t Subsidized Housing 252 750 2,209 Job Training Partnership Act 129 476 i_ 1 Under current law, the last revenue sharing payment to cities and towns is scheduled to be made in October, 1986. This figure anticipates j an administration request to eliminate the scheduled payment entirely. 2 Denotes elimination. } I /�Z %4 December 31, 1985 Federal Tax Reform Before adjourning, the House of Representatives passed HR 3838 to reform the federal tax code. The Senate is expected to begin consideration of its own version in early March in the Finance Committee. Even though the Senate has yet to act, however, the House bill will restrict the authority of cities to issue municipal bonds after midnight tonight. After passing the tax bill, the House and Senate each passed separate non-binding resolutions calling for a delay in the January 1, 1986 effective dates in the House passed bill. These resolutions, however, carry no legal weight. Therefore, because e provisions on municipal bonds toeissueiboondsour afterttodayl not unless the bonds comply not only with existing law, but also with the pending legislation. As you read the analysis below, you should keep in mind that the tax reform bill is only halfway through the Congress. There are, consequently, many opportunities to make changes in the Senate. It is especially important to make sure that cities are able to preserve their right to raise their own tax revenues, so you want to be sure to urge your Senators to strongly oppose any efforts to i repeal or modify the ability of your city's taxpayers to deduct state and local taxes. Likewise, it is important to preserve your city's capacity to issue municipal bonds and short term notes, especially for traditional public needs and purposes. As you go through this material, you should identify where your city will be most adversely affected and make sure your Senators are aware and responsive. It cannot be emphasized enough how important it is that you communicate your concerns immediately before the process begins. Tax reform is so complicated that it will be exceptionally difficult to have input once the process in the Senate is underway. The House Ways -and Means Committee completed action on its version of federal tax reform before sunrise on Saturday, November 23rd. The committee plans to formally report the bill out the week of December 2nd. Committee Chairman Dan Rostenkowski(D-I11) plans to bring the bill before the full House prior to the Christmas recess. As completed, the House bill (Rosty II) bears remarkable overall similarities to the president's proposals. That is, the bill would lower individual and corporate tax rates to their lowest levels in a�� -z - over 50 years. The bill would remove federal tax liabilities for almost all low income Americans. And the bill would reverse the shift of imposing greater taxes on families and individuals and less on businesses. indeed, perhaps the most remarkable similarity between the bill and the president's request was the repeal of the investment tax credit and the stretch out of depreciation benefits - two of the most expensive tax provisions which marked the 1981 Economic Recovery Tax Act - the more than $100 billion in new federal revenues from repealing these two tax expenditures would not, however, be returned to the federal Treasury to help deal with record deficits. For the nation's cities, there are enormous differences between the two proposals. For while elected city officials were given virtually no access to the administration during the 5 months the White House was reviewing the November, 1984 Treasury tax reform proposal - during which time hundreds of billions of dollars of changes were made to benefit certain interest groups - there were substantial improvements made in the chairman's own proposal from the perspective of municipalities. The president had proposed to terminate the deductibility of state and local taxes - a proposal which by the Treasury's own estimate would have reduced cities' own revenues between 1 and 3 Percent. Rostenkowski proposed a compromise which would have taken away about 75 percent of deductibility. it was overwhelmingly rejected in the final hours of committee action. The bill preserves the right for cities first asserted by President Abraham Lincoln that the federal government should not impose a tax on taxes levied by state and local governments. The president had proposed to terminate the historic and rehabilitation tax credits. Rostenkowski, with a Chicago congressional district, understood the value of this credit to rebuilding downtown areas in a public-private partnership. The chiarman proposed a modification to preserve the credits; the House agreed. The Treasury had proposed to sharply cut back on charitable contributions, the president modified that proposal, but still would have prohibited the charitable contribution deduction for any taxpayer who did not itemize. With the extraordinary cuts in domestic programs, this issue has become critical for a growing number of cities in order to help meet emergency food, shelter, medical, and fuel assistance needs of citizens. Rostenkwoski's bill modified the proposal to permit all taxpayers to deduct for making such contributions. The president had proposed to terminate the authority for cities to issue bonds to provide for housing opportunities for those who could not afford decent, safe, and sanitary shelter. The amz -3 - president also proposed to cut back on depreciation and to eliminate the rehabilitation tax credit. The committee bill restored the credits and the right for cities to issue housing bonds, but provided greater investor incentives to invest in low income housing. In terms of direct impact, then, the bill changes would be better for cities in a number of ways. * In perhaps the most key direct impact area to many city officialmandatessonhcities, asewelllasould preempting muse chificant currentnew authority. The president had proposed eliminating the authority of cities to issue any tax exempt bonds where more than 1 percent benefited any non-governmental user - a proposal which even U.S. Treasury Secretary advised NLC president Voinovich was unreasonable. Rostenkowski upped the percentage to 5, and would e permitted some authority to issue housing bonds. But the final Rouse bill would permit cities to issue unlimited general obligation and revenue bonds, as long as no non-governmental person 10 or 1ercent o thevalue cofvthe bonds. The ebill iwould tal oof $provide0authority f to issue water and sewer, solid waste, housing, idb, and some other kinds of tax exempt bonds, but under a new state -by -state volume cap which would cut city borrowing authority about 40 'I percent from the current year. The change on municipal authority to issue bonds, moreover, will be effective on January 1, 1986. Even though the Senate will ofthe not act January 1, 1986udate inntil mthe iRouseme xbillais sufficienttoput a cloud over city authority to issue any bonds unless they comply with the newly proposed federal rules. Overall, however, the impact is one that will vary. No two cities would be affected the same way by tax reform. Probably the most significant area affecting cities would be in the corporate area, for there the shifts are most dramatic. ' Under current law, the top corporate tax rate is 46 percent. Some retail and high.tech companies pay at close to that rate. On the other hand, some of the largest and most profitable corporations in America, including almost all the major defense contractors, pay little to no federal taxes. Under the committee proposal, thus, those companies currently paying over 45 percent would experience a sharp reduction in federal taxes, while those paying virtually no federal taxes would experince the opposite. �71T VT �'�M�\a4vaaaaa .ass .l v.aa�a.u.a .vv .aaa w..x.+...:.............. l.�.�«.. —4— Because most corporate activity occurs within the nation's cities, this tremendous shift in corporate tax liabilities would have a major impact on each city. Overall the bill, consistent with the president's proposal, would shift more of the federal tax burden from individuals and families to corporations. This shift of slightly over 8 percent, or about $126 billion, over the next 5 years could be expected to provide some increased consumer spending, but some decreased business investment in cities. Analysis: The House proposal (Rosty II) to President Reagan's federal tax reform proposal would reduce the capacity and authority of the nation's cities to raise their own revenue to provide for their own public facilities, needs, and responsibilities. The Ways and Means Committee proposal will curtail the authority of cities to issue -tax exempt municipal bonds and notes --in some cases retroactive to September 25, 1985 --at the end of the year, even though Congress is unlikely to take any final action until next year. As has become a tradition in the Congress, the introduction of tax legislation --drafted in secret sessions --affecting cities will have the effect of law even without enactment, or even action by the Senate. That is because it will prevent municipal bond counsels from giving cities clean opinions to issue bonds which are not in compliance not only with existing federal tax laws, but also any pending federal tax law changes. These opinions must be qualified, because legislation is now pending (Rosty II) which, if agreed to by the full Congress --would make certain of the bonds taxable to their holders. This gives the Ways and Means Committee the ability to make major changes in city's authority to issue even general obligation and revenue bonds without any final action. The threat to cities of pending legislation in the bond area can only be removed by affirmative action in the Congress. Therefore, cities will have to comply with the bond mandates in his bill until any changes are agreed to in a final conference between the House and Senate after Senate action next year. There is little chance of accurate and detailed information about the new federal mandates with which cities would be required to comply by January 1st. Moreover, given that the Senate is almost certain to make further changes, and that the U.S. Treasury is hopelessly behind a/�z -5 - in issuing regulations, it will likely be at least three full years before any actual and reliable legal guidance will be forthcoming with regard to what actions cities will be required to take. KEY PROVISIONS IN PROPOSED LEGISLATION AFFECTING CITIES: Following is an analysis of the key provisions in the Rouse proposal, Rosty II, affecting municipalities: Deductibility of State and Local Taxes: Rosty II would not repeal or modify the ability of fames or individuals to deduct state and local taxes. Municipal Bonds: The House proposal will erode city authority and increase the cost to issue traditional public purpose bonds and notes. It will cut municipal authority to issue industrial development bonds by about 45 percent. Just as the federal government is terminating federal assistance to cities, the bill will sharply interfere with cities' own authority to raise revenues to meet their own public needs. As agreed to, the Ways and Means bond proposal would set up two categories of eligible tax exempt municipal bonds: "governmental" and "non-governmental." Municipal bonds which failed to meet the new and ambiguous tests for either of these categories would be ineligible for any tax exempt financing --even if the bonds were backed by the full faith and credit of the taxing authority of the municipality and the proceeds were to be used for a traditional public facility. Because the bill would redefine and narrow the definition of traditional public purpose bonds, it will mean that cities will have to be much more careful about issuing even general obligation and revenue bonds next year. An uncertain number, however traditional and public purpose, would be taxable under the new proposal. Others would retain their tax exempt status, but would require an allocation of bonding authority under a strict new state volume cap. The bill will, thus, severely erode the ability of cities to raise short term and long term funds. It will impose a whole new array of costly and confusing federal mandates over city borrowing authority. And it will make many municipal general obligation, revenue, and tax assessment bonds taxable. The bill will cut back on municipal authority to issue industrial development bonds by about 45 percent through the imposition of a new state -by -state volume cap effective on January 1, 1986. i SI! The bill creates some perverse situations for publicly owned and operated facilities --some intentional, some--apparently-- unintentional. These situations are perhaps best understood by describing them as the "sins of commission" and the "sins of ommission." These situations refer to the action by the House which would prohibit tax exempt financing for publicly owned facilities which fail the new test. The perversity is best displayed by noting that under the bill, non-profit universities and hospitals would be guaranteed tax exempt financing, but public hospitals and schools might be denied tax exempt financing. Sins of Commission This term refers to deliberate action taken by the House to prohibit city authority to issue tax exempt municipal bonds for the following publicly owned and operated facilities which cannot meet the new 10 percent or $10 million test: o sports facilities o convention or trade centers o parking facilities o district heating or cooling o industrial parks o hydroelectric facilities o hazardous waste facilities Sins of Ommission This term refers to city bonds for traditional public facilities which the committee provides no authority for in the event they cannot meet the new tests (not all inclusive): o public (as opposed to non-profit) hospitals o highways o jails/prisons o dog pounds o town halls o city recreational facilities o elementary and secondary schools City officials should note that even for those traditional public facilities which can meet -the new double test, there will still be an additional hurdle before they would be permitted to issue public purpose bonds: in any case where a non-governmental user will receive or benefit by the equivalent of $1 million or more, the project would have to be covered by the "non-governmental" volume cap (see below). a/� -7 - The new definitions which will govern city authority to issue bonds after December 31, 1985 are: o Governmental Purpose Bonds: As under the Reagan plan, Rosty II proposes a new generic definition.to redefine and curtail severely the authority of cities to issue traditional G.O., revenue, tax assessment, and tax increment financing bonds. The "one percent rule" proposed by the White House would be liberalized to the lesser of 10 percent or $10 million. In other words, a city's G.O. or revenue bonds would lose their tax exempt status if any other person (including a non-profit organization) benefited from the use of the financed facility or program by more than either amount, or if more than $5 million or five percent were used to make loans to a person. For example, if a city constructed improvements as required by EPA to a municipally owned and operated sewage treatment plant, it would be prohibited from financing such improvement through the use of 'governmental' bonds if any industry used more than 10 percent of the plant's capacity or the equivalent of $10 million of the plant's improvements. Despite claims by the Ways and Means Committee that traditional public purpose municipal bonds would be protected, the action by the committee will force major changes. Under current federal law, a bond is treated by the IRS as an industrial development bonds --even if it is issued as a G.O. or revenue bond by the municipality --if more than 25 percent of the bond debt is secured by a non-governmental entity and such an entity benefits by the financed facility through trade or use by 25 percent or more. Thus the House bill proposes to cut back the existing federal test by some 60 percent. More importantly, while the new single 10 percent test will have a disproportionately adverse impact on small cities, the new $10 million limit will have a disproportionately adverse impact on major public facilities. That is because it would, in effect, set a much lower percentage for any project which cost more than $100 million. For example, major prison and public hospital facilities now cost well in excess of $100 million. Increasingly, these major public facilities involve contractual operations, such as for cafeteria and food service, lab services, emergency rooms, and building maintenance. These contracts can easily exceed $10 million --making the entire facility ineligible for tax exempt financing. Even where they do not trigger the ineligibility, they often include contracts in excess of $1 million, forcing the city owner to compete under the state volume cap in order to be able to issue the G.O. bonds to provide for the hospital or prison. a� Z 0 -8- As in 1984, those cities which have sought to "privatize" will be the most harshly punished. The committee action, consistent with the earlier staff draft and the administration's tax reform proposal, all go out of their way to eliminate what little incentives remained for cities to privatize and to impose severe penalties on those cities which have. The proposal would also propose new IRS arbitrage, information reporting, temporary holding period, and advanced refunding restrictions on traditional public purpose bonds similar to those advocated by the Reagan administration. The changes would generally be effective January 1, 1986, except for certain bond projects in progress (those where either construction, reconstruction or rehabilitation was commenced or a binding contract for at least 10 percent of project costs had been signed) by September 26, 1985. o Non-governmental Bonds: Unlike the Reagan proposal, Rosty II would permit limited city authority to issue some tax exempt bonds which cannot meet the new 10 percent or $10 million test. a�� 0 -9- Cities could issue bonds under a single, new state -by -state volume cap only for: 1. multi -family rental housing (subject to new targeting rules); 2. municipal or state owned airport facilities (not including hotels, food preparation facilities, restaurants, gift stores, etc.; the volume cap would exempt all but the freight handling facilities); 3. municipal or state•owned dock and wharf facilities (except for freight handling facilities not in the immediate vicinity -- eligible freight facilities in the immediate vicinity would be the only portion of port facilities under 'the volume cap); i 4. municipal or state owned water facilities either operated by a governmental unit or for which rates are set by a governmental unit; 5. sewage and solid waste facilities; 6. more targeted single family and veterans mortgage revenue bonds; 7. some limited authority to use tax exempt bonds for 501(c)(3) non-profit financing. 8. government-owned masa commuting facilities; 9. small issue IDBS (sunset repealed); and 10. student loan bonds. 11. certain tax increment financing bonds Additional restrictions on "non-governmental" bonds: @ tax increment financing bonds: The bill would impose strict new limitations on tax increment bonds issued by cities in the 34 states where authorized by state law. Under the committee proposal, tax increment bonds would be treated as "governmental use" bonds to the extent the proceeds were used to finance such facilities as streets, sidewalks, lighting, curbing, and other assessment bond type public improvements. Tax increment financing bonds issued for redevelopment purposes, however, could only be issued as tax exempt after January 1, 1986 if they meet the new test for "qualified redevelopment bonds" and A ......................... .....,....... _ ........... _10 - have sufficient authority under the respective state volume cap. Such eligible bonds could only be used for the costs of acquiring the land to be redeveloped and for relocation expenses of eligible occupants. The bill would define qualified redevelopment bonds as those: (a) issued pursuant to state statute and secured solely by incremental property tax revenues; (b) issued to finance the above described eligible activities, but only in a federally defined blighted area (determined based on the substantial presence of structurally substandard buildings, excessive vacant land, abandoned or vacant buildings, excessive vacancies, or delinquencies in ithe payment of real property taxes); (c) issued pursuant to a plan adopted by the city in which the blighted are is located; and (d) issued for financing where the designated area(s) does not exceed 10 percent of the assessed value of property within the city, but where each designated area must exceed one-fourth square mile. The bill would have a particularly harsh impact on small cities, I many of which have seen their downtown areas simply erode under the farm crisis. The 10 percent and quarter mile rule is close to an absurdity in such situations. Similarly, creating a new federal definition of blight removes from cities the authority to determine the appropriate use in a designated redevelopment area. For instance, many cities believe that the presence of porn shops, while not substandardin structure, are antithetical to downtown redevelopment. The new federal standard would make such a change ineligible for tax increment financing. @ multifamily rental housing bonds: Under the bill, multifamily housing bonds would be more targeted to low income renters and the financed structures would have to remain rental for a longer period of time. The greater the targeting towards low income renters, the more generous the depreciation treatment which would be allowed to the owners. A city could issue multifamily bonds after January 1, 1986, if: (a) 25 percent or more of the units are rented to families with incomes of 80 percent or less of area median income, or 20 percent or more of the units are rented to families with incomes of 70 percent or less of the area median income. a�� / a01C The bill would provide depreciation to such properties at a rate approximately a 25 percent more favorable rate than non -low income housing. Or a city could issue multifamily bonds after January 1, 1986, if: (b) 40 percent or more of the units are rented to families with incomes of 60 percent or less of the area median income. The depreciation treatment for such properties would be approximately 50 percent more generous. Under the bill, housing financed with tax exempt bonds would have to remain rental for the greater of 15 years or the maturity of the tax exempt bonds with the longest term, as opposed to 10 years or 50 percent of the longest term under current law. The multifamily bond provisions would also require annual certification to the Treasury and clarification of income adjustments for family size. @ single family mortgage revenue bonds: The proposal would still call for the sunset of the authority for cities to issue single family mortgage revenue bonds on December 31, 1987. It would also limit the use of such bonds effective January 1, 1986 by requiring: * that all proceeds would have to be used to finance mortgages for eligible persons; * 90. percent purchase price limits (110 percent in targeted areas); * that at least 50 percent of mortgage loans be made to borrowers with family income less than 90 percent of area median income, and that no loans be made to a borrower'with family -income exceeding 115 percent; and I * that two-thirds of the loans made in targeted areas would have to go to borrowers with incomes not exceeding 140 percent of the greater of either the area or statewide median income. * mortgage credit certificates --would be conformed to the mortgage revenue bonds. Any change in the use of a non-governmental bond financed facility to use (whether through rent or sale to a taxable person) would make rent or interest costs of the private taxpayer non-deductible. -12- o The new 1986 Volume Cap (see illustration and chart)--Rosty Ii would set a new, single state -by -state volume cap for all non-governmental" bonds, except those issued for airport runways, air traffic control towers, and publicly owned and operated airport terminal and parking facilities, as well as some port facilities. The cap would also include any amount of bond proceeds exceeding $1 million from a "governmental" general obligation, revenue, or tax assessment bond used by persons other than a state or local government. 30=111 R 1 6139 4 0� nou IN d11m) I'ME1 5141 dY 67 IGC 11Cllt O ,11" POMI A a 90.rnee93 bmb (ft 9 W d 1n L OC In pUllm M rn ,mut 13661 uo[ t2o6e POML a of 919708 09 {ac 1md, Mdtl, .Guld N udu $1i .01� C.P. -n , U.S. TCOMMY, MC a/�z 90L1 Mr. aT 9s X17 nr11 1� �1 9196 d A r tr 2n1Mt2W 1 a Mulka ow W L 3.239 t.1d9 97><I ad n.o LM Fl. AL"Vity Ima 23.6" $u.235 $16.951 $SIM $m.36L MASS SN.10 11T AL"m A1r19 - 156 365 55 202 No 702 IM SCUMS676 _ - _ 0 7L - 9 13 1.407 2" 1.5" 11113 m 7766 9 M 1w 29 1>e S22 IN 20% "f 793 992 523 9.216 0,� 4" m1� 323237 913 13" 23 m 566 1111 ra 91afd1 12 70 961 1.07 06 9" 193 3.267 200 1.640 in 1744 �L - G 70 576 323 1.623 1,009 ISIS 1htM 700 123 210 919 pluaLs � 477 � 17 2 1,"a 2,00 9MN WIN& i IMM 0 US 6 1n{ 923 979 9" � _ - a 219 916 911 510 623 19" a lv no � M 1N 195 906 1N 315 1,no A 166"" r�Lr Mehra U 10 5a - IN 651 1,3391 M1303 0\ 7er.m�ee ]II 533 50 112 676 1.339 1.011 1939 20 60 916 1n1 1.131 1123" 926 M,9aet� 623 78 M 172 3" 1.290 70 17" NLalr4v/1 - a 257 70 M3 1n a 261 336 SOS 1.137 633 666 1111 22" 1 a 26 N 13 75 261 706 101 H1bCWk"235 _ i9 n 9 23 233 1623 Or" *W WEPIUM 5 49 0 57 s 11.w 3 - 252 1.052 29231 3" 1.9m 1.10 3940 e. nMa9G - 13 N 11S 3 20 771 - 1.09 1.113. 176 ilf 1.006 3.10 933 me C "x12 CGoL,r - 38 313 1 la $39 1.077 Sn Mxt2 o6,mn 123 27 T 19 75 269 2m 1133 CIdG - M 623 a 633 1.tM 1.90 7" OIL�a - 3 136 126 233 S23 339 M M"M - 105 T 67 an 511 976 lar 9e9"19Mda 200 M 1,400 606 m 3.613 2.123 1626 MI'M 1-11d_ N 60 210 m 331 2M 291% uMh CKOU M - 3B 361 261 112 692 371 121$ .2 0r99u , 0 23 40 - 200 01 700 1ST To - 1" 6" - 20 1.01 172 12" 2� 23 3,"7 769 ni 7,3" 6.921 2.716 1331 163 " 251 5" rM 1323 vm1e 72 72 1 " 133 200 716 91991131" a 123 996 233 574 2,025 "1 240 " 50 100 50 175 90 70. 5" r.e nolinim _ a on- 333 3" 1001 YL®1n 20 152 30 1 300 713 03 9T 9p1A - - a 79 119 240 M I'ME1 5141 dY 67 IGC 11Cllt O ,11" POMI A a 90.rnee93 bmb (ft 9 W d 1n L OC In pUllm M rn ,mut 13661 uo[ t2o6e POML a of 919708 09 {ac 1md, Mdtl, .Guld N udu $1i .01� C.P. -n , U.S. TCOMMY, MC a/�z V r' L<..,.....,.,..,,.....I.........., ,....................,._ w.,..... -13- This last item is critical for city officials. It is the second major hurdle referred to above. It means that city officials must be certain that the state allocation process provides sufficient authority so that G.O., revenue, or tax allocation financing for major public facilities may go forward. It means that projects backed by local tax revenues would be forced to compete with private and non-profit deals. I The volume cap would be the greater of $200 million or $175 per capita runtil after capita toreflectthetermination�hwould drop to .Of the allocation, non -profits would be guaranteed a privileged position not subject to any control by the governor or state legislature. They would be guaranteed at least $25 per capita. The remainder of the cap would be allocated one-half to the state, one-half to local governments on the basis of relative population. This allocation could be overriden by a gubernatorial proclamation before the next session of the state legislature, and afterwords by rule state statute. e City of onlyIllinChicago ois)would dother Illinois io me notbesubjecttoanyaction by the Illinois governor or state legislature, however. There is a special allocation rule for tax increment financing bonds, but it would only apply to those states which issued more than $25 million of such bonds between July 18, 1984, and November 21, 1985. This provision would set aside the greaterof $6 per capita or $8 million of a state's volume cap for tax increment "qualified redevelopment bonds." This set aside could be overridden by state statute. Similarly, unless changed by the state, at least 50 percent of non-governmental bond proceeds in 1986 and 1987 would have to be used for single and multifamily housing bonds. Under the provision, gubernatorial authority to set a different allocation scheme by executive order would expire on the January 1st following the next year after enactment of the tax reform bill in which a state legislature met in executive session. If no state allocation law were passed and signed into law prior to that date, the state would automatically revert to the federal allocation scheme. For example, if this provision were enacted into law on August 17, 1986, a governor's authority would expire on January 1, 1988, as long as the governor's respective legislature met in regular session in 1987. lmz .......,.....,.......,.......«, .......... ....... ._x _...,. -14- OTHER NEW FEDERAL MANDATES: New Restrictions Which Would Apply toAll lax Exempt Municipal Bonds o Short term notes and private placements Banks and financial institutions could no longer deduct the interest costs they incur in carrying or purchasing tax-exempt bonds except in some instances. (Present law permits 80 percent of these costs to be deducted from taxable income). The provision would apply to all tax-exempt obligations (short-term and long- term) issued after December 31, 1985, except the bill provides that a bank may still take the current law deduction when it purchases or holds (carries) bonds after December 31, 1985 if: (1) they are general government bonds; and (2) the bond issue or private placement does not exceed $3 million per project, with a $10 million annual limitation per issuer or local jurisdiction. o Arbitrage In general, present law IDB rebate requirements and other restric- tions on arbitrage are recommended for all tax-exempt bonds. The proposal is very similar to the administration's proposal which severely restricts arbitrage and forces governments to issue more bonds to finance their projects, because investment earnings must be rebated to the Treasury instead of being used to reduce project costs. The rebate represents a 100 percent tax on certain invest- ment earnings thereby penalizing good cash management practices. o Advance Refundings The House bill prohibits advance refundings of "non-governmental" bonds, and imposes new restrictions on advance refunding authority for "governmental" bonds. Present law permits issuers to refinance outstanding debt without a time limitation except in the case of IDBs and MRBs. These two types of bonds generally may not be refunded more than 180 days before the bonds that are being refinanced can be'called. Advance refunding of so-called "governmental" bonds would be permitted under the following new federal restrictions: * no original issue could be advance refunded more than twice; * the amount of refunding bonds would be limited by the greater of the present value of the interest savings or 250 percent of the amount of the refunded bonds; a/�Z * the time period in which they would have to be called and during which they could earn arbitrage would be strictly limited; and f* any amount in excess of $1 million could only be issued if provided for under the state volume cap. ' Rehabilitation and historic tax credits: i The bill would modify current law to provide for a 10 percent rehabilitation tax credit for nonresidential buildings constructed before 1935 and placed in service after January 1, 1986. It would permit a 20 percent credit for residential and nonresidential certified historic structures. The owners of the property receiving the credit would have to reduce the basis of the property by the full amount of the credits earned. i Low income housing: In addition to the treatment of single and multifamily tax exempt housing bonds, the bill would retain certain incentives to benefit the construction or rehabilitation of low income housing. The bill would permit the owners of qualified low income housing to amortize the cost of additions or improvements up to a $30,000 per unit expenditure limit over a 5 year period.(Section 167(k)) The bill would not apply the at -risk rules (which limit the amount of tax benefits an investor can take to the actual amount invested) to certain low income projects. Targeted jobs tax credits: The bill would extend the targeted jobs tax credit for two years, but the amount would be reduced from 50 percent of the first $6000 in salary to 40 percent in the first year, and would be eliminated in the second. a/�Z HOW THE TAX PLANS COMPARE MWLL; odi. alw(. Srn.InElry; y0. lma: Wrl JM.Nxnl Cumm.lw; MC aid j a.ov{d.tla Om uw TW{{IIr MFOMM1 fmlomm wODId Ioftrf 11{t Io1ry0 ,l.ltlw".h 11M -'frt�rw�lallul' I%M• ,o%>Ifo..IDn. Yr%9 wv Tu.....q T. " Tuba rft6 WNr T.+n T.,ab6 Wpl.d n..ad awed �Iaw m..r Tauw TUY,aw{a00.4 t..y.w w...d [aµa,OM WM n.ir.,w l•a{aM a'6.iwx ,w L..IrWO.Iy U." TauW TualY {b" U.--w-w 4rd r d{` Tanta U." U.aY T� T.dY hm*. 0rd.{I,rrM.d. aqM .fl.rawYd^ 1,01r, w,.W Trywp IiWY T.YW •T..w rru..IG n00M T ---w hiMw..r.l Tuau.0, Tu"00 aI0.d Tub."4.,Pr b.ai LuY. Tu.OY D�adlramYdTM T." TYW. Ir#I.Ww ri. dalrlaa ria � w alh.dldal fy Llr0.r Ww w 1Y /wY � lYyriy � I.a�wa.allT w V. seem Yal w 1d.rleT1. GT. A o. Kt. w w w W.a.✓ w W.."w L w C-.."rra w w w I.YafIW Tu 4{Y fYr,tY 2nrbdm m, 2425 i R Yd.ad Inn 6..x14 m,i21%I I - InY.daY 14 dnY daoliw ildu.d "A,b4dAd ,41{d1�{%,4 Al" w 3m. I,AM Ude.. !2004 bd.wd {2000.WnM fS .,d,, wM kwm Da1.aY.Y llp4Ude.d {1,001.6dsd _,W. �.iwa4 {1,iM !1,004 Ud..y If•1M,6de.0 SUMald Daduofar k st C a,* SUM kw d M. ti{"I {2114 bwwI-w sum. UdrM � S.�MI ia� Iad.W 14004 w.wd Ulwdf —a.Yf V^ffim...a w Ya.UM dd W w 31.fKkA..d sunw, - WIn Wei Iri pb.." t4UdvM Ya Udell Tr, Plead NY Wed ..y TT a11201w toed .ft Ila.dsl d.dl fu]ay1 wf Wed CYdY14 �I..I.w �wlr D.AONYf.1.w Tb MAdlra.d D.dr011.L D.4i44r.IYiON _ d0N molar llw ba.ol.rwm..lfw Irl d.dwW d.du fwwn. I W aewdbuiw 1. Ilminm w lw e.m.11,00 raIlVw Ulmm bd..a1W.DW.IW awt-0rIM Irop.rry DWwlbl,W D.dIafIW.L T4a.tw prUdpd r.alMaar mManaY ra rw.d urlw,M �W luain.. In.a.. C.10wan Wrrr GadulN,w4 1M {alnn 11% M% 33% MIs CIMwIM,wY CY0.1 {al,. ITb edMM N. Waved U,rlr Na 10%aatlMN Na U.sa.Y (aPIbld UdnUt, wnd.Iw;WN radlwrTUawy 4i%wdMM bNowIIn1.1.w. o.d.ad.a Ur tY w . le.rrT n. Na w N%.a[ap lsr u.a0 r.9 tlIM MWiI... Tuw UAaKuI. W Yn Mq n.0nurT al -1 JMIIIbIm Yn WMUt I1%. IwIWM1w Dw.e.albw Inlrmlw•aq. • temniwllnl Iarm..aW band! MWLL; odi. alw(. Srn.InElry; y0. lma: Wrl JM.Nxnl Cumm.lw; MC aid j Vr.:............................. ..........._:............,...�.,,.t-................... December 31, 1985 3. General Revenue Sharing Unless the Congress passes legislation to reauthorize General Revenue Sharing, the program will expire September 30, 1986, and the last payment to cities will be made in October. The President signed into law this year a bill which will cut the program in FY 86 by 8.36 percent. This entire cut will be made in the fourth quarterly payment, thus, slashing the October payment to cities by 33 percent. The first round of Gramm-Rudman cuts will occur on March 1, 1986. At this point, no one knows exactly what the impact will be on revenue sharing. The January payments will be made in full beginning next week, but we anticipate that Gramm-Rudman will require cuts in the subsequent payments. According to our best estimate, all non-exempt domestic programs will be cut approximately 4.6 percent for FY1986. Because the first FY1986 GRS payment scheduled for next week will not be cut, there is a strong likelihood that the final three authorized payments would have to be cut a little more to provide for the full required cut. 'In other words, the April, July, and October payments might be cut about 6 percent in order to achieve the full 4.6 percent reduction for FY86. Although there is as yet total confusion, specifically with regard to GRS, in the Congress and administration, the legislation would appear to require cuts in the current fiscal year. The President's FY 87 budget proposal will eliminate the program entirely and may even eliminate the last payment scheduled to be mailed to cities in the first week of October. in the Senate, Senator John Heinz (R -Pa.) has introduced S318 to extend revenue sharing at current levels through FY1990. The following Senators have joined as co-sponsors: Howell T. Heflin (D -Ala.) Frank J. Murkowski (R -Alaska) Dale Bumpers (D -Ark.) David Pryor (D -Ark.) Lowell P. Weicker, Jr. (R -Conn.) Daniel K. Inouye (D -Hawaii) Alan J. Dixon (D -Ill.) Paul S. Sarbanes (D -Md.) John F. Kerry (D -Mass.) Carl Levin (D -Mich.) Donald W. Riegle, Jr. (D -Mich.) Frank R. Lautenberg (D-N.J.) Alfonse M. D'Amato (R-N.Y.) Daniel P. Moynihan (D-N.Y.) John Heinz (R -Pa.) Arlen Specter (R -Pa.) Ernest F. Hollings (D-S.C.) Albert J. Gore (D -Tenn.) James R. Sasser (D -Tenn.) Patrick J. Leahy (D-Vt.) Robert W. Kasten, Jr. (R-Wis.) al�l- V 1' V....:...,,... ............:.............,........... ................__.:c._,.,.... -2- In the House, Representatives Frank Horton (R-N.Y.) and Robert Walker (R -Pa.) have introduced HR796 to extend revenue sharing for 3 more years, and former New York City Councilmember Reprepsentative Ted Weiss (D-N.Y.) has introduced HR1400 to extend revenue sharing 5 years - just the same as the Heinz bill. The co-sponsors of the two House bills are: Richard C. Shelby (D -Ala.) Jim Kolbe (R -Ariz.) Tony Coelho (D -Calif.) Charles Pashayan, Jr. (D -Calif.) Estaban Edward Torres (D -Calif.) Samuel Gejdenson (D -Conn.) Wyche Fowler, Jr. (D -Ga.) Edward R. Madigan (R -I11.) Melvin Price (D -Ill.) Marty Russo (D -Ill.) Cooper Evans (R -Iowa) Harold Rogers (R-Ky.) Helen Delich Bently (R -Md.) Barney Frank (D -Mass.) Robert W. Davis (R -Mich.) Dale E. Kildee (D -Mich.) Howard Wolpe (D -Mich.) James L. Oberstar (D -Minn.) Doug Bereuter (R-Neb.) Barbara Vucanovich (R-Nev.) Sherwood L. Boehlert (R-N.Y.) Richard C. Shelby (D -Ala.) Barbara Boxer (D -Calif.) Tony Coelho (D -Calif.) Ronald V. Dellums (D -Calif.) Mervyn M. Dymally (D -Calif.) Augustus F. Hawkins (D -Calif.) Matthew G. Martinez (D -Calif.) Robert T. Matsui (D -Calif.) Esteban Edward Torres (D -Calif.) Walter E. Fauntroy (D -D.C.) Daniel K. Akaka (D -Hawaii) Cecil Heftel (D -Hawaii) Lane Evans (D -I11.) Charles A. Hayes (D -I11.) William 0. Lipinski (D -Ill.) Frank McCloskey (D -Ind.) Beverly B. Byron (D -Md.) HR796 Benjamin A. Gilman (R-N.Y.) Frank Horton (R-N.Y.) Stan Lundine (D-N.Y.) David O'B. Martin (R-N.Y.) Edolphus Towns (D-N.Y.) George C. Wortley (R-N.Y.) Bill Hendon (R-N.C.) Michael G. Oxley (R -Ohio) James A. Traficant, Jr. (D -Ohio) William F. Clinger, Jr. (R -Pa.) Robert W. Edgar (D -Pa.) Austin J. Murphy (D -Pa.) Thomas J. Ridge (R -Pa.) Don Ritter (R -Pa.) Robert S. Walker (R -Pa.) Gus Yatron (D -Pa.) John J. Duncan (R -Tenn.) Ed Jones (D -Tenn.) Donald K. Sundquist (R -Tenn.) Nick Joe Rahall, II (D-W.Va.) Robert E. Wise, Jr. (D-W.Va.) Jim Moody (D-Wis.) HR1400 Dale E. Kildee (D -Mich.) Howard Wolpe (D -Mich.) Robert A. Young (D -Mo.) Bernard J. Dwyer (D-N.J.) Robert G. Torricelli (D-N.J.) William B. Richardson (D-N.M.) Gary L. Ackerman (D-N.Y.) Joseph P. Addabbo (D-N.Y.) Major R. Owens (D-N.Y.) Ted Weiss (D-N.Y.) Walter B. Jones (D-N.C.) Charlie Rose (D-N.C.) Dennis E. Eckart (D -Ohio) Louis Stokes (D -Ohio) Robert A. Borski (D -Pa.) William J. Coyne (D -Pa.) Paul E. Kanjorski (D -Pa.) -3- (contId.) Barbara D. Mikulski (D -Md.) Joseph P. Bolter (D -Pa.) Barney Frank (D -Mass.) Albert G. Bustamante (D -Tex.) Edward J. Markey (D -Mass.) . Solomon T. Ortiz (D -Tex.) Gerry E. Studds (D -Masa.) Frederick C. Boucher (D-Va.) John Conyers, Jr. (D -Mich.) Nick Joe Rahall, II (D-W.Va.) George W. Crockett, Jr. (D -Mich.) Jim Moody (D-Wis.) Steps to Take: GRS is the highest priority federal assistance program of the nation's cities. It is the only federal assistance program which returns a portion of the revenue derived from cities back to them to spend according to the city's own needs and priorities. Nevertheless, it is clear that members of the House and Senate do not understand revenue sharing to be cities' highest priority. Unless that message is made clear in no uncertain terms, the program will be eliminated. Moreover, -because of the new Gramm-Rudman law, the Congress would be prevented from considering any legislation to reauthorize revenue sharing after this year unless it is incorporated in the Congressional budget resolution by April 15, 1986. I. Compile a record of what your city has been able to do with revenue sharing. Stress the projects built, the program beneficiaries, and the leveraging of other funds. Remember, as long as this program is perceived as a local elected officials' political slush fund, it is doomed. 2. Hold special hearings and press conferences to determine where cuts in servives or projects will have to be made if revenue sharing is terminated. Make sure city constituents understand that federal actions will directly affect local issues unless they make their views known. Invite your Congressional delegation to these hearings so they can understand and appreciate what is at stake. 3. Work closely with your state municipal league to get statewide attention on this issue. It is important that the governor and state legislature appreciate the statewide impact, and the ripple effects of the loss of revenue sharing. 4. Make sure to complete and return the enclosed survey so that NLC will have the most updated information to support renewal. 5. Make sure that your Congressional delegation knows your city's priorities before Congress resumes on January 21st. Where does your Congressperson stand on revenue sharing? How about your Senators? Get an answer, and please share that answer with your state league and with NLC. December 31, 1955 4. Housing s Community Development: Congress failed to complete any action on legislation to reauthorize HUD's assisted housing programs this year; it provided only a last minute 3 month extension of FRA authority. j On the very last day Congress was in session efforts to include T NLC backed changes in the UDAG selection criteria broke down.Not only did the House and Senate Banking Committee negotiations break down, but the entire budget implementation or "reconciliation" bill fell apart amid bitter disagreement between the White House, Senate, and House. Therefore, the FY1986 HUD -Independent Agencias Appropriations bill signed into law on November 25, 1985 set the funding levels for the current fiscal year - subject to the March,1 further round of cuts due to the Gramm-Rudman legislation as follows: The community development block grant (CDBG) is funded at $3.124 billion, a 10 percent cut from the $3.472 billion available in FY 1985 and assumes the continuation of the Section 108 loan guarantee program at $225 million. The Section 312 rehabilitation loan program is retained through loan repayments. The Urban Development Action Grant (UDAG) program is funded at $330 million, a 25 percent reduction from the $440 million provided in FY 1985. For HUD assisted housing the FY 1986 spending act provides $9.9 billion in new budget authority, estimated to aid 97,000 additional units including: 12,000 units of section 202 housing for the elderly or handicapped; 36,000 five-year term housing vouchers; 32,000 section 8 existing 15 -year term certificates; 10,000 section 8 moderate rehabilitation units; 5,000 new construction public housing units and 2,000 units of new Indian public housing. The rental rehabilitation and housing development grants (HODAG) programs are funded at $75 million each for FY 1986 and the FEMA emergency food and shelter program for the homeless is provided $70 million. The Administration's reported FY1987 budget proposal calls for major program reductions and eliminations for HUD Housing and Community Development activities. r ........... ....,............. .------ a... ......... ... .... ... ............,........... .. -2- According to HUD budget documents, $500 million of the $3.12 billion appropriation for the current FY1986 Community Development Block Grant (CDBG) would be deferred until FY1987, even though we are almost halfway through the current fiscal year and cities have incorporated their entitlement amounts as provided under the appropriation. The administration thus proposes a current year CDBG funding level of only $2.6 billion for FY1986. In addition to any cuts or deferrals by the administration, Gramm-Rudman will require approximately an additional 5 percent across the board cut. This across the board reduction combined with the 10 percent cut sustained by CDBG for FY1986 and the Administration proposed deferral would mean CDBG could be cut by 30 percent for FY1986. The Administration is proposing only $2.6 billion for CDBG in FY1987 with $500 million of those funds coming from the FY1986 deferral request for CDBG. The budget documents indicate that the CDBG cuts will be obtained by the development by HUD of a targeting proposal .that directs funds to those entitlement recepients with the "greatest need." The plan would also require changing the current allocation between entitlement and non -entitlement jurisdictions from 70 percent/30 percent to 65 percent/35 percent; assuming the termination of the current Farmers' Home Administration's Community development program. The FY1987 HUD budget proposal would once again call for the elimination of the Urban Development Action Grant (UDAG) program, which was reduced by 25 percent in the FY1986 appropriations to $330 million and will be subject to an additional 5 percent across the board reduction under Gramm-Rudman. The pian also proposes postponing or cancelling the January 1986 large cities UDAG funding round. For HUD assisted housing, the Administration's reported plan.would rescind at $6.2 billion of the $9.9 billion appropriated for housing assistance in FY1986 and would defer an additional $2.1 billion to FY1987. This would mean the elimination of the Section 8 existing and moderate rehabilitation programs, Section 202 housing for the elderly and handicapped, Sectoin 312 rehabilitation, rental rehabilitation and housing development grants (HODAG), and major reductions in public housing operating subsidies and modernization funds. a/� Department of Rousing and Urban Development 1987 (Dollars Budget in Millions) Program: Community Development Guarantee) Block Grants (and Section 108 Loan Budget Authority Entitlement Non -Entitlement Secretary's Discretionary Fund Outlays � 1986 2 625 2,145.0 919.0 60.5 3,577.4 1987 2,125 1,359 732 34 3,132 1988 2,740 1,759 947 34 2,686 19891990 2,850 1,830 986 34 2 675 . 2,955 1,899 1,022 34 2 ,778 1991 3,056 1,964 1,058 34 2,886 Section 108 Loan Guarantee Program Budget Authority (limit) i FPS outlays 1986 222.5 108 1987 0 172 1988 0 0 1989 0 0 1990 0 0 1991 i I 0 0 Repayments Net Outlays Total Outlays -91 17 3,594 -111 -39 3,093 -117 -117 2,569 -115 -115 2,560 r -77 -77 2,701 -59 -59 2,827 0 r 0 La<.,,...,,.....,............ December 31, 1985 5. Transportation The Congress took no action on re -authorization of the Surface Transportation Assistance Act this year. The Act, which authorizes both the federal highway and public transportation programs expires on September 30, 1986. The Congress did finally reach agreement on the fiscal 1986 appropriations for transportation earlier this month. The appropriations bill provides for a significant reduction in both transit and highway assistance - which levels will be subject to even deeper cuts effective March 1, 1986 with the first round of Gramm-Rudman reductions. FY 1986 Transportation Appropriations as approved in the Continuing Resolution (in millions) FY 1985 FY 86 FY 86 FY 86 House Senate Conf. MASS TRANSIT Section 3 Discretionary Grants $ 1,120* $ 1,010 $ 1,082 $1,045 --Bus 8 Bus Facilities (130) (115) (145) --Rail Modification (487.5) (435) (430) --New Starts (422.5) (380) (385) --Planning (50) (50) (50) --Elderly 6 Handicapped (25) (25) (30.5) --Innovative Techniques (5) (5) (5) Section 9 Formula Grants $ 2,449 $ 2,210 $ 2,066 $2,150 --Operating Assistance (875) (875) (856) (870) --Capital Assistance (1,502) (1,271.25) (1,150) (1,217) Section 18 Small Urban 6 Rural (71.8) (64.75) (60.6) (63) HIGHWAYS .Obligational Authority $13,800 $13,250 $12,546 $12,750 AIRPORTS Obligational Authority $ 925 $ 925 $ 910 $ 925 *Includes $20 million in unobligated FY 1984 contract authority. a/141( 3 -2 - Public Transportation: The Surface Transportation Assistance Act of 1982 expires on September 30, 1986. While no proposals (the House Public Works and Transportation Committee withdrew their proposal) have been introduced to date, the Administration is currently working on a major redraft of federal transit and highway assistance. Their proposal is again expected to include a phase-out of operating assistance for all urbanized areas over 200,000 and significantly enhance state involvement in the administration of any federal transit assistance. These revisions will also be accompanied by proposed substantial reductions in the level of federal assistance. The highway provisions of the Administration's proposal are expected to provide more flexibility in the use of urban highway funds, but will also be accompanied by increased state involvement and reductions in overall funding levels. NLC supports changes in the STAR that facilitate the use of federal assistance to reflect more accurately local public trans- portation (such as local option on the use of transit aid for operating or capital assistance) and highway needs and priorities, but we remain steadfastly opposed to the elimination of operating assistance (at least 35 percent of which is used to comply with federal transit -related mandates). Furthermore, based on information available to date on the Administration's proposal, we see no programmatic improvements or benefits to cities from proposals unilaterally enhancing the role of states in the administration of highway or public transportation programs or in significant funding reductions. llqlT December 31, 1985 6. Environment Despite a number of expiring programs, Congress failed to complete action on any environmental legislation in its first session, and will have a number of major issues affecting municipalities when it returns. In a key local issue, NLC was successful in getting the Congress to approve $600 million for the municipal wastewater treatment grant program. Full FY1986 funding has been held up pending final Congressional approval of the Clean Water Act, which expired on September 30th. The $600 million - one quarter of the 1985 funding level - is intended to provide funding until the Rouse and Senate reach agreement on re -authorization legislation. The Rouse and Senate have both acted on their own versions of re -authorization legislation (R.R.8, S.1128). Both bills reject the administration's request to phase out the municipal construction grants program; however, because the Senate version contains a new allocation formula, agreement between the Rouse and Senate has been delayed, jeopardizing the construction grants. i In addition to ensuring continuity of the $2.4 billion municipal i sewer grants program to enable cities to comply with the federal Clean Water mandates, NLC is supporting efforts to exempt municipalities from legislative and EPA regulatory proposals to require municipal stormwater discharge permits. EPA PERMIT REQUIREMENTS FOR MUNICIPAL STORM SEWERS Separate municipal storm sewers discharging into the surface waters of the United States have technically been subject to Clean Water Act permits and pollution control provisions since the Act was passed in 1972. EPA has given very low priority to the storm water discharge issue, concentrating its resources instead on bringing industrial operations and municipal sewage systems into compliance. Now, in response to a federal court ruling, EPA has said it will require storm water collection systems to obtain a permit similar to those issued to waste treatment facilities and major industrial plants. Recent regulations proposed by EPA will require municipalities with separate storm water sewers to apply for a permit application which entails submission of detailed flow and monitoring data, details of drainage area, pollution characteristics, etc. for each discharge point, for run-off from highways, for drainage ditches, a/14Z -2 - etc. Based on estimates of sampling and analysis costs, costs per permit are expected to be anywhere from $1,100 to $8,500. EPA estimates there are more than one million separate storm water discharge points within the country's 366 major urban areas. From the perspective of local government, however, there is considerably more at stake than just the procedural burden and the cost of the application requirements. EPA and the states have a T mandatory legal duty to issue permits that impose treatment and control conditions on the discharge. While precise costs for control are almost impossible to calculate, they are expected to be significant, and more importantly, totally a local government expense since storm water control is not now eligible for federal grants under the sewage treatment construction grants program. Failure to apply for a permit or comply with the permit conditions is a violation of federal law and exposes local elected officials as well asappointed operating officials to both criminal (up to 3 years in jail) and civil (fines of $25,000 per day) prosecution from suits filed by the federal government or by citizens. Attempts to amend the Clean Water Act -- currently under consideration by Congress -- to exempt separate storm sewers from the permit requirements except where EPA could identify a specific pollution problem have, so far, been unsuccessful. There is still an opportunity to gain some measure of relief during the House -Senate conference on the Clean Water Act amendments (H.R. 8, S. 1128) which is expected to take place within the next two to three weeks. To accomplish this, Congress needs to be made aware of the enormous cost in manpower and physical plant to implement the program, the folly of the present EPA regulatory approach and the diversion it would cause in federal, state and local resources now earmarked for higher priority water pollution control problems. Congress should suspend the permit requirements for separate municipal storm sewers pending a better understanding of the task, the need, and the best approaches to controlling the storm water discharges that need to be controlled. Superfund: The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) to provide for cleanup of the nation's worst hazardous waste sites expired September 30. EPA has suspended clean-up activities pending completion of a re -authorization proposal which includes taxing authority to pay for remedial investigations, feasibility studies (RI/FS) and clean-up costs. C�1T C L n :CD While the House and Senate have completed re -authorization measures (HR 2005, formerly S 51 and HR 2817 respectively), differences over the taxing mechanism to pay for the re -authorization have prevented any final agreement between the White House, Senate and House. We expect the House and Senate to return to the issue of. how to pay for the Superfund program early next year. NLC supports prompt re -authorization in order to assure clean-up of sites in and around cities, affecting the health and safety of municipal residents. Safe Drinking Water Act: Both the House and Senate have passed bills (HR 1650, S 124) to regulate numerous toxic contaminants in public drinking water. The Administration opposes both bills, saying such regulation should be left to the states. While conference to resolve differences between the two verions has been tentatively scheduled numerous times, it has not yet taken place. The major stumbling block has been inclusion of a major groundwater protection program: the House bill contains a requirement for state groundwater planning; the Senate bill does not. NLC supports enactment of a program to provide guidance and uniform standards in public drinking water. The outlook for completion is unlikely. cl?liz December 31, 1985 7. Human Resources Mandatory Medicare: The House and Senate each passed legislation this year requiring municipalities and their employees to participate in and contribute to the Medicare trust fund in order to reduce the federal deficit. It was, in effect, a new federal tax on cities and municipal employees. The House version would have required participation and contributions for all municipal employees hired after January 1, 1986 - tomorrow. The Senate proposal would have required both new and existing employees to participate, effective October 1, 1986. The proposals are estimated to cost state and local governments some $537 million over the next'3 years. Just before Congress adjourned, House and Senate conferees reached agreement on the House version - that is to require all new state and local employees hired after tonight to participate. The conference agreement fell apart, however, over other issues. Therefore, the status of the new Medicare mandate for cities will be an issue which Congress will confront after it returns on January 21st. It is doubtful that Congress will or could make any mandatory Medicare provision retroactive. It is uncertain, at this point, whether a serious effort will even be made to resolve the differences. There is a chance the initiative will simply die. NLC strongly opposes any new tax or mandate on local governments. Employment and Training Programs: Congress provided $106.6 billion in FY86 appropriations for the Departments of Labor/Health and Human Services, and Education. Under the bill, the Job Training Partnership Act (JTPA) Title II -B Summer Youth Employment Program (SYEP) funds were reduced in FY86 by $100 million from FY85 levels and in FY87 by $160 million from those same FY85 levels. JTPA Title III Dislocated Worker Assistance funding was also reduced by $122.5 million from FY85 levels. Appropriations for FY86 include $640 million in funding in FY86 for the Job Corps. This approximate $23 million increase from FY85 funding levels was transferred from a similar $23 million reduction in the JTPA Title II -A Block Grant. All other employment and training programs remain essentially frozen at FY85 funding levels. a�� &a Other Appropriations Provisions: The bill also provides for the allocation of $28 million for grants to state and local health planning agencies for FY86, compared with $65 million provided in FY85. Fuel subsidies for the poor are funded at $2.1 billion, frozen at FY85 levels. Social service block grants are funded at $2.7 billion, down $25 million. The Head Start program is funded at $1.09 billion, approximately $12.1 million over last year's levels. The Work Incentive (WIN) Program, targeted by the Administration for elimination, is funded at $220 million, down $47 million from FY85 levels. All these'FY86 funds will be subject to a 4-5 percent cut under the first round of Gramm-Rudman. The Targeted Jobs Tax Credit (TJTC): The Tax Reform Act of 1985 recently adopted by the House includes a two year extension of the TJTC currently scheduled to expire on December 31, 1985. The credit thus would remain available for wages paid to individuals who begin work for an employer on or before December 31, 1987, if this provision is agreed to by the Senate. The cost of the extension is estimated to be $1 billion. The bill limits the credit in three respects. First, the 258 credit for qualified wages paid in the second year of a targeted j individual's employment is eliminated. Second, the 508 credit for qualified first year wages generally is reduced to a 40% credit. i Thus, the bill generally reduces the maximum credit per employee from $4,500 (50% of $6,000 plus 258 of $6,000) to $2,400 (40% of $6,000). The bill does not reduce the credit presently allowed for wages of economically disadvantaged summer youth employees (858 of up to $3,000 of qualified first year wages). Third, under the bill, no wages are to be taken into account for credit purposes with respect to any individual if that individual is employed by the employer for less than 14 days. j A bill to provide a temporary extension of the TJTC died in the j last biter hours before Congress adjourned. j Plant Closings: The House of Representatives narrowly defeated 4 H.R. 1616, plant closing notification legislation strongly supported by NLC'and specifically supported by an NLC resolution. 4 (See Nation's Cities Weekly, Nov. 4 and 11, 1985.) Immigration: The House Judiciary Subcommittee on Immigration has approved H.R. 3080, major immigration reform legislation introduced by Judiciary Committee Chairman, Rep. Peter V. Rodino (D-N.J.). Along with an increased temporary farmworker program, the legislation would make it illegal for employers to knowingly hire undocumented aliens and legalize foreigners without papers 1-17/,<Z •�rlNVaa\:aaa!aaa Na\Hw.a av�aa.!t.n�n'M.i.v f::...........------.wv. -3- who have lived in the country since before January 1, 1982. The issue of temporary foreign agricultural workers has been left to further negotiations. A similar bill, S. 1200, passed the Senate in December. The House bill will now go to the full Committee on the Judiciary. r r'- CITY'OF. IOWA ---C CITY;. JIOWA! :.':� PROPOSED'-'---, I- I, i� FISCAL •YEAR 1987 JULY 1, 1986 THRU JUNE 30, 1987 CITY OF IOWA CITY. John McDonald Darrel Courtney George Strait UTY MANAGER Neal G, Berlin CITY COUNCIL William J. Awrisco, Mayor IOWA Larry Baker Kate DicKson Ernie Zuber FINANCE DIRECTOR Rosemary Vitosn a FISCAL •YEAR 1987 JULY 1, 1986 THRU JUNE 30, 1987 CITY OF IOWA CITY. John McDonald Darrel Courtney George Strait UTY MANAGER Neal G, Berlin CITY COUNCIL William J. Awrisco, Mayor IOWA Larry Baker Kate DicKson Ernie Zuber FINANCE DIRECTOR Rosemary Vitosn a 1 \ I J a,' I CITY OF IOWA CITY PROPOSED CAPITAL IMPROVEMENTS PROGRA14 FY87-91 TABLE OF CONTENTS PAGE CAPITAL IMPROVEMENTS PROGRAM, FY1987-91 Introduction . . . • • • • • • • • • 1 Fiscal Policy . . . . _ 3 Program Summary: CIP Schedule • • • • 6 CIP Funding . . . . . . . . . . . . .8 General Obligation Bond Issues, Chart . . . . . . 13 Abbreviations . . . . . . . . . . . 14 Projects: 15' Map A - Streets Projects • • • • • • • • • N Dubuque St. Curb.b Gutter 16 Melrose Ave.-Byington to R.R. Bridge 17, Summit/Burlington Signalization . . . . . . 18 Highway 1 -Sunset Signalization . . . . . . . . . . . ", 19 Benton/Mormon Trek Signalization, . . . . . 20 Kirkwood/Dodge. Signalization, . . . 21' Scott Boulevard Paving, • • • • • • 22 Melrose Avenue Paving Improvements . . 23 Rohret Road Paying improvements . . . . . . . . . . 24 Curb Ramp Installation. 25 FY87 Alley.Paving26 .'. Rochester/1st Ave. Signalization . . . . . . . . . . . . . . . . 27 Sunset/Benton Signalization . . . . . .. ;.128' Taft Speedway Paving_ • • • 't:30 Dodge St. -Dubuque Rd, to Governor Railroad.Crossing at First Avenue . . . . . . . . . . . . . . 31 R.R. Crossing - Dubuque St. and ,,,Clinton Street, • • • • • • , 32 Extra Width Paving.- First.Avenue and Sandusky . Dr . . . . . . . . . . . . . . . °33 Extra Width Paving.- Foster Road . . . ... . . . . . . . . . . . .34 Map B: Bridges 8 Sidewalks Projects . . . . . . . . . . _. 35 West Side Walkway . . .. • • • • • • • • • 36 Gilbert St. Bridge Deck Repair . . . . . . . . . . . . . . . . . . . . . 31 Dodge Street Bridge Deck Repair . . . . . . . . . . . . . . . . . . . . . 38 I �lM1vaavaara as a t a.MtM1a\ ua� tial aa.anw.wr.v.... a..\.taaaaw�s...+.!.�rN.irr...•.v.•. .\ nv.'. ... rx.'Iyv.Y.\vWas�.a•w Burlington St. Bridge at Ralston Crk. Woolf Avenue Bridge Deck Repair ' . ' . ' ' ' ' ' ' ' ' • ' . • • • 39 . . Melrose Avenue Bridge Deck Repair ' ' . ' ' ' ' ' ' ' ' . • • • • • 40 . . Benton St. Bridge Widening ' ' ' ' ' ' ' ' ' ' • • • • • • • • • 41 Improve Bridges on Brookside Dr. and 42 Second Ave, Burlington St. Footbridge. ' ' ' ' ' ' ' • ' • • • • • • 43 Pedestrian Bride Over highway 6 . . . ' ' ' ' ' ' ' ' ' ' ' • • • • • • 44 Governor St. Retaining hall 45 Keokuk/Highway 6 Bypass Sidewalk' ' ' ' • • • 46 North Dubuque St. Sidewalk ' ' ' ' ' ' ' ' ' • • • • • • • • • • 47 Map C: Urban' Renewal, City Facilities ' ' ' • ' • • • '" .48 8 Other Projects City Plaza Light Fixture Replacement .. . ' . ' ' ' ' ' ' ' ' ' ' ' ' • "'49 Parcel /65-2x' . . . . . . . . . . . . . . . . 50 Ralston Creek Property Acquisition 51' and Clearance - - ' . Renovation of City Park Tennis Courts Napoleon Park 52: Restrooms53 ., Development of Ryerson's Woods ' ' ' . ' ' ' ' ' • • • 54: Na : Market Park Play Are ' ' ' ' ' 'i ' • • 55' Terrell Mill Park Improvements Bus 56' Fleet Expansion/Replacement57 Animal Control Facility Remodeling . . ' . . ' ' ' ' ' `:58 Civic Center Expansion ' ' ' ' ' ' ' • ' • • • • • 59 Cemetery Building Addition ' ' ' '60: Benton St. Culvert Replacement 61 North Corridor-Sewer62', Park Road Storm Sewer ' ' ' ' ' ' ' ' 63 Orchard 6 Douglass -Storm Sewer ' • ' ' ' ' ' ' ' ' ' 64 CIP'PENDING-LIST: • • • • • • • , 65 Existing *Wastewater Treatment Plant ;.'Upgrade Wastewater,Treatment Facility 66 Pool Complex . . 66 Ridge Rd. 6 Dubuque St. Intersection . . . ' . ' . . 66 Airport Master Plan 11 66 River Corridor Buffer and Trail System 67 Iowa Avenue Restoration67 Softball/Soccer Fields ' ' ' ' ' ' ' ' 67 New Bridge Connecting Governor and 67 Keokuk ......... .... .. y8 I CAPITAL IMPROVEMENT PROGRAM INTRODUCTION Capital improvement programming is the planning, coordination, and scheduling of public improvements for a community over a period of years. The scheduling is developed according to priorities based upon need, desire and importance of such improvements to the community within the constraints, of the City's ability to finance, as well as having the staff to design and administer the projects. Essen- tially, the Capital Improvement Program (CIP) is a legislative and management tool to facilitate the scheduling, planning and execution of a series of public improvements over a five year period. The FYSS-FY89 CIP is a compilation of projects currently in the CIP and new project requests. Although most projects were placed into the proposed five year plan, a few projects have been placed on a pending list. Those projects generally were viewed as having a low priority for funding at this time. One exception is the Wastewater Treatment Plant. Although it was included on the pending list, it is considered a high priority. However, because future actions are uncertain, it is impossible, at this time, to estimate the cost or timing of the project. It. FINANCING OF PROJECTS The financing of the projects included in the FY87-FY91 CIP is detailed on each project sheet. j Summaries of funding by sources appear in this front section. The City strives to secure and utilize funds other than operating revenue and general obligation bonds to the maximum extent practical and utilize general obligation debt within the parameters of the city's fiscal policy. w The graph at the end of this front section shows General Obligation (GO) Bond issues by year and the issues proposed for the next five years, based on this Proposed CIP. The property tax supported GO Bonds are more equal than issues in past years. The projects have been scheduled to achieve this level use of GO Bonds. Furthermore, other sources of revenue are used wherever possible for funding the projects. III. FISCAL POLICY CONSIDERATIONS A concept of sound financial planning is critical for the success of any program whether it be public or private. As a result, the CIP is a determination of 1) the levels of capital projects and 2) the J sources of financing those projects. While determining the scheduling of projects for completion withbothin the next those that have eyeen gIt was est established byaState awto landth the hose hat 'ha have beenaado tedrass olictabiothe City Council as a guide to future City expenditure and indebtedness. It is the later limitation to which the City Council addressed itself in 1973 by the formal adoption of a fiscal policy that is aimed at controlling and regulating the property tax level for debt service on General Obligation -� Bonds used to finance.capital expenditures. The 1979 revised fiscal policy provides a more comprehen- sive method of financing the many capital projects which the City needs. Adherence to this fiscal policy can be expected to provide the following advantages: ii J 1 a 3 1. Investors interested in City of Iowa City bonds can refer to a fiscal policy and rely on it in making decisions on whether to buy obligations of the City and in determining the interest rates that they will bid. A formally approved fiscal policy has a strong bearing an the City's ability to maintain and improve upon the factors which determine its credit rating. .i 2. The proposed property tax levy for debt service, on which there is no state imposed maximum limit, can be s{ projected and regulated to either remain relatively stable or to increase at an even controlled rate. 3. Planning for public improvements normally takes place over a period of years. Nearly always, funds are spent for engineering and right-of-way prior to the years in which actual construction takes place. The fiscal policy can establish, amounts of money which will be, spent for several years in the future for the best public improvements facility planning and mike it possible to concentrate time and funds on those priority projects which can be financed and constructed within the City's financial _ limitations. 4. A very significant advantage of a formal fiscal policy is to demonstrate the need for additional revenue sources in future years by matching expenditures and indebtedness permitted by such:a fiscal policy - against a much greater need for additional public improvements. _ A copy of the City's Fiscal Policy follows. i 2 ' 0 I FISCAL POLICY ANNUAL OPERATING EXPENDITURES J 1. BALANCED DOGET: The budget of the City of Iowa City shall be drawn so that estimated revenues and anticipated expendi- tures are equal. (State law requirement.) J 2. TAXTAX�CEILING: The budget of the City of Iowa City shall be drawn so that tax revenue in the general operating fund does not require a tax levy in excess of the limit established by State law, CAPITAL EXPENDITURES I. DEFIITIUN: A. Capital Improvements - Capital items of a relatively permanent nature, such as`buildings' 'and other attachments or improvements to land which are intended to remain so attached such as storm drains, sewers,and streets. -Capital improvements have four characteristics: (1) They last a long time. (2) They are relatively expensive. (3) They usually don't recur annually. (4) They result in fixed assets. B: Capital Expenditures - Those expenditures for public improvements and their preliminary studies and the acquisitions of property or equipment for new Public improvements. Capital expenditures are expenditures for capital improvements and shall be financed under the provisions of this fiscal policy and planned in terms of the five year Capital Improvement Program. Excluded from capital expenditures are operating expenditures; those annual expenditures which are necessary to the maintenance of the city, the rendering of services, and providing for normal operation., 2. PROJECT IS. Capital improvement projects for the five year period shall be analyzed for the following: (1) Compatibility with the Comprehensive Plan. 3 i 1 I � J —1 J h I i 2. TAXTAX�CEILING: The budget of the City of Iowa City shall be drawn so that tax revenue in the general operating fund does not require a tax levy in excess of the limit established by State law, CAPITAL EXPENDITURES I. DEFIITIUN: A. Capital Improvements - Capital items of a relatively permanent nature, such as`buildings' 'and other attachments or improvements to land which are intended to remain so attached such as storm drains, sewers,and streets. -Capital improvements have four characteristics: (1) They last a long time. (2) They are relatively expensive. (3) They usually don't recur annually. (4) They result in fixed assets. B: Capital Expenditures - Those expenditures for public improvements and their preliminary studies and the acquisitions of property or equipment for new Public improvements. Capital expenditures are expenditures for capital improvements and shall be financed under the provisions of this fiscal policy and planned in terms of the five year Capital Improvement Program. Excluded from capital expenditures are operating expenditures; those annual expenditures which are necessary to the maintenance of the city, the rendering of services, and providing for normal operation., 2. PROJECT IS. Capital improvement projects for the five year period shall be analyzed for the following: (1) Compatibility with the Comprehensive Plan. 3 L 0 (2) Revenue source - A clear distinction shal.l be made between tax supported and self -supported bonds (G.O. versus revenue bonds). All projects supported by revenue bonds must demonstrate ability to . develop sufficient income to repay their costs and costs associated with financing. In addition, _ proposed revenue sources shall be analyzed in terms of whether the revenue can be used for the proposed project and the probability that the revenue will be available. (3) Compatibility with the City Council's goals. 3. MAXIMUM LIMITATIONS ON GENERAL OBLIGATION BONDS: The following two maximum limitations shall apply to general obligation bonds: _ A. Debt Limit: Debt incurred as a general obligation of the City of Iowa City shall not exceed constitutional -or,. - — statutory limits: presently 5% of the market value of the taxable property within the corporate limits as established by the City Assessor. (State law requirement.) y B.,,Borrowing Reserve: A minimum of 20% borrowing,reserve, or debt margin, shall be maintained to meet emergencies,'' and 'with if so used, the bonds shall be retired as soon as reasonably possible in accordance the provisions of this fiscal policy. 4. CEILING ON DEBT SERVICE: i Debt service charges payable from the general tax levy shall not exceed 25% of that levy in any one fiscal year. _ i 5. FINANCING: As a'general rule financing of capital improvements shall meet the following guidelines: i A. General property tax and operating revenues, to the extent available, shall be used for capital, project financing. — B. When general property tax and operating revenues are not available under the maximum tax'retes - permitted by law or deemed advisable by the Council, financing of capital projects and replace- ments may be accomplished by the use of bonds as outlined in Section 6 hereof. C. Every effort shall be made to seek out state or federal grants or assistance to offset a portion of the cost of capital projects. 1 t�1 1 4 .d i til1 �'�w.MlAiaataa!aa\.t alHatvl a<viv�!aa+w.w.v...v.avvaa-.aw�R....».i::w....wv..v..v.:. e.v. rvOy:.v:vvi.v.�.v�w i 6. BOND ISSUES: A. General obligation bonds - Bonds shall be of a serial type and general obligations to the City of Iowa City. They shall have a maximum maturity of 20 years. The maturity schedule shall provide for level principal amortization payments insofar as practicable. lB. Revenue Bonds - Revenue bond financing shall be determined after first reviewing whether the use of revenue bonds could be more advantageous than financing - f Bonds shall be issued in accordance with the following: with general obligation bonds. Revenue (I) Amortization of principal and interest shall approved estimates will provide from next revenuerequire no more, including reserves,• -than s to be available. (2)Insofar as one fulpossible, debt service, after the project has been'`completed and' in operation for l fiscal year, shall be level within practical constraints each year. J (3)'''All ''revenue bonds for public purposes shall be sold at public competitive bidding in " dance with the requirements of Chapter 76, Code of Iowa as amended. accor- The first fiscal policy was adopted by motion of the City Council at its regular meeting on June 5, 1973. This revised policy was adopted by' Council, motion on June 19,-1979.' J . 5 %4 4 CITY OF IOWA CITY CAPITAL IMPROVEMENTS PROGRAM FY07 - PY91 - I PROJECT ` PRIOR YRS' PY67 PY88 FY89 FY90 FY91 FUTURE'YRS 'TOTAL N DUBUQUE ST NRB 6 GUTTER WEST BIDE WALKWAYS 0 0 - 0 0 ],500 80,5D0 0 84,000 ,. 0. 3.000 p 0 NECROSE--BYINCTOM TO RR BRIDGE 0. 0'' 0 :..2.000`. SUNNIT/BURLINGTON SIGNALS - 0 0 0 0 {•000 ]71, OOD 0"778,000- .. .:'.0 :31.000. 0 0 HNY 1/SUNSET SIGNALS 0 0 0'- 21,000 0 31.000 p 0 .. BENT'ON`ST/HORHOH, TREK SIGNALS _. 0 0 0'- 71,000 KIRKNOOD/DODGE BIGNALIEATION ..0 0 21.000 0 0 . :..: 0 0,, 0 . - 0- 21,000 0 i :.... ..... ,. SCOTT BOULEVARD PAVING ...i:.) 0 0 0 •0 _. 21,000 `, .'i ... .., 08 NE1AE AVE PAVING 0 -- - 0 76,000 1,101 ,000 0 0 1,170,000 0 .;. 81.000-V 710,000 p ROBERT ROAD PAVING - 0 0 ':0 791,000 i. . CURB NT INSTALIATION 0 0 - 26,250 717,000 0 0 U 713,250 ALLBY PAVING FY87 10,]00 11,600 12,113 13, 683 13,250 -23,,820 077,800 -. 0 61,000 0 .1 _. ; :, ROCHESTER/FIRST AVE SIGNALS 0 0 0 0 0 61,000 24,000 0 0 SUNSET/EENTON SIGNALS 0 0 0 0 21,000 TAR SPEEDWAY PAVING O 21,000 p 0 0 0 31,000 DODGE ST - DBD RD TO GOVERNOR 0 0 21,000 • 780,000 0 0 0 101,000 ' HEARTLAND RR R-INGS, IST AVE 0 0 160,500 ]BB, 500 0 0 0 519.000 500 89,300 0 HEARTLAND RR Y-INGSI D Bq/CLINT 500 1/5,500 0 0 0 0 90,000 TEA EENIDTW-FOSTER RD 0 0 0 0 0 116,000 .. i.. 0 1,200 6,700 0 0 EXTRA WIDTH -18T AVE i BAWOOBKY 0 0 0 10,500 0 28,500 p 0 GILBERT 8T BRIDGE DECK 6,076 67,{0{ 0 0 28,500 DODOS ST BRIDGE DECK 17,786 110,841 0 0 0 0 0 69,1]0 I I BURLINGTON Or OR AT RALSTON CR 3,3EE 37,752 p 0 0 0 0 154,270 LHRILF AV BRIDGE DECK 0 0 0 0 0 11,]10 0 6,976 • 73,681 0 0 - NELROSE AVE BRIDGE DECK 0 0 0 00,660 9,021 95,716 0 0 BENTON ST BRIDGE WIDENING 777,]00 7,155,000 0 0 0 0 0 0 0 2,127,700 101,310 6 i� • i - I ! f i PROJECT BROOKSIDE DR A 2ND AVE BRIDGES I I� CITY OF IOWA CITY CAPITAL IMPROVEMEWTS PROGRAM PY87.-. PY91 PRIOR YRS PY87 YY88 FY89 FY90 FY91 FUTURE YRS TOTAL 0 26,000 256,000 0 0 0 O 280,000 0 0 0 0 61,200 0 0 61,200. _ 0 0 0 0 40,000 620,000 0: 460,000.. 0 0 5,500 56,500 0 0 0 62,000. 0 0 60,000 0 0 0 0 -. 60,000 0 0 .1,000 .50,000 0 0 0, 57,000:. 0 10,165 0 0 0 0 0 70,165 .10,000 115,600 0 0 0 0 0 ,115,600.. 0 0 66,070 0 0 0 0 66,070 0 0 66,520 0 0 0 0 66,520 - 0 $1,860 0 0 0 0 .0;. .51,860 0 0 16,700 0 0 0 0 .16,700 .•6,595 6,ODO 0 0 0 0 0 ;,10,595:,; , 0 1,200 0 0 0 0 0 1. 1,200; 0 0 960,000 620,000 660,000 150,000 150,000 2,520,000 0 0 99,500 0 0 0 0.. _, 991500 0 0 0 228,750 1,021,250 0 0 7,250,000'.. , 0 0 11,000 0 0 0 0 11,000 0 87,500 99,000 0 0 0 0 182,500 0 0 8,000 115,000 0 .0 0 121,000 , 0 0 6,000 107,000 0 0 0 111,000 0 0 20,500 151,500 0 0 0 172,000.: __________ --------__ -___-9_600 :.. 7,]11,905 ],876, OIS 7,757, 9I6 6,669,]00 1,188,7]0 150,000 16,829,600 8 BURLINGTON ST FOOTBRIDGE J PEDESTRIAN BRIDGE OVER HWY 6 GOVERNOR ST RETAINING WALL ,-. KKOKUK/HYY 6: BYPASS SIDEWALK N DOBUOUE ST SIDEWALK , J CIM PLAIA LIGHTS REPLACIU!" PARCEL 165-2A (BLACKHAWK PARK) 'I PROPERTY ACO 6,CLEARANCE CITY PARK TENNIS COURTS NAPOLEON PARK RISTROOKB•. RVERSON'S WOODS DEVELOPMENT N MARKET PARK PLAY AREA r t �7 TERRILL MILL :PARK IMPROVEMENTS BUS FLEET EXPANSION/REPGCENT ANIMAL CONTROL FACILITY:• -' CIVIC CENTER -EXPANSION ; CEMETERY BIRO'EXPANSION BENTON BT CULVERT REPLACEMENT N CORRIDOR SEWERAGE EXTENSION PARK RD STORM SEVER ORCHARD/DOUGGHS STORM BENER TOTAL I I� CITY OF IOWA CITY CAPITAL IMPROVEMEWTS PROGRAM PY87.-. PY91 PRIOR YRS PY87 YY88 FY89 FY90 FY91 FUTURE YRS TOTAL 0 26,000 256,000 0 0 0 O 280,000 0 0 0 0 61,200 0 0 61,200. _ 0 0 0 0 40,000 620,000 0: 460,000.. 0 0 5,500 56,500 0 0 0 62,000. 0 0 60,000 0 0 0 0 -. 60,000 0 0 .1,000 .50,000 0 0 0, 57,000:. 0 10,165 0 0 0 0 0 70,165 .10,000 115,600 0 0 0 0 0 ,115,600.. 0 0 66,070 0 0 0 0 66,070 0 0 66,520 0 0 0 0 66,520 - 0 $1,860 0 0 0 0 .0;. .51,860 0 0 16,700 0 0 0 0 .16,700 .•6,595 6,ODO 0 0 0 0 0 ;,10,595:,; , 0 1,200 0 0 0 0 0 1. 1,200; 0 0 960,000 620,000 660,000 150,000 150,000 2,520,000 0 0 99,500 0 0 0 0.. _, 991500 0 0 0 228,750 1,021,250 0 0 7,250,000'.. , 0 0 11,000 0 0 0 0 11,000 0 87,500 99,000 0 0 0 0 182,500 0 0 8,000 115,000 0 .0 0 121,000 , 0 0 6,000 107,000 0 0 0 111,000 0 0 20,500 151,500 0 0 0 172,000.: __________ --------__ -___-9_600 :.. 7,]11,905 ],876, OIS 7,757, 9I6 6,669,]00 1,188,7]0 150,000 16,829,600 8 9 \wit\waa.wv\lvwwn.WN! Y::.:wwa-+�wawn�..M..nwi�lN..�nV. _>tiavr!•..vtia�'.v.Yti•wW�ww�r PROJECT PRIOR YRS N DUBUQUE ST CURB 6 GUTTER 0 MELROSR--BYINGTON TO RR BRIDGE 0 f SUBNIT/BURLINGTON SIGNALS 0 HWY 1/SUNSET SIGNALS 0 DENTON ST/MORMON'TREK SIGNALS 0 KIRRWOOD/DODGE�BIGNALIEATION 0 SCOTT BOULEVARD PAVING - 0 NEIAOSE AVE PAVING 0 ROHRET ROAD PAVING - 0 _. ROCHESTER/FIRST AVE SIGNALS 0 SUNSIMSENTON SIGNALS p TAFT BPEEDWAY'PAVINO - p DODGE ST - DBQ RD TO GOVERNOR 0 - HARTLAND RR CROSSINGS -IST AVK- Soo NART LAND AN CROSSINGS-D8Q/CLIN -' 500 EXTRA WIDTH -FOSTER RD 0 MAR WIDTH -1ST AVE 6 SANDUSKY 0 GILBERT ST BRIDGE DECK , I -: 6,026 DODGE ST BRIDGE DECK 1 13,386 •BURLINGTON ST SR AT RALSTON CR 3,588 J WOOLF AV BRIDGE.. DKCK 0 NEIROSE AVE BRIDGE DECK-- - 0 BENTON ST BRIDGE WIDENING - -- 272,100 BROOKSIDE OR 6 2ND AVE BRIDGES t. 0 BURLINGTON ST FOOTBRIDGE p CITY OF IOWA CITY CAPITAL IMPROVEMENTS PROGRAK PY87 - FY91 GENERAL OBLIGATION BONDS PY87 0 0 21,000 10,500 0 0 0 86,000 0 26,000 0 0 0 26,500 60,100 6,200 0 63,606 160,866 37,752 6,976 9,026 975,000 26,000 0 PY88 FY09 FY90 0 0 7,500 0 0 6,000 O 0 0 0 0 0 26,000 0 0 21,000 0 0 0 26,000 1,106,000 710,000 10 0 -- 2,625 31,700 0 0 0 0 26,000 0 0 2,100 35,000 '0 160,500 96,500 0 ..0 0 0• 0 0 0 6,300 0 0 -28,500 0 0 0 0 0 0 0 0 0 0 0 73,684 ...0 0 95,316 0 0 0 0 0 60,800 0 0 0 0 61,200 FY91 FUTURE YRS TOTAL 80,500 0 - '84,000 126,000 0 ''"326,000 1- - 0 0 21,000 - 0 0 -' 10,500 .. 0 0 ` 26.000 0 0 .21, 000. .... 0 0' 1,130,000 - 0 0 796,000 0 0+...,..36,125 0 O - 24,000 - 0 O 24,000 .. .:0 0 •t 60,100... .... ,. •�.. 0 0 255,000.':.•' 0 _ 0. ... 27,000 :. ...., _ 0 0 60,600 0 0 10,500 ... .,: 0 0 _20,500 ,., .. 0 0. 69,610. ,. ..,. ,.. 0 0.: 156,230 O 0 ,61,160'..:. O • : 0 80,660' 0 0 106,160 0 0 1,267,100 0 0 86,800 0 0 61,200 �4ANltaw!•wtw\w\wwalwa�\i�vtl�.y�.NJ:.': S: �a'.wwwaw++�+�nif�w r'rYw'. r.v. _virv. _Y. rvy.YNAwAwra�r 9 I � Ir� CITY OF IOWA CITY CAPITAL IMPROVEMENTS PROGRAM PY87 - PY91 GENERAL OBLIGATION BONDS I PRO7ECP __. PRIOR YRS FY87 PYSS PY99 PY90 FY91 FUTURE YRS TOTAL PEDESTRIAN BRIDGE OVER HWY 6 0 0 0 0 10,000 130,000 O 160,000 KROKUXIMNY.6 BYPASS SIDEWALK 0 0 36,000 0 0 0 0.; .. 36,000 -j N DUBUQUE ST.SIDEWALK 0 0 3,000 30,500 0 0 „ 0 , ... I7 500 ......1111 CITY PLEA LIGHTS REPLACEMENT 0 70,115 O 0 0 0 0. ANIMAL CONTROL FACILITY 0 0 99,500 0 0 0 0 951,500, MENTON ST CULVERT REPLACEMENT 0 10,000 99,000 0 0 0 0 - •$09,000 „ N CORRIDOR SEWERAGE EXTENSION 0 0 5,000. 115,0000 0 0, -.123,000 J..... PARK RD STORK SEWER 0 0 1,000 107,000 0 0 0 ppg 111,000 _ ... .... TOTAL .- _ ---------- 296,300 ------------------------------------------------------------ - 1,507,115 -1,446,735 142,700 1,191,700 831,500 0 5,717,970 9 _ I � CITY OF IOWA CITY CAPITAL IMPROVEMENTS PROGRAM' FY87 - PY91 OPERATIONS . PROJECT'.. PRIOR YRS FY87PY89 PYBB FY90 FY91 FUTURE YRS TOTAL WEST BIDE WALNWAYS 0 7,000 0 0 0 CURB CUT INSTALLATION 1,811 0 0 .2,000 f GOVERNOR BT RETAINING WALL - 2,017 2,110 2,775 2,331 2,131 0 -17,000 i CITY PARE TENNIS COURTS 0 0 �5, 500 56,500 0 '- 0 0 67,000 RYER80N'8 WOODS DLVEI4PN01T 0 0 16,520 00 0 0 46,520 �W 0 0 11,700 p 0 0 0 D BUB FLEETS%PANSION/REPLICEM - - 1/,300 MET . CEMETERY BLDG EXPANSION p 0 0 710,000 105,000 110,000 87,500 " 87,500 630,000 ORCHARD/DOUGL888 STORM SEWER 0 11,000 0 0 0 - 0 "11,000 0 0 20,500 � 10,000 0 0 0 - 30,500 - I TOTAL- .._.. 1,81/ ��.r.....�...... .......... .......... 1,017 �______ 379, . 177,775 117,771 .9,976 _______500 ._.__9__2_ 87,500 [ 1 . .............s... �........ .......... 809,720 -i CERTIFICATES OF PARTICIPATION I PROJECT PRIOR YRS PY87 PYBB .. PY89 FY90 FY91 FUTURE YRS TYYTAL - CIVIC CENTER EXPANSION I p ...................O 0 0 228,750 3,021,250 0 0 3,250,000 i TOTAL 0 ____________________ _____ 1,250 ---------- ,. 0 228.750 .............�W��� .w....... ... 7,021,750. _--__-__-0 0 _3.2.__ "- 0 7,250,000 � ..........t\\Mwww\w\\w\w. ...... I CITY OF IOWA CITY SPECIAL ASSESSMENT/ CAPITAL IMPROVEMENTS PROGRAM FY87 - PY91 PROJECT PRIOR YRS FY87., Pyas ryag Pygo VY91 FUTURE YRS STATE AID PROJECT PRIOR YRS PY87 I'ves FY89 FY90 FY91 FUTURE YRS TOTAL 23,625 235,300 My I/8UMS19 T 51GNAIS 0 10,500 a 0 0 0 0 10,500 64,000 0 .0 0 0 0 64,000 TAFT SPEEDWAY PAVING 0 0 18,900 342,000 DODGE ST - DBQ RD TO GOVERNOR 0 0 0 294,000 0 a 0 294,000 34,BO0 0 0 MMUND RE CROSSINGS -IST AVE 0 52,800 0 0 0 0 0 52,800 ---------- HARTLAND RR CROSSINGS-DBO/CLIN 0 $5,800 0 0 0 0 0 05,800 1p 0 .......... 767,825 .... . .... .... . . . . . ........ .......... NAPOLEON PARK RESTROOKS 0 25o000 0 0 0 0 25,000 J. TOTAL ---------- 0 ---------- 174,100 ---------- ---------- --------- 0 294,000 7 - ---------- 0 0 ---------- ---------- 0 468,100 CONTRIBUTIONS PROJECT, PRIOR IRS VY67 Yves FY89 FY90 'FY91 FUTURE YRS TOTAL P. KARTIAND Re CROBSINGS-IST AVE 0 10,200 0 0 0 0 0 :,-'10;200 HARTLAND RA CROSSINGS-DSQ/CLIM 0 19.600 0 0 0 0 0 % --o'19,600 M DUBUQUE ST SIDIVALl 0 0 0 19,500 0 a "0 "X.19,500 R MARKET PARK PLAY AREA 4,595 0 0 0 0 0 41595 ---------- ---------- ---------- ---------- ---------- ---------- 0 ---------- 0 -------- -- 53,895 TOTAL 4,595 29,800 0 19,500 0 I .................. ... ...... I SPECIAL ASSESSMENT/ PROJECT PRIOR YRS FY87., Pyas ryag Pygo VY91 FUTURE YRS TOTAL ROORAT ROAD PAVING 0 0 23,625 235,300 ..0 0 0 308,925 IJALLEY PAVING FV87 0 64,000 0 .0 0 0 0 64,000 TAFT SPEEDWAY PAVING 0 0 18,900 342,000 0 0 0 360,900 KEOKUK/HWY 6 BYPASS SIDEWALK 00 34,BO0 0 0 0 0 34,000 ---------- ---------- ---------- ---------- ---------- ---------- 1. TOTAL ----- ----- ---------- 0 64,000 76,525 627,300 0 0 0 .......... 767,825 .... . .... .... . . . . . ........ .......... I A _• I ' t i CITY OF IOWA CITY _ CAPITAL IMPROVEMENTS PROGRAM I PY87 - FY91 FEDERAL AID e+ PROJECT PRIOR YRS FY07 FY88 PYB9 PY90 FY91 FUTURE YES TOTAL t•t J I BERT'ON ST .BRIDGE WIDENING 0 1,160,000 0 0 0 0 0 1,180,000 EROOKSIDR DR 6 2ND AVE BRIDGES 0 0 193,300 0 0 0 ,0. 195,200 -1 BUB PRET RYPANBION/R6pIACiIPP 0 0 ,720,000 215,000 ]]0,000 262,500 262,500 1,890,000 -- TOTAL 0 1,180,000915,200 215,000 -- 220,000 262,500 262,500" 2265,200- - -" .. .. COMM. DEVELOPMENT BLOCK. GIANT -' PR07ELT " ' PRIOR YRS PY87 PHI PY89 -FY90 :FY91 FUTURE YRS TOTAL t CURB CUT INSTALLATION - B,686 v 9,557 10,005 10,650 '..10,916 a. 11,286 0 `_60,100. PARCEL 165-24C(BIJICKUWK PARK) ; 10,000 - 125,600 0 p _ p p 0 :;'165,600 PRORATY ACO•A!CLEARANCE 0 O ,16,020 0 0 0 0 .46,030,.. u NAPOLEON PARK:AEBTROONB 0 76,860 ,; 0 p r 0 O.�.76160 N MARKET -P . PARKLBY.ARBA.._ ..... 0 ._.. 6,000 .. 0 _. 0 0 . .S _. - AR -0 0 6,000 TEERIL4 MILL PARK -IMPROVEMENTS - 0 1,200 p p p p 0 1,200 J DIYTON ST CULVERT REPLACEMENT 0 72,500 0 0 0 0 0 72,500 CNARD/DOUGLASS STORK BEWER " OR 0 0 0 161,500 0 0 0 161,500 31 616 752 517 56,035 _..$01____ t�TOTAL .......... , 151,950 10,916 11,2.6 0 $01,290 ddd"' t (^ r ' . I/v\ .... i.. �..• ...ter ... ......... ....• _.. .. ��... 12. I a i Vr..:�i.......!.... .........:....!...«:..w.v:::::.♦........--- ......t............... ............ .......:re..•............. I 2- I I� D- 8- i I i 7- I J 6- ,JNDS ISSUED _IN MILLIONS - 5- r� 4 -3- 4- 3- i J 2- D- 1- F D- CITY OF IOWA CITY GENERAL OBLIGATION BOND ISSUES 14 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 FISCAL YEARS 13 U); rods paid for with rty tax. nds paid for with rty .taxes and subject I ters approval. ; nds abated by enter- ; funds revenues, f! ectal assessment. �aJ'7 1. i 4t �Mti\lM1\iaav\l�aa\\al Na\\\v\�\\a(4a\nw�.MrN. _.... �v\\\♦v�ma���.(...«n/////.\vv\v.v.aw...t.w.•..hf/.v.awM�.v� The following abbreviations which appear on the project listings indicate the source of funding: " GO = General Obligation Bonds CP = Certificates of Participation SP = Special Assessments FA = Federal Aid T OP =Operations SA = State Aid CO = Contributions HC = Housing b Community Development Act (Community Development Block Grant) ,ei S v .. .. ..l 40 1 14 Gi P �V�..:.�i�.......,..,�....................-..�.�........... ......_.-..A...�.�..,.. .�. r . . . . . . . . . .lv+w.i..W.v:::: ff...... It . . . . . NORTH DUBUQUE STREET CURB A— WUER PROJECT REFERENCE Map A #1 DESCRIPTION OF PROJECT This is a new project that involves the installation and resurfacing on that portion of north -bound of curb and gutter along with necessary storm sewer Road. The curb would better define the roadway pavement on Dubuque Street between Kimball. Road and. Ridge and aid in keeping vehicles from driving off the pavement-. - General obligation bonds will fund this project. City Council requested Engineering to investigate the possibility Of completing this project. FUTUNE:;'iEAR BUDGET IMPACTS Normal maintenance costs will be required. IMPLEMENTATION 'SCHEDULE What will be done?,. - Beg inning. Finishing, of DateSource Date $ Funding: Be fore-FY87, F V87" FY88.1 FY90. Design FY91 Construction July 1989 March 1990 3,500 GO After FY91 - A April 1990, July 1990 80.500 GO TOTAC $84,000 I s j ,f� I MELROSE AVENUE - BYINGTON TO RAILROAD BRIDGE REFERENCE Map A 02 iDESCRIPTION OF PROJECT T This is a new project involving reconstruction along with the widening of Melrose Avenue to 37 feet ' the Hartland railroad bridge to South Grand Avenue and a right ..from turn lane for westboundtraffic at Hawkins Drive and+includes necessary storm sewer work. The street is approximately 70 -80 -years old. .Traffic in this area is heavy andtheroad and -curb is deteriorating. The street has already been overlaid and chip- --sealed several times in its lifetime. This project is first in a series of projects which will provide for the reconstruction of arterial streets. l General obligation bonds will fund this project. The project can be done within the existing rights of i way, so there won't be any land purchased. j J FUTURE YEAR BUDGET IMPACTS j ; Normal maintenance costs will be required, s 3 IIWLEIENTATION SCHEDULE Beginning Finishing Source of _ What will be done? Date Date S Funding Before FY87 FY87 FY88 FY89 FY90 Design July 189 April '90 4,000 GO FY91 Construction May '90 Sept. '90 324,000 GO After FY91 i TOTAL }3281000 i f f 17 i SUMMIT/BURLINGTON SIGNALIZATION IMPROVEMENT REFERENCE Map A 03 DESCRIPTION OF PROJECT Th is a new project has two objectives: first to replace the existing obsolete controllerwitha new device; and second to replace the side -of -street a number 'of right-angle accidents have occurred signal displays with over -lane signal displays. Currently at this intersection. ' The existing controller is 30-35 years old and the manufacturer no longer stocks parts for it. Over -lane indication give matorists.a better view of the signals. 4 General obligation bonds will fund this project. !'Y FUTURE YEAR BUDGET IMPACTSIta There will be no additional costs for maintenance and electricity. r IMPLEMENTATION SCHEDULE - -What. will be done?_. Beginning Finishing Source of Date _ Date s Funding Before FY87 Design FY87 Construction Nov. 185 Dec. 185 FY88 August 86 Sept. '86 21,000 GO FY89 FY90 FY91 _ After FY91. TOTAL.. MAW _aaaaaae J I 1 r 18 �i �N aaa ava! \ww\ tw\Haa w\ uv\t\alaautvANN.. .. .. �.vYwaa.a�.uw�..�.....'gni.ii+.u�.v.•..v..r�....��...4N.v.vY.�µ\u� REFERENCE Map A iq HIGHWAY /1/SUNSET AVENUE SIGNALIIATION DESCRIPTION OF PROJECT This is a new project to install a two-phase semi -actuated traffic control with over -lane indications at the intersection of: Highway '/1 and Sunset Avenue. Traffic conditions at this intersection meet the war- rants for* traffic signalization as defined in the Manual 'on Uniform Traffic Control Devices. ' Funding of this project will be shared 50-50 between general obligation bonds and the- Urban -State Traffic Engineering Program (USTEP). The opening of Freeway 218 and further development on the west side will' increase traffic in this area. FUTURE YEAR,BMaT IMPACTS The annual costs are estimated to be $870.00 for electricity and $360.00 for maintenance The City will be responsible for all maintenance costs of the signals. INPLEIEKATION SCHEDULE What will be done? Beginning Finishing Date Date Source'of Before FY87 Design $ FundinL FY87 Construction Oct. '85 Hov.''85 FY88 July '86 August '86 21,000 GO/SA FY89 FY90` FY91 After FY91 TOTAL 19 %4 I I f J t I �N aaa ava! \ww\ tw\Haa w\ uv\t\alaautvANN.. .. .. �.vYwaa.a�.uw�..�.....'gni.ii+.u�.v.•..v..r�....��...4N.v.vY.�µ\u� REFERENCE Map A iq HIGHWAY /1/SUNSET AVENUE SIGNALIIATION DESCRIPTION OF PROJECT This is a new project to install a two-phase semi -actuated traffic control with over -lane indications at the intersection of: Highway '/1 and Sunset Avenue. Traffic conditions at this intersection meet the war- rants for* traffic signalization as defined in the Manual 'on Uniform Traffic Control Devices. ' Funding of this project will be shared 50-50 between general obligation bonds and the- Urban -State Traffic Engineering Program (USTEP). The opening of Freeway 218 and further development on the west side will' increase traffic in this area. FUTURE YEAR,BMaT IMPACTS The annual costs are estimated to be $870.00 for electricity and $360.00 for maintenance The City will be responsible for all maintenance costs of the signals. INPLEIEKATION SCHEDULE What will be done? Beginning Finishing Date Date Source'of Before FY87 Design $ FundinL FY87 Construction Oct. '85 Hov.''85 FY88 July '86 August '86 21,000 GO/SA FY89 FY90` FY91 After FY91 TOTAL 19 %4 I BENTON STREET AND MORMON TREK BOULEVARD SIGNALIZATION REFERENCE Map A 05 DESCRIPTION OF PROJECT This project. involves the Installation of a two phase semi -actuated traffic controller with overlane traffic indications and pedestrian indications. This project mff be required in FY88- if.residential growth in the area continues. Traffic engineering studies will continue to monitor traffic conditions 11 in -the. area, ati the, intersection. These signals wil I increase safety of pedestrians even though At: will also mean additional delay for those attempting to cross Benton Street. General obligation bonds will fund this project. The Comprehensive Plan projects continued growth in the area west of this intersection in Phase 1of the development sequence. FUTURE YEAR BUDGET IMPACTS Future costs are estimated at $870 per year for electricity and $360 per year for maintenance: IMPLEMENTATION SCHEDULE What will be done?., Beginning Finishing Source of Date Date Funding Before FY87 FY87 FY88 Design and construction July 1987 FY89 Oct. 1987 24,000 GO FY90 FY91 After FY91 EI TOTAL $24,000 20 9 ------- r- KIRKWOOD AVENUE AND DODGE STREET SIGNALIZATION REFERENCE Map A f6 'DESCRIPTION OF PROJECT This project will involve the installation of.a two phase semi -actuated traffic control with overlane traffic indications and pedestrian indications at the intersection of Kirkwood Avenue and Dodge Street. This project will be needed if traffic volumes continue to increase from the north and, 'south feeding onto Kirkwood Avenue. Additional delay will be encountered by east/west traffic on Kirkwod Avenue, but r,it will;provide:a safer intersection. General obligation bonds will finance this project. FUTURE-, YEAR 'BUDGET IMPACTS-. . Estimated future costs for electricity are $870 per year and $360 per year for maintenance. IMPLEMENTATION SCHEDULE Beginning Finishing " Source'of What will be done? Date Date " $ Funding Before FY87 :.. I FY87 FY88 Design and construction FY89 FY9D FY91 After FY91 TOTAL 21 July 1987 Oct. 1987 21,000 GO $21,000 aaeaaae ' .! SCOTT BOULEVARD PAVING REFERENCE: Map A 07 DESCRIPTION OF PROJECT This project involves the paving of Scott Boulevard 31' in width from Court Street to Lower West Branch Road and then to Rochester. Avenue. Storm sewer facilities will also be installed. This project has long-range benefits in providing a low -maintenance roadway from Highway 6 Bypass to Rochester Avenue. When all .the segments are ,in tact it will provide a route significantly more attractive than the existing -facilities. This project is shown being funded by General Obligation Bonds. However, staff will apply for Revital- ize Iowa's Sound Economy (RISE) funds for this project. If the monies are approved, they would cover up to 80% of the project. This project is included in the Comprehensive Plan and is consistent with the trafficway,designrstan- dards. It, will provide a truck route and aid in moving traffic from the BDI industrial area to I-80, FUTURE YEAR BUDGET IMPACTS This ,project will reduce maintenance costs on the gravel portion of Scott Boulevard north of Court; however.", there will be increased pressure for future road improvement to I-80. IMPLEMENTATION SCHEDULE "What will be done] Before FY87 FY87 FY88 FY89,_Design and Land Acquisition FY90"'Co6struction FY91 After FY91 TOTAL 22 Beginning Finishing Source. of Date Date _ Funding July 1988 May 1989 June 1989 Dec. 1989 26,000 GO 1,104,000 GO $1,130,000 ec_veeecee i 0 r MELROSE AVENUE PAVING REFERENCE Map A /8 DESCRIPTION OF PROJECT This project; will provide the continuation of the existing configuration of Melrose Avenue from the end of the concrete pavement near. West High, School. to relocated Highway 218,.a distance of„approximately 2,500 feet. This project will provide a facility which will accommodate the increased flow of traffic generated by relocated Highway 218. General Obligation Bonds will fund this project. In the FY86-90 CIP, FAUS.funds were planned, but these funds,wil,l -not be:,available. ,.. This facility is a proposed improvement in the Comprehensive' Plan. This'proposal,would, construct Melrose Avenue (a secondary arterial) at primary arterial standards. FUTURE YEAR BUDGET IMPACTS Demands may be made to extend four lanes to Burlington Street. 10 IMPLEMENTATION SCHEDULE — Finishing t T I i Date Date = r MELROSE AVENUE PAVING REFERENCE Map A /8 DESCRIPTION OF PROJECT This project; will provide the continuation of the existing configuration of Melrose Avenue from the end of the concrete pavement near. West High, School. to relocated Highway 218,.a distance of„approximately 2,500 feet. This project will provide a facility which will accommodate the increased flow of traffic generated by relocated Highway 218. General Obligation Bonds will fund this project. In the FY86-90 CIP, FAUS.funds were planned, but these funds,wil,l -not be:,available. ,.. This facility is a proposed improvement in the Comprehensive' Plan. This'proposal,would, construct Melrose Avenue (a secondary arterial) at primary arterial standards. FUTURE YEAR BUDGET IMPACTS Demands may be made to extend four lanes to Burlington Street. 10 IMPLEMENTATION SCHEDULE 23 .4 Beginning Finishing Source of What will be done? Date Date = Funding Before FY87 FY87 Design and Land Acquisition July 1986 June 1987 84,000 GO FY88 Construction July 1987 June 1988 710,000 GO FY89 FY90 ......_ ._ . FY91 After FY91 TOTAL $794,000 E666YC�3C 23 .4 L. ..........:............ ROHRET ROAD PAVING IMPROVEMENT REFERENCE Map A /9 DESCRIPTION OF PROJECT This project will provide for the paving of Rohret Road 31' in width from Mormon Trek Boulevard to rel ocated'•Highway 218. Storm sewer facilities will -also be installed. This project is needed to accommodate the increase in traffic flow -from new subdivisions adjacent to Rohret Road. jAbout 90% of this project could be funded by Special Assessment, the rest would-be General- Obligation Bonds. This project will service an area shown for development in Phase I (1983 88) of the Comprehensive'Plan. " FUTURE YEAR -BUDGET IMPACTS t d.p Normal maintenance costs will be required. IMPLEMENTATION SCHEDULE " Beginning Finishing Source of What will be done] Date Date {:: Funding, :i.' Before FY87 ,F.Y87 FY88 Desigh' and Land Acquisition FY89 Construction FY90 FY91 After FY90 TOTAL 24 July 1987 June 1988 26,250 GO/SP July 1988 Nov. 1988 317,000 GO/SP' $343,250 V F' .o CURB RAMP INSTALLATION REFERENCE 110 (no locations designated) DESCRIPTION OF PROJECT involving design and construction of curb ramps at the intersection ofexisting sidewalks enabling physically This is a new project and streets. The project will develop a network of accessible ublic and rivate facilities. This ro- sidewalks isabled iito 1positive vingaccessmanbarriershwhichypresently restrict the mobility of physically d's hndivduas avetheeff ct of rem ect impaired individuals.within the.community. the fund operating monies will fund the design and inspection of all curb ramps, about 18% of ortn,9ttee on Commu- J_. The general project,and C08G monies will be used to fund the construction.. Council app forfthee1986 CDBG entitlement. 1 nity Needs recommended this program, and in the 1983 Comprehensive Plan Update to ma e ' This project is consistent with the mmo elation made City's special P P ' services accessible to Iowa J ; FUTURE YEAR BUDGET IMPACTS IMPLEMENTATION SCHEDULE Source of is Beginning Finishing i Funding' What will e7 Date Date n and construction'87 Before '87 300 OP/NCt June 11,600 OP/HC ` 1 FY87 Ramp design and construction Jan. Jan. 'BB 145 OP/HC J FY88 Ramp design and construction Jan. '89 design and construction June '89 12,685 OP/HC"' '90 13,250 OP/HC FY89 Ramp FY90 Ramp design and construction Jan. '90 " 91 June June '91 13,820 OP/HC FY91 Ramp design and construction Jan. q — After FY91 ;73,800 ;-1 TOTAL J I. 25 -- I -- -- .o n FY87 ALLEY PAVING REFERENCE Map A Ill (2 locations) DESCRIPTION OF PROJECT This is a new project involving the paving of alleys located in Block 9 of Lyon's Second Addition.(between T I Dodge Street and Johnson Street, south of Bowery Street) and Block 62 of Original Town (between Washington Street and College Street from Linn Street to Gilbert Street). Other areas may be added as requests are submitted.- The alley located in Block 9 of Lyon's Second Addition consists of gravel whereby potholes and dust are an ever -occurring problem. In addition, it is not clear as to ownership of the property; purchas- ing or quit claiming the right-of-way would clear this up. The alley located in Block 62 of Original Town is.concrete that has deteriorated and is in need of replacement. This project can be funded totally by special assessments. If utilities are to be put underground, it may be necessary to schedule that with this.project. The City would pay for relocating the utilities and the cost is estimated to be $130,000. Renters and property owners have requested these paving improvements. FUTURE YEAR BWOGET IIPACTS Routlne�maintenance, costs will: be reduced if this project is completed because dust from gravel will be eliminated. IMPLEMENTATION SCHEDULE Beginning finishing Source of What will be done? Date 'Date f Funding Before FY87 FY87: Land acquisition, design and construction FYBB FY89 FY90 FY91 After FY91 TOTAL 26 July 186 July 187 64,000 SP 3 i $64,000 aaeaeae �' i 3 w•..........ada....:...a....:: . :: ...:.............A...-.....:.........a.............o.vn.v.v.•..v.v.+. I j ROCNESTER/FIRST AVENUE SIGNALIZATION REFERENCE Map A 012 DESCRIPTION OF PROJECT �j ! This is anew project to install a two-phase semi -actuated traffic control with over -lane .indications. at the intersection rof Rochester Avenue and First Avenue. Traffic conditions do not warrant signalization':at this intersection. General obligation bonds will fund this project. This project has been requested by City Council. .01 FUTURE YEAR BUDGET IMPACTS - The future costs are estimated to be $870.00 for electricity and $360.00 for maintenance.,. IMPLEMENTATION SCHEDULE Beginning Finishing Source of What will be done? Date Date $ Funding . Before FY87 FY87 Design and construction October 186 June '87 24,000 .,GO 1 FY88 _J FY89 FY90 ...... FY91 • After FY91 TOTAL $24,000 r tJ j� 27 4' Vr:.:�1a..a.a...a......a....a.a....+..:....:...::...............A..................................�....•..a...•.v.v.... SUNSET STREET/BENION STREET SIGNALIZATION REFERENCE Map A /13 DESCRIPTION OF PROJECT T 'Thi s;:is anew project calling for a two-phase semi -actuated traffic control over -lane indications at the ikersecfion of Sunset Street and Benton Street. Traffic conditions at this intersection meet the warrants for traffic signalization as defined in the Manual on Uniform Traffic Control Devices. General obligation bonds will fund this project. FRURE YEAR BUDGET IMPACTS The annual future costs are estimated to be $870.00 for electricity and $360.00 .for maintenance.;. INPLEIEWATION SCHEDULE,.:. Beginning Finishing Source of What will be done? Date Date t Funding Wore 087 FY87 FY88 Design and construction July '87 August 187 24,000 GO, FY89 FY90 - FY91 1 lfter FY91 's TOTAL $24,000 J 28 \4 I it vvtavv� atai \ a\ v+vi ai a[v aval aavvw'.Wlw•1::: ..........aw.�%w�i i_ li...�a...v..Y.. ....•�.v.'!l.YhWM\�I� n j. ♦ 1v-` TAFT SPEEDWAY PAVING IMPROVEMENTS _i REFERENCE Map A /14 DESCRIPTION OF PROJECT This project involves the paving of Taft Speedway 28' in width, from Dubuque Street west to the cross- road;between Taft Speedway and Foster Road. Storm sewer facilities will also be installed. Graveled residential streets within the City limits are a maintenance problem for the City.and public. a nuisance for the. j About 90% of this project could be funded by Special Assessment and the rest of General'Obligation Bonds. it will come from I J Current residents have requested this project. There will be.development.along Taft. mean increased traffic. Speedway that will FUTURE YEAR BUDGET IMPACTS The project will reduce annual maintenance costs on this street. IMPLEMENTATION SCHEDULE J �. What will be done? Beginning Finishing, Date Date Source of t Funding -J Before FY87 !, FY87 p FY88 Design July 1987 May 1988 21,000 FY89 Construction June 1988 Nov. 1988 GO/SP FY90 380,000 GO/SP FY91 . After FY91 " TOTAL .._. ___ DODGE STREET - DUBUQUE ROAD TO GOVERNOR REFERENCE Map A /15 DESCRIPTION OF PROJECT Thin protect will involve .the. widening of Dodge Street to four lanes, 49' wide from Dubuque' Road to Th iernor Street. ,`This protect is needed since the amount of traffic has increased in that the existing two lane facility does not handle the traffic adequately. Urban iState Traffic Engineer Program (USTEP) will fund 55% of the construction for this project; the costs will be funded by General obligation Bonds. other 45% of construction and the engineering ' It is consistent with the Comprehensive Plan trafficway design standards. FUTURE YEAR BUDGET IMPACTS Normal maintenance costs will be required. IMPLEMENTATION SCHEDULE Source' "rce° Beginning Finishing SFu What will done?. Date Date s --�— Before FY87 FY81 1988 FY88. Design and Land Acquisition Aug. 1968 Sept 1988 388,500 GO/SA FY89 Construction` ' FY90 FY91 After FY91 1549,000 TOTAL =__' \4 r: 30 _i \4 t ��ta vaaaa .aava \.♦Hoa'•\vaa RAILROAD CROSSING AT FIRST AVENUE REFERENCE Map A /16 DESCRIPTION OF PROJECT This project will provide railroad crossing improvements over the Heartland Railroad tracks on First Avenue. This would provide a rubberized crossing. The existing railroad crossing is in poor condition. State Grade Crossing Surface Repair monies will fund 60% of the construction. The Iowa Railroad Company uses the line and will fund 20% of the cost of asphalt crossings. The City will fund the remaining construction costs and the engineering costs with general obligation bonds. FUTURE.YEAR BUDGET IMPACTS Maintenance costs will be reduced at crossings and less maintenance will be required to vehicles using crossings. IMPLEMENTATION SCHEDULE Beginning Finishing Source of What will be done? Date Date f Funding Before FY87 Design Jan. 1986 June 1986 500 GO FY87 Construction July 1986 June 1987 89,500 GO/SA/CO FY88 FY89 FY90 FY91 - After FY91;,,,,. TOTAL 190,000 31 1 i 31 1 3 RAILROAD CROSSING - DUBUQUE STREET AND CLINTON STREET REFERENCE Map A f17 v..........a n+..w.nw.v... v.........h.w�..\....w•r.. lr r..v......vr....v...Av..v..v.ra.....n DESCRIPTION OF PROJECT 3 RAILROAD CROSSING - DUBUQUE STREET AND CLINTON STREET REFERENCE Map A f17 DESCRIPTION OF PROJECT This project will provide rubberized railroad crossings over the Heartland Railrod .tracks on Dubuque Street and Clinton Street'. The existing railroad crossings at the aforementioned locations are in very poor condition. f State Grade Crossing Surface'Repair monies will fund 60% of the construction. The Iowa Railroad company .. uses the line and will fund 20% of the cost of asphalt crossings. The City will fund the remaining construction costs and the engineering costs with general obligation bonds.. FUTURE YEAR BUDGET IMPACTS Maintenance costs will be reduced at crossings and less maintenance will be required to vehicles using crossings. . IMPLEMENTATION SCHEDULE Beginning Finishing Source of What will be done? Date Date f Funding Before-FY87 Design. Jan. 1986 1986 June 1986 June 1987 -.-Soo GO 145,500 GO/SA FY87 Construction July p; FY88 ' FY89 FY90 FY91 j After FY91 TOTAL (146,000' I I . 32 ........ ,,.. EXTRA WIDTH PAVING - FIRST AVENUE AND SANDUSKY DRIVE iREFERENCE i Map A /18 (2 locations) DESCRIPTION OF PROJECT ^' The City.pays the cost of collector and arterial street paving in excess of 28 feet in width. Streets J included in the program are Phase IV of First Avenue from the north line of First and Rochester, Part One, south approximately 240 feet; and Sandusky Drive from Keokuk Street west. to Gilbert Street.,Traffic congestion may be a' problem if streets determined as collector or arterial are not paved to widths greater than •281. Extra -width paving Will be funded by general obligation bonds. To comply with design standards, the City pays for the overwidth pavement. FUTURE YEAR BUDGET IMPACTS Maintenance costs will not increase because of overwidth pavement. IMPLEMENTATION SCHEDULE Beginning Finishing Source of What will be done? Date Date = Funding Before FY87 FY87 FY88 Construction July 1987 June 1988 28,500 GO FY89 - FY90 J FY91 After FY91 i TOTAL $28,500 33 EXTRA WIDTH PAVING - FOSTER ROAD REFERENCE Map A /19 DESCRIPTION OF PROJECT The City pays the cost of collector and arterial street paving in excess of 28 feet in width. This T I includes Foster Road from Prairie du Chien west approximately 1800 feet. This area is planned for future development. Traffic congestion may be a problem if arterial streets are not paved to a width greater than 28 feet. Extra width paving will be funded by general obligation bonds. To comply with design standards, the City pays for the overwidth pavement. ;This project will facilitate development of the area in Phase II (1988-1993) as projected.in the Comprehensive Plan. FUTURE YEAR BUDGET IMPACTS ' Maintenance costs will not increase because of overwidth pavement. IMPLEMENTATION SCHEDULE Beginning Finishing Source of What will be done? Date Date i Funding Before FY81 FY87 Construction - western 700 ft. July 1986 June 1987 4,200 GO FY88 Construction - eastern 1100 ft. July 1987 June 1988 6,300 GO FY89 FY90 FY91 After FY91 TOTAL =10,500 34 n �H lNvvatly .aava\a a.�.t,va .• WEST SIDE WALKWAY PROJECT REFERENCE: No specific location yet DESCRIPTION OF PROJECT: This project involves the extension of a walkway from Westwinds Drive to the West High School property line primarily for student access. This walkway will provide a defined walkway for student access to and from the school and reduce conflict and damage resulting from students cutting across peoples lawns and in between buildings. The City Council has requested that the School District and the area resi- dents living along Westwinds Drive determine the most'suitable location for a walkway. Completion.of the -project is contingent upon the donation of an easement by private property owners and the construction.of,an adjoining sidewalk on the West Nigh School property by the School District: The - City will fund the sidewalk construction costs with a transfer from the General Fund. FUTURE YEAR BUDGET IMPACTS Normal.'maintenance costs, including snow removal by City Crews,. will be required. INPLENENTAT-ION'SCHEDULE' ¢1 kI 0 J' i Beginning Finishing Source of. What will be done? Date Date i Funding Before FY87 FY87 Design and Construction July 1986 August 1986 2,000 OP FY86 FY89 FY90 , FY9Y. After FY91 TOTAL 12,000 ¢i 36 ¢1 kI 0 J' i I ^tiMHvaataal.aa� 1...........va!vawn I I I J — GILBERT STREET BRIDGE DECK REPAIR J J REFERENCE Map B 120 DESCRIPTION OF PROJECT This project involves the repair of the Gilbert street bridge deck (over Ralston Creek) with a dense concrete overlay, a system used by the State of Iowa in repairing highway bridge decks.. The Gilbert Street bridge deck surface is deteriorating in that the concrete is spalling, creating many, potholes. If not funded, the bridge deck will continue to deteriorate, whereby an entirely new bridge deck will be necessary. 'General obligationbonds will fund this project. The FY86-90 CIP says that this project would qualify for federal assistance; however, those monies will not be available in FY87. FUTURE YEAR BUDGET IMPACTS Present and future maintenance costs will be greatly reduced. IMPLEMENTATION SCHEDULE %4 Beginning Finishing Source of °f What will be done? Date Date $ Funding Before FY87 Design Nov. 1985 May 1986 6,026 GO FY87 Construction June 1986 Nov. 1986 63,404 GO FY88 - FY89 FY90 FY91 After FY91 i .-TOTAL $69,430 a I I 37 I %4 <,.............................. ...... _ A w ....... ...._._.........,, .. w _ DODGE STREET BRIDGE DECK REPAIR REFERENCE Map B !21 DESCRIPTION OF PROJECT This project will involve, the.repair of the Dodge Street bridge deck (over the Heartland Railroad) and approaches with dense concrete, a system used by the State of Iowa in repairing highway bridge decks and similar:to the Park Road bridge repair. The. Dodge Street bridge deck surface is deteriorating, in that the concrete is spalling, creating many potholes. General obligation bonds will fund this project. Due to the condition of the bridge deck, the project has been moved up a year in the CIP schedule. The FY86-90 CIP says that this project would qualify for federal assistance; however, those monies will not be available in FY87. FUTURE YEAR BUDGET IMPACTS . Future maintenance costs will be greatly reduced. . IMPLEMENTATION SCHEDULE What will be ddne7 BeginningDate Before FY87 Design Nov. 1985 FY87 Construction June 1986 FY88 FY89 FY90 FY91 After FY91 TOTAL 38 Finishing Source of Date _ Funding May 1986 13,386 GO Nov. 1986 140,844 GO $154,230 eoeeeoeee BURLINGTON STREET BRIDGE AT RALSTON CREEK REFERENCE Map B 122 DESCRIPTION OF PROJECT This project will involve the repair of the Burlington Street bridge deck (over Ralston Creek) with dense concrete, a system used by. the State of Iowa in repairing highway bridge decks. The bridge deck is deteriorating in that the concrete is spaliing, creating many potholes. General obligation bonds will fund this -project. Due to the condition of the. bridge deck this. project has been moved up two years in the CIP schedule. The FY86-90 CIP says this project would qualify for .,state assistance; however, those monies will not be available in FY87. FUTURE YEAR BUDGET IMPACTS Present and future maintenance costs will be greatly reduced. IMPLEMENTATION SCHEDULE What will be done? Before FY87 -Design- FY87 Construction FY88 FY89:.,_, .. FY90 FY91 After FY91 TOTAL 39 Beginning Date Nov. 1985 June 1986 Finishing 'Source of i Date S Funding May 1986 3,588 GO Nov 1986 37,752 GO $41,340 IIIICC6EIIOC i i 1i I I BURLINGTON STREET BRIDGE AT RALSTON CREEK REFERENCE Map B 122 DESCRIPTION OF PROJECT This project will involve the repair of the Burlington Street bridge deck (over Ralston Creek) with dense concrete, a system used by. the State of Iowa in repairing highway bridge decks. The bridge deck is deteriorating in that the concrete is spaliing, creating many potholes. General obligation bonds will fund this -project. Due to the condition of the. bridge deck this. project has been moved up two years in the CIP schedule. The FY86-90 CIP says this project would qualify for .,state assistance; however, those monies will not be available in FY87. FUTURE YEAR BUDGET IMPACTS Present and future maintenance costs will be greatly reduced. IMPLEMENTATION SCHEDULE What will be done? Before FY87 -Design- FY87 Construction FY88 FY89:.,_, .. FY90 FY91 After FY91 TOTAL 39 Beginning Date Nov. 1985 June 1986 Finishing 'Source of i Date S Funding May 1986 3,588 GO Nov 1986 37,752 GO $41,340 IIIICC6EIIOC i •r.aa..........................e,.........,.,,.::::.........,....._.R_.�..,.,......,......_.,,.......:.....•....-..�,.:... WOOLF AVENUE BRIDGE DECK REPAIR REFERENCE Map 0 023 DESCRIPTION OF PROJECT This: is a new project involving the repair of the Woolf Avenue bridge deck (over Highway 61218, and Cedar Rapids and Iowa City. Railway Co.) with a dense concrete overlay, a system used by the State of Iowa in repairing highway bridge decks. The Woolf Avenue bridge deck is deteriorating in that that :concrete is spalling, creating many potholes. If not funded, the bridge deck will continue to deterio- rate, whereby an entirely new bridge.deck will be'oecessary.' General obligation bonds will fund this project.' The FY86-90'CIP says this project 'would qualify for state assistance; however, those monies will not be available in FY88. FUTURE YEAR BUDGET IMPACTS Present and future maintenance costs will be greatly reduced. IMPLEMENTATION SCHEDULE 40 Source of f Funding 6,976 GO 73,684 GO $80,660 ccveavvac %4 Beginning Finishing. What will be done? - Date Date Before FY87 FY87 Design Sept. 1986 Apr. 1987 FY88 Construction May 1987 Sept. 1987 FY89 FY90 FY91 After FY91" TOTAL 40 Source of f Funding 6,976 GO 73,684 GO $80,660 ccveavvac %4 5' ^'Kti�\vvf aa\t a\a\to\wtt .\u{\v\\l aaaatµYA'1 ... w u a.aauM ru......t vu'.'..a .'i.....v. rw I..V.Y.a\-.•�.'.w'�:' .r.. ��-. . .. - .. _ i I J MELROSE AVENUE BRIDGE DECK REPAIR REFERENCE: Map 8 124 T DESCRIPTION OF PROJECT ' This is anew project` that involves the design and repair of the bridge 'Hartland deck located on Melrose Avenue over—the Railroad tracks. The repair entails.a dense concrete overlay, a'system used by the State,of,Iowa in repairing highway the :bridge decks. The surface of this bridge is deteriorating'* in that, concrete is spalling, creating potholes'ind:rusting deck reinforcing steel. General,.obligation,bonds will fund this project. ' FUTURE. YEAR BIIOGET`IMPACTS Maintenance costs will be reduced with this improvements. IMPLEMENTATION SCHEDULE Beginning Finishing Source of What will be done? Date Date f Funding Before FY87 J FY87 Design Sept 1986 April 1987 9,024 GO _,FY88 Construction,._ May 1981 Sept 1987 95,316 GO FY89 — FY90._.. J FY91 After FY91 t i TOTAL 41 $104,340 IIIIQCQQCLC BENTON STREET BRIDGE WIDENING PROJECT REFERENCE Map B ►25 ` DESCRIPTION OF PROJECT This project will provide for the design and widening of the Benton street bridge over the Iowa River from the existing two lane structure to a facility carrying four lanes. This"project will include the _ removal andreplacement of the extensively deteriorated deck which is presently overlayed with asphalt. This project is necessary .since the amount of traffic has increased such that the existing, two lane structure cannot adequately accommodate the traffic. _ Designs would be funded by General Obligation Bonds. Construction will be'funded'with $650,000 (maximum• allowed per project) of Federal Aid Bridge Replacement Program monies, $530,000 of Federal Aid to.Urban Systems (FAUS) and the remainder funded from General Obligation Bonds. The actual construction will begin when Burlington St. Bridge reconstruction is complete. This bridge is located on Benton Street just east of Riverside Drive (Highway 218/6). Both streets are _ arterial streets and are shown as such in the Comprehensive Plan. FUTURE YEAR BUDGET IMPACTS Normal maintenancewillbe required. IMPLEMENTATION SCHEDULE Beginning Finishing' ` Source of — What will be done? Date Date t Funding i Before FY87 Design 6 Land Acquisition Feb. 1985 May 1986 272,300 GO FY87 Construction Oct. 1986 Oct. 1987 2,155,000': GO/FA FY88__. FY89 — FY90 FY91 After FY91 ` i TOTAL $2,427,300 .....case., 42 j T i J J IJ �J i t 9 �V�N va It a�!avav\•\`.w �t\vav\avvv!vv.wna..V.V. l.•:avv��mw.��...vw.i�.�..wvr.v..v�. rt ..'. r'.'I'rv.YhVr'.mNr IMPROVE BRIDGES ON BROOKSIDE DRIVE AND SECOND AVENUE REFERENCE MAP B /26 (2 locations) DESCRIPTION OF PROJECT This is a new project to provide for a study to determine needs and for the subsequent design and renova- tion/replacement of the Brookside Drive and Second Avenue bridges over Ralston Creek. Through the Biennial Bridge Rating Program, both bridges, which are similar in design, were found to possess structural defi- ciencies'and are currently posted for truck weight limits: If these bridges are not renovated, both struc- tures will continue to deteriorate which will require more restrictive load 'limits' and possibly closing them. The Federal Aid Bridge Replacement Program will fund approximately 80%, $195,200, of the construction, the rest would be funded by general obligation bonds. FUIINE YEAR BUDGET IMPACTS Normal maintenance will be continued on these bridges. IMPLEMENTATION SCHEDULE Beginning Finishing Source of What will be done? Date Date $ Funding Before FY87 FY87 Design July 186 FY88,.Construction 6 Inspection FY89 May '87 .. FY90 FY91 After FY91 -- TOTAL 43 March 187 24,000 GO Nov. 187 256,000 GO/FA 1 }280000 .4 ti .:.a.a....i....a...:wv...::::.:.:.......+.-J4............w:...-.............�.v.v.aw......+. BURLINGTON STREET FOOTBRIDGE REFERENCE Map B /27 DESCRIPTION OF PROJECT This, projectinvolves installation ofa footbridge over Ralston Creek adjacent to the south side of the 4 existing Burlington Street bridge. This project will provide a route for pedestrians along the south r side of Burlington Street when crossing Ralston Creek along the same alignment as the approach sidewalk — thus moving the sidewalk further from the street curb. ,;The project will be financed by General Obligation bonds. FUTURE YEAR BUDGET IMPACTS Normal maintenance costs will be required. IMPLEMENTATION SCHEDULE r C � : I Beginning Finishing '`'Source of What will be done? Date Date $ Funding _ `Before-FY87— - FY87 n:. FY88 FY89 FY90 Design and Construction "Aug, 1989 FY91 After FY91 TOTAL 44 June 1990 43,200 '' GO $43,200 C6...no.. iII REFERENCE Map B 028' • � j PEDESTRIAN BRIDGE OVER HIGHWAY 6 DESCRIPTION OF PROJECT ; iThis is a new project to provide for the design and construction of a pedestrian bridge over Highway 6 f, Bypass. No specific location has been decided on yet. Anticipating an increase in the amount of'pedes- -trian traffic crossing Highway 6, this project will provide an alternative to the existing at -grade cross- _.. j 'ings.. + -� General obligation bonds will fund this project. '1 FUTURE YEAR BUDGET•IMPACTS �J Additional funds will be necessary for snow removal. INPLEIENIATION SCHEDULE Beginning Finishing Source of What will be done? 'Date Date S Funding I Before FY87 FY81 FY88 i r' `FY89 1:;1Y90 j i. Design 9 July , 89 March 90 40,000 GO J FY91 Construction May 190 Nov. '90 420,000 GO - After FY91 i TOTAL €460 000 i H 45 GOVERNOR STREET RETAINING WALL REFERENCE Map 8 129 DESCRIPTION OF PROJECT This is a new project to build an L-shaped wall that would be attached to the existing wall. The Governor Street wall west of Block 11 at Oakland Cemetery is slowly deteriorating. In July, 1979, N.N.W. examined the wall and took core samples. This firm stated that within the next five to fifteen years the.weather would attack -the entire surface of the wall. The firm offered two solutions - a long run one and a, short run one. The short run solution was to patch the wall which would improve the appearance. The long run solution was to build an L-shaped wall in front of it. It is recommended that an L-shaped wail be built before the existing wall collapses. The L-shaped wall would stand five feet above the ground and extend four feet below the surface then at the bottom turn 90 degrees towards the street. It;would be constructed of reinforced concrete and use the existing wall for extra support. It was built around 1904 and the concrete is so old and poor in quality that it cannot be patched. Operations would fund this project. FUTURE YEAR BUDGET IMPACTS There will be no maintenance costs. IMPLEMENTATION SCHEDULE Beginning What will be done? Date Before FY87 FY87 FY88 Design 'June 1987 FY89 Construction June 1988 FY90 FY91 After FY91 TOTAL 46 Finishing Source of Date $ Funding June 1988 5,500 OP Oct. 1988 56,500 OP $62_000 %4 KEOKUK STREET/HIGHWAY 6 BYPASS SIDEWALK IMPROVEMENTS k� TOTAL $60,000 i REFERENCE Map B 030 ', 47 DESCRIPTION OF PROJECT f J This is a, new project providing for sidewalk on both sides of Keokuk Street from just south of Plum Street across Highway 6 Bypass to Southgate Avenue. Traffic signals for a protected walk cycle are included. This project is needed to provide a'walkway_for residences in the area'north Highway 6' Bypass to the K -Mart' shopping' center. . - i About 57% of this project can be funded by special assessment and the rest by general obligation bonds. FUTURE'YEAR BUDGET IMPACTS Maintenance and snow removal of sidewalk on Highway 6 Bypass right-of-way: IMPLEMENTATION SCHEDULE'` Beginning Finishing Source"of What will be done? Date Date = Funding ., Before FY87 FY87 - FY88 Design and construction July 1987 June 1988 60,000 GO/SP,..,. � -7 FY89 . i 1,:. ... ,.FY91 M -After ;EY91.__..:_ -... k� TOTAL $60,000 -A ', 47 M .. . .......... ....... ....... 7 NORTH DUBUQUE STREET SIDEWALK IMPROVEMENT PROJECT rI REFERENCE Map B 031 DESCRIPTION OF PROJECT This,project involves the removal and replacement of the existing .4 fo ot wide sidewalk located on the west side of Dubuque Street between Kimball Road and Mayflower Apartments. The proposed :width Js 8'. Duetothe high rate of pedestrian traffic on Dubuque Street, north of Park Road which originates mainly from the Mayflower.Apartments, the existing 4' wide sidewalk located on the west side of Dubuque Street ,...should Pe replaced with a wider facility... The University of Iowa will fund the removal of the existing 41 sidewalk and,ithe installation -of the 8 sidewalk and culverts, $19,500. General obligation bonds will be used to fud engineeridg,­inspection, and installation of rip rap and backfill, $33,500., , This project is consistent with the trafficway design standards of providing sidewalks Talong. streets. The area served by the sidewalk is shown for development during Phase I and It of the Comprehensive plan (1983-93) . FUTURE YEAR BUDGET IMPACTS Additional funds will be necessary for snow removal. IMPLEMENTATION'96EDULE Beginning Finishing Source of What wil-I be done? Date Date i Funding Before FY87 FY87 FY88 Design Jan. 1988 June 1988 3,000 GO FY89 Construction July 1988 Oct. 1988 50,000 GO/CO FY90 FY91 After FY91 PPP TOTAL $53,000 IIS 48 ., . ... . . . . ... ................. . . . . . . . 'i CITY PLAZA LIGHT FIXTURE REPLACEMENT REFERENCE Map C /32 a i : DESCRIPTION OF PROJECT This is a new project to replace the light fixtures in the City Plaza with units that.are more economical to. maintain and more energy efficient. Currently, there are 47 light fixtures in the City Plaza. Each of them has four mercury lamps. The poles have wood casings that are deteriorating and will need -extensive j maintenance the summer of 1986. The four arms that support the lamps are made of aluminum and have been T susceptible to vandalism. The proposed replacements will be a single high pressure sodium lamp in a smoky bronze blown cube'on square - steel painted poles. The high pressure sodium lamps will use less electricity and will provide more usable _ light. The steel poles will require less maintenance than the wood casings and will also withstand vandal- ' ism better. This project provides for the purchase and installation of new lights.and poles. General obligation bonds would fund this project. — FUTURE YEAR BUDGET IMPACTS, _ I In, FY85 ;$12,809 was spent to maintain and .operate theexistingsystem. Sterner.. Lighting Systems, Inc. estimates to be es ears. -the proposisystem:to--cost'about ,$5,000 annually, and they project .the system's payback period y (Sterner ;Lighting,Systems,.Inc. is the -manufacturer of the existing and proposed systems. This proposed system is. compatible with the hinged base that is imbedded in the brick.) T IMPLEMENTATION SCHEDULE Beginning Finishing Source of cl What will be done? Date Date i Funding - Before FY87 TI FY87 Replacement of lights July 1986 Nov. 1986 30,145 GO ra FY88 .. FY89 , FY90 i FY91 1. After FY91 i — i TOTAL $30,145 oeecaao 50 i 1 a PARCEL 165-2a (BLACKHAWK MINI -PARK REHABILITATION) U' REFERENCE Map C 133 DESCRIPTION OF PROJECT This project is torepairand upgrade Parcel 165-2a. This site was developed to serve as a temporary. park 'in'1974:'' It is now in disrepair and is deteriorating. The quality of this site,is no longer comparable Yn any manner to the 'City Plaza. 'In order to link this site with the Plaza; the area needs to be landscaped; in addition, water lines and sewer drains will be added. The cost also includes adding furnishings like those in the City Plaza. Funding will be available from the sales proceeds of Parcel 64-1b and 65-2b.- The proceeds from the sale i of these parcels are sitting in CDBG funds. Plans are consistent with the Comprehensive Plan directive to improve and maintain the downtown. _. FUTURE YEAR BUDGET IMPACTS Future maintenance, similar to the City Plaza, will be required. Improvements.wilI provide additional pedestrian space in the downtown. IMPLEMENTATION SCHEDULE What will be done? Before FY87 Design FY87 Construction FY88 FY89 FY90 FY91 -- After FY91.. TOTAL 51 Beginning Finishing Source,of Date Date $ Funding Nov. 1985 Apr. 1986 10,000 ' HC May 1986 Aug. 1987 135,400 HC $145,400 vvvvveevv 3 I a PARCEL 165-2a (BLACKHAWK MINI -PARK REHABILITATION) U' REFERENCE Map C 133 DESCRIPTION OF PROJECT This project is torepairand upgrade Parcel 165-2a. This site was developed to serve as a temporary. park 'in'1974:'' It is now in disrepair and is deteriorating. The quality of this site,is no longer comparable Yn any manner to the 'City Plaza. 'In order to link this site with the Plaza; the area needs to be landscaped; in addition, water lines and sewer drains will be added. The cost also includes adding furnishings like those in the City Plaza. Funding will be available from the sales proceeds of Parcel 64-1b and 65-2b.- The proceeds from the sale i of these parcels are sitting in CDBG funds. Plans are consistent with the Comprehensive Plan directive to improve and maintain the downtown. _. FUTURE YEAR BUDGET IMPACTS Future maintenance, similar to the City Plaza, will be required. Improvements.wilI provide additional pedestrian space in the downtown. IMPLEMENTATION SCHEDULE What will be done? Before FY87 Design FY87 Construction FY88 FY89 FY90 FY91 -- After FY91.. TOTAL 51 Beginning Finishing Source,of Date Date $ Funding Nov. 1985 Apr. 1986 10,000 ' HC May 1986 Aug. 1987 135,400 HC $145,400 vvvvveevv 3 i t •�h.a.t\tA Naaa va: vaaa\aa`.a<4a\ravav414a-ar.JMv.V: J: .-a': �a-.'.a a4arrwn.�.�..nJiJJ. /.w.•. .vi.vJ.... wrvY..Y.v.aWtiva n RALSTON CREEK PROPERTY ACQUISITION AND CLEARANCE REFERENCE Map C /34 ' DESCRIPTION OF PROJECT This `project involves the acquisition and clearance of a property at 11 S. 'Johnson 'Street, adjacent to Ralston Creek. This would permit the City to repair a retaining wall, restabilize the bank, and remove ,,,a.seriouily dilapidated house: This project was not high enough on the CCN's priority list to be included in their 1986 entitlement. It ;,will be; reviewed again for their .1987 entitlement. These improvements are consistent with the Ralston Creek Watershed ManagementPlan. FUTURE YEAR'BUD6ET'IMPACTS" This project will require periodic lot mowing and maintenance by Public Works. IMPLEMENTATION SCHEDULE Beginning Finishing Source of What will be done? Date Date -- f `" Funding Before'FY87 FY87 FY88,_Land Acquisitlon,,Demolition FY89. FY90 FY91 After FY91 TOTAL 52 July 1987 Sept. 1987 46,030 NC $46,030 y 7 J RENOVATION OF CITY PARK TENNIS COURTS REFERENCE Map C #35 DESCRIPTION OF PROJECT This is a new project to resurface the present 'tennis courts with asphalt. The base needs a three' inch overlay,, approximately 4.000 square yards of asphalt material. The finish requires one coat of, asphalt iemulsion and twocoats color red and dree6'sanded. *The present courts have deteriorated. and have,depres- . sions that hold water. The standing water will expedite deterioration and also create •a, hardship for tennis players playing on the uneven surface and removing water prior to play. Funding for this. project would come 'from operations. Firwk VEAR'BUDGEY' IMPACTS IMPLEMENTATION SCHEDULE Beginning Finishing 'Source of: What will be done? 'Date Date $ Funding Before FY87 FY87 FY88 ConWuction August 1987 ;August 1987 46 520 ., OP, r FY89 FY90 FY91 After--FY91 TOTAL $46,520 53 %4 U ti ^WN'N vaaattl.wwt \wtlw<tr1 tc�wtt!aaw'•wiN_ :_::: �w :www�.�ww�w.,+.G..�.v�.iir �.�.rY..w .wY. r. _.Y.wNN.Yh•�.rr+t.r• NAPOLEON PARK RESTROONS REFERENCE Map C 036 DESCRIPTION OF PROJECT This project was presented to Council in the FY84-88 CIP. It involves construction of a permanent restroom facility in Napoleon Park. It will be constructed by participants of the Iowa Youth Conservation Corps, ages 15-18. Presently, Napoleon Park has no permanent restroom. Portable restrooms instead are'trans- ported to the park. -._A permanent facility, would;enhancethe appeal of the park to the softball 'players, soccer players, gardeners and others who. use the site. Water would also be,available`to Napoleon Park by extending water lines to the facility. City Council approved the Committee on Community Needs' recommendation to fund the materials needed for this project with $26,860 CDBG monies. The Iowa Youth Conservation Corps would provide $25,000' for the labor of their participants. The Water Department and the Parks Division will install the water lines. The 1978 Comprehensive Plan endorses the development of riverfront parks. Napoleon Park is adjacent to the east bank of the Iowa River. The environmental advantage.,of a permanent restroom facility connected to a septic system is the more desirable_ method of disposal and treatment of waste materials than the portable,restrooms. FUTURE YEAR BIOM IMPACTS Periodic maintenance and repair, of the facility is anticipated. However, the need to rent and maintain portable restrooms would no longer exist. IMPLEMENTATION SCHEDULE What will be done? Before FY87 FY87 Construction FY88 FY89 FY90 FY91 After FY91 TOTAL Beginning Finishing Source of. Date Date i Funding June '86 July 186 51,860 HC/SA 54 $51,860 GGGCLLII I E I . . . . . . . . . . . DEVELOPMENT OF RYERSON'S WOODS REFERENCE Map C 037 I DESCRIPTION OF PROJECT 'This is anew project to provide, access, parking and trails for Ryerson's Woods. valuable - This forested park' is a 1.1. a natural resource for the community. It is important to allow the public access in the proper manner. -Also, we must assure that this park is protected and preserve d for future generations., Operating monies would fund this project; City crews would do the work. °FUTURi YEAR BUOUT IMPACTS' Maintenance costs will be added. IMPLEMENTATION SCHEDULE W Beginning Finishing Source of hat' wi I I be done? -Date Date Before FY87 FY87 FY88 FY89 FY90 FY91 After FY91 E I I 'i4vaaaaa!aaaa \a'PA..Naa.\a. '.... a aawa�...M..wrrrr.. NORTH MARKET PARK PLAY AREA REFERENCE Map C i38 DESCRIPTION OF PROJECT This is,a new project to install the necessary equipment to establish a wheelchair, sports course and other barrier -free. play equipment. There are no existing parks with playground equipment specifically designed for handicapped persons.,, This park is located near three homes for developmentally disabled individuals and Horace Mann School which has a program for handicapped children. This project will add more equipment for the purpose of developing a playground specifically designed for handicapped individuals. The Committee on Community Needs recommended $6,000 of this project with COBG monies and Council approved it. The rest would be funded by donations from Horace Mann Parent Teacher Organization. This project is consistent with the 1983 Comprehensive Plan recommendation to provide facilities for the City's special populations. _ The,park,.consists of approximately .1-1/2 acres with Horace Mann School Playground equipment and a softball field occupying one quadrant. .The additional. equipment and wheelchair course will -,take up one-quarter of the'remaining'park area. FUTURE YEAR BUDGET IMPACTS p The playground will require upkeep'I' m the Parks and Recreation Department. IMPLEMENTATION SCHEDULE -What will be done? Before FY87 Purchase and install equipment FY87 Purchase and install equipment FY88 FY89 FY90 FY91 After FY91 TOTAL 56 Beginning . Date June 1985 June 1986 Finishing Date Oct. 1985 Sept.1986 source of f Funding 4,595 HC/CO 6,000 HC/CO $10,595 EEECEEE %4 REFERENCE Map C /39 TERRELL MILL PARK IMPROVEMENTS � 1 DESCRIPTION OF PROJECT This is a new project to install Oouble Benches with sunshade shelters on the riverbank at Terrell Mill i Park. This will provide additional opportunity for residents on the near north side of the Iowa River to enjoy the scenic vistas of the river and to provide overflow capacity for City Park. The Committee on Community Needs recommended and Council approved the use of COBG monies forpurchasing th fixtures and the Parks Division will install them. e .,This.project is consistent with the Riverfront Commission goals outlined in the Iowa City Parks and Recrea- fion Plan, 1981-1985, including: To make the most of the scenic potential and aesthetic values of the Iowa River and to develop the recreational capacity of the river and floodplain. ,;FUTURE.VEAR BUDGET'IMPACTS No annual maintenance costs are anticipated. IMPLEMENTATION SCHEDULE Beginning Finishing Source of What will be done? Date Date f Funding Before FY87 FY87 Purchase and install equipment June 186 FY88 FY89 FY90 FY91 After FY91 TOTAL 57 August 186 1i200NC " I $1,200 � I �I i .J a I 1 DESCRIPTION OF PROJECT This is a new project to install Oouble Benches with sunshade shelters on the riverbank at Terrell Mill i Park. This will provide additional opportunity for residents on the near north side of the Iowa River to enjoy the scenic vistas of the river and to provide overflow capacity for City Park. The Committee on Community Needs recommended and Council approved the use of COBG monies forpurchasing th fixtures and the Parks Division will install them. e .,This.project is consistent with the Riverfront Commission goals outlined in the Iowa City Parks and Recrea- fion Plan, 1981-1985, including: To make the most of the scenic potential and aesthetic values of the Iowa River and to develop the recreational capacity of the river and floodplain. ,;FUTURE.VEAR BUDGET'IMPACTS No annual maintenance costs are anticipated. IMPLEMENTATION SCHEDULE Beginning Finishing Source of What will be done? Date Date f Funding Before FY87 FY87 Purchase and install equipment June 186 FY88 FY89 FY90 FY91 After FY91 TOTAL 57 August 186 1i200NC " I $1,200 n 3 TOTAL $2,520,000 a ccccccccc 58 w , BUS FLEET EXPANSION/REPLACEMENT - I REFERENCE Map C /40 DESCRIPTION OF PROJECT — This project provides for the acquisition or remanufacture of transit coaches to replace worn-out .equipment .equipment and to expand the fleet. The, City's bus fleet currently includes 29 buses; 14 of these are _ now 12 or more years old. Growing demand for transit service has meant that more buses are needed at peak periods - additional vehicles should be acquired for this purpose. — Funding for buses -is projected at 75X, Federal Transit Assistance, 25% from local monies. This project is contingent upon receiving: the federal monies. ;! Currently, City policy encourages the use of mass transit particularly for ...trips to the down- town/University area. Only through a planned vehicle replacement program can we continue 'providing quality service. - FUTURE YEAR BUDGET IMPACTS : As,our present coaches get ,older, they are. becoming more and more expensive to maintainn.. Replacingg them will reduce maintenance costs for each bus. 'However, buses added to the fleet will increase our total operating costs. IMPLEMENTATION SCNEOULE Beginning Finishing Source of What will be done? Date Date f Funding Before FY87 _ FY87 FY88 Purchase 6 buses July 1987 Aug. 1988 960,000 FA/OP — FY89._Remanufacture 6 buses July 1988 Oct. 1988 420.000 FA/OP FY90 ;,Replace 2 buses July 1989 May 1990 '440,000 FA/OP FY91 Replace 2 buses July 1990 May 1991 350,000 FA/OP After FY91 Replace 2 buses July 1991 May 1992 350,000 FA/OP TOTAL $2,520,000 a ccccccccc 58 J ti ... .......... ....... ANIMAL CONTROL FACILITY REMODELING REFERENCE Map C 041 DESCRIPTION OF PROJECT This is a new project remodel the existing Animal Control facility and to I ad I d on a garage. The remodeling' -involves creating a, new reception area, a private office, a locker room With � showers* enlarg'rgns� from e to -12. The existing inthe 'cat room, expanding the dog room and constructing -new,kennels , and increasing the number of'dog garage will be incorporated into the remodeling, so a new garage u Will'belbuilt. General I Obligation . bonds would I finance this project. The bond issue will r I equire. voter approval. This facility is.also used for lost and, stray, pets from the county; perhaps an agreement fora joint facility '.,-,...,could be airin4ed" FUTURE YEAR BUDGET IMPACTS Maintenance* of. the building will be,simplied but will cost about the same. -,. IMPLEMENTATION SCHEDULE , - : t ! , T Beginning Date Finishing source of Funding What will be done? --La_te Before FY87 FY87 FY88 Design and 'construction July 1987 June 1988 99,500 GO FY89 FY90­ FY91 After FY91 TOTAL $,99,500 ..... M..= 59 I 3 �A taa'a la.a{...alta... a a a..... avuvNi.V !!: a ...... CIVIC.v..v......•.I.v v..vti.4�.Ya`.' CIVIC CENTER EXPANSION REFERENCE Map C !42 DESCRIPTION OF PROJECT The iSpace• Needs Committee is working on plans to expand the Civic Center. It includes .substantial el expansion of. the Fire. Department, the Police. Department and other.office space. ,The', expansion will allowlbetter_storage of the fire,trucks, training space for the police officers and firefighters, and !' offices for City departments that are currently renting facilities. The project also intends to remodel the current Civic Center. The remodeling and expansion will make the City offices totally accessible to 'the handicapped. Certificates of participation will be used to fund the project. The costs provide minimal'pbrchases for office furnishings. FUTURE YEAR BUDGET IMPACTS A substantial increase in office space will raise the maintenance and operating costs of the Civic Center. Expenses for the rental of offices will be zero. IMPLEMENTATION SCHEDULE Beginning Finishing , Source of What will be done? Date Date f Funding Before FY87 FY87 FY88 Design Oct. 1987 FY89 Construction May 1988 FY90 FY91 After FY92 NOTAL 60 Apr. 1988 228,750, CP July 1989 3,021,250, CP $3,250,000 0 CEMETERY BUILDING ADDITION REFERENCE Map C 043 DESCRIPTION OF PROJECT This is an add it ion. to. the, existing shop and work area, 576 square feet (16'X36') , that will provide more work and storage. space. Cemetery equipment must be kept inside during the, winter and in inclement .:.weather. -.:;When the equipment is,,inside, there is little room to do maintenance on the equipment'., 61 I This project provides for contracting, block laying and roofing; all the rest of the work will be done by, crews. - The materialSrwill be purchased from the General Fund. ,City FqTYREjEAR BUDGET. IMPACTS An increase in heating and lighting costs can be expected. IMPLEMENTATION SCHEDULE Beginning .,Tinishing :Source,of What will be done? Date Date $ Funding Before FY87 FY88 Construction A inspection July 1987 Nov. 1987 11,000 OP FY90 FY91 if ter FY991 TOTAL f 11,000 1 61 I i L. .........,•., H::::,:_...... . x _.,,..... ...._... BENTON STREET CULVERT REPLACEMENT REFERENCE Map C 144 f . DESCRIPTION OF PROJECT This project 'involves the removal and replacement of the concrete box culvert under Benton Street at the'drainageway located just west of Orchard Street along with' the purchase of the property located at 228 WestBenton,' which is located adjacent to -and in the drainage channel' The culvert under Benton Street is collapsing and a northerly extension of the culvert constructed of concrete block is adjacent to the concrete block basement wall of the property located at 228 West Benton Street r' Water enters the basement during wet weather conditions. If not funded, the culvert will continue to 'deteriorate''and may collapse causing major traffic problems. The design and construction will be funded by General Obligation bonds. COBG monies will'purchase'the house. It was not high enough on CCN's priority list to be included in their 1986 entitlement; it will be reviewed again for their 1987 entitlement:' FUTURE YEAR BUDGET IMPACTS !This project will reduce future maintenance costs. IMPLEMENTATION SCHEDULE ;What will be'done? Before FY87 FYB7 Design 8 Land Acquisition FYB8 Construction FY89, FY90 FY91 After FY91 TOTAL Beginning Finishing Source of Date Date "i"'' ` ' Funding Jan 1987 May 1987 83,500 . HC/GO June 1987 Dec.19B7 99,000 GO ' 62 $182,500 �'N V vaav\�ra\l. uMtr1 r:i rval,.tarni.�.v.v::: "a �. v uwaaavMw.�.6..».a:.::�.avaa. .aw .v.....v:.Nµvnv.rvr•.•.�+' NORTH CORRIDOR SEWER REFERENCE Map C 145 DESCRIPTION OF PROJECT T This project' involves the extension of a 24" trunk sewer from the intersection of Dubuque Street and Taft Speedway northeast approximately 1,800 lineal feet. Portions of the existing trunk sewer between " Prairie du Chien Road and Dubuque Street are undersized to handle future flows. This project will, allow for future development of land between Prairie du Chien Road and Dubuque Street north of the future i Foster Road extension. General Obligation Bonds will finance this project; they will be abated by sewer revenue. This trunk line is shown in the Sanitary Sewer System Facility Plan as a future improvement and the Comprehensive Plan shows the to be area served by this sewer in Phase II development. Construction in Phase I, 1988, will support Phase II development. FUTURE YEAR BUDGET IMPACTS ^! No extra maintenance costs will be necessary other than periodic cleaning of pipes. IMPLEMENTATION SCHEDULE S ''Beginning Finishing Source of iWhat will be done? Date Date f Funding Before FY87 FY87 FY88 -Design- Aug. 1987 Jan. 1988 8,000 GO FY89 Construction July 1988 Dec. 1988 115,000 GO FY90 FY91 After FY91 TOTAL $123,000 I J 63 M Y . l a s..•.... w. a.... PARK ROAD STORM SEWER REFERENCE Map C /46 .i i i � ; ..r DESCRIPTION OF PROJECT { a This is a new project. The Engineering Division is studying the problem of water and mud washing onto property below Park,Road afterflowing down the ravine through Skaugstad's property. The storm sewer inlet .:.:located on. Park Road concentrates storm water flow into a ravine that terminates on residential property f located at the end of the ravine. .The soil carried, with the water then deposits in the back yards of residences.., — General obligation bonds would fund this project. FUTURE YEAR BUDGET IMPACTS The additional storm sewer would require normal maintenance. IMPLEMENTATION SCHEDULE Be9Daten9. Finishing ce of What will -,be done? ., f SFundi nding Before FY87 FY87 FY88 Design July 1987 June 1988 4,000 GO FY89 Construction July 1988 Oct 1988 107.000 GO FY90 FY91 After 'FY91 TOTAL £111,000 i Nz 64 .i i i � ; ..r I f { a J ! L. _1 1 , ivaa.aaal.ova\..�.....\....v. .........ate«++Awe..X....�rv.�.....v.....v....M.X.v.ay.�.w.•.�'�' ORCHARD STREET AND DOUGLASS STREET STORM SEWER REFERENCE Map C /47 �J DESCRIPTION OF PROJECT 65 This project involves the replacement of an open concrete channel drainageway with a reinforced concrete box culvert under Douglass Street at Orchard Street..and extending near the north property line of the �I property addressed 212 Douglass Street. This project will provide adequate drainage for the property north of Douglass Street, stop the channel from freezing, and prevent flooding of property in the, area. I General Obligation bonds will finance the design and -purchase of easements; CDBG monies will finance J construction, $141,500. FUTURE YEAR BUDGET IMPACTS Thisro ect will decrease the City's P j Y' maintenance co costs. IMPLEMENTATION SCHEDULE Beginning Finishing Source of,. What will be done? Date ., Date i Before FY87 FY87 FY88 Design Inspection May 1988 20,500 GO/HC i Cand onstruction 89 FY89 88 June 1988 Dec.1988 151,500 GO/HC FY90 FY91 After FY9l TOTAL $172,000 � aaaavaaaa I 65 C1P PENDING LIST PROJECT WASTEWATER TREATMENT FACILITY This project includes construction of the new wastewater treatment facility, completion of the SE interceptor sewer, the outfall relief system, and certain system rehabilitation. This improvement is needed to construct a wastewater treat- ment facility which will meet Federal and State regulations governing discharge of wastewater. This project is specifi- cally recommended in the Comprehensive Plan. There will be "increased maintenance costs in operating the'proposed larger wastewater treatment facility and a minimal cost in main- taining the trunk sewers. Wastewater discharge from the Iowa City wastewater treatment facility will conform to Federal and State regulations regarding discharge of effluent. EXISTING WASTEWATER TREATMENT PLANT UPGRADE The existing plant is working with some very worn mechanical equipm6nt';in a deteriorating structure. Decisions'that are made'concerning_the _Waste Water Treatment Facility will determine the extent to which the existing plant needs to be upgraded. POOL COMPLEX The Iowa City community is short on swimming pool space. The school system and the City are considering a joint facility. The Parks and Recreation Commission recommends that the City not contribute more than $2.5 million for a joint facility'. A voter referendum is scheduled for the summer of 1986 for this project RIDGE ROAD AND DUBUQUE STREET INTERSECTION This project is needed to improve the right turn movement from Ridge Road onto Dubuque Street. Currently, traffic proceeding south on Ridge Road, then turning north onto Dubuque Street must use both lanes of Dubuque Street. City engineers will develop some alternatives to alleviating the problem. 66 ESTIMATED PROJECTED COST • I The costs for this project — are very unpredictable at this time. i i i i i f $ 530,000 — - j Costs to be determined. _ i PROJECT AIRPORT MASTER PLAN II Additional land acquisition and aerial easements improvements to runways and taxiways. To be done after AIRPORT MASTER PLAN I if FAA funding will be approved. RIVER CORRIDOR BUFFER AND TRAIL SYSTEM The project establishes a continuous pedestrian and bicycle trail along the Iowa River including 100 foot vegetative buffer where possible. The proposed trail system provides an energy- conservingmeans of connecting existing parks, historic sites, and areas of residential,.cemmercial, cultural and recreation interests. The system relates directly to the Comprehensive Plan's goal - to protect and enhance the environmental quality of the City and its environs, and to wisely use and conserve energy. The buffer and trail system will require maintenance and periodic repair - mowing and brush trimming along the trail will be necessary. Protection and enhancement to surface -water quality provided by a vegetative buffer will alleviate extensive runoff and erosion from urban land uses. IOWA AVENUE RESTORATION ESTIMATED PROJECTED COST $2,790,238 351,585, This project provides for the rehabilitation of Iowa Avenue from Costs to be determined by Gilbert Street to Clinton Street. It includes construction of a study. landscaped median in these three blocks which would result in the elimination of the parking in the middle of the street. The demand for parking spaces in this area necessitates that alterna- tive parking be provided before the parking in the middle of the street can be eliminated. SOFTBALL AND SOCCER FIELDS Upon purchase of either the site for a new Wastewater Treatment $ 153,700 Plant or land near the Johnson County Care Facility, this provides for development of that site for quality playing fields. Included in the costs are soccer goals, fencing, lighting, benches, bleachers, Jparking facilities, grading and design. 67 0 E f v�.......:....!...+.ew..v::::o-:......,...........R-...............................,..�...vn....wn..+. PROJECT NEW BRIDGE CONNECTING GOVERNOR STREET AND KEOKUK STREET This project will involve the connection of Governor Street, which ends at the Heartland Railroad tracks, with Keokuk Street primarily at Kirkwood Avenue. This project includes the con- struction of a new bridge over the railroad tracks as well as complete right-of-way purchase for two blocks. This project will enable the existing one-way couplet on Governor and Dodge streets to be extended from Bowery Street to Kirkwood Avenue. By providing another railroad crossing, this project also will lessen ithe connunt of trtraffic traversing the Summit Street bridge which 68 ESTIMATED PROJECTED COST $1,663,000