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95-3331 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 ORI��,��qL CITY Presented By Referred To Committee: Date CAPITAL ALLOCATION POLICY WIIEREAS, the Council of the City of Saint Paul is responsible for providing policy guidance in the annual prepazation of the Capital Improvement Budget; and WHEREAS, the Planning Commission has reviewed the policies adopted as part of the 1992-1996 Saint Paul Capital Allocation Policy, and has revised them; and WHEREAS, the Planning Commission released the revised Capital Allocation Policy for public review and held a public hearing on the document on 6�i��z'`�, and 3�v...,Y��a \ \g�5 WI3EREAS, the Planning Commission approves and recommends adoption of the policies entitled Saint Paul Canital Allocation Policy: '^^��o for use in the Unified Capital Improvement Program and Budget Process; �996-acoo NOW, THEREFORE, BE TT RESOLVED, that the Council of the City of Saint Paul hereby adopts the Saint Paul Capital Allocation Policy: -'�-�°"^ ,^° for use in the Unified Capital Improvement Proa am and Budget Process; and �99G-ao�a BE IT FURTHER RESOLVED, that the City Council directs transmittal to the Neighborhood Contact List, the Long Range Capital Improvement Budget Committee and its task forces, the Saint Paul Planning Commission, and appropriate City staff persons. Requested by Department of: �' . . ��- �• - �� / I�`-%��� � Form Approved by City Attorney By: n... By: A t�'\C � � � � council Fi�e # �I� 333 �t���j�s � Green Sheet # RESOLUTION �F SAINT PAUL, MINNESOTA o ��' Adopti nn l'art i fi PA hv (`rnmri l CanraYarv �j � 33 ,3 DEPApTMENT/pPFICFJCOUNGL DATE INITIATED N_� 312 4 4 Planning and Economic Development 8 Feb. 95 (aREEN $�"�EET __ _ _ CANTACf PER$ON & PHONE � OEPARiMENT DIRECfOR � GITY COUNqL �NfTiAVDATE Patricia James 66639 ass�cx mpRypT7pq CRVCLEpK MUST BE ON CAUNqL AGENDA BY (DA'f� NUYBEB FON � BUDGEf DIRECTOR O FIN. & MGT. SERVICES DIR. ROU7ING 8 Mdt'Ch 1995 °PDE" /MYOR(ORASSISTANn �]Ken Ford TOTAL # OF SI6NATUHE PAGES 1 (CLIP ALL LOCATIONS FOR SIGNATURE) d Y'l Cl d ames AC'fION flEQUESTED: Adopt the 1496-20�0 Capital Allocation Policy. = • RECOMMENDATIONS: Approve (A) or Rejeet (R� pERSONAL SERViCE CONTRACTS MUST AtiSWER TXE FOLLOWING �UESTIONS: A PLANNITIG COMMISSIOti _ CNIt SEflVICE COMMiSSION �� ���s pEr50Nfl[[f1 eVCt worked ullder a�ntrHCt for tllls d6p3ffineRt? � � _ CIB COMMfTiEE _ YES NO _ STAFF Z. Has Nis personHirm ever been a city employee? — YES NO _ DISTRIC7 CpURT _ 3. iJOes ihi5 personftirm po5se55 a skilf not normafl y possessed by atry current city employee4 SUPPORTS WHIGH COUNCIL OBJECTIVE? YES NO p � � Expiatn all yes answers on aeparate sheet and atteeh to green ahaet INITIATING PROBLEM. ISSUE, OPPORNNITV (Who. Whet, When, Where. Why): City Council is responsible for providing policy guidance in canital budgeting. Existing policy must be reviewed and uodated every two years. A�VANTAGESIFAPPROVED� Witl provide guidance to citizens, city departments, the CIB Committee, and the City Council in preparing, evaluating, and adopting proposals for the city's capital budget. DISADVANTAGES IF APPRWED: ��� �������� � F RECF���� None. �a�aa 3 �a`�%-a" ��1R � � ���� �'EB � 3 19�5 ClT� �� € �c��E� DISADVANTAGES IF NOTAPPROVED: Lack of guidance to citizens, city departments, the CIB Committee, and the City Council in preparing, evaluating, and adopting oroposals for the city's canital improvement budget. TOTAL AMOUNT OF TRANSACTION $ COST/REVENUE BUDGETED (CIqCLE ONE) VES NO FUNDIHC. SOURCE ACTIVI7Y NUMBER FINANCIAL INFORMATION' (EXPLAIN) -At�►��NnM �"�'` y�a��9S- o}� ALTERNAT`IVE LANGUAGE FOR CIB COMMITTEE RECOMMENDATION FOR A CITYWIDE MAJOR CAPITAL MAINTENANCE PROGRAM. For Ciry Council Meeting April 26, 1995. Item # 25 5 s `3 33 � P-6 ��ix� lt��jjar Capital Maintenance An objective of the city is to protect its capital investment through reb lar, scheduled preventive maintenance of its capital facilities, financed through the operating budget. However, because preventive maintenance activities have not been fully fmanced in past years, some capital facilities require e��ae�� �a�cir capital maintenance. To address such �a� �ajs�r capital needs, the city will consider budgeting up to m2cn nnn :.. �nnn �....a tn�c � .. . .:_. .�... . . _ . .. . , $I,�tl4,(lI7Q p�x_ �ea� i� -���6 �zut :��7 for e3�ttae�xa� �jzi� capitai maintenance. Adequately fmanced programs for regular preventive maintenance would, in time, reduce the need for a� ei� �t��uz capital maintenance program. It is hoped that preventive maintenance '-�—�'�ni�a� e��wIll become a high city priority. In the long run, deferred maintenance is not a cost-effective way of managing scarce financial resources. €�c��t3F I�j�x capital maintenance is defined as the repair, replacement, renovation, remodeling and/or retrofitting of the structural parts and/or service system components of a building, and the man-made components of an unproved site. 1. Structural parts include footings and foundations; beams, joists, columns; load bearing walls, exterior walls and facade (excluding glass); stairs, floors, decks, ramps, ceilings; rooPs and roofing. 2. Service system components include piumbing, electrical, communications, heating, ventilating, air conditioning, security systems and elevators; utility mains. 3. Site components include retaining walls, lighting, stairs, ramps, sidewalks, railings, fencing, drainage structures, and erosion control. Priority consideration will be given to those site components whose condition affects building components identified above. Except in cases of emergency, work projects financed through the e�� tk[�jcit' capital maintenance program must have costs that exceed $3,000 and are less than Any work financed through the e�� ziia;�'t�x capital maintenance program must have a life expectancy that exceeds the terms of the�bonds used to fmance it, or must be fmanced with non-bonded fund sources. Ongoing maintenance and routine preventive care and upkeep of facilities shall be financed through the city's operating budget. $� Smaller work projects shall normally be financed through the city's operating budgef. Larger work projects shall normally be financed through the regular CIB process. Guidelines � develo ed for administer' the e3 p uig �3= ����r� capital maintenance program �iII;_ " �: a�"g��i_. T,,o ,...:,;o;:::;;:: �,....,,:.. _.:.: �._..... _::.. �', 1. The project must �`�li�i�Te a� conform to the defuution of e�ae� ��az capital maintenance. 2. The faciliry must be City owned, or leased to the Ciry on a long-term basis. At least ten years mt�st remain on the lease and the lease must require the City to be responsible for capital maintenance. 3. The project must have a useful life expectancy greater than 10 years. 4. Any properry with repairs financed �y will not be in jeopardy of closing within the next five years. SA[NT PAUL � AAllll CITY OF SAINT PAUL Norm Coleman, Mayor OFFICE OF TF� MAYOit �� � � � BUDGET SECIION Jaseph Reid, Budget Direttor ��� 3,3 y �� t J 240 Ciry Ha(1 Te(ephone: (612) 266-8543 IS West Ke!loggBoulevard Facsimile: (6/2) 266-8531 SaintPaul, Minnesota 55l02-1631 C��'�.e�..+� �-+�� �-�a P�a-� � �t�a`y°1s �� 1VIEMORANDUM TO: Council President David Thune Councilmember Jerry Blakey Councilmember Mazie Grimm Counciimember Dino Guerin Councilmember Mike Harris �Councilmember Roberta Megard Councilmember Janice Rettman I �� DATE: Bruca Engelbrekt, Budget Office April 18, 1995 /� RE: CIB Committee Recommended revisions to the Capital Allocation Policy Document Attacl�ed are proposed modifications to the draft "Saint Paul Capital Allocation Policy (1996-2000)" currently before the City Council. The CIB Committee approved the modifications at their 3anuary 12th meeting and recommended that the changes be incorporated into the final document to be approved by the City Council. The modifications relate to project policy P-6, entitled "Extraordinary Capital Maintenance," located on pages 16 and 17 of the draft document. The recommended changes are minor in nature and do not significantly alter the language in the current draft. The specific changes are provided in the attachment to thas memorandum, along with a copy of the current Capital Maintenance Program guidelines. Please consider incorporating these proposed modifications into the finai Capital Allocation Policy document. cc: Mark Shields, Mayor's Office Pamela Wheelock, Mayor s Office 3oe Reid, Budget Office Thomas Gmeinder, CIB Committee MayotsOR<c-BudgttSttuon F.\GSERSEYGEL\WPFILES\CAPMAMMEM CAPTTAL NIATNTENANCE PROGRAM STATEMENT OF PURPOSE �5 _�3� ''� The purpose of th.is proa am is to provide for Capital Maintenance of City � ovmed facilities in an efficient and orderly manner, in accordance wich the definition and guidelines included herein. EXZR�ORD iN.4RY CAPITAL M.�L�I"I E�tANCE a) DEFIti`ITIO� b) ELIGIBILI7Y GUIDELINES c) EvIERGE\`CI�S d) PROJEGT SELECTIO�T PROCESS e) . PROJECT L.VIPLEMENI'ATIO�t . a) �� Definition Capital Allocation Policy P4, revised ser�zce sys em p a of an improved site. Extraordinary Capital Main[enance is the repair, replacement, renovation, remodelino, and/or retro;itting of and for the stnictural parts and/or t com onents of a buildin�', and the man-made components (1) Structural oarts include footinos and foundations; beams, joists, columns; load bearing wa11s; exterior w•alls and faca.de (excludino glass); stairs, floors, dec�;s, ramps, ceilinas; roofs and roofinJ. (2) Service svstems comoonents include plumbino, electrical, commun?cations, heatin�, venti?atin�, air conditionina, security systems and elevztors; utility mains. (3) Site comaonents includ� retaininJ «�alls, liohtino, stairs, ram?s, side�valU, rzilinos, fencina, drainaae structures, and erosion control. Priority co:uideration w be o �en to those site conponents «'hose condition afiects buildin� components identified above. b) Eli� bility Guidelines (must meet al1) (1) Project must con,`orm to Definition (2) F'acitity must be City ow or leas2d to City on lon? term basis. At least ten years must remain on the lease and the lease must require the City to be respovible fo; capitat maintenance. (3) Project must have useful life expectancy greater tnan 10 years• � (4) Any property «1�h repairs financed �4z11 not be in jeopardy of closin� w-ichin the n°�� five years. -1- C�?TTAI MAINTENANCE PROGRAM c} Emergencies ' • From each (annual) appropriation an_amount not greater fhan 10% will ' be designated for emergency use at Project Manaaers' discretion. Expenditures will be subjact to elia bility guidelines but not subject to selection process. The exact_ amount to be plzced in emergency funr3 will be established by the selection committee. Any unused monies will be rolled over to the next yeats budget: All emergency expenditures will be subject to the budoet directo�s approval. d) Project �election Process �>, c=: e) (1) Selection Committee Membecs (1.I) Executive Secretary of the CIB Corrunittee. (Budget Ofiice) (1 ?) City Architect's Office representative (1.3) A member of the Saint Paul Long-Rznoe Capi[al Improvement Budoet Committee appointed by the Chairperson of that Cor�raittee. (2) Selection Committee to meet quarerly (or less frequeatiy if seleccion can be made with few•er meetinas) wzth proposers. Project praposals to be submitted, in triplicate, not later tnan two w•eel;s prior to committee meetino, oa the form provide�. Project Implementation (1) Project z�rlana?e: responsible for in�plementing each aoproved project in accordance « City policies and procedures, i.e., purchasina, insurance require.�en�s, etc. (2) Project tifanaaer will insure no City staff costs other than desio and inspection services zre_charged to the project. (3) Project �Sanoer responsible for establishing and maintainin� file on each project, including: 2.1 Project proposal form - approced 2? project Ioo - date aopro�ed d 2.3 date bid (or ordere ) date stz�ed d2te completed Contract file, includina requisition, bid documents, bid award, contract, chan�e orders, in��oices, etc. � � L� -�- }-� t4 rtY�i s `�'S - 3 3� AN►�r�nt��►vr � 4�19 �qS Three Harris Amendments on page 31 and page 33 F-3 Bond Financing Guidelines for the use of bond financing are as follows: � - �4r�n� �►�d �n.� �v T \ ok 1. State law limits the sale of Capital Improvement Bonds to $I.7;�f#4;�£�6�:i�t'=1?��5`:;�i� �;1.����3(3��1t1��;in�`�;99�. However, " ilie Joint Debt Advisory Committee eni�s limiting CIB bonding to $13,650,000 in , , in order to stabilize the city's annual debt service cost. � � t 2. The city will issue special street assessment revenue bonds as required to finance the assessable portion of street paving. Debt service on the bonds will be paid by benefitted properiy oaners. The exact amount of bonding will be deternilned by the specific projects scheduled and will be contingent on the amount of federal, state and city construction money available for se�i�er sepazation. 3. The city may issue Municipal State Aid revenue bonds in order to finance Wamer and Shepud Road reconshuction if a financing plan for completion of these roads is approved by the Mayor and City Council. 4. The use of revenue bonds to fmance public improvement commitments for hou'siii�;:8i33 economic development projects is preferred over other financing sources. The city may consider using tax increment, taxable bonds, or tax-exempt revenue bonds for the following projects: a. Riverfront development; S�r'.�c.� (� b.��arkingproposals; � c. Other project-specific public redevelopment costs that leverage significant private, state or federal inveshnent;;i�t; d<ticTii�ve`iileniif�cl�' "blic'. `� iis�`i�ti'�cti���'ari�1:"rlAriiies. .............. �.....:...,..: .:.: .....:.. ..I??!... ..... F?�73............J_. , . �: .. . .. ......,. P Such bond issues may be general obligation bonds if there is dedicated revenue sufficient to cover the interest and principal payments and ifthere is additional financing other than property tax revenues to secure the payment of debt service. �0 F-4 Clarifies and updates policy. Tax Increment Financing Guidelines for the use of tas increment financing aze as follows: � i. Revenue projections by consultant: revenue projections prepared by City staff and bond underwriters for all tax increment proposals should be analyzed by the City's fiscal adviser in s= � R i 0 ROBERTA MEGARD Couac�7member CITY OF SAZNT PAUL OFFICE OF T`HE CITY COUNCIL MEMORANDUIVI DATE: TO: FROM: SUBJECT: April 18, 1995 Councilmembers Roberta Megard �/�'`� Capital Allocation Policy qS 333 �/ M�� ANN D. CIESLAK Legisiative Aitle pE - 1't�f`t�e.�rt�cr'�S y�\��°�5 I suggest the following amendments to the Capital Ailocarion Policy: (My changes are in bold print) . page 35: . , ,�.,,,,.,...v...., K,.;�„ 4. Via resolurion, if ��fy'<t�%���it�;;"�����z,,�iz the City Council ims ��.�� identifie K ro ects reviouslv reviewed. ranked and awaiting fundinL or pro�ects O �' P J P which respond to an urgent health or safety hazard, the CIB Committee would also ��,�'�co si er ese pro�ects as part of the reallocahon recommendations of the remaining �(.c•�..•' dollars. , �/ P page 57: Regional Parks ��-Complete renovarion of Como Pazk, Zoo and Conservato ,' r�� 4 -1 C.��w`�.`'J �� CITY HALL THIRD FLOOR SAINT PAUL, MINNESOTA 55102 612/266-8640 s�<e Prinred on Aery<Ied Papex �� �,q,� �-u -� . _. . .� •. P-8. Residential street paving Paqe i8 �s-,� 3.� � a� Residential street paving projects will only be financed in conjunction with the Residential Street Paving program, which should be finished as soon as possible (in 2008 to 2010). The areas to be paved will be reviewed and prioritized through the Capital Improvement Budget Committee, with annual adjustments. An incremental shift in program financing from Capital Improvement Bonds to street maintenance assessments, is recommended to permit tax-exempt properties in city to share in the cost of program. Street lighting will be installed on Collector and Arterial streets in conjunction with street reconstruction or when specifically identified and funded as a safety improvement project external to a street reconstruction project ADD Nfi'W AMENDMENT: ��` �j E-5 District Plans and other Area Plans "'" Page 23 �\ In evaluating capital projects, preferences shall be granted to projects that are integral to the fulfillment of objectives in the appropriate comprehensive plan element, district plans, � small area plans, or other City C\ ncil/HRA approved plans. � —7 �� rojects which conflict with District Plans, small area plans, ``t` � Council r HRA approved plans will be penalized. P .�� AMENDMENT: Delete'the words "HRA". �r s�► e v c or ►we ' E-7 HOIISING: NOTE: NEW LANGIIAGE: Paqe 24 � �a�� PROPOSED LANGUAGE: The city-wide home ownership goal will be identified in the Housing Action plan, ado�ted annually by the City Council AMENDMENT: Delete the proposed amendment REINSTATE TI3E ORIGINAL LANGUAGE as followed: "The city-wide home ownership goal will be 70�. The rental housing goal will be 30%." O � � � 9S'- 333 CFS8 Housing and Economic Development Proposed language: Page 61 ��..r O ' � NOTE: As directed by the City Council, during the 1993 Budget Hearings, HRA and PED will develop housing strategies and housing proqrams that will create long term neighborhood stability. The city-wide home ownership goal will be identified in the Housina Act?on Plan, adopted annuall� by the City Counc�l. AMENDMENT: Delete the proposed amendment REINSTATE THE ORIGINAL LANGUAGE "The city-wide housing goal projects that Goals." home ownership goal will be 70�. The rental will be 30�. Preference will be given to support these City Council adopted Housing CF Street Lighting Paqe 52 c.,a �/ � . PLAIv'NNG COM\(ISSION David 3fcDonelL Chmr ��_ � � CI� �� c J�l� �A� 110l1 CiN Hal! Annex A�ornr Coleman, A9ayor 25 IVes� Four�h Street Telepha�e. 61?-?G6-656� Samt Paul, 7✓I.�" 5.510? Facsimrie. 61?-128-33/S February 8, 1995 The Honorable Norm Coleman Mayor of the City of Saint Paul 347 City Hall 15 West Kellogg Boulevard Saint Paul, Minnesota 55102 RE: 1996-2000 Capita] Allocation Poli�y Dear Mayor Coleman: I am pleased to transmit to you the I996-20D0 Capital Allocation Policy (CAP), which has been reviewed, revised, and adopted by the Planning Commission on January 13, 1945. The Department of Planning and Economic Development staff concurs with a(I revisions recommended by the Plannina Commission. Upon adoption by the City Council, these documents become part of the City's Comprehensive Plan and are used in the Unified Capital Improvement Programming and Bud�eting Process. I urge you to review the CAP and recommend its adoption by the C:ry Counci] as soon as possible to help the District Councils, City departments, and CIB Committee with the 1995 capital budget process now beginning. In the past, these documents have been referred to the CounciPs Finance Committee. Most of the changes to the revised CAP involve updating language. New policies and major revisions are described below: Energy Conservation: In accordance with the Ciry's Environmental-Economic Partnership Project Report, and City Council Resolution 92-1101, an ener�y conservation goal (G-4) and policy (P-14) have been added. Extraordinary Capital Maintenance: The maximum amount to be considered for the 1996-1997 budget has been raised to $1 million per yeaz to reflect the historic lack of preventive maintenance. (P Residenfial Street Paving and Lighring: A revised policy in accordance-wiTh City Council direction has been drafted. A companion poiicy re]ating to street lighting has been added. (P-8, P-9) Raialeader Aisconnection: In order to meet the requirements of Saint Paul's pe;mit to discharge into the Nlississippi River, policy P-10 recommends completion of rainleader disconnection for city Mayor Coleman Page Two February 8, 1995 facilities in tre next two years. Gender Accammodation: A new pcIicy (P-15) authorizes development oi faci?ities to acconcnodate both genders, where needed. Levet of Service: The Planning Commission recommends a change to poli�y E-i that wouid :>ice to second priority ezpanding services to a basic level and move to third prioriry mair.taining existir7g basic services. Testimony at the public hearing perscaded the Cornm+ssion that i: wouId be better for maintainin� Tax base, home ownership, and qualiYy of life levels ia the city to have ali neighborhoods receiviag tIie city's identified basic (evel of services. The Planning Commission recommeads removing the chapter on future direc.ieas for the capital budgeting process, because it saems more appropriate to address the issues titis chapter raises in a more acTion-based vehicte. The studies recommeaded in this chapter are impo: for the Pature relPvance and success of the capital budget process, and we recommend that t��:� City Council, by resolution, call for their comptetion. Fina(ly, the Planning Commission notes tnat the Police Department has not bF�n able to develop a Capital Fanction Strategy. Because this s�ategy identifies the basic tevei of service to be provided by the deparhnent, we offer our services to the Police Department to develop this strategy, We balieve that these and the other changes will help the Capital AIlocation Policy be a more useful document for the upcoming bi�dget process. Very truly yours, /���'�`�-� � David G. McDonell Chair, SainT Paul Planning Commission cc: Larry Buegler, PED Ken Ford, PED Allen Lovejoy, PED Patricia James, PED g� 333 � city of saint paul planning commission resolution file number 95-04 �te � f n �arv 13 . 1995 WHEREAS, the Plauuing Commission is charged with responsibiliTy for development and review of policy to guide the Unified Capital Improvement Program and Budget Process (UCIPBP); and WHEREAS, the Planning Commission has reviewed the policies adopted as part of the 1994- 1998 Saint Paul Capital AlZocation Policy and has revised them; and WIIEREAS, the Planning Commission released the revised Capital Attocation Policy, 1996- 2000 for public review and held a public hearing on the document on December 2, 1994, and WI-IEREAS, the studies recommended in the sec6on, "Future Directions for the Capital Improvement Budget Process" of the previous Policy, still need to be done; and WHEREAS, discussions held during the period of public review have resulted in additional revisions to the Capital Allocation Policy; NOW, THEREFORE, BE IT RESOLVED, that the Plauuing Comnnission hereby approves and adopts the policies entitled Saint Paul Capital Allocation Policy: 1994-1998, as revised; and $E IT FURTHER RESOLVED, that the Mayor and Council direct an appropriate agency (Council Investigation and Reseazch, Budget Office, CIB Committee, or Planning Comxnission) to analyze past PCPs, recommended capitai budgets, and actual capital expenditures using priority categories recommended in the 1994-1998 CAP and also to analyze past interaction between the capital and operating budgets; and BE IT FURTF3ER RESOLVED, that the Mayor and Council direct an appropriate city agency to examine whether past and current capital priorities aze appropriately addressing expected future needs in Saint Paul; and moved by Treichel seconded by Maddox in favor Unanimous against �s-3 33 BE IT FURTHER RESOLVED, that the Plauning Commission supports the efforts of the Information Systems Task Force in recommending an appropriate Geographic Information System for the City of Saint Paul; and BE IT FINALLY RESOLVED, that copies of the document be transmitted to the Mayor and City Council of the City of Saint Paul for review and adoption. � �� � � � � � � � � � � SAINT PAUL CAPTTAL ALLOCATION POLICY 1996-2000 PROPOSED REVISIONS AND PUBLIC CONIlvIENT DRAFT FOR CITY COUNCIL REVIEW I Adopted by the Saint Paul Planning Commission .7anuary 13, 1995 � Amended and Adopted by the Saint Paul City Council (dare to be added) � � � CITY OF SAINT PAUL Department of Planning and Economic Devetopment Norm Coleman, Mayor l �S -333 E� � � � � � � � �5 � The City of Saint Paul does not discriminate on the basis of disability, race, sezc, � sexual or affectional ocientation, age, color, creed, national origin or ancesriy, mazital status, religion, veteran status, or status with regazd to public assistance in the admission or access to, or treatment or employment in, its programs or activities. � � ,�� C � � � � � � � TABLE OF CONTENTS � 1.0 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 PURPOSE OF SAINT PAUL'S CAPITAL IMPROVEMENT BUDGETING PROCESS ............................. � 1.2 STAGES OF SAINT PAUL'S CAPITAL IMPROVEMENT BUDGETING PROCESS ............................. 13 COMPONENTS OF Tf�, CAPITAL ALLOCATION POLICY ... 1.4 WHY HAVE A POLICY FOR CAPITAL ALLOCATION? ..... � 1S HOW IS TF� CAPITAL ALLOCATION POLICY USED? ..... 1.6 ORGANIZATION OF THIS DOCUMENT . . . . . . . . . . . . . . . . . ,� � � � � � � �� � � � � � � 2.0 STRATEGIC GOALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 WHAT ARE STRATEGIC GOALS? . . . . . . . . . . . . . . . . . . . . . 2.2 WHY HAVE STRATEGIC GOALS? . . . . . . . . . . . . . . . . . . . . . 2.3.0 TYPES OF STRATEGIC GOALS . . . . . . . . . . . . . . . . . . . . . . . 23.1 PLANNING GOALS ................................ G-I Basic Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G-2 Neighborhood Management and Housing . . . . . . . . . . . . . . . G-3 Businessand Jobs ................................. G-4 Energy Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.2 FISCAL GOALS .................................. G-5 FiscalIntegrity ................................... 3.0 POLICIES FOR CAPTTAL ALLOCATION . . . . . . . . . . . . . . . . . . . . . . 3.1 PROJECT POLICIES ............................... P-1 Plans and Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P-2 New Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P -3 Skyways ...................................... P-4 Handicapped Accessibility . . . . . . . . . . . . . . . . . . . . . . . . P-5 Program Allocations ............................. P-6 Extraordinary Capital Maintenance . . . . . . . . . . . . . . . . . P-7 Redevelopment Activities . . . . . . . . . . . . . . . . . . . . . . . . . P-8 Residential Street Paving . . . . . . . . . . . . . . . . . . . . . . . . . P-9 Street Lighting Program . . . . . . . . . . . . . . . . . . . . . . . ... P-10 Rain I.eader Disconnection in City Faci{ities . . . . . . . . . . . P-I 1 Finaucing for Preliminary Studies . . . . . . . . . . . . . . . . . . . P-12 Duplication of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . P-13 Assessment Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... .:..... �?��I�: i:';`;Eri�y'��ri�s�rsx�iftin . . . . . . . . . . . . . . . . . . . . . . . . . . . . �' 1S . �egd�r::�+��c�adahnn.s�'��.y.��c��t�€s . . . . . . . . . . . . . . 3.2 EVALUATION POLICIES . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.21 PLANNING EVALUATION POLICIES . . . . . . . . . . . . . . . . . E-1 Level of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-2 Program for Capital Improvements (PCn . . . . . . . . . . . . . E-3 Departmental Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . ,. : ,::;. i:�'s-5 System Integrity . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,..,:,.. ��:� �-6 District Plans and 4lf�t�' S�s1! Area Plans . . . . . . . . . ..:..., E-6 � Aistrict Councii Ranking . . . . . . . . . . . . . . . . . . . . . . E:=?<�-4 Housing .................................. iii 1 2 6 6 6 7 8 8 8 9 9 10 10 10 il 11 il 13 13 13 13 14 14 15 16 17 18 18 19 19 19 19 20 20 21 21 21 22 22 23 23 23 24 0�-333 q5-333 �=� �B Historic Preservation . . . . . . . . . . . . . . . . . . . . . . . . . � ::9 � Job CreaHon . . , .,:..>. �';kQ E-}� Business Investment . . . . . . . . . . . . . . . . . . . . . . . . . ...: E-11 Environment .................................. 3.22 FISCAL EVALUATION POLICIES . . . . . . . . . . . . . . . . . . . . E-12 Impact on Operating Bndget . . . . . . . . . . . . . . . . . . . . . . E-13 Impact on City Revenues . . . . . . . . . . . . . . . . . . . . . . . . . E-14 Grants ....................................... E-15 Private Investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-16 Acquisition ................................... E-17 Joint Use / Consolidation of Facilities . . . . . . . . . . . . . . . . E-18 Continuation Projecis . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-19 Programming and Phasing . . . . . . . . . . . . . . . . . . . . . . . . E -20 Use ......................................... �21 Fiscat Impact Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 FINANCIAL POLICIES ............................. F-1 Financing Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-2 �����.��.� ...................... ................. .... F-3 Bond Financing ................................ F-4 Tax Increment Financing . . . . . . . . . . . . . . . . . . . . . . . . . F-5 HI2A GeueralFund ............................. F-6 HRA Development Fund . . . . . . . . . . . . . . . . . . . . . . . . . F-7 Re6abilitation Loan Funds . . . . . . . . . . . . . . . . . . . . . . . . F-8 Sale/Leasebaek . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-9 Tax Abatement ................................ F-10 Priorities and Pmcedures for Disbursing Capital Improvement Project Financiug . . . . . . . . . . . . . . . . . . . . F-11 Reporting, Review and Reappropriation Requirements for Capital Impmvement Projects . . . . . . . . . . . . . . . . . . . . . F-12 Project Phasing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-13 Out-of-Cycle Appropriatioas for New Pmjects . . . . . . . . . F-14 Increased Costs for Projects . . . . . . . . . . . . . . . . . . . . . . . F-15 Multi-Year Projection of Capital Financing Sources ..... ��;�:>"��i�a€e:�ti�ic ��c�ities;�at�iaiei#}*:�a: . . . . . . . . 4.0 GUIDELINES FOR CAPTTAL PROGRAM11�1VG . . . . . . . . . . . . . . . . . PCI-1 Conformance to Project Policies . . . . . . . . . . . . . . . . . . . . . . PCI-2 Years ' O°� "�� ���-�?�# of the ' nO�� ��#�� PCI .. ,.,..� ::: ....::..... .. .....:.......:..:::.: PCI-3 Years 1 °°�e 1�����lY��� of the PCL• Tentative � :..::.:.. : ...� Commitments ................................... PCI-4 Years 1°° ��:°� 199�2#� of the PCI: Programming of .::::.;.:;.,:.»., Pmjects Other than Tentative Commitments . . . . . . . . . . . . . PCI-5 Years '^°�� �&���11J of the PCI: Match Between Programmed Projects and �Expected Available Financing .... PCT-6 Years 1O �rr�o i�i ��8��� of the PCI: Distribution of Capital Improvement Bond and Community DeveIopmenf Block Grant Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PCI-7 Years ""'�`�o ��;��QQ of t6e PCI: Unknown Financing ..: .: ....: . ... : .:.: .: Sourees........................................ 24 24 25 25 25 25 26 26 26 27 28 28 28 29 29 29 29 30 31 32 32 32 33 33 33 33 34 35 35 35 36 36 37 37 37 37 37 37 38 39 iv i � � � � � � � ,� � ,� � � � � � � � � PCI-g 1'ears '^^�°''�-�� ��j�=;�i� of the PCI: Distributioa of ......:.:: ...,.... .. Eapected Available Financing . . . . . . . . . . . . . . . . . . . . . . . . 39 PCI-9 Yeais , ^o��^'�� ���=�Ut��� of the PCI: Unknown :: ...:.,..,:. :..... Financing Sonrces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 5.0 DEFIlVITIONS ........................................... 40 APPENDIX A: CITY OF SAINT PAUL NIISSION STATEMENT ....... 43 APPENDIX B: PLANS AND POLICIES RELEVANT FOR CAPTTAL BUDGETING .................................. 44 APPENDIX C: OVERALL BUDGET GOALS . . . . . . . . . . . . . . . . . . . . . 46 APPENDIX D: CAPTTAL FUNCTION STRATEGIES . . . . . . . . . . . . . . . 49 APPENDIX E: PUBLIC IMPROVEMENT ASSESSMENT POLICY ..... 67 v qJ - 333 � �� � � � � � � � � � �' � � ,�; � � � NOTE ON TEXT MARKINGS: Major changes are identified with s�ee� of deleted language and t�[����€ii�;s�£�%�� Changes made to update the years covered and to correct grammar are not mazked. Discussion for the proposed revisions and comments received about a policy are indicated with the � symbol. lA INTRODUCTION 1.1 PURPOSE O�' SAIN'T PAUL'S CAPTTAL IMPROVEMENT Bi3DGETING PROCESS The purpose of Saint Paul's capital improvement budgeting process is to plan, program and finance capital improvements in a way that is both fiscally responsible and accountable to the citizens of the city. As such, this process contributes to the fulfillment of Saint Paul's mission, expressed in a statement adopted by the City Council (see Appendix A). To ensure that the purpose of the process is fulfilled, two citizen advisory bodies work to develop a recommended capital improvement budget: 1) Planning Commission. An important responsibility of the Planning Commission is to determine what kinds of capital systems aze needed to mvcimize Saint Paul's potential as a place to live and do business. The city's Comprehensive Plan, developed by the Planning Commission, provides considerable guidance concerning desirable future capital investment for Saint Paul. In the capital improvement budgeting process, the Planning Commission translates the Comprehensive Plan into focused policies to guide the city's choice and timing of capital improvement projects. Appendix B is a list of the elements of Saint PauPs Comprehensive Plan. 2) Long-Rauge Capital Improvement Budget Committee (CIB Committee). Along with its task forces, this citizen's committee evaluates and prioritizes capital improvement budget proposals. The priorities assigned by the CIB Committee are the basis for the capitai improvement budget that the Mayor recommends to the CiTy Council for it to adopt. 1 q5 - 333 In addition to these advisory bodies, Saint Paul's 17 Citizen Participation Districts provide important input into the capitai improvement budgeting process. The CIB Committee and task forces have one representative from each Citizen Participation District. Moreover, District Council ratings are a criterion for evaluating and prioritizing proposed projects. �5 � Brief explanation of relationship between sates taY funds and the regutar CIB process. 1.2 STAGES OF SAINT PAUL'S CAPTTAL IMPROVEMENT BUDGETING PROCESS Saint PauPs capital improvement budgeting process has three stages: 1) Capital Allocation Policy (CAP). The CAP is a set of policy statements to guide capital improvement bvdget proposaIs and their evaluation. The CAP is related both to the city's Comprehensive Plan and to the city's Budget Goals and Policies. The Comprehensive Plan idenfifies tke systems and development patterns needed to maximize the city's potential as a place to live and work; the Badget Goals and Policies outline principles of financia2 prudence to prioritize city service delivery activities. (See Appendix C for a summary of Saint PauPs 1991 Budget Goals and Policies.) By articulating city objectives for capital investment, the CAP functions as a bridge beriveen the Comprehensive Plan and the Budget Goals and Policies. The Planning Commission prepares the CAP in consultation with the Mayor's Office and ciTy departments. Following a period of public review, the Planning Commission adopts the CAP and transmits iY to the Mayor who reviews ttte CAP and transmits it to the CiTy Council for their approvaL The adopted CAP has a five-yeaz time horizon but is revised every two years, prior to the adoption of a capital improvement budget. 2) Capital Improvement Budget. City departments, District Councils and other parties submit proposals for capital projects. These proposals aze evaluated and prioritized by the Saint Paul Long-Range Capital Improvement Budget Committee {CIB Committee) and its task forces. The primary evaluative too] of the CIB Committee is a rating sheet based on the adopted CAP as well as other sources. The CIB Committee and task forces aze composed of representafives of Saint PauPs 17 Citizen Participation Districts. Based on the recommendations of the CIB Committee, the City Council adopts an annual capital budget and a five-yeaz Tentative Program of Commitments, which estimates future appropriations needed to complete iniriated projects. 3) Program for Capital Improvements (PCn. The ten-year PCI is adopted by the Planning Commission, reviewed by the Mayor and approved by the CiTy Council shortly after the capital budget is adopted. The PCI is a list of intended future capital improvements that organizes important projects according to yeazs of fund expenditure, estimated cost and expected fmancing source. The PCI also prioritizes projects and categorizes them within one of 11 capital functions: Streets, Street Lighting, Traffic Engineering, Bridges, Sewers, Pazks and Open Spaces, Libraries, Housing and Economic Development, Police, Fire and Safety, and Special Facility Support. The first two years of the PCI consist of projects already financed by the capital 2 � � � � �5 -333 budget. Yeazs 3-5 include phases of projects that need to be financed to continue commihnents made in the capital budget, and other high-priority projects that aze affordable relative to expected available fmancing. Years 6-10 include projects that city departments have identified as being important but are not yet covered by financing commitments. The intent of this format is to match years 1-5 closely to actual or anticipated finances; it is less necessary for projects in years 6-10 to match expected financing levels. However, projects in years 6-10 aze categorized according to theu ]evel of priority. � The PCI is prepared by the Planning Commissian in consultation with the Mayor's Office and with city departrnents. The PCI becomes part of the Comprehensive Plan upon its adoption. � � � � ,� �' � � � � � Although three stages in the capital improvement budgeting process have been identified, the process is actually a cycle in which activities in each stage rely on activities in preceding stages. For example, the CAP requires that proposed projects be evaluated concerning their conformance with the most recent PCL Thus, a]though the CAP is the foundation, it also draws from other components of the process. Figure I illush�ates the stages of the process. Figure 2 e�ibits the roles played by various parties in the capital budgeting process. � q5 - 333 r�cuxE i SAINT PAUL'S CAPTTAL IMPROVEMENT BUDGETING PROCESS Capital Allocation Policy (CAP) Sets 5-year poficy directioa for the capital improvement budget proposals and their evaluaton. Evaluation of PCI in light of Comprehensive Plan leads to revision of CAP � Program for Capital Improvemenu (PCn Sets 10-year program by tying capital needs to long-range policy of the Comprehensive Plan. CIB becomes first 2 years of PCI Evaluation and prioritization of proposed capitat projects Capital Improvement Budget (CIB) Appropriates funds for capital projects. Identifies tentative expenditures needed within the next five years to complete currendy approved pmjects. 4 � ,� � � � � �' � � � � � � � � � � i �5 -333 FIGURE 2 PROCESS OF DEVELOPING THE CAPTTAL ALLOCATION POLICY Bud¢et Staff Proposes: - fiscal goals - ptoject policies(fiscal) - fiscal evaluation policies - financial policies CIB Committee Recommends: - fiscal goals - project policies(fiscal) - Sscal evaluation policies - financial policies nnin Commission 1. Prepazes CAP for public review 2. Holds public hearing 3. Adopts CAP �1�iavor Reviews and recommends 'i n il Adopts CAP � 1 'n � Proposes: - planning goais - project policies (planning) - planning evaluation policies q5-333 2.3 COMPONENTS OF THE CAl'TfAL ALLOCATION POLICY The 1996-2000 CAP consists of a set of Strategic Goals: Planning Goals and Fiscal Goals and three sets of policy statements: Project Policies, Evaluation Policies and Financial Policies. The Strategic Goals function as the rarionale for the policies. 1) Project Poticies. Used to determine i� and under what condirions, a proposed project is eligible for capitat financing. If the proposed pmject does not violate the limits esbblished by the Project Policies, its meriYs are Yhen evaluated. In practice, most proposals aze not affected by these policies. 2) Evalaation Policies (Planning Evalaation Policies; Itiscal Evaluation Policies). Used to evaluate the merits of proposed projects that are eligible for capital financing. The CIB Committee assigos points and ranks proposed projects using a mting sheet that incorporates material from the Evatuarion Poticies. Financing sowces are then sought for the highest rankiug pmposals. 3) Financial Policies. Used to determine what sources of financing can be used for specific projects. The most narrowly-targeted form of financing is assigned to each proposal so that financing can be found for as many good proposals as possible. The goals and policies lead to a recommended capital badget that consists of the highest- ranking eligible projects for which capital financing is available. 1.4 WHY HAVE A POLICY FOR CAPTTAL ALLOCATION? Proposals for capital improvement projects in Saint Pau[ generally have costs that exceed the amount of availabte capital resources. To provide the greatest benefit to the city, the Capital Improvement Budget must £nance those projects that address the greatest needs. For this reason, it is essential to determine the relative priority of proposed projects and allocate resources accordingly. The CAP helps ensure that high priority projects meeting city goals aze funded during the budget biennium. It transforms city goals and priorities into a set of policies that guide capital improvement budgeting decisions. 1.5 HOW IS TAE CAPTTAL ALLOCATION POLICY USED� The primary function of the CAP is to provide guidance to the CIB Committee and its task forces as they evaluate capital improvement proposals and tecommend a capital improvement budget to the Mayor and City Council. To fulfilI tfris function properly, the CAP must accomplish two tasks. First, it must articulate citywide goals that relate to capital improvements. Secondly, it must transfomt these goals into policies that provide � � � � � ,� � � � � � �' � � � � � � clear guidance conceming priorities for the upcoming capital budget. These policies must enable the CIB Committee to evaluate proposed projects thoughtfully. Two other functions stem &om the primary function of the CAP. First, the CAP helps District Councils, city departments and other parties develop capital improvement proposals. By stating the criteria for evaluating proposals, the CAP indicates what types of proposals are most likely to be evaluated favorably by the CIB Committee and its task forces. Secondly, the CAP helps the Mayor and City Council coordinate budget decisions for capital improvements with long-range operating and maintenance obligations of the city. 1.6 ORGANIZATION OF THIS DOCUMENT Chapter 1.0 - Provides a general introduction to this document. Chapter 2.0 - Presents the Strategic Goals that are the foundation of the city's policies for capital allocation. Two types of Strategic Goals aze presented: Planning Goals and Fiscal Goals. Chapter 3.0 - Contains a discussion of the Project Policies, Evaluation Policies (Planning and Fiscal) and Financial Policies used to allocate city capital resources. Chapter 4.0 - Contains a discussion of guidelines for capital programming. These guidelines aze used by the Pianning Commission and City departments to prepaze the ten- yeaz Program for Capital Improvements (PCI). Chapter 5.0 - �� Ekagte�-6:9 - Provides definitions of some important terms. � Discussion of future directions for the capitat budgeting process can be better addressed in tlae resolution adopting this document. 7 q�-333 �' q5 - 333 2.0 STRATEGIC GOALS 2.1 WHAT ARE STRATEGIC GOALS? Strategic Goals are statements that provide the direction and framework for the three sets of policies that are detailed in Chapter 3.0. They create the categories for the Evaluation Policies, which in turn are translated into a rating sheet used by the CIB Committee to evaluate individual proposals. Strategic Goals are "goais" in that they articulate what kind of city Saint Paul should seek to become. They are "strategic" because they aclmowledge the limitations of the city's capital resources and provide a sense of priority for pursuing certain types of projects over others. `--.:- •- .c_: -• •: . =-_'" - _ -:- x :- o •c - - - _ _ .. . _" ' ' ' " ' ' ""' ' "' _" " ' ' _ . .. .. .. _ __ Y. _ • _ . . . � _. .. � . . _ ... �� __'.. .__ _ _ , �....__._. " . _ � . � _ ' _ � . . _ _ _ . � _ . •. . • . • � _ � . , 11. - • � • • � • . � .. . � . . .. .. . _ � �". _ _ _ _ _ � _ .. . � � I � • � .. __ � _ .. _ ' '. � � � � _ Y. _ • . � The Strategic Goals (Chapter 2.0) and the Policies for Capital Allocarion (Chapter 3.0) are stated in sepazate chapters. The intent of this structure is to emphasize that Strategic Goa1s aze not policy. Instead, they ue guidelines for the development of policy. The policies articutated in Chapter 3.0 are the authoritarive interpretation of the meaning of 2.2 WHY HAVE STRATEGIC GOALS? The main reason why Strategic Goals are needed is that the ciTy's capital resources aze fimited. . Most of the city's non-bonding revenae comes from state and federal sources and is limited by how much aid these govemment units make available to Saint Paul, and by limits to uses of variovs financing sources set by the govemment providing the aid. Beyond that, the city is constrained by state legal limits on municipal bonding and by a more stringent self-imposed limit on bonding �lesa�iet}: � Updates and condenses tangnage. 4: � � � i ,� � � � � � � � � � � � designed to reduce overlapping general obligation debt. Appendix F displays the estunated financing sources available for capital projects from 1996 to 2000. In addition to the limits on revenue sources, the city's financial resources are constrained by past commitrnents to multi-yeaz projects that have not been completed. � tH iE� ,...«.. ,...:r.., ..+..r:t,e ...� ..... ...:........«.,... a � �.• a ,a �r� � . , ;�,r.._. i.., i�oc ....�,.,....,.scicn...•n:��.. i�vc a„__ � Reference to sewer sepazation project can be deleted for 1996 policies. 2.3A TYPES OF STRATEGIC GOALS The Strategic Goals have two complementary foci: Planning and Fiscal. The Planning Goals (G-1 through 6-3 ��4) relate to the desirability of projects without regazd to cost or financing. The purpose of these goals is to articulate what kind of community Saint Paul should become and what kind of public activities can help bring about that type of community. In contrast, Fiscal Goals (C�-4 £"s.=�j) establish principles of prudent financial management for the city's capital improvement budget. Both types of goals aze necessary to ensure that Saint PauPs public investments yie]d the maximum benefits. The Planning Goals aze based on Saint Paul Tomorrow, a T?t&nrijr3ig:�aia���cin -... . a.. a .. .�. a i�Qn,. t., .w,.'vi.... :.... � . . 0t1Yt3g1�t� €#2 .198? �-�+� -� - - --- --° - --- -' --° °� _•- - -._.-'••- -_•'•• ............. This study included a statistical profile of the city (Saint Paui Today) and an extensive survey process designed to "listen" to the community in a comprehensive way. L�°°"°�;o; �., ...w:,.w :. ..,,,....,.., :.. , no� gecause the purpose of the Saint Paul Tomorrow project was to build a foundation for strategic planning in Saint Paul, this study is the most appropriate source of Planning Goals for the CAP. The Fiscal Goals reflect relevant "General Budget Goals" from the CiTy of Saint Paul 1991 Budget Goals and Policies, a document adopted by the City Council. � The Planning Commission is recommending the addition of a new goal, requiring renumbering. Language can again be shortened. 2.3.1 PLANNING GOALS The recommendations of the Saint Paul Tomoaow report rest on a consensus: Saint Paul should mazimize its patential as a place to live and do business. This consensus has been articulated in a mission statement for the city that has been adopted by the City Council. Appendix A contains the complete text of Saint PauPs mission statement. The following three Planning Goals aze based on this consensus. These goals aze intended to be su�ciently general to apply to a wide variety of city activities, and q5-333 � C��-333 sufficiently specific to be helpful for capital budgeting decisions. The goals ate stated in order of prionty. G-1 G-2 G-3 Basic Services ■ Goal: To provide Saint Faul residents and employers with a basic level of city services. ■ Discussion: This Shategic Goal has three unportant implications. First, it identifies residenu and employers as the citizenry that the city should serve. Secondly, it implies that a"basic" level of service can be defined and should be provided to all city citizens. Finally, by speaking of "city services," this goal acknowledges that some important services are properly provided by parties other than city government. City government should focus on the services that it can most equitably and efficiently provide. In practice, the city implements this goal especially via adopted city plans and policies t11at define a basic }evel of services for the city's capital fwnctions. Therefore, the Capital Function Strategies (Append'uc D) that guide Yhe preparation of the Program for Capital Improvements are based on adopted plaus and policies and are related to this Shategic Goai. Neighborhood Management and Housing ■ Goal: To support the cazeful management of Saint Paul neighborhoods, each according to its own best poteniial. ■ Discussion: This Strategic Goal has severat implications. First, it identifies neighborhoods as the focus of community life in Saint Paul. Second, it highlights the importance of the city as a residential environment. Good neighborhood management should lead to the provision of attractive housing opportunities for a broad spectrum of the city's population. Third, it suggests that alt areas of Saint Paul—ouUying areas and downtown—betong to neighborhoods. Fourth, it indicates that conscious neighborhood management is necessary. Such management should involve both neighborhood self- management and management by city officials. Finally, it stresses the notion of "potential," suggesting that different neighborhoods have different poYentials. Policies and projecYS thaY are appropriate in one neighborhood may not be in another neighborhood. In pracrice, the city realizes t�is goal especially via District Plans, via small azea plans that identify priorities for neighborhoods that anticipate sigiificant changes in the neaz future, and via progrems that identify various geographic azeas as being eligible for special revitalization projects. Business and Jobs ■ Goal: To ensure a supportive environment for businesses and jobs. 10 � � � � � � � � �! � � � � � � � � Discussion: This goal implies that city government should not 1'unit its activities to residential concems but should also promote economic development. At its best, such promotion should be broad and general. That is, the city should be most interested in creating a"supportive environment" for economic development. Aid for particulaz kinds of businesses or for individual businesses must be guided by this broader framework. This goal also acknowledges that businesses aze not ends in themselves, but aze integrally connected to jobs and to other public amenities. The best economic development will be that which does the most to enhance Saint Paul as a place for everyone---for businesses and also for city residenu. As with G-2, this goal is implemented especially via District Plans, via small area plans that identify priorities for neighborhoods that anticipate significant changes in the neaz future, and via programs that identify various geographic areas as being eligible for special revitalization projects. ,. G»%�,°;: ">�ii��; �ttus�rvatiaiu ■ C"r�rt '�n tti�nag� ���y asseYS �� re�€rc�� �cx�` eff°xc:ei�, �osc savings, lu�h prztduclivsi3+, aiir3 $nv�roiunen2� safe� � 2.3.2 FISCAL GOALS G-5: FiscalIntegrity ■ Goal: To help preserve the fiscal integrity of the city's operating, debt service and capital improvement budgets by engaging in cazeful and thorough analysis of each capital imptovement proposal, including the long-range impact on operating costs and revenue generation. Discussion: This fiscal goal reflects those general city goals for budgeting from the CiTy Council adopted "1991 Budget Goals and Policy" that impact Ii �i5-333 The addition of this goal strengthens and makes more explicit something that the City and its Capital Allocation Policies have been encouraging for yeazs. Letters of support were received from the Environment and Energy Resource Center and the 5ustainable Resources Center. ��- 333 -<.� upon the evaluation of specific capital improvement proposals. The complete list of general goals from that document is included as AppendiY C. This goal recognizes rivo basic factors. First, proposals for capital impmvements must be evaluated against basic criteria that measure the fiscal responsibility of the project as proposed. Secondly, proposals for capital improvements must be evaluated against criteria that measure their impact on the cily's operating and debt service budgets. It is essential to recognize the close tie between the city's operating and capital improvement budgets. New or e�cpanded facilities financed through the capital improvement budget may increase the need for operating budget resources. Conversely, appropriate capital investmenYS can decrease operating expenses. But openting budget decisions, such as deferral of maintenance, can also affect the capital budget. .ie..:..:...... ..1�,. ..fF � t1... «:�..1 1.....i....r C i ,i F 1 F ""`__'_' '_ ____ —___" __' _ ' 'a__ '..' ".._.." _"_"... ..' i za.iaT:.,,._e..« _ _a:,..�,... ,... r ,.:r..:,... a..� _...e .� ....,...._a.. r �r� Y J C[arifies and condenses language. 12 � � � 3.0 POLICIES FOR CAPTTAL ALLOCATION 3.1 PROJECT POLICIES Project Policies consist of statements that limit or prohibit certain types of projects. These � policies aze used to determine if, and under what conditions, a proposed project is eligible for capital financing. � � P-1 Plans and Policies 1. Proposals for projects that clearly conflict with the ciry's Comprehensive Plan � will not be considered for financing. The Planning Commission shalt review a11 proposals for capitai improvement fmancing to determine if they aze consistent with the Comprehensive Plan. � � � � � � � � � � � P-2 Proposals for capital projects must be consistent with approved City plans and policies. 2. Any project with an estimated cost exceeding $100,000 (with the exception of projects that can be classified as extraotdinary capital maintenance) must be based on a plan or policy that has been approved by the Mayor and City Counc7. New Facilities Proposals for certain types of new facilities will not be considered for financing in 1996-1997. These facilities aze: 1. Facilities to house programs or services that aze not provided by the city. 2. New library or recreational service facilities that wil] increase operating and maintenance expenses. Expansion, rehabilitation, or replacement of existing inadequate library or recreational facilities that will require an increase in staff will be considered if the improvement is consistent with a plan approved by the City Council that identifies the need for the improvement. 3. Multi-service centers, unless the following conditions aze met: a. � Community need has been demonstrated through a feasibility study; All conditions of the multi-service center plan, including identification of tenants, have been met; and c. There will be no requirement for ciTy fmancing of operating or maintenance costs at the facility. � Comment to delete policy P-2 as it is better covered by P-1, plans and policies and is out of date or not followed. Planning Commission recommends no change. 13 a5 -333 �� - 333 P-3 I� Skyways In 1987, the City Council adopted the following policies conceming the fmancing of skyways: l. The City may participate in the fmancing of skyway bridges if such bridges support City priorities for downtown development. 2. The CiTy may participate in the financing of appropriate projects to retrofit e�cisting skyways with automatic doors and to install electronic security equipment in the skyways. 3. A City reserve fund may finance the City's portion of major skyway enhancement or replacement of e�cisting skyways connecting buildings that the City owns or leases. 4. The City will not participate in the financing of skyway approaches and concourse corridors. In addition, the following policy from the city's 1991 Budget Goals and Policies is relevant: 5. The annual costs of operations, maintenance (both current and preventive) and roof replacements for skyways should be assessed or chazged to the propezty owners of the buildings linked by the system. Additionally, a capital replacement reserve will be estabtished and an appropriate amount chazged to the property owners. Handicapped Accessibility The CiTy Council adopted the following suggestions, recommendations and goals regazding the priorities, processes and fmancing for handicapped accessibility of city buildings: The city should set a goal of five years to make all of its buildings accessible. The CIB Committee should rewmmend a financing plan to implement this goal. 2. Designs for al] new construction aud rehabilitation of city buitdings should be evaluated in light of the accessibility standazds of the Americans with Disabitities Act of 1990. The standa�ds contained in this document shoutd be used in city owned buildings. 3. A two-tier approach should be used to determine priorities for use of handicapped accessibility program money. First, a path model shouId be applied. That is, higher priority should be given to attaining a basic level of accessibility at each building rather than 100 percent compliance with adopted standazds at one site before beginning work at anather site. Secondly, within the path approach buildings should be prioritized as folIows: 14 � � � � � � � � � �� � ,� � � � � � � � ,� P-5 a. First priority should be to make safe and usable those buildings where people requiring special accessibility features aze employed or aze using services; b. Second priority should be those buildings that have the broadest unpact in terms of delivery of services to the general public; c. Thud priority should be those buildings that offer the greatest number of employment opportunities; and d. Fourth priority should be those buildings that have the greatest potential for modification at the least cost. 4. Priorities for nse of accessibility program resources should be developed by City staff based on the adopted priority framework and submitted to the Mayor's Advisory Committee for People with Disabilities for their review and recommendations before being submitted to the CIB Committee. 5. Accessibility improvements to buildings identified in the Program for Capital Improvements for substantial renovation or reconstruction within the next five yeazs should be deferred until the major project is financed. 6. Whenever all or part of a city-owned building is scheduled for capital improvements, the proposal for capital improvement dollars should include su�cient money to make the entire building, and access to it, accessible unless strong justification can be given for deferring the accessibility improvements. Whenever site work is proposed for exterior areas only, the proposa] should include sufficient money to address pazking, walkway and other exterior accessibility features unless strong justification can be given for deferring the accessibility improvements. 7. The survey of city-owned buildings should be reviewed cazefully and guidelines established to identify what improvements should be financed as capitai improvements through the Capital Improvement Budget. Language included at the suggestion of the Depariment of Public Works. Pmgram Allocations A program allocation is a lump sum amount given to fund a series of capital projects that aze consistent in nature and implemented sequentially until an identified objective is reached. An example of a program allocation is the combined street and sewer prograzn. Ail requests for capital improvement fmancing of program allocations must be accompanied by: 15 a�- 333 �5-333 Program guidelines that ate consistent with applicable city plans and capital aiIocation policies. These guideIines should be adopted if the program has been financed in prior years. 2. 'Fhe number of years the program is expected to continue to operate, or an idenrification of the conditions that would result in the termination of the program. 3. A list of the specific activities that were completed with program money during the two years preceding the application year, including the cost of each activity. 4. A list of a[I transfers, whether by resolution or administrative order, out of the program to other projects or programs during each of the two years prior to the year of the cumnt reqaest. 5. A list of al] outsYanding balances, by year including the carrent budget year, if the prograzn has been fmanced previously. 6. Identification of the amount of money that is required each year for prograzn activities. P-6 Extraordinary Capital Maintenance An objective of the city is to protect its capitai inveshnent through regutar, scheduted preventive maintenance of its capitat facitities, financed througti the operating budget. However, because preventive maintenance activities have not been fully financed in past yeazs, some capital facilities require extraordinary capital maintenance. To addrass such extraordinary capital needs, the city will ezcn nnn ..,.� _.,,._ :., ionn .,_a .onc consider budgeting up to , �I;#1Q��:� �ar:jui;T��J�;;�i�� 1:�� for extraordinary capital maintenance. Adequately fmanced programs for regular preventive maintenance would, in time, reduce the need for an extraordinary capital maintenance program. It is hoped that preventive maintenance--both ordinazy and extraordinary—will become a high ciTy priority. In the long run, deferred maintenance is not a cost-effective way of managing scarce financial resources. Ea�traordinary capital mainteaance is defined as the repair, replacement, renovation, remodeling and/or retrofitring of the structural parts andlor service system components of a building, and the man-made components of an improved site. Smuctural parts include footings and foundations; beams, joists, columns; load bearing walls, e�cterior walls and facade (excluding glass); stairs, floors, decks, ramps, ceilings; roofs and roofing. 2. Service system components include plumbing, electricat, communicarions, heating, ventilating, air condirioning, security systems and elevators; utility mains. 16 � � � 3. Site components include retaining walls, lighting, stairs, ramps, sidewalks, railings, fencir�g, dninage structures, and erosion control. Priority consideralion will be given to those site components whose condirion affects building components identified above. Any work financed through the eactraordinary capital maintenance progratn must � have a life expectancy that exceeds the terms of the bonds used to finance it, or must be financed with non-bonded fund sources. Ongoing maintenance and � routine preventive caze and upkeep of facilities shall be financed through the city's operating budget. � � Except in cases of emergency, work projects financed through the eartraordinary capital maintenance progratn must have costs that exceed $3,000 et�-ere-less�aa �5,889. Smaller work projects shail normally be financed through the city's operating budget. Lazger work projects shall normally be financed through the regulaz CIB process. Guidelines have been developed for administering the extraordinary, capital � maintenance program. The guidelines for this program include the following eligibility criteria: � L The project must conform to the definition of extcaordinary capital maintenance. � 2. The facility must be City owned, or ]eased to the City on a long-term basis. At least ten yeazs must remain on the lease and the lease must require the City to be responsible for capital maintenance. � � � � � � ,� � � 3. The project must have a useful life expectancy greater than 10 .years. 4. Any property with repairs financed will not be in jeopazdy of closing within the next five years. � Pubiic Works has recommended increasing the total amount that can be funded, noting that projects funded in their department in 1994 totailed $844,000. The Parks Commission supports the increase provided by the revision. There was another suggestion to increase the potential budget amount to $1.5 million per yeaz and to delete the upper limit of $75,000. The Planning Commission recommends the increase to $I million per year and agrees that the upper cap is inconsistent with other parts of the policy document. P-7 Redevelopment Activities In the future, the City will use Capita] Improvement Bonds to finance redevelopment project activities as defined in Minnesota Statutes, section 469.002, subdivision 14, in accordance with Minnesota Statutes, section 469.041, clause (6). In the past, these activities were fmanced with urban renewal bonds. Saint Paul's authorization to issue utban renewal bonds has been repealed in exchange for an equivalent increase in the city's Capital Improvement Bond authorization and the authority to use a portion of this authorization for redevelopment activities. (Section Chapter 513 of the Laws of Minnesota, 1988.) The 17 q�-333 q�j-333 maximum amount of Capital Iinprovement Bond financing availatrte for redevelopment projects is $b�5t?��3��;T�x:P��S6�x P-8 Residential Strcet Paving � • �• - - - - - ... - - • •••----• ---- -. ... ... . . - •-° - Y. � .. �\ .. _ " .� .. � __.. ... _. . _._ ' '- . � � , ��� �� . __. � _ _.' ... .. 1 _ � � _ � � • _ � • _ _ � With the conclusion of the sewer sepazation project, a new policy is needed to continue paving oiled and old paved streets. The CIB Committee adopted a resolution on 7une 9, 1994, calling for converting to a pay-as-you-go program. According to figures developed by the CIB Committee, a pay-as-you-go program funded through assessments would save property taxpayers money by eliminating interest and bond sale costs as well as by permitting tax-exempt property to shaze the costs of the program. City Council File 941427 calls for finishing the street paving in 13-I S yeazs and calls on the city adminishation and the CTB Committee to recommend a plan for financing the program on a pay-as-you-go basis for Council consideration in eazly 1995. The Pazks Commission recommends including parkways that need reconsYruction when they abut or ate included in a street paving project area. The Planning Commission believes parkways should be designed and reconstructed as a unit. �0 18 Companion policy to ensure both paving and lighting of residenUai streets. � � P-10 Rain Leader Aiswnnecrion in City Facilities � In order to abate storm water overflows into the Mississippi River, capital improvement bonds financing will be appropriated to disconnect rain leaders from City buildings and other facilifies, including recreation fields. � O°=.� -, ^'��� 79AR i�n tn �lln nnn ..,.... �., .,_ _,. •.,.a e i a a. :° :' � rr r �3���X�2 � ae�ds4�i�"� �a�ou� � s�epaz�e�� •� �tuig � �a#a �f si��� � ,� � � �� � � � � � � � � � � The driving force behind rainleader disconnection has been Saint Paul's National Pollutant Dischazge Elimination System (NPDES) permit. This permit expires on December 31, 1995, after which there can no longer be any bypasses of untreated sewage to the Mississippi River. Failure to meet this federally mandated requirement may result in substantial fines and fiirther legal action against the City of Saint Paul. This language is proposed by the Department of Public Works to strengthen and raise the visibility of this activity. 'fhe Pazks and Recreation Commission supports strengthening this policy, noting that pazk and recreation facilities ar not eligible under the CSSP. P-I1 P-12 P-13 Financing for Preliminary Studies The City mav finance studies such as environmental impact statements or engineering studies that examine altemative designs for a specific project if the specific capital improvement has been approved for inclusion in the Tentative Program of Commitments. Needs assessments aze not appropriate capital improvement budget expenditures. Studies that examine altemative uses for specific sites or capital facilities are not appropriate capital improvement budget expenditures unless they are necessary components of a major citycvide project to which the ciTy has made a virtual commitment. Such a project shall be included in the Tentative Program of Commitments only upon the recommendation of both the Planning Commission and the CIB Committee. The Planning Commission's recommendation shall be based on a preliminary study, performed by the Planning Commission, which indicates the need for a more detailed study of altematives. Long-term debt should not be used to finance studies for such projects. Duplication of Services Projects that duplicate existing public or private services that are available to the same population within the given geographic area shall not be funded. Assessment Policy A summary of the city's pu6lic improvement assessment policy is contained in Appendix E. �;�- 333 � 19 �5 - 333 �:�� :;.��:����� � Reflects recent City Council policy decision. Letters in support of this policy were received from the Sustainable Resource Center and the Environment and Energy Resource Center. �! 15 ,: �eadear �cr���riel�iSan ,u ��ly ���iiiises � � Suggested by the Public Works Department. �i � , � 3.2.0 EVALUATION POLICIES If a proposed project is eligible for capital financing, its merits must be evaluated. The CIB Committee evaluates the merits of proposals using a rating sheet that assigns points based on the Evaluation Policies of the CAP. The Evaluation Policies aze closely linked to the CAP's Strategic Goals (Chapter 2.0). � In essence, the Evaluation Policies define indicators that enable the CIB Committee to determine how well a proposed project fulfills the Strategic Goals. � � � � � � � Shortens and updates language. 3.2.1 PLANNING EVALUATION POLICIES The Planning Evaluation Policies aze organized according to which ofthe Planning Goals (G-1 through fr3 fa-d in Chapter 23.1) they most closely support. E-1 through �3 �: �.• Policies ReZating to G-1: To provide Saint Paul residents and employers with a basic level of city services. E-1 Level oF Service In evaluating proposed capital improvement projects, the following priorities shall be observed: I. First Priority: Prevent Hazardous Conditions � � � � � � This category includes projects that address immediate threats to life, health, or safety. It also includes projects that prevent or correct hazardous situations and/or critical breakdowns, and limit the City's exposure to liability. Most of the capital improvements in this category aze required to prevent emergencies. � �e�uit I'rrurity: F'r�anrl �i�s tt�, er �tasic, ��i�e1 21 �5 - 333 tv�cu �n�^..^:....� ^•�... � .t Dl .. /_,...i.. /!_ i .G_,,..,.w i- o :_ n�.__.__ � o ,,. .v_ ,a rl •. rc „ n a ., c «w n• i � �,. i� n:., n�..... ��'+� P13Tlrilllg Evaluation Policies and Fiscal Evaluation Policies shall receive equivalent emphasis. q5- 333 �: :�'��rd Prie��#�:;�ziit�i�z��z#s�ii�,g Ba��;,;�r"c�s 4. Fourth Priority: Maintain Support System for Basic Services Maintaining quality basic services requires an adequate support system and/or set of backup facilities, such as adminisirative offices and facilities for communication, storage, training and education, and repair and maintenance. Capital improvements in this category should directly support the ability of City govemment to provide services efficiently and effectively. E-2 5. Fifth Priority: Provide Above-Standard Services The last category peRains to the conslruction of new facilities or additions to existing capital facilities that result in a level of service that exceeds that which has been defined as "standazd" for capital functions in an adopted ciTy plan or policy. Such expansion of services may be advisable in order to support targeted neighborhood revitalization, It may also be allowed if the beneficiaries of the project pay for the additional service costs tluough special assessments. An example of a project in this priority category could be extra decorative street lights in a commercial azea. � Based on a comment received, the Planning Commission recommends switching the second and third priorities to reflect the need to maintain the quality of life and tax base in all azeas of the city by providing them with basic service levels. Program for Capital Improvements (PCn In evaluating proposals for capital projects, the following priorities shall be observed: 1. First Priority: Projects that closely conform to the PCI in terms of scope, timing, cost and/or fmancing. 2. Second Priority: Projects that aze included in the PCI but differ significantly from the PCI in terms of swpe, timing, cost, and/or fmancing. 3. Third Priority: Projects that are not included in the PCI. 22 � � � E-3 Departmental Evaluation In evaluating proposals for capital projects, the following prioriries shail be observed: � l. First Priority: Projects that departments identify as critical to the fulfillment of their mission during the upcoming capital budget cycle. The relevant department must explain why it regazds the proposed project as critical. � � 2. Second Priority: Projects that departments identify as high priorities, although not critical to the fulfillment of their mission during the upcoming capital budget cycle. 3. Third Priority: Projects that departments identify as low priorities. � 4. Fourth Priority_ Projects that deparhnents identify as 6eing of questionable y validity. The relevant deparhnent must explain why it regazds the proposal as having questionable validity. � E�4:�5 System Integrity � � � � � � � In evaluating proposals for capital projects, preference shall be granted to projects that contribute to the integrity of capital systems or functions by creating appropriate linkages between their existing components. An e�mple of such a project could be a bicycle trail between two pazks. Projects that damage the integriTy of capital systems or functions by removing important components from them shall be penalized An example of such a project could be the conversion of an important piece of pazk land to another use. �-�re��8 ��:�':�1�tit��?.E�$: Policies Relating to G-2: To support the careful management of Saint Paul neighborhoods, each according to its own best potential. E=5 .€s-H District Plans and f�ihelt` S�n}1 Area Plans , e.� In evaluating proposals for capital projects, preference shall be granted to projects �18t rjrmr ••a..�1.1., ......a«l.,.w., f.. �.IC.iI:.... �L.� .. •�.. 1.•,, ti.... ci_x io�caxr',41T£S J S Po°n'°'°°J�° : �... . ...> ....,_ ._ ............:................... . . � .......,..: ..:.._-:..:..:..:.:..---:-..,::.:.:-:.�: :-.:::.....::; �leia�; District Plans (as adopted by District Councils) . .. . se�eAet3Es-e€� small azea plans� �3s ��i' �3ty �t#Tt�cilll�r"1 xp�'itcz�d pi2tt�. This preference is followed by projects that �et�eHSi�eb�y c�eai�� contribute to fulfilling general objectives of �eleva�� �9� plans. Projects that demonstrably conflict with District Plans or small azea plans iir;��ek`:�i�? ��ii�2riiJtf3l�ti��riii�?ed;�FI�s shall be penalized. Projects that have a neutral or indeterminate impact relative to this objective shall neither be penalized nor given preference. Simplifies and consolidates two previous policies for plans that cover subazeas of the city. i 23 q5-333 q5 - 333 �=�',� District Council Ranking The priorities of District Councils shall be included in evaluating proposals for capital projecu. �J sl.... ��:..«,..�..t «,. .1... G.1�77�.._.. ..r ,.i,•.,,..:.,.� .t... H... n• 1. a J �nT+ dr*c•iQnnterl — _:... _„a,...,,t,.....,,..,. ., n..:,...:�. .,.a,.. i � r 7 Y� Di.... ...7 �.:..�: T T1.... D e.,:�..1: .,d,. A ..t:.... D.. ..a .. � This policy has been incorporated into E-5, District Plans and Sxi� €�t�iet Area Plans. �7?;�9 Housing �� In evaluating proposals for capital projects, preference shall be granted to projects that demonstrably support the mainYenance and upgrading of the city's existing sound housing stock, while seeking to improve deficient housing and to generate construction of new, affordable housing choices in chazacter with the neighborhoods surrounding them. Projects that demonstrably conflict with this objective shall be penalized. Projects that have a neutral or indeterminate impact relative to this objective shall neither be penalized nor given preference. As directed by the City Council, HRA and PED will develop housing strategies and housing programs that will create housing opportunities for all incomes to creaYe long term neighborhood stability. The city-wide home ownership goal will be ,, ��u�n ... �c.ti� � �� .,:n e.., snoi ... -..:;:» . .. .:,. _ ,.. ..... o e B--feii Szab--�v�r-o�vmv 3... . 3�:'. .' ... .,.. . �' :.r :., . . Ptait, acixapt�tl, a�tisiiaily 1� fii� �ity �ot�it. Preference will be given to projects _ - that support these City Council adopied Housiag Goals. Rather than list specific figures, the Planning Commission recommends that the policy goals incorporate the annually adopted city goals. � �8 Historic Preservation In evaluating proposals for capital projects, preference shall be granted to projects that demonstrably contribute to historic preservation. Projects that demonstrably conflict with this objective shall be penalized. Projects that have a neutral or indeterminate unpact relative to this objective shall neither be penalized nor given preference. si� �>:�`.�:�"��Q: Policies Relating to G-3: To ensure a supportive environment for businesses & jobs. �� �-}-}- Job Creation In evaluating proposals for capital projects, preference shal] be granted to projects that demonstrably support the creation or retention of a substantial number of new jobs in Saint Paul or job opportunities for Saint Paul residents. Projects that � � � � i � t �� � � ;� � � � � � � � � demonshably conflict with this objective shall be penalized. Projects that have a neutral or indeterminate impact relative to this objective shall neither be penalized nor given preference. �:=:��3 � Business Investment In evaluaring proposals for capital projects, preference shall be granted to pro}ects that demonstrably stimulate substanrial new business investment in Saint Paul. Projects that demonstrably conflict with this objective shall be penalized. Pmjects that have a neutrai or indeterminate impact relative to this objective shall neither be penalized nor given preference. 3.2.2 FISCAL EVALUATION POLICffiS The CIB Committee evaluates the merits of proposats using a rating sheet that assigns points based on the Evaluation Policies of the CAP. Fiscal Evaluation Policies derive from the Fiscal Goals (G-5 in Chapter 23.2). Pianning Evaluation Policies and Fiscal Evaluation Policies receive equivalent emphasis. E-12 Impact on Operating Budget In evaluating the merits of each proposai: 1. 2. Projects that will result in an increase in city operating and maintenance costs will be penalized. 3. Projects that have a neutral or indeterminate impact relative to this objective shall neither be penalized nor given preference. 25 �5-333 � Changes reflect the renumbering required for the addition of a new goal and deletion of policy. ��-333 ,� E-13 New language suggested by Public Works Department to strengthen policy. ImpaM on City Revennes In evaluating the merits of each proposal: 1. Projects that increase revenue to the ciTy will be given special consideration. 2. Projects that teduce revenue to the city witl be penatized. 3. Projects that have a neutral or indeterminate impact relative to this objecrive shall neither be penalized nor given preference. $-14 Grants The ciTy shatl actively seek grants from other units of government or the private sector to fmance projects that are consistent with adopted city plans and policies and the priorities of the city. Special considerarion shall be given to capital improvement requests that wiil be used as a match for such grants if the project does not result in an increase in city operaring and maintenance costs and if fhe project does not reduce revenue to the city. The possibility of a potential grant should not automatically create special consideration and higher prioriries to act decisively outside the normal capital improvement budget process. Proposats will still need to be determined on a case by case basis. E-15 Private Investment Capital irreprovement proposals that ]everage committed private inveshnent will be given special consideration. Projects designed specifically as incentives to private development or redevelopment should meet the following criteria: 1_ Leveraee euidelines: Minimum ]everaging is 1:6 (each public dollar should leverage at least 6 private dollazs). This ratio may be as low as 13 if the project: a. is directly associated with neighborhood/city partnership effoRs; b. creates permanent jobs for city residents; c. is d'uectly related to development of low and moderate income housing; d. is directly �elated to conservafion of nonrenewable energy resources or development of energy altematives; or e. includes adequate space for a licensed child caze center as part of the project. 2. Return on investment: A project associated with a numbered exceprion to the Ieverage poIicy is subject to the following minimaI retum policies: 26 � � � � � � � � � � �� � � � � � O � � a. The retum in terms of tax revenues cannot be less than the cost of addirional services required by the project; and b. Additional taz revenues generated from the project must be sufficient to repay the city's inveshnent over the lifetime of the asset provided. � A comment was received that "The leverage guidelines given...do not appear to correspond to guidelines in use for other ciTy prograws. In addition, it is appropriate to assess all projects, not just redevelopment projects involving private inves�nent, to show leverage or at ]east a long term positive impact on tax base or surrounding properry values." The Planning Commission recommends no changes to the policy. �16 Acquisirion A project that involves acquisition may be given the same priority as a project that does not if: 1. The acquisition is related to public development or reuse and: a. Right-of-way of easements are necessary; b. The parcel(s) have been previously identified for conversion to pazk use if they become available; or c. The pazcel(s) have tax exempt status and a use that is consistent with city plans, policies and priorities has been cleazly identified. 2. The acquisition is related to private development or reuse and: a. The proposed reuse is consistent with city plans, policies and priorities and: 1) 2) There is a reasonable expectation that development will occur in the immediate firture; or There is an economic advantage to the city to acquire the property and the city can dispose of it within the reasonably foreseeable future. � A comment was received that the rating sheet used for CIB projects appeazs to conflict with this policy. The following changes were recommended to clarify the policy: The acquisition is related to development or reuse, and a use that is consistent with policies and plans has been identified. EYamples include: a. Right-of-way of easements aze necessary; b. The pazcel(s) have been previously identified for conversion to pazk use if they become available; or 27 ��-333 q5-333 a The pazcel(s) have taz exempt status and a use that is consistent with ciry plans, policies and prioriries has been cleazly idenrified. d. The proposed reuse is consistent with city plans, policies and priorities and: 1) There is a reasonable eacpectation that development wili occur in the immediate future; or 2) There is an economic advantage to the city to acquire the properiy and the city can dispose of it within the reasonably foreseeable future. The Planning Commissions recommends no change to this policy. �17 Joint Use / Consolidation of Facilities E-18 E-19 Proposals that consolidate e�sting city facilities and proposals for facili$es that will be financed and operated by tfie city and anotfier agency, or by more than one operating department or division within the city, will be given special consideration if tfie proposed facility: 1. is consistent with city plans, policies and priorifies; 2. can be constructed and operated more efficiently and effectively at less cost to the city tUan separate facilities; 3. does not result in an increase in city operating or maintenance costs or reduce revenue to the city; and 4. will result in shared operating and maintenance support of tlte facility if jointly used. Continuation Pmjects The funding needs of a capital improvement project that received a prior budget appropriarion for construction plans or a consYruction phase normally have priority over a new project or program allocation. Feasibility studies are not prior commitments. Acquisition and preliminary design do not constitute prior commitments unless financing for construction plans has been approved and included in the CIB Committee's schedule of tentative fuhue commitments. Annual programs are not considered continuation projects. Programming and Phasing A proposed project should be adequately programmed and phased. This means that: 1. A proposal that is justified by city plans, policies and priorities and is coordinated with other improvements at a cost saving to the city will be encouraged. 28 � � � i � 2. A project must be timed with other improvements planned for the area within the nea�t five years. 3. Only the amount that can reasonably be expected to be expended in the budget yeaz will be budgeted. Money required t4 complete the project will be identified in the schedule and will constitute a tentative commitment subject to CiTy Council adoption of a budget appropriation for each yeaz of the project. E-2� Use The extent to which a project will be used will be taken into consideration. Also, � efforts shall be made to ensure that projects meet the needs of the economically disadvantaged. This means that: � 1. The greater number of people served by a project, the greater the consideration that should be given to a project. Administrative units shall be considered separately from neighborhood facilities. � � 2. Projects used yeaz-round will be given greater consideration than projects used primarily on a seasonal basis. E-21 Fiscal Impact Analysis � Proposals that involve a new service or expanded level of service must include as part of the proposal an analysis of the impacts of the project on the city's operating costs and revenues. � � � � � � � � � 3.3 FINANCIAL POLICIES Financial Policies are used to determine what source of fmancing should be used for particulaz projects. Numerous financing sources for capital projects are available to the city. However, many of them are eannarked to be used only for certain types of projects. By assigning the most narrowly targeted financing sources to the best projects, the CIB Committee is able to recommend financing of the optimal package of projects. F-1 Financing Sources Determination of which financing source is most appropriate for each of the ciTy's capital improvement budget priorities will be made as follows: Recommended capital improvements that are subject to assessment will be so assessed under the city's Special Assessment Policy. The policies currently in effect were adopted on December 23, 1976 as Council File No. 268302 and amended June 17, 1980 by Council File No. 275110; May 17, 1984 by Council File No. 84-632; at� February 11, I986 by Council File No. 86-162; ��°�ebrttar�;;"�, ���4;�Zy_�rtt�l f�9t�.N�3 �±4-�3�. The policies that determine the assessmentrates on storm sewer, lighting and sheet assessments are modified by Council Files 90-1459, 91-1733 and similaz resolutions which 29 15- 333 ���333 will occur yearly thereafter. These escalate the assessments based on the previous years Minneapolis/Saint Paul Urban Consumer Price Index. 2. Recommended capital improvements located on Municipal State Aid, County Aid or Minnesota Trun[c Highway routes and eligible for one or more of these fmancing sources wiil be fmanced to the extent altowable with money allocated Yo the city specifically for these routes. 3. Recommended capital improvements that aze eligible for metropolitan, state or federal programs or private grants should be so Snanced. If appropriate, CDBG or CIB money may be used to provide local matching funds. 4. Recommended capitat improvements that can be financed with specific bonding authority may be so recommended if CiTy Council has ittdicated its intenfion to use such authority. Recommended capital impmvements that can be fmanced with revenue bonds or revenue from an existing Tax Increment District should be so financed. 5. Recommended capital improvements or portions thereof and prograzus eligibte for CDBG financing should be so financad. 6. Recommended capital improvements that cannot be financed with money govemed by paragraphs 1. through 5. will be considered for Capital Improvement Bond Financing. � Adds policy dealing with existing brick streets and granite curbs. A comment was made that "CDBG funds are intended to be supplemental to rather than a replacement for 1oca1 CIB dollars, so F 2.5 should be revised or eliminated." The Planning Commission finds that the golicy ensures the supplementing of CI$ funds with CDBG and recommends no change. >:... .. . ... . . F-2 ' �E►�is�i��i� If�I �'ripgra�us .: : .. ..........:. ..: meet the federal guidelines issued by HUD. This means that: Projects must be included in the list of eligible activities contained in the federal regulations. 2. Projects must either principally benefit low and moderate income persons, eliminate slums and blight, or meet a community need having a particulaz urgency. . .. - •-•- -- •-- ----• - - -• �-• - - •- - ------ •- - -- -� 30 � � � � �J � � � �� �� F-3 Changes take into account new consolidated planning requuements. A comment received objected that the 'special consideration' for top priority capital projects in the consolidated plan should be no different than that given to projects that carry out district and small area plans. Those federally funded projects should be required to demonshate that they aze consistent with relevant district and small azea plans. The Planning Commission agrees and recommends deleting the new last sentence of ¶ 3. Bond Financing Guidelines for the use of bond financing aze as follows: 1. State law limits the sale of Capital Improvement Bonds to $1?;��3t�;0�T�'att :.: 1:�:`�tir�"�1`�,�t?4sQQ(1' iii;::t99�. However ;.. ..,.,.,._a....,.,. __.:.,. .,.,. , n�, �� , . ... .. . ....... ...... .... . :;, Joint Debt Advisory Committee r°°'LC........ u,..,,... .,,e rro �,.� ...:...... .... ' te��i�iiae€�t€� limiting CIB bOnding to $13,650,000 in �nnn _„a rin acn nnn ::: innc ����:� ���� in order to stabilize the ciTy's annual debt service cost. 2. The city will issue special street assessment revenue bonds as required to finance the assessable portion of str�et paving. Debt service on the bonds will be paid by benefitted property owners. The exact amount of bonding wili be determined by the specific projects scheduled and will be contingent on the amount of federal, state and city construction money available for sewer sepazation. 3. The city may issue Municipal State Aid revenue bonds in order to finance � Wamer and Shepazd Road reconstruction if a financing plan for completion of these roads is approved by the Mayor and City Council. � � 4. The use of revenue bonds to finance public improvement commitments for ��insin� ant2 economic development projects is preferred over other financing sources. The city may consider using taY increment, taxable bonds, or tax- exempt revenue bonds for the following projects: a. Riverfront development; r� � b. Downtown parking proposals; c. Other project-specific public redevelopment costs that leverage significant private, state or federnl investment�;tir; i1 Aehi�ve ��€��ii �avbi� p3i�se�j�vs;xand'pP�it�s � � Such bond issues may be general obligation bonds if there is dedicated revenue sufficient to cover the interest and principal payments and if there is 31 �5 - 333 � :: : ��_ . -�' Y . '� �:_ : :: ' - ` q5 -333 additional financing other than properiy ta�c revenues to secure the payment of debt service. 0 F-4 F-5 � Clarifies and updates policy. Taa Increment Financing Guidelines for the use of tax increment financing aze as follows: I. Revenue projections by consultant: revenue projections prepazed by City staff and bond undenvriters for all tas increment proposals should be analyzed by the City's fscal adviserin order to determine reasonableuess. 2. Debt service from bond sale proceeds: capitalized interest will be used for the payment of debt service for tas increment fmancing bonds only when tas increment revenues are insufficient. Capitalized interest for bond-financed tas increment projects will be limited to no more than the first three years after the sale of bonds. � 3. Other costs funded from bond sale proceeds: all other costs relating to any tas increment proposal may be 6nanced with bond proceeds and incladed in the justification of each proposal. These costs include, but aze not limited to: design, acquisition and relocation, construction, bond counsel fees, fiscal adviser fees, credit enhancement costs, reserve funds, other costs of insurance, and staff time. HRA General Fund The HRA General Fund wil] be used to provide loans for redevelopment and economic development activities throughout tke city including acq¢isition, clearance, relocation, rehabilitation, public improvements, project loans, working capital loans, and fmancing a public or privaYe pazking facility or a child care facility. The use of the FIRA General Fund is govemed by the state municipal housing and redevelopment law (Minn Statutes, Chapter 469 and supplemented by Chapter 376 relating to tocal housing and economic deve[opment programs). HRA Development Fund The HRA Development Fund was established in 1983 in the resoluUon authorizing the sale/leaseback of the Civic Center (HRA Resolution 83-10/13-2). Like the F3RA General Fund, the purpose of the HRA Development Fund is to provide loans to finance redevelopment and economic development acrivities throughout the city including acquisition, clearance, relocation, rehabilitation, public improvements, project loans, working capital loans, and financing of a public or private pazking facility or a child care facility. However, at least 50% of the HRA Development Fund must be used for redevelopment activities within the boundaries of the 7th Place Redevelopment Area and Ta�c Increment District (roughly bounded by St. Peter and Market St. 32 � � � F-7 Rehabilitation Loan Funds to the west, l lth St. and 9th St. to the north, Robert St. and Jackson St. to the east, and Sth St. and 4th St. to the south). � City bond money used to provide residenrial and commercial rehabilitaYion loans shall be recycled for addirional loans as the original loans aze repaid according to the guidelines adopted by the Saint Paul City Council. CDBG money used to provide residenrial and commercial rehabilitation loans, which return to the � CDBG program as program income, shall be appropriated from the program income line item to provide new loans as the original loans aze repaid. � F-8 Sale/Leaseback � � [.: � � � � F-9 0 F-10 Before any sale/leaseback agreements will be approved by City Council resolution, the following canditions must be met: 1. The feasibiliTy of the proposal must be analyzed by an independent fiscal consultant chosen by the city. Costs for such analysis must be borne by the initiator of the project if other than a city agency. 2. The advice of the Long Range Capital Improvement Budget Committee must be obtained. 3. If the repurchase of the facility is part of the proposal, the package should be structured to minimize repurchase costs and financing must be feasible. Tax Abatement The city will not consider pti��tty tax abatement as a developmenU redevelopment tool unless so defermined by the Mayor, and by CiTy Council resolutlon- °°a ..,:,,� .,.., ..., _.: _r..._ w • a , • ""r �..«.:: ::�»�:.... a„ .,,i,..,...�... ir,,....,.:i c:i,, wr,. ��<on�� [�: .:;... .- :......::.... ...: .. ,.. , ..,.. ..,� ,.., 9,�,... . . � u[,:ac�tfxc���e`"R?Ii}i ,... .. , ... :...... . ....:.. sta€e'tai5. " Clarifies policy. Priorities and Procedures for Disbursing Capital Improvement Project Financing In order to maximize allowable interest earnings on cash investments, fund and � activity managers and the departmental accountants will conform with the foliowing when paying bills for capital projects: � An interdepartmental invoice for transfer of money between funds will accompany each pay voucher that equals or exceeds $50,000; � 2. An interdeparhnental invoice for transfer of money between funds will be completed at the end of each month to cover all pay vouchers that totalled less than $50,000. � � 33 �5-333 �5 -333 3. If a capital project has multiple sources of financing availahle, spending will be chazged against funds in the following order, subject to the qualifications listed below: a. Reimbursable grant funds--these funds should be spent first with prompt request for reimbursement; b. Bond funds sold in 1987 or after; c. Cash grants that have interest limitations; d. Bond funds sold prior to 1987; e. Cash grants that do not have interest limitarions. The following qualifications should also be applied: Grants with time restrictions should be spent within the allowable period. If the budget for a project exceeds the projecYs final cost, cash grants should be used to the full extent allowable, leaving other financing sources available for reappropriation. F-11 Reporting, Review and Reappmpriation Requirements for Capital Improvement Projects The following reporting and review requirements will be used to monitor all capital improvement projects to help ensure that federal azbitcage requirements for bond proceeds are met and to derive maYimum benefit from capital financing: 1. Each department shall prepare an annual capital improvement project status report and present it to the Saint Paul Long Range Capital Improvement Budget Committee and City Council by'°° ,`°°a �.a.. ic ����;�� of each calendaz yeaz. The report shall indicate the current status of each of the deparhnent's capital improvement projects including e�cpenditures, encumbrances and outstanding balances �si�rg-set�rse• 2. Financing from all sources for capital improvement projects or programs may be subject to reappropriafion if the project or program has not shown substantial progress towazd completion at the end of the calendar yeaz in which the ��Fesee�s-weFe �2i�'g;�;i!�s received. 3. When adequate progress is not being made on a project, the responsible departrnent or agency must justify continuation of the pmject to the Saint Paul L,ong Range Capital Improvement Budget Committee. The CIB Committee may then recommend to the Mayor and City Council appropriate action on a project-by-project basis. Recommendations may include: 1) to allow additional time for implementation; 2) to abandon the project and reappropriate the financing; or 3) to rephase the project's financing and reappropriate a portion of the cnrrent financing. 34 � � � � 0 F-12 4. Via zesolution, if c":-; ': . �.��z#ts�;��erx�� the City Council �as � identified any new projects, the CIB Committee would also consider these projects as part of the reallocation recommendations of the remaining dollars. Revisions to clarify policy recommended by Budget Office. Project Phasiqg � Proposals must be reatistically phased if the conditions of Po]icy F-11 aze to be met. In order to assist deparhnents in their phasing, approved construction projects that are phased over several years shall not be required to submit more than one proposal application for task force review unless the original � appropriation specifically indicates that the appropriation does not constitute a commihnent to future fmancing. !_� � � � � � � � LJ � � � F-13 0 F-14 Multi-yeaz projects will be required, however, to present estimated construction costs to the CIB Committee after design is complete and before bids aze let to have continuation of project financing included in the capital improvement budget. Out-of-C�cle Appropriations for New Projects Requests for out-of-cycle appropriations for new projects shall not be considered individually unless an urgent health and safety hazard exists. All requests for new projects shall be held and considered in compazison with each other, and with the next priorities identified during the last proposal review cycle before any recommendations aze made by the CIB Committee. It shall be the responsibility of the CIB Committee to identify a time line and procedures for reviewing such proposals. A comment received questioned if policies F-11,F-12,and F-13 aze being foliowed, and if not, suggested deleting the policies, following them, or revising and following them. The Planning Commission believes the policies aze being followed and recommends no changes. Increased Costs for Projects If detailed estimates for a project as proposed exceed the amount budgeted and programmed, or if actual bids exceed the budgeted cost, no part of the project shall begin until financing for the entire project has 6een budgeted or programmed. If detailed estimates or bid costs exceed the budgeted and programmed project cost by more than 25 percent or $100,000, whichever is less, the project must be reevaluated by the CIB Committee in light of all e�sting priorities. The CIB Committee may recommend that additional fmancing be appropriated for the project, that the scope of the project be reduced, and/or that the project be deferred until the next proposal review cycle to determine whether the project is warranted, given increased costs. 35 q5-333 �5-333 F-15 Multi-Year Pmjection of Capital Financing Sources Appendix F is a projection of all capital improvement financing sources for the years �994-�ee�gk-�498 :T?<� ��iti�s2�. T'he five-yeaz tentative program included in the biennial capital budget shaIl not �ceed these funding projections. �:=�_-'.�::��e<��i�sF'ae�'�`it��s;�l�p'.' ::�'� "....:::>:.::.:,; .:.... ::.: .. :.. � . ,::. �:.: .:. .. ..... . ,: .. ... ... :.. :. ,... . :.,. ,...: .. ,.,.,._�€3`. ............... ...:,... ._...,.:,:.. � Recognizes a new fund source and authorizes its use. 36 � � � � � � �_ I � � � °�-333 4.0 GUIDELINES FOR CAPTTAL PROGRAMDIING Guidelmes for Capital Programming aze used to determine what types of projects aze to be included in the ten-yeaz Program for Capital Improvements (PCn. The PCI is the City's detailed plan for future capital investment. The guidelines that govern the PCI aze not, strictly speaking, "capital allocation policies" because the aetual allocation of capital resources is recommended by the CIB Committee and adopted by the City Council. Akhough conformance with the PCI is an unportant criterion for determining the aetual allocation of capital, it is not the only one. The intent of the following guidelines is to ensure that the PCI reflects a reasonable and prudent initial assessment of the City's capital priorities over the next ten years. PCI-1 Conformance to Project Policies All projects included within the PCI shall conform to the Project Policies of the 1996-2000 Capital Aliocation Policy. PCI-2 Years ' nnz "�' °�°� �99�sw:1i197 of the � no��� �995: ��3 PCI Yeaz -1-934 :I��S of the PCI shall consist of budgeted projects; Yeaz -1s19-5 ;I�;7 of the PCI shall consist of projects recommended by the CIB Committee for financing in -1-g9-5 1�?. PCI-3 Years '°^-�-'�S 1`��98=244#S of the PCI: Tentative Commitments � Projects that are listed as tentative commitments for yeazs ' O°z��;1�$;2��lQQ in the adopted �994 1��?� capital budget shall be included in the PCI at the indicated level of financing. � � � � � PCI-4 Years '°O��-'�^^o I�$::��Q of the PCI: Programming of Projects Other thaq Tentative Commitments The Mayor's Office, Budget Section shall provide estimates of the amount of money expected to be available from Capital Improvement Bonds, Community Development Block Grants, and other resources that can be estimated accurately for yeazs '^"�-' 1^�"o I�9$.:2QQ(2 of the PCL If the tentative commitments for yeazs '°^��-'rS",o }��$=2(�G€� do not exceed the amount of available resources estimated by the Mayor's Office, Budget Section, departments may identify new projects to be included in years' ^°�o :��$=2�t4Q of the PCI. PCI-5 Years 1°° :nviT°o 1:9�,�Zi� of the PCL• Match Between Programmed Projects and Expected Available Financing For each of the financing sources identified by the Mayor's Office Budget � Section in accordance with PCI-4 above, the total amount of money needed to finance tentative commitments and new projects shal] not exceed expected available financing. � � 37 q5-3�3 PCI-6 Years' °^�� I����tNM of the PCI; Distribution of Capital Tmprovement Bond and Commanity Devetopment Btock Grant Resources The following guidelines sball apply to the use of Capital Improvement Bond and Community Development Block Grant resources: Except as noted in 2. below, the total percentage distriburion of Capital Improvement Bonds + Community Development Block Gcants for each department in � 1998 `;3t� shall be determined in one of the following ways: .. ..... a. Past Usage: Distribution equal to the total departmental percentage of Capital ImprovemenY Bonds+CommunityDevelopmentBlock Gtaats for 1988 - 1994, except for those capital functions comprising the former departrnent of Community Services. For purposes of calculating CIB + CDBG distributions, Pazks and Open Space, Libraries, and Special Facility Support will each be considered like any office or department. b. Future Need: The Planning Commission may modify the percentage allocations described in l.a. above if it determines that future needs for the � 1998 ::��tiE) period differ significantly firom past usage. The Planning Commission shall present findings Yo justify such modificarions. 2. The PIanning Commission shall consider exceptions to 1. above under the following conditions: a. If tentative commitments for any given department in �99H-- 1998 - 28�t� already exceed the distribution calculated via the methods described in 1. above. In this situation, the departmenYs tentative commiffients shall be honored, no additional projecu may be proposed by the department, and the Planning Commission sha11 rednce Capital Improvement Bond + Community Development Block Grant distributions proportionately for other departments, and shall require other departments to revise and resubmit proposals as necessary to eliminate aggregate overprogramming. If the department cannot program the tentative commitments in the PCI as they appeaz in the adopted capital budget, the CIB + CDBG allocations for each departrnent will be recalwlated using method described in l.a. above. b. Upon approval by the Mayor and Ciiy Council of a plan or policy that supports a project requiring a lazger fhan normal use of CIB and/or CDBG resources by the departrnents of Finance, Police, and/or the Division of Public Health , the Planning Commission may allow those departments to exceed their normal distribution of Capital Impzovement Bond and/or Community Development Block Grant resources. If this situarion occurs, the Planning Commission shall reduce Capital Improvement Bond distriburions proportionatety for other depattments, and shall require other departments to revise and resubmit proposals as necessary to eliminate aggregate overprogramming. No more than one such project sha11 be programmed for any single year. 38 � � � � � � � � � � � � �� � � �� � � � �5-333 PCI-7 Years ' ^^�-'� ��2�f�Q of the PCI: Unknown Financing Sources The Planning Commission shall not include projects with unknown financing sources in the Progrun for Capital Improvements for the '°°�o ��$-Z�4fl period. .. .. _ . PCI-8 Years '^^��,�^^,� ��itf€tl���� of the PCI: Distribution of Eapected .....: ........:: ... Available Financing The Planning Commission shal] not place limits on the amount of financing or number of projects indicated as needs by departments for the ' nn�^w� �{#Qp;� 2t#�4k� period. However, the Mayor's Office, Budget Section shall review pretiminary departmental submissions for the '^^r, ^�,� �{��� ��(� period and shall note situations where the total level of proposed financing will likely be unavailable. In these situations, the Planning Commission may direct the responsible departments to provide justification for their proposals, and may include such justification in the text of the '^O�—^�, ,t�?�b _�:2�lETt}5 program ,. :..:..:...,.... for Capital Improvements. PCI-9 Years �nn�� : 1 2ttfl45 of the PCI: Unknown Financing Sources The Planning Commission may allow projects with unkciown financing sources to be included in the Program for Capital Improvements for the '^°�^� 2QQ£�1-��1t1(1$ Period. If this occurs, the text of the Program for Capital Improvements should include an explanation of why the source of financing is unknown. 39 a��33� 5.0 DEFINTl'IONS Capital Expenditum - A one time expense required to upgrade or add to the physicai assets (tand and buiidings} ofthe city. In addition, capital expenditures include incentives to the private sector to develop or re-develop assets not owned by the ciTy. Cap'ttal Function - A set of capital facilities and/or programs that together provide a basic type of service. Saint Paul currently categorizes capital expenditures according to eleven capital functions: Streets, Street Lighting, Traffic Engineering, Bridges, Sewers, Pazks and Open Space, Libraries, Housing and Economic Development, Police, Fire and Safety, and Special Facility Support. Capitat System - A set of capital functions that aze necessarily coordinated in order to ensure that the services that each provides are effectively achieved. Saint Paul cuirently has one capital system - Transportation - composed of four capital functions: Sireets, Street Lighting, Traffic Engineering, aad Bridges. Capital Improvement Budget - The annual capital improvement budget shall include appropriations for all projects to be funded during the budget year that have an estimated useful life in excess of three years, other than the acquisition of office or mechanical equipment, vefiicies or mobile equipment, and minor remodeling or repairs of e�cisting structures. The annual capital improvement budget shall include the proceeds of general obligation or revenue bonds of the city authorized by law, all aids, grants, and special revenues received by the city for funding capital improvements, all monies appropriated by the City Council in the Geneml Fund and Special Fund budgets for capital projects, and all specia[ financing methods such as tax increment financing, long-term lease agreements, and sale-leaseback financing. A five yeaz program that identifies the future costs associated with multi-year capital projecTS and any additional capital projects that aze scheduled for implementation during the time of the program shall accompany each annual capital improvement budget. Capital Maintenance - The replacement, renovation, remodeling and/or retrofitting ofthe strucYccral parts aad/or service system components of a building, and the man-made components of an improved site. Structural parts include footings and foundations; beams, joists, columns; load bearing walls, exterior walls and facade (excluding glass); stairs, floors, decks, ramps, ceilings; roofs and roofing. Service systetn components include plumbing, electrical, communications, heating, ventilating, air conditioning, security systems and elevators; utility mains. Site componenfs include retaining walIs, lighting, stairs, ramps, sidewatks, railings, fencing, drainage structures, and erosion control. For maintenance purposes, the most important site components are those whose condition affects the identified structural parts or service system components. Operating Budget - The annual operating budget is a 12-month financial plan that provides for delivery of city services; support and planning for service delivery; routine maintenance; minor remodeling and repairs of e�sting structures; acquisition of vehicles, mobile, mechanical, and office equipment; and other activities having an estimated useful life of less than three yeazs. Primary financing sources for the operating budget are property taYes, federal and state aids, dedicated revenues, user chazges, and grants. 40 l, a5-333 � Program Ailocation - A prograzn allocation is a lump sum amount given to fund a series of capital pro}ects that aze consistent in nature and aze implemented sequentially in time � until an identified objective is reached. An example of a program allocation is the combined street and sewer program. � � � � � � � � � � � � � � Subsidy Allocation - A subsidy allocation is assistance that the city gives to the private sector as incentive for development or redevelopment of physical assets now owned or operated by the city. Subsidy allocations include loans, grants, matching funds, or acquisition and clearance. Tentafive Program of Commitments - A section of the Capital Improvement Budget that estimates future annual appropriations needed to complete projects that have been initiated. � 41 � � APPENDIX A q5- 333 , CITY OF SAINT PAUL MISSION STATEMENT (FI20M THE "CTfY OF SAINT PAUL 1991 BUDGET GOALS AND POLICIES") � � � � � � � � � � � 4.1 � � � Ensure the provision of high qualiTy services, which meet the people's priority needs and which enhance the long term common good of the community within the constraints of available financing sources and reasonable tasing policies. CiTy services must: be responsive to citizen needs and requests; produce effective results that aze measurable and quantified; be delivered efficiently, in a manner that is timely, courteous, and cost effective; be in conformance with applicable laws; be delivered within the context of high moral and ethical standazds; foster neighborhood livability, assist in job training job creation, and job retention; and involve citizens in the decision making process. Service delivery includes those that provide public safety, health and general welfaze. Services are to strengthen all the neighborhoods as places to live, work, play, be educated, and raise families. City employees aze essential to the delivery of quality services. The City is committed to providing a quality work place and quality services to the citizens, business community, and employees of Saint Paul. � 43 �5 - 333 APPENI3IX B PLANS AND POLICIES RELEVANT FOR CAPTTAL BUDGETING GENERAL ELEMENTS OF THE COMPREHENSIVE PLAN (Date of Adoprion) ■ Overview of the Plan (1980-81) ■ A Ptan for Land Use (1980-81)* ■ The Implementation Strategy (1980-81) * Plans now being updated CAPITAL FUNCTION PLANS AND POLICIES ■ A Plan for Streets and Highways (1980-81)* ■ Transit Plan (1980-81)* ■ A Plan for Bicycles (1978)* ■ Saint Paul Street Lighting Policy (1989) ■ Comprehensive Sewer Plan (1980-81) ■ A Plan for Pazks and Recreation (1985) ■ A Plan for Multi-Service Centers (1976) ■ A Plan for Libraries (1982)* ■ Saint Paul Housing Policy for the 1990s (1990-91) ■ Economic Development Strategy (1990-91) ■ Plan for Fue and Emergency Medical Services (1990-91) ■ Program for Capital Improvements (1992) * Plans now being updated DISTRICT PLANS ■ District I Plan (1985) ■ District 2 Plan(1988/92) ■ District 3 Plan (1981) ■ District 4 Plan (1986) ■ District 5 Plan (1979) ■ District 6 Plan (1979) ■ District 6 Land Use Amendment (1981) ■ District 7 Plan (1979) ■ District 7 Plan Update (1983) ■ District 8 Plan (1980) ■ District 9 Plau (1980) ■ District 10 Plan (1980) ■ District I1 Plan (1979) ■ District 12 Plan (1983) ■ District 13 Plan (1978) ■ District ]4 Plan (1979) ■ District 15 Plan (1980) ■ Highland Village Plan Amendment (District 15) (1984) ■ District 16 PIan (1989) ■ Downtown Development Plan (District 17) (1982) m � � , � q5-333 ■ Downtown Development Plan—Miller Hospital Site Land Use Amendment (District 17) ■ Staius of District Plans as Part af Comprehensive Plan (1980-81) SMALL AREA PLANS (Ivcludivg ptms wmpiaed for Iimi[ed meas not folmalTy desi�azed'smell mea plms7 FAS ivd�cates Forty-Aae Smdy � ■ Etna Bumingham Land Use Study (1980) ■ Grand Avenue East Design Guidelines Amendment (District 16) (1983) ■ Grand Avenue West Pazking and Zoning Report (District 14) (1983) � ■ Grand Avenue Design Guidelines Amendment (District 14 & 16) ■ YOUniversity Avenue Plan (District 11 & 13) (1982) ■ River Corridor Plan (1980/87) � ■ Downtown Fraznework (1986) ■ Summit Avenue Plan (1986) ■ Smith Avenue Plan (1984) ■ Selby Avenue Plan (1989) � ■ Lower Cathedral Hill Plan (1988) ■ Lower Dayton's Bluff Plan and FAS (1990) ■ University Avenue Comdor Study (Council Resolution 1990) � ■ Grand/L,exington Pazking Report ■ Highwood Plan ■ Near East Side Neighborhood Improvement Strategy (1989) � ■ Fort Road Design Guidelines ■ West Seventh/Chestnut Plan and FAS (1991) ■ White Beaz/Ruth Plan and FAS (1991) � ■ Wheelock Bluff/Rice Street Plan and FAS (1991) ■ South Saint Anthony Park Plan and FAS (1993) � O �� � � � � ■ Concord/Robert Plan and FAS (1492) ■ Jackson/Arlington Plan (1991) ■ East Grand Avenue Plan ■ Fast Consolidated Area Plan and FAS (1993) ■ Selby/Snelling (1993) ■ Lexington/Hamline ■ Shepard/Davern (1993) ■ Railroad Island and FAS (1994) Small Area Plans Underway ■ Thomas/Dale Plan and FAS ■ Phalen Village and FAS ■ I,owertown Projects ■ Grand/Avon/Dale Pazking Study ■ Midway Pazkway Plan and FAS ■ Brewery RanView Plan and FAS ■ Franklin/CJniversity Plan and FAS � 45 �5 APPENDIX C OVERALL BUDGET GOALS (FROM THE "CTfY OF SAINT PAUL 1991 BUDGET GOALS AND POLIC'IE5") GENERAL BUDGET GOALS GGI Maintain the fiscal integrity of the City's operating, debt service and capital improvement budgets in order to provide services and to wnstruct and maintain public facilities, streets and utilities. GG2 Maintain a responsible and prudent fiscal condition and high bond rating in order to minimize long-term interest expense when financing capital improvements with an ongoing systematic bonding prograzn that spreads the cost of the improvements to benefitting citizens. GG3 Prepaze and annually refine written goals and policies to guide the prepazation of financing spending and performance plans for the City budget. GG4 Coordinate decision making for the capital improvements budget with the operating budget to make effective use of the City's limited resources for operating and maintaining faciIities. Require departments, divisions, and offices to prepaze life-cycle maintenance plans as part of operating budget. GGS Present budget data to cirizens, City managers, and elected officials in a form that will facilitate annual budget decisions based on a malri-yeaz s�ategic planning perspecrive. GG6 ��s�rl Prepaze and evaluate activity performance plans that relate to financing and spending plans in the City budget. Encourage citizen involveraent in the budget decision-making process through public hearings. SERVICE LEVEL GOALS SGl Budget decisions Yo increase a service level or add a new program will be financed with either a new revenue source or taz increase, or by a deliberate reduction in, or elimination of existing services. Base decisions to reduce seroice levels or eliminate programs on citywide priorities and needs if revenue sources aze inadequate to maintain existing services at current program levels. Maintain programming flexibility to address priority user needs based on historical usage and demographic trends within service areas if a service is provided at many facilities throughout the city and a service level reduction is 46 � � LJ � �J � � � � � � � � q5- 333 necessary. SGZ Incorporate self reliance in both the day to day operations of the city and the development of its long range plans. SG3 Avoid duplication of services and foster cooperation with other units of govemment. Seek joint use opportunities for public faciliries with both govemmental units and non-profit organizations when effective service delivery can be provided at less cost to the City to enhance services. SG4 Recognize that City employees aze City govemmenYs most valuable asset, and, as such, their concerns, participation, and morale are crucial to delivering high qualiTy, efficient services to the residents and taxpayers of Saint Paul. SGS Employ good management practices when planning for service delivery by including in budget requests money to pursue activities, such as: ■ office automation and computer applications that increase productivity; ■ equipment modemization; ■ work-flow simplification; ■ risk managemenUemployee safety, and wellness; ■ preventive maintenance; ■ energy conservation; ■ life cycle costing and purchasing of equipment; ■ lease-purchase options for high cost equipment purchases that reduce operating expenses; ■ performance planning, reporting and evaluation; ■ employee training; ■ employee well being; ■ employee child care; and ■ competitive bidding for certain services. SG6 Modernize the physical and organizational structure of CiTy deparhnents and offices to facilitate better management of resources. Create an environment that encourages innovative problem solving and pursuit of opportunities to improve service delivery within existing budgets. � SG7 Provide adequate budget resources to address the long-term program needs for essential human service delivery coordination, better neighborhoods and economic development. � � � � � FINANCING GOALS FGl Finance essential city services or public services under contract that have a citywide benefit in the budget with revenue sources that aze generated from a broad base, i.e. property tases, state and federal aids, annual service charges and franchise fees. Finance responsive services (where the individual served controls the use of the service) with dedicated revenue and user fees that directly relate to the level of service provided. Minimize General Fund fmancing assistance to 47 �5�333 those responsive service activities thaY have a common good community benefit but cannot totally finance expenses with user fees. FG2 Minimize the impact and use of property taY financing by controlling costs and by seeking alternative financing for city services that focus on user fees for responsive services and by the upgrading and/or enhancement of the properiy ta�c base and aggessive applicarion for state, federal, and other funds as approved by the Mayor and City Council. FG3 Refine existing assessmentfinancing formulas and user fee rate structures to more accurately charge the costs of service provided to the benefitting property owners and customers served, while being sensitive to the needs of low income people. FG4 Support federal and state legislarion that provides properiy taz relief and direct aid to cities, without reliance on regressive forms of taxarion. Strive to eliminate local funding of regional and state responsibilities. Oppose legislation that imposes local service mandates without federal, state, or regional funding. FGS Seek reform of Minnesota property ta�c laws to target property ta�c relief to cities to reduce tax base disparities, and to more fairly reduce the taz burden disparity among the different classes of property. 48 � � i � � IJ �J � a5-333 :•� �► r� CAPTfAL FUNCTION ST'RATEGIES � NOTE: The Planning Commission believes the purpose of these strategies is to help ciry departments coo�dinate their plans and projects with citywide goals and policies. Therejore the Commission has not recom�nended changu bared on con:ments seceived from the public unless the department concurred CFS1 STREETS The capital program for streets primarily contains street overlay or reconstruction projects. Tr�c signal work and street lighting aze included when specified. 'I7ie basic service ►e�el for Saint Paul streets is'ci�r�y defined in "A Plan for Streets and Highways" (1979), one of three components of the City's Transportation Plan (the other two transportation components deal with bicycles and mass transit).;;::'�'��s���;a�5 u�lE �e" r�j�erI.by i3�e n� �'�ar�s�r��tr�zi� i�at#�,� ;�'l�en eagecY�cE i�r 1� aifc��€i �n e�ji � The overall goal of Saint Paul's Transportation Plan is to provide for adequate, convenient mobilily in transporting goods and people, while conserving energy and protecting the environment. The basic strategy for accomplishing this goal is to use existing streets and � highways as effectively as possible, minimizing new roadway construction and putting greater emphasis altemative modes of transportation including mass transit, pazatransit, bicycles, and pedestrians. Where feasible and safe, new road construction and major � street repair on arterial and collector streets and pazkways shall include provision for __...... ...,. appropriately marked bicycle lanes, sidewalks, or off-street paths 3�# ��'t�3ii�E,`�'itti #1� b�� y s� . a s€�ss;in�p �d:s�c�wal�s:tt�s�altat�c�;�c�t����'�elu�d:i�.t1s� 3�t�aspu�^tatzs�ri � I'�7��,P1urt The C�ty wants to encourage these altemative forms of transportation. The Bicycle Advisory Boazd will work with the Admmistration m considerat�on of street and other cap�tal projects as they affect the current Drafr Bikeway System map. � �� � � The City relies on a standard functional classification of streets as principal arterials, , minor arterials (A & B), collectors,;_pASliiqC:�ii�i�zs� and local streets. The City of Saint Paul is in the process of updating its functional classification of streets in conjunction with the Metropolitan Council. ![�ifi�r?i�Ye:ii��i°fe�s:y�&TS,:�+3e� _ ... . __ .. ...... ..... ............ .........::. aze established on a system basis, i.e., trunk highways aze to standazds set by the Minnesota Department of Transportation and streets on the state aid system are subject to state aid standards. Most of the remaining streets aze residential. The standard residential street width is 32 feet, although this width is modified by availabte right-of-way, the policy for trees, and other physical features. Three principal criteria are used to determine if a street is functioning well: Does the roadway adequately handle the volume and type of traffic expected to use it? � � 49 � � - 333 2. How does the traffic flow affect adjacent land uses? 3. How does the "streetscape" look? Is it a pteasant place to walk, bike or drive? Because of a slrategic emphasis on the beauty of the streetscape, uees are also an important component of City street work. Funds for boulevazd tree plan6ng may be included in pmject proposals, both for reconshucfion projects and for overlay projects. Pazkway projects aze included under this capital funcrion, although they are also govemed by the principles stated in CFS6. Above standard street features such as granite curbing, �sI�-gaviag, exposed aggegate concrete, and tree grates may be installed if the requesting property owners are willing to pay the addirional cost to install and maintain these systems as well as the additional liability involved. The streets capital funcrion wntributes to neig66orhood management and housing because area street improvements lead to more maintainable boulevazds. E�cperience has shown that residents do take increased pride in yazd and even home maintenance following street improvement. The increasing neighborhood improvements have and aze having a positive impact. Street reconstruction contributes to business and jobs as jobs are created by the capital projects themselves. Beyond that, street projects improve neighborhoods and in turn foster a supportive area for businesses and jobs. An efficient and welt maintained transportation system will support Saint Paul businesses who depend on the transportation system to move goods and services in a cost efficient manner. The street program conttibutes to the City's fiscal integrity by making maximum use of the existing street system, providing adequate maintenance and making minor changes. New routes aze to be added when necessary and with as little disruption as possible. In practice, most Ciry street work cunently occurs in four situations: 1. Street reconstruction in conjunction with federal, state and county road projects. Z. • > �r#e1'l�;- ;_$Aa� :�:Ci3lt�ftr;:;;(�i�: :;TZ�u�'s�: Street rehabilitation (overlay) or ,.: .... :: ..:>. .. _ . . :. , reconstruction resulting from the Department of Public Works Street Condition Analysis System. This system involves the monitoring of arterial streets on a two-year cycle and the scheduiing of overlays to proIong the life of the existing serviceable pavements, and to schedule street reconstruction for projects for pavements that have failed. The smaller overlay projects are complete by Public Works Street Maintenance forces. Complerion o€overlays saves money for the City because rehabilitation is much less expensive that 50 � , total reconstruction. � 4. �5- 333 5. Upon the completion of Wamer and Shepazd Roads and the Sewer Separation � Program, more emphasis will be placed upon reconstruction, in addition to rehabilitation, indicated by the street condition survey. � � Comment received that #5 could be deleted in view of revised #4. (See note at beginning of Appendix D.) � � E� � �J � � � � � � � � � 51 q5- 333 CFS2 STREET LIGHTING The capital program for street lighting is comprised of individual lighting projects and citywide street lighting unprovement programs. The basic service level for Saint Paul street lights is defined in the "Saint Paul Street Lighting Policy" (1989). Standazd street lighting systems consist of high-pressure sodium fixtures, spaced to meet the Public Works Department lighting standazds for traffic safety (based on the standazds of the National Illuminating Engineering Society). For reasons of aesthetics, Single Redesigned Lantern Systems aze standard throughout most of Saint Paul. Bent Straw £ixtures aze defined as standazd in the downtown/river&ont area, and on expressways and sh-eets more than 50 feet wide. Above-standazd lighting systems may be installed if the requesting property owners are willing to pay the extra costs to install and operate these systems. Findings of the Saint Paul Street Lighting Policy conclude that historic lantem street lights contribute significantly to Saint PauPs identity as a community that is aestherically sensitive and proud of its past. The street lighting program conh to neighborhood management and housing goals by strengthening each neighborhoods community . ,.. i entitv and enhancine safetv for residents. 3"4re�:�'tliaf"are°:i�aierni�ri�:t�i:�r�Ri3=is`L4i� The street lighting program contributes to the business and jobs goal as jobs aze created by the capital projects themselves. Street lighting projects contribute to improved neighborhoods and in tum foster a supportive environment for business and jobs. The street lighting program wntributes to the CiTy's Sscal integrity in that lighting systems are normally installed in conjunction with street paving projects (and thus, normally in conjunction with sewer separation). Such coordination reduces wsts significantly and minimizes the disruption associated with the project. If needed for safety purposes, less expensive "wood pole" lighting may be installed in needed azeas on a temporary basis. Energy efficient fixtures are used for all new projects, and to preserve or improve the quality of existing infrastructure. 52 � � � � �J ' , � � � � CFS3 TRAFFIC ENGINEERING The capital program for traffic engineering includes projects such as traffic signais, traffic channelization, and street signage. The program indudes financing for projects that are created through the traffic engineering section, and also for projects that are done by other agencies where the City is required to participate in the costs. When traffic engineering work is required as part of a street reconstruetion or sewer project, the financing is normally included with the lazger project. The basic service level for Saint Paul traffic engineering projects is defined by the Minnesota Manual on Uniform Traffic Control Devices. Based on this manual, the Departrnent of Public Works implements projects to help improve the safe and efficient movement of pedestrian and vehicular tr�c through the city, and to maintain the . . .........:.... ...:..:.:.....;..:..: :;.,:...,. .,:.... integnTy of the existing traffic control systems. `f'#1e';tr.�z�1e �t�g�i��in.g:p�5�,n8[Tt.�i�iie�s The capital program for traffic engineering contributes to neighborhood management and housing in two ways. First, it implements traffic improvements designed to improve safety for pedestrians, bicyclists, and motorists. Second, the haffic engineering program enhances efficiency and reduces congestion and improves tr�c flow throughout Saint Paul neighborhoods. By enhancing efficiency, reducing congestion, and improving traffic flow throughout Saint Paul neighborhoods, the traffic engineering capital program contributes to a supportive environment for business and jobs. An efficiently functioning transpoRation system links workers with jobs and customers with goods and services. � The traffic engineering program contributes to the City's tiscal integrity in that appropriate tr�c engineering projects can extend the life of other components of the City's infrastructure. � � � � r � � 53 �5- 333 �5-333 CFS4 BRIDGES The capital program for bridges includes replacement and rehabilitation projects for bridges in the city that require such projects. The Public Works Bridge Division is responsible for inspecting and maintaining approximately 300 bridges in Saint Paul to protect the safety and welfare of the traveling public. In addition, the Bridge Division is responsible for inspecting and maintaining atl retaining walls, fences, stauways and guazd rails in the CiTy's street right-of-way. The primary goal of the Bridge Division is to eliminate all structura] and geometric deficiencies in bridges and strvctures in Saint Paul, whether they be City, �uz�t3; State, Raikoad, or privately owned. The Bridge Division designs new bridges and works with relevant agencies and owners to coordinaYe maintenance and reconstructions efforts. The basic service level for Saint Paul bridges is established by state and federal regulations. Minnesota state law requires al] municipalities to inspect and rate all public bridges annually. The Bridge Division staff inspects and prepares a Bridge Inspection Report and a Minnesota Department of Transportation (MnDO"I) Structure Inventory Sheet for each bridge in the city. These reports are submitted to the MnDOT Bridge Engineer for MnDOT's inventory and to determine the sufficiency raring. The sufficiency rating is a number from 0 to 100 that is based on a formula incocporating the structure conditions, deck geometry, underclearances, safe load capacity, and approach aligrunent. This rating is used to prioritize bridges in the state for Federal Bridge Replacement and Rehabilitation Funds. A bridge with a rating under 50 is eligible for replacement funds and a bridge with a rating under 80 is eligible for rehabilitation funds. A requirement of the use of these funds is that the project rid the bridge of all structural and geometric deficiencies. The annual allotment of federal funds is limited so that even though a bridge is eligible for funding it may not receive funding allocation for several yeazs. The bridges, stainvays, retaining walls, guud rails and fencing in City right-of-way is part of Public Works' transportation system. The transportation system, consisting of bridges, streets, lighting, and traffic engineering is the primary reason why neighborhoods, businesses, and factories eacist. Without these services there would be no neighborhoods, no businesses, no jobs. Public Works has always and continues to provide the basic necessities for neighborhood management and housing and business and jobs in the city of Saint Paul. The bridge program contributes to the City's fiscal integrity in that the timety repair or repiacement of bridges can extend the life of other components of the City's infrasVUCture. (If a bridge must be closed, traffic must be rerouted onto streets that were not intended to receive such traffic.) � Comment received to review this strategy in light of Phalen Comdor needs. (See Note at beginning of Appendix D) 54 LJ , J � r CFSS SEWERS The capital prograni for sewers includes sanitary sewer, storm sewer and ponding projects. The Sewer Division of Public Works capital program is a comprehensive construction and rehabilitation of the CiTy's sanitary and storm water sewer system, and storm water ponds. � The facility maintenance and upgade of this basic service is outlined below. The program also allows a number of basic infrastructure needs to be addressed that have been identified and incorporated into the small azea plans developed throughout the City. ' � � , � , i � � � � � � � The basic service level for Saint Paul sewers is defined in the City's "Comprehensive Sewer Plan" (Part I: Storm water Management Plan--1984; Part II: Sanitary Sewer Plan--- 1985), and in a detailed amendment to the Storm water Management Plan (1986). The new Highwood Small Area Plan also addresses important sewer issues. Based on these plans, there aze three major service-level objectives relating to sewer projects in Saint Paul: 1. To maintain and replace components of the existing sewer system, thereby ensuring reliable service. To fulfill this objective, the Sewer Division operates a comprehensive sewer inspection program involving walk-through inspections of large sewers, and television inspections of small sewers. Minor problems found during these inspections aze handled by City crews while major problems ue developed as proiects and nut out to contract. '�'ti�;S�v�Y:Di�isiiSri ittteni�s::'tii::�leveliiii:� 2. To separate sanitary and storm sewers, thereby meeting state and federal water qualiTy requirements for the Mississippi River. The CiTy is currently in the midst of an accelerated ten-yeaz program for sewer sepazation, scheduled for completion in 1995. The ten-yeaz project list for this program is contained in the 1986 amendment to the CiTy's Storm water Management Plan. This project list reflects the objectives of achieving maximum impact in a minimum amount of time, and of coordinating sewer separation with other construction projects. I#��3.fC�ti�Sri-�ri�:li�ftu�*eltiTti3�titr�3 ...,....... . _ ..::....:..:..:..:..:_ ...:_:...: ,: ,,..<..,:,:.: I���c�5 5�?�Il; €es�nti�iiie?ihrai��i l�"7? 3. To provide new sewer service to developing azeas of the city. This objective applies primarily to the Highwood area of the city. A recent Small Area Plan for this neighborhood details places where sewer projects aze most needed. This plan was approved by the Planning Commission and adopted by the City Council in 1992. This capital program, which enables the City to meet both state and federal mandated 55 q5- 333 �5-33�3 This capital program, which enables the City to meet both state and federal mandated requirements for water quality, also reduces dangerous street flooding and eliminates the serious heaith hazards associated with sewer backups into homes and businesses, thereby contributing to the neighborhood management and housing goal. Through the division's ongoing prograni of inspection, infiltrarion and inflow removal, rehabilitation and facility replacement that allows the City to maintain the basic sewer infrastructure in a cost effective manner, this capital function contributes to bnsiness and jobs. The sewer program insures the community a level of service that provides a healthy living environment and also allows the CiTy of Saint Paul to assist in the development of under ufilized land. The sewer program contributes to the City's 5scal integrity through a concerted effort to reduce the cost of sewer service in Saint Paul. An important component of this effor[ is a recently-implemented program to determine the numerous sources of extraneous flows into the CiTy's sanitary sewer system. These surface and groundwater flows cause sewer capacity problems and excessive treatment chazges to the City from the Regional Wastewater Treatment Facility. Projects are being recommended to reduce or elnninate these flows. � Comment requested that an objective be added to impmve water quality through additionat and altemative stormwater management systems. The strategy should also reference and endorse the Phalen Chain of Lakes Watershed Project's long range natural resources plan. (See Note at beginning of Appendix D) 56 , � , � �5- �33 CFS6 PARKS AND OPEN SPACES The capital program for parks and open spaces includes pazks, recreational facilities, capital maintenance, and tree planting. Pazkway projects aze guided by principles that apply to pazks and open spaces, although they aze categorized under the "Streets" capital function (see Section B.i.l). The basic service level for Saint Paul pazks, open spaces, and recreational facilities is , addressed in a number of adopted plans and policies. As resources become available, the City should pursue the following development priorities: �j ■ Regional Pazks - Complete renovation of Como Park, Zoo and Conservatory, including , construction of a pazking deck - Systematically develop riverfront pazks to preserve and enhance this resource - Include trails in and between regional facilities � � , ■ City-wide Recreation - Renovation of Highland Park - Tree planting in parks, on pazkways and boulevazd azeas ■ Neighborhood Recreation and Open Space � - Improve and upgrade recreation centers to identified community needs - Acquire, preserve and develop, where feasible, passive pazk land and natural resource ateas to fiil critical gaps � Neighborhoods are a focus of community life in Saint Paul. Parks, open spaces, � recreation facilities, trees and other amenities are all components of the residential environment and contribute to the quality of life . Several themes relevant to neighborhood management and housing aze: � , � � , � 1. Develop and maintain high quality recreational facilities in neighborhoods. 2. Provide improvements to support neighborhood priorities in a manner consistent with the chazacter of the neighborhood. 3. Coordinate pazks, open space and similaz improvements with other neighborhood improvements to masimize the impact. 4. Provide basic improvements that contribute to the livability of the City. Quality public facilities are an element in providing a supportive environment for business and jobs. Parks and open spaces can be used as a tool to enhance the City as 57 �,�-333 a site for business and tourism. In addition, capital improvements provide jobs in Saint Paul. To accomplish this: Parks and open space projects that can support business priorities should be identified and phased with economic development projects. 2. Facilities that draw or support tourism to Saint Paul should be given special attenrion for maintenance and improvement 3. Recreational facilities that aze or can be self-sustaining or revenue generating should be given prioriTy considerarion for funding. The CiTy's plan for Parks and Recreation (1985) addresses ways in which the program for pazks and recreation contributes to the City's 5sca1 integrity. Three general policy themes aze presented that are relevant to the fiscal dimensions of capital budgeting: Additional land or facilities will be acquired and/or built only if it can be demonstrated that a significant need e�cists that cannot be met by other city, school, or private facilities. 2. Acquisition, construction or renovation of facilities should only be undertaken when the commitment of funding needed for programming and maintenance operations is available. 3. Efforts to make efficieat use of all eacisting resources should be continued. � The Parks Commission is concemed abaut the lack of soccer fields in the city and requests that, under the 'Neighborhood Recreation and Open Space" section, the following be added: "Acquire, if necessary, and develop soccer fields to meet identified communiTy needs." The Planning Commission recommends adding this language based on a favorable response from the Division of Pazks and Recreation. Another comment requested statements supporting preservation and restoration of wetlands and other natural azeas throughout the city, and emphasizing coordination of open space and natural resource elements with other recommendarions of redevelopment plans. (See Note at beginnmg of Appendix D) 58 , � � � �5-333 CFS7 LIBRARIES The capital program for libraries includes projects to rehabilitate and renovate the buildings in SainY Paul's library system. The basic service level for Saint Paul libraries is defined in "A Plan for Libraries" (2984). , This plan defines two features of a basic level of library service that relate to capital budgeting. However, the plan recommends that the basic level of services be financed primarily by the City's annaal General Fund Budget altocation: 1� � , � A strong Central Librazy and four azea tibraries (Highiand Pazk, Lexington, Hayden Heights, Sun Ray) which serve as the core of the library system. 2. Basic maintenance of library facilities. This may include major repairs of � A second set of features is provided to define activities that will substantially enhance and improve the qua[ity of library service delivered in Saint Paul. This set includes the following items that are relevant to the capital budget: 1. An automation system, including circulation control and an on-line catalog �, has been installed in coordination with the eight other Metropolitan Library Service Agency (MESLA) libraries. MESLA is prepared to fund up to $507,290 by fiscal year 1996, to assist the Saint Paul Public Library in � acquiring hardware and software for replacement, addition or improvement to the automation system. !J � , � � i , � 2. Rehabilitation and renovation of existing library facilities. Neighborhood libraries, we11 maintained and accessible for all, are an extraordinary feature of each neighborhood. A library is seen by neighborhood residents as the major source of information and reading materials for all ages and is a vita] neighborhood component that represents life-long leaming and a source of power. Good neighborhood management and housing grow and develop with an informed society. Well maintained librazies contribute to a supportive environment for business and jobs by offering information and services to individuals and 6usinesses working and doing business in or interested in doing business or expanding operations in the City. Libraries support the information needs of businesses throughout the City, through neighborhood branch libraries and the centra] library downtown. Employees of businesses may visit the nearest ]ibrary facility to obtain necessary information for day-to-day business activities just as neighborhood residents seeking employment may visit any City library facility to get information 4e�e}fl on how to find a job. Tl�e capital program for libraries contributes to the City's fiscal iutegrity by addressing rehabilitation and renovation needs before they become so serious as to require new consiruction. 59 g�-3�3 CFSS HOUSII�iG AND ECONOMIC DEVELOPMENT The capital program for housing and economic development includes housing activities consisting of rehabilitation incentives, cons�ucrion subsidies, partnerships to itnprove housing conditions, and homestead assistance. Econom9c development aetivities in this program include in&astructure improvements in commercial azeas, financing programs and rehabilitation incentives. The overall program also includes the Urban Revitalization Action Program, which focuses on blight removal and redevelopment in areas of the city that most need revitalization. Two plans define the basic semce level for the housing and economic development capital function: "Economic Development Slrategy" adopted by the City Council in July, 1990 and the "Saint Paul Housing Policy for the 1990s" adopted by the City Council in September, 1990. The capital program for neighbor600d management and housing includes housing activities consisting of: ■ physical rehabilitation of single family and multi-family buildings that are owner and rented occupied a gartnerships with a variety of interest goups including nonprofit development entities and other neighborhood organizafions to provide financing of neighborhood initiarives including treatment of vacant housing ��� i�ez��i� ..: �rif ...- >.: ...::: P�...:.:>, ■ home buyer assistance; and ■ infrastructure improvements in targeted neighborhoods and adjacent to housing developments Two adopted policy documents recommend a series of actions related to the management of neighborhoods that requ'ue financial resources firom Saint Paul's capital budget. Saint Paul Housin2 Policv for the 1990s 1. Strengthen neighborhood quality: The City and others must commit to multi- year action plans for meeting improvement and maintenance needs of neighborhoods. 2. Find the money to do it: The City must pmtect e�sting resources, find new resources and make sure all resources are being applied to the priority needs for neighborhood maintenance and 'unprovement. 3. Meet housing needs: The CiTy and others must e�cpand housing opportunities for low income households. The City must continue its efforts to increase .� [� �� , L' � q5- 333 available housing assistance resources. The City must develop a strategy to address the needs of its lazge and growing refugee population. 4. Preserve home ownership: The City must expand its efforts with neighborhoods and others to support home ownership in city neighborhoods for ail income groups. 5. Improve management of rental buildings: The City and others must support efforts to overcome serious management and maintenance problems af�ecting some of the rental buildings in Saint Paul neighborhoods. 6. Remove blight of vacant buildings and neglected land: The City must ensure � that action on vacant buildings is adequate to ensure a continuing reduction in the number of such properties. The City must fmd creative ways for maintaiuing vacant land. , � � �, � � � NOTE: As directed by the City Council, during the 1993 Budget Hearings, HRA and PED will develop housing strategies and housing programs that will create long term neighborhood stability. The city-wide home ownership goal will be �icria�i FI�;; as�pte� �i�i��I}� 1�� €tie ��y �aun�3l. Saint Paul Comnrehensive HousinQ Affordabilitv Strateev (CHASI Fiscal Yeazs 1992-1996 Priorities for allocating investment: l. Rental assistance, acquisition, conversion of existing units, rehabilitation, and new construction where necessary for lazge renter families. 2. Rehabilitation assistance for existing homeowners and rental properiy owners. 3. Home buyer assistance for low income families. 4. Rental assistance for homeless persons and other special needs. Economic development activities in this program include business financing programs, � infrashvcture improvements in commercial areas, rehabilitation incentives and support for Saint Paul's cultural sector. The following strategies will be pursued in order to ensure a supportive environment for business and jobs. These strategies may require financial ' resources from Saint Paul's capital budget. 1. Retain and recruit business with an emphasis on increasing the size and � E� � � strength of the CiTy's economy. 2. Facilitate small business growth through fmancial and technical assistance. 3. Maintain high quality job training programs. 4. Create and manage pazking as a vital economic amenity, both downtown and in neighborhood commercial azeas. 61 q�-333 5. Invigorate neighborhoods commercia] strips through targeted renovation, new construc6on and mazketing. 6. Reinforce Saint Paul's role as a regional center of historic, educationaI and cultural activities. 7. Invest in the public infrastructure necessary to fulfill the future objectives of the river&ont plan. Such infrastructure includes completion of the levee and flood wall improvements, design and construction of the esplanade and reconstniction of Harriet Island Pazk. 8. Continue to inscall public improvements in the downtovun in order to enhanoe and economically reinforce investrnent. These public improvements include open space amenities, entry ways, streetscapes, skyways and other pedestrian connecrions and pazking. The capital program for housing and economic development contributes to the City's Sscal integrity by strengthening the housing and commercial stock that foims most of the City's property tax base. � The strategy has been changed to conform with proposed new Policy E-7. 62 ' � , , l � � ' � �5-333 CFS9 POLICE .__ . _,�.. - - -- - --- -• ::•- -- . . .. . .. . _ . . •- - - - • - • - --• - -- - � __ �". . _ . ._:.� Y. _ _. :: Y . . ,. . . . . . . . ' � _ _ �"."" ' �" _"' . .. .- . •� " 'I""' "' � �. •-_ _ ' 1 � � � � � . _ _ �� ��� — � • _ , � __ �� _ •._•'...-. . _ �. .. '.��.. � .. .. .... :::: .... «..I:.... ��..a A�C.«,... �I... 1.....:.. i....,.1 .,F ..,.1:,... � ................y.....V...N,.vu..vfs...nrv:cTY..«..� ' � ....P,,...,-o�,..s.,.. � TMe..eF ... A...A:«.. C .. eL... �....«1 ..,J ....A:,. ,....,�.,«. ..«A Ee� b�}�di�g-�gre3ee�s-is eens��ere� s�gesu�aE:Te D-r _, ..:a.e_ ,.a .,.,..... .. _.,.,.... :.. r ..., :e .es r _ a...a:..� : .�.,...e.,, `Tn ,. .,.�,. _ ....:........a.. n.._:t in�z ., r:.. _i _ ' _ :'._,. .... .»...... .. ........... ..j.� �1.i..v....a.u...�:7 `P": � � . Y J y el ..F..,.1: e F ..:t..l 1...A..,.F... ' � �J � � 63 Q 5- 333 CFS10 FII2E AND SAFET'Y The capital program for fire services consists of building renovation and construction projects. The basic service level for fire services is defined in "A Plan for Fire Services" (1976). This plan was recently updated as the "Plan for Fire and Emergency Medical Services" which was recommended by the Fire Plan Evaluation Committee to the Planning Commission in January, 1990. The Planning Commission adopted the new plan in June, 1990. The City Council adopted the plan in December, 1991. The new plan makes the following recommendarions relative to capital needs: 1. Budget for the following improvements: a. Renovate Station 20 (2179 University Avenue) with a new addition on the west side of the building and instatlation of two overhead doors on the north side of the building to allow fire apparatus to enter frnm that side. b. Install a new roof on Station 6(33 Concord). c. Renovate the training tower during the ne�ct five yeazs. d. Install ventilation equipment for apparatus euhausts in the stations that need them. e. Equig station apparatus bay doors with door closing graemption devices that would reverse their travel should a vehicle or person enter the doorway as the door is closing. f. Adapt sleeping and restroom faciliries in all stations to accommodate female fire fighters. g. Install monitoring devices on underground fuel tanks. 2. Develop an incremental five-year capital improvement plan to begin with the 1992-1993 CIB ptanning process. The capital program for fire services contributes to neighborhood management and housing through capital repairs. Fire stations are located in the City's neighborhoods. It is imperative that they are maintained and aze a source of pride in the neighborhoods. The capital program for fire services contributes to basiness and jobs by using contracted labor for many of the projects and insures the community a level of service that provides a healthy living environment. The capital program for fire services contributes to the City's Sscal integrity by addressing rehabilitation and renovation needs before they become so serious as to require new construction, and by proposing new construction only when it is absolutely necessary. � lJ � �5-333 CFSll SPECIAL FACILTTY SUPPORT , The capifal program for "Special Faciliry Support" consists of two types of projects: ' 1. Projects that aze too specialized to fit into one of the other capital functions. Examples of ffiis include the remodeling of City Hall, and the rebuilding of the Public Health Center. i 2. Projects that aze too general to fit into one of the other capital functions. An e�mpie of t[iis type is the Capital Maintenance Program, administered by � Pazks and Recreation, a program applying potentially to a varieTy of capital functions within the city. , There is currently no adopted City p]an or policy that defines the basic level of services for this capital fitnction. ' The capitai program for Special Facility Support allows City owned facilities throughout the City to be properly maintained, enhancing the quality of life that in turn promotes the goals of neighborhood management and housing and business and jobs. L' �' � � � , ' � � � � 65 , � , �5 � 333 Reconsh (when done as part of the city-wide street improvement prograzn such as the Combined Sewer Separation and Street Reconstruction Prograzn) Residential and Commercial ' � , 25% of total cost to be assessed. The assessment rates for gading and paving 9°� �^^'•�a�^rt °*-°�� '��'�'� is escalated each year based on the Minneapotis/Saint Paul Urban Consumer Frice Index.—�tr�9S�e� in�n .....,... .. ,, ci n _e.. ,. ,...�.t,. F ... :., inni :« ..,..., ci� o� ...,a :.. . , i�o� :.:� e�n nn ..,..:.,..t..a:.,,...«..,,e. r.Rw«.. ��:��7� �,fi�P�.`!.;�:�':� ..: :. .....:. .::....:......... <... :............. ....,.:..,., j�::�SSESS��%��' �; ARTERTAL STREETS New Construction ' Variable percentage of cost to be assessed taking into account the special benefits received by the abutting properties as well as the generat benefit received by the city at luge. � (� Reconstruction Arteria] streets meeting certain criteria are to be reconstructed with no assessments being levied against abutting properties. The criteria that must be satisfied is: � 1. The street must be a street eligible for and receive its major funding from either County Aid, Municipa] State Aid, or offier funding not originating in the City of Saint Pau1. � , � � � , ' , 2. The street must be a street serving as an arterial street providing capacity for through traffic and thus providing a substantial benefit to the general public. PARKWAYS NOT ON Tf� STATE AID SYSTEM Pazkways that aze not on the state aid system and aze reconstructed in connection with the Combined Sewer Separation Program are assessed at the CSSP rates for paving, provided the street has noT been assessed for paving within the last 20 yeazs. If it has, there is no assessment. EXTRAORDINARY MAINTENANCE All extraordinary maintenance and major repair items that, in the discrefion of the Director of Public Works does not constitute reconsUUCtion wiil be funded from the Street Maintenance Fund and will not be assessed to specific properties. Asphalt overlays are to be considered as extraordinary maintenance. 67 g5 � 333 SEWERS - SANITARY New Consuuction 100% of cost to be assessed, except for city aid because of Iong side subsidy or other design constraints. Reconstruction Sewer repair and maintenance is currently financed througki the sewer service fund and therefore not assessed. The Departrnent of Public Wotks reports that there is no urgency in the foreseeable future for major replacement of sanitary sewers. The Comprehensive Sewer Plan, adopted by the CiTy Council recommends ultimately assessing 25% of the costs of major reconstruction. SEWERS - STORM RELIEF (CONIBINED SEWER SEPARATION PROGRA1t� New Conslruction Continue present policy o£ assessing a portion of the cost against benefitted properties. This is a one time assessment and is ttow escalated according to the MinneapolislSaint Paui Urban Consumer Price Index. Approximately 20% of the cost for storm re]ief systems is recovered by assessment. �-�999-aac} :.1, ��� na FIP. e C ,.s F ....,...:.1,...a:..i _ ..�h:,... ...i N !1'!G F � c J� r �1 y e..:.7e..�:.,1 ....,.....h:e.. T« t(lnt al... �..�,_ .,.. C n'S t'1 C '.i ' t C n'lo�l ........... . i....i..�.«..�. i.rvnzac � . £26�F�: STREET LIGHTING New Construction 1 �0% of cost to be assessed for all lighting consuuction costs associated either with the construction of a standard or abov�standazd lighting system or the upgrading of an existing wood pole system to a standazd or above-standatd system, except when done in connection with a City Street Improvement Progam such as the Combined Sewer Separat3on and Street Reconstruc6on Prograzn, in which case the assessment rate will 6e based on the following: Residentia] and Commercial 30% of total cost of a standard system (residenrial eqnivalent) to be assessed: -1 I�94 rates �°'�'.-`.,o �€€c ,,�8'� er assessable _. _ . �:.:::. P 68 � , ' l J � , ' � ��'-3�J foot for redesigned historic lantems; $�.48 $�:d� per assessable foot for bent straw. The assessment rate is escalated each year starting in 1991 based upon the Minneapolis/Saint Paul Urban Consumer Price Index. 7° ,°°^ °°a 'nor .s., ..,.,, . ,. c� cn .. ....�.�., a.,.. a _ �.�«L «..:a....«:..i .,..a ,. •..i ALLEY - GRAI)ING AND PAVING New Construction and Reconsh 100% of cost to be assessed against benefitted properties. CURB AND GUTTER New Construction and Reconstruction 100% of cost to be assessed against benefitted properties when constructed on , a separate basis. Long side aid applies to residential properties. When the entire street is being reconshucted, curbs and gutters aze incladed in the overall paving cost. �� � ' �J ' ' ' � ' LOCAL DRAINAGE PR�BLEMS New Construction and Reconstruction 100% of cost to be assessed against benefitted properties. WATEIt MAINS New Construction 100% of cost to be assessed against benefitted properties. Reconstruction � 69 ..r.n!�s���t �5-333 UTILITY SERVICE CONNECTIONS The utility setvice connection referred to in this report is that portion of the service connection running from the street main to the property line. The por[ion running from the property line to the building is the exclusive responsibility of the property owner, New Construcfion 100% of cost to be assessed against benefitted properties. Replacement The cost for replacing -°°..�� sewer service connections to be the responsibility of the affected property owner. _.. . . . _... .. _ .. ��ittt��i� LONG SIDE SUBSIDY FORMUI.A FOR SIDEWALK CONSTRUCTION AND RECONSTRUCTION RESIDENTIAL PROPER'I'IES New Construction and Reconstruction (Aid and Non-Aid Sveets) Long side subsidy only for the first 150 feet. COMMERCIA.L PROPERTIES Commercial properry is given no ]ong side subsidy. 70 ' ' , , � � ' u , (� � APPENDIXF ��- ��� ESTIMATED FlNANCING SOUfiCES FOR SAINT PAULCAPRAL IMPROVEMENTS 1996 — 2000 Note: Amountfa Capital Improvement Bonds refers to the maximum allowed by State Law. Lower Iimits may be established by the ' Joint Debt Advisory Committee and the City Council. � , ' � ' ' ' �1 * Beginning in Y994, the City must compete with other municipatities in Ramsey Countys capital allocation process. *`Amount for capita( projects only. Fundirg fw maintenance is not incfuded. **' 1996 funds will be spend in � 996 and 1997. '" Estimated