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276231 WNITE - CITY CLERK ar 'f PINK - FINANCE % CANARY - DEPARTMENT G I T Y O F S A I N T PA LT L COUIICII �� � �� BLUE - MAYOR File N O. c Council Resolution Presented By Referred To Committee: Date Out of Committee By Date IJHEREAS, the Council of the City of St. Paul is responsible for providing policy guidance in the annual preparation of the Capital Improvement Budget; and t+IHEREAS, interested citizens, meeting as a subcommittee of the 1980 Capital Improvement Budget Process Ad Hoc Evaluation Committee, anci the Capital Improvement Program Subconunittee of the Planning Commission have reviewed and refined the policies adopted by City Council on January 10, 1980, as "St. Paul Capital Allocation Policy: 1981-1985"; and I�JMEREAS, the Planning Commission has reviewed, approved and recomnended revisions to the policies for guiding capital allocation, as set forth in "St. Paul Capital A1location Policy: 1982-19�6"; P�OI�J, THEREFORE, 6E IT RESOLUED, that the City Council of the City of St. Paul hereby adopts the attached report, "St. Paul Capital Allocation Policy: 1982-1986", for use in the Unified Capital Improven�ent Program and Budget Process during 1931 and directs its distribution to the Neig��borhood Contact List, the Long-Range Capital Improvement Budget Committee and its task forces, the St. Paul Planning Commission and appropriate city staff persons. COUIVCILMEN Yeas Nays Requestgd by Department of: Hunt Levine In Favor Maddox � McMahon B Showalter A gai n st y �� �Iso� JAN 2 0 1981 Form Approved by City Attorney Adop y Counci Date — ertified V• d by oun ' Secret►ary BY y �� Ap v by :Nayor: Da 2 3 1981 Approved by Mayor for Submission to Council � By BY �-►�� �!A N 31 i9 81 � � � �� / C _ � � � ; . �A�J I.� �J�AT�O� � �I�� �AI�I�'�i� A�L 1��2�19�� CITY OF SAINT PAUL DEPAR7MENT OF PLANNING AND ECONOMIC DEVELOPMENT DIVISION OF PLANNfNG _„ _._. _ _ . � TABLE OF CONTENTS l.0 INTRODUCTION 1 1.1 CAPITAL IMPROVEMENTS AND THE CITY BUDGET 1 1.2 POLICY OVERVIEW 2 2.0 UNDERLYING RATIONALE � FOR SAINT PAUL'S CAPITAL ALLOCf�TION POLICIES 2.1 GOALS AND PRINCIPLES 4 2.2 TYI'ES OF CAPITAL PROJECTS 6 2.3 IMPLEMENTATION OF GOALS AND PRINCIPLES 7 3.0 THE POLICIES 14 3.1 STRATEGY POLICIES 1� 3.2 IMPLEMENTATION AND DEVELOPMENT POLICIES 16 3.3 PROJECT POLICIES 20 3.4 BUDGET POLICIES 24 4.0 POLICY IMPLEMENTAT"ION 28 CREDITS 29 ' FIGURcS TITLE PAGE �IGURE l: TYPES OF CAPITAL PRUJECTS 6 FIGURE 2: RESIDENTIAL IMPROVEMENT STRATEGY CATEGORIES AND OBJECTIVES I1 FIGURE 3: PRIORITY AREAS FOR NEIGHBORHOOD BETTERMENT 12 FIGURE 4: POLICY MONITORING AND IMPLEMENTATION RESPONSIBILITY 28 l.0 INTRODUCTION "Saint Paul Capital Allocation Policy: 1982-I986" is the City's fifth set of capital allocation policies. Each year, the policies are reviewed and revisions which reflect the City's current goals, objectives and limitations are made. The policies are then forwarded to the City Council for its review and adoption. The policies in this report will be used during the 1981 Unified Capital Improvement Program and Budget Process (UCIPBP) to develop a capital improvement budget for 1982 and a schedule of tentative commitments for 1983 through 1986. Individuals and groups that will use the policies to prepare or to evaluate proposals include neighborhood organizations, district councils, . city operating departments, the Capital Improvement Budget (CIB) Committee and its Task Forces, the Planning Commission, the Nlayor and City Council. 1.1 CAPITAL IIV�PROVEMENTS Saint Paul's annual budget is divided into two documents: an AND THE CITY SUDGET operating budget and a capital improvement budget. Although the two budgets are developed throuoh separate processes, they are interrelated. The operating budget eovers costs associated with governing the city and providing services. These services range from police and fire protection to libraries and park programs. Approximately 80�h of the City's revenue support th°se services by paying for staff, maintenance of equipment and buildings, necessary supplies, utilities, and other ongoing expenses. These annual operating expenses generally fall into one of three categories: - costs associated with continuing existing City services; - costs associated with providing new or expanded City services; and - costs associated �vith operating or maintaining a new physical asset. The capital improvement budget funds physical improvements. A capital improvement is usually a one-time expense required to upgrade or add to the physical assets (land and buildings) of the City. Capital improvement expenditures can also be divided into three general categories: - expenditures for rehabilitating or replacing obsolete City facilities; - expenditures for building additiona! City facilities; and - expenditures for providing incentives to the private sector to develap or redevelop assets which are not owned by the City. , ! __ .,, . _ ._ _. �. ': : Although the two budgets are developed separately, it is important to recognize the interrelationships between the two. �Vhen the City constructs a new facility, the operating budget must be able to cover, the cost of maintaining it. If the operating budget does not provide for routine maintenance of the City's physical assets, deterioration will occur and major capital expenditures in the form of rehabilitation or replacement will be required, affecting the capital improvement budget. , 1.2 POLICY OVERVIEW Legitimate capital improvement needs invariably exceed the amount of money available to meet them. If the capital improvement budget is to meet the most serious needs in a manner which provides the most benefit for the City as a whole, a method for determining the relative priority of proposed projects and focusing capital expenditures is required. The Capital Allocation Policies provicle this focus and direction by coordinating goals, plans and priority statements into a set of policies specifically designed to guide the capital improvement budgeting process. A general framework for the policies is presented in Chapter 2.0. This framework includes goals, overriding principles and othe�- supporting information for the policies themselves. The policies are foun�l in Chapter 3.0, divided into four sections: "` � strategy policies, implementation and development policies, project policies, and budget policies. Each policy section pro- vides a different level of direetion for the capital improvement budgeting process. The strategy policies set general direction for the City's capital improvement all�cations based on the goals and princi�les. The implementation and development policies identify characteristics which are important in evaluating capital improvement proposals. The rating sheet developed by the Capital Improvement Budget Committee for use by its Task Force is directly related to the implementation and development policies. The project policies focus more specifically on types of projects that will be encouraged or disco�raged. In some cases, conditions for funding particular projects or types of projects are indicated. In others, commitment to certain types of projects is identified. The last policy section, the budget policies, addresses the various sources of funds available to Saint Paul for capital improvements. These policies identify conditions which must be met in order to use the source of funds. -2- A final chapter addresses responsibility for monitoring the policies. While the City Council has final responsibility for adopting the capital improvement budget, the Planning Commission, the CIB Committee, and the Budget Section of the Mayor's Office share responsibility for monitoring implementation of th° policies during the budget review process. -3- _. �_ . . _ , _.. _ . __ _ _ 2.0 UNDERLYING RATIONALE FOR SAINT PAUL'S CAPITaL ALLOCATION POLICIES Saint Paul's Capital Allocation Policies are based on goals and principles established by the City. These goals and principles are reflecfed in varying degrees throughout the policy document. 2.1 GOALS AND PRINCIPI,ES For the past several years, two goals have formed the basis for many of Saint Paul's activities, including decisions on capital improvernent expenditures. Adopted by City Council and identified by �1�layor Latimer as major objectives of his administration, they are: 1. TO STRENGTHEN THE CITY'S NEIGHBORHOODS IN ORDER TO MAKE THE�ti�I BETTER PLACES TO LIVE; 2. TO STRENGTHEN THE CITY'S ECONO�IIC BASE IN ORDER TO PROVIDE JOBS AND SERVICES NEEDED BY KESIDENTS OF THE CITY. During 1979, a third major goal emerged for the City. This goal also serves as a basis f.or the City's capital improvement expenditure decisions: 3. TO CONSIDER ENERGY USE IN ALL THE CITY'S ACTIVITIES AND TO INCREASE ENERGY EFFICIENCY WHENEVER POSSIBLE. In 1980, a fourth major gual arose ;rom the City's comprehensive planning process. Both the introductory chapter and Imple- mentation Strategy of the St. Paul Comprehensive Plan identify maintenance of the City's infrastructure as a major objective for the 1980s. This objective will serve as an additional basis for decisions on capital improvement expenditures. 4. TO ENSURE THE STRUCTURAL II�iTEGRITY OF THE CIT'Y'S PHYSICAL FACILITIES IN ORDER TO MAINTAIN BASIC LEVELS OF SERVICE AND PREVENT POTENTIAL HEALTH AND SAFETY HAZARDS. -�- However, capital funds are limited and needs are great. As a result, the goals are supplernented by three general principles which reflect the City's responsibilities and opportunities. These principles-are: - Critical needs which are necessary tn protect basic life, health or public safety take precedence over all other capital improvements. - The City's primary responsibility is the provision of basic services. A steady commitment of capital improvement funds is required to maintain the efficiency and effectiveness of these basic service systems. - When choices exist, the ability of a capital improvement to stimulate private investment and effect measurable neighborhood or economic improvement should be taken into consideration. /�t the same time, some funds should be made available to prevent deterioration anci blight in sound areas of the City and to meet the need for improvements which benefit the City as a whole. -5- .. _ . __ __ _._.. __ _. _.. ._., _..._. .. ._ _ _ _ . _ __ _ _. . ,... _ .._.__��..._,_. _ ` ,_. 2.2 TYPES OF CAPITAL Throughout the policies, capital improvement projects are PRO��CTS divided into three categories: service system, support system, and subsidy. These categories and their elements are presented in Figure 1. FIGURE 1 TYPES OF CAPITAL PROJECTS SERVICE SYSTENI Transportation: roads, bridges, curbs, sidewalks, lights, signals, signs, skyway bridges, parking facilities 1Uaste Removal: sanitary sewers, storm sewers, ponding areas, solid waste facilities, recycling facilities Water Supply: supply distribution system Public Safety: police and fire stations Leisure/Culture/ Environment/ Education: parks, play�rounds, recreation centers, libraries, cultural facilities, parkways and bikeways, trees, special use .facilities Social Care: health centers, !�ulti-service centers SUPPORT SYSTE�� Administrative offices Training and educational facilities Storage facilities Repair and maintenance facilities Communication facilities SUBSIDIES Loans Grants/��Iatching F�nds Acquisition/Clearance The first two categories cover most of the City's capital facilities. T'he SERVICE SYS'fEM is the largest of the categories and capitat improvements to the elements of the various subsystems are a substantial responsibility of the city. -6- . . _ � __ ___ ___-..___ The SUPPORT SYSTE��►, though smaller, is equally important. These capital facilities support the service system and provide the base of operation for the personnel and equipment necessary to City services. The SUBSIDY section lists the types of assistance the City gives the private sector as incentives for development or � redevelopment of physical assets which are not owned or operated by the City. Housing and comfnercial rehabilitation : loans and grants, acquisition of substandard structures, and matching funds to develop parks or playgrounds which are not part of the City's park system are all examples of subsidies. 2.3 I[�1PLE�VIENTATION OF In order to translate the goals and principles into policies, GOALS AND PRINCIPLES concepts must be defined and priorities clarified. The following sections present terms, definitions and rationales which are important to an understanding of the policies. BALANCE AMONG GOALS ANB PRINCIPLES The City of Saint Paul is committed to economic development, neighborhood betterment and efficient energy use. At the same time, its first responsibility is maintaining basic levels of service. Fulfiilment of this responsibility requires a steady commitment to maintain the City's infrastructure through rehabilitation, replacement, and, in some cases, additions to City service and support system facilities. In order to choose among equally worthwhile projects, impac# on the City's goals comes into consideration. Thus, severai ends can be addressed with one action. In order to help assure balance among goals and principles, policy guidelines establish the relative proportion of funds that should address each of four areas: citywide service system improvements, service system or subsidy projects in support of economic development, service system or subsidy projects in support of neighborhood betterment, and support system improvements. In addition, the annual proportion of funds allocated to any one area of the City is monitored over time to avoid excessive geographic concentration of improvements and to assure that the needs of all areas of the City are being addressed. These guidelines are supplemented by priorities for basic systems, economic c[evelopment, neighborhood betterment, energy efficiency and housing. In combination, the policies form the basis for Saint Paul's capital allocation strategy. -7- PRIORITIES FOR BASIC SYSTEMS The City of St. Paul's primary responsibility is the provision of basic services. While there are many amenities that the City could offer, St. Paul requires sound and reliable service and support systems in order to sustain its economic growth and the quality of its neighborhoods. Currently, many capital facilities have deteriorated as a result of deferred maintenance. Moreover, much of the City's existing infrastructure (i.e., streets, sewer and water lines, bridges, and some public buildings) is approaching or has exceeded its useful economic life. Given these conditians, maintaining a basic level of service will necessitate major expenditures for repair, rehabilitation or replacement of existing capital facilities. In the face of rising costs and declining resources, the Capital Allocation Policies emphasize maintenance of basic services over service expansion. The policies give priority consideration to needed rehabilitation and replacement of physically deteriorated or obsolete facilities. They also identify the desirability of addressing capital repair and replacement on a systematic basis by granting special consideration to capital improvements that are identified in the implementing department's long-range capital program. In some situations, additions to �xisting facilities or the con- struction of new facilities may be justified. However, the desirability of new facilities must be weighed against operating and maintenance costs and the requisite diversion of resources from capital repair and replacement. ?herefore, the Capital Allocation Policies give secondary consideration to additions to existing facilities and construction of new facilities which will bring an area up to a level of service adopted in a city plan specifically for that service or support system. PRIORITIES FOR ECOIVOMIC DEVELOPMENT The primary purpose of economic development activities is twofold: .to increase the number of jobs for Saint Paul residents and to increase the tax base so that City services can be maintained without substantial increases in taxes. Specific ways to do this include broadening the City's industrial base; strengthening the downtown; strengthening neighborhood commercial areas; and promoting local economic development opportunities. A number of tools are available to the City of Saint Paul to encourage economic development activities. They include public improvements to support development; subsidies in the form of land acquisition or preparation, tax abatement or special types of financing; and the use of municipal police powers, legislative authority, persuasive powers, and technical assistance to neutralize stumbling blocks to development. -8- •'Many of these tools are used by the City, the Port t�uthority and the Housing and Redevelopment Authority. Often, capital expenditures are not required. However, when they are, priorities are established as a basis for selecting projects. : � In order to assure that projects ariented specifically toward promoting economic developrr�ent address the City's.goals, special consideration is given to pro}ects which increase the rn�mber of jobs available to City residents. In addition, projects are evaluated against leveraging and return on investment guidelines to help assure that tne level of private investment . ' and the increase in taxes which resuit#rom City involvement _ jusfify the expenditure. The Capital Allocation Policies also establish priorities for capital expenditures among competing downtown, industrial, and neighborhood commercial development needs. For the past several years, emphasis has been placed on neighborhood commercial areas, particularly pro}ects which complement neighborhood revitalization. _ The reason for this emphasis is twofold. First, industrial develop- ment has traditionally been the responsibility af the Saint Paul Port A�thority. Port Authority activities are monitored and coordinated with City activities by the City Council (which approves Port Authority bond issues and has two seats on the Board) and the �Zayor (through the Department of Planning and Economic Development): Downtown development and recievelopment is a key part of Sair.t Paui's eco�omic health. However, downtown develop- ment is occurring at a rapid pace, and, as developer activity increases, fewer incentives are required to maintain the momentum. In addition, the City is encouraging less reliance on general �blibation bonds and enco�raging the use of other types of funding to leverage private investment, permiiting more attention to other areas of the City. Service system improvements are required in the downtown as in other areas of the City. Projects which will increase the number of jobs or which meet leveraging and return on investment guidelines and conform with the City's Economic Development Strategy may be funded, depending on the availability of resources. However, as the downtown attracts developer activity, fewer incentives in the form of special consideration should be required. Secondly, among the many neighborhood commercial revitali- zation projects possible, some priorities must be established. Generally, assistance should go to those areas where there will be the greatest impact. Therefore, in addition to considering the merits of each proposal, the relationship to concentrated neighborhood revitalization is taken into consideration. This approach helps coordinate improvements by focusing on specific areas rather than scattering small scale improvements throughout the City. -9- , _ _ _ .. . _ __ _ _ _ _ _ _ _ ___ . _ _ _ . ._ _ _ ._ __.... __ 1 S, PRIORITIES FOR NEIGHC30RHOOD BETTERi�tENT Many qualities contribute to strong, stable neighborhoods, including physical characteristics. If its physical aspects are � to enhance a neighborhood, an adequate and steady level of resources is required ta maintain them. Providing the resources necessary to maintain private property is the responsibility of individual property owners. The City is responsible for main- taining the service system elements it owns and operates. Ho�vever, choices must be made among capital improvement projects located throughout the City. The basic principle used by the City to guide these choices is a balanced approach. First, the majority of capital expenditures for neighborhood betterment should be channeled to those areas where there is the greatest opportunity for stimulating private reinvestment and effecting measurable neighborhood improvement. Secondly; a steady commitment of municipal resources should be made available to other areas of the City to prevent deterioration and to maintain their stability. The greatest opportunity for effecting measurable impruvement is likely to be found in areas where the housing is basically sound but in need of some repair. Although some private resources may be available, they usually are not sufficient to stabilize the area and preserve the housing stock. Two measures are used to identify these areas: housing condition and income. Income is based on the median family income of the census tract as a percentage of the median family income of the mefropolitan area. Those census tracts where the median family income is less than 80% of the metropolita� area are identified as low and moderate income and, potentially, will require assistance. Housing condition is based on the Residential Improvement Strategy adopted by the City in 1977. The Residentiai Improvement Strategy categorizes the City's residential areas on the basis of housing condition and establishes objectives for each area. -10- FIGURE 2 RESIDENTIAL IMPROVE�V[ENT STRATEGY CATEGORIES AND OBJECTIVES % of Structures Nee�ing i�iajor 9b of Structures Repair or Needing Minor - Beyond Repair Repairs Objectives Conservation I 4 or less : 4 or less Surveillance Conservation II 4 or less 5 to 19 Intensive Maintenance . ' Improvement I -'„5 to Y9 20 to 81` Rehabilitation Improvement II 20 to 39 80 or less Rehabilitation - and Neighbochood Improvement Improvement III 40 or more 80 or less Ma}or Neighborhood Improvement Based on this information, two broad types of areas are identi- fied. The priority areas for neighborhood betterment are those `' areas which are low or moderate income and are classified as Improvement I or II. In addition, all Improvement III areas are included in the priority classification. The map on Page - 12 gives a general indication of these areas of the City. The Capital Allocation Policies establish guidelines to preserve a balanced approach for neighbortiood bet�errr�ent. The policies also place emphasis on "neighborhood revitalizatian", or a coordi- nated approach for neighborhood improvement in a concentrated area. The reason for concentrating investments is to take advantage of limited resources. Within the priority areas, there are pockets where concentrated improvements would not only stabilize that area but also provide impetus for improvements in the surrounding blocks. In Saint Paul, these areas are called "Identified Treatment Areas" or ITf�'s. They are selected according to guidelines adopted by City Council and, once selected, receive special consideration for capital expenditure allocations within the priority areas. In addition, Neighborhood Housing Service (NHS) aceas are recognized by the City as neighborhaod revitalization. -11- FIGURE 3 PRIORITY AREAS FOR NEIGHBORHOOD IMPROVEh4ENTS� -- —�-,-�—� --; —� -- ,--�---T----� � T � i � i 304 t 306 ( ! � � �` :� 30Z01 307.02 � � k:.;:.. y , . 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'? .f7• I {Y:�::::: � i �•: : :.....��:�. , �i:?�.'`,.�',''y9.;7�..2.1.i � �--�::-\ ��'':'::':.i:'v:` ?:y:� :i'yCr . , .: :ii}i:.. ! ;. . . �:,, • : •.„.::''' � _ . .. � `^�-�. �,.„...::::..:....::.� � � 324 i _ I''.•:•v..::.�.:.. •:.;:;:::::::..� i •:::,:.. i_.... ...._ --- --- ; -- ;�b_ �322� 323 � ..::>. �;:H. �r a:,�_�:..� �t�:�y 331 z --- -- T �i__.__ ,: i I � � <:::•.. 332 \ ��' _ � :�i � t:"--��;�:;;��-:�>'�i<<::325i2�3 �'a7"+i';����:?i�j 329 :::�', .r ,� _i . . i ��:. i .i k<% i�:3�2�;:�: ���.. •:;� 4 33C:�i�.. ..� �•� ::� i �> , :::r %� �°. 346 347 __"_l_______.1 __� _ ti::NJ::a�N.YN.�v�tii{^•� Y��y';�: �;�<::��:. 345 }:>!:J:::.•./1..::::.:i�i::��JLO � . .. �� ���ti•:4i::?:;:. . . . . . '( � �� , . . I♦ ....-:}: ti�:{::�.�i:'��' . i . �� '� � $�3u 336 � 3�7 I; �_-,. �:. �; � 333 �"'1 334 .;L.;�.;�':•:3. � \' 344 � \ 3as — — � __. � � �� • �� ./ \� ��'�- .. ----T_i——------ r 3:3�:;;:�,: .j,'�3' 342 �.'�---� I � t-r ._..._� r���..u:j'r,.}��i:t'^"^`^"''' :�•??\i:. ..� . I �` '+�K�� � ..;;��'.;'+� .�+ �ry J�{.�r . . 350 Ca_;:_.�,,,,.,r�i: t.v �r`r ' /� �,\ e� 349 �— ; 352 I 353 t . 356 �: 3�� ti 3�a��,� � � ��_ ' �� r � � J ' �•; ,) 35i � 357—�� �,� i/ ��j i 36t � .. � .......: , �--� —L-- ---- __' ---—�- _. ::::::::q.;�;,y 36 � r— , 7-— : ,.,> W� ; \\ � , j I �;;;:;�':;i�:::j�; �' ? ! i. � i '; I � � k ��9 ' / � .3�i ,-4" �i' � i ' i � ( /:(� � , f I 362 363 ! 36a ;� 365 :� ' `I 368; ���� %-- �2:��''<i. (' � i i 'i vi 366 '� I ,`� • . � � 3#�3:;�':t;' � i,c .. 374 , � � . � I ` f 361 , '"' ' 'r: ;, . , , , .:: � ..,...,., � �-=- ---- --1_..— --�' i ,.. :: � — �__ _ _ __._ . _ _ __,_ �' One other type of area deserves mention. These are areas which would require extensive public expenditure for widespread acquisition and clearance before they would be attractive fnr private reinvestment. Because these areas would place a large burden on City resources, they are not given a strong emphasis. . Rather, a balance between sound areas of the City and areas which require a more moderate level of assistance is encouraged. PRIORITIES FOR ENERGY The strategy section of the Capital Altocation Policies recog- nizes St. Paul's commitment to energy efficiency. It emphasizes encouraging the efficienf use of energy in existing facitities rather than undertaking new activities. Although any new structure should be as energy efficient as possible, assuring maximum energy efficiency �uithin existing structures will be a major challenge for St. Paul. ' : : � Projects which encourage efficient energy use in existing buildings, ' whether the project is proposed specifically for that purpose or for other purposes, are encouraged. In addition, development or redevelopment which encourages high density use ofpublic transportation lines or encourages alternatives to the automobile (particularly when there are no passengers) will be encouraged. New construction which is consistent with City plans, policies and priorities may also be given a special consideration if the construction exceeds energy requirements in the applicable codes and uses renewable energy resources. PRIORITIES FOR HOUSING The strategy section of the Capital Allocation Policies atso acknowledges housing as an important area which requires special consideration. Although not a goai in and of itself, the availability and type of housing has an effect on the neigh- borhood stability, economic development and energy consumption. The Capital Allocation Policies recognize this relationship and include special consideration for projects which will encourage the development of certain types of housing. These needs (rental housing, housing for low and moderate income families, and alternatives to single family housing) are based on three considerations: a limited supply of land, spiraling costs, and energy considerations. -13- 3.0 THE POLICIES 3.1 STRATEGY POLICIES The Strategy Policies set general direction for the City's capital improvement expenditures within the framework of . the goals and principles. "fhese policies are monitored by the Planning Commission. The CIB Committee also monitors Policies S1, S2 and S3 which relate to the proposed budget rather than to individual projects. .. - S l: SALANCED GOALS _ In order to assure a balanced approach to annual capital allocation, total budget allocations and tentative schedule commitments for new projects should reflect the following proportions: Categor� 9b Of Total New Allocations Neighborh�ad Improvement 25-35:"0 Economic Development 20-309b Citywide Service System Improvement 35-45% Support System Development 5_10°.6 Special grants, costs borne by other units of government or the private sector, and assessments for the particular project will be excluded from this calculation. Special grants �vill be monitored over time and taken into consideration in deter- . mining the appropriate proportions during annual policy review. S2: GEOGRAPHICAL DISTRIBUTION The annual budgets should be monitored over time to assure that the needs of all areas of the City are being addressed. The percentage distribution of capital improvement monies to each citizen participation district for the previous five budget years, beginning with 1979 as the base year, will be identified in an annual report. The report will be taken into consi�eration in determining the appropriate geographic distribution of funds. S3: BALANCED NEIGHBORHOOD BETTERMENT In order to assure a balanced approach toward neighborhood betterment, new allocations of capital for subsidies and service system improvements should follow this distribution: % of Total Recommended % of Area Residential Service/Subsidy Blocks Capital Law/Moderate Income Areas which are Improvement I 30RFi 60-75% or II; All Improvement III Areas. All Conservation I and II Areas; Improvement I 70°6 25�40% and II Areas which are not Low/Moderate Income. -14- _ , _ _ �, .. ._ _ _ _ . S4: BASIC SYSTEMS It is desirable for the City to address needed rehabilitation or replacement of its capital facilities on a systematic basis. Therefore, rehabilitation, replacement or development of a transportation, sewer or parks facility will be.,;given special consideration if it is listed in the tentative five-year Program for Capital Improvements (PCI) for the implementing department, as shown in Chapter Five of the PCI. Rehabilitation or replacement of capital facilities not yet addressed in the PCI will be given . ` special consideration if the need for the impro,yement appears - in the implementing department's long-range capital program for the current budget year. . : S5: ECONOi�1IC DEVELOP�tENT . In order to tak� advantage of opportunities to stimulate private investmerit and effect measurable neighborhood ir�provement, special consideration should be given to projects that will (a} _ 'complement the revitalization of neighborhood commercial areas and major retail ce.nters, or (b) create ne�v jobs within "' the City of St PauL S6:_ NEIGHBORHOOD BETTERMENT In order to take advantage of opportunities to stimulate private investment and effect measurable neighbochood improvement, special consideration should be given to projects which support neighborhood betterment in areas which have been recognized for conceRtrated neighborhood revitalization. These areas include Identified Treatment Areas and Neighborhood Housing Service Areas. S7: HOUSING ALTERVATIVES Given the shortage of housing and limited land for new development, special consideration will be given to projects which will encourage � the availability of renta� housing, housing for law ar�d moderate income families, and alternatives to traditional single family housing. S8: ENERGY EFFICIENCY Given the need for energy efficiency, special consideration will be given to projects which will encourage efficient energy use in existing buildings, high density use on pubiic transportation lines, or alternatives to single passenger automobile use. New construction which is. consistent with City plans, policies and priorities �vill be given special consideration if State building code energy requirements are exceeded and renewable energy sources are used. -15- _ _ ,, __ _ �_._ __ _____ , _ __ ____ __ _____ . ,. _ . . ,.. ... _ . _ __:.__� _ _ , ., 3.2 IMPLEMENTATION AND The Implementation and Development Policies identify criteria DEVELOPMENT POLICIES which are important considerations in selecting capital improve- ments. Most of these policies are stated in terms of "priorities'� or "considerations" reflecting their use as evaluation criteria. Tt�ese policies are monitored by the CIB Committee through � its Task Force Project Rating Sheet. IDI: SOURCES OF INPUT The priorities recommended by the following groups will be taken into consideration: a. The recognized neighborhood organization(s) in the affected area b. The City operating department that will operate and maintain the proposed project _ c. The Planning Commission ID2: CONFORMANCE W ITH CtTY PLANS Proposals selected for funding must conform with a!1 adopted City plans as determined by the Planning Commission. ID3: CAPITAL ALLOCATION STRATEGY POLICIES The Planning Cornrnission will evaluate each proposal for degree of conformance with the Strategy Section of the City's adopted Capital Allocation Policies. � ID4: USE The extent to which a pro ject will be used will be taken into consideration. Tnis means that: a. The larger tne population served, the greater the consideration that should be given to the project. b. The longer the life expectancy of the pro}ect, the greater the consideration that should be given to the project. c. Projects which can be used year-round will be given greater consideration than those which can only be used seasonally. IDS: JOINT USE Facilities which can be financed and operated by the City and another agency will be given special consideration if: a, they can be constructed and operated more efficiently and effectively at less cost than separate facilities. b. they are consistent with City plans, policies and priorities. -16- ,: _ _ _ �. ID6: DUPLICATION OF SERVICES Projects which duplicate existing public or private services which are available to the same population within a given geo- graphic area should not be funded. ID7: CONTINUATION PR03ECTS The funding needs of capital improvement projects which received � a prior budget appropriation for construction plans or a con- struction phase normally have priority over new projects and annual programs. Feasibility studies are not prior commitments. Acquisition�and preliminary design do not constitute prior com- _ mitments unless funcfing for constr�uction plans has been appraved and included in the CIB Committee's schedule of tentative future commitments. Annual pro�rams are not considered continuation projects. IDB: SERVICfi AND SUPPORT SYSTEM IMPROVE1ViE(�ITS h9aintaining basic City services shall be a high priority. This means that in evaluating the merits of each proposal: a. Rehabilitation, or replacement if rehab'ilitation is not '` feasible, of absolete City facilities which are required to maintain the basic level of service for the service or support system is first priority. b. Additions to existing facilities and construction of new facilities which will bring an area up to a level of service adopted in a city pian specifically for that service or support system is second priority if policy does not prohibit such funding. c. Additions to existing City facilities and new City facilities which are not specified in a City plan are last priority. d. Allocations for improvements to facilities which will not be owned or operated by the City will be treated - as subsidy allocations. ID9: OTHER IMPROVEMENTS Subsidy allocations should be directly retated to the goals and objectives of the City. This means that: a. Subsidy allocations which are directly related to concen- trated neignborhood or commercia! revitalization areas will be given first consideration. b. Subsidy allocations which wiil primarily benefit low or moderate income people in other areas of the City, or will directly result in development or redevelopment, will be given second consideration. c. Other subsidy allocations will be given last consideration. �17- __ _ _ ,. . . ,. . ._ ID 10: ACQUISITION Acquisition is not encouraged. However, projects which involve acquisition may be given the same priarity as projects which do not involve acquisition if: a. The acquisition is related to public development or reuse and: 1) right-of-way or easements are necessary; 2) the parcel(s) have been previously identified for conversion to park use if they become available; 3) the parcei(s} have tax exempt status and a use which is consistent with City plans, poficies, and priorities has been ciearly identified; or 4) special grant funding has been committed. b. The acquisition is related to private development or reuse and: . 1) the proposed reuse is consistent with City plans, policies, and priorities, and 2) there is a reasonable expectation that development will oc�ur. ID 11: PROGRAMMING AND PHASING Projects should be adeguately programmed and phased. This means that: a. Projects which are justified by City plans, policies, and priorities and are coordinated with other improvements, . at a cost saving to the City, will be encouraged. b. Projects must be timed with other improvements planned for the area within the next five years (for example, completing sewer work before paving an area). c. The City will budget only the amount which can reasonably be expected to be expended in the budget year. Funds required to complete the project should be identified in the schedule and will constitute a tentative commitment subject to City Counci! adoption of a budget appropriation for the project. ID12: PUBLIC ENVIRONtVIENT AND HISTORIC PRESERVATION Projects which will negatively impact on the environment or historic preservation will be discouraged. The natural environment includes air and water quality and noise levels. ID13: TOTAL ENERGY CONSUMPTION The impact of every City project on nonrenewable energy supplies will be considered. In evaluating the merits of each proposal: a. Projects which will significantly reduce total energy consumption will be given a high priority. b. Projects which will significantly increase total energy consumption will be given a low priority. -18- In14: OPERATOR'S ENERGY CONSUMPTION It is desirable to allocate city capital to projects which will not result in a net increase in the project operator's level of energy consumption. In evaluating the merits of each . proposal: a. Projects which witl result in a significant decrease in - the project operator's level of energy consurription will be given a high priority. b.. Projects which wifl result in a significant increase in . _ - the project operator's level of ener�y con�umption wiil � �` . be given a low priority. ID1�: IMPACT ON OPERATING BUDGET - It is desirable to allocate City capital to projects which wilt not re�ult-in a net increase in operating and maintenance expenses, _ _ exclusive of that portion of opecation and rnaintenance expenses assignable to energy consumption. At a rr►inimum, this means: , � that in evaluating the merits of each proposal: ° � _ a. f�rojeCts which will result in a significant decrease in operating and maintenance expenses will be given a high priority. _ b. Projects which will result in a significant increase in City operating and maintenance costs will be given low priority. ID16: IMPACT ON CITY REVENUES It is desirable to allocate Gity capital to projects which will not reduce revenue to the City.' At a minimum, this means that in evaluating the merits of each proposaL• a. Projects which increase revenue to the City will be given _ a high priority. b. Projects which reduce revenue to the City will be given a low priority. ID17: PRIVAT'E INVESTMENT Capital expenditure proposals which leverage committed private investment will be given special consideration. In addition, projects designed specifically as incentives to private development or redevelopment should meet the following guidelines: a. LEVERAGE GUIDELINES: Minimum leveraging is normaily 1:6 each dollar should leverage at least 6 private dollars). This ratio may be as low as 1:3 if the project is directly associated with concentrated neighborhood revitalization efforts, if the project will result in additional permanent jobs within St. Paul, or if the project is directly related to conservation of nonrenewable energy resources or development of energy alternatives. b. RETURN ON INVESTMENT: The City's annual return in the form of property taxes should be, at a minimum, 12�6 unless the project is directly associated with the projects listed in a) above. In no instance may tax yield be less than the cost of additional services required. -19- _ __ _ _._. , _ __ . . ___ _, . _ ___ _ . _ __ _,_. � '" . e. ID18: GRANTS Special consideration should be given to capital requests which will be used as a match for a grant from another unit of govern- ment or the private sector if the proposed project is consistent with adopted City plans, policies, and is a priority of the City. ID19: STREAMLINING CITY OPERATIONS Providing basic city services as efficiently as possible is a high priority. Proposals that increase productivity in the provision of City services will be given sgecial consideration. ' The proposer must demonstrate that the project or program witl: a. Significantiy increase the quality andjor level of an existing service without increasing annual operatior� and main- tenance eosts'; or b. ililaintain the q.uality.and/or level of existing service while significantly lowerino annual operation and maintenance costs. 3.3 PROJECI' POLICIES The Pro ject Policies focus more specifically on types of pro jects that will be encouraged or discouraged for the next budget (1982) and/or schedule of tentative commitments (1983-1986). In some cases, funding limits or criteria for funding are established. The CIii Committee monitors these policies with the assistance of the Budget Section or the Planning Commission in certain cases. P1: TREES Diseased shade tree removal will no longer receive a special capital allocation. {Reforestation shoulri continue through 1985 subject to annual review.) P2: CITY FUNDING OF SKYWAYS a. Funds will not be budgeted for skyways unless the skyway is of pubiic benefit and part of a firm package for development or redevelpment of the benefitting buildings. b. Normally, the City will fund no more than 50� of skyway bridge construction. The develapers and/or property owners of benefitting buildings shall fund the entire cost of skyway construction within their buildings. c. The City will not provide funds for the operation or main- tenance of skyways unless the City is the owner/operator of a benefitted building. d. Proposed skyways must be in conformance with the guide- lines adopted by the Saint Paul City Council on January 8, 1980, as Council File Number 274243, to be considered for funding. P3: IDENTIFIED TREaTMENT AREAS No new Identified Treatment Areas (ITA's) will be initiated during 1982 unless an existing ITA is completed and funds are available to initiate a new ITA. Should this occur, selection of a new ITA will be made in accordance with the guidelines adopted by the Saint Paul City Council on 7uly 27, 1978, as Council File Number 271322. -20- , . _ _ _ � _ _ _ _ _ .._ __ _ � P4: SITE PREPARATION FUND The City will consider budgeting a site preparation revolving fund under the foltowing conditions: a. The fund will only be used to prepare tax-forfeited sites owned by the City or formerly acquired by the Housing and Redevelopment �uthority for clearance. ` b. Site preparation will be unclertaken oniy if there is a firm proposal from a developer for purchasing the parcel once it is prepared. c. Administrative and operating costs are not paid from the fund. _ _ d. Initial funding does not exceed $1OO,QOQ. � : e. An arnount sufficient to repay the site preparation cos#s ' _ incurred shouid be returned to the site preparation fund - from.proceeds of sale. P5: NLW Fr1CILITIES Given the City's fiscal constraints, certain types of projects will be a lo�v priority for 1982 funding. These projects include: a. Facilities to house programs or services w�ich are not operated by the City; and b. Facilities to house or provide new services operated or maintained by the City which are not identified as a priority neeci in a City plan. c. Swimming pools will not be considered for 1982 funding. P6: ANNUAL PROGRA�IS An annua! program.is a series of projects of consistent nature that are implemented sequentially over a period of time until an identified objective is attained (e.g., residential street paving program). An annual program must have clear eligibility criteria which are available for review and are consistent with applicable city plans and capital allocation policies if it is to be considered for funding. All funding requests for continuation of annual programs must be accompanied by: (1) a list of the specific activities . carried out under the prior year's budget allocation for subsequent review by the CIB task forces; and (2) a sunset provision which identifies the expected date of program termination or conditions that would result in program termination. -21- _. . ,_ _ .. . _ _ _ _ __ _ _ ----..___ . { Annual programs currently authorized in the 1981 Capital Improvement Budget which are subject to annual review, evaluation and funding consideration are: - Program Guidelines Adopted by City Council Log No• Program Title (if applicable)'� C-6602 Citywide Tree Planting C-b60S Accessibility of City - ; Buildings and Services R-4402- ITP� Programs : CF ��271322, 4405 June 27, 1978 _ - `R-55Q1 Commercial Rehabilitation - Loan Program R-6601 Multi-Unit Structure CF ��275073, _ Rehabilitation Program June 30, I978 R-6602 Owner Occupied Rehabilitation CF ��272145, Loan Program—Residential November 30, I978 R-6603 Owner Occupied Rehabilitation CF ��272145, Grant Program—Residential November 30, 1978 R-6604 Selective Clearance CF ��273807, September 2, 1979 R-6608 Neighborhood Commercial Area CF ��2740Q2, Improvements Program November 8, 1979 S-6601 Ma}or Sewer Repairs 5-6604 Sidewalk Reconst:-uction S-6605 Har�dicapped Pedestrian Ramps S-6606 Traffic Channelizations S-6607 Signal Installations and Revisions S-6610 Residential Street Paving CF ��275577, (Paving) and Lighting Program September 2, 1980 5-6611 (Lighting) S-6612 Lighting Improvements CF ��275895 November 6, 1980 S-6613 PIA Long Side Subsidy for Streets and Sidwalks *Any program guidelines adopted by City Council that are not in�luded in this list are still applicable to program activities. P7: TAX ABf�1EMENT Tax abatement is discouraged as a development incentive. -22- . _._ � _ _ _ _ __ .___. P8: ECONOMIC BASE DEVELOPtVIENT OPPORTUNITY FUND For the purpose of securing significant increases in the City's property tax and permanent employment bases, a reserve fund is au�horized for:the 1982 Capita! �rnproverr�ent'Bu�igef and ' �_ ` �: Schedule to be calleci the "Economic �ase Developrnent Oppar- , . _ tunity Fund:' This fund will finance public incentives for new private development or redevelopment opportunifies which present themselves outside the annual Unified Capitai Improve- :ment Program and Budget Process{UCIPBP) cycle. Normally, - < -- all capital improvements afe budgeted and,pragrammed during � ' the annual UCIPBP. However, it would be ap�ropriate to have a limited amount of money available ta permit short notice financing of public improvements as incentives to private � , __ _ developmenf. _ Proposals for use of the Economic 8ase Development Opportunity Fund wi11 be required to meet the following conditions: _. a. Each proposal must meefi tP�e leveraging and re�um on investment requirements stated in Capitai Allocation Policy ID 17. b. Each proposal must be reviewed by.the Planning Com- mission for consistency with City plans and policies. c. Each proposal must be reviewed by the CIB Committee and the advice of the Committee must be noted in the resolution brought to City Council authorizing use of monies from the fund. `d. Notification should be given�to all Disfrict Counciis at : the time proposals are referred to the Planning Cornmis- `- sion and CIB Committee for review. e. Each proposal must require immediate appropriation- of funds in order to assure timely implementation. (The CIB Committee will recommend that proposals ; with an implementation schedule that permits reuiew through fhe annual UCIPBP be reviewed as part of the next annual UCIPBP cycle.) : P9: ENERGY RETROFIT The City continues to support a limited-term program to retrofit City-owned buildings with energy-saving features through 1985. P10: CAPITAL MAINTENANCE The City continues to support a capital maintenance program for City-owned buildings for the 1982 budget and 1983-I986 schedule of tentative commitments. Capital maintenance is the replacement, renovation, remodeling and/or retrofitting af the structural parts and/or service system components of a building made necessary by obsolescence, wear beyond economic repair or catastrophic damage resulting from the acts of man or nature. A building's structural parts are its footings, founda- tion walls, beams, joists, columns, load bearing walls, exterior facade, floors, ceilings, roof and roofings. A building's service system components are its ptumbing, electrical distribution, communications, heating, ventilation and air conditioning systems. -23- The annual Capital Nlaintenance Program funding request is to be submitted to the Budget Seetion for ineiusion in the annual Unified Capital Improvement Program and Budget Process (UCIPBP) by the Division of Property Management in accordance - generally with provisi�ns of 5.02(2�4b} and 57.06 of the Saint ` Paul, Minnesota Administrative�Code: In submitting annual: funding requests under the Capital �rlaintenance Program, each departrnent will include: (1) a statement of capital maintenance projects authorized for funding in the prior year'sbudget; and (2) a list of the specific improvements proposed to"be carried out under the current year's funding request. (To support the annual UCIPBP funefing request, the Division of Property l�9anagement is to solicit capital maintenance project proposals from ttfie directors of the operating departments of city government. However, the allocation to each department of any Capital Maintenance Program funds a�propriated by City Council in an adopted Capital Improvement Budget will be a joint decision by the directors of the operating departments meeting as a group under the coordination and with the advice of the Division of Property Managemenf. The �!tayor will implement this decision as he sees fit through the introduction in City Council of an appropriate resolution enumerating the projects to be included in the program.) 3.4 BUDGET AND FINANCE The Budget and Finance Poticies identify the various sources POLICIES of funds available for capitai improvements and conditions which must be met in order to use t�em. The Budget Section of the 1�layor's Office is responsible for developing these policies and the CIB Committee and the Budget Section of the Mayor's Office monitor these policies. B1: FUND SOURCES Determination of which fund source is most appropriate for financing each of the City's budget priorities will be made as follows: � a. Projects subject to assessment will be so assessed under the City's Special Assessment Policy, adopted on December 23, 1976 as Council File No. 268302, and amended June 17, 1980, Council File No. 275110. Those projects benefitting private property which result in extraordinary operating and maintenance expenses will be accompanied by a financing plan that (1) identifies these expenses, and (2) outlines how they will be paid. b. All street improvement projects on 1�Iunicipal State Aid, County Aid, or Minnesota Trunk Highway routes will be considered for funds primarily with monies allocated to the city specifically for those routes. c. Capital improvements which are eligible for metropolitan, State or Federal programs or private grants should be so financed, and, if appropriate, CDBG and CIB monies � may be used to provide local matching funds. _?4_ d. Capital improvements which°could be financed with specific bonding authority may be so recommended if City Council has indicated its intention to utilize such authority. High priority capital improvements which can be funded with revenue bonds or from revenues from an existing __ � : . -- ' Tax Increment District should;be so`recornmen�ed. e. Capital improvements and prograins eligible for CDSG _ . funding will be so funded; and f. Capit`al improvements which cannot be financed wit�� - • monies governed by paragraphs{a) :fhrough (e) will be ` considered for Capital Improvement Bond f�nding. , B2; COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG} PROGRAM Projects proposed for funding through the CDBG Program must meet federal regulations for both eligibility:and fundability. Essentially, this means that: a. Only projects which serve low and moderate income people or eliminate slums and blight �an be considered. b. Of the total CDBG doilars which are allocated to projects, most should serve low and moderate income people and be located in areas which meet the Department of Housing and Urban Development's definition of low or moderate income. Specific emphasis should be placed on the Identi- fied Treatment Areas: The remainder of funds may address slums and blight not directly benefitting low or moderate income people. B3: BOP�iD FINANCING a. The total amount of general obligation bonds issued by the City should not exceed an a�lnuai average of $10.5 � - million. Capital Improvement Bonds, Water Pollution Abatement Bonds, and Tax Increment General Obligation ; , Bonds which are issued in 1982 will reflect this $10.5 million floating average identified in the City's dsbt policy. b. The City will issue no more than $12,270,000 in General Obligation Bonds in 1982. This total will include $6A million of Water Pollution Abatement Bonds for continuing the St. Anthony Hill Sewer Rehabilitation Project (Thomas- Dale Sewer). It may include as well a consideration of other General Obligation Bond issues to a total of $6,270,000. These other issues may include Automobile Parking Facil- ities Act bonds (if not revenue bonds) to supplement the 1979 authorization (which has not yet been issued) for construction of the Highland Parking Ramp; Tax Increment Bonds (if not revenue bonds) in support of district heating, extension of the Seventh Place Mall, or acquisition of land for redevelopment; or Series 1982 Capital Improvement Bonds. -25- c. The City does not intend to issue in 1982 general obligation bonds for new project commitments under special state authorizations for the City's residential or commercia! rehabilitation programs, parking facilities, or urban renewat. d. The use of revenue bonds to finance public improvement comrnitments for economic development projects is preferred over the use of the City's general obligation bond financing. �Vhile Port Authority revenue bond financing is a highly desired method of financing economic development incentives, the City may consider using tax increment bonding or Gity revenue bonding in 1982 for the following projects: . 1) Block C, 22 and/or L. 2) Previous committed R-20, R-37 and NDP projects under contract with HUD for which Urban Renewal General Obligation Bond funding.was anticipated. 3) Harkins Bowling Alley Site Parking Ramp ($3,000,000) 4) Highland Parking Ramp if legally possible ($1,700,000) 5) Mortgage Revenue Bonding for Housing Program 6) Construction of sewer projects that eliminate treatment costs for storm water when the annual treatment cost amounts exceed debt service on bonds issued to finance construction of new sewers. 7) District heating. e. Projects proposed for funding with tax increment bonds (whether general obligation or revenue)must meet the requirements of Policy B4 before City Council will cansider issuing bonds. B4: `fAX INCREMENT FINANCING a. Revenue Pro}ections by Consultant: Revenue projections for all tax increment proposals should be analyzed by an outside financial consultant rather than a bond consultant. b. Debt Service From Bond Sale Proceeds: Debt service for all tax increment projects will be paid from bond proceeds for no more than the first three years of project irnplementation when no tax increments or other project revenues are generated. c. Other Costs Funded from Bond Sales Proceeds: All costs relating to any tax increment proposal should be funded with bond proceeds and included in the justification of each proposal. These costs include, but are not limited to; design, acquisition and relocation, construction, bond consultant, bond counsel, financial consultant and staff time. _?6_ _ _ __ ,� _ _ _ ._ _ . _ _ .. . d. �lll State requirements as set foc#h in tl�innesota Statutes must be met. B5: REHaBILITATION LOAN FUNDS City bond monies used to provide residential rehabilitation ': loans shall be recycled for �dditionalloans,as the original loans : are repaid according to the guidelines adopted by the Saint . Paul City Council. CDBG monies used to:provide residential rehabilitation loans, which return to tne CDBG Program as program income, shall be appropriated from the program income � line item to provide new loans as the ori�inal loans are repaid. -27- , ,. __ _ . _ __. _ _ _ ____.. __.. ___. .._.____._ _ _ _---�_.,_ ., . ,, 4.0 POLICY I�'�IPLEMENTATION Saint Paul's Capital Allocation Policies will be effective only if they are carefully monitored. While City Council has final , responsibility and authority for implementing the polieies, monitoring must occur throughout the proposal review and budget preparation process. Nionitoring responsibility is assigned to three groups: The Planning Commission, the CIB Committee, and the Budget Section of the Mayor's Office. In some instances, the responsibility is shared. In others, input f rom others may be required, but the responsibility for assuring implementation falls to one of these three groups. Figure 4 indicates where respansibility for monitoring imple- mentation of each policy rests in the project review and budget preparation process. FIGURE 4: POLICY MONITORtNG AND I[��PLEMENTATION RESPONSIBILITY Planning CIB Mayor's Office Commission Committee Budget Section Strategy Policies All Sl, S2, 53 --- (S 1-58) Implementa- tion and Development ID2, ID3 l�il --- Policies (ID 1-ID 19) Project P1, P2, Policies P3, Pb All F4 through P 10 (P1-P10) Budget Policies --- B1 through B4 All (B 1-BS) -28- , _ _. _ _. .._ _ __ ;: CREDITS PLANNING COMIv1ISSION Thomas Fitzgibbon, Chairman Nelsene Karns Liz Anderson David Lanegran �Clark Armstead Joseph Levy lames aryan . �David McDonell *Carolyn Cochrane �*-�ane Nelson Sam Grais �Joseph Pangal ; , Rev. Gl°n Hanggi *John Schmidt � - Sr.Alberta Huber Gayle Summers � *David Hyduke Janabeile Taylor Richard Kadrie - - Adolf Tobler *Robert Van Hoef *Capital Improvement Program Subcommittee - �*Subcommittee i;nair ADMINISTRATION James J. Bellus, Director, DPED AND POLICY � Peggy Reichert, Planning Administrator DIRECTION Allen Lovejoy, Senior Planner � AD HOC CITIZEN Tom Eddy �Nerrill Robinson ADVISORY SUB- �erry Franck Robert Rogge COMNIITTEE Harry Niemeyer James Selchow AI Oertwig N9arcus Williams Joseph Pangal _ RESEARCH AND Patricia James, Planner PLANNING Lisa Roden, Planner Gregory Blees, Budget Analyst Gregory Haupt, Budget Analyst -29- _ _ _ ,; . � _ L� � �t*YO,- ' GITY OF SAINT PAUL � 1—6--�' i '� "'� ' OFFICE OF THE MAYOR � - . �� o ��, � : , �� z� r � �� uimu, ,�. o: rlll 1ii ll; w� a ' �' 34? CITY HALL ��'�� SAINT PAUL, MINNESOTA 55102 GEORGE LATIMER (6]2) 298-4323 � MAYOR � December 22, 1980 Pres i dent Ron t�laddox and Members of the St. Paul City Council 7th Floor City Hall St. Paul , tlinnesota 55102 RE: "St. Paul Capital Allocation Policy, 1982-1986" Dear Council President Maddox and Council P•lembers: Transmitted with this letter are copies of the Planning Commission's recorunended capital allocation policies. This policy document is identical to the one you recently received except for the correction of some misprints. You will notice that the Planning Commission's recommendations follow closely those that the Ad Hoc Citizens Evaluation Committee submitted to you at the Perforr�ance Hearing on November 20. Those instances where the policies differ from the Ad Hoc Evaluation Corr�nittee recoir�nendations are noted below. _ Implementation and Development Poli� ID14 was tightened by the Ad Hoc Evaluation Cor�mittee to refer only to the energy use of the body that will be operating the project. The Planning Commission saw the wisdom of this change, but thought that the policies should also address the broader question of total enerc�y use. The Comr�ission is, therefore, recommending a new policy, ID13, to encourage capital improvement proposals which will reduce the overall consumption of nonrenewable energy supplies. Ir� lementation and Develo ment Polic ID19. This new policy, entitled "Strear�lining ity perations , was suggested after the Ad Hoc Evaluation Corr�nittee had finished its work. The policy gives credit to those imorovements which will promote more efficient operation of city government. The Planning Commission felt it «as important to support these kinds of capital improvements and so is recor.unending this policy. Budget Policy 81 . Subsection a of this policy has been revised. As in ID19, this change was proposed after the Ad Hoc Committee had finalized its recommendations, and the Planning Commission believed that it had merit. The policy now recommends that public improvements which will result in extraordinary operating and maintenance costs be identified, and that a plan to pay for these extra costs be negotiated between the city and the be�nefitted property owners before the improvements are made. Budget Policy B5. This policy establishes revolving funds for residential and commercial rehabilitation. After discussions with the Administrator of the Corr�unity Development, Development, and Business Assistance Divisions of PED, the Commission decided to recommend that "commercial " be dropped fror� the portion of the policy dealing with CDBG monies. The reasons for this change is that PED has been highly � ' -2- successful in locating other resources for commercial rehabilitation, and CDBG can, therefore, be freed to be used in other projects and programs. I am sure you will want to join me in thanking the Planning Commission for their time and thoughtfulness in revising these policies. I wholeheartedly recomnend their adoption. This document is scheduled to be heard and acted on by the Finance, Management and Personnel Committee on January 8. If you have any questions, do not hesitate to contact the Planning Administrator, Peggy Reichert. Merry Christmas and Happy New Year to each of you. Sincerely, eor La i Mayo GL:PR:PJ:mh Enc. cc: Rose Mix cc: John Connelly Y � � ,a� f � / Q �< < ; � � �� ___ � � -� `<: r�� �tf> SAINT PA�lL ;- �r ,� ��� - �. �' CAPITAL ALLOCATION POLICY ��.��n_ �� � 1980 /' F �.�-` �/'���/� / _�J / � � � � .� r'� '�r i��� �P s 'P&���. �°�`^`�4� fl' �� �P� '� � . � �?�' E � '' ���.^��� � ��. � e � e <.,��e.e,<. "t�a v� �' .. �� ��������.� . 9��`. ��� �`��- � �������, �➢� ° �.� ��;, x�$ �a��'��_. ���� �€.�� �� ,�, r� ����£ ��r � �� �. � ..,..,���� � �'� �,� ��� . �a �� ��1,�ea�q����' � DIVISION OF PLANNING DEPARTMENT OF PLANNING AND ECONOMIC DEVELOPMENT CITY OF SAINT PAUL GLOSSARY � Ava orem taxes: roperty or rea estate tax pa ase on the va ue o t e property. Bon : n nterest- ear ng cert cate o n e te ness. Bond funds: Dollars obtained through sale of bonds. Cap ta : n accumu a on o goo s or money. Capital allocation: Assignment of available capltal to uses, either by function (e.g., streets, sewers) or by geographical area. Capital expenditure: Actual spending of capital for pro�ects. Capital improvement: A durable asset purchased with capital. Capital improvements are significant, one time undertakings often paid for by borrowing. Capitat Improvement Budget (CIB): A listing of capital expenditures for the coming year. In St. Paul, the City Council appropriates money for capttal improvements by adopting the Capital Improvement Budget. Capital Improvement Program (CIP): A listing of tentative cortmitments for capital expenditures for the years (usually four years) following the Capital Improvement Budget year. In St. Paut, the CIP is an identification by the Planning Comnission of direction and projects to be pursued. Each year previous Planning Cortmission CIP recommendations are considered, affirmed or modified, and lmplemented through adoption by City Council of a Capital Improvement Budget. CIB Cortmittee: See St. Paul Long-Range Capital Improvement Budget Comnittee below. Comnunity Development Biock Grant (CDBG): Monies made available annually to St. Paul by HUD through provisions of the Housing and Cortmunity Development Acts of 1974 and 1977. Cortmunity Development (Block Grant) Program: Refers to both Federal and locat activities connected with implementation of the Housing and Comnunity Development Acts of 1974 and 1977. Cnrtmunity Development Division: The division of St. Paul's Department of Planning and Economic Development (DPED) with responsibility for overseeing and evaluating use of CDBG monies. Comnunity Development Plan: See Three-Year Comnunity Development Plan. County Aid: An annual grant from Ramsey County to compensate St. Paul for maintaining, constructing and reconstructing certain county-designated roads in St. Paul De t servi ce: nnua or sem -annua payment o nterest an repayment o pr nc pa on a oan. ty � of St. Paul debt service is primarily for bonds. Department of Finance and Management Services (DFMS): One of six departments of St. Paul city government. Department of Planning and Economic Development (DPED): The newest department of St. Paul city government. Comprised of the Planning Division, Economic Development Division, Comnunity Development Division, and Renewal Division. Oowntown People Mover (DPM): A fixed-guideway automatic public transit system under study for downtown St. Paul. E Ent t ement grant: at port on o B mon es to w c a c ty s ent t e y ormu a, as oppose to a discretionary grant made at the discretion of the Secretary of HUD. G nera o gat on on • cert cate o n e te ness ssue an so y a c ty o genera e cap a . A general obligation bond 1s normally repaid from a levy on property. Its debt service has first rights on any city revenues, and is therefore said to be backed by the "full faith and credit" of the municipality. (See revenue bond, below). ent e reatment rea : spec e area w t n t e y o a nt au w c as een � identified by the appropriate district council or neighborhood group, the Planning Commission, and the City Council for the purpose of encouraging property owners to rehabilitate thetr properties and to bring substantial improvement to the area in accordance with an approved ITA ptan. Continued on back cover city of saint paul planning commission resolution file number 7847 UClte �PCPmhPr $_ 1978 WHEREAS, the Planning Commission of the City of Saint Paul is charged with responsibility for development and review of policy to guide the annual Unified Capital Improvement Program and Budget Process (UCIPBP); and WHEREAS, the Planning Commission has reviewed the policies adopted as part of "Saint Paul Capital Allocation Policy: 1979, 1980, 1981 " and revised them as indicated in the attached copy; NOW BE IT THEREFORE RESOLVED, that the Planning Comnission approves the policies entitled "Saint Paul Capital Allocation Policies: 1980", as revised, and directs transmittal to the Mayor and City Council , along with relevant background information, for review and adoption. moved by McDonel l _ _ seconded by _ PanQa, - . in fav�or- against o SAINT PAUL CAPITAL ALLOCATION POLICY: 1980 APPROVED BY THE SAINT PAUL PLANNING COMMISSION: DECEMBER 4, 1978 RESOCUTION NUMBER 78-47 ADOPTED BY THE SAINT PAUL CITY COUNCIL: DIVISION OF PLANNING DEPARTMENT OF PLANNING AND ECONOMIC DEVELOPMENT 421 WABASHA STREET SAINT PAUL, PIINNESOTA 55102 TABLE OF CONTENTS 1 .0 SAINT PAUL CAPITAL � ALLOCATION POLICY: 1980 � 1 .1 DEFINITIONS AND TERMS 1 1 .2 THE POLICIES 3 .0 THE UNDERLYING RATIONALE 13 FOR SAINT PAUL CAPITAL ALLOCATION POLICY 2. GOALS AND PRINCIPLES 2.� IMPLEMENTATION OF GOALS AND PRINCIPLES: 3 IMPROVEMENT ACTIVITIES 2.3 IMPLEMENTATION OF GOALS AND PRINCIPLES: PRIORITY AREAS FOR NEIGHBORHOOD IMPROVEMENT . IMPLEMENTATION F GOALS AND PRINCIPLES: THE CITY 'S ROLE IN ECONOMIC DEVELOPMENT . IMPLEMEN TION F G ALS ND PRINCIPLES: CITYWIDE BALANCE 3.0 CAPITAL EXPENDITURES IN FISCAL PERSPECTIVE 3. TYPES OF CAPITAL IMPROVEMENT FUNDS 23 3.2 FISCAL CONSTRAINTS APPENDICES .0 UNIFIED CAPITAL 3 IMPROVEMENT PROGRAM AND BUDGET PROCESS (UCIPBP) 5.0 POLICY IMPLEMENTATION 6.0 CITY COUNCIL ADOPTED 1 79 BUDGETS AND TENTATIVE FOUR- YEAR PROGRAMS 6. CAPIT L I�MPRO E ENT BONDS 38 E .3 TER P LLUTION ABATEMENT BONDS 42 7.0 RESOURCES FOR FURTHER 43 INFORMATION CREDITS 44 GLOSSARY Inside Covers ii LIST OF FIGURES FIGURE PAGE TITLE 1 15 Typical Municipal Capital Projects 2 17 • Housing Condition/Income Map 3 24 Types of Capital Funds and Their Uses 4 32 The Unified Capital Improvement Program and Budget Process for the City of Saint Paul 5 33 1978/1979 Calendar for the Unified Capital Improvement Program and Budget Process 6 35 Policy Monitoring and Implementation Responsibility iii . 1.0 SAINT PAUL CAPITAL ALLOCATION POLICY: 1980 The City of St. Paul 's annual capital improvement budget and program is the result of a year-long process called the Unified Capital Improvement Program and Budget Process or UCIPBP. A set of capital allocation policies, adopted by the St. Paul City Council , are used to guide the recommendations and final decisions made through this process. I� 1978, twenty-two policies were adopted by City Council for a three-year period: 1979, 1980, and 1981 . In adopting policies for three years , it was understood that there would be an annual review so that appropriate revisions could be made. The policies which will be used in 1979 (resulting in a budget and program for 1980) and a brief explanation of key terms follow. The full document includes additional chapters which present supporting information. 1.1 DEFINITIONS AND TERMS The policies are divided into three categories: strategy policies, implementation and development policies , and budget and finance policies. Each category reflects a separate level of policy. Strategy policies set general direction for St. Paul. Their rationale is based on citywide goals and a strategy for reaching these goals adopted by City Council for the three-year period. Implementation and development policies focus more specifically on the kinds of capital projects that will be encouraged or discouraged given the limited resources available to St. Paul for capital improvements. Budget and finance policies address the various sources of funds available to St. Paul for capital improvements, when they will be used, and conditions that must be met in order to use them. • 1 .1.1 TYPES OF CAPITAL IMPROVEMENTS Three terms which differentiate between broad types of capital projects are used throughout the policies. These terms are: service system, system support and subsidy. 1 Most capital improvements fit into the service system category. Service systems include the following subsystems: - Transportation: roads, bridges, curbing, sidewalks, lighting, signals, signs, skyways, parking - Waste S stem: sanitary sewers, solid waste faci ities, recycling facilities - Water System-Supply and Removal : supply distribution, storm sewers, ponds - Safety: police stations, fire stations - Leisure/Education/Culture/Environment: parks, parkways, p aygrounds, recreation centers, libraries, cultural centers, museums, trees, special use facilities System support activities improve the ability of the city to deliver services. Examples of system support projects include: - headquarters and administrative offices - training or educational facilities - repair and maintenance facilities - storage facilities - communications facilities - The final category, subsidy, reflects assistance given to individuals or businesses as incentive for capital improvements. Subsidey allocations include: - loans - grants - acquisition and/or clearance 2 1 .1 .2 PRIORITY AREAS Some of the policies refer to different types of residential areas within St. Paul . The classification of areas is based on the median income of each census tract in comparison with the median income of the SMSA* and the condition of the area as indicated in St. Paul 's "Residential Improvement Strategy" . The result is as follows: Residential Improvement Category Conservation Improvement Median Income I & II I & II Improvement III Less than 65% of SMSA Other A Improvement III 65-79% of SMSA Other B Improvement III" 80% or more of SMSA Other C Improvement III *Standard Metropolitan Statistical Area as defined by the U. S. Department of the Census. The policies also refer to "neighborhood revitalization". This means coordination of a number of improvements in a residential area in order to stimulate private investment and, as a result, halt deterioration. Neighborhoods suitable for such an effort are most likely to be found within "A", "B", or Improvement III areas . 1 .2 THE POLICIES 1 .2.1 STRATEGY POLICIES A It would be desjrable for the City to take neighborhood revitalization action aimed specifically at those areas of deteriorated housing with the greatest potential for attracting private reinvestment, especially in those areas where significant private reinvestment is not currently occurring. B New allocation of both subsidy capital and capital for service systems improvements in support of residential and neighborhood improvement should follow this dis- tribution: 3 � of Total Recommended Residential % of Subsidy Area Blocks Capital A, B & Improvement III 30q 70-75% All Other 70q 25-30% C 1 .New service system capital improvements for neigh- borhood betterment should support neighborhood revitalization action aimed at those areas of deteriorated housing with the greatest potential for attracting private reinvestment (for example, Identified Treatment Areas). 2•Furthermore, first priority for service system improvements outside of areas chosen for neighbor- hood revitalization should be in areas where the poor condition of service systems can be demonstrated to be depressing resale value of property or de- terring maintenance investment of owners. D 1. PJew allocations by the City of Saint Paul of both subsidy capital and capital for service system improvements in direct support of economic develop- ment should emphasize complementing residential revitalization (including District 17) as first consideration. 2. Second consideration for city capital allocations in direct support of economic development should be for other commercial or retail reuse or revitalization, including the downtown. E (Not used) F In order to assure a balanced approach to annual capital allocation, total budget allocations and tentative program commitments for new projects, excluding special grants, costs born by other units of government or the private sector and assessments which are for a particular project, should approach the following proportions: � of Total Cate or Available Neighborhood Improvement 25-35% Economic Development 20-30% Citywide Service Systems Improvement 35-45% Support System Development 5-10� 4 G Not more than 20% of the monies budgeted each year, excluding special grants, costs born by other units of government or the private sector and assessments which are for a particular project, shou1d be for projects in any one district. . . E N N N L ENT LICIES H The f�anding needs of capital improvement projects which have received previous budget appropriations for construction plans, acquisition and/or construction phases, normally have priority over new projects. I Generally, the City's service system will not be expanded. 1. Within service system categories, rehabilitation of the city's existing facilities takes priority over the addition of facilities to the service system, except where economy or efficiency factors or planning considerations indicate that such rehabil- itation is inadvisable. 2, Replacement of existing city service system facilities takes priority over additions to the city's system. 3, Additions to the city's service system take last priority untess the addition brings the area where it is located up to a standard of service which has been officially adopted by the city as part of a plan for the specific service system and budget policy does not limit such funding. In such cases, the addition of service system components has the same priority as replacement of existing service systems. J Generally, the City will budget acquisition fundyng for new pro�ects under the following conditions : 1, Acquisition related to prfivate development or reuse: (housing or economic development) : a. If there is a responsible developer with financing correni tments i n hand; and b. If the proposed reuse is in conformance with adopted city plans. 5 2:Acquisition related to public development or reuse: a. If right-of-way or easements for service systems are deemed necessary; or b. If there are opportunities to complete parkland assembly where parcels have been previously identified for conversion to park use when they become available; or c. If the property being acquired has tax exempt status and the proposed use has been clearly identified and is consistent w9th adopted City plans, policies, and priorities for capital expenditure; or d• If opportunities for special grant funding exist. K Allocation of capital funds for economic development proposals will be based on the merits of each proposal and upon its ability to leverage private investment dollars and obtain a return of increased property taxes in accordance with the identified leverage and return on investment guidelines. 1 .LEVERAGE GUIDELINES: Normal leveraging is 1 :6. In ot er wor s , eac ollar the city provides for a particular pro3ect should mean six capital dollars committed by the developer. For example, the City would norma1ly anticipate providing no more than $60,000 in public improvements to service systems or in subsidy to a pro�ect valued at $360,000. This ratio may go as low as 1 :3 if a given project will have a major impact on a public goal . Examples of such potentially worthwhile projects include: a.Projects directly associated with neighborhood revitalization efforts; b.Projects which generate additional (not displace- ment) employment within St. Paul ; and c.Projects whose principal ob�ective is resource con- servation or the development of alternative energy sources. 2.�ETURN ON INVESTMENT GUIDELINES: Normal return on nvestment s n ot er words, the city expects to realize a direct return of 12% property taxes for its participation in an economic development project. If $75,000 in public improvements are provided, tax receipts from the pro�ect should be $9,000 per year more than they were before develop- ment. 6 This return on investment may go as low as 4% if a given project will have a major impact on a public goal . Examples of such potentially worthwhile pro- jects are given in 1, above. However, at a minimum, the tax ield from a roject s ou cover the cost of any add tiona mun c pa services required. L Tax abatement is discouraged as a development incentive. However, it may be used to support projects that explicitly serve a public purpose. If used, abated valuation in any year of the abatement period should not be lower than the valuation of land and improve- ments before the project is started increased at a 6% rate compounded annually over the term of abatement. M The selection of Identified Treatment Areas for neigh- borhood revitalization wjll be made according to the ITA guidelines adopted by the St. Pau1 City Council as File Number 271322 on June 27, 1978. (Copies may be obtained by calling 298-5586.) N (Reserved for commercial revitalization policy. ) 0 If the Downtown People Mover (DPM) is implemented, not more than $6.0 million in City Capital Improvement Bonds will be appropriated as cash to meet the 10� City match which will be required by the federal grant. P Diseased shade tree removal as a special allocation will be concluded with the 1980 capital improvement budget. Reforestation should continue at at least 5,000 trees per year throughout the 1980-1984 Capital Improvement Program. � 1Q Conditions for City participation in funding skyways : ;.�.�.G �. 1 ,Funds will be budgeted only for skyway bridges that are part of a firm package for development or redevelopment of the benefitting buildings ; �_�� `z �r 2,Normally, the City will fund only a portion of skyway �d_��.,,,,� , bri dge cons tructi on. The devel opers and/or property ' owners of benefitting buildings shall fund the entire cost of skyway system constructjon within their buildings; 3,The City will not participate in funding the operation or maintenance of a skyway system unless the City is the owner or developer of a benefitted building. 7 , � / � 2Q The City will consider budgeting funds for a site preparation fund under the following conditions : 1. Funding is bud eted on a yearly basis with an initial allocation of $�50,000; 2.The fund will only be used to prepare tax-forfeited sites owned by the City or scattered sites formerly acquired by the Housing and Redevelopment Authority for clearance; 3•Site preparation will be undertaken only if a developer has committed to buying the specific parcel once it is prepared; and 4.No administrative or operating costs are paid from the fund. � 2.2.3 BUDGET POLICIES R Given the City`s fiscal constraints it is desirabl@ to �- allocate municipal capital to projects in 1980 and 1'9 1� ��`�� �� �� which will not result jn a net increase in City operating and maintenance responsibilities. At a minimum, this means that: ' 1 ,Essential facilitjes which can be financed and operated by the City and another agency will be given a high priority if they can be constructed and operated at less cost than separate facilities. � 2,Generally, there will be no allocation of capital for purchase or construction of facilities for human services programs which are not operated by the City or for rehabilitation of human services facili- ties which are not owned by the City in 1980 and �<.��, _��81�, As an exception, those citywide facilities specifically provided for in HUD regulations as eligible for Comnunity Development Block Grant funds may be cons9dered. No CDBG monies w911 be appro- ��� priated to finance annual operation and maintenance of human service facilities in 1980 and �981. 3,New swimming pools will not be considered for funding in 1980 and 1981 . S The City will annually budget for each project phase only the estimated amount of money which can reasonably be expected to be expended within the budget year. The capital improvement program will identify funds required to complete the financing of a project in future years. This tentatjve commitment is subject to } , 8 '� '��I e.a.l i'�r1 �eeR..L.f ;��cW...'Y � vt..t#.�I,.�,a,� . ��, �-� ;,,{, r ,�,`�- , „ . < ` ��;i,,,�„A ; adoption by City Council of a Capital Improvement . ' Budget appropriation for the project. >� .:.�ti�.:-:_:�•<� . s�C.?</9,- �7 9 T Determination of whjch fund source is most appropriate for financing each of the City's budget priorities will be made as follows: 1 .A11 street improvement projects on Municipal State Aid, County Aid, or Minnesota Trunk Highway routes will be considered for funding primarily with monies allocated to the city specifically for those routes. 2.Capital improvements which are eligible for metro- politan, State or Federal programs or private grants should be so financed. CDBG and CIB monies may be used to provide local matching funds, if appropriate. 3,Capital improvements which could be financed with specific bonding authority may be so recorrnnended if , City Council has 9ndicated its intention to utilize . � such authority; 4.Capital improvements and programs eligible for CDBG funding will be so funded; and ,, 5,Capital improvement which cannot be financed with monies governed by paragraphs (1 ) through (4) will be considered for CIB bond funding. U Bond financing: 1.The Cjty will issue $6,500,000 in Capital Improve- ment Bonds in 1980. 2 ,The City will issue $4,002,000 in water pollution abatement bonds in 1980 to finance the second phase of the Thomas-Dale sewer project. 3,The City does not intend to issue tax levy-supported bonds in 1980 for the resldential or cort�nercial rehab9l�tation program, parking facilities, or urban renewal . � 4, If tax increment bond-funded projects are developed, they must meet requirements of Policy V "Tax Increment Financing Policy" before City Council will consider issu9ng bonds. 9 V Tax increment financing: 1 ,Revenue Projections by Consultant: Revenue pro- jections for «11 tax increment proposals should be analyzed by a private financial consultant rather than a bond consultant. 2,Debt Service From Bond Sale Proceeds: Debt service for all tax increment projects will be paid from bond proceeds for no more than the f�rst three years of project implementation when no tax increments or other pro�ect revenues are generated. 3,Other Costs Funded From Bond Sale Proceeds : All costs relating to any tax increment proposals should be funded with bond proceeds and included in the justification of each proposal. These costs include, but are not li�ited to: design, acquisition and relocation, construction, bond consultant, bond counsel , financial consultant and staff time. 4„Conditions to be fulfilled for tax increment bond financing: - a,There must be a clear statement of public purpose; b,All state requirements must be met; c,The prospective developer must have financing avai 1 abl e; arid d,There must be a written contract among the developer, the city and any involved public authorities. The contract must identify, among other things, estimates for all anticipated costs related to the development estimates for annual operating and maintenance costs associated with the completed project, and who js responsible for meeting each of these costs. S, Use of tax increment bond sale proceeds in accordance with written financial plan: Tax increment bond monies sha11 be expended only in accordance with the terms identified in the financ9al plan, unless other- wise provided for by City Council reso1ution as recomnended by the director of the Department of Finance and Management Services. 10 W City bond monies and CDBG monies used to provide residential rehab911tation loans shall be recycled, as the original loans are repaid, according to the guidelines adopted by the Saint Paul City Council as Council File 272145 adopted November 30, 1978. Monies used to provide commercial rehabilitation loans shall be recycled to administer the program and provide new loans as the original loans are repaid. 11 2.0 THE UNDERLYING RATIONALE FOR SAINT PAUL CAPITAL ALLOCATION POLICY Adopting a capital improvement budget is one of the �nost important actions taken by city government. Capital expenditures can have a significant effect on the development or redevelopment of a city and its neighborhoods. At the same time, legitimate capital improvement needs invariably exceed the money available to address them. If a capital budget is going to meet the greatest needs and have the most benefit for the �ity as a whole, a method for determining the relative priority of projects is required. Policies based on the goals and objectives of a city help meet this requirement. 2.1 GOALS AND PRINCIPLES Two broad objectives form the basis for many of St. Paul 's activities, including its capital expenditures. City Council has adopted them as goals and Mayor Latimer identified them as major objectives of his administration. They are: 1 .To strengthen the city's neighborhoods in order to make them better places to live; and 2.To strengthen the city's economic base in order to provide jobs and services needed by residents of the city. In addition, because capital improvement funds are limited and because needs are great, the goals are supplemented by three principles which relate specifically to capital allocations: 1 .Critical needs which affect the basic protection of life, health, or public safety take precedence over all other capital expenditures; 2.Capital expenditures should be channeled to those areas where there is the greatest opportunity for stimulating private reinvestment and effecting measurable neighbor- hood or economic improvement; and 3.Some capital funds should be made available to prevent deterioration and blight in sound areas of the city and to meet the need for improvements which benefit the city as a whole. 2.2 IMPLEMENTATION OF GOALS In order to translate the goals and principles into AND PRINCIPLES: IMPROVEMENT policies, the various types of projects which are typically ACTIVITIES funded by the City as capital improvements are divided into three broad categories: improvements to service systems, improvements to facilities which support the ability of local government to offer services efficiently and effective- ly, and subsidies for improvements to privately awned property. 13 These three broad categories and examples of each .are listed in Figure 1. The subsidy and system support categories are fairly limited. The service system category is the largest of the three and is divided • into subsystems. The advantage of listing typical activities in this manner is that it helps separate projects that are directed toward individual or neighborhood needs from those that serve a larger part of the comnunity or the community as a whole. Based on this differentiation, the policy statements can identify appropriate activities more concisely. 2.3 IMPLEMENTATION OF GOALS The second step in translating the goals and principles AND PRINCIPLES: PRIORITY into policies is identification of those areas of the AREAS FOR NEIGHBORHOOD city where there is the greatest opportunity to stimulate IMPROVEMENT private reinvestment and effect measurable neighborhood improvement. The role city government is able to play must also be identified if policy is to provide �irection. Many qualities contribute to strong, stable neighborhoods. If the physical aspects are to enhance the stability of a neighborhood, an adequate and steady level of time and money is required. Providing these resources for main- taining individual properties is the responsibility of the owner. The City has responsibility for providing adequate resources to those. service systems which it owns and operates. However, in some cases property owners have been unable to maintain their properties. Because the strength of a city's neighborhoods and housing stock affects the strength of the city as a whole, municipal assistance to individual structures or areas which show some deterioration may be justified. 2.3.1 HOUSING CONDITION/INCOME MAP Given these premises, two factors are used to identify those areas of the city that meet the intent of the goals and principles: income and the condition of the housing stock. As a measure of income, the median family income of each census tract is compared with the median family income of the SMSA (Standard Metropolitan Statistical Area) and divided into three categories: areas where the median family income of the census tract is less than 65% of the SMSA median family income, areas where it is between 65% and 80� of the SMSA median family income, and areas where it is 80% or more of the SMSA median family income. This 14 measure is the same as that required for expenditure of Community Development Block Grant funds which must be used primarily to benefit low and moderate income people. Housing condition is based on St. Paul 's "Residential Improvement Strategy". The "Residential Improvement Strategy" , adopted as part of the city's comprehensive plan in 1976, analyzes and classifies residential areas of the city into five categories based on the percentage of structures on each block which need major or minor repairs . In addition to classifying areas, the "Residential Improvement Strategy" establishes objectives for each type of area and describes programs and activities which could be used to conserve areas of sound housing (conservation areas) , rehabilitate areas of lightly deteriorated housing (Improvement I and II areas) , and redevelop areas of badly deteriorated housing (Improvement III areas) . % of Structures Needing Major % of Structures Repair or Needing Minor Beyond Repair Repairs Objectives Conservation I 4 or less 4 or less Surveillance Conservation II 4 or less 5 to 19 Intensive Maintenance Improvement I 5 to 19 20 to 81 Rehabilitation Improvement II 20 to 39 80 or less Rehabilitation and Neighbor- hood Improve- men t Improvement III 40 or more 80 or less Major Neighbor- hood Improve- ment The "Residential Improvement Strategy" reflects the position of St. Paul government that the City' s capital allocation decisions are important tactical moves for conserving and maintaining the city's housing stock and that municipal capital decisions can make a difference in neighborhood confidence. The result of combining these two factors is a housing conditi�n/income map. The map shows where residential improvements are most needed and where public assistance may be necessary as impetus for either stabilization or turnaround. 16 PRIMARY BENEFIT FIGURE 1 : TYPICAL MUNICIPAL, CAPITAL PROJECTS Indi- Neigh- City- vidual borhood wide SUBSIDY Loans • Grants • Acquisition/clearance � SUPPORT Administration, training, repair and maintenance, data processing, storage and corr�nunications facilities � SERVICE Trans ortation S stem roads, ridges, curb ng, sidewalks, lighting, signals, signage, skyways, parki ng � � Waste S stem san tary sewers, solid waste facilities, recycling facilities � � Water S stem Supp y dlstribution, storm sewers , ponds • • p�Safet stations , fire stations • Leisure/Education/Culture/Environment par s, parkways, p aygrounds, recreation centers, libraries, cultural centers, museums, trees, special use facilities � Social Care muf-ti-�' servi�ce centers, day care centers, residential care facilities, health centers � 15 . 304 ,;:::306 303 �• 305 30Z01 30Z02 301 - _ 302 � eP x i:�i�::•':i; .;,���,�',#,�3i''''��:. r 309 �i��':'' ...�: >:• :: :r>::::: 319 ,� 318.02 ''314:�: ,,,�� _ � �4r �A�{.�� .jr�:>.:::`;: _ .��+FJRiV:^:�:• 3 ��:����ir:r i :�2 .`•:,i,�,',�.`� i'i�i;: .... 332 �i�,.�5r'�' 329 �..� ..... 33 � ..... " 28 �'�'��.,`�? 346 347 ` 336 � ' g 348. ��:t,,.�_,.�,#,':�:��'�'• 344 �+ 342 �, , p, :::��:: -i::�'r �'�r$:�}:�i • :,.,i 349•� ....... :•352 33'�''�' 356 . 351 357 '�''�'� �''360 361 � 363 = 364 ; '��3'8'S"'w��::''=��. 362 .. �'�:;9$&� '_ .�'�:�66 ; e, .. 361 .. `� ,i.. 374 � ��. � � ` � .••••'.367 375 \: �„ 376.01 _ s�s.o2 HOUSING CONDITION/INCOME MAP* INCOME OF EACH CENSUS TRACT AS PERCENTAGE OF ESTIMATED 1977 SMSA MEDIAN FAMILY INCOME � �,EE, IMPROVEMENT I & II "� A - � 64q B 65-79q C � ? 80% IMPROVEMENT III � � 79� � ? 80� *Residential Improvement Strategy classification combined with the estimated 1977 median family income of each census tract as a percentage of the estimated 1977 SMSA median family income. . 2.3.2 CLASSIFICATI N F PRIORITY AREAS Assistance should go to areas where there is the greatest opportunity for strengthening and stabilizing the neigh- borhood. Two types of areas where municipal investment is likely to have the greatest impact can be identified. The first of these are called "fringe° .areas. Fringe areas are characterized by housing that is basically sound but in need of some repairs . While some private resources are available, they usually are not sufficient to stabilize the area and preserve the housing stock. Fringe areas are defined as lightly or moderately deterio- rated areas where most of the residents have a median family income which is less than 80% of the SMSA median family income. These areas are labeled "A" and "B" on the map. Areas labeled "C" are similar in housing condition and also require attention , but the higher level of private resources mean that a lower level of public incentives should be required. Identification of the second type of area is more complex. Throughout St. Paul there are areas where the housing is deteriorated but also quite substantial . Concentrated attention to these areas would serve to improve the irrrnediate neighborhood and provide impetus for improve- ments in surrounding blocks. Very often residents of these areas are low or moderate income. In order to bring about improvement, a large comnitment of public resources may be necessary. However, once initiated, private investment is likely to take over and provide the resources necessary for stabilizing the neighborhood over the long term. Such a comnitment is referred to as "neighborhood revitalization. " Neighbor- hood revitalization implies a concentration of capital improvements , along with other types of city services, in a relatively small area as a means for inducing and securing private investment in the area. Neither the "Residential Improvement Strategy" nor the map identify specific areas which would be suitable for neighborhood revitalization. Given the comnitment of time and money required of the City and the neighborhood, it is appropriate that areas be selected carefully and that activities be carefully planned by residents them- selves. Generally, these areas will be located within "A", "B", or Improvement III areas and will meet the criteria adopted by City Council for the Identified Treatment Area Program. 18 Other geographical areas also require attention . However, they. do not represent similar opportunities for improve- ment based on public incentives because they are either sound or, if deteriorated, would require extensive public expenditure for acquisition, clearance, and redevelopment before they could be made attractive for private invest- ment. Given very limited resources, it was decided that for the near future St. Paul 's primary efforts should be focused in those areas where significant improvement will not require large-scale redevelopment and on completing existing redevelopment projects. `L.4 IMPLEMENTATION OF GOALS The intent of economic development activity is twofold : AN D PRINCIPLES: THE CITY'S to increase the number of jobs and income for city resi- RULE IN ECONOMIC DEVELOPMENT dents and to expand the city's tax base so that reliance on any one source is minimized. Specific steps to bring about these changes include broadening the city's industrial base; strengthening the downtown as a retail , commercial, convention and industrial center; strengthening community commercial and retail centers; and promoting local neighborhood economic development opportunities. Public economic development activities in St. Paul consist of a wide range of activities and incentives. They include public improvements to support development; subsidy in the form of land acquisition or preparation, tax abatement, or special types of financing assistance; and the use of municipal police powers, legislative authority, persuasive powers and technical assistance to neutralize stumbling blocks to development. These economic development tools are used by the City of St. Paul and the Port Authority of St. Paul to achieve shared economic development objectives. These objectives are set by the City Council which approves Port Authority bond issues and has two positions on the Authority Board. Economic development actions of the Port Authority are overseen and coordinated with those of the city by the P1ayor through the Division of Economic Development of the Department of Planning and Economic Dev�lopment. In the past, the Port Authority has addressed itself principally to industrial park development with some ex- ceptions (assistance to United Hospitals, Inc. , Control Data Corporation, and the Amtrak Station). The City, on the other hand, has strongly promoted and assisted downtown and neighborhood economic development. Recently, the Port Authority has taken a somewhat larger role in downtown development. 19 Expanding the Port Authority's role in downtown redevelop- ment could be consistent with City Council economic deve�opment strategy and objectives. With policy guidance and planning from the City, the Authority could undertake the acquisition, clearance, and preparation of land when there is developer comnitment and generate capital for development of such land through sale of� revenue bonds. This would reduce the need for city capital generated through sale of general ob]igation bonds. It is the City's intention to finance revitalization of downtown with less reliance on general obligation bonds while pursuing other forms of public financing to leverage private funds. It would also permit St. Paul to expand its economic development activities in areas other than downtown. Economic development strategy for St. Paul must carry commitment to a continuing level of dawntown revitalization. However, the City should geographically broaden its economic stimulation and development efforts to place gradually increasing emphasis on use of its funds for development projects which: (1) more closely ally with neighborhood revitalization; and (2) promote reuse or revitalization of existing comnercial or retail areas. Certain types of projects in downtown will continue to require initial investment from the City to improve their redevelopment potential. For example, service systems improvements which cannot reasonably be made part of a redevelopment project would continue to be made by the City. But, as the downtown attracts more developer activity, less municipal subsidy capital should be needed to maintain reinvestment momentum. If the Port Authority is to continue to expand its role in downtown redevelopment, an overall economic develop- ment strategy must be developed by City Council and followed by both the City and the Port Authority. Some city financing tools, particularly those not available to the Port Authority, may have to be used for project preparation in dawntown redevelopment. Tax increment financing and development district bonding could also be pressed into service for funding proposals under some circumstances. But the PQrt Authority's revenue bonding capability would provide most future funding for both industrial development and downtown redevelopment. 20 2.5 IMPLEMENTATION OF Both•of St. Pau s goa s must be pursue if the city is GOALS AND PRINCIPLES: to remain a good place to live. There must also be CITYWIDE BALANCE balance among geographical areas of the city. While priorities must be set, each area of St. Paul is depend- ent on other areas and priorities must not lead to concentration in one or two areas while the rest of the city is neglected. Citywide needs must also be addressed so that improvements which benefit a part of the city rest on a sound base. This means that facilities which allow efficient delivery of city services must be adequate. It also means that service system improvements which serve the city as a whole must be adequate if the more localized parts are to be effective. As an example, it would not be appropriate for St. Paul to improve streets which serve residents of a small area and neglect the major streets which lead to that neighborhood as well as a number of other neighborhoods. As a result, four categories of benefit must be addressed: - Neighborhood improvement - Economic development - Citywide service systems, and - Support systems. In order to achieve balance between geographic areas of the city and between levels of benefit, guidelines for the proportion of available resources which should go to different areas and different levels are set. The guidelines reflect St. Paul 's rationale for capital expenditure supplemented by an analysis of past budgets and the knowledge gained through each annual budget process. In this way, the City's goals can be addressed as well as changing needs and situations within the city. 21 3.0 CAPITAL EXPENDITURES IN FISCAL PERSPECTIVE St. Paul 's annual budget has two major sections : an operating budget and a capital improvement budget. Although treated separately, each of these two budgets can have an impact on the other. As a result, the relationships between the two must be considered as part of sound budgeting practice. Most of the income received by a city is used to support the operation of city services and maintenance of the equipment and buildings required by these services. Salaries , fringe benefits, supplies, utility costs, and routine maintenance are all part of the operating budget. Usually an operating expense will fall into one of the following three categories: l.operating and maintenance expenses to continue existing government services which are provided directly or under contract; 2.operating and maintenance expenses for new or expanded services; or 3.operating and maintenance expenses associated with additional public facilities . Capital improvements are long-term, physical improvements. Typically, a capital improvement is a one-time expendi- ture with a life expectancy of at least three years. Capital expenditures also fall into one of three categories: l.the cost of significantly upgrading or replacing an outmoded municipal facility; 2.the cost of adding a new municipal facility; or 3.the cost of providing incentives to the private sector to encourage physical improvements or development. 3. 1 TYPES OF CAPITAL There are a number of types of funds available to St. Paul IMPROVEMENT FUNDS for capital improvements. These include bonds, grants and aids from other levels of government, and local funds supported by property taxes, user charges or assessments. In addition, the costs of some projects are shared with other units of government and occasionally a private business or foundation will give the city a grant for a specific project. The allowable uses of the fund sources can vary considerably. Limitations on the use may relate to the purpose of the project (to benefit low and moderate income people, for example) , the type of project (streets, sewers) , specific 1 ocati on s (MSA s treets or Coun ty Ai d s treets) , or a 23 FIGURE 3: TYPES OF CAPTTAL FUNDS AND THEIR USES FUND TYPE dSE Bonds Capital Improvement Bonds Any capttal expenditure. Capital Improvement Bond funds are dallars (Chapter 234, Laws of borrowed by the city which are repaid from a levy on property. Minnesota, 1976) Auto Parking Factlities Act Parking facilities. Parking Facilities Bond funds are general (Minnesota Statute 459.14) obligation bonds exclusively for acquisitlon of land or construction of automoblle parking ptaces. They are repald through levies, assess- ments. or revenue of the facility. Tax Increment Bonds Economic development. Tax Increment Bond funds are dollars borrowed to finanee redevelopment of specified parcels of tand. These bonds ape repatd through increased property taxes resulting from redevelop- ment of the parcets, Developmemt District Bonds Economic development. Development District Bond funds are dollars borrowed to finance redevelopment of a specified tract of land designated as a development district. These bonds are repaid through ' increased property taxes resulting from redevelopment in the district. Water Pollution Abatement Pollution control through construction of sewage and storn�water Bonds (Minnesota Statute facilities, General obligation bonds repaid from a levy on property. 115.41) Revenue Bonds Any capital project which will generate revenue. Citv of Saint Paul: Revenue bonds issued by the city are repaid solely from revenues generated through the facility constructed with bond proceeds. For example, in 1980 the city will consider issuing sewer revenue bonds to construct a storm sewer which removes lake water oyerflow from the sewage system. The bonds will be repaid from savings realized through reduced sewage treatment costs. Port Authorit of Saint Paui: The Port Authority may issue revenue on s repa so ey rom revenues generated by facilities constructed with bond proceeds. Authority revenue bonds are sold to construct industrial facilities or comnercial developments. �ederal Aid Housing and Community Comnunity development and housing pro�ects which benefit lower income Development Act Block Grant people, etiminate slums and b11 ht, or meet an urgent need (Community Development 81ock Grant Program�. The entitlement grant was authorized by Congress in 1974 and reenacted in modified form 1n 1971. Urban Development Action Economic development and facilities revitalization. Supplemental Grant (UDAG) program to the Comnunity Development Block Grant Program. Economic Development Economic revitalization. Possible use of these funds is for financing Assistance Grant construction of the Civic Center Theater and Exhibition Hall. Land and Water Conservation Acquisition and development of local parks and recreatlon facilities. Funds (LAWCON) Administered by the Bureau of Outdoor Recreation. Urban Mass Transportation Downtown People Mover Feasibility Study. If the feasibility study Administratlon (UMTA) proves out, UMTA wi11 fund 80% of construction. Demonstration Grant Great River Road Grant Development of the Great River Road along the Mississippi River. The (Surface Transportation US Department of Transportation program is administered by the , Act of 1978) Minnesota Department of Transportatlon (MnDOT). Constructlon Grants and Construction of wastewater treatment facilities, including sewers. This Loan Program (Clean US F�vironmental Protection Agency program is admintstered in Minnesota Water Act of 1917) by the Minnesota Pollution Controt Agency (MPCA). Interstate Turnback Construction of lnterstate highway substitution transportation profects. Funds Grant A Federal Highway Administration program funded through the Federal Aid Highway Act and administered by MnDOT. I 24 FUND TYPE USE State Assistance Municipal State Aid (MSA) Repair/construction/maintenance of MSA roads and bridges. Minnesota Department of Repair/reconstruction of state highways and bridges in St. Pau1. No Transportation (MnDOT) transfer of funds involved; all contracts are let and administered by MnDOT. Shade Tree Grants Removal of diseased shade trees and reforestation. Legislative Comnission on Acquisition and development of local parks and recreation facilities. Minnesota Resources Grants Administered by State Planning. Metro A eq ncy Assistance Metropolitan Transit Downtown People Mover Feasibility Study. MTC, using State Legislature Cortmission (MTC) Grant authorized funds, will assume 10% of the cost of the study (and of the project, if feasible). Metropolitan Parks and Open Renovation/development of regional park and open space areas in St. Paul. Space Cortmission Grant Metropolitan Waste Control Construction of wastewater treatment facilities. Seven-county bonding Comnission (MWCC) Grant authority is utilized to match state and federal funding available for sewer and treatment plant projects in the metro area. County Assistance County Aid Repair/construction/maintenance on County State Aid (CSA) system roads and bridges and county roads. City Funds Public Improvement Aid (PIA) Streets, sidewalks, alleys. PIA dollars are local property tax monies. Sewer Repair Fund Unforeseen sewer repair. Sewer repair dollars are local monies generated through user charges included in each water bill. Assessrt�nts Certain capital improvements wholly or partially funded through charges to benefitting property owners. General Fund Monies Any capital improvement, as determined appropriate by City Council. Miscellaneous Railroad Funding Agreements Improvements to railroad crossings and development of railroad-owned land as joint city-railroad pro�ects. 25 specific project (Urban Mass Transportation Administration Demonstration Gran t). The budgetary implications of fund sources also vary. Bonds are a form of indebtedness and must be repaid by the City. Depending on the type of bond, citywide property taxes, property taxes resulting from the project, assess- ments, or revenue from the project may be used to pay off this debt. Grants and aids from, other levels of government generally do not require repayment. Some grants do require that the City match the amount of the grant with a specific percentage of the total cost of the project or projects. Finally, some local funds are routinely set aside from property taxes or user charges to be used for eapital improvements to specific service systems. . 3.2 FISCAL CONSTRAINTS In addition to the limited uses of some fund sources, the capital improvements which can be undertaken by St. Paul are limited, quite simply, by the amount of money which is available. The yearly requests for capital improve- ments far exceed the dollars available to finance them. Several factors serve to compound the limits faced by St. Paul. The first of these is, of course, rapidly increasing costs which are not matched by increasing revenues. This affects all of the City's budget and makes it all the more important that the impact of a capital improvement on the operating budget be seriously consider- ed. The second factor is increased reliance of the City on grants and aids from other levels of government. Between 1970 and 1976 St. Paul 's total revenues rose from $126.2 million to $213.8 million. But property tax revenues collected by the City were actually less in 1976 than in 1970. Grants and aids, on the other hand, have been tncreasing both in dollars and as a percentage of St. Faul 's total revenues. Grants and aids are welcomed by St. Paul as a means for providing local improvements and services without in- creasing reliance on property or real estate taxes. These funds also help free money with fewer constraints to meet � important needs. It is important to remember, though, that capital allocations must reflect the mandated purpose of the funds. Conversely, the third limitat�an faced by St. Paul is decreasing aid. A major source funding for capital projects has been the federal Community Development Block Grant program. These funds are being severely curtailed and, in 26 1980, St. Paul anticipates receiving approximately half of what it did during the first three years of the program. St. Paul 's annual entitlement during 1975, 1976 and 1977 was $18,835,000. Its 1980 entitlement is pro- jected to be approximately $9.7 million. The final constraint faced annually is the commitment by the City to complete ongoing projects before new projects are initiated. When this commitment is combined with a decreasing budget and increasing costs, the ability of the City to initiate new projects is very limited. For example, the tentative program commitments approved as part of the 1979 capital improvement budget for Community Development Block Grant funds totalled $9.6 million, leaving less than $100,000 of the anticipated $9.7 million entitlement for new projects. The tentative commitments for capital improvement bonds exceed $6.0 million and St. Paul 's bonding limit is set at $6.5 million. Although both the commitments and the revenue projections are tentative, these figures give a sense of the difficult decisions which must be faced annually. 27 � APPENDICES . UNI TED C T L N AND BUDGET PROCESS . EN I N . E E 37 AND TENTATIVE FOUR YEAR PROGRAMS . U CES HE R 29 � 4.0 UNIFIED CAPITAL IMPROVEMENT PROGRAM AND BUDGET PROCESS (UCIPBP) Review of adopted policies is only the first step in St. Paul 's annual Unified Capital Improvement Program and Budget Process (UCIPBP). Once the policies have been reviewed and appropriate revisions adopted by City Council , proposals for capital improvements are submitted and an extensive review process begins . The UCIPBP was originally es tablished as a method for allocating capital improvement bond funds. The process has been enlarged over the years to include all federal , state and local funds for capital expenditures. The various bodies with responsibility for reviewing the proposals and making recommendations represent all areas of the city and a wide range of expertise and knowledge. The primary review body is the St. Paul Long-Range Capital Improvement Budget (CIB) Comnittee. Three task forces assist the CIB Committee by reviewing proposals thoroughly and ranking them on the basis of a pre-determined rating sheet. The CIB Cor�nittee then incorporates the recor�nenda- tions of the Task Forces into an annual budget and submits a formal recorr�nendation to the Mayor and City Council. In addition to the CIB Committee and the task forces, proposals are reviewed by district councils or neighbor- hood organizations, city operating departments, and the St. Paul Planning Comnission. The input from these groups is incorporated into the rating sheet which helps assure that all considerations are adequately reflected. The complete process, beginning with the development of policies through final adoption of the annual budget by Ci ty Counci 1 , i s di agrarr�ned i n Fi gure 4. Fi gure 5 pre- sents the 1979 UCIPBP calendar which will result in a capital improvement budget for 1980. 31 FIGURE 4 TF� UNIFIED CAPI'fAL IIiPROVEMENT PROGRIIM AND BUDGET PRO(.ESS FOR THE CITY OF �AINT PAUL • P[OCers Ste�s • s CITY STAFF AND INTERESTED CITI2EN5 SNTEAESTED ORGANIZATIONS PLAMJING COUNCLL R4commendation COMMISSION NAYOR �� STAPF of Goels and 1. Planning Division 1. Diatrict Councils Policies for 2. Mayor's Office-Bu�get Section 2. District Organizations Capital Resource 3. Community Development Divieion 3. Others on tha E.N.S. Allocatiun 4. Ad Hoc Citizen Committee 5. Council Staff Adoption of Goale and Policies for CITY COUNCIL Capical Resource ' Allocation CITIZ£N ORGANIZATIONS ::ITY OPERATING DEPAR'"MENTS OTHER AGENCIES Projeccs 1. District Councils 1. Fire 1. Quasi-City Agencies idencified 2. Citizen Groups 2. Police A. Porc Authority on "?reliqunazy 3. Buainess Ozganiza[ions 3. Public Works 8. School Diatzict Identificacion 4. Cownunity Services C. Board of Water Commissioners Furm" 5. Finance 6 Manaqement Svca. D. Civic Center Authority 6. Planninq 6 Economic Dev. 2. Governmental Units . A. Metropolitan Council B. Metro Waste Control Commission C. Metro TcanaiG Commission � D. County of Remsey E. Ninnesota Highway Department 3. Private Agencies OFFICE OF CITY PIANNING Planniny, Policy 1. City Planners and Timinq �2. Operatinq Departments s =.nilicts Agencies :dentified 3. Project Coordinators 4. Council StafE Pro7ect Phasing an3 Costing OPERATING DEPARTMENTS Requesting Entity Determines Whether Co Sub- CITIZEN ORGANIZATIONS OPERATING DEPARTMENTS OTHER AGENCIES mit Formal Fund- in� Request Fun3iiig Raquests BLIDGET DIRECfOR Foctnall/ Submitted � PLANNING COMMISSION STAFF ANALYSIS DISTNICT COUNCIL COUNCIL STAFF Project A) Comprehensive Plan 1. Planning Division A) District Prioritie Analysis B) Capital Allocation Policies 2. Mayor's Office-BUdget Sect. B) Project Comments C) Recommended Program 3. Community Development Div. 4. Property Manaqement Div. A) Eligibility & Feasibility Recomm�:ndations Transmitted BUDGET DIRECTOR Die�;ribute Requests to Appropriate IB COtM1ITTEE Task Force Review Projects. COMMUNITY FACILITIES STAEETS 8 UTILITIES RESIDENTIAL 6 ECONOMIC .TOUr Si[es. TASK FORCE TASK FORCE DEVELOPMENT TASK FORCE Discrict s Staff Presentations. 1. Rep. Erom 17 districts 1. Rep. from 17 districts 1. Rep. from 17 districts °" Ping. Coa¢n. Recom. 2. CIB Committee Members 2. CIB Committee Members 2. CIB Commi�tee Members Dist. ^_ouncil Prioritiee Priority Rate Projects. Determine Funding Priorities 6 Recom. Formulate Recommended � Budge[ 6 Proqram Using Task Focce Priorities CIB COI4�ITTEE 6 RECOlntnenddtions Revies+ CIB Committee Recommended Budget 6 DEPARTMENT DIRECTORS COUNCIL STAFF Identify Disaqreements Consider CI8 Committee . Reco�renended Budye� s Program s Dpt. Directors' Recom. MAY�R to Detecmine Mayor's Proposed Budqet Considec Recommenda- tions of the Mayoc 6 � the CIB Committee 6 CITY CGQNrIL Adopt Capital Improve- ment 8udget 3 2 o.`fice oi cne Mayor Budget Sec[ion-8/1Si7A , FIGURE 5 1978/1979 C1ILENDAR FOA THE UNIPIED CAPST7IL II�ROVEI�NT PROGMM & BUDGET PROCESS (Uaed !or det�rmining th� 1990 Cepiul Improvsarnt Budgat) ADOPTION OF GOALS AND POLICIES FOR CAPITAL ALLOCATION Tentativa Date 1) Interested citizens and City staff begin to review and avaluate last year's overall davelopment strategies and budqet policies by October 23, 1978 2) Intaresced citizens and City staff draft multi-year ovecall development strategiea and budget policiea for all capital resourcea available to address Saint Paul's capical need�. This draft will be distributed to districts through the Early NotiEication Sysiam (ENS) by November 17 3) 3tearing Comnittee of the Planning Cortmission holds a public meetinq on the proposed overall development strateqies and budget policies by Decembex 4 a) Planning Commission recommends overall development stratagies a.nd budqet policies by Decembez 22 5) City Council's Finance, Management and Parsonnel Committae revieae recou�ended overall development stratagies and budqet policiea by January 8, 1979 ti) City Council adopts Saint Paul Capital Allocetlon Policias (overall development strategies and budget policies) by January 11 7) Adopted Saint Paul Capital Allocation Policies distributed through the Early Notification System (ENS) by Januazy 19 PROGRAMMING AND BUDGETING PAOCESS ACTIVITIES 8) Departments and organizations identify projects on "Preliminary Identification Form" (blue foxm) by February 19 9) Entities requestinq project funding maet with approptiate City staff, includinq operatinq departments, planners and project coozdinators to identify: February 26 to March 2 a. Planning conflicts b. Timing conflicts c. Capital allocation policies conflicts d. Cost estimates 1. Capital: Design, acquisition, construction, etc. 2. Mnual operating costs 3. Effect on revenuea 10) Final submisaion date for formally submitting project funding requests to the . Flayor's Office - Bu3get Section, Room 367, on the "Unified Capital Project Re- quest Form" (white form>. Mazch 30 11) Planning Commission review to determine requested project's conformance with the Saint eaul Comprehensive Plan and adopted capital allocation policies. April 9 to May 11 1�) CIB Task Force Budget Priorities and Recommendations. Includes review of layt year's Capital I:nprovement Budget and current capiGal allocation policies, bus tour, presentations by various citizen ozqanizationa and operating de- partments, review of Planning Coaunission reco�endationa and District Council priorities, staf: analysis and project ratinq. Mazch 19 to June 15 131 CIB Committee fundinq priorities and project recommendations to the Mayor and City Council after r,�viewinq task force recormnendationa and holdinq a public hearing. June 18 to July 6 14) Department Directors' recommendations to Mayor. July 16 to July 20 15) Mayor holds P;iblic Hearing on budget recormnendations between July 16 and July 20 16) Mayor determines his budqet priorities and recommendations by July 24 17) Mayor's Proposed Capital Improvement Budget and Program preparation (typinq, printing, collating and binding). July 30 to August LO 18) Mayor transmits ?roposed CIB to City Council by (Ordinance N16306) Auqust 14 19) City Council (Finance, Management and Personnel Committee) Public Hearing between August 2'. to September 21 20) City Council adopts 1980 Capital Improvement Budget by September 27 21) Tax Levy Resolution adopted by (requirement by State law) Ociober 9 22) Grant applications are prepared by January 15, 1980 ANNUAL PROCESS EVALUATION: WIFIED CAPITAL IP�ROVEM.:NT PROGRAM AND BUDGET PROCESS 23) Ad Hoc Con¢nittee (Interested representatives ftom City Council, CIB Committee, CIB Task Forces, Planning Commission, District Councils and City staff). October 1 to October 30, 19'9 a. Task Force Rating Sheet b. Task Force and CIB Cortanittee Structure c. Performance Monitoring and Evaluation d. Capital Allocation Policies CITIZEN :AONITORING AND EVxLUATION PROCESS Continuous 33 Mayor'� Office - Budqet Section GNB:nlg Auqust 15, 1978 ' 5.0 POLICY IMPLEMENTATION The effectiveness of policy depends entirely on whether or not projects and the capital improvement budget as a whole conform with the policies . City Council estab- lishes the policies and has responsibility for adoptinq the annual capital improvement budget. Thus, final responsibility and authority for implementing policy rests with City Council . During the review process, responsibility for monitoring the policies is shared by the CIB Committee, the Planning Commission and the Budget Section of the Mayor's Office. Figure 6 indicates where the responsibility for moni- toring the implementation of each policy lies in the project review and budget recommendation process . FIGURE 6: POLICY MONITORING AND IMPLEMENTATION RESPONSIBILITY Planning CIE Mayor's Office Commission Committee Bud et Section � °' A•r � 6* g* •r O C � D (E - not used) a� F* F* +� � G* G* � � � ,� H a I'� •r � � �fO •r � o K o a L•r +' +' M M � � +' °' N N � � � o �* � °' '— P* P r N � � 1Q � � ZQ* 2Q � a� '� R •r �i--� c a° T* '� U a� d--� U V N C �c� W "C3 C �•i— OO L.L * Policies which relate to the budget as a whole rather than individual projects 35 '�� g 8 g. go $ . � m '.mi °D °° u' .°� °a �°n a r+ b S o S oo °g aN � o 0 00 $'� m n ui � s g M a �+ � °o °o °o °o °o 0 �� � r r N ry N 1f1 aN O 'O O �� � p � p p O o O 1!1 O ul O vf vl O � &v� � r �o �n �n v o `r � � � r N �o "'� a ^' 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 � o 0 0 0 0 0 0 00 o g o 0 0 0 0 0 ��yy 0 0 0 0 0 0 0 ou, o $ o 0 0 0 0 0 C n � O Y� �O O O t�t O m m O �1 � � ` N �n �o ao �o in �n o r n o v .-� v � � .ni �o � � en in v� r ,� � � $ � � a � o a o 0 .�-' � M a v�i O � � O +� � s " � a " � a a a a b b a � � b a b � a a " M M N M � ���' 8' � � 8' $' � � o a a a aa a a $ g � o 0 .'�, a''+ � .r � .� g .a p o g b .� .� °o u, o a $ o �i H � � �I � � C0 a� � M u°, a� d � d � � � � � � . � � � � u U 3 � N O O �' ,� N M L ' M � �.1 � '�0 1, b 9�� � y 0 � i� g � � � � � � � & � � � ; �' " � b � 9 � o� ° ,� � � ,� � � � �-myi �v ,s+ ro D. ai a a � � �y .�i a�+ i � e�L O � qtT U�l Y U x N W aa � ia7 O� Cj � � C G � 0 U +i ' tJ M 1 O O �.1 > 0' +� . a+ > y '� > ,C N z �"e "' wa� a �" � � aa a a • Q � r' $' � �' O +i m .ri w � ~ a'�+ w � ai s+ a O � � m a � ►� o a+ R U a� C X W �1 +�i H O� .�] C � � b b E > N N q ++ � �+ '� '� o' � m �0 A »� +i �t C+ W a+ y we '{ '� '� �C! � � C �C M C�n � � wQ o�a� �O O. �l t�il �.�+ u W � � r y � b .b1 � x ~ D � Vp C yp' .-� al tT � e M � +(y► O � '�O� +� Wy W@ J� �� � .A1 a O C � 1� � M 04 U O � W � 6�a Pi QG U N U' �l � W fq �-7 . h-� J w � � � � o o .� �n o v �n �o n m r+ �o n v �o u* v� �o �o �v n M r+ �o �o n o� �n �n v �n r+ v � � i � � � � � i i i � � � � � i � � Z U Ul �l1 fA U1 tA Vl N N p! 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DEPARTMENT OF PLANNING AND ECONOMIC DEVELOPMENT Division of Plannin�c 298-4151 - anning ommiss�on policy development and review of proposals - capital allocation policies - Three-Year Community Development and Housing Plan - comprehensive plan segments - capital improvement program Divisi�n of Communit Develo ment 298-5586 - e g e actvtes - Three-Year Community Development and Housing Plan - Community Development Program Budget - grants and aids - citizen participation processes - program monitoring and evaluation MAYOR'S OFFICE Budget Section 298-4323 - Annual UCIPBP and schedule - Mayor's budget review and recorr�nendations - CIB Committee and Task Forces - Annual budget and program - Capital improvement fund sources - Capital improvement proposal forms - Technical assistance for developing proposals In addition, the agendas for full City Council meetings and Committee meetings to review, obtain public input or take action on recomnendations for policy revisions or budget recommendations can be obtained from the City Clerk's Office, 298-4231 . 43 . CREDITS PLANNING COMMISSION **Martha Norton, Chairman e Levy *Liz Anderson *David G. McDonell *James Bryan Jean McGinley *Carolyn Cochrane George McMahon Thomas P. Fitzgibbon, Jr. *Jane A. Nelson Sam Grais *Joseph Pangal *Rev. Glen Hanggi Gayle W. Sumrners Sister Alberta Huber Janabelle Taylor David M. Hyduke Adolf T. Tobler Nelsene Karns Robert F. Van Hoef *Steering Comnittee and Special Policy Revi ew Merr�bers **Chairman, Steering Comnittee ADMINISTRATION AND James J. Bellus , Planning Administrator POLICY DIRECTION William Q. Patton, Comnunity Development Administrator Ken Dzugan, Principal Planner AD HOC CITIZENS COMMITTEE John Auge George Hrynewych Merrill Robinson RESEARCH AND PLANNING Tamsen Aichinger, Planner Gregory Blees, Budget Analyst Gregory Haupt, Budget Analyst 44 . GLOSSARY (continued from front cover) J o nt-use ac ty: ac ty operate an or ma nta ned by the c ty wit one or rtare other public or private agencies (for example, Independent School District N625, Ramsey County, Port Authority, United Way, Wilder Foundation.) L everag ng: n genera , use o non-equ ty cap ta to ncrease return to equ y. n mun c pa government, refers to use of municipal capital as an inducement to comnitment of private sector capital in a development pro�ect. Mun c pa cap ta : ap ta mon es appropr ate y ty ounc n t e ap ta mprovement Bu get. Municipal State Aid (MSA): State gasoline tax (principally) dollars returned to a municipality as a grant for use in maintenance and construction/reconstruction of certain state-designated roads (called the "MSA routes"). Po cy: gu e ne or ru e nten e to eterm ne or a n eterm n ng ec s ons. Private sector: The non-governmental portion of the econo�y. "Private sector" and "public sector" are the two general divisions of all economic activity and decision-making. eturn on nvestmen e ers to t e pro t on an nvestment. or examp e, t e return on nvestment R �in a standard savings account is about 5%. Revenue bond: A certificate of indebtedness whose debt service is.only from revenues of the facility constructed with the bond funds. Unlike general obligation bonds (see above), revenue bonds cannot legally become a liability of the property tax base. T ax a atement: e act or pract ce o m t ng t e uture amount o rea estate tax to e pa on a property. Occasionally used by municipal legislatures as an tncentive for development characterized by some public benefit. Three-Year Comnunity Development Plan: A plan required by HUD as part of St. Paul's Year V (1979) Cortmunity Development Block 6rant Applicatlon. The plan must identify St. Paul's major comnunity development needs and specify St. Paul's strategy for meeting them with CD86 and other funds over the period 1979 through 1981. UB : ee n e ap ta mprovement rogram an u get rocess. Unified Capitat Improvement Program and Budget Process (UCIPBP): The formal process used by the City of St. Paul annually to arrive at a Capitat Improvement Budget and a Capital Improvement Program.