ADMINISTRATION- Nate Monahan, Recreation Manager and Rebecca Haug, Water Resources Manager
Title
ADOPT THE 2021 - 2025 OPEN SPACE CAPITAL IMPROVEMENT FUND BUDGET
Background
A panel of City Staff including the City Manager, Finance Director, Public Works Director, Parks and Recreation and Engineering staff have reviewed the Five-Year Open Space (CIP) for the City’s Open Space Fund and is recommending adoption of the 2021 component of the CIP as the Open Space Development Fund Budget. The Natural Resource Conservation Board (NRCB) has reviewed the proposal and is recommending the attached budget to the City Council for formal adoption. The City Council also discussed this budget at the December 14, 2020 joint meeting with the NRCB.
The city maintains a five-year capital improvement plan for open space development funds. The capital improvement plan is a flexible plan based upon long-range physical planning and financial projections. Flexibility is achieved through annual review and revisions as necessary. All improvements listed in the plan are proposed and reviewed by the NRCB before recommendation to the city council. The City Council makes all final decisions on capital improvement.
Revenue for the capital improvement plan comes from park dedication fees
required of all new residential ($4,449)/unit), commercial ($8,704/acre), and
industrial ($6,702/acre) development. The residential fee is split, with 65% going to parks development and 35% of the fee going to open space development. Commercial and industrial fees are exclusively used to fund parks development.
Revenue from park dedication fees can only be used for development of new open space and trails and cannot be used for open space maintenance.
Another revenue source within the Open Space CIP comes from the sale of wetland credits. The projected sales of wetland credits over the next five years is just over $3 million. Projections estimate the current inventory of wetland credits could generate nearly $8.8 million based on current market demands.
A summary of the recommendations are as follows:
*2020 Expenditure: Complete repayment of internal borrowing from EDA for northern portion wetland banking. ($400,000)
2021 Revenues
• Projected Park Dedication Fees: ($829,961)
• Projected Wetland Credit Sales: ($750,000)
• Interest Earnings: ($34,300)
2021 Expenses
Wetland Management (CCES: ($75,000):
• BWS Wetland Banking Project management contract. *This contract is set to expire in 2021 and will need to be extended to complete the full release of wetland credits.
BWS Site Development: ($175,000):
• BWS Entrance Sign ($125,000)
• BWS Structure Design ($50,000) *This item will be brought forward to a future City Council Workshop for direction on this project.
On-going maintenance of BWS: ($50,000)
• Budgetary number provided in the BWS Development Master plan to maintain trails, rain gardens, signage, observation deck, and other amenities throughout the site.
Main Street Wetland Bank (Pioneer Park: ($80,000)
• This project is currently in the review process with regulatory agencies
Trails Development: ($200,000):
• Sunrise Ponds Trail Development ($200,000)
Open Space Management: (5,000):
• Maintenance of Open Space properties and amenities throughout the city.
2022 Expenses
The BWS Site Development Plan reflects the budget number of $2 million for a Nature Center Building to be constructed. If an open shelter is chosen to be constructed the budget would be reduced to $500,000, with an optional restroom facility increasing the budget to $800,000. The 2020 recommendation from the NRCB is an open shelter with a restroom facility. *This item will be brought forward to a future City Council Workshop for direction on this project.
Recommendation
Adopt the following resolution.
Body
WHEREAS, the proposed Open Space Capital Improvement Fund Capital Budget for the fiscal year commencing January 1, 2021 has been prepared by the City Manager and staff; and
WHEREAS, the City Council has examined, studied, and reviewed said proposed Open Space Capital Improvement Fund Budget; and
WHEREAS, the City Council has, after due consideration and deliberation, made such amendments and adjustments in the proposed Open Space Capital Improvement Fund Budget as they consider necessary, desirable, or expedient.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Blaine as follows:
1. That the proposed Open Space Capital Improvement Fund Budget attached hereto is approved; and
2. That the 2021 funding sources identified and attached hereto are approved; and
3. That the 2021 appropriations attached hereto are approved.
4. That the City’s 5-Year Capital Improvement Plan be updated to reflect the approval of projects included in the proposed Open Space Capital Improvement Fund Budget.
5. That the City Manager is authorized and directed to implement and to administer, within the budgetary funding limits and within adopted City policy and relevant State and City laws and regulations, said approved Open Space Capital Improvement Fund Budget.
PASSED by the City Council of the City of Blaine this 21st day of December 2020.