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Space Needs Study by MacKenzie presented to City Council on March 14, 2013 Study Session. Current location does not meet seismic requirement for Essential Facility and Public Safety should not be housed in this City Hall building.
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POLICE NEED
Determined to be a facility of 42,423 ft with a parking structure of 223 stalls. City-owned property on 10th St at Ivy St. Cost of recommended facility is $21.6 Million.
(including parking garage and cost of debt)
POLICE NEED
Considerations already made:
Construction on City-owned property - no cost for land Surface parking lots and pedestrian improvements to be paid out of budgeted funds (-$700,000) Proposed facility allows for 20-25 year growth; after that substations/precincts
FUNDING OPTIONS
Police $ 21.6 Million Fire $ 10.4 Million $ 32.0 Million Total bond needed What are the funding options available and what are the estimated costs? What are the revenue options to meet that cost?
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SOME CONSIDERATIONS:
First discuss the BOLI issue and the potential for cost savings.
Comparison was BOLI wage rate vs AGC Union rate. Non-Union rates are not included.
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CONSIDERATIONS(cont):
Not as much potential for savings as anticipated in a non-BOLI job. The estimate is in the 3% to 5% range. This type of construction is generally at union scale, so the savings are minimal. These types of facilities would be BOLI wage jobs under the definition of ORS 279C.840 in standard government financing (Bond Options #1 and #2). In order to avoid BOLI, the City would have to use other funding options (NNN/Lease, Debt/Equity) that are not recommended.
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FUNDING OPTIONS
We reviewed/examined other funding options:
Bond Option #1 (General Obligation Bond) Bond Option #2 (Full Faith and Credit Obligation Bond) Lease Triple Net Option Debt/Equity Option 63/20 Option
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Canby Gresham Keizer Klamath Falls McMinnville Monmouth Roseburg Sandy Springfield Troutdale West Linn Woodburn
Urban Renewal Urban Renewal Urban Renewal Bond Measure Bond Measure Bond Measure Urban Renewal Urban Renewal Bond Measure Bond Measure Bond Measure Bond Measure
CONSTRUCTION PERIOD 08/2011 08/2012 03/2013 12/2013 03/2008 early 2009 05/2009 07/2010 03/2007 06/2008 Passed in 05/2013 04/2008 11/2009 08/2009 09/2011 02/2008 02/2009 10/2011 09/2012 started 09/2013 09/2005 10/2006
FUNDING OPTIONS
We and our consultants agree that a Full Faith and Credit Bond (Bond Option #2) is the recommended funding option: City of Medford has bonding capacity Does not require a referendum approval We have an identified revenue source to meet the interest/principal payment More timely to implement
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Bond Option #2
Project Costs for Both Police and Fire:
Police Facility
Building,Garage & Parking lot Land - City owned Parking lot - "pay as you go" Cost of Issuing Debt Amount needed 21,900,000 (700,000) 400,000 21,600,000
Fire Facilities
New Fire Station & All Renovations Land for the new fire station - City owned Some Renovations - "pay as you go" or eliminated Cost of Issuing Debt Amount needed 16,600,000 (6,400,000) 200,000 10,400,000
$ 32,000,000 $ 2,000,000
* Average assessed value for Medford residence * This would require referendum approval if tax rate increased
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When the Street Fee surcharge is removed, increase the Public Safety Facility Surcharge to $4.82. This will generate an estimated $2.5M per year.
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$50.00
$40.00
$30.00
$7.71
$20.00
$7.71 $8.45
$7.71 $8.45
$7.71 $8.45
$7.71 $7.71
Storm
$8.45
$8.45
$5.63
Street
$10.00
$15.85
$0.00 Current Fees
$15.85
$15.85
$15.85
$15.85
$15.85
Sewer
Initial Fees
2015
2016
2017
2018
Total: $49.71
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$51.71
$51.71
$51.71
$51.71
$51.71
$51.71
Medford has a very low utility fee rate which includes the street fees. With the $2.00 per month increase, we are still at the same ranking for utility fees. 23
$50.00
$40.00
$30.00
7.71
$20.00
7.71 8.45
7.71 8.45
7.71 8.45
7.71 8.45
7.71 7.71
Storm
8.45
8.45
5.63
Street
$10.00
15.85
$0.00
15.85
15.85
15.85
15.85
15.85
15.85
Sewer
Current Fees
2013
2014
2015
2016
2017
2018
Total: $49.71
$52.39
$52.39
$52.39
$52.39
$52.39
$52.39
This includes a proposed Public Safety Facilities Surcharge ($2.00) and possible Park fee increase ($0.68) 24
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$50.00
$40.00
$30.00
9.57
9.57
9.57 9.57
Storm
9.71
9.71
9.71
$20.00
8.45
6.89
Street
$10.00
15.85
$0.00
15.85
17.45
18.26
18.26
18.26
18.26
Sewer
Current Fees
2013
2014
2015
2016
2017
2018
Total: $49.71
$52.39
(included in graph)
$56.02
$57.92
$57.92
$57.92
$57.92
Possible increases:
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$0.68 in 2013 $1.23 in 2014 and $0.63 in 2015 $0.80 in 2014 and $0.46 in 2015 $1.60 in 2014 and $0.81 in 2015
Bend
General Obligation Bonds $0
Gresham
$0
Springfield
$25.8M
Medford
$ 3.1M
$64.4M
$74.1M ($23.6M)
$0
$49.7M ($20.9M)
$15.0M
$8.3M
$30.8M
$25.9M ($ 5.0M)
$79.4M
$58.8M
$56.6M
$52.8M
RECOMMENDATIONS:
Move forward with the proposed Public Safety Facility Surcharge plan. Come back to Council in the next 60 days with a finalized plan to implement the code change. Council direction.
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Thank you
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