AGENDA #3a
BUDGET WORKING PAPER
TO: W. Calvin Horton, Town Manager
FROM: Sonna Loewenthal, Assistant Town Manager
SUBJECT: Revisions to Manager’s Recommended Capital Improvements Program
DATE: May 25, 2001
The attached spreadsheets include cuts to the 2001-02 appropriations in the Manager’s Recommended 2001-16 Capital Improvements Program. The revisions would reduce the appropriations for the 2001-02 fiscal year by $223,000, changing the bottom line from $1.0475 million to $824,500 (please see Table 1).
The changes provide the Town Council with the option of either adopting a reduced Capital Improvements Budget for 2001-02, or reallocating some or all of the $273,000 to other projects.
Table 2 shows how the CIP Fund line items in Table 1 compare with the appropriations proposed in the Manager’s Recommended 2001-16 Capital Improvements Program. Note that the far right column shows the total net revisions to each of the line items. For the entire 15-year program, the net difference amounts to a decrease of $276,000.
2001-02 Fiscal Year Revisions
The proposed revisions to the 2001-02 fiscal year appropriations include the following:
§ Reduce the Municipal Operations Space Needs Study from $80,000 to $10,000 (see Reference Number 3 in Table 1).
§ Reduce the Town Hall: Capital Maintenance item, which would replace the carpeting at Town Hall, from $85,000 to $25,000 (see Ref. No. 5).
§ Eliminate the $85,000 for the Public Works: Capital Renovations projects (Ref. No. 14), which would be funded with Public Works Bond money rather than the CIP Fund. The projects are the replacement of the Public Works lube pit with hydraulic truck lifts and construction of a vehicle washing facility. The $55,000 budgeted in the CIP Fund for 2002-03 also would be funded with bond money.
§ The line items for the installment-financed renovation projects at the IFC Shelter (Phase I), Post Office/Courthouse (Phase I), AD Clark Bathhouse, and Hargraves Center are amended for 2001-02 through 2010-11. The changes provide additional contingency money for the AD Clark and Hargraves projects, while reducing the IFC Shelter and Post Office/Courthouse Phase I contingency funding.
The proposed reductions for the IFC Shelter and Post Office/Courthouse projects would bring these appropriations in line with the cost estimates in the August 2000 Facility Condition Assessment. The work identified in the Facility Condition Assessment at these facilities would be fully funded with the total amounts proposed for the two projects including design and contingency (Phases I and II).
§ No net reduction is proposed for Sidewalk and Bicycle Facilities (Reference Number 33); in fact, the appropriation of $100,000 originally proposed for 2001-02 would be increased with $50,000 from the reappropriation of unspent balance.
§ A cut of $5,000 in AD Clark Pool: Capital Maintenance (Reference Number 39). This work can be completed with the funding provided in the installment-financed AD Clark Bathhouse: Capital Renovations project.
The proposed seven-year installment financing of the generator for Town Hall makes available $96,000 of unspent balance in 2000/01 to be reallocated to other projects. The Manager’s Recommended Capital Improvements Program included the reallocation of unspent balance of $120,000 for this item. Of the $120,000, $24,000 would be spent to pay for the first year of the installment financing to be obtained for this project.
In addition to the $50,000 provided for the Sidewalk and Bicycle Facilities line item, the following revisions are proposed for the reappropriation of unspent balance to 2001-02:
§ Increase the funding for Extraordinary Maintenance: Emergency Repairs (Reference Number 4) by $13,000.
§ Increase the funding for Small Park Improvements by $30,000.
§ The bottom line for the Reappropriation to 2001-02 has been reduced by $3,000 to $390,000 to make the total in line with the latest estimate of unspent balance expected to be available for 2001-02.
The addition of the Town Hall: Generator installment financing project would require cutting funding for various projects over the seven-year payment schedule to allow for the debt service. In addition, the changes to the IFC Shelter, Post Office/Courthouse, AD Clark Bathhouse and Hargraves Center installment projects (noted earlier in this memorandum) made available an additional $2,000 to $3,000 throughout the 10-year financing period. The changes to the line items for 2002-03 through 2011-12 are as follows:
§ The appropriations for Extraordinary Maintenance: Emergency Repairs (Reference Number 4) over the 15-year period of the Capital Improvements Program was reduced a total of $26,000.
§ Cuts to Sidewalk and Bicycle Facilities (Reference Number 33) amount to $12,000 total. Proposed reductions are $2,000 in 2004-05, and $5,000 each in 2006-07 and 2007-08.
§ Funding for Small Park Improvements (Reference Number 48) would be increased by $4,000 over the 15-year period, in addition to the increase of $30,000 from reappropriations.
§ Funding for Museum: Capital Maintenance (Reference Number 23) would remain the same. However, these projects, which were identified in the Facility Condition Assessment, would be delayed:
o “Replace Base Cabinets and Counter Tops” ($15,000) project moves from 2005-06 to 2008-09
o “Interior Paint” ($15,000) moves from 2008-09 to 2010-11
o “Replace Rubber Roof Membrane” ($54,000) would be completed in 2011-12 rather than 2010-11.
The reductions totaling $223,000 would allow the Council to reduce expenditures, or support certain programs at a higher level, or a combination of both.