Longterm capital presentation 2011

8/7/2019 Longterm capital presentation 2011

1/21

1

Fisc a l Advisory C o m m i t t e e

Rec om m endat ions fo r Long- Term Cap i t a l Needs

Town of Duxbury

Annual Town MeetingMarch 12, 2011


2/21

2

Long-Term Capi t a l Review

Definition of Capital: Total purchases that exceed $25K and have

an estimated life of 3 Years or moreCapital Funding Cash Expenditures from the Annual Budget

Borrowing under the Levy Limit

Capital Expenditure Exclusion-adds to tax bill Debt Exclusion-adds to tax bill


3/21

3

Vehicles and Equipment

Building Maintenance & OfficeEquipment

Building Renovation / Construction

Capi t a l Ex pend i t u re Ca t egor i e s


4/21

4


Vehicles and Equipment Reviewed inventory of assets Over 150 Vehicles are

owned and operated by the town. Estimated life for accounting and actual use Actual life

varies for the type of usage

Estimated replacement cycle Expenditures typically from Capital budget and Borrowing

within the Levy Limit

Recommend replacement of repetitive purchases be movedto the Operating Budget


5/21

5

Vehic les and Equ ipm ent

Assumes Actual Life averages four yearslonger than accounting life Total Purchase

value of $6.3MM for all Town owned VehiclesAverage Expenditure of $650K per yearTo be funded with Cash and Debt within theLevy limit

-200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,0001,800,000

Vehicle


6/21

6


Building Maintenance and OfficeEquipment

Includes repairs to roof, carpet, flooring, furniture,computers, copiers, etc.

Fiscal Advisory and Finance Director are working tomove these expenditures to the Operating Budget

Establish a Central Maintenance Budget that is sharedamong all town departments


7/21

7

Bui ld ing Ma in t enanceand Off i c e Equ ipm ent

-200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,0001,800,0002,000,000

Maintenance

Actual expenditures from 2003 to 2010

Annual average going forward - $750K per yearThere is discussion of increasing this expenditure after building projects arecomplete to better maintain properties to delay replacementFiscal Advisory recommends this be paid from funds within the Levy Limit Operating or Capital Budget


8/21

8


Buildings and Real Estate Inventory of Town Owned and Operated Buildings and

Real Estate

Estimated replacement schedule for the period fromFY2010 to FY2029

Expenditures will be primarily Debt Exclusions


9/21

9

Bui ld ings and Rea l Es t a t e

-100,000200,000300,000400,000500,000600,000700,000

Building

Actual expenditures from 2003 to 2011These are the expenses under the levy limit.Fiscal Advisory recommends Building Maintenance be paid fromdebt inside the Levy Limit Operating or Capital Budget


10/21

10

Capi t a l Ex pend i t u res

Duxbury should set aside $1.5 million per year withinthe tax levy for vehicles, equipment, buildingmaintenance and debt service.

FY2012 budget (within the levy)$1300K for Budgeted Capital in FY2011$ 625K for Debt Service

Total $1.9 million

Large building and construction projects should becarried as a debt exclusion.


11/21

11

Bui ld ing Pro j ec t s

Crematory Replacement - $2.6 millionAssumes 15 Year borrowing with Level Principal Payments

Level Principal Payments is the method of financing Duxbury traditionally uses Estimated to add ~$41 to Median Tax Bill in FY2013

Fire Station Renovation - $3.7 million $292K Design in FY2011 and $3.7MM in FY2012 Assumes 15 Year borrowing with Level Principal Payments


Police Construction $6.275 million Design and Building costs in FY2012. Assumes 20 Year borrowing with Level Principal Payments



12/21

12

Bui ld ing Pro j ec t s

Combined High School and Middle School Total Cost of $130 million for new construction Finance in FY2014 (adds ~$733 to Median Tax Bill)

43% reimbursement from the State due to Model School Design

Assumes 25 Year borrowing with Hybrid Debt Service Payments Hybrid Debt Service Payments are level payments for the first ten years The remaining payments are Level Principal Payments

Similar to a Home Mortgage payment for ten years Level Principal Payments are the method of payment Duxbury traditionally uses The change is made to level overall School Debt Service including the Alden/Chandler/PAC borrowing rolling off in

10 years from now.

Current request of $2.9 million for Design Building Funding at Special Town Meeting Fall 2011


13/21

13

Fut u re Bu i ld ing Pro jec t s

DPW Building and Yard - $6million This will replace the current facility and the water department facility and provide a unified DPW work space with room to store equipment in the garage Finance in FY2015+ (adds ~$82 to Median Tax Bill)

Other long-term projects may include repairs to the older buildings, Sea Walls and Powder Point Bridge renovation.


14/21

14

Tow n of Dux bury Deb t Se rv ic e

-

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.005,000,000.00

6,000,000.00

7,000,000.00

8,000,000.00

9,000,000.00

10,000,000.00

2009

2011

2013

2015

2017

2019

2021

2023

2025

2027

2029

2031

2033

2035

2037

TOTAL INTEREST

TOTAL PRINCIPAL

Assumes all building projects are approved as proposed


15/21

15

Tow n of Dux bury Deb t

-

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

7,000,000.00

8,000,000.00

9,000,000.00

10,000,000.00

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

Total GO P & I

Water Total

Total Exempt P& I

Assumes all project approved as proposed


16/21

16

To w n o f Du x b u r yDeb t Levy Es t im a t e s

Based on Current Impact

-

200.00

400.00

600.00

800.00

1,000.001,200.00

1,400.00

2009

2011

2013

2015

2017

2019

2021

2023

2025

2027

2029

2031

2033

2035

2037

Assumes current impact on Median Tax Bill


17/21

17

To w n o f Du x b u r yDeb t Levy Es t im a t e s

New Based on Current Impact

-200.00

400.00

600.00

800.00

1,000.00

1,200.00

200920

1020

1120

1220

1320

1420

1520

1620

1720

1820

1920

2020

2120

2220

2320

2420

2520

2620

2720

2820

2920

3020

3120

3220

3320

3420

3520

3620

3720

38

Current Impact on Median Tax Bill of proposed new buildings


18/21

18

To w n o f Du x b u r yM e d ia n Ta x L e vy Es t i m a t e sEst im a ted Tax Levy Based on 2 % Grow th Ra te

0

2000

4000

6000

8000

10000

12000

14000

2011

2013

2015

2017

2019

2021

2023

2025

2027

2029

2031

2033

2035

2037

Current Tax Bil l Based on Current Impact CPA


19/21

19

Capi t a l Planning

Anticipated Construction Outlay Estimated $96 million over the next 10 years MSBA reimbursing $55 million of DMS/DHS building

Cost of Debt Exclusion Estimated addition of $1,000 in highest year to Median

tax bill (~17% increase) Amount added to tax rate decreases each year as

older projects roll off, interest expense declines

Debt Exclusion paid off by FY2038 for allcurrently anticipated projects


20/21

20

Assum pt ions fo r Plan

All anticipated projects approved andcompleted as presented by the respectiveBuilding Committees

Borrowing interest rate assumption of 4.25% to4.83% based on Eastern Bank PresentationAverage Vehicle Life based on current fleet(over 150 vehicles):

o Cars - 8 yearso Pickups - 10 years,o Large Trucks 15+ years


21/21

21

To w n o f Du x b u ry

Fiscal Advisory Committee

Long-Term Capital Plan FY2012

Documents

Longterm capital presentation 2011