AGENDA #1a
BUDGET WORKING PAPER
TO: W. Calvin Horton, Town Manager
FROM: Bruce Heflin, Assistant Town Manager
SUBJECT: Capital Improvements Program Priorities
DATE: April 27, 2005
This budget working paper describes Capital Improvements Program funding priorities for 2005-06.
BACKGROUND
The Capital Improvements Program is a 15-year plan for financing the Town’s major capital and infrastructure requirements. The Plan identifies and prioritizes capital projects and potential funding sources, including the Capital Improvements Fund, Bonds, State and federal grants, and other sources.
On March 23, 2005 the Council received the Manager’s Preliminary Report on the 2005-2020 Capital Improvements Program which included a $1.745 million Capital Improvements Fund budget for 2005-06. Council members requested a follow-up report prioritizing the projects in the preliminary 2005-06 Capital Improvements Fund budget.
DISCUSSION
The Preliminary Capital Improvements Program presented on March 23rd described two Capital Improvements Fund scenarios for 2005-06: a “base budget” and a $1.745 million budget. The base budget reflected only those projects which the Town is contractually obligated to fund in the next fiscal year. The $1.745 million budget was based on the capital program budget projection in the adopted 2004-05 Budget.
We developed the preliminary $1.745 million Capital Improvements Fund budget based on our assessment of the most urgent capital needs. The capital projects we identified emphasize repairs to Town facilities, including buildings, greenways and parking lots. Other projects address safety issues, provide required local matching funds, and replace aging systems.
PRIORITIES
In the tables below we prioritize Capital Improvements Fund projects we identified for funding in the Preliminary Capital Improvements Program.
Table 1: Base Budget, $290,000
The Town is contractually obligated to fund the following in 2005-06. The $290,000 funding level would meet contractual obligations only.
|
Priority Ranking |
Project Name / Description of Need |
Preliminary CIP: 2005-06 |
Running Total |
|
1 |
Roof Replacements Town Hall, Fire Stations #2 and #3 $265,000 10-year installment financing paid for roof repairs completed at Town Hall and Fire Stations 2 and 3 in 2004. |
$37,000 |
$37,000 |
|
1 |
IFC Shelter – Exterior Capital Repairs: Installment Debt Payments $450,000 10-year installment financing funded a number of exterior repairs completed in August 2004, including roof repairs and replacement of windows at the Old Town Hall/IFC Shelter. |
$57,000 |
$94,000 |
|
1 |
Museum Roof: Capital Repairs – Installment Debt Payments $60,000 10-year installment financing funded the replacement of the roof on the Chapel Hill Museum in 2002. |
$8,000 |
$102,000 |
|
1 |
Hargraves Center/A.D. Clark Pool Capital Repairs $1,200,000 10-year installment financing funded the renovation of Hargraves Community Center and the A.D. Clark pool facility in 2003. |
$157,000 |
$259,000 |
|
1 |
Tennis & Basketball Court Capital Repair Installment Payments $240,000 10-year installment financing funded repairs made to tennis and basketball courts at Cedar Falls, Community Center, Hargraves, Umstead, Homestead, and Oakwood parks. Work was completed in 2004. |
$31,000 |
$290,000 |
Table 2: Capital Program Priorities
The table below lists projects in recommended order of priority. The priority ranking emphasizes funding capital repairs and maintenance of Town facilities, including buildings, parks and greenways.
|
Priority Ranking |
Project Name / Description of Need |
Preliminary CIP: 2005-06 |
Running Total (continued) |
|
1 |
BASE BUDGET (See Table 1) |
|
$290,000 |
|
2 |
Extraordinary Maintenance, Emergency Repairs The Town frequently must make unanticipated repairs at Town facilities such as roof repairs, HVAC system repairs, and swimming pool mechanical system repairs. Comment: Extraordinary maintenance funds are critical to Town operations. For example, these funds most recently were used to make repairs to the Town Hall HVAC system. |
$76,000 |
$366,000 |
|
3 |
Curb Cut Improvements - ADA Compliance The Town is installing access ramps on sidewalks to meet Americans with Disabilities Act standards. Improvements are needed at approximately 1,600 locations. Comment: The Town is legally required to complete these projects. |
$25,000 |
$391,000 |
|
4 |
Community Center Capital Repairs– Installment Debt Payments $160,000 previously budgeted for the project will be used for design work this fiscal year. The $224,000 amount proposed for 2005-06 represents the first annual payment on $1.44 million in installment financing which would pay for repairs and building improvements, including the addition of HVAC for the gymnasium and new office spaces. Comment: The project would address needs at a popular community facility that is in poor condition. |
$224,000 |
$615,000 |
|
5 |
Small Park Improvements Projects include improvements, repairs and replacement of equipment in Town parks. Examples: bleacher replacements, replacement of playground equipment and turf repairs at athletic fields. Comment: This funding is critical to maintaining park facilities. |
$50,000 |
$665,000 |
Table 2 (Continued): Capital Program Priorities
|
Priority Ranking |
Project Name / Description of Need |
Preliminary CIP: 2005-06 |
Running Total (continued) |
|
6 |
Greenways Funding would help repair greenways. Comment: Funding has helped restore trails with natural surfaces such as Tanyard Branch and Battle Branch. Almost all natural surface trails have erosion problems that need to be addressed. |
$35,000 |
$700,000 |
|
7 |
Police Department Generator Funding would purchase and install an emergency backup electric power generator at the Police Department on Airport Road. The project would be completed in fiscal year 2005-06. Comment: Generator provides an essential emergency service function. The Police Department’s operations are constrained during power outages because the existing generator is undersized. |
$225,000 |
$925,000 |
|
8 |
Town Hall Generator Comment: Town Hall currently has no emergency backup power. |
$70,000 |
$995,000 |
|
9 |
Traffic Signal System Upgrade (Town share) The project would upgrade the traffic signal system with new technology to improve traffic signal operations. The $90,000 in Town funds would be combined with $360,000 Surface Transportation Program/Direct Allocation funds to provide the local match. Total cost of the Transportation Improvement Program project is estimated to be $4.7 million. Comment: Funding would enable the Town to provide the local match should it be needed in FY 2005-06; Town is in discussions with the State about keeping the project funding on schedule. |
$90,000 |
$1,085,000 |
Table 2 (Continued): Capital Program Priorities
|
Priority Ranking |
Project Name / Description of Need |
Preliminary CIP: 2005-06 |
Running Total (continued) |
|
10 |
Parking Lots/Bike and Pedestrian Paths/Greenway Trails Funds would pay for repair and maintenance of existing paved pedestrian paths, trails and parking lots; needs have been identified at fire stations, Parks and Recreation facilities and other locations. Comment: Proposed funding level would address only a small portion of the backlog of existing asphalt repair needs. |
$40,000 |
$1,125,000 |
|
11 |
Replacement of Town Hall Telephone System Project would replace the Town Hall phone system, which has limited capacity and features needed to serve users. Comment: Repair parts are becoming increasingly difficult to find for the current system. Delaying the project could result in system failures with lengthy repair times. |
$100,000 |
$1,225,000 |
|
12 |
Fire Station # 2 Capital Maintenance Project includes replacement of the existing concrete driveway and asphalt parking lot, plumbing repairs, foundation repairs, and new interior paint. Comment: The fire station parking lot is of particular concern given the state of disrepair. |
$75,000 |
$1,300,000 |
|
13 |
Library Capital Maintenance Funding would pay for exterior paint, replacement of HVAC controls and replacement of a gas-fired boiler at the Library. Comment: The Building Condition Assessment report of 2000 identified these projects as existing needs. |
$50,000 |
$1,350,000 |
|
14 |
Town Hall: Replacement of HVAC Units The 16-year-old rooftop HVAC units are at the end of their life cycle; HVAC units typically are replaced every 15 years. Repairs to the units are being made more frequently. There is an opportunity to use an additional $90,000 in Energy Bank Bonds to add a computer-controlled energy management system. Comment: The new units likely would require fewer costly repairs compared to the existing system; it also would improve energy efficiency at Town Hall. |
$280,000 |
$1,630,000 |
Table 2 (Continued): Capital Program Priorities
|
Priority Ranking |
Project Name / Description of Need |
Preliminary CIP: 2005-06 |
Running Total (continued) |
|
15 |
Parks and Recreation Administration: Capital Maintenance The following would be completed at the Plant Road building: replace interior doors, the overhead bay door, and cabinets and countertops. Comment: Projects were identified in the 2000 Facility Condition Assessment |
$30,000 |
$1,660,000 |
|
16 |
Cemetery Beautification Funding would help supplement cemetery improvements approved by the Council on December 6, 2004. |
$20,000 |
$1,680,000 |
|
17 |
Building Condition Assessment Program This would update the Town’s inspection / assessment study of the Town's buildings, last conducted in 2000. Comment: The 2000 Facility Condition Assessment is outdated; updating the list of deferred maintenance items will be crucial to programming capital funds. |
$65,000 |
$1,745,000 |