PAYG and Short-term Finance

Transcription

1 PAYG and Short-term Finance FY 2019 PROPOSED BUDGET HIGHLIGHTS Fund 313 County Board Work Session April 5, 2018

2 PAYG Overview Pay-As-You-Go (PAYG) is funded from local County tax dollars Historically used for routine maintenance capital expenditures Reduces premature asset failure and extends useful life Maintains existing infrastructure versus new projects Asset condition assessment software being updated for Parks and Facilities programs Maintenance capital funded from two primary sources PAYG Voter approved GO bonds PAYG funds assets with useful life of ten years or less 1

3 PAYG Overview Upcoming Capital Improvement Plan formulation will include larger conversation about annual PAYG funding needs Discussion about long-term effects of reducing PAYG and being able catch up with deferred maintenance Choices about new projects and associated operating costs versus maintaining existing inventory with appropriate funding levels On-going PAYG funds have reduced slightly over the past several years 2

4 PAYG Overview Availability of one-time funds (non-recurring) have substantially been reduced over the last two years Carryover funds previously available during closeout and budget formulation have diminished 3

5 PAYG Overview Balances Beginning PAYG balance (7/1/17): $132M FY18 Commitments to-date (2/28/18): $58M Available Balance (2/28/18): $81M Carryover balances fluctuate year-to-year depending on project execution Capital projects are multi-year in nature Large project carryover balances include: (all balances are committed to existing projects) Central Library interior improvements balance $0.965M Anticipated completion Fall 2018 Fire Station 6 balance $0.515M Anticipated completion Winter 2018 Fire Station 8 balance $1.7M Anticipated completion Fall

6 PAYG Overview Balances Carryover balances cont d: Mosaic Park balance $4.27M Anticipated completion Spring 2020 Long Bridge PAYG & developer contribution balance $21.75M (additional GO Bonds balance of $15.6M) Anticipated completion 2020 Improvements Outside Major Corridors balance $0.465M Anticipated completion FY 2021 Rosslyn Ballston Arterial Street Improvements balance $1.01M Anticipated completion FY 2020 Streetlighting balance $1.67M Anticipated completion FY 2020 Transportation Systems and Signals balance $1.84M Anticipated completion FY

7 Summary of Proposed Budget Aging inventory continuing to grow Adding staff where appropriate to help plan and execute capital projects Proposed FY 2019 reduction of ongoing PAYG budget of $1.5M Other fund sources used to fund FY 2019 Capital Program Parks Program - $3.802M Synthetic Turf Fields Partnerships/Cost-sharing - $0.496M (Long Bridge Field #1; Marymount costshare) Crystal City TIF - $1.335M (Long Bridge Fields #1 & #2) Parks synthetic turf contingency balances - $0.810M (New field, location TBD) Parks Field Fund (team fee revenue) - $1.06M (New field, location TBD) Grass Fields Program contingency balances - $0.10M (Gunston Park grass field replacement)

8 Summary of Proposed Budget Other fund sources, cont d Transportation Program - $0.40M Paving - $0.209M (Prior-year GO Bond balances) Multi-modal Projects - $0.191M (Prior-year GO Bond balances) Facilities Program - $0.10M Trades Center Master Plan - $0.10M (Prior-year GO Bond balances) Proposed budget does not include GO bond funding that will be determined during the upcoming FY 2019 FY 2028 CIP formulation

9 Capital PAYG Overview Program Accomplishments Major Completed Capital Projects Bluemont Park Athletic Field and Trail Improvements High View Park Athletic Field, Restroom/Storage, Picnic Shelter and Plaza Barcroft Sports & Fitness Center Gymnastics Program Expansion Aurora Hills Community and Senior Center and Library Upgrades County completed four key land acquisitions 8

10 Capital PAYG Overview Program Accomplishments Major Completed Capital Projects, cont d Building 2020 Garage and Elevator Upgrades Trades Center Parking Garage Third Level HVAC Upgrades at the Water Pollution Control Plant Nearly $20 million in contracts awarded for transportation improvement projects The County completed ten neighborhood conservation projects 9

11 Proposed Capital Program: Reduction to PAYG Program Service Impacts Paving Program Stated Paving Condition Index (PCI) goal of Current PCI is 74 Budget Impact FY 2018: $6,875,285 FY 2019: $5,321,750 Change: -$1,553,535 Maintains PCI contingent upon various factors Severity of weather Contracting costs Price of oil Affords approximately 78.5 lane miles of paving Does not include 2018 GO bond funds of ~$11M anticipated 10

12 Proposed Paving Capital Cost History Program: 2017 Final Paving/Slurry Seal/Micro-surfacing Map link: 11

13 Summary of Proposed Short-term Budget finance (master lease) Average funding of $10M per year Previously financed through use of master lease program Master lease infrequently used in other jurisdictions and not many banks are currently providing the service County intends to utilize either a line of credit combined with short term bank loans / revenue bonds or a variation of previous master lease vehicles

14 Summary Short-term of Proposed Finance Budget Funding levels fluctuate depending on equipment replacement cycles Fund source typically finances: PC replacement Network Equipment Server Refreshment Video Conferencing Enterprise Wireless Fire Station Alerting System Fire Breathing Apparatus Fire Defibrillators Public Safety Mobile and Portable Radios Sheriff and Police In-Car Cameras Fire Vehicles 13

15 Proposed Capital Program: PAYG and Short-term Finance Projects ($ in 000s) PROGRAM CATEGORY Base Funds One- Time Funds FY 2019 Proposed FY 2017 C/O Funds Total FY 2019 PAYG Funds Proposed FY 2019 Short- Term Fin T ransportation Maintenance C apital $1,888 $223 $2,111 $140 $2,251 - F acilities Maintenance C apital $1,562 1,562 - Parks Maintenance Capital 1,022-1,022 $100 1,122 - S ubtotal Maintenance C apital 2, ,133 1,802 4,935 - R egional P artnerships 1,263-1,263-1,263 - Neighborhood C onservation E nterprise Information T echnology ,282 1,682 3,985 P ublic S afety Information T echnology ,123 T ransportation Multi-Modal P ark Mas ter P lans **S ynthetic T urf ,871 2,050 - F acilities D esign and C onstruction Land Acquisition C apital C ontingent S ubtotal O ther C apital 2,412-2,412 4,627 7,039 9,108 Total Projects $5,322 $223 $5,545 $6,429 $11,974 9,108 * Numbers may not add due to rounding. **S ynthetic turf carryover funds do not include C rystal C ity T IF funds or P artnership cost-sharing funds 14

16 Proposed Capital Program: Transportation Paving program completed Fall The other programs/ projects are ongoing. Transportation Maintenance Capital Paving Program Description PAYG GO Bond Balances 2018 GO Bond Referenda Paving has been increased to over 75 lane miles Hot Mix Overlay annually. This includes about three lane miles of streets without curb and gutter (five percent of funding). $476,000 $209,000 $9,900,000 Slurry Seal extends the life of pavement on Slurry Seal Residential Streets at a much lower per square yard cost. Program is based on approximately 40 lane miles being slurry sealed annually. $400,000 Microsurfacing extends the life of pavement for Microsurfacing Arterial Streets at a lower per square yard cost. Program is based on approximately 10 lane miles being microsurfaced annually. $500,000 Re-builds include partial and total excavations of blocks to re-build the base and sub-base of Re-Building of roadways where significant roadway failure has Streets occurred. Since 2008, an innovative process to stabilize soil with cement has reduced re-build costs by around 50 percent. $750,000 Subtotal Paving Program Only Funding includes PAYG ($1.38M) and *GO Bonds ($10.85M) $1,376,000 $209,000 $10,650,000 Other Transportation Maintenance Capital The inventory of streets is broken down as follows: 25 percent are arterial streets, 11 percent are collector streets and 64 percent are residential streets. The Pavement Condition Index (PCI) is updated annually and Arlington s average PCI is currently 74. The County uses a variety of maintenance strategies to maintain streets as detailed below. Includes ITS Device Replacement, Street Lighting, and Trail Lighting. $875,000 Includes bicycle and pedestrian projects, parking Multi-Modal meters, parking technology and the transportation asset management program. $370,000 $191,000 GO Bonds are assumed from the upcoming 2018 GO Bond Referenda Total (PAYG $2.6M; Bonds $11.05M) $2,621,000 $400,000 $10,650,000 15

17 Proposed Capital Program: Parks and Recreation Parks Maintenance Capital Program Project Name - Description 1. Gunston Park Design and construction. The project is for replacement of the grass community field. 2. Westover Park Design and construction. The project is for replacement of the grass community field. 3. Capital Asset Manager Staff resources to manage the capital asset program. FY 2019 Project List PAYG Program Contingency Total $405,000 $100,000 $505,000 $62,000 $62,000 $155,000 $155, Field Fund Program The fees assessed for rectangular fields are to support replacement and construction of synthetic turf fields in the County (annual estimate of $180,000). The fees assessed on diamond $250,000 $250,000 fields (annual estimate of $70,000) are to be used for specific diamond field enhancements, such as improved irrigation, batting cages, or accelerated sod replacement. 5. Feasibility Studies These funds will provide the ability to conduct timely and relevant analysis and studies as opportunities arise. The program is meant for new planning initiatives that are outside current CIP $150,000 $150,000 projects. Examples are potential planning and analysis needs for parks and sites associated with site plan proposals, Arlington Public Schools proposals, affordable housing proposals, or land acquisition opportunities. Totals $1,022,000 $100,000 $1,122,000 Anticpated Start/Completion Schedule S ummer 2018 / Fall 2018 S ummer 2018 /S ummer 2018 NA NA As Needed 16

18 Proposed Capital Program: Parks and Recreation Parks Synthetic Turf Program FY 2019 PAYG Project List Project Name - Description PAYG Synthetic Turf Program Contingency Cost Share Field Fund CC TIF Total 1. Long Bridge Design and construction of synthetic turf, infill and $838,392 $838,392 subbase repair for field #4. 2. Long Bridge Design and construction of synthetic turf, infill, subbase repair and shade structures for $496,379 $496,379 $992,758 field #1. There is a 50/50 cost share with Marymount University for this field. 3. New Field Design and construction for new synthetic turf location, to be determined through the Public Spaces Master Plan update process. Project $179,000 includes new subbase, synthetic turf, $810,000 $1,061,000 $2,050,000 infill, site amenities (depends on site) and potentially lighting (depends on site). Totals $179,000 $810,000 $496,379 $1,061,000 $1,334,771 $3,881,150 Anticipated Start/Completion Schedule Summer 2018 / Summer 2018 Summer 2018 / Summer 2019 Fall 2019 / Fall

19 Proposed Capital Program: Project Name - Description 1. Justice Center Facade Cleaning - Power wash the Detention and Court Police Facade. 2. Aurora Hills Library and Community Center - total roof replacement; HVAC replacement; installation of building automation system (BAS) and lighting replacement. Facilities Facilities Capital Program FY 2019 Project List Total $247,000 $705,000 Anticipated Start/Completion Schedule Summer 2018 / Summer 2018 Summer 2018 / Summer Software/System Upgrades - Replace Fire Alarm systems at the Residential Program Center and Arlington Arts Center and upgrade access control panels 4. Critical Systems Infrastructure Replace uninterruptable power systems (UPSs) in County network operating center (NOC) 5. Chair Replacement - Systematic annual chair replacement program to replace task chairs throughout County facilities. Existing chairs ten years or older will be replaced, supportive of the industry standard for life span. This year would start the third year out of an eleven-year program. 6. Interior Maintenance Capital Improvement - Systematic capital maintenance program that allows for the annual interior refurbishment of flooring, wallpaper, painting and signage. Facility revitalization has been deferred over the past decade due to the lack of departmental funding sources. This program would enable the facilities to be upgraded through a systematic ranking of needs based on yearly assessments of our 90+ buildings by internal staff. $100,000 $300,000 $110,000 $100,000 Summer 2018 / Winter 2018 Summer 2018 / Fall 2018 Summer 2018 / Winter 2018 Summer 2018 / Spring 2019 Total PAYG $1,562,000 18

20 Proposed Capital Program: Facilities Project Name - Description Facilities Design and Construction Program FY 2019 PAYG Project List PAYG GO Bond Balances Total Anticipated Start/Completion Schedule 1. ADA Remediation - In FY13, the County completed a comprehensive assessment of 54 facilities to determine any deficiencies in access for $500,000 $500,000 Ongoing persons with physical disabilities in it. This program is to remediate existing facilities. 2. Facility Master Planning and Feasibility Studies - Facility master planning provides an integrated approach that addresses short, intermediate, and long-term needs for County facilities. This funding is for staff charges for the developer funded project at Fire Station#10 ($60,000), site development at 26 th and Old Dominion ($45,000), Feasibility Studies ($250,000), and partial funding for the Trades Center Optimization Study ($100,000). $355,000 $100,000 $455,000 Ongoing Totals $855,000 $100,000 $955,000 19

21 Proposed Capital Program: Program Network Equipment Refresh TeleworkingMobility Security DHS Housing Choice Voucher Payment System DHS Local Housing and Benefits Software System Electronic Summons System CAFR Software Description Information Technology Maintenance Capital FY 2019 PAYG Project List This project provides continuous refreshment of County network equipment as it reaches end of life and/or requires enterprise-level feature enhancements and upgrades. This funding is in addition to short-term financing funds. The refreshment of this hardware is necessary to support connections for remote workers to connect to County applications and network drives and enables teleworking. The support for existing equipment expires in the second quarter of FY With these FY 2019 funds, information security will be expanded by implementing a more robust mail filtering system that will catch more spam and malware and reduce the chances of a ransomware attack. An estimated 80% of the threats received from would be captured by this tool. Information Technology PAYG $491,000 $261,134 $265,000 The new system will manage all business functions needed in the administration of HCV programs including: client waiting list, eligibility determination, subsidy calculation, payments, financial reconciliation with $100,000 County financial system, and be compliant with all HUD regulations and mandates. This new system will manage all business functions needed in the administration of Local Housing and Assistance Programs including: client's eligibility determination, benefit calculation, payments, financial $315,000 reconciliation with County financial system, and reporting. Previously, these local programs were handled within the Housing Choice Voucher (HCV) system through a special configuration. Effective in FY 2015, the County began assessment of a $5.00 fee as part of the costs in each criminal or traffic case in the district or circuit courts for the use of purchasing an electronic summons system. The costs of the system include peripheral equipment such as handheld devices, portable printers, driver s license scanners, and barcode readers, as well as the maintenance required for the system. The FY 2019 PAYG budget reflects the projected annual revenue from the fees. This new financial reporting software will be used to automate the preparation of the County s CAFR schedules and reports, thereby reducing personnel time spent and compounding resource utilization. Improved $100,000 oversight of County-wide financial reporting and financial transactions will facilitate strong internal controls and reduce audit risks. Total Information Technology FY 2019 PAYG $1,682,134 Anticipated Start/Completion Schedule Ongoing, funds expended by end of FY 2019 Summer 2018 / Winter 2018 Summer 2018 / Winter 2018 Winter 2018 completion Winter 2018 completion $150,000 Ongoing revenue Spring 2019 / Summer

22 Proposed Capital Program: Project Name and Description Information Technology FY 2019 Short-term Finance Project List Endpoint Replacement - Most end user computing devices in the County currently operate on Windows 7. In January 2020, manufactuer support for this operating system will terminate, and any devices still running it will stop receiving critical security patches. Thus, all County devices must be upgraded to Windows 10 before this date. These funds will be used to replace over 960 devices and upgrade over 1,200 devices. Network Equipment Refresh - These funds will be used to replace network switches and routers which are still being used past their useful life. Data Storage - These funds will be used to replace servers and other storage hardware that have reached the end of their useful life. Short-term Finance Short-Term Financing $1,985 1,500 Subtotal Enterprise Technology and Equipment $3,985 Fire Station Alerting System - These funds will be used to upgrade and standardize station alerting, replacing the County s current twelve-yearold technology. The alerting system reduces response time for 1,110 firefighters and paramedics, reducing the chance of flashover and increasing the chances of patient survival. Fire Breathing Apparatuses - These funds will be used to replace Self Contained Breathing Apparatuses (SCBA), which are devices that provide clean air to firefighters in hazardous conditions. The County s 3,298 current SCBAs were purchased in September 2008 and will no longer be covered under the manufacturer s ten-year warranty as of September ECC Radio System - Circuit to IP Simulcast Conversion - The existing emergency communication radio system network operates using circuitbased connectivity between remote sites within the system. Building more advanced features into this radio system will require first 715 converting it to Internet Protocol (IP) based connectivity. These funds will convert all remote sites to the IP based connectivity and replace all relevant hardware and fiber. Subtotal Public Safety $5,123 General Fund: Program Costs $9,108 TOTAL Project Costs $9, Anticipated Start/Completion Schedule Ongoing refreshment, funds depleted by end of FY19 Ongoing refreshment, funds depleted by end of FY19 Ongoing refreshment, funds depleted by end of FY19 Start Summer 2018 / Anticipated completion Spring 2019 Start Summer 2018 / Winter 2019 Anticipated completion Spring