Closing the Gap: Investing in Our Neighborhood Parks
Review Already Identified Park System Capital Funding Gaps Examine Additional Infrastructure Capital Funding Deficits Frame in Neighborhood Parks Operations and Maintenance Gaps Provide High Level Overview of Citywide Survey Results Provide McKnight Foundation Grant Overview Review Board Directed Investment Commitments Review Existing Debt Obligations View Long Range Timeline
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Closing the Gap: Investing in Our Neighborhood Parks MPRB Infrastructure Capital Investment Needs Neighborhood park capital investments 2016 Annual funding need of $14.3 million + Inflation Funding gap for the period 2000 ‐ 2015 is approximately $111 million Parkway paving and lighting program
The target score for the Pavement Condition Index (PCI) is 75 o
To raise and to sustain the PCI to 75 by 2022 requires an average annual parkway investment of $5 million
The target for replacing the 30‐year or older parkway lighting poles and wiring is 2022 o
This requires an additional average annual investment of $2 million
Regional park capital investments
Metropolitan Council and State Bonds have become less predictable
In 2012, the MPRB received 43% of the expected amount due to reduced state funding
In 2014, the MPRB received 40% of the expected allocation due to reduced state funding 2
Closing the Gap: Investing in Our Neighborhood Parks
MPRB Infrastructure Capital Investment Needs Golf facilities capital investments
Funding gap is $14.1 million to $34.5 million depending on improvement level
MPRB fleet equipment replacement
Funding gap was $4.5 million with more than 44% of the fleet past its useful life. 2015 begins five year investment plan in place to eliminate gap.
Information technology investment
Funding needed to bring the MPRB to current standards is approximately $3 million
And, an ongoing annual asset investment of approximately $500,000 to stay current
With these identified gaps the MPRB is more than $140 million behind in meeting the park system’s capital needs, with the most significant gap in neighborhood park capital 3
Closing the Gap: Investing in Our Neighborhood Parks
Other Major Capital Needs Outside of Capital Improvements Plan Large Infrastructure/Utilities Bridges There are 64 pedestrian bridges and 22 vehicle bridges located within the park system. Bridges within 2 golf courses and 3 parks have been identified as requiring repairs and/or reconstruction. Sanitary and Storm Sewer Projects Within the regional and neighborhood park system, there are an excess of 100 existing sewer and water utility connections with varying age and quality. Repairs are made on an emergency basis and burden general fund maintenance budgets. Stormwater and Erosion Projects Neighborhood park drainage infrastructure has deteriorated over many decades. As these systems fail, replacement is required to reduce standing water, sink holes, and eliminate hazards within sports fields. There is no comprehensive assessment of existing systems. Repairs are made on an emergency basis and impact general funds dedicated for routine maintenance. 4
Closing the Gap: Investing in Our Neighborhood Parks
Other Major Capital Needs Outside of Capital Improvements Plan Large Infrastructure/Utilities WPA and Large Retaining Walls throughout System Between 1935 to after World War II, the Works Progress Administration (WPA) help fund many improvements including retaining walls. To date, there is no comprehensive mapping of these types of structures in the system. Staff is initiating a process of documenting locations and conditions of walls, as well as noting historic issues, critical failure potential, and other factors to be used in establishing priorities for restoration or new construction. Water Level Management Systems The hydraulic level of the Chain of Lakes primarily depends on the outflow from Lake Calhoun. Currently there is an underground pipe that drains Lake Calhoun into Lake Harriet thus determining the levels in Isles and Cedar. The flooding in 2014 identified that the current capacity of the Calhoun outflow needs to be studied.
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Closing the Gap: Investing in Our Neighborhood Parks
Other Major Capital Needs Outside of Capital Improvements Plan Large Infrastructure/Utilities MPRB Roads Outside of Parkway Program Of the approximate 55 miles of parkways in the system, 5.5 miles of parkway fall outside Regional Parks, so renovation funding has to come from other sources. Memorials, Plaques, Decorative Fountains and Sculptures Within the neighborhood and regional park system there are over 110 separate memorials, plaques, decorative fountains and sculptures. These are often important historical and cultural park amenities that require special maintenance or art conservator work. Parking Lots Within the neighborhood park system there are over 100 parking lots, ranging between 4,000 – 10,000 square feet. The regional park system has 31 parking lots with over 400,000 square feet of paved surfacing.
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Closing the Gap: Investing in Our Neighborhood Parks
Neighborhood Parks Annual Operations & Maintenance Gap Examples
Activity
Additional Cost Current Best Practice/ for Best Practices/ Quantity Service Level Desired Service Level Desired Service Level
Mowing
2750 acres 14 day cycle 10 day cycle
$875,000
Trail Repair 51 miles .25 miles/yr. 1 mile/yr. $625,000 Roof Repair
62 roofs 40‐50 years 20‐25 years $400,000
Building Maintenance 978,017sf 4,167 hours 8,500 hours
$194,863
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Closing the Gap: Investing in Our Neighborhood Parks
Overview of Citywide Survey Key findings presented by Bill Morris, President, The Morris Leatherman Company
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Closing the Gap: Investing in Our Neighborhood Parks
McKnight Grant Provide technical assistance to Minneapolis partners and stakeholders toward the development of a 10‐year business and funding plan, at a minimum, for the Minneapolis parks system This grant will provide resources to: Organize and convene a Minneapolis delegation to attend the Greater & Greener Conference 2015 – April 2015 Collect funding model and case study details from other cities ‐ early summer 2015 Convene national leaders and Minneapolis stakeholders to look at successful models and case studies ‐ summer and fall 2015 MPRB will consider models, case studies and results from summer and fall convening meetings – fall and early winter 2015 9
Closing the Gap: Investing in Our Neighborhood Parks
Board Direction on Addressing Operational Facility Needs (North, Northeast, and Hiawatha Facilities) Immediate plan developed for North and Northeast Operational Facilities Renovate current Northside Service Center and Northeast Service Center locations Projects could be completed within two construction seasons using the property at 1720 Marshall Street as a temporary facility Funding for the project would come from a mortgage with the general fund repaying the mortgage over a 20 year period Estimated costs for Northside Service Center is $2.5M Estimated costs for Northeast Service Center is $5.5M Estimated costs for temporary use of 1720 Marshal $800k $647,000 estimated 20 year mortgage payment to cover $8.8M costs
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Closing the Gap: Investing in Our Neighborhood Parks
Park Board Debt Obligations The General Fund pays the debt service on the Headquarters Building loan. All other debt service is paid by the Enterprise Fund: Debt Service Headquarters Building (internal loan) McKinstry Energy Efficiency (bonds) Minnehaha Refectory (internal loan) Neiman Complex (bonds) Northeast Ice Arena (mortgage) Parade Ice (bonds) Total Debt Service
Budget 2015
Estimate 2016
Estimate 2017
Estimate 2018
Estimate 2019
Estimate 2020
130,000 42,500
130,000 46,250 140,050 627,600 67,799 476,038 1,487,737
130,000 309,750 140,050 636,400 67,799 272,038 1,556,037
130,000
130,000
130,000
140,050 644,450 67,799 522,038 1,504,337
140,050 636,750 67,799 517,038 1,491,637
140,050 643,750 67,799 3,309,538 4,291,137
623,200 67,799 480,038 1,343,537
Parade Ice debt is planned to be restructured in 2020, reducing the amount due. Depending on the restructuring, debt payments will continue at around $1.3 to $1.5 million annually until 2030. Potential future debts include: North & Northeast Service Center $647,000 annually from General Fund Phillips Pool $159,000‐$236,000 annually from General Fund 11
Closing the Gap: Investing in our Neighborhood Parks
Comprehensive Timeline – Looking Forward to 2017 May to September 2015 Public Education/Engagement Meetings on Neighborhood Park Conditions Gather funding model and case study data from other cities Hold convening on funding model and case study data with Minneapolis stakeholders and national leaders October to December 2015 Board of Commissioners considers information gathered By December 2015 Board of Commissioners decides how to proceed with solving neighborhood park funding gap If moving forward with referendum or other funding strategy, identify schedule for 2016 for achieving funding
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Closing the Gap: Investing in our Neighborhood Parks Comprehensive Timeline – Looking Forward to 2017 If referendum effort moves forward for November 2016 ballot and is successful funding would be available beginning in 2017 If other funding option is selected, need to determine when funding source would be available Need to prepare for organizational response to funding option or no additional funding If additional funding: o Setting up organizational capacity to Respond to additional Operating & Maintenance Funding Respond to additional Capital funding If no additional funding: o Making decisions to address funding gap for Operating & Maintenance and Capital Funding 2017 Budget Process will likely require the development of two budgets
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