HomeMy WebLinkAbout02/28/1995, 3 - STATUS REPORT HEADQUARTERS FIRE STATION ���Ho► ��IIII���j���► city of san LaIs OBispo
ni;% COUNCIL AGENDA REPORT
construction costs of this project. However, the budget balancing strategy adopted by the Council in
the 1993-95 Financial Plan called for paying for this project (as well as the Performing Arts Center,
which was also previously planned to be debt-financed) primarily through existing fund balances -
which were about $8 million at that time - rather than debt financing. This strategy effectively used
our fund balances in reducing future year debt service costs by about $500,000 annually. While
most of the costs of these two projects are now funded on a "pay-as-you-go" basis, the 1993-95
Financial Plan still provides for about $1.7 million of these project costs to be funded through debt
financing. This could be increased to cover the funding shortfall, resulting in increased annual debt
service costs of about $55,000. Depending our on our projected fiscal condition as we finalize the
1995-97 Financial Plan, this may also be an extremely attractive option.
■ Fund balance. At this point, we project ending 1994-95 with General Fund balances of about
$4.0 million, which is right on target with our policy of maintaining fund balances that are
20% of operating expenditures. This policy is maintained for a reason: to provide the City with
financial strength in addressing important but unforeseen circumstances. In this context,
building the Headquarters Fire Station - which is a "one-time" expense - may be an appropriate
use of fund balances below this 20% level. Under this approach, all other things being equal,
the General Fund balance would fall to about $3.3 million, or 16% of operating expenditures.
Before selecting these (or any other options) it is important that we fully identify the cost of going
forward with this project - which we will not know until bids are received in mid-May - and are
further along in the 1995-97 Financial Plan process. However, it is important to note that because
of our past policies and actions, we have the fiscal strength to fund this project under a number of
financing options.
J-so
Summary of Headquarters Fire Station Costs 2116195
Preludes site acqukition costs and hazardous materials abatement
Prosect Bud Variance
Currently Estimate at Estimate at June 1994 to
oiect Phase Adopted*I June 1994 February 1995 Fehruary 105
• The budget for design costs was approved in 1989;the budget for construction was approved in 1991
Q Stu and.... del
.. .......................
...... '00
430 .000 �:::�:s4"066
276 0001 33.0,
Fire station 430,000 269,000 299,000 30
"00
Training faciltity 7,0007,000 0
Off—site improvements N nnn 24000
.............................................
n
testis 58,700' 183,500
...`2.18,500 35,000;:
.........
On—site inspection 75,000 110,000 35,000
Testing 50,000 50,000 0
Construction management 58,700 58,500 58,500 0
. .............. ..............
Off cite tm rovements 0': >•50,000
91,600 41600
Signals 400001 50,000 10,000
Storm drainage and sidewalks-- IF 1 10:00 31.600
185,70.0:
Constincttoa ,5
Fire station/maintenance facility 2,218,100 2,136,400 2,324,50011 188,100
Training facility 89,4001 87.000 (2.4001
60,000 1.38..:600 :78.000:
J.....
. . .......
Furnishings 60,000 60,000 0
Centrex phone line installation 13,000 13,000
Generator 25,000 25,000
Emergency operations center(EOQ 40,000 40,00-0-
132
0::
ittin
•Sfb Groff5itc improvement,construction A equipment costs
TOTAL. 2,706,800 2,935,300 3,379,700 444,400
VARIANCES
• Adopted budget vs June 1994 estimate 2Z9,500
• June 1994 estimate vs February 1995 estimate 444,400
• Adopted budget vs February 1995 estimate 67Z900
HFSCOSTS