Government Services Center Five Year Cost Comparison Option #1 Option #2 Net Cost Comparison Debt Service Operating Cost Revenue Net Cost/(Revenue) Debt Service Operating Cost Revenue Net Cost/(Revenue) Option #1 Option #2 FY 2011 $ - 507,360-507,360 $ - - 1,600,000 (1,600,000) $ 507,360 (1,600,000) FY 2012 174,017 27,907-201,924-512,500 (400,000) 912,500 201,924 912,500 FY 2013 174,017 28,465-202,482-371,370 165,000 206,370 202,482 206,370 FY 2014 174,017 29,035-203,052-399,237 166,650 232,587 203,052 232,587 FY 2015 174,017 29,615-203,632 461,415 360,525 208,317 613,624 203,632 613,624 Total $ 696,068 622,383-1,318,450 $ 461,415 1,643,633 1,739,967 365,081 $ 1,318,450 365,081 9,000 Note: *Operating cost includes the estimated per squarefoot facility charges and janitorial costs, grown at 2% annually. **Revenue includes the estimated Tangible Personal Property Tax estimate of $100,000, grown annually at 1%.
Government Services Center Consolidation 3 Option Analysis FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2036 25 Year Cost Option #1 - Minor Renovation of existing Municipal Services Building to extend life by 5-10 years. Rehabilitation Cost - Municipal Services Facility Replacement of Roof 250,000 - - - - - - - - - - - - 250,000 Electrical Work 125,000 - - - - - - - - - - - - 125,000 Mechanical Plumbing 20,000 - - - - - - - - - - - - 20,000 Building Renovations 500,000 - - - - - - - - - 375,000 - - 875,000 Moving (Cash Funded) 30,000 - - - - - - - - - 45,000 - - 75,000 Temporary Trailers (Cash Funded) 50,000 - - - - - - - - - 75,000 - - 125,000 IT Relocation and Furnishings (Cash Funded) 110,000 - - - - - - - - - - - - 110,000 Total MSB Rehabilitation Cost 1,085,000 - - - - - - - - - 495,000 - - 1,580,000 Rehabilitation Cost - Minor Rehab of Technical Services 1st Floor Minor Renovations 600,000 - - - - - - - - - 200,000 - - 800,000 2nd Floor Minor Renovations 600,000 - - - - - - - - - 200,000 - - 800,000 Total TSB Rehabilitation Cost 1,200,000 - - - - - - - - - 400,000 - - 1,600,000 Total Cost of Rehab 2,285,000 - - - - - - - - - 895,000 - - 3,180,000 Debt Service on Rehabilitation (20 yrs @ 5.5%, Tax-Exempt) Principal - 59,600 62,924 66,432 70,136 74,046 78,175 82,534 87,135 91,994 97,123 128,255 54,967 2,672,251 Interest - 114,417 111,093 107,585 103,881 99,971 95,842 91,483 86,882 82,023 76,894 120,847 20,118 1,932,032 Total Debt Service - 174,017 174,017 174,017 174,017 174,017 174,017 174,017 174,017 174,017 174,017 249,102 75,085 4,604,283 Cost By Fund (80% - General Fund and 20% Utility Funds, GF assumes full cost of technical services) Non-Utility Funds 152,000 154,005 154,005 154,005 154,005 154,005 154,005 154,005 154,005 154,005 154,005 220,455 66,450 4,226,790 Utility Funds 38,000 20,012 20,012 20,012 20,012 20,012 20,012 20,012 20,012 20,012 20,012 28,647 8,635 567,493 Total Cost By Fund 190,000 174,017 174,017 174,017 174,017 174,017 174,017 174,017 174,017 174,017 174,017 249,102 75,085 4,794,283 Economic Development Opportunities - Possible Ad Velorem Revenue (1% Annual Growth in Value) & Sale of Land Development of the Baptist Church Site ($3 million) - - - - - 24,000 24,240 24,482 24,727 24,974 25,224 25,476 29,285 557,741 Gateway Development Phase I ($8 million) - - - - - - 64,000 64,640 65,286 65,939 66,599 67,265 77,319 1,409,216 Gateway Development Phase II ($5 million) - - - - - - - - - 40,000 40,400 40,804 46,903 737,218 Sale of Gateway Phase II Land - - - - - - 1,600,000 - - - - - - 1,600,000 Additional Land Purchase at Gateway (290,000) - - - - - 290,000 - - - - - - - Total Ad Velorem Values (290,000) - - - - 24,000 1,978,240 89,122 90,014 130,914 132,223 133,545 153,507 4,304,175 Note: Assumes CRA is Renewed for the Duration of the Analysis Possible Ad Velorem and Sale of Land Revenue Breakdown CRA (290,000) - - - - 24,000 378,240 89,122 90,014 130,914 132,223 133,545 153,507 2,704,175 Penny Fund Revenue - - - - - - 1,600,000 - - - - - - 1,600,000 Total Ad Velorem Revenue (290,000) - - - - 24,000 1,978,240 89,122 90,014 130,914 132,223 133,545 153,507 4,304,175 Total Cost/(Revenue) 480,000 174,017 174,017 174,017 174,017 150,017 (1,804,223) 84,895 84,003 43,103 41,794 115,557 (78,422) 490,108 Total Cost/(Revenue) By Fund Non-Utility Funds 152,000 154,005 154,005 154,005 154,005 154,005 154,005 154,005 154,005 154,005 154,005 220,455 66,450 4,226,790 Utility Fund 38,000 20,012 20,012 20,012 20,012 20,012 20,012 20,012 20,012 20,012 20,012 28,647 8,635 567,493 Penny Fund - - - - - - (1,600,000) - - - - - - (1,600,000) CRA Fund 290,000 - - - - (24,000) (378,240) (89,122) (90,014) (130,914) (132,223) (133,545) (153,507) (2,704,175) Total Cost/(Revenue) All Funds 480,000 174,017 174,017 174,017 174,017 150,017 (1,804,223) 84,895 84,003 43,103 41,794 115,557 (78,422) 490,108
Government Services Center Consolidation 3 Option Analysis FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2036 25 Year Cost Option #2 - Short-term Rental at the Gateway Site and Building a New 15,000 to 17,000 sq.ft. Municipal Services Facility. Short-Term Leasing Costs Rent (14,000 square ft.) - 364,000 378,000 406,000 406,000 406,000 - - - - - - - 1,960,000 Moving Expenses - 15,000 - - - - - - - - - - - 15,000 IT Relocation and Furnishings - 110,000 - - - - - - - - - - - 110,000 Maintenance Savings (2% Inflation) - (27,360) (27,907) (28,465) (29,035) (29,615) - - - - - - - (142,383) Custodial Services (1.49 @ 2% Inflation) - 20,860 21,277 21,703 22,137 22,580 - - - - - - - - Rent Credit for Lease of Public Parking - - - - (133,487) (366,513) - - - - - - - (500,000) Total Short-Term Leasing Costs - 482,500 371,370 399,237 265,615 32,452 - - - - - - - 1,442,618 Cost of New Municipal Services Facility Construction of New Municipal Services Facility - - 430,000 3,870,000 - - - - - - - - - 4,300,000 Moving Expenses - - - - 15,000 - - - - - - - - 15,000 Demolition of Existing Municipal Services Bldg. (Cash) - 30,000 - - - - - - - - - - - 30,000 Furnishings - - - - 25,000 - - - - - - - - 25,000 Maintenance Allocation (2% inflation) 54,910 56,008 57,128 58,271 59,436 60,625 61,838 63,074 83,225 1,498,987 Total Cost of New Municipal Services Facility - 30,000 430,000 3,870,000 94,910 56,008 57,128 58,271 59,436 60,625 61,838 63,074 83,225 5,868,987 Rehabilitation Cost - Minor Rehab of Technical Services 1st Floor Minor Renovations - 50,000 550,000 - - - - - - - 200,000 - - 800,000 2nd Floor Minor Renovations - - 50,000 550,000 - - - - - - 200,000 - - 800,000 Total TSB Rehabilitation Cost - 50,000 600,000 550,000 - - - - - - 400,000 - - 1,600,000 Debt Service (20 yrs @ 5.5%, Tax-Exempt) Principal - - - - 158,034 166,845 176,148 185,969 196,338 207,285 218,842 242,538 24,566 5,807,856 Interest - - - - 303,382 294,570 285,267 275,446 265,077 254,130 254,130 252,435 8,991 3,927,405 Total Debt Service - - - - 461,415 461,415 461,415 461,415 461,415 461,415 472,973 494,973 33,557 9,735,261 Cost By Fund (80% - General Fund and 20% Utility Funds, GF assumes full cost of technical services) Non-Utility Funds - 410,000 297,096 319,390 672,041 454,388 429,323 430,237 431,170 432,121 442,699 461,980 94,480 10,590,025 Utility Funds - 102,500 74,274 79,847 149,900 95,487 89,220 89,449 89,682 89,920 92,111 96,067 22,303 2,265,397 Total Cost By Fund - 512,500 371,370 399,237 821,940 549,875 518,543 519,686 520,851 522,040 534,810 558,047 116,783 12,855,422 Economic Development Opportunities - Possible Ad Velorem Revenue (1% Annual Growth in Value) & Sale of Land Development of the Baptist Church Site ($3 million) - - - - - 24,000 24,240 24,482 24,727 24,974 25,224 25,476 29,285 557,741 Gateway Development Phase I ($8 million) & Parking - (500,000) 64,000 64,640 65,286 65,939 66,599 67,265 67,937 68,617 69,303 69,996 80,458 1,226,302 Gateway Development Phase II ($5 million) - - - - 40,000 40,400 40,804 41,212 41,624 42,040 42,461 42,885 49,296 978,863 Sale of Gateway Phase II Land 1,600,000 - - - - - - - - - - - - 1,600,000 Total Ad Velorem Values 1,600,000 (500,000) 64,000 64,640 105,286 130,339 131,643 132,959 134,289 135,632 136,988 138,358 159,039 4,362,906 Note: Assumes CRA is Renewed for the Duration of the Analysis Possible Ad Velorem and Sale of Land Revenue Breakdown CRA - (500,000) 64,000 64,640 105,286 130,339 131,643 132,959 134,289 135,632 136,988 138,358 159,039 2,762,906 Penny Fund Revenue 1,600,000 - - - - - - - - - - - - 1,600,000 Total Ad Velorem Revenue 1,600,000 (500,000) 64,000 64,640 105,286 130,339 131,643 132,959 134,289 135,632 136,988 138,358 159,039 4,362,906 Total Cost/(Revenue) (1,600,000) 1,012,500 307,370 334,597 716,654 419,536 386,901 386,727 386,563 386,409 397,822 419,689 (42,256) 8,492,517 Total Cost/(Revenue) By Fund Non-Utility Funds - 410,000 297,096 319,390 672,041 454,388 429,323 430,237 431,170 432,121 442,699 461,980 94,480 10,590,025 Utility Fund - 102,500 74,274 79,847 149,900 95,487 89,220 89,449 89,682 89,920 92,111 96,067 22,303 2,265,397 Penny Fund (1,600,000) - - - - - - - - - - - - (1,600,000) CRA Fund - 500,000 (64,000) (64,640) (105,286) (130,339) (131,643) (132,959) (134,289) (135,632) (136,988) (138,358) (159,039) (2,762,906) Total Cost/(Revenue) All Funds (1,600,000) 1,012,500 307,370 334,597 716,654 419,536 386,901 386,727 386,563 386,409 397,822 419,689 (42,256) 8,492,517
Government Services Center Consolidation 3 Option Analysis FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2036 25 Year Cost Option #3 - Relocate All City Functions to the Nielsen Site Leasing Costs Base Rent - 50,000 Square Feet (CPI - Inflator 3%) 365,625 502,125 517,189 532,704 548,686 565,146 582,100 599,564 617,550 636,077 655,159 674,814 1,020,717 18,672,733 Operating Expenses ($7 per sqft. - Inflated at 1%) 262,500 353,500 357,035 360,605 364,211 367,854 371,532 375,247 379,000 382,790 386,618 390,484 448,851 10,246,471 Additional Build out ($10,000/per $100,000 @ $2.5 Million) 187,500 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000-5,187,500 Maintenance Services ($1.49 sq. w/2% Inflator) 55,875 75,990 77,510 79,060 80,641 82,254 83,899 85,577 87,289 89,034 90,815 92,631 122,225 2,489,857 Moving Expenses 60,000 - - - - - - - - - - - - 60,000 IT Relocation and Furnishings 250,000 - - - - - - - - - - - - 250,000 Adjustment for Vacated Space Total Short-Term Leasing Costs 1,181,500 1,181,615 1,201,734 1,222,370 1,243,538 1,265,254 1,287,532 1,310,388 1,333,839 1,357,901 1,382,592 1,407,929 1,591,793 36,906,562 Cost By Fund (95% - General Fund and 5% Utility Funds) Non-Utility Funds 1,122,425 1,122,534 1,141,647 1,161,251 1,181,361 1,201,991 1,223,155 1,244,869 1,267,147 1,290,006 1,313,462 1,337,533 1,512,203 35,061,234 Utility Funds 59,075 59,081 60,087 61,118 62,177 63,263 64,377 65,519 66,692 67,895 69,130 70,396 79,590 1,845,328 Total Cost By Fund 1,181,500 1,181,615 1,201,734 1,222,370 1,243,538 1,265,254 1,287,532 1,310,388 1,333,839 1,357,901 1,382,592 1,407,929 1,591,793 36,906,562 Economic Development Opportunities - Possible Ad Velorem Revenue (1% Annual Growth in Value) & Sale of Land Development of the Baptist Church Site ($3 million) - - - - - 24,000 24,240 24,482 24,727 24,974 25,224 25,476 29,285 557,741 Development of Loudon/Virginia Site ($2 million) - - - - - - - 16,000 16,160 16,322 16,485 16,650 19,138 332,974 Gateway Development Phase I ($8 million) - - - - - - 64,000 64,640 65,286 65,939 66,599 67,265 77,319 1,409,216 Gateway Development Phase II ($5 million) - - - - - - - - - 40,000 40,400 40,804 46,903 737,218 Sale of Gateway Phase II Land - - - - - - 1,600,000 - - - - - - 1,600,000 Additional Land Purchase at Gateway (290,000) - - - - - 290,000 - - - - - - - Total Ad Velorem Values (290,000) - - - - 24,000 1,978,240 105,122 106,174 147,235 148,708 150,195 172,645 4,637,149 Possible Ad Velorem and Sale of Land Revenue Breakdown CRA (290,000) - - - - 24,000 378,240 105,122 106,174 147,235 148,708 150,195 172,645 3,037,149 Penny Fund Revenue - - - - - - 1,600,000 - - - - - - 1,600,000 Total Ad Velorem Revenue (290,000) - - - - 24,000 1,978,240 105,122 106,174 147,235 148,708 150,195 172,645 4,637,149 Total Cost/(Revenue) 1,471,500 1,181,615 1,201,734 1,222,370 1,243,538 1,241,254 (690,708) 1,205,266 1,227,665 1,210,666 1,233,884 1,257,735 1,419,148 32,269,413 Total Cost/(Revenue) By Fund Non-Utility Funds 1,122,425 1,122,534 1,141,647 1,161,251 1,181,361 1,201,991 1,223,155 1,244,869 1,267,147 1,290,006 1,313,462 1,337,533 1,512,203 35,061,234 Utility Fund 59,075 59,081 60,087 61,118 62,177 63,263 64,377 65,519 66,692 67,895 69,130 70,396 79,590 1,845,328 CRA Fund - - - - - - (1,600,000) - - - - - - (1,600,000) Penny Fund 290,000 - - - - (24,000) (378,240) (105,122) (106,174) (147,235) (148,708) (150,195) (172,645) (3,037,149) Total Cost/(Revenue) All Funds 1,471,500 1,181,615 1,201,734 1,222,370 1,243,538 1,241,254 (690,708) 1,205,266 1,227,665 1,210,666 1,233,884 1,257,735 1,419,148 32,269,413
Government Services Center 25 Year Cost Comparison Option #1 Option #2 Net Cost Comparison Debt Service Operating Cost Revenue Net Cost/(Revenue) Debt Service Operating Cost Revenue* Net Cost/(Revenue) Option #1 Option #2 FY 2011 $ - 507,360-507,360 $ - - 1,600,000 (1,600,000) $ 507,360 (1,600,000) FY 2012 174,017 27,907-201,924-512,500 (400,000) 912,500 201,924 912,500 FY 2013 174,017 28,465-202,482-371,370 165,000 206,370 202,482 206,370 FY 2014 174,017 29,035-203,052-399,237 166,650 232,587 203,052 232,587 FY 2015 174,017 29,615-203,632 461,415 360,525 208,317 613,624 203,632 613,624 FY 2016 174,017 30,208 24,000 180,225 461,415 88,460 234,400 315,475 180,225 315,475 FY 2017 174,017 30,812 1,978,240 (1,773,411) 461,415 57,128 236,744 281,800 (1,773,411) 281,800 FY 2018 174,017 31,428 89,122 116,323 461,415 58,271 239,111 280,575 116,323 280,575 FY 2019 174,017 32,057 90,014 116,060 461,415 59,436 241,502 279,349 116,060 279,349 FY 2020 174,017 32,698 130,914 75,801 461,415 60,625 243,917 278,123 75,801 278,123 FY 2021 174,017 33,352 132,223 75,146 472,973 61,838 246,356 288,454 75,146 288,454 FY 2022 249,102 34,019 133,545 149,575 494,973 63,074 248,820 309,227 149,575 309,227 FY 2023 249,102 34,699 134,881 148,920 494,973 64,336 251,308 308,000 148,920 308,000 FY 2024 249,102 35,393 136,229 148,265 494,973 65,623 253,821 306,774 148,265 306,774 FY 2025 249,102 36,101 137,592 147,611 494,973 66,935 256,359 305,548 147,611 305,548 FY 2026 249,102 36,823 138,968 146,957 494,973 68,274 258,923 304,323 146,957 304,323 FY 2027 249,102 37,559 140,357 146,304 494,973 69,639 261,512 303,099 146,304 303,099 FY 2028 249,102 38,311 141,761 145,652 494,973 71,032 264,127 301,877 145,652 301,877 FY 2029 249,102 39,077 143,178 145,000 494,973 72,453 266,769 300,656 145,000 300,656 FY 2030 249,102 39,858 144,610 144,350 492,939 73,902 269,436 297,404 144,350 297,404 FY 2031 246,773 40,656 146,056 141,372 495,220 75,380 272,131 298,469 141,372 298,469 FY 2032 75,085 41,469 147,517 (30,963) 494,973 76,887 274,852 297,008 (30,963) 297,008 FY 2033 75,085 42,298 148,992 (31,609) 494,973 78,425 277,601 295,797 (31,609) 295,797 FY 2034 75,085 43,144 150,482 (32,253) 488,798 79,994 280,377 288,415 (32,253) 288,415 FY 2035 75,085 44,007 151,987 (32,895) 33,557 81,593 283,180 (168,029) (32,895) (168,029) FY 2036 75,085 44,887 153,507 (33,535) 33,557 83,225 286,012 (169,229) (33,535) (169,229) Total $ 4,604,283 1,401,236 4,594,175 1,411,344 $ 9,735,261 3,120,161 7,187,226 5,668,197 $ 1,411,344 5,668,197 9,000 Note: *Operating cost includes the estimated per squarefoot facility charges and janitorial costs, grown at 2% annually. **Revenue includes the estimated Tangible Personal Property Tax estimate of $100,000, grown annually at 1%.