5.2. & 5.3. SR 06-24-2002 - Laserfiche WebLink

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Another consideration to add money to the project would be to use reserve funds. Finding approximately $100,000 would be a challenge but could be done. The hope would be that all of the building construction contingency will not be needed and, therefore, that these other reserve funds will not be needed for the project. Altogether the above figures for removal of' the Geothermal ($250,000), removal ore the upstairs shell ($165,000), adding contingency funds ($25,000) and adding reserve funds ($100,000), gets us to $540,000 in adjustments. This is close to the $620,000 figure we are currently estimating as our shortage for the public safety building. It should be noted that with these adjustments the Police Department is still not getting its key component added to the project. This key component is the six additional garage spots at a cost of approximately $80,000. The police have indicated their desire to have this as part of the project from very early on, going back to the first meetings at the City Council level on the proposal in November and December 2001. City Hall In January the City Hall facility (construction timetable from 6/03 to 5/04) was estimated in the $2.7 - $2.8 million range. The source of funds for this project is the government building reserve. The government building reserve receives its money from the landfill surcharge. It was (and still is) estimated that the government building reserve will have approximately $2.8 million in early 2004, with about another $500,000 being available by the end of 2004. This assumes that revenues continue to be received at the same pace for the next few years as what we experienced in 2000 and 2001. Since January the City Hall project has expanded in the amount of space being shared with Utilities and in taking ownership of part of the basement beneath the Utilities building. These additions plus the recent decision to have the mechanical and heating controlled by a digital system pushed the City Hall project to slightly over $3 million. Finally, a new roof system for the existing facility was recommended due to the ongoing problems with the current roof plus the expected life cycle of the roof was to be ending within a few years. The estimate for the roof was just under $150,000 but it now has become clear that additional work to the structure of the roof needs to take place and the new estimate for the roof project is in the $250 - 300,000 range. This new roof, regardless of any other remodeling or expansion project, would need to take place. Overall, there is generally less of a concern about the City Hall project budget as compared to the Public Safety project budget. This is due to the limited amount of funds that are available for the Public Safety project versus the use of reserves for the City Hall project. However, if the landfill revenues going into the government building reserve were to slow down or stop then alternative funding sources need to be identified for the City Hall project. The slowing down of revenues is possible but having the funds stop altogether for an extended period of time seems unlikely. The best reserve option available to the city is the NSP reserve. An alternative is to use some street reserves but these reserves are planned to be used for the street replacement program. A last resort alternative is the general fund cash flow reserves. If everything comes together without interruption then the entire City Hall project should be able to be funded by the end of 2004 with only some internal loans for 10 months being necessary.