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

2. 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

3. 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

4. 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

5. 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

6. Operation and Maintenance 5 year

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

8. 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
$ ,580
$ ,263
Net
Using a 5 year interval the mil rate would need to increase an average of to cover the increase from the Current Facilities option (approx. an additional $77 on a $100K home)
*Assumes mil rate of 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.

9. Operation and Maintenance 10 year

10. 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.

11. 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
$ ,744
$ ,219
Net
Using a 10 year interval the mil rate would need to increase an average of to cover the increase from the Current Facilities option (approx. an additional $35 on a $100K home)
*Assumes mil rate of 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.

12. 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

13. 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.