AGENDA #6b

 

MEMORANDUM

 

TO:                   Mayor and Town Council

 

FROM:             W. Calvin Horton, Town Manager

 

SUBJECT:        Manager’s Recommended 2003-2018 Capital Improvements Program

                                                                                                    

DATE:              June 9, 2003

 

 

Attached is a resolution that would adopt the 2003-2018 Capital Improvements Program as a component of the 2003-04 Town Budget, including a capital allocation of $1,225,000 for fiscal year 2003-04.  This allocation is included in the Budget Ordinance recommended in Agenda Item #6a.

 

Background

 

The 2003-2018 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 Facility Condition Assessment served as the basis for scheduling 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 the expected availability of capital improvements funding, money from the 1996 bond issues, and other sources, such as the Federal Community Development Block Grant program.  The program does not include the State budget for road projects funded by the North Carolina Department of Transportation.  Also excluded are budgets for transit service, the school system, the Orange Water and Sewer Authority, and the County’s solid waste management program.

PROCESS

                                                                                             

The development of the 2003-2018 Capital Improvements Program proposal began in the fall of 2002 with submissions of funding requests from various Town departments.  Key dates in the process include:

 

·        On January 29, 2003, 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 26, 2003, the Council received the Preliminary Report on the 2003-2018 Capital Improvements Program. The Report was subsequently forwarded to Town advisory boards for comment.

·        On April 28, 2003, the Council received the Capital Improvements Program as part of the Manager’s Recommended Capital Improvements Program.

·        On May 14, 2003, the Council held a public hearing to receive citizen comments on the Recommended Capital Improvements Program and received written advisory board comments.

 

PROGRAM COMPONENTS

 

The 2003-2018 Capital Improvements Program features:

 

·        A capital improvement fund budget for fiscal year 2003-2004 as outlined in the attached resolution, and projected expenditures through 2017-18.

·        Schedules for projects to be funded with sources other than the capital fund, including the 1996 bond issues, State Transportation-Direct Allocation funding, and Federal Community Development Block Grant funding.

 

PROGRAM SUMMARY

 

·        For fiscal year 2003-2004, a capital improvement fund budget of $1,225,000 for 17 projects, including one year of debt service payments for six installment-financing projects.

·        Funding proposed for capital improvements fund projects over the 15-year period amounts to more than $21 million.

·        Expenditures of 1996 bonds total approximately $11 million, out of the total of $13.5 million authorized by voters. Most of the unspent bond funds, including funding from County bonds, are earmarked for the Aquatics Center, Southern Community Park and open space acquisition.

·        Future debt-financed projects include the development of the Town Operations Center (Public Works Facility), and two Library expansion phases. Debt service payments on these projects would begin in 2005-06 with the Town Operations Center project ($1.52 million in the first year), followed the next year with the first Library expansion phase ($800,000 in the first year).

·        Projected funding for projects funded by other sources totals more than $40 million for the 15-year period. These sources include Community Development Block Grant funding, Capital Fund Program (Housing), the Library Gift Fund, the Parking Fund, Surface Transportation Program-Direct Attributable funds, and the Transportation Capital Reserve Fund.

·        The development of a Transit facility, also required due to the lease expiration at the Airport Road facility, is to be funded using mostly Federal sources that will require some Town matching funds.

·        Ten-year installment debt projects for renovations/repairs at the following facilities are included in the 2003-18 Capital Improvements Program: Town Hall and Fire Stations Number 2 and 3 (roof repairs); Inter-Faith Council Shelter, Post Office/Courthouse, the Chapel Hill Museum (roof), Bolinwood Bridge, Hargraves Community Center/A.D. Clark Pool, the Community Center off Estes Drive, the Library and tennis courts.

·        Emergency generators for Town Hall and the Police Department are to be purchased using five-year installment debt.

 

RECOMMENDATION

 

Manager’s Recommendation:  That the Council approve the recommended 15-year Capital Improvements Program, as shown in the Manager’s Recommended 2003-04 Budget submitted to the Council on April 28, 2003, and adopt the attached resolution approving the 2003-2004 capital improvements fund amounts for new appropriations.

 

ATTACHMENT

 

1.                  Capital Improvements Fund Projects in Recommended 2003-04 Budget (p. 5).

A Resolution Approving The 2003-2018 Capital Improvements Program (2003-06-09/R-10)

 

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby approves the 2003-2018 Capital Improvements Program as described in the Manager’s Recommended Budget submitted to the Council on April 28, 2003, with the following projects to be funded by the $1,225,000 allocated for the capital improvements fund in the Operating Budget ordinance for 2003-2004:

 

Project                                                                                                           Appropriation:

                                                                                                                                  2003-04

Town Operations Center:  Land Acquisition Installment Debt Payments                       126,000

Extraordinary Maintenance, Emergency Repairs                                                            50,000

Town Hall Generator Installment Debt Payments                                                           30,000

Roof Repair - Town Hall, Fire Stations #2 and #3: Installment Debt Payments               45,000

Police Generator Installment Debt Payments                                                                  23,000

IFC Shelter Capital Repairs: Installment Debt Payments                                                 65,000

Museum Roof Capital Repairs: Installment Debt Payments                                               9,000

Post Office/Courthouse Capital Repairs: Installment Debt Payments                             225,000

Curb Repairs: ADA Compliance                                                                                   25,000

Sidewalk and Bicycle Facilities                                                                                      50,000

Small Park Improvements                                                                                             20,000

Traffic Signal System Feasibility Study - Local Match                                                    20,000

Infrared Rescue Cameras: Installment Debt Payments                                                    28,000

Greenways                                                                                                                   55,000

Hargraves Center / AD Clark Capital Repairs: Installment Debt Payments                   175,000

Meadowmont School Gym Payments to Schools                                                         238,000

Tennis and Basketball Courts: Capital Repairs: Installment Debt Payments                     41,000

TOTAL                                                                                                                $1,225,000

 

 This the 9^th day of June, 2003.