Capital Improvements Program and SCIP

Transcription

1 Capital Improvements Program and SCIP Municipal government provides needed and desired urban services and programs to the public by building and maintaining capital facilities such as police and fire facilities, storm sewers, roads, bridges, parks, and public buildings. Capital improvements impact the life of each city resident and visitor through the provision of safety, transportation, recreation, and other services upon which the community depends. To accomplish this, the City of Colorado Springs is budgeting approximately $36.5 million in 2004 for its capital improvements program (CIP). The total $36.5 million is from a multitude of revenue sources. However, for explanation, the use of the revenue has been consolidated into two broad categories: General Use (primarily General Fund revenue) and Restricted Use. Just over $18.1 million carries use restrictions and funds only those projects that meet designated criteria respective to the fund. The remaining $18.4 million is from several sources and can be used for any type of capital project. The City s 2004 capital improvements program general use funding totals $18,375,075. The $18.4 million includes a 2004 General Fund contribution of $12,126,733 plus $1,872,360 of rebudgeted funds from savings on projects completed under budget. This $13,999,093 will fund two CIP components: 1) the ongoing maintenance of the city s existing infrastructure, budgeted at $6,749,759; and 2) $7,249,334 toward the 2004 $7,849,334 debt payment on the Springs Community Improvements Program (SCIP) bond. Several other sources comprise the $4,375,982 balance of the $18.4 million general use revenue for CIP. A total of $962,800 is derived from vendor fee revenue. Retailers in the metropolitan area collect the City s Sales and Use Tax, and the City repays them for this service. In 2004, the City will reduce the amount paid to vendors, thus retaining more of the Sales and Use Tax revenue. This $962,800 is combined with $3,413,182 in savings from projects completed under budget. This total $4,375,982 will address 24 of the most critical bridge, drainage, and street maintenance projects. It is important to note that 78 percent of the $4.4 million is from onetime sources that will not be available in subsequent years. The $18.1 million balance of the $36.5 million CIP budget is from restricted-use revenue sources. The SCIP fund will provide $600,000 from interest earnings on the unexpended balance of the SCIP bond proceeds in excess of previously budgeted amounts. This $600,000 will augment the $7,249,334 General Fund bond debt allocation. The SCIP bond debt, incurred with voter approval in 1999, has an annual repayment cost of $7.85 million. One of the larger restricted-use sources of revenue is the Public Safety Sales Tax (PSST). Revenue is generated from a voter-approved.4 percent increase in the City Sales and Use tax. Voters supported the tax increase in November 2001 to fund 20 Police and Fire capital improvements projects and operations needs. The 2004 PSST budget allocates about $5.5 million for seven public safety projects. The several remaining restricted-use sources total about $12 million. For 2004, $3.6 million in Lottery revenue will allow the continued maintenance of the existing parks and trails systems. The Transportation Equity Act for the 21st Century (TEA-21) federal transportation grants will provide about $2.5 million to construct specific transportation projects. Just over $4.9 million is from the Trails, Open Space, and Parks (TOPS).1 percent sales tax revenue which will fund purchases of open space and associated maintenance, development and maintenance of trails, and development of new parks. A total of $865,255 in Community Development Block Grant (CDBG) program funds will pay for capital improvements in designated neighborhoods. The City s Bicycle Tax revenue of $124,215 addresses trails development needs citywide with a portion matching a TEA-21 Enhancement grant. In 2003, City Council approved a CIP budget of $45,428,551 for capital improvements. Due to greater-than-expected revenue shortfalls throughout 2003, the City Manager froze a combined total of $8,342,397. This $8.3 million in frozen funds includes $1,705,000 from the Ongoing CIP maintenance funding; $3,726,397 from the Pay-As-You-Go allocation; and $2,911,000 from the Public Safety Sales Tax fund. Thus, the adjusted 2003 CIP Budget was reduced to $37,086,154. For 2004, the capital improvements program budget is $36,530,118; when compared to the adjusted 2003 CIP budget, the 2004 CIP budget is only 1 percent less, or reduced by $556,036. The 2004 CIP budget supports the City s essential capital maintenance needs, highest priority public safety projects, and the most critical bridge, drainage, and street maintenance projects Budget Page 16-1 Capital Improvements Program and SCIP

2 2004 CAPITAL IMPROVEMENTS BUDGET Collectively, 2004 capital improvements funding is approximately $36.5 million. Approximately $18.1 million carries use restrictions and funds projects that meet the designated criteria respective to the fund. The remaining $18.4 million is from numerous sources. The $18.4 million CIP allocation funds three components of the City s capital improvements program: the City s Ongoing CIP, the partial payment of the 1999 SCIP bond debt retirement, and the emergency repair and maintenance projects. GENERAL FUND - ONGOING CIP: $6,749,759 The City s ongoing CIP commitment includes funding immediate financial obligations, federal mandates, transportation grant matches, the street overlay program, emergency stormwater drainage repairs, and Police, Fire, and City facility repairs. In 2004, the City will provide a total of $6,749,759 for the ongoing capital improvements program of which: 7 percent pays the City s capital financial commitments and federal and state-mandated requirements 65 percent paves city streets 10 percent addresses infrastructure maintenance, repair, replacement, or addition of traffic signals, sidewalks and repairs to drainage channels 9 percent funds City facilities repairs 9 percent provides the local match required to obtain about $2.5 million in TEA-21 federal transportation grants Federal Mandates 1% Grants- Local Match 9% City Facilities Maintenance 9% Public Works Maintenance and Repair 10% 2004 Ongoing CIP $6,749,759 Financial Commitments 3% Federal Mandates 4% Street Overlay 65% GENERAL FUND SCIP BOND DEBT RETIREMENT: $7,249,334 The second component of the $18.4 million General Fund contribution, approximately $7.2 million, has been allocated toward the 2004 bond debt payment for the 1999 SCIP voter-approved projects. In 1998, the City pledged approximately $7.85 million annually to retire the SCIP $88 million bond debt so no tax increase would be associated with the bond issuance. In April 1999, SCIP successfully obtained voter approval for the City to sell $88 million in bonds to fund 29 capital projects. The SCIP bonded debt will be retired in The 2004 bond debt payment is $7,849,334; $7,249,334 will come from the General Fund with the $600,000 balance provided from the SCIP fund. GENERAL FUND EMERGENCY REPAIR AND MAINTENANCE: $4,375, Capital Improvements Program General Fund Contribution $18,375,075 Street Overlay 24% Financial Commitments- SCIP Debt Payment 40% Public Works Maintenance and Repair 4% City Facilities Maintenance 3% Financial Commitments 1% Grants- Local Match 3% Emergency Repair and Maintenance 24% In early discussions for the 2004 budget, City Council directed the City Manager to determine the funding needed to address the most critical bridge, drainage, and street maintenance needs. Subsequently, Public Works staff compiled a list of 24 of the highest priority unfunded emergency repair and maintenance projects, totaling $4,699,982. Through development of the 2004 Budget, the CIP budget includes funding for these projects from several sources. A total of $962,800 is derived from vendor fee revenue. Retailers in the metropolitan area collect the City s Sales and Use Tax, and the City repays them for this service. The City will reduce the amount paid to vendors, thus retaining more of the Sales and Use Tax revenue. This $962,800 will be combined with $3,413,182 in savings from projects completed under budget. The total $4,375,982 will address 24 of the most critical bridge, drainage, and street maintenance projects. It is important to note that 78 percent of the $4.4 million is from one-time sources that will not be available in subsequent years. Augmenting this $4.4 million is an additional $154,000 from the City s Community Development Block Grant (CDBG) that will fund two bridge projects. Colorado Springs Utilities (CSU) will provide the $170,000 local share/second year funding of the three-year commitment for the Fountain Creek Watershed study. Combining these sources provides the $5 million for the 24 emergency projects. Capital Improvements Program and SCIP Page Budget

3 RESTRICTED USE SOURCES - $18,155,043 The other portion of the $36.5 million includes approximately $18.1 million from restricted-use sources. These restricteduse sources are designated to fund specific types of projects and may not be used for any other purpose. SCIP FUND $600,000 In 2004, $600,000 of unbudgeted monies from the SCIP Fund will augment the $7,249,334 General Fund allocation to complete the $7,849,334 SCIP bond debt payment for This revenue resulted from interest earned on the unexpended balance of the SCIP bond proceeds in excess of previously budgeted amounts. PUBLIC SAFETY SALES TAX (PSST) FUND $5,521,937 The November 6, 2001, El Paso County coordinated election resulted in the passage of the.4 percent increase in the City Sales and Use Tax for 20 Police and Fire capital improvements projects and related operations needs. Over the past two years, lower-than-expected sales tax collections have required mid-year fiscal actions to avoid fund deficits. In 2002, 10 public safety projects were budgeted for construction totaling $18 million. However, a total of $1.95 million from 4 of the 10 budgeted projects was suspended. Two of the four projects were rebudgeted in 2003 as part of the $10.7 million PSST budget. However, in July 2003, $2.9 million for Fire Station #21 was suspended to allow for further station location analysis and fund protection. The 2004 PSST budget allocates just over $5.5 million for five new public safety projects and two ongoing projects. LOTTERY $3,604,000 In 2004, Lottery revenues are anticipated to provide $3.6 million allowing continued maintenance of the existing parks and trails systems. Also included in this allocation is a total of $644,000 for annual financial commitments: $225,000 for the Adult Softball Complex, $160,000 for the Hillside Community Center, $109,000 for Meadows Park Community Center, and $150,000 for partial payment for the Red Rock Canyon Open Space purchase. The remaining $2.96 million in Lottery funds will be used primarily for park maintenance. The most notable change in 2004 is that the Lottery Fund will absorb $1 million of costs previously paid from the General Fund for the operating and personnel expenses of the Park Design and Development Division in the Parks, Recreation and Cultural Services Department. While all of these expenditures are allowable costs to be borne by Lottery funds, the shift of these expenditures has resulted in eight Parks, Recreation and Cultural Services projects being postponed or eliminated. TRANSPORTATION EQUITY ACT FOR THE 21ST CENTURY (TEA-21) $2,503,000 The Transportation Equity Act for the 21st Century (TEA-21) federal transportation grants will provide just over $2.5 million to construct specific transportation projects as approved by the regional Transportation Advisory Committee. These grants usually award 80 percent of the total project cost, provided the City funds the local 20 percent share. A 2004 TEA-21 local match of $615,000 is provided from the General Fund Ongoing CIP commitment for transportation grant matches for Woodmen Road from Academy to Lexington and for traffic signal upgrades. A $44,000 grant from the TEA-21 Enhancements program will be matched with $15,000 from the City s Bicycle Tax revenue. TRAILS, OPEN SPACE, AND PARKS (TOPS) $4,935,920 The Trails, Open Space, and Parks (TOPS) revenue is generated from a.1 percent sales tax adopted by voters in April The majority of funds are designated to purchase open space and fund associated maintenance, development and maintenance of trails, and development of new parks. Two percent of collections will fund program administrative expenses and salary and benefits for a landscape architect for the TOPS program. While the TOPS Fund is projected to have $5.4 million in 2004, only $4,935,920 is being appropriated. TOPS open space/land acquisition funding of about $2.9 million is allocated for the purchase of the Bluestem Prairie/Big Johnson Reservoir and Red Rock Canyon open spaces. Funds in 2004 have been earmarked for these open space payments and for the development of the Wagon Trails and Templeton Heights park sites. Additionally, five trails throughout the city will be funded from the TOPS trails development allocation. When additional projects are identified, beyond the $4,935,920, supplemental appropriations will be made pending City Council approval. In November 2002, voters approved extending the TOPS tax and authorized 6 percent of annual collections to be used for stewardship and maintenance costs. Additionally, voters approved increasing the maximum allowable percentage of collections used for administrative costs from 2 to 3 percent. A lawsuit has been filed by Mr. Douglas Bruce to invalidate the extension. Consequently, a total of $382,242 ($327,636 for maintenance, $54,606 for administrative costs) will not be appropriated for expenditure in case the lawsuit invalidating the extension is successful. Additionally, while the Red Rocks Open Space 2004 COP annual payments are estimated at $1,274,000, $1.5 million is budgeted in The approximate $225,000 balance will remain in the account for future COP payments should the Bruce lawsuit prevail Budget Page 16-3 Capital Improvements Program and SCIP

4 COMMUNITY DEVELOPMENT BLOCK GRANT $865,255 A projected $700,000 from the Community Development Block Grant program (CDBG) will fund community improvements in designated neighborhoods. Additionally, CDBG funds will provide $165,255 to address infrastructure needs identified through the City s capital improvements program and the $5 million critical bridge, drainage, and street maintenance needs list of projects. A total of $8,000 will build pedestrian ramps in the Mill Street Neighborhood Strategy Area (NSA), $3,255 will build sidewalks in four different locations, and another $154,000 will address critical bridge repairs. BICYCLE TAX $124,215 The City s Bicycle Tax revenue completes the restricted-use funding. This revenue is generated from a $4 fee assessed on bicycles at the time of purchase. The 2004 budget recommends appropriation of $124,215 for the development of bicycle trails as per the City s Bicycle Plan. A total of $34,215 is programmed for financial commitments, a $15,000 local match will leverage $44,000 in TEA-21 Enhancement grants for development of a bicycle commuter map, and the remaining $75,000 will address trail improvements. When additional projects are identified, supplemental appropriations will be made pending City Council approval. Combining all available sources for CIP, General Fund and Restricted Use, the 2004 capital improvements budget totals $36,530, Capital Improvements Program All Funds Summary $36,530,118 Vendor Fee $962,800 Pay-As-You-Go $3,413,182 SCIP Fund $600,000 General Fund Ongoing CIP $13,999,093 SCIP-Public Safety Sales Tax $5,521,937 Lottery $3,604,716 TOPS $4,935,920 TEA-21 $2,503,000 CDBG $865,255 Bike Tax $124,215 CIP OPERATIONAL MODIFICATIONS For 2004, the City Manager endorsed implementing modifications in funding project management. These changes affect the Public Works Department-City Engineering Division and the Parks, Recreation and Cultural Services Department-Design and Development Division. Historically, City Engineering staff costs for project management have been covered through General Fund operating. However, in 2004 the salary and benefits costs for five FTE positions in City Engineering will be paid from the City funded CIP Construction Fund. Dollars included in CIP project budgets for the contracting of design, engineering, and project management are proposed to be redirected towards the payment of the costs of specific engineers and engineering technicians in City Engineering who are currently dedicated to CIP project implementation. This is an effort to reduce the use of expensive design and CIP project management consultants in the implementation of City construction projects. This action will also serve to ensure the effective utilization of existing engineering and design staff. Similar changes have been implemented in the Parks, Recreation and Cultural Services-Design and Development Division For 2004, $1 million in operating costs previously funded from the General Fund is being shifted to the Lottery Fund. Three Landscape Architect positions in the Parks, Recreation and Cultural Services - Design and Development Division and one Manager position from the Parks, Recreation and Cultural Services Administration budget will be transferred to the Lottery Fund. Of the two professional Landscape Architect positions funded from the Lottery in 2003, 0.5 position will be transferred to the Trails, Open Space and Parks (TOPS) fund. Thus, for 2004, 5.5 positions will be paid from Lottery funds at a cost of $474,716. It should be noted that this adjustment has resulted in a significant reduction in Lottery funds available for the construction or renovation of City parks. While all of these expenditures are allowable costs to be borne by Lottery funds, the shift of these expenditures has resulted in eight parks and recreation projects being postponed or eliminated. Capital Improvements Program and SCIP Page Budget

5 SCIP HISTORY AND RECOMMENDATIONS In May 1997, City Council adopted the Springs Community Improvements Program (SCIP) to address funding the city s backlog of capital improvements. SCIP establishes citizen committees responsible for deciding which projects to construct, determining which mechanisms should be used to fund these projects, and acquiring Council and voter approval of their recommendations. In January 1998, City Council finalized the appointment of the 16-member Citizens Coordination Committee (CCC). The official SCIP process kickoff was in February. The project subcommittees convened 2-3 hours weekly for approximately 5 months with active and regular attendance ranging from members per subcommittee, a total of over 6,531 volunteer hours. In addition to subcommittee participation, SCIP had strong support from The Chamber, Greater Colorado Springs Economic Development Corporation, Pikes Peak Association of Realtors, and the Colorado Springs Housing and Builders Association. By July, all subcommittees completed their respective missions. The CCC presented their final recommendations to City Council at the end of July In support of the SCIP list of projects and financing recommendations, City Council agreed to present the 1997 and 1998 TABOR refunds retention and an $88 million bond issue to the voters. In November 1998, Colorado Springs voters overwhelmingly supported (2:1) using the $6.6 million 1997 TABOR refund to construct five of the SCIP prioritized projects. Through the General Fund budget, approximately $7.85 million was pledged annually to retire the SCIP $88 million bond debt, thus, ensuring no tax increase would be associated with the bond issuance. At the April 1999 municipal election, voters rejected retaining the $790,600 of the 1998 TABOR refund for the Northeast and Southeast Recreation Centers but approved the sale of $88 million in bonds to fund 29 SCIP recommended projects. In May 1999, $ million of Series 1999 bonds were sold at an average interest rate of 4.72 percent; the bonds closed on June 9, The bond proceeds will be combined with interest earnings on unexpended balances along with funds already on hand to finance the $103 million of SCIP projects. Moodys Investor s Service assigned a rating of A1 to the Series 1999 bonds while Standard & Poor s issued a AA rating to the proposed bonds. The financing achieved all of the objectives recommended by the SCIP Citizens Coordination Committee and established by City Council: 1) Minimizing the principal repayment period (16 years vs. the 20 years approved by voters) with a total repayment cost of $127.8 million vs. the $157 million approved by voters, a savings of $29.2 million; 2) The size of the issue was kept below the $88 million approved by voters; and, 3) The annual debt service on the bonds has been maintained as close as possible to $7.85 million. The SCIP bonded debt will be retired in Approved SCIP Financing Phase I Funding Source Total General Fund -- $7,850, Contribution $7,850,000 $7,850, Series Bond Proceeds $85,995,058 $85,995,058 Interest Earnings from Bond Proceeds $2,439,194 $2,439,193 $2,439,193 $7,317,580 Interest Earnings on Project Fund Balance $449,000 $449,000 Half Cent Sales Tax Fund Balance $2,256,607 $2,256, TABOR Refund Approved by voters $6,608,101 $6,608, TABOR Refund -- Rejected by voters $0 $0 Combining all sources, $110 million was provided for the SCIP projects. Totals $105,597,960 $2,439,193 $2,439,193 $110,476,346 The SCIP CCC recommended to City Council expenditures totaling $110,476,346 in the following areas: Public Safety $28,700,000 Transportation $28,154,946 Drainage $20,812,000 Community Enhancements $11,100,000 Parks and Public Facilities $18,709,400 Special Projects $3,000, Budget Page 16-5 Capital Improvements Program and SCIP

6 PROJECTS FUNDED THROUGH 1997 $6,608,101 TABOR REFUND Academy/Airport Drainage Project Complete $506,000 Arrawanna/Platte Storm Sewer Project Complete $897,000 Garden of the Gods Road at Mark Dabling Intersection Imp. Project Complete $565,000 Colorado Springs Youth Sports Complex Project Complete $1,640,101 Animal Shelter Project Complete $3,000,000 Total Refund Recommended Project Costs $6,608,101 PROJECTS FUNDED THROUGH SCIP BOND - PLAN OF FINANCE Public Safety Emergency Communications Network Project Complete $16,000,000 Fire Department Operations and Training Center Project Complete $8,600,000 Police Evidence Building Project Complete $1,250,000 Police Helicopter Hangar Project Complete $250,000 Fire Station #18 Project Complete $2,600,000 $28,700,000 Transportation Congestion Relief Academy Blvd. Reconstruction - Union to Montebello South Project Complete $9,370,000 Fillmore Street Safety Projects - I-25 to Union Project Complete $3,200,000 Neighborhood Intersection Safety Improvements Project Complete $1,843,200 Academy Boulevard Reconstruction - Maizeland to Galley Project Complete $7,167,000 Neighborhood Pedestrian Improvements Project Complete $320,000 Citywide Neighborhood and School Traffic Calming Project Complete $500,000 Woodmen Road Widening- Buckhorn Circle to Peregrine Project Complete $614,400 Rusina Road Improvements Project Complete $1,200,746 Tejon Street at Brookside Street Intersection Improvements Project Complete $865,400 Union Boulevard-Construct 6 Lanes To be completed spring 2004 $600,000 Research to Powers Roswell Neighborhood Truck Route Improvements Project Complete $1,909,200 $27,589,946 Drainage -- Flood Control Fountain Creek Imp- Monument Creek Confluence-21st St. Project Complete $11,500,000 Shooks Run Downtown Interceptor Project Complete $400,000 Shooks Run Culverts Project Complete $5,024,000 Sand Creek Channel Improvements - Main Stem Project Complete $2,345,000 Academy and Dublin Storm Sewer Project Complete $30,000 Alta Loma Road/Cambria Drive Drainage Project Complete $66,000 Valley Hi Avenue Drainage Project Complete $44,000 $19,409,000 Parks and Public Facilities Community Recreation Centers Facilities Complete $12,069,299 Aquatics and Fitness Center Project Complete $4,000,000 Sertich Ice Center Memorial Park Project Complete $1,000,000 $17,069,299 Community Enhancements Confluence Park Redevelopment Area To be completed summer 2004 $11,100,000 $11,100,000 Total Bond - Plan of Finance Recommended Project Cost $103,868,245 Total SCIP Phase I Project Funding $110,476,346 Capital Improvements Program and SCIP Page Budget

7 RELATIONSHIP OF SCIP BUDGET TO ANNUAL OPERATING BUDGET The SCIP Citizens Coordination Committee s recommendations are coordinated with the City Budget to ensure the General Fund can support the financial requirements of the proposal. Although bringing some facilities on-line will increase the demand on the City budget, the City is committed to supporting and implementing the recommendations presented by the SCIP Citizens Coordination Committee. In 2004, approximately $2.4 million is budgeted from the General Fund to operate and maintain the facilities added to the City s inventory from the SCIP. Additionally, approximately $6.3 million is budgeted from the Public Safety Sales Tax Fund to operate and maintain the facilities added to the City s inventory from the public safety component of the SCIP 01 effort. The anticipated operating impacts are as follows: ESTIMATED ONGOING GENERAL FUND COSTS FOR 1999 SCIP PROJECTS Project Title Academy Boulevard/Airport Road Drainage $0 $0 $0 $0 Arrawanna/Platte Storm Sewer $0 $0 $0 $0 Animal Shelter $0 $0 $0 $0 Garden of the Gods Road at Mark Dabling Intersection $0 $0 $0 $0 Improvement Colorado Springs Youth Sports Complex $144,757 $144,757 $144,757 $144,757 Emergency Communications Network $50,000 $30,000 TBD TBD Fire Operations and Training Center $0 $66,000 $66,000 $66,000 Police Evidence Building $0 $0 $37,150 $37,150 Police Helicopter Hangar $39,700 $39,700 $39,700 $39,700 Fire Station #18 $1,401,272 $1,519,994 $1,565,590 $1,612,558 Academy Blvd. Reconstruction Union to Montebello $0 $0 $0 $0 South Fillmore Street Safety Projects - I-25 to Union $0 $0 $0 $0 Neighborhood Intersection Safety Improvements $0 $0 $0 $0 Academy Blvd. Reconstruction Maizeland to Galley $0 $0 $0 $0 Neighborhood Pedestrian Improvements $0 $0 $0 $0 Citywide Neighborhood and School Traffic Calming $0 $0 $0 $0 Woodmen Road Widening- Buckhorn Circle to Peregrine $0 $0 $0 $0 Rusina Road Improvements $0 $0 $0 $0 Tejon Street at Brookside Street Intersection Improvements $0 $0 $0 $0 Union Boulevard- Research to Powers Construct Six Lanes $0 $0 $0 $0 Roswell Neighborhood Truck Route Improvements $0 $0 $0 $0 Fountain Creek Improvements - Monument Creek $0 $0 $0 $0 Confluence to 21 st Street Shooks Run Culverts and Downtown Interceptor $0 $0 $0 $0 Sand Creek Channel Improvements Main Stem $0 $0 $0 $0 Academy and Dublin Storm Sewer $0 $0 $0 $0 Alta Loma Road/Cambria Drive Drainage $0 $0 $0 $0 Valley Hi Avenue Drainage $0 $0 $0 $0 Cottonwood Creek Recreation Center $0 $303,591 $312,700 $297,065 Aquatics and Fitness Recreation Center at Memorial Park $0 $104,869 $108,015 $102,614 Northwest Recreation Center $194,863 $292,295 $301,063 $286,010 Sertich Ice Center Memorial Park $0 $0 $0 $0 Confluence Park Redevelopment Area $0 $0 $0 $0 TOTAL $1,830,592 $2,501,206 $2,574,975 $2,585, Budget Page 16-7 Capital Improvements Program and SCIP

8 ESTIMATED ONGOING COSTS FOR PUBLIC SAFETY SALES TAX PROJECTS PSST FUND Project Title Funded 2002 Police Helicopter Hangar, Phase II $0 $0 Reflected in SCIP impacts Police Evidence Building, Phase II $0 $0 Reflected in SCIP impacts Police Substation 4th Division Northeast $0 $0 Operational 2004 Police Substation Gold Hill Division $0 $0 Operational 2007 or beyond Police Acacia Park Facility $19,570 $19,570 Fire Training Tower $0 $0 Fire Station #14 Relocation $49,332 $101,624 Fire Station #19 $0 $1,094,317 Fire Station Health, Safety & Accessibility Study $0 $0 Ventilation Improvement in Fire Stations $0 $0 0 Funded Fire Station #20 $0 $1,148,047 Operational 2004 Fire Station #21 $0 $0 Postponed Police Substation Gold Hill Division $0 $0 Operational 2007 or beyond Police Substation 4 th Division Northeast $0 $2,850,678 Operational Funded Fire Station #8 Remodel $0 Fire Station #6 Remodel $0 Police Substation Gold Hill Division $0 Operational 2007 or beyond Police Substation 4 th Division Northeast $3,927,854 Fully operational April 2004 Operations and staff are PSST-funded Fire Department Maintenance and Logistics Center $0 Ventilation Improvements in Fire Stations $0 Fire Station Health, Safety and Accessibility Study $0 TOTAL $68,902 $5,214,236 Capital Improvements Program and SCIP Page Budget

9 FUTURE CAPITAL PROJECT FUNDING Although SCIP-Phase I funded approximately $110 million in capital projects, a backlog, at that time, of nearly $315 million in unfunded projects remained. The SCIP Citizens Coordination Committee (CCC) recognized the bond issue was not a long-term solution to funding infrastructure and viewed the April 1999 bond election as a jump start to fund the City s highest priority capital projects as determined by the citizen subcommittees. The CCC realized additional revenues must be pursued for future capital funding. SCIP Subcommittee Projects SCIP Project Requests - May 1998 SCIP 1998 Recommended Funded SCIP Phase I 1998 Unfunded Projects Transportation Projects $151,000,000 $28,154,946 $122,845,054 Potential Other Recommended Fiscal Action Revenue 2000 Estimate $3,123,488 Vehicle Registration Fee Drainage Projects $160,000,000 $20,812,000 $139,188,000 Unknown Stormwater District Community Enhancements Projects $35,000,000 $11,100,000 $23,900,000 - None identified at this time Parks and Public Facilities Projects $30,000,000 $18,709,400 $11,290,600 - None identified at this time Public Safety and Special Projects $49,000,000 $31,700,000 $17,300,000 - None identified at this time Totals $425,000,000 $110,476,346 $314,523,654 To address the shortfall, the CCC recommended a number of revenue enhancement sources to complement the SCIP 1998 finance plan. City Council supported these recommendations and initiated institution of a vehicle registration fee, establishment of a stormwater district, and development of impact fees. While these efforts were investigated, additional revenue from these sources did not materialize. In April 2000, City Council initiated its next SCIP process SCIP 01. Once again, the subcommittees reviewed and prioritized the city s list of capital projects which was a compilation of: Unfunded projects from SCIP 1998 Proposed Phase II SCIP projects Unfunded portions of the 1998 SCIP projects that emerged through the public input processes Newly identified capital projects Capital projects that have associated operating and service delivery costs Citizen-requested projects received from the SCIP Project Request Forms distributed at project meetings and published in SCIP inserts Additionally, a citizen s committee reviewed public safety services Staff updated the project cost estimates and established costs of new projects. To assist the project subcommittees in their prioritization deliberations, projects were rated as high, medium or low priority. Also included were the anticipated operating costs associated with the projects. While staff provided the list of projects, the SCIP subcommittees had the latitude to add or modify the projects as they proceeded through their processes. The SCIP CCC established that they would use their previously identified Phase II list of recommendations as a starting point for the prioritization basis. For this second phase of SCIP, the SCIP subcommittees were presented with a daunting list of projects exceeding $1 billion in cost Budget Page 16-9 Capital Improvements Program and SCIP

10 The updated list of projects compared the SCIP 01 list of requests to the 1998 SCIP recommended list of projects; this comparison reflected a significant cost increase from the 1998 SCIP list of projects. Several factors contributed to the difference in cost: 1. In 1998, the SCIP subcommittees dropped a number of projects identified as lower priority as they narrowed their respective list of projects from $627 million to $425 million. SCIP-Phase I funds approximately $110 million of this list, leaving a backlog of about $315 million in unfunded projects with projects cost estimates in 1998 dollars. It is the responsibility of staff to submit all unfunded projects for SCIP funding consideration if the need for the improvement remains; hence, the SCIP 01 list includes projects dropped from the 1998 SCIP list; 2. The size and scope of repairs may have changed as a result of delaying repairs for existing projects; 3. New projects had surfaced in two years. The greatest increase in project costs was in the transportation requests. There were 45 new transportation projects submitted to SCIP 01, accounting for $447.9 million in added project costs. Two major corridor projects, three interchanges, an East/West non-beltway improvement project, and improvements to an existing expressway account for 89 percent of the new transportation projects. 4. Additional features of the SCIP 1998 projects were identified through the public input process. SCIP funding in was insufficient for these components; 5. The SCIP 01 project costs were estimated for construction anticipated in ; SCIP Project Requests April 2000 SCIP Subcommittee Projects 1998 Unfunded Projects SCIP Project Requests 2000 Transportation Projects $122,845,054 $574,776,000 Drainage Projects $139,188,000 $326,610,022 Community Enhancements Projects $23,900,000 $44,508,325 Parks and Public Facilities Projects $11,290,600 $50,300,494 Public Safety and Special Projects $17,300,000 $36,709,500 Totals $314,523,654 $1,032,904, Additionally, costs of capital improvements construction increased significantly due to conditions in the local construction industry. Colorado Springs experienced a 40.4 percent increase in the number of building permits issued in 2000 from While a busy market was ideal for the local economy, the prosperity came with a cost. The construction boom resulted in materials shortages and quality control problems; The City has a low number of bidders for projects, which reduced competitive pricing; With the shortage of an available skilled labor workforce, contractors had a difficult time finding and retaining a quality workforce. This was compounded by increased enforcement of a drug-free work environment and expanded workplace safety requirements. The SCIP 01 citizen subcommittees concluded their review of over $1 billion in CIP requests in October and the respective subcommittee chairs forwarded committee recommendations to the CCC. Staff coordinated with the CCC to identify the operating impacts associated with their recommended projects and verify cost estimates to ensure the projects could be accomplished as envisioned by the SCIP participants. In December 2000, the SCIP CCC presented to City Council a recommendation to ask voters for a 1-cent sales and use tax increase to fund a list of 114 capital projects and public safety personnel, equipment and operating needs. In January 2001, City Council reviewed the SCIP 01 recommendations, made minor adjustments and agreed to present one question to voters in April 2001; approval of a.09 percent increase in the City s Sales and Use Tax. The tax would fund a list of 107 capital projects and public safety operating, personnel and equipment needs. Capital Improvements Program and SCIP Page Budget

11 Once again, SCIP received strong support from the Colorado Springs Chamber of Commerce, Greater Colorado Springs Economic Development Corporation, Pikes Peak Association of Realtors, and the Colorado Springs Housing and Builders Association. Additionally, the print media, both the police and fire employee organizations and the vast majority of City Council candidates running for office, publicly endorsed the ballot issue. Despite the overwhelming support, the ballot issue failed at the polls. Following the April election, City Council again revisited the identified but unfunded needs. Throughout June and July, City Council worked with staff to identify approximately $8 million in additional revenue to bond SCIP 01 transportation and drainage capital projects. Having identified the $8 million from increased fees and fines and other fiscal actions, City Council could ask voters to approve bonds that would not require a tax increase to retire the bond debt. In August after considerable discussion, City Council unanimously agreed to repackage the SCIP 01 projects and services and resubmit the requests to voters. City Council also approved a resolution supporting the El Paso County Board of County Commissioners placing a mill levy increase on the November 2001 ballot to supplement County Road and Bridge revenues. The City's share of the increased funding was estimated to be approximately $64 million over 10 years and would have funded 29 SCIP 01 road and bridge projects. On September 6, 2001, a week after City Council s deadline for adding ballot issues, the County Commissioners voted not to place the mill levy question on the November ballot. Consequently, funding for those 29 SCIP 01 road and bridge projects was not presented to voters for consideration. The November 2001 coordinated election ballot presented SCIP 01 to voters as six separate questions. This provided the voters broader opportunity to support the components they found most important. A $63.47 million bond issue to construct 20 transportation projects citywide. These bonds would not require any increase in taxes. The bond debt would be paid from pledging a portion of the existing city sales and use tax. A $ million bond issue to construct 27 stormwater drainage projects citywide. These bonds would not require any increase in taxes. The bond debt would be paid from pledging a portion of the existing city sales and use tax. Retention of the $1,557,808 of the 2000 TABOR refund for an intersection improvement in the city. A.4 percent increase in the city sales and use tax for 20 Police and Fire capital improvements projects and operations needs. This tax would not sunset since police and fire personnel and operations funding requirements will continue after projects are completed. A.1 percent increase in the city sales and use tax for Public Works personnel, operations and equipment needs. This tax would not sunset since public works personnel and operations funding requirements continue. A.1 percent increase in the city sales and use tax for Parks and Recreation projects. This tax would fund 11 parks and recreation capital projects and sunset in 6 years, which would be at the end of The November 6, 2001, El Paso County coordinated election resulted in passage of the.4 percent increase in the city sales and use tax for Police and Fire capital improvements projects and operations needs. The other five ballot issues failed. Consequently, City Council approved the 2002 City budget, which included the appropriation of funds previously set aside for debt retirement of the two bond issues to accomplish seven SCIP projects on a pay-as-you go basis. Although the majority of the ballot questions failed to gain voter support, two additional revenue sources for capital improvements emerged: the Public Safety Sales Tax and the General Fund pay-as-you-go allocation Budget Page Capital Improvements Program and SCIP

12 2001 SPRINGS COMMUNITY IMPROVEMENTS PROGRAM PROCESS AND STRUCTURE (SCIP 01) OVERVIEW The initial Springs Community Improvements Program (SCIP) process was adopted by City Council in May SCIP is a process where citizens have the opportunity to select and prioritize which capital improvement projects are to be constructed in Colorado Springs. These projects will address traffic congestion relief, bridge construction, flood control, bicycle and pedestrian safety measures, additional police and fire stations, construction of parks and recreation centers and other community enhancement projects that protect our community and quality of life in Colorado Springs. In addition to prioritizing projects, the SCIP participants recommend the method and amount of funding for capital maintenance and growth. In early 2000, City Council expanded the scope of SCIP to include funding for public safety personnel, operations, and equipment. PROCESS STRUCTURE AND RESPONSIBILITIES SCIP consists of two components. The internal component focuses on the internal City process of project requests collection and analysis of project and service prioritization. The external component uses citizen subcommittees to select projects for construction and determine the method and amount of funding for capital maintenance and growth. Internal Component Summary Capital Improvements The SCIP internal component process started with the ongoing effort of collecting, recording and responding to requests for capital projects received from the public, City Council and staff. City staff inspected each project request to establish the scope, design and project cost. If the request was a legitimate City responsibility, staff identified the most appropriate funding source. As part of the SCIP process, the General Fund committed $15 million annually for capital improvements. About one half of this allocation funded ongoing capital maintenance needs with the remainder funding capital projects. If the requested project could not be funded from the ongoing maintenance allocation, it was then evaluated for funding eligibility through a dedicated funding source, i.e., Lottery, TOPS, Bicycle Tax, etc. If the project qualified under the designated funding source, the project proceeded through the respective process for funding consideration. If the benefit of a project targeted an individual or single neighborhood, the project will be recommended for funding through an improvement district so those who benefit most from the project paid for the project. Those projects that had greater community benefit were forwarded to the City Manager who then presented his recommendations to City Council for final comments. Upon Council approval, the City Manager presented the list of projects, available funding options, City Manager's recommendations, City Council s comments, City Council s Strategic Plan, and any unfunded project requests from the dedicated funding sources to the SCIP Citizens Coordination Committee and Subcommittees initiating the External Component of SCIP. Public Safety The public safety component was initiated as a community-based endeavor to identify and fund unmet public safety operating and service delivery needs. The Police Chief was charged with organizing the structure and process. As this process evolved, a citizens committee was formed to help assess the community s public safety needs in parallel with the capital project committees of SCIP. External Component Summary The Springs Community Improvements Program (SCIP) was led by 16 citizens (the Citizens Coordination Committee - CCC) appointed by City Council. The program was comprised of self-directed subcommittees with the following responsibilities: The Citizens Coordination Committee (CCC) consisted of the Chair, Vice Chair, and a Chair and Vice Chair of each of the seven subcommittees. This 16-member executive body matched the size of the capital program with the funding strategy and presented the final project lists and financing recommendations to Council and voters for final approval. In the original SCIP process, a Finance Subcommittee evaluated, prioritized, and recommended financing options to fund the recommended projects. However, for SCIP 01, the CCC functioned as the Budget/Finance Committee since funding the projects is closely tied to the project recommendations. Additionally, this committee provided financial oversight of the Council/voter-approved capital program projects. Capital Improvements Program and SCIP Page Budget

13 The key responsibilities of the SCIP Oversight Committee were twofold. The committee monitored progress of implementing the SCIP voter-approved capital program and made recommendations to City Council on substantial changes to the SCIP program including changes to project budgets, major adjustments in the allocation of resources between projects, or any substantial change in the scope of projects. The five project subcommittees Chair and Vice Chair facilitated their respective subcommittee meetings to effectively control group dynamics to ensure equal and maximum participation and cooperation. The project subcommittees evaluated, prioritized, and recommended projects for funding relative to their project category. The five subcommittees were Community Enhancements, Drainage, Parks and Public Facilities, Public Safety and Transportation. The Public Safety Operations Subcommittee reviewed and evaluated police, fire and public works operations and maintenance needs. The committee provided feedback on service levels. The Public Relations Subcommittee was responsible for organizing public communications, advertising, public education and public support of the citizen subcommittees progress and final recommendations. SCIP 01 STRUCTURE City Council Colorado Springs Voters Recommendations to Council Public Relations Subcommittee -- Organize public communications -- Organize advertising and public education -- Organize public support of the Subcommittees' and final recommendations Citizens Coordination Committee -- Match size of capital program with funding strategy -- Evaluate funding options -- Prioritize funding options -- Recommend funding options -- Present final list of projects and SCIP financing to City Council and voters -- Recommend how much money should be requested for capital improvements -- Recommend the funding distribution each subcommittee should receive -- Financial oversight of SCIP Council/Voter program Joint presentation with Citizens Coordination Committee of recommendations COMMITTEE VISION Chief of Police Transportation Subcommittee Drainage Subcommittee Parks/Facilities Subcommittee Comm. Enhanc. Subcommittee Public Safety Subcommittee Public Safety Operations Subcommittee Projects Subcommittees -- Ensure equal and maximum participation and cooperation -- Evaluate projects -- Prioritize projects -- Recommend projects for funding -- Review and evaluate Police, Fire and Public Works operations and maintenance needs -- Provide feedback on service levels Staff provides technical support 2004 Budget Page Capital Improvements Program and SCIP

14 2004 CIP FUNDED PROJECT DETAIL The following section contains the 2004 capital projects proposed for funding. Each entry includes a brief project description, proposed solution, and cost estimate. Funded projects are listed by funding source and grouped by project category. Capital Improvements Program and SCIP Page Budget

15 2004 Capital Improvements Funding FINANCIAL COMMITMENTS Ongoing CIP CITY FUNDED PROJECTS Emergency Repair and Maintenance Vendors Fee SCIP Fund SCIP-Public Safety Sales Tax Lottery RESTRICTED USE FUNDS TOPS Grants Fund - TEA-21 CDBG Bike Tax Total Funded Legal Obligations $ 100,000 $ 100,000 Local Improvement Districts $ 125,000 $ 125, SCIP Bond Projects - Debt Retirement $ 7,249,334 $ 600,000 $ 7,849,334 Adult Softball Complex $ 225,000 $ 225,000 Hillside Payback $ 160,000 $ 160,000 Meadows Community Center Payment $ 109,000 $ 109,000 Red Rock Canyon Open Space /5 $ 150,000 $ 1,500,000 $ 1,650,000 Bluestem Prairie/Big Johnson Reservoir Open Space $ 1,356,708 $ 1,356,708 Nor'wood Reimbursement $ 26,700 $ 26,700 Faricy Reimbursement $ 7,515 $ 7,515 Total $ 7,474,334 $ - $ - $ 600,000 $ - $ 644,000 $ 2,856,708 $ - $ - $ 34,215 $ 11,609,257 STATE/FEDERAL MANDATES Ongoing CIP CITY FUNDED PROJECTS Emergency Repair and Maintenance Vendors Fee SCIP Fund SCIP-Public Safety Sales Tax Lottery RESTRICTED USE FUNDS TOPS Grants Fund - TEA-21 CDBG Bike Tax Total Funded ADA Pedestrian Ramps Program $ 242,000 $ 108,000 $ 350,000 Total $ 242,000 $ - $ - $ - $ - $ - $ - $ - $ 108,000 $ - $ 350,000 PUBLIC WORKS MAINTENANCE AND REPAIR Ongoing CIP CITY FUNDED PROJECTS Emergency Repair and Maintenance Vendors Fee SCIP Fund SCIP-Public Safety Sales Tax RESTRICTED USE FUNDS Lottery TOPS TEA-21 CDBG Bike Tax Total Funded Traffic Safety Improvements $ 100,000 $ 100,000 Traffic Signal Acquisition $ 250,000 $ 250,000 Street Resurfacing $ 4,396,014 $ 4,396,014 Local Drainage Repairs/Improvements $ 250,000 $ 250,000 Sidewalk/Curb/Gutter $ 46,745 $ 3,255 $ 50,000 Bijou St. at Shooks Run Bridge $ 19,000 $ 19,000 Costilla St. at Shooks Run Bridge $ 135,000 $ 135,000 Evans Ave. at N. Cheyenne Creek Bridge $ 59,000 $ 59,000 Vincent Dr. at Cottonwood Creek Bridge $ 115,000 $ 115,000 Manor Lane at Cheyenne Creek Bridge $ 37,000 $ 37,000 Cimarron Bridge Repairs $ 617,000 $ 617,000 Essential Annual Bridge Maintenance $ 197,000 $ 197,000 Hancock Ave. at Templeton Gap Floodway Bridge $ 172,000 $ 172,000 Bijou St. at Monument Creek (eastbound) Bridge $ 381,000 $ 381,000

16 2004 Capital Improvements Funding PUBLIC WORKS MAINTENANCE AND REPAIR - Continued El Morro Concrete Ditch at Chelton Rd. Stormwater Drainage Repair & Rehab Candlewood Apartments Channel Stormwater Drainage Repair & Rehab East Fork of Sand Creek Channel Stabilization (Downstream of Powers Blvd), Section 14 USACOE/City Project Shadowglen Dr. Channel Stormwater Drainage Repair & Rehab Rockrimmon / Delmonico Channel Stormwater Drainage Repair & Rehab Shooks Run Channel / Uintah St. Timber Retaining Wall Stormwater Drainage Repair & Rehab Ongoing CIP CITY FUNDED PROJECTS Emergency Repair and Maintenance Fountain Creek Watershed Study (paid by CSU) $ - N. Rockrimmon / Allegheny Drainageway Improvements Stormwater Drainage Repair & Rehab Crack Sealing (Contract) -Streets Essential Maintenance Vendors Fee SCIP Fund SCIP-Public Safety Sales Tax RESTRICTED USE FUNDS Lottery TOPS TEA-21 CDBG Bike Tax Total Funded $ 135,000 $ 135,000 $ 40,200 $ 274,800 $ 315,000 $ 319,000 $ 319,000 $ 70,000 $ 70,000 $ 75,000 $ 75,000 $ 10,000 $ 10,000 $ 190,000 $ 190,000 $ 50,000 $ 50,000 Pothole Patching -Streets Essential Maintenance $ 250,000 $ 250,000 Alley Maintenance -Streets Essential Maintenance $ 300,000 $ 300,000 Concrete Repair -Streets Essential Maintenance $ 450,000 $ 450,000 Drainage Channel Maintenance -Streets Essential Maintenance Stormsewer Maintenance -Streets Essential Maintenance Inverted Siphons (Bubbler Systems) -Streets Essential Maintenance $ 300,000 $ 300,000 $ 183,982 $ 183,982 $ 150,000 $ 150,000 Total $ 5,042,759 $ 3,413,182 $ 962,800 $ - $ - $ - $ - $ - $ 157,255 $ - $ 9,575,996 $ - INFRASTRUCTURE MAINTENANCE Ongoing CIP CITY FUNDED PROJECTS Emergency Repair and Maintenance Vendors Fee SCIP Fund SCIP-Public Safety Sales Tax Lottery RESTRICTED USE FUNDS TOPS Grants Fund - TEA-21 CDBG Bike Tax Total Funded City Facilities Repairs $ 200,000 $ 200,000 Community Center Repairs $ 100,000 $ 100,000 Police Facilities Repairs $ 150,000 $ 150,000 Fire Facilities Repairs $ 175,000 $ 175,000 CIP Emergency Repairs $ - CIP Interest Earnings $ - Total $ 625,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 625,000