TITLE
The Mayor and City Council shall discuss and possibly take action on approving the proposed 5-Year Capital Improvement Plan (Plan). Discussion and Action.
AGENDA ITEM DESCRIPTION
The 5-Year Capital Improvement Plan (Plan) is a 5-year estimate of the projects necessary to meet the capital priorities through FY19-20. The Plan was used as the basis for preparing the final FY15-16 Construction Improvement Projects (CIP) budget.
The Plan communicates timing and costs associated with acquiring, constructing, and maintaining publicly financed facilities and improvements with a total cost over $25,000 and a useful life of three or more years. Capital expenditures that are less than $25,000 with a useful life of less than three years are typically expended from the City's operating funds.
The Plan is updated annually to reflect changing priorities and economic conditions. All projects within the five years of the program have clear available and approved sources of funding and an allowance for maintenance and operating costs. Projects listed in “future years” do not have clear available and approved sources of funding.
Highlights of the 10-Year CIP are as follows:
• Total 5-Year CIP = $143.0 million
• Total Projects = 91
As FY15-16 is the only year formally adopted by Council, highlights of the FY15-16 requests are as follows:
• Total CIP Requests = $62.5 million (includes $28.3 million in grant funded projects)
• Total CIP Requests excluding grant funded projects = $34.2 million
• Total Projects = 64
CIP Sources of Funding
CIPs are funded by a variety of sources. Some of the noteworthy funding sources proposed to fund the FY15-16 requests include:
• General Governmental CIP Fund - Revenues in this fund consist of construction sales tax revenues.
• County Road Tax Fund - Revenues are from the Pinal County, voter-approved half-cent sales taxes.
• Development Impact Fee Funds - Revenues are from impact fees, meant to offset the impact of growth, at the time building permits are issues. Separate funds are established to account for the different types of impact fees collected.
• Highway User Revenue Fund (HURF) - Primarily referred to as the gasoline tax, revenues in HURF fund both capital projects and operating costs for restricted street and highway purposes.
CIP Requests
Departments are responsible for preparing and submitting CIP requests, which may include outside consultation to determine scope of projects. Departments are cognizant of available sources of funding to construct improvements and operate facilities if necessary.
As it is not unusual for individual capital projects to extend beyond a fiscal year, the Plan includes an estimate of unexpended amounts, appropriated in FY14-15, requested to be re-appropriated as part of the FY15-16 budget. This is referred to as “carryforward” appropriations. The FY15-16 plan is comprised of carryforward appropriations of $16.8 million plus FY15-16 requests of $45.8 million.
There are several summary schedules and detailed project information worksheets provided in the 5-Year CIP Plan as follows:
• Summary Schedules
o Schedule 1 - Capital Improvements by Department - This schedule summarizes projects, by department, and identifies estimated carryforward funding requests.
o Schedule 2 - Fund Cash Flows - This schedule summarizes projects by fund and estimates fiscal year end fund balances to determine whether funds have the capacity to finance the listed projects.
o Schedule 3 - Capital Improvements Alpha List - This schedule is a single alphabetical listing of all CIP projects.
• Project Information Worksheets
o Detailed Project Sheets
A listing of notable FY15-16 CIP project requests (in millions) and their funding sources is summarized below.
|
Project |
Request |
Funding Source(s) |
|
Maricopa Police Department Substation at Regional Park |
$ 3.8 |
Gen’l Gov’t |
|
Public Works Maintenance & Fire Admin. Facility |
$ 3.1 |
Gen’l Gov’t, DIF, HURF |
|
SR347 Overpass Project: Grant Funded Projects |
$ 25.0 |
Grants |
|
SR347 Overpass Project: AmTrak Station Rail/Siding |
$ 4.2 |
Grants, HURF |
|
Edison Road Extension - Connecting to SR238 |
$ 2.7 |
DIF |
|
All Other Projects |
$ 23.7 |
<various> |
|
Total |
$62.5 |
|
State Route 347 (SR347) Related Projects
The City has requested certain projects be funded relative to the SR347 grade separation initiative. A summary of the projects contained in the 5-year plan is as follows:
|
Project |
Request |
CIP Plan Year |
|
SR347 Overpass Project: Amtrak Station Relocation |
$ 1.4 |
FY15-16 |
|
SR347 Overpass Project: Amtrak Station Rail/Siding |
$ 4.2 |
FY15-16 |
|
SR347 Overpass Project: Honeycutt - SR347 to MCG Hwy |
$ 3.8 |
FY15-16 to FY16-17 |
|
SR347 Overpass Project: Transportation Center |
$ 0.8 |
FY18-19 |
|
Subtotal: SR347 Cash Funded Projects |
$ 10.2 |
|
|
SR347 Overpass Project: Grant Funded Projects |
$ 25.0 |
FY15-16 |
|
Total SR347 Overpass Project Requests |
$ 35.2 |
|
FY15-16 CIP Accomplishments
The proposed CIP requests accomplish the following:
• Funding for the completion a Police Department substation at the regional park and the Public Works & Fire Fleet Maintenance Facility.
• Appropriates funding for the SR347 Overpass Project which includes $25.0 million in grant funding.
• Maintains the City’s street maintenance program
This item will be presented by Brian A. Ritschel, Finance Director.
STAFF RECOMMENDATION
Staff recommends Mayor and City Council adopt the 5-Year Capital Improvement Plan.