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1997-09-16 CCPD Packet City of Southiake, Texas — — MEMORANDUM September 12, 1997 TO: Shana Yelverton, Assistant City Manager FROM: Billy Campbell, Director Public Safety SUBJECT: Budget Estimate Adjustments for Southiake Crime Control and Prevention District The preliminary budget estimates presented for review of the Southiake Crime Control and Prevention District were based on acquisition costs and land sites available at that time. The adjusted budget estimates reflect a modified assessment of projected costs based upon a myriad of factors, including the revision of available land sites and inflation costs of purchases made at future dates over a three year period. The details contained herein explain each cost estimate. LAND ACQUISITION Site#1 Central Facility (16,04e preliminary budget estimate reflected the acquisition costs of eight (8) acres at $1.75 per quare foot, resulting in an estimated expenditure of$609,000 However, the land acquisition cost did not include the extension of utilities to the location and any projected increase in land prices. The revised estimates reflect a $3.50 per square foot estimate for land, which includes the extension of utilities and initial site preparation. Although there may be some budgetary savings at the actual time of land negotiations, the revised estimates are adjusted to $1,218,000 (8 X 43,500 X $3.50 = $1,218,000). Site#2 Sub-station #1 The $3.50 per square foot preliminary estimate reflected the acquisition costs of three (3) acres of property available at the time the analysis was conducted. The adjusted estimate of$652,500 reflects the current land costs of$5.00 per square foot. (3 X 43,500 X $5.00 = $652,000) Site#3 Sub-station #2 The preliminary budget estimate of$3.50 originally projected was based on the actual purchase price of available land for sale at the desired site at the time the analysis was conducted. However, that property is currently under contract negotiations and not currently available. The optional location available reflects a $5.00 per square foot sale price. The adjusted budget projection of$652,500 reflects the actual cost of available property at $5.00 per square foot. (1 X 43,500 X $5.00 = $652,000) tor • `liana Yelverton, Assistant City Manager udget Estimate Adjustments for Southlake Crime Control and Prevention District September 12, 1997 Page 2 BUILDING DESIGN AND CONSTRUCTION Site #1 Central Facility The preliminary $8,081,720 budget projection provided an opportunity to review the total project costs for all programs based on acquisition at today's cost. Subsequent revenue projections necessitated the review and prioritization of individual projects, resulting in a recommendation to delay construction of the central facility until the third fiscal year for the district. The adjusted figure of$8,888,792 reflects the anticipated impact of a 5% annual inflation rate. Site #2 Sub-station #1 The $1,680,000 preliminary project estimate reflected the current construction costs of a 12,000 square foot facility. With consideration of the actual construction being delayed until 1999, annual inflationary costs of 5% per year provide for an adjusted budget projection of$1,848,000. to#3 Sub-station #2 The $1,680,000 preliminary project estimate reflected the current construction costs of a 12,000 square foot facility. With consideration of the actual construction being delayed until 1999, annual inflationary costs of 5% per year provide for an adjusted budget projection of$1,848,000. Furnishings The costs for furnishings is estimated at 10% of the total project costs for any single new location. The adjusted budget allocations are based on inflationary increases generated by delayed construction of the central facility and acquisition of the related furnishings. ENHANCED TECHNOLOGY AND EQUIPMENT The cost estimates provided in the initial program budget indicated acquisition at today's market price. The adjustments include annual inflationary costs associated with the delayed acquisition. L Lhana Yelverton, Assistant City Manager udget Estimate Adjustments for Southlake Crime Control and Prevention District September 12, 1997 Page 3 PROFESSIONAL DEVELOPMENT The preliminary budget projections incorporated much of the costs associated with this component as a part of the building design and construction, which provides for enhanced training and research facilities. The volatility in costs associated with computerized training modules, combined with the exponential rate of innovations in training technology, does not lend itself to any current realistic budgetary projections for acquisitions occurring in the forth and fifth years. Therefore, no budgetary projections are included beyond those associated with the building design and construction. PERSONNEL The personnel costs identified in the preliminary budget estimates reflected only the first-year costs. The adjusted budget extends those costs over the three fiscal years shown. Lshould be noted that the most significant adjustments rest in the land prices and the extension of personnel costs over a three year period. The availability of land, in conjunction with the escalating costs, dictate a necessity in focusing the initial efforts towards land acquisition in order to avoid any future adverse ramifications. I am available should there be any additional questions or comments. BC/mwj L City of Southlake,Texas SOUTHLAKE CRIME CONTROL AND PREVENTION DISTRICT CD ORDER NO. 97-1 AN ORDER OF THE TEMPORARY BOARD OF THE SOUTHLAKE CRIME CONTROL AND PREVENTION DISTRICT ESTABLISHING RULES FOR THE ADOPTION OF THE CRIME CONTROL AND PREVENTION DISTRICT BUDGET AND ESTABLISHING THE FISCAL YEAR. WHEREAS, Section 363.204 of the Local Government Code permits the temporary board of the Crime Control and Prevention District to develop and adopt procedures for adopting a budget different from the procedures outlined in the statute, NOW THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF THE SOUTHLAKE CRIME CONTROL AND PREVENTION DISTRICT, Section 1 Adoption of Budget The following rules are hereby established for the adoption of the annual budget for the Southlake Crime Control and Prevention District (the "District"). a. Public Hearing. The Temporary Board of the Crime Control and Prevention District (the "Board") shall hold a public hearing on the proposed annual budget. Any resident of the district is entitled to be present and participate at the hearing. b. Notice of Public Hearing. The Board shall publish notice of the public hearing in a newspaper with general circulation in the district not later than the tenth (10th) day before the date of the hearing. c. Inspection of Proposed Budget. The draft of the proposed budget shall be made available for public inspection at least ten (10) days prior to the public hearing. d. Adoption of Budget. After the public hearing, the board may make any changes in the proposed budget that in its judgment, is in the interest of the taxpayers of the District. The board may adopt the budget immediately following the public hearing or at any time within ten (10) days following the public hearing. e. City Council Public Hearing and Approval. The board shall submit the budget to the City Council of Southlake for consideration. The City Council may approve or reject the budget, but may not amend it. If the City Council rejects the budget, the City Council and the board shall meet and together amend and approve the budget before the beginning of the fiscal year. f. Amendment. The budget may be amended after the beginning of the fiscal year upon approval of the board and the City Council. Section 2 Fiscal Year The fiscal year for the Crime Control and Prevention District shall begin on October 1 of each year and end on September 30 of each year; provided however, the first fiscal year shall begin on the date the district is created and end on September 30. PASSED AND APPROVED BY THE TEMPORARY BOARD OF DIRECTORS OF THE SOUTHLAKE CRIME CONTROL AND PREVENTION DISTRICT this the day of , 1997. President Attest: Board Secretary