AGENDA #7a(5)

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:      Consideration of 2006-2021 Capital Improvements Program

DATE:            June 26, 2006

Attached is a resolution that would adopt the 2006-2021 Capital Improvements Program as a component of the 2006-07 Town Budget, including a capital allocation of $1,349,050 for fiscal year 2006-07, as previously discussed by the Council.  This allocation is included in the Budget Ordinance recommended in Agenda Item #7a(1).

Background

The 2006-2021 Capital Improvements Program is a plan for addressing the Town’s capital facilities needs over the next 15 years based on priorities and anticipated availability of funding. The program also lists needs for which funding has not been identified.

The development of the Capital Improvements Program was based on information from a variety of sources, including the August 2000 Facilities Condition Assessment, special studies, and the Comprehensive Plan, as well as feedback from the Council, citizens, department heads and staff.

Over the 15-year scope, the Program emphasizes maintenance projects at Town facilities, with the goal of addressing problems as they arise in order to avoid more costly repairs in the future. The 2000 Facility Condition Assessment served as the basis for scheduling many of the maintenance-related projects, including anticipated needs, throughout the 15-year period covered by the Capital Improvements Program.

The Capital Improvements Program is based on expected transfers from the General Fund, proceeds from the 2004 bond issues, Stormwater Utility Funds and other funding sources, such as the Community Development Block Grant program, Capital Fund Program (Housing), the Library Gift Fund, the Parking Fund, Surface Transportation Program-Direct Allocation funds, and the Transportation Capital Reserve Fund.

PROGRAM COMPONENTS

The 2006-2021 Capital Improvements Program includes:

• A Capital Improvements budget for fiscal year 2006-07 as outlined in the attached resolution, and projected expenditures for future years through 2020-21 (please see Table 1, attached).
• Schedules for projects to be funded with sources other than the Capital Fund, including State Transportation-Direct Allocation funding, Federal Community Development Block Grant funding, the 2004 Bonds and Stormwater Management Funds (see Manager’s Recommended Budget 2006-07, May 10, 2006, Tables 2 to 4, pp. 250-255).

PROGRAM SUMMARY

• For fiscal year 2006-07, the Capital Improvements Fund budget totals $1,349,050, including annual installment debt payments for five completed capital renovation projects. The total includes $60,000 from cell tower lease revenues.
• Funding proposed for Capital Improvements Fund projects over the 15-year period amounts to approximately $40 million.
• Reappropriation of unspent funds to 2006-07 is anticipated to total approximately $90,000.
• Financing is in place for several major ongoing capital projects including the new Town Operations Center, the Aquatics Center and Southern Community Park.
• Funding is provided for capital maintenance at two fire stations, ensuring that fire department personnel continue operating in a responsive and effective manner.
• The capital budget will continue to provide funding for emergency repairs to Town facilities, repairs to Town parks, and modifications to sidewalks to achieve compliance with the Americans with Disabilities Act.
• Annual maintenance of the Sports Arts Building, previously included in the Multi-Year Capital Projects Fund is included in the Capital Improvements Fund, along with the annual rent revenue from the Building ($13,800).
• Other capital projects include replacement of the Town Hall heating and cooling system, repairs to greenway trails and parking lots, and capital maintenance projects at several Town buildings.

RECOMMENDATION

We recommend that the Council adopt the recommended 15-year Capital Improvements Program, as shown in the Manager’s Recommended 2006-07 Budget submitted to the Council on May 10, 2006, and as revised in the attached Table 1 in accordance with the Council’s discussions, and adopt the attached resolution approving the 2006-2007 Capital Improvements Fund amounts for new appropriations.

TABLE

1. Table 1: Recommended 2006-07 Capital Improvements Fund Projects (p. 4)