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HomeMy WebLinkAboutCIP Workshop update to CBCOffice of Management ~ BudgetlPurchasing MEMORANDUM TO: Citizens Budget Committee FROIVI: Marie Gouin, Management & Budget Director DATE: January 17, 2014 SUBJECT: Capital Improvement Plan {CIP} Workshops Two CIP Workshops have been held with the Board since the last update was made to the CSC on 10118113. The areas reviewed were: 1. Asphalt Millings Program - Includes a road list and implementation plan (10122113 workshop). 2. Stormwater MSTU and related projects (10122113 workshop). 3. Facility Maintenance/Renovation Improvements (11126113 workshop). 4. Road Improvement Projects (11126113 workshop). The following is a summary ofthe areas discussed: 1. Asphalt Millings Program (Attachment n The County received a donation of asphalt millings in excess of 35,000 cubic yards. Public Works staff proposed a plan to implement deployment and construction ofthe millings material on County unimproved roadways, within the Urban Service Boundary. A list of candidate roads was prepared for review. Previously, candidate roads would be eligible for consideration if they have improved drainage system. Most of the roads on the list do not have adequate drainage systems. Since it is no longer practical to insist that the candidate roads have improved drainage, new techniques will be used for areas with marginal to poor drainage. Approximately 17 miles of roads will receive the asphalt milling overlay during the next three years. 2. Stormwater MSTU The Stormwater MSTU is a dependent special taxing district that provides a financing mechanism for the purpose of funding stormwater maintenance operations and capital improvements within the unincorporated area The MSTU fund is supported primarily by property tax revenues that are derived fibm a current millage rate of .3497 mills. There are two major areas that the Stormwater MSTU will focus on during the next several years: I. CulvertReplacement. In FY14 the cost of culvert replacement (full, sleeved and emergency) is $2.5 million while the total 5-year cost (FY14 through FY18) is estimated at $6.8 million. II Neighborhood Infrastructure Improvements. The funding for these improvements have been combined with State grants to construct stormwater drainage infrastructure in neighborhoods that were constructed without any such infrastructure. Since 2000, the County has constructed drainage infrastructure with the use of in-house crews in the following neighborhoods: • Paradise Park-3 of 5 phases • Harmony Heights -Partial phase (lA) of 5 phases In addition to the neighborhood drainage improvements, the County made a significant investment in regional stormwater improvements related to Platts Creek. During FY14, drainage improvements will be completed in Indian River Estates and in White City (Citrus/Saeger). The Indian River Estates project is also a regional stormwater improvement. The Stormwater MSTU includes $1.6 million as a 50% match for Paradise Park Phase 4 (FY15) and Phase 5 (FY17). The commencement of Paradise Park project (Phase 4 and 5) will be dependent on the availability and approval of State grant funding. Stormwater MSTU Funding-Projected deficit by FY 2016 The beginning fund balance for FY 2014 amended budget is $6.1 million (unaudited) and this is expected to decrease to $1.5 million at the end of FY 2014. Recurring revenue is $2.3 million and approximately $1.4 million is dedicated to recurring operations in the form of salaries and benefits and operating expenses. The difference of approximately $867,000 is available for capital improvements. The MSTU is projected to have a deficit of approximately $120,000 by FY 2016. The millage for the Stormwater MSTU was reduced from .4731 to .3497 in FY 2012 (and a corresponding increase was made to the General Fund). Increasing the millage back to .4731 would generate approximately $783,000 annually in taxes for the MSTU. The following strategies were discussed with the Board to address the projected shortfalls: L Reduce the level of funding for culvert replacement and/or rely more on the sleeving method to lower costs. IL Request cost-sharing from the City of Fort Pierce for the Paradise park project as portions of that project lie within the city limits. III. Defer heavy equipment replacement or use lease/purchase financing to spread the cost over multi-year period. IV. Increase the Stormwater MSTU millage rate. 3. Facility Maintenance/Renovation Improvements (Attachment II) The Proposed 5-Year CIP for Facility Improvements provides the County with a blueprint to guide future improvements and to allocate funding in the annual budget. To better identify and prioritize projects for the Five Year CIP, the following criteria were considered as part of the facilities needs assessment: • Protect public health and safety • Physical plant and/or equipment has reached or exceeded its useful life • Protection from environmental impacts (salt air, wind etc.) • Improve employee work conditions and common areas frequented by citizens • Energy savings potential (lighting, A/C new codes, roof systems) • Historic preservation and enhances the use and appearance of an existing facility • Special projects that the BOCC has previously approved or expressed support It is also important to note that it is essential to keep pace with facility maintenance as the County needs to demonstrate that facilities have been maintained on a regular basis in order to be eligible for FEMA reimbursements. The current funding allocation for facility improvements can be summarized as follows: L Approximately $1 million has been appropriated on an annual basis for the maintenance and renovation of County facilities. This level of funding serves as the basis of funding in future years. The $1 million appropriation is funded from a combination of Constitutional Officer excess fees and the Court Facilities Fund. For FY13, the total amount of excess fees returned to the County was $4.1 million. The total 5-year CIP for facility maintenance projects is $5,273,000 of which $4,233,000 is funded from the General Fund (excess fees) and the balance of $1,040,000 from the Court facility Fund. IL In addition to the $1 million funding allocation, two special projects have been funded in FY14: • Jail Improvements - $1.25 million • Supervisor of Election Building -Total Cost TBD ($1.3 million currently set aside from prior year appropriation). 4. Road Improvement Projects Bond proceeds from the transportation bond issue and road impact fee revenue are the major sources of funding for all capacity related road and intersection improvements. On October 1, 2013 the beginning fund balance in the Bond Fund was approximately $13.4 million (unaudited) and the balance in the Road Impact Fee Fund was $19.8 million (unaudited). This is the predominant source of funding for the Midway road project and for the design future intersection and other road improvements. The following summary highlights the financial status of the two funds for the scheduled use for construction and design of road improvements: L The total amount of revenue available for the project design and construction over the 3 year period from FY 14 through FY 16 is estimated at $35.1 million. Of this amount, $33.16 million is in the form of fund balance at October 1, 2013. IL The only significant recurring revenue that will continue will be Road Impact Fees that are estimated at $650,000 per year. Should impact fee revenue be significantly less than this amount, projects scheduled for design would be deferred to a future year. III. By the end of FY14, all the revenue for the Road Bond fund will be used to fund projects. IV. By the end of FY16, all the fund balance revenue for the Road Impact Fee including fund will also be depleted. V. More than 64% of the available revenue or, $22.5 million, will be dedicated to the Midway Road widening (25~' Street to Selvitz Road). VL Of the remaining revenue of $12.6 million: • $9.4 million is dedicated engineering/design of projects that once completed will be eligible for federal and/or state funding for construction in future years. • Until road impact fees are replenished and grow to a significant level in FY 17 and future years, there will not be sufficient revenue to support construction of projects scheduled for design in FY14. These projects include: i. Kings Highway & Indrio Road Intersection ii. Kings Highway & Angle Road Intersection iii. Midway Road Widening (Selvitz to Glades Road) iv. South Jenkins road (Glades Road to Edwards Road) • $3.2 million is allocated in FY14 to pay debt service on the transportation bond. The debt service payment will be shifted back to the General Fund in FY15 as there will not be sufficient impact fee revenue to continue making debt service payments from the Road Impact Fee Fund.