Financial Considerations CITIZENS ADVISORY COMMITTEE FOR PUBLIC SAFETY FACILITIES December 5, 2018 Financial Considerations

Recap Last Meeting Presentation by Port City Architecture Option A: A combined facility on Birds Eye Site Option B: A stand-alone police station on Birds Eye Site Option C: A stand-alone police station on excess Fire/EMS property Option D: A combined facility on current Fire/EMS site Option E: A stand-alone police station near County offices Majority vote of the committee: No longer consider Mecon Building site as an option Only options A and B should be considered further A financial impact study should be done to understand impact to citizens

Options Clarification Fort Street Option A – Combined Police/Fire/EMS Highway 1 The first floor would be a daylight garage primarily for fire and ambulance. The second floor would house offices and shared spaces. N

Options Clarification Fort Street Option B – Expandable Police Station Highway 1 The first floor would be unfinished daylight garage and storage. To be converted to Fire/EMS garage in future. The second floor would house Police. Future phase would add Fire/EMS N

Financial Analysis Assumptions 2018 Budget and expenses used as baseline Police cost are 1/3 of City Hall + Department Options Status Quo – Departments remain where they are and construct space modifications for as reasonably possible Police Station on Birdseye site that will accommodate Fire/EMS addition New facility on Birdseye site that will accommodate both departments 5 year & 10 year outlook Must build new Fire station in 7 years if only police is built now Under status quo a combined facility is built in 7 years

Operation and Maintenance 5 year

Comparison to Status Quo Debt Service Comparison to Status Quo ** Assumes 30 year bond with average 6% rate

Current Facilities Standalone police Combined Police/Fire/EMS Total 5 year - $ 94,800 Difference Revenue* Current Facilities Standalone police Combined Police/Fire/EMS Total 5 year Cost $ 1,744,596 $ 3,907,493 $ 3,325,911 Difference - $ 2,162,898 $ 1,581,315 Annual Difference $ 432,580 $ 316,263 Net Using a 5 year interval the mil rate would need to increase an average of .00077 to cover the increase from the Current Facilities option (approx. an additional $77 on a $100K home) *Assumes mil rate of 0.0237 remains constant and value of building remains at $800,000. Does not include commercial personal property revenue. Current Facilities revenue would not begin until year 7 when Fire station is relocated.

Operation and Maintenance 10 year

Comparison to Status Quo Debt Service Comparison to Status Quo ** Assumes 30 year bond with average 6% rate. Debt payments for Current Facilities represents only 3 years.

Current Facilities Standalone police Combined Police/Fire/EMS Total 10 year $ 56,880 $ 189,600 Difference - $ 132,720 Revenue* Current Facilities Standalone police Combined Police/Fire/EMS Total 10 year Cost $ 5,463,074 $ 7,684,273 $ 6,905,262 Difference - $ 2,107,439 $ 1,442,188 Annual Difference $ 210,744 $ 144,219 Net Using a 10 year interval the mil rate would need to increase an average of .00035 to cover the increase from the Current Facilities option (approx. an additional $35 on a $100K home) *Assumes mil rate of 0.0237 remains constant and value of building remains at $800,000. Does not include commercial personal property revenue. Current Facilities revenue would not begin until year 7 when Fire station is relocated.

Financing Options No Yes Public Safety Grants (e.g. USDA) Requires Referendum No Yes Public Safety Grants (e.g. USDA) Likely cover only a portion of the cost City General Obligation Bond through local institutions Voter Determined local property tax increases City General Obligation Bond through Government Loan sources (Most recent quote was 5% for 30 years through USDA) Public, Private, Partnership Essentially a private build to suit with purchase option and annual lease. Council could raise mil rate to cover cost without a vote

CITIZENS ADVISORY COMMITTEE DISCUSSION & RECOMMENDATION? Majority of Committee voted to recommend the City Council approve moving forward with the combined facility in order seek grants and prepare a funding package for voter consideration in 2019.