AGENDA #6e
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Consideration of 2004-2019 Capital Improvements Program
DATE: June 14, 2004
Attached is a resolution that would adopt the 2004-2019 Capital Improvements Program as a component of the 2004-05 Town Budget, including a capital allocation of $927,000 for fiscal year 2004-05. This allocation is included in the Budget Ordinance recommended in Agenda Item #6b.
Background
The 2004-2019 Capital Improvements Program is a plan for addressing the Town’s capital facilities needs over the next 15 years based on priorities (please see Attachment 1) 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 1996 and 2003 bond issues, 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 Attributable funds, and the Transportation Capital Reserve Fund.
PROCESS
The development of the 2004-2019 Capital Improvements Program proposal began in November 2003, with submissions of funding requests from various Town departments. Key dates in the process include:
· On January 28, 2004, the Council held its first public hearing on the budget and capital program needs, receiving comments from the public and representatives from Town advisory boards.
· On March 24, 2004, the Council received the Preliminary Report on the 2004-2019 Capital Improvements Program. The Report was subsequently forwarded to Town advisory boards for comment.
· On April 26, 2004, the Council received the Capital Improvements Program as part of the Manager’s Recommended Budget.
· On May 12, 2004, the Council held a public hearing to receive citizen comments on the Recommended Capital Improvements Program and received written advisory board comments. The $1,121,000 Recommended Capital Budget for 2004-05 included a base budget of $561,000 for funding current installment debt payments and contractual obligations, and $560,000 for additional capital needs.
· On May 19, 2004, the Council held a work session on potential revisions to the Manager’s Recommended Budget and Recommended Capital Improvements Program. The Council agreed to reduce the Recommended Capital Improvements Program budget for 2004-05 from $1,121,000 to $927,000.
PROGRAM COMPONENTS
The 2004-2019 Capital Improvements Program includes:
· A capital improvements fund budget for fiscal year 2004-2005 as outlined in the attached resolution, and projected expenditures for future years through 2018-19 (please see Table 1, attached). Descriptions of the projects proposed for funding in 2004-05 are included in Attachment 2.
· Schedules for projects to be funded with sources other than the capital fund, including State Transportation-Direct Allocation funding, and Federal Community Development Block Grant funding (see Manager’s Recommended Budget 2004-2005, Table 2, pp. 260-261).
· A bond sale schedule for the 2003 bonds and a status report on projects funded with proceeds from the 1996 bond issues (see Manager’s Recommended Budget 2004-2005, April 26, 2004, pp. 267-268).
PROGRAM SUMMARY
· For fiscal year 2004-2005, the capital improvements fund budget totals $927,000, including one year of debt service payments for three installment-financing projects.
· Funding proposed for capital improvements fund projects over the 15-year period amounts to more than $35 million.
· Reappropriation of unspent funds to 2004-05 anticipated total $365,000.
· The first sale of 2003 Bonds, according to the Council’s adopted bond sale schedule, is to take place in 2004 and totals $4 million.
· The development of the public works facility at the Town Operations Center will require $24.5 million, to be financed Certificates of Participation. The Town will need to borrow the balance of the funds for this portion of the project in early 2005.
· The development of a Transit facility, also required due to the lease expiration at the Airport Road facility, is to be funded using mostly State and federal sources that will require some Town matching funds.
· An emergency generator for the Police Department is to be purchased using five-year installment debt.
· Revenues from cell tower lease payments made to the Town would be transferred from the Capital Improvements Program to debt service.
RECOMMENDATION
We recommend that the Council approve the recommended 15-year Capital Improvements Program, as shown in the Manager’s Recommended 2004-05 Budget submitted to the Council on April 26, 2004, and as revised in the attached Table 1, and adopt the attached resolution approving the 2004-2005 capital improvements fund amounts for new appropriations.
ATTACHMENTS
TABLE
A Resolution Approving The 2004-2019 Capital Improvements Program (2004-06-14/R-15)
BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby approves the 2004-2019 Capital Improvements Program as described in the Manager’s Recommended Budget submitted to the Council on April 26, 2004 and revised for 2004-05 as described in the Manager’s June 14, 2004 memorandum to the Council, with the following projects to be funded by the $927,000 allocated for the capital improvements fund in the Operating Budget ordinance for 2004-2005:
Project Appropriation:
2004-05
Town Operations Center: Land Acquisition Installment Debt Payments 122,000
Extraordinary Maintenance, Emergency Repairs 50,000
Roof Repair - Town Hall, Fire Stations #2 and #3: Installment Debt Payments 38,000
Police Generator: Installment Debt Payment 19,000
Curb Repairs: ADA Compliance 25,000
Small Park Improvements 50,000
Capital Repairs to Bike Paths, Paved Trails and Public Parking Areas 50,000
Weaver Dairy and Sedgefield Road Improvements 15,000
Picnic Shelter at Meadowmont Park 25,000
Hargraves Center / AD Clark Capital Repairs: Installment Debt Payments 163,000
Meadowmont School Gym Payments to Schools 238,000
Capital Repairs to Bike Paths, Paved Trails and Public Parking Areas 56,000
Homestead Park 21,000
Transfer to Debt Service 55,000
TOTAL $927,000
This the 14th day of June, 2004.