City Council

MURFREESBORO CITY COUNCIL Regular Meeting Agenda September 12, 2018 11:30 a.m. Council Chambers New Business 1. Organizational Update. 2. CIP Allocation. Other Business Adjournment  COUNCIL COMMUNICATION Workshop Meeting Date: 9/12/2018 Item Title: Organizational Update Department: City Manager’s Office Presented by: Craig Tindall Summary Update on reorganization of City’s administrative structure. Background Information In July, Council was presented with a plan of reorganization. With the formation of the last Division this week, that plan is now complete. The restructuring of the City’s administrative staff is intended to improve the management structure of a City by creating function divisions under the guidance and mentorship of executive directors. The executive directors are tasked with improving customer service by streamlining process and assure coordinated prioritization of workflow. Executive directors will also lead department directors, and in some case manage a department, based on values that the organization will adopt as its guiding principles. These values will serve as the foundation for development of a culture of excellent customer service. They will also guide staff in the fulfillment of Council’s vision for the City. Attachments: 1. Organization Chart  City Council City Judge City Attorney Recorder/Treasurer Schools Ewing Sellers Adam Tucker City Manager Melissa Wright Linda Gilbert Craig Tindall Public Information Director Mike Browning Assistant City Manager Assistant City Manager Budget & Finance Development and Coordination Jim Crumley Gary Whitaker Asst City Manager Executive Director Executive Director Executive Director Executive Director Fire Chief Police Chief Darren Gore Sam Huddleston Chris Griffith Paul Boyer Angela Jackson Mark Foulks Mike Bowen Utility Development Internal Community Fire Police Public Works Enterprises Services Services Services Electric Planning Engineering Parks Info Technology Nate Williams P.D. Mynatt Donald Anthony Chris Griffith Chris Lilly Joint Operations Water Resources Building & Codes Transportation Golf Task Force Jim Kerr Human Resources Darren Gore Robert Holtz Pam Russell Senior Center Community Streets Connie Rigby Airport Development Raymond Hillis` Communications Chad Gehrke John Callow Alan Bozeman Grant Urban Administration Solid Waste Joey Smith Environmental Purchasing Cynthia Holloway Paul Boyer 304 102 425 208 336 Personnel 39 Fleet (FTE & PTE) Jack Hyatt Facilities Parking Garage Ron Dennis Civic 58 Plaza  COUNCIL COMMUNICATION Meeting Date: 9/12/2018 Item Title: CIP Allocation Department: City Manager’s Office Presented by: Jim Crumley Summary Allocation of 2019 Capital Improvement Plan Background Information The proposed Capital Improvement Plan (CIP) for 2019 calls for over $91.7M in projects. The issuance of debt to accommodate this plan is outside the Council Adopted Debt Policy Guidelines and Council goal set during the year’s budget process of issuing only $60M for new debt in 2019. The adopted limit maintains the debt policy guideline at $2,600 per capita and uses the special census population of 122,904. It also furthers the goal of limiting the use of the General Fund Balance for the operating budget. To attain the 2018-2019 budget goals and stay within policy, $31.7M of projects would have to be cut or deferred from the 2019 CIP. Fortunately, however, some additional funds are available to reduce the amount of cuts to the 2019 CIP that would otherwise be required. First, the 2018 General Fund bond issue sold at a premium. A bond premium results when a bond’s stated coupon rate (the amount of interest that is paid on the debt) is higher than the prevailing market interest rates. Investors will, therefore, pay more for a higher interest rate bond. The City’s issue of $71M sold for $75,784,800, a premium of $4,784,800. This 2018 bond premium can be programmed for any of the uses approved in the 2018 bond issue. Those approved uses are: 1. City Hall and other public buildings and related equipment, 2. Community Technology Center, 3. Airport terminal, facilities, and related equipment, 4. Fire and Rescue buildings, vehicles, and related equipment, 5. Police headquarters, facilities, vehicles, and related equipment, 6. Parks and Recreation buildings, facilities and related equipment, 7. Solid Waste equipment, 8. Streets, roads, bridges, plazas, sidewalks, lighting, drainage, streetscapes, and signage and related department vehicles and equipment, 9. Public works vehicles and related equipment, and 10. Communication and technology improvements related to or in connection with the foregoing public works projects; Secondly, the City budgeted $1M for closing cost of the 2018 bond issue. Actual closing costs were much less. When combined with closing cost savings from the 2012 and 2016 bond issues, an additional $1,328,000 is available to be allocated to other projects. In summary, with the 2018 bond premium and unspent budgeted closing costs there are $6,113,000 available to apply to capital projects that were previously approved and consistent with bonds covenants. After consideration, the following uses of the 2018 bond premium are recommended. 1. The reductions to capital in the 2018-2019 were severe, but necessary to achieve the goal of reducing the long-term use of fund balance in the General Fund. Cuts of $881,500 in four departments, Parks and Recreation, Fire and Rescue, Police and Street, are recommended to be restored. 2. Two projects have substantial gaps in funding. The latest round of renovations for City Hall were not included in any prior funding. Cost of this project is approximately $300,000. 3. The second project is a dehumidification system at Patterson Park pool. First bids received were more than $850,000 and the confidence level in the design and construction team convinced staff not to recommend that solution. Staff recommends having an expert engineering firm in indoor pools review and modify the design, followed by rebidding the project. An additional $500,000 is needed for the project. 4. The balance of the funds, approximately $4.4M, may be used to reduce the required cuts in the proposed 2019 bond projects. Additionally, there are some natural reductions in the proposed CIP that should make the decisions easier. Council has already determined to postpone construction on Blackman Park while studies on the best potential use of the property are underway. Removing Blackman Park from the list will also allow for the deferral of roadway improvements on Burnt Knob. These two projects make up $15M of the needed $27.3M reduction. Another project suggested for removal from the proposed CIP is the $2.5M for a new School bus garage. City Schools has received $5.3M from shared Rutherford County School bonds. This provides all additional required funding for the School bus garage and any shortages on the new St. Andrews Road elementary school. The two projects related to Cherry Lane and a new interchange at I-840 are not ready to proceed to construction, so an additional $4.175M can be removed with those undertakings. To assist in setting the 2019 CIP, an inactive worksheet was emailed to Council and will be presented at workshop. Council reach a consensus at the Workshop to provide direction on projects that the City will undertake over the next several months. 2 Attachments: 1. Bond Funds Available for Reallocation 2. 2019 CIP Worksheet 3  Outstanding Debt (including $33m 2019) Policy 1: 33% of Operating Budget Policy 2: 25% of Taxable Real Estate Policy 3: $2,600 per capita P1 Max Debt Population Population Date Principal Interest Total P+I Debt Balance Revenue Service Capacity P1 Capacity P1 Max Debt Taxable Real Estate P2 Max Debt P2 Capacity P3 Max Debt(1) P3 Capacity(1) P3 Max Debt(2) P3 Capacity(2) Diff Service CoM US Census 2019 29,856,764 9,323,424 39,180,187 277,818,747 164,952,853 54,434,441 15,254,254 169,602,708 447,421,455 14,660,228,803 366,505,720 88,686,973 122,904 319,550,400 41,731,653 136,372 354,567,200 76,748,453 35,016,800 2020 30,347,063 9,068,528 39,415,591 247,471,685 169,076,674 55,795,303 16,379,711 182,115,977 429,587,661 15,393,240,243 384,831,006 137,359,322 126,591 329,136,912 81,665,227 140,463 365,204,216 117,732,531 36,067,304 2021 28,586,279 8,111,660 36,697,939 218,885,406 173,303,591 57,190,185 20,492,246 227,840,733 446,726,139 16,162,902,255 404,072,556 185,187,150 130,389 339,011,019 120,125,613 144,677 376,160,342 157,274,936 37,149,323 2022 23,263,399 7,160,785 30,424,184 195,622,007 177,636,181 58,619,940 28,195,755 313,491,332 509,113,338 16,971,047,368 424,276,184 228,654,177 134,301 349,181,350 153,559,343 149,017 387,445,153 191,823,146 38,263,803 2023 24,181,541 6,322,428 30,503,969 171,440,466 182,077,085 60,085,438 29,581,469 328,898,233 500,338,699 17,819,599,736 445,489,993 274,049,528 138,330 359,656,790 188,216,325 153,488 399,068,507 227,628,041 39,411,717 2024 25,204,209 5,405,578 30,609,787 146,236,256 186,629,013 61,587,574 30,977,787 344,423,036 490,659,293 18,710,579,723 467,764,493 321,528,237 142,479 370,446,494 224,210,238 158,093 411,040,563 264,804,306 40,594,068 2025 20,935,558 4,553,957 25,489,515 125,300,698 191,294,738 63,127,264 37,637,749 418,471,070 543,771,768 19,646,108,709 491,152,718 365,852,020 146,754 381,559,889 256,259,191 162,835 423,371,779 298,071,081 41,811,890 2026 21,630,917 3,855,489 25,486,406 103,669,781 196,077,106 64,705,445 39,219,040 436,052,476 539,722,257 20,628,414,145 515,710,354 412,040,572 151,156 393,006,686 289,336,904 167,720 436,072,933 332,403,152 43,066,247 2027 18,623,286 3,272,800 21,896,086 85,046,495 200,979,034 66,323,081 44,426,996 493,956,549 579,003,044 21,659,834,852 541,495,871 456,449,376 155,691 404,796,886 319,750,391 172,752 449,155,121 364,108,626 44,358,235 2028 19,166,665 2,730,707 21,897,373 65,879,830 206,003,510 67,981,158 46,083,786 512,377,382 578,257,212 22,742,826,595 568,570,665 502,690,835 160,362 416,940,793 351,060,963 177,935 462,629,774 396,749,945 45,688,982 2029 16,534,830 2,145,982 18,680,812 49,345,000 211,153,598 69,680,687 50,999,875 567,036,372 616,381,372 23,879,967,925 596,999,198 547,654,198 165,173 429,449,017 380,104,017 183,273 476,508,668 427,163,668 47,059,651 2030 14,370,000 1,627,513 15,997,513 34,975,000 216,432,438 71,422,704 55,425,192 616,238,757 651,213,757 25,073,966,321 626,849,158 591,874,158 170,128 442,332,487 407,357,487 188,771 490,803,928 455,828,928 48,471,441 2031 14,825,000 1,174,778 15,999,778 20,150,000 221,843,249 73,208,272 57,208,495 636,066,206 656,216,206 26,327,664,637 658,191,616 638,041,616 175,232 455,602,462 435,452,462 194,434 505,528,046 485,378,046 49,925,584 2032 8,505,000 701,833 9,206,833 11,645,000 227,389,330 75,038,479 65,831,646 731,941,749 743,586,749 27,644,047,869 691,101,197 679,456,197 180,489 469,270,536 457,625,536 200,267 520,693,887 509,048,887 51,423,351 2033 8,790,000 414,418 9,204,418 2,855,000 233,074,063 76,914,441 67,710,023 752,826,272 755,681,272 29,026,250,262 725,656,257 722,801,257 185,903 483,348,652 480,493,652 206,275 536,314,703 533,459,703 52,966,052 2034 2,855,000 114,200 2,969,200 (0) 238,900,915 78,837,302 75,868,102 843,530,950 843,530,950 30,477,562,775 761,939,069 761,939,069 191,480 497,849,111 497,849,111 212,463 552,404,145 552,404,145 54,555,033 307,675,511 65,984,078 373,659,589 Assumptions: Growth Rate 2.50% Growth Rate 5.00% Growth Rate 3.00% Growth Rate 3.00% i‐Rate 4.00% Term (yrs) 15  2019 CIP ALLOCATION WORKSHEET Department Project Cost Estimates Staff Recommendations Council Direction Total Project 2019 Expense 2019 Total Select Expense Select Expense Administration ADA Renovations 300,000 300,000 x 300,000 Franklin Synergy/First Methodist Renovation 2,000,000 2,000,000 x 2,000,000 Historic Bottoms/Highland Redevelopment 1,000,000 Subtotal Administration 3,300,000 Airport Airport South Apron Development 2,000,000 2,000,000 x 2,000,000 Airport Terminal 5,000,000 2,000,000 x 1,000,000 Subtotal Airport 4,000,000 Street Equipment 727 727,000 x 727,000 Subtotal Street 727,000 Fire and Rescue Air Packs 800,000 800,000 x 800,000 Fire Engine 10 1,200,000 1,200,000 x 1,200,000 Fire Station 3 Reconstruction 500,000 x 500,000 Subtotal Fire and Rescue 2,500,000 Police Doug Young Public Safety Training Center 3,000,000 x 3,000,000 Police Information Technology Replacements 400,000 x 400,000 Police Public Safety Software 50,000 x 50,000 Police Vehicles Marked 1,800,000 x 1,800,000 Police Vehicles Unmarked 400,000 x 400,000 Subtotal Police 5,650,000 Recreation Parks Cannonsburgh 420,000 x 420,000 Parks Greenway North Connector 300,000 x 300,000 Parks Greenway Phase Four 3,000,000 x 3,000,000 Parks Greenway Reconstruction 100,000 x 100,000 Parks Jordan Farm Soccer Complex‐Restroom 350,000 x 350,000 Parks McKnight Park Renovations 200,000 x 200,000 Parks Oakland 80,000 x 80,000 Old Fort Improvements 2,385,000 Parks Blackman Park 10,000,000 Subtotal Recreation 16,835,000 Schools St Andrews 33,000,000 32,000,000 x 32,000,000 School Bus Garage 2,250,000 Subtotal Schools 34,250,000 Solid Waste Equipment 540,000 x 540,000 Recycling Center Improvements 160,000 x 160,000 Subtotal Solid Waste 700,000 Transit Transit Center 220,000 x 220,000 Subtotal Transit 220,000 Transportation Brinkley Road Reconstruction 2,000,000 x 2,000,000 Burnt Knob Reconstruction 5,000,000 Caroline Farms 500,000 x 500,000 Cherry Lane Extension and I‐840 Interchange 2,175,000 Cherry Lane Extension‐Phase Two 2,000,000 Jones Boulevard Improvements 5,000,000 x 5,000,000 Mercury Boulevard Sidewalks 160,000 x 160,000 Racquet Club Drive 300,000 x 300,000 Robert Rose 100,000 x 100,000 Rucker Lane Reconstruction 4,450,000 x 4,450,000 St. Clair Street 1,500,000 Sulphur Springs Rd. Phase 1 350,000 x 350,000 Subtotal Transportation 23,535,000 Grand Total 91,717,000 Debt Capacity Model Target 60,000,000 Bond Premiun and Closing Costs 4,400,000 2019 CIP Reductions 27,317,000 2019 CIP Funds Available 64,400,000 64,400,000 Selected Projects Total 64,407,000 ‐ Balance Available (7,000) 64,400,000