City of Northampton

Capital Plan
 Fiscal Years 2010 and
2011
September 2, 2010
The goal of our Capital Plan is to make the needed investments in the capital assets
that support the delivery of services to Northampton’s residents, businesses and
visitors. These assets include 150 miles of paved streets, 15 miles of unpaved
public ways, 70 miles of sidewalks and crosswalks, 20 bridges, traffic control signs
and signals, 1,400 fire hydrants, 2,400 manholes, 3,000 catch basins, 60 miles of
storm drain pipes, flood control dikes, 120 acres of recreational fields, 10 miles of
bicycle paths, Musante Beach Recreational Facility, 4 City cemeteries and over 100
heavy-duty vehicles and construction equipment. It also includes all of the fire
trucks, ambulances and police vehicles. We have over one million square feet in 70
City and School facilities and all of the systems necessary to support those
structures. In addition, there are 150 miles of water pipes, 1,000 water valves,
8,000 water meters and 100 miles of sewer pipes.

The City of Northampton CAPITAL PLANNING & DEBT MANAGEMENT POLICY

GUIDELINES (2002) state: “The funding of capital projects may fall within available
revenues (taxes or fees) or new revenue sources (debt or capital exclusions). …
Where possible, special assessment, revenue, or other self-supporting bonds will be
used instead of general obligation bonds. For example, water, sewer, solid waste,
and parking system capital needs will be financed from revenues generated from
those enterprises.”

The PLANNING & DEBT MANAGEMENT POLICY GUIDELINES also offer guidance on
appropriate levels of debt based on the benchmarks that the rating agencies use to
set our bond rating

■ Overall net direct debt will not exceed 10% of assessed valuation.

▪ Net direct debt is direct debt minus self-supporting debt (debt that the City has
pledged to repay from a source separate from its general tax revenues, such as
water and sewer utility fees and charges). An increase in net direct bonded debt
as a percentage of assessed valuation can mean that the City’s ability to repay is
diminishing. Long-term debt dependent on other revenues, such as water, sewer,
solid waste, and parking system debt, should be calculated as a percentage of
the revenue sources on which it depends.

FY10 Assessed Valuation: $ 3,193,550,980 x 10% = $319,355,098

Overall net direct debt FY11: $5,216,175 or 1.6%

■ Total General Fund general obligation debt service and capital

spending (including debt exclusion and capital exclusion overrides) will not
exceed 10% of General Fund operating revenues.

▪ The credit rating agencies, such as Standards and Poor’s and Moody’s Investor
Services, consider debt service on net direct debt (i.e. non-self-supporting)
exceeding 20% of net operating revenues as a potential problem. Dramatic
increases in debt service can also indicate potential problems unless revenue
sources increase to keep pace with these additions to fixed costs. The 10%

Total General Fund $74,595,484 less Interfund Transfers, Reserves

and State Offset Receipts = $68,746,211: 7.6%
 benchmark provides a policy to apply to new projects and the growth of revenues
to finance such projects.

■ General Fund levy-supported general obligation debt service and

capital spending (exclusive of dedicated revenue sources such as debt
exclusion and capital exclusion overrides, state reimbursements, parking
system receipts, etc.) will not exceed 5% of net General Fund operating
revenues.

▪ As of FY 2002, levy-supported general obligation debt service and capital

spending equaled 1.6% of net General Fund operating revenues. A goal of
increasing the City’s annual capital spending and levy-supported debt to a
minimum of 5% of net operating revenues should be pursued over a multi-year
period.

Levy-Supported Debt Service and Capital Spending (within Levy

Limit) as a % of net General Fund operating revenues: 2.4%

■ The City will attempt to maintain a long-term debt schedule so that at least
50% of outstanding principal will be paid within 10 years.

▪ Debt service costs include principal and interest payments. Debt service costs
are also a significant portion of fixed costs. A reasonable maturity schedule not
only reduces interest costs, but recognizes that capital needs will continue to be
identified and recommended. Credit rating bureaus review these maturity
schedules and future capital needs.

FY 11: 68.7% FY15: 77.6%

FY12: 71.2% FY16: 79.3%

FY13: 73.6% FY17: 80.8%

FY14: 75.7%

80% of outstanding debt paid off in 10 years from FY18 onward

The Capital Improvements Committee reviewed 78 projects with a total value of

$35,711,247. The Committee met with each Department Head about their
proposed projects and analyzed the available revenue streams to fund each project.
After reviewing the recommendations of the Committee, I am bringing forward 24
projects, at a cost of $ 2,002,368, to be funded through the General Fund and 14
projects to be funded by other revenue sources including State and Federal grants,
receipts reserved and revolving funds.

The FY 2010-11 Plan is funded through:

∙ $442,868 of previously ∙ $200,000 of Free Cash

appropriated funds
∙ $871,500 of Long-term Borrowing
∙ $343,000 of FY2010 and 2011
Cash Capital ∙ $1,040,000 in State and Federal
Grants
∙ $145,000 from Capital
Stabilization Fund

There will be additional projects coming forward later in the year, including
Enterprise Fund equipment, the DPW facility, and perhaps CPA/CDBG funded
projects upon the completion of the awarding process for those funds. The
proposed total for those projects will be $9,382,500, with the DPW facility
improvements accounting for the lion’s share of that figure. The City’s General
Fund will be responsible for $4,264,500 or 45% of the total cost.

This Capital Plan is predicated on the passage of a $10 million override to partially
fund the construction of a new Police Station. That means that we have reserved
$7.9 million of general obligation debt that will, along with the proposed override,
allow the City to build this much needed facility.

With the exception of the proposed DPW and Police facility improvements, all of the
borrowings to fund the plan will be paid off in five years. This is in keeping with the
PLANNING & DEBT MANAGEMENT POLICY GUIDELINES which state:

Bonds will be paid back within a period not to exceed the expected useful life
of the capital project. The term and amounts of the bonds will also not
exceed statutory limits outlined in Massachusetts General Laws.

All of the borrowing for equipment and paving are in compliance with MGL Chapter
44, § 7(6) and 7(9); these bonds will be fully paid in five years.

FY 20010-11 Capital Improvement Program Summary

General Government

MIS Department

FY10 -11∙ $150,000∙ MUNIS Server Migration to MS SQL Database ∙ Cash Capital

The financial software provider for the City is changing its underlying
operating system by April 2012 at which time our current system and
 database will no longer be supported. The software requirements call for
different server hardware specifications.

Planning Department

FY10 and FY11 ∙ $200,000 ∙ Tax Title Other Acquisitions ∙ Free Cash

This approach has helped clear up titles and has also helped to acquire open
space. The Funds used are paid to the City for outstanding taxes and revert
to Free Cash at year end. This allocates $100,000 per year for FY10 and 11.
Central Services

FY 10 and 11 ∙ $45,000 ∙ Security Access Systems for City Hall, Memorial Hall,
Municipal Bldg

There have been break-ins in the buildings in the downtown campus. The
project was deemed a safety issue.

FY 10 ∙ $20,000∙ Wireless Fire Alarm System for City and School Buildings

This is deemed a safety issue.

FY10 ∙ $18,000∙ City Hall- Upgrade/Expand Hearing Room

Staff changes present the opportunity to upgrade and reorganize the Hearing
Room and City Council/License Clerk's office.

FY11 ∙ $10,000∙ Memorial Hall ∙ Upgrade Electric Service and Exterior Wiring

Damaged components of the electrical service pose health and safety

concerns. The work will be done by the City Electrician.

Recreation Department

FY10 ∙ $45,000 ∙ 15 Passenger Mini-bus

The replacement of the 15 passenger van with a mini-bus meets National

Highway Traffic Safety Administration (NHTSA) guidelines and will greatly
expand the ability of the department to offer more affordable, quality
programs. It will also be ADA Compliant. The High School teams are no
longer allowed to use the 15 passenger van to transport students. A new
mini-bus would ensure that the shared usage could again take place,
therefore helping to reduce transportation budgets.

Public Safety

Police Department

FY10 ∙ two admin vehicles ∙ $62,000

FY11 ∙ one admin vehicle ∙ $31,500

FY11 ∙ $48,000 ∙ Replace Supervisor’s Vehicle

These vehicles are being replaced in accordance with the rotation plan.

Fire Department

FY10 ∙ Turnout Gear ∙ $128,750 ∙ Funded through savings in FY11 interest costs
 This is a high priority based on health and safety and is already one year
beyond the normal five year replacement schedule. Turnout gear typically
lasts ten years including five years of frontline use and five years of backup
use.

FY10 ∙ $24,500 ∙ Apparatus Floor Refurbishment ∙ FD Revolving Fund

This project will stop the deterioration of the apparatus floor and extend the
life of the infrastructure. Not doing this now will cause increased cost later on
(Central Services had this on their list of priorities for FY13 at a cost of
$65,000).

FY11 ∙ 36,000 ∙ Staff Inspection Vehicle ∙ FD Prevention Revolving

This vehicle replaces a 2002 vehicle with over 115,000 miles on it. The
Department has shifted from using large and expensive pieces of apparatus
to complete the majority of inspections, and administrative functions to
smaller and more efficient vehicles. The vehicle is used for emergency
response to transport personnel to an emergency scene or to rapidly move to
meet an ambulance to ensure that these units are appropriately staffed.
FY10 ∙ Ambulance Rotation ∙ $220,000 ∙ Receipt Reserved for Ambulance

This allows for three primary units, one backup. In 2012 it will be necessary
to keep an additional unit as a mechanical backup as call volume will have
reached the point that four units will need to be in service to meet the
demand. The life expectancy of an ambulance depends upon a number of
variables, including mileage and intensity of use, but generally an ambulance
can be expected to serve three years as a primary vehicle, three years in a
back-up capacity and two years in a reserve capacity. Periodic replacement
of vehicles is an inevitable cost of any ambulance service, and a new
ambulance costs approximately $220,000.

FY10 and FY11 ∙ $148,000 ∙ Four Cardiac Monitors ∙ Receipt Reserved for
Ambulance

FY10 ∙ $72,000 FY11 ∙ $76,000

This replaces critical Advanced Life Support (ALS) equipment; the older units
will be placed on the first response vehicles.

FY10 and FY11 ∙ $62,000 ∙ Four Automated CPR Machines ∙ Receipt Reserved for
Ambulance

FY10 $30,000 FY11 $32,000

These machines allow for effective CPR in a moving ambulance.

FY10 ∙ $35,500 ∙ EMS Response/Admin Vehicle ∙ Receipt Reserved for Ambulance

Part of the ongoing every other year vehicle replacement plan. This will
replaces a 2002 vehicle with over 100K miles.

FY11∙ $95,000 ∙ Extrication Tool Update ∙ Receipt Reserved for Ambulance

The Department maintains one set of these three tools with a useful life of 5
to 10 years. Each of these tools is at the end of its useful life. This project will
update the entire set.

Parking Division

FY11 ∙ $75,000 ∙LED lighting in Parking Lots ∙ Parking Meter Receipts Reserved
Fund

Installing LED lights are energy conservation and cost saving measures.

FY11 ∙ 50,000 ∙ Replace Flat Bed Truck ∙ Parking Meter Receipts Reserved Fund

The existing sander truck has rust in the chassis. The sander and plow
attached to the existing truck are in excellent condition and will not need to
be replaced.

FY11 ∙ $75,000 ∙ Repair Armory Street Sidewalks ∙ Parking Meter Receipts

Reserved Fund

The Armory St. lot has a very high utilization and is used for special events.
Because of this heavy use over the years the original shrubs have died long
ago. Infilling these areas with concrete to match the existing sidewalks will
make this a much safer lot and make it much easier to maintain.

Public Works

FY10 and 11 ∙ $410,000 ∙ Equipment ∙ General Fund

This will fund the replacement of two 17 year old 4x4 dump trucks and two
25 year old 6 wheel dump trucks. These vehicles are needed for snow
fighting.

FY10 ∙ $140,000 ∙ DPW Bucket Loader ∙ Parking Meter Receipts Reserved Fund

This will replace one of the twenty year old loaders. The DPW will give the
Parking Division one of the other older Dresser loaders to be used this
upcoming year.

Education
Northampton Public Schools

FY10 ∙ $100,000 ∙ Wheelchair School Bus ∙ General and Revolving Funds

This adds a wheelchair bus to the fleet and is needed

because of changes in enrollment. A new wheelchair
Bridge Street
accessible school bus will pay for itself in 3 years versus
School
contracting a van service at $33,000/year. The School Bus
Revolving Fund will pay $50,000 of the cost. Bridge Street School
has two problems –
FY10 ∙ $10,000 ∙ JFK Heating Plant Chimney Cap ∙ General Fund storm water drainage
Cash Capital and sewage treatment
capacity. Storm water
One of the brick stacks on the top of JFK that emits gases is causing flooding of
from the boiler room has a concrete cap that has been the lower level of the
knocked partially off the stack. This may have happened building during bad
with cranes were brought in to place air handlers on the storms because the
roof some time ago. The misplaced cap is now causing seven detention
water to get into the chimney which is deteriorating the basins (drywells) are
masonry. The cap will be reset and resealed. failing. There are
three under the
FY10 ∙ $32,800 ∙ Bridge Street Parapet Repairs ∙ General Fund playground on the
back of the building,
Repairs to the parapet are needed and are more three under the
extensive than originally estimated. It has disintegrated; parking lot and one
an approximately 14 foot section needs to be rebuilt. This near the boiler room.
project would use remaining funds from Painting Project Storm water needs to
be tied into the city’s
(FY09 – $12,800) and Bus Loop (FY08 – $20,000) for total
storm water system.
of $32,800.
Also, Bridge is
FY 10 and FY 11 ∙ $20,000 ∙ Replace Carpet with Rubber Tile ∙ basically on a septic
system; not City
Capital Stabilization
sewer. Apparently,
This will replace 20 year old carpet with rubber tiles in two septic tanks were
added when the
rooms.
building was
FY10 ∙ $75,000 ∙ Jackson Street Asbestos tile floor replacement renovated as it was
∙ General Fund thought the city sewer
system did not have
Asbestos flooring in the old section of Jackson Street the capacity. Now
School needs replacement. All classrooms and corridors in that capacity in the
city sewer plant is
the old section needs to be replaced before it becomes a
available, the school
safety/health issue
needs to be tied in.
FY 11 ∙ 50,000 ∙ Leeds Bell Tower /Overhang Repairs ∙ Capital Currently the sewage
is pumped into
Stabilization
holding tanks via the
sewer ejection pumps
which are both from
1991. The DPW will
engineer the plan,
which will defray the
total cost of the
 then be repaved.

The brick facing on the tower columns has failed due to water and the water
is leaking into the library. The brick veneer will be removed and the columns
will be painted and flashing will be installed. The overhang over the main
entrance pitches toward the building instead of away from it and this allows
standing water to remain which has damaged the ceiling. The roof will be
stripped, re-pitched and replaced; a gutter will be added and then the
underside of the overhang will be repaired.

Smith Vocational and Agricultural High School

FY11 ∙ $100,000 ∙ Restaurant renovations ∙ General Fund Borrowing ($50,000)

The Culinary Arts Program’s Oliver Smith Restaurant needs updated and
upgraded facilities. The Department Head and Trustees have engaged
Thomas Douglas Architects to design an updated floor plan with electrical
and other code upgrades. The last facelift was more than 10 years ago. The
Department Head and instructors have brought in an industry approved
curriculum that includes dining management and restaurant hospitality. The
students in the Culinary Program need a more efficient workspace to support
this curriculum. Along with the physical changes, the curriculum software and
computers will need to be upgraded. The overall design adds seating which is
also will be available for Community use as a meeting room / function room.
This funding will be matched with $50,000 from the School’s Stabilization
Fund.

FY10 ∙ $90,000 ∙ Auto Body- Water Based Spray Paint Booth ∙ General Fund
Borrowing ($50,000)

Industry standards have changed requiring Auto Body paint spraying now be
water based. SVAHS needs to comply by January 2011. The project includes
a new paint booth, re-locating the mixing booth and re-locating the air
compressor. Since the air compressor is still viable, it will not be replaced
until the need presents itself. Smith Vocational will use $40,000 of the
Federal
Perkins grant
Bridge Street School Drainage Project to fully fund
FY10 ∙ $15,000 ∙ Bridge Street School Sewer Injection this project.
Pumps

FY10 ∙ $75,000 ∙ Bridge St. Sch. Detention The Capital

Basin/Storm Water Tie In Committee and I
This will also use remaining FY09 Capital concur on the need
Project to rehabilitate our
($22,000) for a total of $97,000.

FY10 ∙ $125,000 ∙ Bridge Street School Parking Lot

Repaving
DPW facilities. Their recommendation reads, “The Committee recommends all three
projects move forward. The need has been documented and meets the
health/safety and infrastructure protection ranking criteria. Delay will only increase
cost.”

After the planning process is complete, I will ask the council to vote on the General
and Enterprise Fund borrowing necessary to fund this multi-phased project.

I will also be bringing forward borrowing authorizations of $700,000 to fund

equipment replacement for the Water and Sewer Divisions. The Water and Sewer
Divisions’ share of the Milton Street reconstruction will require a borrowing
authorization of $650,000.

The paved roads in Spring Grove Cemetery have served their useful life and need
repair. It will be done over two years and funded through the Cemetery Trust fund
as the funds become available.

Forbes Library will be applying for CPA funding to replace windows and to install
climate controls for their special collections room. If that project is funded, it will
come back to you for a vote to appropriate the funds from the CPA Fund.

I want to thank department heads and all of the members of the CIPC for their hard
work and constructive input. CIPC members include City Council Finance
Committee representative David Murphy (Chair), Mayor’s appointees William
Grinnell and Rob Ostberg, School Department representative Susan Wright, SVAHS
representative Nancy Roberts, Planning Board representative Mark Sullivan, and ex-
officio staff representatives Ned Huntley, Wayne Feiden, George Zimmerman, Joyce
Karpinski and Finance Director Chris Pile.

Governments often skimp on capital expenditures when times are hard. The City of
Northampton has a legacy of investing in our City through both good and bad times.
Our water and sewer systems were envisioned over a century ago and continue to
meet our needs today. Our schools are our investment in today’s children as they
will in turn invest in the next generation, just as our parents invested in us. As I
noted at the beginning of this plan, capital assets support the delivery of services to
Northampton’s residents, businesses and visitors. The staff that works here use the
vehicles, the equipment, the buildings and the infrastructure to meet the needs of
our community. Over the next few months we will be having an important public
conversation about the need for a new Police facility. I look forward to those
discussions with Councilors and the community.

Respectfully,

Mary Clare Higgins

Mayor, City of Northampton