Chapter 5 action plan updatedCHAPTER 5
PROJECT FINANCING
Chapter 5 – Project Financing Page 5 - 1
CHAPTER 5 – PROJECT FINANCING
Contents:
Introduction
Project Priorities
Funding Sources
Financing Strategy
Project Lists
5.1 INTRODUCTION
5.2 PROJECT
PRIORITIES
This chapter of the Action Plan identifies a strategy for funding
park and facility improvements. This strategy identifies specific
actions that should occur as well as potential sources of
funding. The summary of this planning process is shown in the
six-year Capital Facilities Plan identified in Table 5.2. Some of
these funding sources are new to the City whereas others have
been utilized in the past.
The following criteria are recommended for implementing
projects in the Capital Facilities Plan. These are not listed in
any priority.
Acquisition of Park Land: Because of the high growth rate in
Meridian it will be important to acquire park land while it is
still available. The difficulty the City will face is finding
money in the short-term to pay for this acquisition. While
Park Impact Fees are designed for this purpose, as a
practical point the fee schedule is not high enough to pay for
all of the acquisition and development costs. In addition, the
money comes in at the time of residential development,
which is usually too late to acquire the land in the vicinity.
Development of Meridian Settler’s Park (Site LU-4): This site
was acquired by the City and is now fifty percent developed
as park land.
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Chapter 5 – Project Financing Page 5 - 2
5.3 FUNDING
SOURCES
Development of New Parks: Developing new parks should
have a medium to low priority and reflect the rate of
community growth.
Development of Sport Fields: Should be an on-going
process as new Community Parks are developed. This can
be accomplished through partnerships with the sports
leagues.
Upgrade of Existing Parks: Capital money has already been
approved to upgrade Storey Park. This project plus other
existing park improvements should have a medium priority.
Development of Pathways and Trails: Pathways and Trails
development should have a medium to high priority because
of the interest and the fact that some opportunities now exist
for pathway development. In many instances, developers
will be required to complete pathways and trails segment as
part of the land development process.
Development of Specialized Facilities: Development of
specialized facilities such as a skate park, indoor ice rink,
outdoor water playground, adventure playground and other
features should occur as community interests demonstrate
the support.
Development of a Community Center: Provision of indoor
community space and a place for major indoor events should
have a medium priority.
The following are possible funding sources for the planning,
acquisition, development and maintenance of parks, open
space areas, and recreational areas.
1. Capital Facilities Fund: Many communities have a separate
budget item for major capital projects. It is usually called a
Capital Facilities Fund and reflects major capital
expenditures for the next six years. Meridian does not have
this type of Fund but looks at capital expenditures at each
budget year.
2. General Obligation Bond: These are voter-approved bonds
with the assessment placed on real property. The money
can only be used for capital improvements and not
maintenance. This property tax is levied for a specified
period of time (usually twenty to thirty years) and then the
City borrows against future tax revenue to pay for the bonds.
Passage requires a two-thirds majority approval by the
voters. One disadvantage of this type of levy is the interest
costs.
3. Serial Levy: A serial levy is a given tax amount levied on
property tax. It is different than a general obligation bond in
several ways: First, it only generates the amount of money
levied each year based on the set tax rate. Second it has a
Meridian Comprehensive Parks and Recreation System Plan 2003
Chapter 5 – Project Financing Page 5 - 3
limited life (one to two
years). Third, it only
requires fifty percent
approval by the voters.
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4. Revenue Bonds: These bonds are sold and paid from the
revenue produced from the operation of a facility. This
approach requires voter approval.
5. H.U.D. Block Grants: Grants from the Federal Department of
Housing and Urban Development are available for a wide
variety of projects. Most are distributed in the lower income
areas of the community. Grants can be up to 100 percent of
project cost. Only a few areas of the community would be
eligible for this grant program.
6. Park Impact Fees: Park Impact Fees are fees imposed on
new development caused by the impacts their project has on
the City’s infrastructure. Park impact fees can only be used
for park land acquisition and/or development. Meridian has
this mechanism in place but the rate is quite low and does
not accurately reflect the true cost. The City’s current rate is
about $667.39 per single family residence and $607.14 per
multi-family residence. An option to paying the fees is for the
developer to receive credit by building the park site or
donating the land.
7. Certificates of Participation: This is a lease-purchase
approach where the City sells Certificates of Participation
(COP's) to a lending institution. The City then pays the loan
off from revenue produced by the facility or from its general
operating budget. The lending institution holds title to the
property until the COPs are repaid. This procedure does not
require a vote of the public but is subject to court approval.
8. Donations: The donations of labor, land or cash by service
agencies, private groups, or individuals is a popular way to
raise small amounts of money for specific projects. Such
service agencies as the Kiwanis and Rotary, often fund small
projects such as playground improvements.
10. Exchange of Property: An exchange of property between a
private landowner and the City can occur. For example, the
City could exchange an unneeded water reservoir site for a
potential park site currently under private ownership.
11. Joint Public/Private Partnership: This concept is relatively
new to park and recreation agencies. The basic approach is
for a public agency to enter into a working agreement with a
quasi-public or private corporation to help fund, build, and/or
operate a public facility. Several options exist:
One option is for the City to enter into an agreement with a
private for-profit organization that would manage and/or build
a facility. The City benefits in that it does not front the cost of
construction and may receive a concession fee. The private
operator benefits because the land is free (usually leased by
the City for a nominal fee) and often can receive certain tax
benefits. While the City would give up certain responsibilities
or control, it is one way of obtaining public facilities at a lower
cost.
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5.4 FINANCING
STRATEGY
Funding Sources:
A second option is for the City to partner with another public
agency, quasi-public agency or non-profit agency. An
example is for the City to enter into an operation agreement
with the Boys and Girls Club to operate a youth center. A
similar partnership is for the City and a private non-profit
youth sport group, such as the Police Activities League
(PAL), to share in the construction, operation and
maintenance of sport fields.
12. General Fund: This fund accounts for revenues and
expenditures that result from ongoing operations of City
functions. The City currently funds some park development
through this fund.
13. Utility Fee: This is a tax on electric, water, telephone, gas
and cable television services.
The cost to implement all of the recommendations in the Plan could
easily exceed $37 million. This is a significant amount although not
excessive considering this is the cost of ultimate development.
Financing the entire $37 million at one time is nearly impossible. In
addition, many of the projects are not needed at this time. As a
result, for budgeting purposes, a short-term (six years) financing
strategy is proposed. This strategy is presented as the Capital
Improvement Plan (CIP). This plan lists projects in priority with their
funding source.
The proposed CIP is intended to meet the immediate park and
recreation needs of the community based on a pay-as-you-go basis.
It should be noted that this strategy will not meet the longer term park
acquisition needs and some park sites may never be acquired.
Due to the small amount of the funding program and the extreme
need to purchase park property, it is recommended that the City
purchase several of the park sites over time. While this is obligating
future budgets to pay off the purchase, it is the only option available
to assure that park land will be available for future residents.
Table 5.1
Six-Year Funding Program - Capital Improvement Plan
City of Meridian
Funding Source Amount
Impact Fees $2,400,000
General Fund $2,400,000
Grants $500,000
Donations $100,000
Total Funding Sources $5,400,000
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Expenditures:
Table 5.2
Six-Year Expenditure Plan - Capital Improvement Plan
City of Meridian
Site Site Cost
Land Acquisition
C-2 Lochsa Falls Park (proposed) 30 acres
@$20,000/acre
$400,000
C-5 McDermott Cherry Lane Road Park
(proposed) 29 acres @$15,000/acre
$435,000
C-23 Locust Grove Road Park (proposed) P.A.L. $0
C-24 Eagle Road Park (proposed) 20 acres
@$25,000/acre
$1,685,000
Subtotal $2,520,000
New Park Development
C-2 Lochsa Falls Park (proposed) (Phase I) 30
acres @$6,000/acre
$900,000
N-25 Autumn Faire – Master Plan & Design only $11,000
LU-4
LU-4
Settler’s Park (Phase I)
26.8 acres @$70,000/acre
Settler’s Park (Phase II) 25 acres
Design and Utilities
$1,100,000
$150,000
C-5 McDermott Road Park (proposed)
(Design/Utilities Only) 29 acres
$150,000
C-21 Bear Creek Park (Final Phase) $225,000
M-26 Centennial Park – Design & Development $50,000
N-23 Park Stone Park – Master Plan & Design
only
$11,000
Subtotal $2,597,000
Park Renovation
C-18 Storey Park (Phase II) $225,000
N-8 8th Street Park $45,000
OS-9 Five Mile Creek Pathway $40,000
Subtotal $310,000
Miscellaneous Projects
-- Community Center $300,000
LU-4 Adventure Island Playground $200,000
Subtotal $500,000
TOTAL SIX YEAR PACKAGE $5,927,000
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Chapter 5 – Project Financing Page 5 - 7
5.5 PROJECT LIST A list of all projects in the Capital Improvement Plan are shown
below.
Table 5.3
All Projects to Complete the Capital Improvement Plan
City of Meridian
Site
No.
Facility
P
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Ac
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on
D
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U
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O
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Mini Parks
M-10 Tammy Street Park
M-26 Centennial Park X X
Neighborhood Parks
N-6 Chateau Park X X
N-8 8th Street Park X
N-25 Autumn Faire X X
N-22 Kiwanis Park (P) X X
N-23 Parkstone (P) X X
Community Parks
C-1 McMillan Road Park (P) X X X
C-2 Lochsa Falls Park (P) X X
C-3 North Meridian Park (P) X X X
C-5 McDermott Cherry Lane Park
(P)
X X
C-7 Tully Park X
C-11 Fairview Avenue Park (P) X X X
C-12 Fuller Park
C-13 Meridian Middle School Park X X
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Chapter 5 – Project Financing Page 5 - 8
Open Space
OS-9 Five Mile Creek Greenway X
OS-16 Ten Mile Creek Greenway X
OS-19 Nine Mile Drain Greenway X
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Site
No.
Facility
P
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g
Ac
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siti
on
D
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v
el
o
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U
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O
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Pathways and Trail Systems
T-1 Meridian Loop (P) X X
T-2 Bear Creek Connection (P) X X
T-3 Ridenbaugh Trail (P) X X
T-4 Five Mile Creek Trail (P) X X
T-5 Nine Mile Drain Trail X X
T-6 Ten Mile Creek Trail X X
T-7 Settlers Creek Trail X X
T-8 South Slough Trail X X
Specialized Facilities
Sports Field Complex (1) X X
Skate Park #1 X X
Skate Park #2 X
Group Picnic Area (1) X
Adventure Playground (1) X X
Water Playground (1) X X
Outdoor Reception Area (1) X
Community Center X
(P) = Proposed
C-17 Franklin Road Park (P) X X X
C-18 Storey Park X X X
C-20 Overland Road Park (P) X X X
C-21 Bear Creek Park X X
C-23 Locust Grove Park (P) X X X
C-24 Eagle Road Park (P) X X X
Large Urban Parks
LU-4 Meridian Settler’s Park X
LU-5 North Locust Grove McMillian
Park
X X X
Special Use Areas
SU-14 Generation Plaza
SU-15 City Hall Park
--- Outdoor Swimming Pool