What To Bond and What Not To Bond - That is the Question June 21, - PowerPoint PPT Presentation

What To Bond and What Not To Bond - That is the Question June 21, 2017 Board Meeting

We have boiled this down to a few options to consider: Whatever is decided, there are financial cause and effect impacts • Sedona Fire District is committed to maintaining emergency services and • our commitment to the community June 21, 2017 We are committed to being transparent throughout and good financial • stewards of our budget and mission Board Meeting

$26 Million Capital Projects on the 10-Year Schedule Committee Made Decisions on Priorities Identified  High Priority – Project Must Be Done  Immediate Need for Completion Directly Impacting Emergency Services  Primary Priority – Really Needs To Be Done  Completion Will Help The Emergency Response But Is Subordinate to High Priority Projects  Secondary Priority – Should Be Considered When Funding Becomes Available  Completion Will Enhance Operations and Efficiencies But Are Not Realistically Going To Impact Emergency Responses Upon Completion of Project June 21, 2017 Board Meeting

Station 4 – Uptown Sedona  Tear Down Existing Building  Rebuild in Same Location  Provide Temporary Housing On-Site During Construction  Site Challenges – Small Footprint, Many Easements through Property  Cost Estimate Is Based on Higher Estimate with a 10% Contingency and 15% Soft Cost Factor Included Project Estimated at $5,686,860 June 21, 2017 Board Meeting

Station 5 – Oak Creek Canyon  Abandon Existing Build (Likely Sell Portion of Building SFD Owns)  Rebuild at Slide Rock State Park in a Partnership With AZ State Parks  No Temporary Housing Needed During Construction  Site Challenges – Ingress/Egress Access to 89A, Restrictions and Processes Required Based on Parcel and Use Permit Covenants on Land  Cost Estimate Is Based on Higher Estimate with a 10% Contingency and 15% Soft Cost Factor Included Project Estimated at $3,012,844 June 21, 2017 Board Meeting

Station 3 – Village of Oak Creek  Structural, Engineering, and Mechanical Project  Roof Structure Sagging and Needs to be Fixed  4 HVAC/Swamp Coolers- Only 2 Are Fully Functional  Drywall in Apparatus Bay Improperly Installed  Concrete the Apparatus Apron and Turning Areas  Address Improper Drainage on Property  ADA Compliance Issues in Public Restrooms  Repair Leaking Patio Deck  Cost Estimate Is Based on Higher Estimate with a 10% Contingency and 15% Soft Cost Factor Included Project Estimated at $1,201,750 June 21, 2017 Board Meeting

Station 3- Village of Oak Creek  Renovation to Firefighter Quarters  Quicker Access to Apparatus Bay  Renovation of Kitchen and Day Room Area  Update of Work Spaces  Cost Estimate Is Based on Higher Estimate with a 10% Contingency and 15% Soft Cost Factor Included Project Estimated at $1,147,792 June 21, 2017 Board Meeting

Station 1 – West Sedona  Renovation to Firefighter Quarters  Quicker Access to Apparatus Bay  Renovation of Kitchen and Day Room Area  Update of Work Spaces  Re-engineer Ineffective HVAC System  More Efficient Use of Multi-Purpose Room  ADA Compliance for 2 nd Floor Public Training Room  Cost Estimate Is Based on Higher Estimate with a 10% Contingency and 15% Soft Cost Factor Included Project Estimated at $1,972,250 June 21, 2017 Board Meeting

Station 1 – West Sedona  Build A New Fleet Maintenance Facility  Facility that Can Fit the Modern Day Fire Apparatus  Better Storage and Warehouse Space  Create More Employee/Public Parking  Re-purpose Existing Space for Firefighter Gear Storage – Preventative Cancer Best Practice Initiatives  Cost Estimate Is Based on Higher Estimate with a 5% Contingency and 15% Soft Cost Factor Included Project Estimated at $1,189,246 June 21, 2017 Board Meeting

Station 1 – West Sedona  Renovation of Administrative Offices  Develop Better Work Space and Work Efficiencies in Existing Space  Create ADA Compliant Conference Room  Employee Kitchen/Breakroom for Admin Staff  Enhance the Efficiencies of Community Risk Reduction Operation  Cost Estimate Is Based on Higher Estimate with a 10% Contingency and 15% Soft Cost Factor Included Project Estimated at $1,071,025 June 21, 2017 Board Meeting

Fire Apparatus – Heavy Fleet (Potential Bond Funded Option)  Purchase of the Fire Engines Needed  (2) Type 1 Engines (2001, 2008)  (3) Water Tenders (3- 1999) Estimated Total - $2,000,000 Fire & EMS Apparatus – Heavy, Medium, Light Fleet  Ambulances Planned for Refurbishment  Other Fire Engines, Wildland Engines, Mini-Rescue and Heavy Rescue  Fleet and Pool Vehicles  Snow Cat Estimated Total - $5,700,000 Projects Estimated at $7,700,000 June 21, 2017 Board Meeting

Telecommunication Equipment (Potential Bond-Funded Option)  Various Technical Equipment, Technology Upgrades, Firefighter Safety  Microwave Systems, Radio Tower Replacement, Backbone Infrastructure Upgrades  Station F/F Alerting System, F/F Portable Radios Estimated Total - $2,000,000 Additional Telecommunication and Firefighter Equipment  Phone and Email Upgrade, Servers  Firefighter Radio Frequency Upgrade  Hose, Thermal Imaging Cameras, Airpacks, Extrication Equipment Estimated Total - $1,600,000 Projects Estimated At $3,600,000 June 21, 2017 Board Meeting

We Work Hard Each and Every Day to Assure We Spend Every Dollar with Respect to the Person Who Helped Provide that Dollar Our Plan Is to Always Be Focused on Providing the Most Efficient and Effective Emergency Services to Our Community We also Strive to Attract and Retain the Highest Caliber of Employee that Is Highly Trained and Motivated to Serve Our Community Each and Every Day June 21, 2017 Board Meeting

 A General Obligation Bond Is a very Common Tool in Local Government to Utilize To Pay for Large Capital Projects  The Concept of Sharing the Cost of Large Capital Projects over a Longer Period of Time Allows for a Lower Cost Share for Those Who Will Be Benefiting from the Enhancements  The Ability to Reduce Immediate Impact to Taxpayers Who Will Be Responsible for Fund Capital Items if Purchased in a Cash Pay Option  The Bond Repayment Levy Rate Does Not Impact the Mil Rate Which Has a State Statute Cap  A Bond Would Leverage Your Ability to Access Levy in an Economy that Has Experienced a Downturn in Assessed Value  Given the Fact that SFD is Operating in a Post-Proposition 117 environment, Our Assessed Value Growth Is Limited to a Maximum of 5% June 21, 2017 Board Meeting

Bond Option 1- $9.9M June 21, 2017 Board Meeting

$9.9M General Obligation Bond  Station 4 Tear Down and Rebuild $5,686,860  Station 5 Relocation and Build $3,012,844  Station 3 Structural, Engineering and Mechanical Repairs $1,201,750 Total $9,901,454 Bond $9.9M June 21, 2017 Board Meeting

(1) (2) (3) (4) (5) (6) $9,900,000 General Obligation Bonds Project of 2017 Series A (2018) Estimated Bonds Dated: 4/01/18 Additional Secondary Fiscal Combined Estimated Debt Bond Year Valuation (a) Principal Interest (b) Service Tax Rate (c) 2016/17 $510,949,039 $0 $0.00 2017/18 538,635,344 $0 $0.00 2018/19 538,635,344 $240,000 $556,875 $796,875 $0.15 2019/20 538,635,344 360,000 434,700 794,700 0.15 2020/21 538,635,344 375,000 418,500 793,500 0.15 2021/22 538,635,344 395,000 401,625 796,625 0.15 2022/23 538,635,344 410,000 383,850 793,850 0.15 2023/24 538,635,344 430,000 365,400 795,400 0.15 2024/25 538,635,344 450,000 346,050 796,050 0.15 2025/26 538,635,344 470,000 325,800 795,800 0.15 2026/27 538,635,344 490,000 304,650 794,650 0.15 2027/28 538,635,344 510,000 282,600 792,600 0.15 2028/29 538,635,344 535,000 259,650 794,650 0.15 2029/30 538,635,344 560,000 235,575 795,575 0.15 2030/31 538,635,344 585,000 210,375 795,375 0.15 2031/32 538,635,344 610,000 184,050 794,050 0.15 2032/33 538,635,344 635,000 156,600 791,600 0.15 2033/34 538,635,344 665,000 128,025 793,025 0.15 2034/35 538,635,344 695,000 98,100 793,100 0.15 2035/36 538,635,344 725,000 66,825 791,825 0.15 2036/37 538,635,344 760,000 34,200 794,200 0.15 $9,900,000 $15,093,450 17 Average Annual Tax Rate = $0.1475 * Estimated, subject to change. See assumptions on next page.