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HomeMy WebLinkAbout180-92 RESOLUTION• RESOLUTION NO. 1R0-92 A RESOLUTION ADOPTING THE 1993-1997 CAPITAL IMPROVEMENTS PROGRAM DOCUMENT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS THAT: Section 1. The City Council hereby approves the adoption of the 1993-1997 Capital Improvements Program document as prepared by staff to he incorporated into the 1993 Annual Budget and Work Program. A copy of the program authorized for approval is attached hereto marked and made a part hereof. PASSED AND APPROVED this 1st day of December 1992. ATTEST - By: c-rnuo� Sherry i° Thomas, City Clerk APPROVED: By: Fred Hanna. Mayor City of Fayetteville, Arkansas 5 -Year Capital Improvements Program 1993 - 1997 Executive Summary MICR ()FILMED CITY OF FAYETTEVILLE 1993-1997 Staff Proposed Capital Improvements Program Executive Summary Compiled by: Ben Mayes, Administrative Services Director Stephen Davis, Budget Coordinator Scott Huddleston, Financial Analyst This document is printed on recycled paper CITY OF FAYETTEVILLE, ARKANSAS FIVE-YEAR CAPITAL IMPROVEMENTS PROGRAM EXECUTIVE SUMMARY TABLE OF CONTENTS Transmittal Letter 1-3 Project Map 4-5 CIP Program Overview 6-10 Summary Chart - Capital Improvements Program 11 Summary Chart - CIP By Fund / All Sources 12 Summary Chart - Sales Tax Bond Issue 13 Summary Chart - Sales Tax Pay -As -You -go 14 Combined Summarization 15-18 Comprehensive Detail 19-22 Project Rankings by Funding Source 23-33 Potential Projects List 34 Long -Range Projects List 34 1jay Err alis TIILE THE CITY Of FAYETTEVILLE. ARKANSAS TO: Fayetteville City Board of Directors andel Citizens of Fayetteville / FROM: Scott C. Linebaugh, City Manager ,�[L ` A� Ben R. Mayes, Administrative Se ices Dir ctor v\ Kevin D. Crosson, Public Works Director Alett Little, Planning Management rectoregt/ Mickey Jackson, Fire Chief f Richard Watson, Police Chief DATE: September 14, 1992 SUBJECT: 1993-1997 Capital Improvements Program Overview/History 1t is our privilege to transmit the 1993-1997 Capital Improvements Program (C.I.P.) for the City of Fayetteville. The 1993-1997 C.1.P represents the fourth annual update of the five-year plan which was originally compiled in late 1988. The C.I.P. is a planning guide for future improvements to the City's infrastructure and other capital items which are in excess of $5,000. An annual update of the C.1.P. is necessary because of changes in capital project needs and available financial resources. The C.I.P. is a planning document and does not fund projects, rather it provides an orderly schedule for implementing projects. All funding for projects listed in the C.I.P. must be approved on an annual basis through the City's budget process by the City Board of Directors/Council. This is the method utilized to appropriate funding for the capital projects. The City faces many challenges in providing for the infrastructure needs of its citizens. The majority of the projects planned for 1992 have been delayed as a result of the sales tax Iawsuit.The City has successfully defended the sales tax supporting the 1990 Bond Issue and is currently preparing the necessary legal documents to uphold the Chancery Court decision that is on appeal to the Arkansas Supreme Court. The Supreme Court is scheduled to hear the appeal this fall. City staff is confident that the Supreme Court will ratify the lower court's ruling and therefore supports the one cent City sales tax and bond issue. The 1993-1997 C.I.F. incorporates the 1992 projects the City was unable to undertake due to the lawsuit. Each project has been thoroughly evaluated and scheduled according to the need to accomplish the improvement. In some cases projects have been reprioritized and scheduled for later years. Additionally, each project included in the 1993-1997 C. I. P. reflects current cost estimates to complete the work. Sweeping federal legislation concerning handicapped accessibility standards went into effect January 26, 1992. The Americans with Disabilities Act (ADA) requires that all City facilities, services. programs, and communications be "accessible". The ADA has several timeline milestones that must be met: July 26, 1992 transition plan must be complete; January 26, 1993 self evaluation plan must be complete; January 26, 1995 all structural changes identified in the transition plan should he completed. The City's transition plan is currently undergoing review by representatives of the disabled community. As a result of ADA, several new projects were added to 1993 and several projects were rescheduled to nTeet the timeline requirements of the legislation to bring the City into compliance with this new federal law 113 WEST MOUNTAIN 72701 501 521.7700 1 Funding In 1989, a review of the City's capital projects showed evidence that funding, from sources other than current operating revenues, would be required to cover the capital costs identified through the CIP process. Funding is available from five primary sources: 1) capital improvements bond issue, 2) pay-as- you-go funding, 3) water & sewer revenue bond issue, 4) operating funds, and 5) federal and state grants. The citizens of Fayetteville approved a $33,019,000 capital improvements bond issue in 1990 supported by the City's one cent local sales and use tax. The pay-as-you-go funding, which currently exceeds $2 million annually, is the excess sales tax collections available after paying the annual debt service on the capital improvements bond issue. A Water and Sewer Bond issue is scheduled to be issued in the fall of 1992. These bonds will be supported by the existing water and sewer rate structure. The major operating funds to be utilized in funding C.I.P. projects include: General, Water & Sewer, Street, Airport, and Shop. Projects An overview of the C.I.P. shows a total of approximately $69.2 million in projects scheduled during the 1993-1997 period. A summary of the projects is listed below: • $ 14.8 million for various street improvements • $ 10.8 million for water system improvements • $ 10.4 million for parallel 36" water line • $ 7.7 million for sewer system improvements • $ 6.9 million for school system improvements • $ 4.3 million for motor pool replacements and additions • $ 2.2 million for fire department improvements • $ 1.9 - million for park improvements • $ 1.6 million for wastewater treatment plant improvements • $ 1.6 million for airport improvements • $ 1.0 million for solid waste/recycling projects • $ 1.0 million for police/administrative building space renovation • $ 1.0 million for bikeways and sidewalk construction • $ .8 million for Dickson St. reconstruction • $ .6 million for police department improvements • $ .5 million for traffic controls and signals • $ .5 million for geographic information system improvements • $ .4' million for library book purchases & expansion • $ .3 million for water meter replacements and improvements • $' .9 million for other various projects • • During the 1993-1997 C.I.P. process, approximately $84.5 million of capital projects were identified. The resources available to fund these projects totalled $69.3 million. It should be noted that some resources have restricted or limited usage; thus, they cannot necessarily be used for any project. Due to the excess of project requests over resources available, prioritization of capital projects has been mandatory. During the prioritization process, approximately $15.2 million of projects were placed on a potential projects list meaning they could be done if funding should become available. In the 1992-1996 C.I.P. approximately $19.5 million of potential projects existed. As a result of issuing Water and Sewer bonds for 1992 and incorporating the revenue for pay-as-you-go funding for 1997, this list has been reduced to $15.2 million. After reviewing some of the major projects and improvements that the City will he faced with in the near future, it is possible that additional revenue sources will he needed to address the resource shortfall. As always City staff will review the various alternative funding sources and present options to the Board of Directors/Council and the public as necessary. Iliehlights The 1993-1997 C.I.P. continues funding for the Fayetteville School District capital improvements. This is in-line with the commitment expressed by the citizens of Fayetteville in the November 1988 election. As mentioned previously, the City is currently involved in litigation over the school funding procedure: City staff is confident that this funding mechanism will he ratified by the courts and therefore supports this obligation. In addition, City staff conducted a series of neighborhood meetings during 1991 which were an integral part of the Fayetteville Vision project and resulted in the 1991 Vision Report distributed to the City Board of Directors and the City Planning Commission in November 1991. The Planning Commission is scheduled to provide their comments and recommendations to the City Board of Directors ih the fall of 1992. As a result of the Fayetteville Vision project, additional projects were incorporated into the 1993- 1997 C.1.P. document. The most noted additions include: approximately S974.000 for sidewalks and bikeways, $288,000 for a computerized traffic control system, $90,000 for trails in city parks. and, approximately $277,000 to improve handicap accessibility to City facilities. Numerous projects mentioned in the Fayetteville Vision were already a.part of the C.I.P. and continue to be included. These pr41ects include: purchase and renovation of additional library space, purchase of library books, improvements at various parks, a City- wide storm water study, improvements to youth facilities, and funds to alleviate odor problems at the waste water treatment plant. In conclusion, this document has been prepared to explain the goals of the City's 1993-1997 Capital Improvements Program. The next section of :his document (Program Overview) will be very helpful in further understanding the C.I.P and hcw it works. It includes information on the various funding sources and the scope of projects in the document. The Capital Improvements Program is prepared annually under the direction of the Fayetteville Board of Directors/Council and is subject to public input. Any questions or comments regarding the document or process are welcomed. SCLisld 3 C.I.P. Project Map In an attempt to provide a visual display of both the diversity of the proposed improvements, as well as the magnitude of this undertaking, a map of Fayetteville has been prepared with indicators for funded project locations Equipment purchases and City wide infrastructure improvements are not depicted on this map. 4 mlo MI I FGEND GENERAL • STREET • WATER • SEWER • PARKS • T AIRPOP.T • F RE LAKE FA'rCTTEV1LLC -ELI 1 ROMI NO CPR IS ,e IN • NEM, El 4 AMR 11 RD AN A • I AYEITEVILLE DRAKE E E. R 1 12 Y J FAYETTEVILLE Program Overview 1 city of Fayette, Arkansas 5—Year cap l Zmpravements Program 1993 — 1997 Capital Improvements Program Overview In 1988, the first five - year Capital improvements Program (C.I.P.) for the City of Fayetteville was produced. Since that time the C.I.P. has been updated on an annual basis. The City of Fayettevi le's C.I P. should be considered as a financial planning tool that lists the City's capital improvement projects, places the projects in pnonty order, and schedules the projects for funding and implementation. As presented, this is a five-year forecast enabling the City to look ahead to its capital needs It should also be further considered as a major policy tool for the City Board of Directors/Council. Capital Improvement Program Advantages As with most management tools, the Capital Improvements Program has many benefits and advantages. It: A. Promotes advance planning and programming by Department Directors and Division Heads. B. Provides for orderly replacement of facilites and equipment. C. Forecasts needs for new capital investments ahead of time. D. Helps the Board of Directors/Council and administrative staff to gain an overall view of growth and development within the City and coordinate capital improvements within its growth. E Helps plan for balanced development and capital expenditures without concentrating too heavily on any ane area or Department. F. Becomes a fiscal planning tool to forecast capital demands on local revenue, to foresee future borrowing needs, and State or Federal aid that will be needed. G. Ensures projects and spending will be earned out in a priority need in relation to the City's fiscal ability; that is, the most needed projects first. H. Ensures capital projects will be implemented in accordance with all of the objectives set by the City Board of Directors/Council and as expressed by the citizenry. I. Allows adequate time for projects to be planned and designed carefully including the opportunity for public input in the process. J. Permits the City officials to proceed with land acquisition requirements in advance of need. 6 Capital Proiect Definition , Capital expenditures, per City policy, are expenditures of five hundred dollars or more that have a useful life in excess of one year. The annual Capital Improvements Program (C.I.P.) contains, at a minimum, capital expenditures in excess of five thousand dollars. However, capital expenditures less than five thousand dollars may be included in the C.I.P. The project can be a self- contained or stand alone project (i.e. fire truck purchase, purchase of a building, etc), or an easily defined phase of a multi -faceted projected (i.e. purchase of land or easements for future construction, purchase and renovation of a building, engineenng and construction of a new street, etc) or a feasibility or engineering study that could lead to future infrastructure projects (i.e. a transportation study, a bikeways plan, a sidewalk plan, etc). Priority Selection Since Arkansas law requires segregation of funds by source and the City of Fayetteville currently has over 20 funds that can be or must be used for capital items, it requires the City to prioritize projects within funds. This C.I.P. will not attempt to rate projects of one fund against another, but rather within funds with regard to relative merit. A priority ranlang is assigned to each request after considering the urgency, necessity, and desirability to the City's operations. In some cases a project may be considered to be desirable but funds are not available. These projects will be prioritized and considered a "Potential Project". This in effect lists the project as necessary for future development provided funding becomes available. Potential and Long -Range Projects The C.I.P. document process involves a review of all projects and resources during each update. City staff attempts to identify as many projects for funding as resources will allow. Unfortunately, staff has identified significantly more projects than resources will fund. This has resulted in an extensive "Potential Projects" list totalling $15.2 million All projects on this are considered to be viable projects, but for which no current funding exists. In an effort to provide additional long-range planning, staff has attempted to identify major projects which are needed beyond the current five-year penod. These projects will be reviewed each year as staff compiles the annual update to the C.I.P. In addition, State and Federal funding will be sought to assist in reducing the City's cost for said projects. Organization of the Capital Improvement Program Document The document is organized in four (4) sections: 1. Introduction This section includes several summary schedules and a map detailing locations of capital improvements reflected in this document. The Summary of Project Requests and Resources Schedule reflects totals by fund and lists the resources available for the projects. It also notes the total amount of potential projects. Four charts with 7 accompanying tables detail: 1) Summary of Project Requests and Resources; 2) Summary of Projects By Fund - All Sources; 3) Sales Tax Bond Issue Projects; 3) Sales Tax Pay - As -You -Go Projects. The Combined Summarization lists all requested projects and details by project whether it is funded through bond issue, pay as you go sales tax, operating funds, or is a potential project. The Comprehensive Detail shows all projects by fund and funding source, and the amount of funds anticipated for each year. 2. Funding Details 1993-1997 This section is divided by year, and includes project detail forms for each project. Each section is preceded by a project ranking list, which specifies the priority funding of the project. These forms detail the type of project, location (if applicable), project cost, annual operating cost, as well as a description and justification of the project. The program detail form is placed in the initial year a project begins. The prionty list for each year then denotes with an (*) when the project is a continuing project from the prior year. 3. Potential and Long -Range Projects The C.I.P. document process involves a review of all projects and resources dunng each update. City staff attempts to identify as many projects for funding as resources will allow. Unfortunately, staff has identified significantly more projects than resources will fund. This has resulted in an extensive "Potential Projects" list totalling $15.2 million All projects on this are considered to be viable projects but for which no current funding exists. In an effort to provide additional long-range planning, staff has attempted to identify major projects which are needed beyond the current five-year period. These projects will be reviewed each year as staff compiles the annual update to the C.I.P. In addition, State and Federal funding will be sought to assist in reducing the City's cost for said projects. 4. Glossary This section includes a glossary of terms that will hopefully enable a user to understand what a Capital Improvement project is and also provide a detail of financial terms. Project Types Capital projects between $500-5,000 are not typically included in the C.I.P., rather these items are included in the operations budget of individual programs as approved during the budget process. Items under $500 are not considered to be capital, therefore, they are purchased through the Minor Equipment Account in the Matenals and Supplies category of operations budgets. Generally, items valued at $5,000 and above are placed in the C.I.P. It should be noted that the C.I.P. does not finance the projects contained in it. Rather, the C.I.P is a planning document which places projects in the Annual Budget & Work Program whereby funds are 8 appropnated for them by the Board of Directors/Council. Prior to actual initiation of project work, required contracts are presented to the Board of Directors/Council for final approval of expending funds. The Capital Improvements Program includes the General, Water and Sewer, Street, Shop, Airport, and Solid Waste fund projects. General Projects The General fund is projected to be capable of supporting $ 1,380,000 per year for capital construction projects of the Fayetteville School District and selected capital projects which have a dedicated funding source. All other capital items required to support services provided by divisions within the General fund must be supported by the City's Sales Tax. Water and Sewer Projects The Water and Sewer projects will be funded through the Sales Tax Bond issue, Sales Tax Pay -As -You -Go, Water and Sewer operations, and a Water and Sewer Revenue bond issue which is scheduled for 1992. The Water & Sewer operations are funded by user fees. Street Projects All street projects will beLfunded either by the sales tax bond issue or pay-as-you-go sales tax funds. The Street Fund operating budget will only support basic maintenance and operations. Shop Projects The shop is an internal service fund. Revenue is generated for the shop fund through vehicle usage rates charged for the usage of each vehicle. These usage rates include replacement cost, maintenance cost, and overhead cost. The estimated revenue to be collected for replacement cost each year avenges $ 950,000. Airport Projects All airport projects will be funded through Airport Operating Funds. The Airport operations are funded .by.rents and leases, user fees, and federal and state grants. Solid Waste Projects The balance of the cost of the solid waste transfer/processing center is included in the Sales Tax Bond issue funding in 1993-1994. Funding Sources The C.I.P. has several funding sources; the Sales Tax Bond Issue, Pay -As -You -Go (sales tax collections in excess of the debt service requirements of the Sales tax Bond Issue), Water and Sewer Revenue Bond Issue, Federal and State Grant programs, and operational funds. Sales Tax Bond Issue • On November 8, 1988 the 'Citizens. of Fayetteville approved the rededication of the 1% local sales and use tax for the purpose of providing for funding of capital improvements. On May 29, 1990, the citizens approved the issuance of $33,019,000 in capital improvements bonds, which would be supported by the sales and use tax. The City's Bond Trustee received the 9 proceeds from this sale on October 18, 1990 and the process to complete the projects as descnbed m the election began; however, a class action lawsuit challenging the sales tax placed the projects on hold pending the outcome of the litigation. The City prevailed m Chancery Court in late spring and the plaintiffs filed an appeal with the Arkansas Supreme Court. Staff is confident that the Supreme Court will ratify the Chancery Court decision. Pay -As -You -Go The City utilises sales tax revenue in excess of the debt service requirement for the 1990 Sales Tax Bond Issue to fund additional capital improvements. Currently, several of these projects have also been placed on hold pending the outcome of the Sales Tax Lawsuit. Water and Sewer Revenue Bonds The City periodically issues Water and Sewer Revenue Bonds supported by water and sewer rates to provide the capital to fund improvements to the City's water and sewer system. Federal and State Grant Programs The City utilizes federal and state grant program to fund capital improvements where possible. Recent examples of federal and state grant participation include receiving an Arkansas Department of Pollution and Ecology Grant to assist in the purchase of a tub grinder for Recycling and Composting and receiving FAA grants for Airport Improvements. Operational Funds Examples of capital improvement funding from operational funds include Shop Fund equipment purchases, Airport improvements not eligible for Federal and State funding and Off Street Parking Fund funding improvements to the parking deck. Operation and Maintenance Costs Operation and maintenance costs associated with each capital project are budgeted in the appropriate operating fund, and are noted on the capital project detail sheets which appear in the Capital Improvement Program document by year. Summary The Capital Improvements Program (C.I.P.) is approached as a valuable tool to be used in the accomplishment of responsible and progressive financial planning. The program is developed in accordance with the City of Fayetteville's prioritization of capital needs and budget policies. These policies and the C.I.P. document form the basis for making various annual capital budget decisions and support the City's continued commitment to sound long-range financial planning and direction. 10 Project Requests General Fund Shop Fund Airport Fund Water & Sewer Fund ST Pay—As—You—Go 8ond Issue Off—Street Parking Potential Projects Resources Available General Fund Shop Fund Airport Fund Water & Sewer Fund ST Pay—As—You—Go ST Bond Fund Off—Street Parking CITY OF FAYETTEVILLE, ARKANSAS 1993-1997 CAPITAL IMPROVEMENTS PROGRAM SUMMARY OF PROJECT REQUESTS & PROJECT RESOURCES 1993 $ 2,180,000 1,132,913 274,600 5,118,144 6,732,610 11,833,170 0 5,983,471 $ 33,254,908 1993 $ 2,180,000 971,011 441,214 6,665,942 6,915,843 25,177,385 0 -1994 $ 1,409,500 $ 965,389 308,450 2,137,640 2,982,124 7,972,421 0 632,600 $ 16,408,124 $ 1994 $ 1,409,500 $ 980,411 443,085 1,557,498 3,021,348 357,319 0 $ 42,351,395 $ 7,769,161 $ 1995 1,380,000 $ 1,0471679 322,000 642,440 3,159,876 4,236,609 30,000 1,004,600 11,823,204 $ '1995 1,380,000 $ 970, 321 444,795 1,584,355 3,141,400 230,585 30,000 7,781,456 $ 1996 1,380,000 786 379 320,000 2,477,400 2,847,006 707,500 0 1,519,600 1997 $ 1,380,000 339,307 347,000 950,000 3,149,925 700,000 0 6,106,400 10,037,885 $ 1996 1,380,000 $ 960,140 446,337 1,727,393 3,058,605 70,304 0 7,642,779 $ TOTAL $ 7,729,500 4,271,667 1,572,050 11,325,624 18,871,541 25,449,700 30,000 15,246,671 12,972,632 $ 1997 1,380,000 $ 949,868 447,700 1,814,349 3,126, 691 44,776 0 7,763,384 $ CAPITAL IMPROVEMENT PROJECTS 1993-1997 01I -Street Parking 0.04% Water & Sewer 16.35% ST Bond Issue 36.75% ST Pay -As -You -Go 27.25% 11 Airport 2 27% General 11.16% Shop 6.1 7% • 2 84,496,753 TOTAL 1 1 1 1 1 1 1 7,729,500 4,831,751 2,223,131 13,349,537 19,263,887 25 880,369 30,000 ' 73,308,175 1 1 1 1 1 1 1 1 1 CAPITAL IMPROVEMENT PROJECTS BY FUND - ALL SOURCES 1993-1997 PRCJECT AREA General Water & Sewer Shop Airport Street Solid Waste Off—Street Parking ::atei & SeNe 44 86% tof CC 54.tr 6 's CAPITAL IMPROVEMENT PROJECTS BY FUND — ALL SOURCES 5 YEAR SUMMARY 1993 $ 4 755,232 $ 16.139,490 1.132,913 274,600 4,724,202 245,000 0 $ 27.271,437 S 1994 2,831.595 $ 6,479,612 965.389 308.450 4,450,909 739.569 0 1995 2,497,351 $ 2,506,720 1,047,679 322,000 4,414,854 0 30,000 1996 2,697,026 3,285,400 786,379 320,000 1,429.480 0 0 rg 04°‘ 1997 $ 2,621,915 $ 2,657,680 339,307 347,000 900,330 0 0 15,775,524 $ 10,818.604 $ 8.518,285 $ 6,866.232 $ TOTAL 15,403,119 31, 068, 902 4,271, 667 1,572,050 15,919,775 984,569 30,000 69,250.082 CAPITAL IMPROVEMENT PROJECTS SALES TAX BOND ISSUE FUNDING 1993-1997 PROJECT AREA General Water & Sewer Solid Waste Street WATER 8 SEWER 35.18% STREET 56.19% • CAPITAL IMPROVEMENT PROJECTS SALES TAX BOND ISSUE FUNDING 5 YEAR SUMMARY 1993 $ 572,818 $ 61500,000 245,000 4,515,352 • GENERAL 4.76% SOLID WASTE 3.87% 1 1 1 1 1 1 1 1 1 1 1 1 1 1994 1995 1996 1997 TOTAL ' 614,500 $ 16,500 $ 7,500 $ 0 $ 1,211,318 2,453,413 0 0 0 8,953,413 739,569 0 0 0 984,569 41164,939 4,220,109 700,000 700,000 14,300,400 $ 11,833,170 $ 7,972,421 $ 4,236,609 $ 13 1 707,500 $ 700,000 $ 25,449,700 t 1 1 1 CAPITAL IMPROVEMENT PROJECTS SALES TAX PAY-AS-YOU-GO FUNDING 1993-1997 PROJECT AREA General Water & Sewer Street Genra. 3424% Sreec 858% Nate. 8 Sewe• ..7 •8% CAPITAL IMPROVEMENT PROJECTS SALES TAX PAY—AS—YCU—GO FUNDING 5 YEAR SUMMARY 1993 1994 1995 $ 2,002,414 $ 807,595 $ 1 100,851 $ 4,521,346 1 888,559 1 864,280 208.850 285,970 494,745 1996 1997 1.309,526 $ 4,241,915 $ 808.000 4,707,680 729,480 200,330 $ 61732,610 $ 2,982,124 $ 3.159,876 $ 2,847,006 $ 3.4.49,925 $ 14 TOTAL 6 462,301 10 789,865 1.619,375 18.871,541 City of Fayetteville, Arkansas ICombined Summarization 5—Year Capital Improvements Program 1993 — 1997