Pella Chronicle

March 14, 2013

Council approves FY13-14 budget

By Clint Brown Editor
The Pella Chronicle

---- — Following a public hearing, the Pella City Council approved a resolution to adopt the FY 2013-14.

In February, special budget work sessions were held with the City Council to discuss the FY 13-14 Budget. Listed below are highlights of the proposed FY 13-14 Budget, which include all City operations:

- The City’s FY 13-14 Budget totals $41,547,122. The expenses include $19,719,943 for operating expenses; $7,184,174 for compensation & benefits; $259,434 for developer reimbursements;

$1,871,148 for debt; and $12,512,423 for capital improvements. The overall budget has a projected drawdown of fund balance of $ 1,034,025 which is attributed mainly to funding capital improvements with cash on hand.

- For the twelfth consecutive year, the City’s property tax rate will remain at $10.20 per $1,000 of taxable valuation. In comparing us to similar sized communities, the City ofPella has one of the lowest tax rates in the State.

- The FY 13-14 Budget includes $300,000 of funding for engineering services for a new Jordan well. The new well is a part of the City’s long-term water supply plan which includes the new Jordan well and a 3.0 million gallon reverse osmosis treatment process. The estimated cost of the plan is $12.6 million.

- The proposed budget includes funding for the community sports park, which is tentatively scheduled to open in the spring of 2014. It is important to note, 58 percent of the $6.0 million construction budget is being funded by private donations. The remaining 42 percent or $2.5 million is being funded by local option funds.

-The FY 13-14 Budget includes $376,873 of funding for engineering design services for the Oskaloosa Street Reconstruction Project and improvements to five to eight residential streets. The tentative plan is to reconstruct Oskaloosa Street from Prairie Street to E. 16th Street. This project is estimated to cost $2.2 million with the reconstruction scheduled to occur in the summer and fall of 2014. It is important to note, these projects are in accordance with the City’s strategic plan to upgrade the City’s street network by repairing 25 percent of our lane miles over the next twelve years.

-The proposed budget includes the renovation of the City’s indoor swimming pool which is necessary to extend the life of the facility by 20 to 30 years. The estimated cost of this renovation is $4.0 million and is proposed to be funded by a local option sales tax bond.

-The FY 13-14 Budget includes funding in the amount of $725,000 for the completion of the Iowa Department of Natural Resources (IDNR) mandates for our wastewater collection system. These improvements include a new 8,100 linear foot 16 inch force main which is intended to accelerate flow from Lift Station #2 to the Southeast Trunk Sewer.

-The proposed budget includes funding of $258,000 for the continuation of the City’s electrical conversion projects. As Council is aware, 70 percent of the electrical distribution system is underground and within the next 5 to 10 years, the City is planning on completing the remaining 30 percent. The estimated cost to complete the remaining conversions is $2.5 million. In 2013, engineering is scheduled for the area south of Pella Community High School to be converted from overhead lines to underground. The conversion is anticipated to begin in 2014.

The detailed FY 13-14 budget book is on file at the Library and City Hall and is available for public review

In other action, council approved a resolution approving Change Order No. 1 in Connection with the Diesel Engine RICE NESHAP Compliance Project.

Council approved the contract with CSE Enterprises on November 5, 2012 in the amount of $456,000 for the work consisting of replacing the existing silencer with a combination silencer catalyst and installing a closed crankcase ventilation system.

Originally, the monitoring requirements for RICE were to be addressed in the diesel plant communication upgrade project. Due to the fact that the communication upgrade project will not be completed before the compliance deadline of May 3, 2013, the Engineer, PRVN Consultants, and staff requested a proposal from CES to supply and install the materials necessary for compliance.

Major provisions of Change Order No. 1 include the following:

-Provide and install monitor modules at each of the 14 engines and connect two pressure sensors and one temperature sensor.

-Mount sensors and install tubing and conduit as required.

-Program modules and train staff on programming and stored data.

This resolution approves Change Order No. 1 with CSE Enterprises, LLC in the amount of $51,200. in addition, Change Order No. 1 extends the substantial completion date from March 29, 2013 to April 26, 2013, and final completion date from April 26, 3012 to May 17, 2013.

Council also approved a resolution accepting public improvements for the WesleyLife Pella Campus.

Hearthstone is planning to construct a senior retirement community consisting of 64 nursing beds and up to 34 one and two bedroom assisted living units. The proposed site is located on 50 acres directly north of the Pella Country Club at 1620 Main Street.

As part of the development. Hearthstone constructed the following public improvements:

-Extension of the public sewer line from Hearthstone’s property northeast to the City’s sanitary trunk sewer, which is approximately 4,000 feet in length.

-Extension of the public water main along the east side of Main Street from the north side of Fountain View Drive to Hearthstone’s property line, which is 645 feet in length.

Civil Design Advantage (CDA) has certified the public improvements are substantially complete and comply with the City’s standards for public infrastructure. The developer has provided a maintenance bond for the public improvements.

This resolution adds the following improvements to the City’s infrastructure assets:

-1,117 LF of 10” sanitary sewer, 2,900 LF of 8” sanitary sewer, 13 manholes and seals

-645 LF of 12” water main, 2 - 12” gate valves, and 2 fire hydrants