Infrastructure and Capital Projects Planning and Funding

Infrastructure and Capital Projects Planning and Funding September 6, 2018

Preview of FY 2020 2024 CIP process Why are we here? Overview Current Assets Overview and Highlights of Adopted FY 2019 2023 CIP Council to Provide Preliminary Direction for FY 2020 2024 CIP 2

New Asset Team to begin analyzing enterprise capital assets for more accurate prioritization of needs Development of revised Capital Projects viewer for more timely and engaging reporting FY 2020 CIP Process changes Establish decision making criteria (details on next slide) Divide the decision making process into three categories Maintain existing assets, Enhance existing assets, and New City Council Tour of City assets (if there is Council interest) Consider departmental prioritizations Staff training and engagement through small group discussions 3

Does the project directly addresses a current legal mandate? GOAL 1: An Inclusive Community of Self sufficient Residents Does the project address or contribute to workforce development, affordable housing, or issues of race and equity? GOAL 4: A Strong, Creative and Diversified Economy Does the project encourage increased economic development in the City s corridors? Evaluation Criteria Does the project directly addresses one or more of the City Strategic Plan Measures or Initiatives? GOAL 2: A Healthy and Safe City Does the project fully eliminate or prevent an existing health, environmental, or safety hazard? Does the project reduce operational costs or generate new revenue? Does the project improve or increase the level of service provided by the City? GOAL 3: A Beautiful and Sustainable Natural and Built Environment Does the project improve or maintain the City s existing infrastructure? GOAL 5: A Well managed and Responsive Organization Does the project leverage outside funding (e.g., from grant, state, federal, other governmental)? 4

Departments Sep 24: Department requests due to Budget Office. Oct 2 to Oct 30: City Manager Small Group Meetings Nov 6: Preliminary CIP Development discussion FY 2020 2024 CIP Process and Timeline Planning Commission Dec 18: Planning Commission considers Proposed FY 2020 2024 CIP Jan 8: Planning Commission public hearing on Proposed FY 2020 2024 CIP; Planning Commission approves CIP, and the CIP along with the Planning Commission Recommendations, are forwarded to the City Manager s Office for inclusion in the FY 2020 Manager s Proposed Budget. City Council March 4: Final FY 2020 2024 Proposed CIP presented to Council as part of the FY 2020 Proposed Budget. 5

FY 2017 Capital Asset Statistics General Government Miles of streets 158.45 Number of streetlights 6,070 Government building square footage 728,184 Linear feet of sidewalk 46,183 Vehicles and Pieces of Equipment 486 Public Safety Fire protection: Number of stations 3 Number of fire apparatus 11 Number of Support Vehicles 25 Police protection: Number of stations 8 Number of vehicular patrol units 64 Total vehicles 128 Motor Cycles 8 Unmarked cars 53 Bicycle patrol 14 Education Number of school campuses 10 School building square footage 793,305 Parks, Recreation, & Culture Number of parks 36 Acres of park land 900 Number of golf courses 1 Number of swimming pools 4 Number of recreation centers 5 Number of libraries 3 Public Utilities Gas: Miles of gas main lines 330 Miles of gas service lines 270 Water: Water treatment plant capacity (millions of gallons per day) 19 MGD Miles of water lines 180 Number of fire hydrants 1,050 Sewer: Sewer treatment plant capacity (millions of gallons per day) 15 Miles of sanitary sewers 170 6

34% Transfer from General Fund Transfer from CIP Contingency FY19 FY23 Sources of CIP Projects 62% 0% 1% 0% 1% 2% Contribution from Albemarle County (CATEC) Contribution from Albemarle County (Central and Gordon Ave. Library) Contribution from Schools (Small Cap Program) PEG Fee Revenue Debt Issuance Adopted FY19 Projected FY20 Projected FY21 Projected FY22 Projected FY23 5 Year Total Transfer from General Fund $5,374,766 $7,824,766 $8,074,766 $8,324,766 $8,574,766 $38,173,830 Transfer from CIP Contingency 2,200,000 0 0 0 0 2,200,000 Contribution from Albemarle County (CATEC) 75,000 75,000 500,000 90,000 62,500 802,500 Contribution from Albemarle County (Central and Gordon 137,500 175,000 0 0 0 312,500 Ave. Library) Contribution from Schools (Small Cap Program) 200,000 200,000 200,000 200,000 200,000 1,000,000 PEG Fee Revenue 47,500 47,500 47,500 47,500 47,500 237,500 Debt Issuance 15,367,176 19,785,031 19,734,603 10,457,582 5,178,174 70,522,567 TOTAL AVAILABLE SOURCES $23,401,942 $28,107,297 $28,556,869 $19,119,848 $14,062,940 $113,248,896 7

2% 2% 13% 15% 1% 1% 5% 1% 12% EDUCATION ECONOMIC DEVELOPMENT PUBLIC SAFETY AND JUSTICE FACILITIES CAPITAL PROJECTS TRANSPORTATION & ACCESS PARKS & RECREATION FY19 FY23 Uses of CIP Proceeds 41% Adopted FY19 Projected FY20 7% Projected FY21 STORMWATER INITIATIVES TECHNOLOGY INFRASTRUCTURE AFFORDABLE HOUSING (CAHF) PUBLIC HOUSING REDEVELOPMENT OTHER GOVERNMENTAL PROJECTS Projected FY22 Projected FY23 5 Year Total EDUCATION $2,913,090 $2,961,483 $3,011,327 $3,062,667 $3,115,547 $15,064,114 ECONOMIC DEVELOPMENT 150,000 150,000 150,000 150,000 150,000 750,000 PUBLIC SAFETY AND JUSTICE 1,641,207 7,622,918 4,652,987 0 0 13,917,112 FACILITIES CAPITAL PROJECTS 2,065,491 1,345,491 1,845,491 1,345,491 1,345,491 7,947,455 TRANSPORTATION & ACCESS 9,001,965 10,044,032 13,621,275 9,525,800 4,412,436 46,605,508 PARKS & RECREATION 2,669,161 872,345 829,085 589,186 592,762 5,552,539 STORMWATER INITIATIVES 125,000 125,000 125,000 125,000 125,000 625,000 TECHNOLOGY INFRASTRUCTURE 147,500 297,500 297,500 297,500 297,500 1,337,500 AFFORDABLE HOUSING (CAHF) 3,399,204 3,399,204 3,399,204 3,399,204 3,399,204 16,996,020 PUBLIC HOUSING REDEVELOPMENT 500,000 500,000 500,000 500,000 500,000 2,500,000 OTHER GOVERNMENTAL PROJECTS 789,324 789,324 125,000 125,000 125,000 1,953,648 TOTAL USES $23,401,942 $28,107,297 $28,556,869 $19,119,848 $14,062,940 $113,248,896 8

What are Council s main priorities? Existing CIP projects Affordable Housing/Public Housing Redevelopment $50M to $120M City Schools Capacity $95M to $140M Others 9

How much debt capacity does the City have? The City currently has $85.2 million of general obligation bonds outstanding ($131 million including bonds issued for the utilities) The City has established a debt policy guideline of maintaining a debt service to operating expenditure ratio below a ceiling of 10% with a goal of 9%. This policy is important from the rating agencies perspective. 10

The FY19 Adopted CIP plans for the City to add $70.5M in additional debt over the next 5 years. Financial Impacts of FY19 CIP With it s approval commitments have already been made to: annual debt service increases of more than $700k per year Projections show that the debt and financial policies will be stretched to the limits by the fifth year of FY2023 Significant CIP spending decreases have been planned beginning in FY2023 Larger Project Commitments Anything added to the FY19 plan will require Council Commitment Additional Revenue or significant Expenditure Cuts will be needed Requires raising revenues Tax increases Significantly cutting costs Prioritizing or Re Prioritizing 11

Larger Projects Already funded Affordable Housing $19.5m In FY 19, funding for the Charlottesville Affordable Housing Fund increased by $900,000, to a total of $3.4 million. In FY 19, Public Housing Redevelopment to receive $500,000 to begin to set aside funding for the future redevelopment of the City s public housing sites. General District Court $6.4m Joint City/County General District Court facility located in the Levy Building location. Parking Structure $10.0m Funding for the purpose of constructing a new parking garage facility. Funds could be used for land acquisition, planning and design and construction of the facility. West Main $10.25m To implement the West Main Streetscape Plan. Includes underground utilities, wider sidewalks, trees, street furniture. Schools Projects $15.1m In FY 19, $2.61 million to the City schools for various capital improvements including Buford building envelope restoration and auditorium improvements; Clark restroom renovations; Walker auditorium improvements; and Interior Painting System wide; and a transfer of $110,000 to the schools small cap program. This funding also provides for the schools HVAC replacement plan, as well as new funding of $1.0 million for Charlottesville City Schools priority improvement projects. 12

FY2019 Debt Projection CIP CIP Debt Issuance Delayed One Year FY19 CIP Current Plan Fiscal Year Proposed Bond Issue Total Debt Service (1) General Fund Expenditure Budget (2) Ratio of Debt Service to Total General Fund Expenditures General Fund Transfer $ Increase % Increase Debt Service Fund Balance 2015 $23,068,366 $ 9,011,416 $ 150,742,327 5.98% $ 8,542,977 $ - - $ 11,606,401 2016 11,125,466 9,128,798 156,391,435 5.84% 9,279,578 736,601 8.62% 11,962,480 2017 11,140,000 10,103,067 162,018,737 6.24% 9,817,330 537,752 5.80% 11,880,013 2018 4,610,000 10,667,156 171,657,127 6.21% 10,371,750 554,420 5.65% 11,752,935 2019 38,884,482 10,331,886 179,725,535 5.75% 10,924,263 552,513 5.33% 12,503,758 2020 15,367,176 13,392,972 182,421,418 7.34% 11,647,898 723,635 6.62% 10,906,361 2021 19,785,031 14,128,606 185,157,739 7.63% 12,371,769 723,871 6.21% 9,286,171 2022 19,734,603 15,437,720 187,935,105 8.21% 13,095,879 724,110 5.85% 7,080,978 2023 10,467,582 17,074,723 190,754,132 8.95% 13,820,230 724,351 5.53% 3,963,132 2024 5,178,174 17,325,101 193,615,444 8.95% 14,544,824 724,594 5.24% 1,182,855 2025 7,500,000 16,317,256 196,519,676 8.30% 15,269,664 724,840 4.98% 135,263 2026 7,500,000 16,130,080 199,467,471 8.09% 15,994,753 725,089 4.75% (63) Strengths 9% Target Met No required tax increase Assumes moderate General Fund growth of 1.5% Weaknesses Debt Service increases by more than $700k per year Assumes significantly reduced CIP spending in future years 13

$20M added in FY2020 CIP Debt Issuance Delayed One Year $20M Bond in FY 20 General Fund Expenditure Budget (2) Ratio of Debt Service to Total General Fund Expenditures General Fund Transfer $ Increase Planned with Adopted FY19 CIP Debt Service Fund Balance Fiscal Proposed Total Debt % Year Bond Issue Service (1) Increase 2015 $23,068,366 $ 9,011,416 $ 150,742,327 5.98% $ 8,542,977 $ - - $ 11,606,401 2016 11,125,466 9,128,798 156,391,435 5.84% 9,279,578 736,601 8.62% 11,962,480 2017 11,140,000 10,103,067 162,018,737 6.24% 9,817,330 537,752 5.80% 11,880,013 2018 4,610,000 10,667,156 171,657,127 6.21% 10,371,750 554,420 5.65% 11,752,935 2019 38,884,482 10,331,886 179,725,535 5.75% 10,924,263 552,513 5.33% 12,503,758 2020 35,367,176 13,392,972 182,421,418 7.34% 11,647,898 723,635 6.62% 10,906,361 2021 19,785,031 15,828,606 185,157,739 8.55% 12,371,769 723,871 6.21% 7,586,171 2022 19,734,603 17,102,720 187,935,105 9.10% 13,095,879 724,110 5.85% 3,715,978 2023 10,467,582 18,704,723 190,754,132 9.81% 13,820,230 724,351 5.53% (1,031,868) 2024 5,178,174 18,920,101 193,615,444 9.77% 14,544,824 724,594 5.24% (5,407,145) 2025 7,500,000 17,877,256 196,519,676 9.10% 15,269,664 724,840 4.98% (8,014,737) 2026 7,500,000 17,655,080 199,467,471 8.85% 15,994,753 725,089 4.75% (9,675,063) Strengths Exceeds 9% Target, but still within 10% Policy Weaknesses Requires $1M+ per year in additional funds to cover the Debt Service Increases Assumes significantly reduced CIP spending in future years 14

$50M added in FY2020 CIP Debt Issuance Delayed One Year $50M Bond in FY 20 General Fund Expenditure Budget (2) Ratio of Debt Service to Total General Fund Expenditures General Fund Transfer $ Increase Planned with Adopted FY19 CIP Debt Service Fund Balance Fiscal Proposed Total Debt % Year Bond Issue Service (1) Increase 2015 $23,068,366 $ 9,011,416 $ 150,742,327 5.98% $ 8,542,977 $ - - $ 11,606,401 2016 11,125,466 9,128,798 156,391,435 5.84% 9,279,578 736,601 8.62% 11,962,480 2017 11,140,000 10,103,067 162,018,737 6.24% 9,817,330 537,752 5.80% 11,880,013 2018 4,610,000 10,667,156 171,657,127 6.21% 10,371,750 554,420 5.65% 11,752,935 2019 38,884,482 10,331,886 179,725,535 5.75% 10,924,263 552,513 5.33% 12,503,758 2020 65,367,176 13,392,972 182,421,418 7.34% 11,647,898 723,635 6.62% 10,906,361 2021 19,785,031 18,378,606 185,157,739 9.93% 12,371,769 723,871 6.21% 5,036,171 2022 19,734,603 19,600,220 187,935,105 10.43% 13,095,879 724,110 5.85% (1,331,522) 2023 10,467,582 21,149,723 190,754,132 11.09% 13,820,230 724,351 5.53% (8,524,368) 2024 5,178,174 21,312,601 193,615,444 11.01% 14,544,824 724,594 5.24% (15,292,145) 2025 7,500,000 20,217,256 196,519,676 10.29% 15,269,664 724,840 4.98% (20,239,737) 2026 7,500,000 19,942,580 199,467,471 10.00% 15,994,753 725,089 4.75% (24,187,563) Strengths N/A Weaknesses Exceeds 9% Target and 10% policy Would require something in excess of $2M+ per year in additional funds to cover the Debt Service Increases Assumes significantly reduced CIP spending in future years A General Fund budget of $220 million would be necessary to maintain the 9% target in FY2021 15

Financial Impact of Bonds 1. Every bond issued creates additional expense for the City. 2. Annual debt service for 20 years 3. Every $1 of debt must stand up to established financial policies. As expenses increase so do the cost of maintaining those policies. $50 million equates to approximately $4M in first year debt service This would result in $0.08 cent tax increase given current arrangement with schools (assuming revenue comes from re tax or you would need to find other revenue sources or cut expenditures) Are there any operation cost impacts to budget resulting from the project? Because of the significant impact on the City s outstanding debt burden, the rationale behind the project will be very important to citizens and rating agencies (need firm plan that clearly documents City benefits, project cost, future costs, etc.) 16

How will we pay for the increased debt service? To the extent that the City decides to move forward either with the projects identified in the CIP or new projects, the City will need to find new sources of funds to pay the increase in annual debt service. Potential new sources include the following: Increases in Local Tax Rates Private Sector (public private partnerships, equity investments, concession arrangements, etc.) Cuts in General Fund/Department Budgets Cuts/Reprioritization of Adopted CIP 17

Revenue/ $0.01 Tax Rate Revenue Type Amount Increase Increases in Local Tax Rates $ 0.95 / 100 Real Estate Tax $0.01 $718,604 $0.05 Meals Tax $0.01 $2,363,475 $ 4.20 / 100 Property Tax $0.01 $20,546 $0.06 Lodging Tax $0.01 $850,000 $0.55 Cigarette Tax $0.01 $13,182 18

Adopted FY 2019 2023 CIP Summary $113.2m funded projects $39.5m maintain projects $32.4m improve projects $41.4m new projects $108.8m unfunded projects $38.5m authorized but not issued projects These authorized but not issued bonds along with the bonds planned in the current CIP determine the City s existing debt capacity Previously authorized projects may no longer be necessary 19

FY 2019 2023 CIP: Maintain Maintain Level of Service/Asset Adopted Projected Projected Projected Projected 5 Year Funded in FY19-23 CIP FY19 FY20 FY21 FY22 FY23 Total Street Milling and Paving 1,577,838 1,625,173 1,673,928 1,724,146 1,775,870 8,376,955 Lump Sum to Schools (City Contribution) 1,109,162 1,142,437 1,176,710 1,212,011 1,248,371 5,888,691 Lump Sum to Facilities Capital Projects 1,045,491 1,045,491 1,545,491 1,045,491 1,045,491 5,727,455 Replacement Fire Apparatus 1,298,586 684,904 1,471,973 - - 3,455,463 City Schools HVAC Replacement 503,928 519,046 534,617 550,656 567,176 2,675,423 Sidewalk Repair 424,360 437,091 450,204 463,710 477,621 2,252,986 School Small Capital Improvements Program 300,000 300,000 300,000 300,000 300,000 1,500,000 ADA Pedestrian Signal Upgrades 240,000 240,000 240,000 240,000 240,000 1,200,000 Minor Bridge Repairs 212,180 218,545 225,101 231,854 238,810 1,126,490 City Facility HVAC Replacement 200,000 200,000 200,000 200,000 200,000 1,000,000 Parks and Recreation Lump Sum Account 200,000 200,000 200,000 200,000 200,000 1,000,000 Right of Way Appurtenance 150,000 154,500 159,135 163,909 168,826 796,370 City/County Joint Parks - Darden Towe 427,988-193,370 - - 621,358 State Bridge and Highway Inspections 121,137 121,137 121,137 121,137 121,137 605,685 Parks and Schools Playground Renovations 109,073 112,345 115,715 119,186 122,762 579,081 Intelligent Transportation System 97,850 100,786 103,810 106,924 110,132 519,502 CAT Transit Bus Replacement Match 4,600 122,800 112,960 119,120 50,040 409,520 Police Portable Radio Replacement 342,621 - - - - 342,621 Urban Tree Preservation and Planting 50,000 50,000 75,000 75,000 75,000 325,000 City/County Joint Parks - Ivy Creek 292,100 20,000 - - - 312,100 Pen Park Tennis Court Renovations 295,000 - - - - 295,000 Washington Park Basketball Court Renovations 150,000 - - - - 150,000 Refurbish Parks Restrooms 50,000 50,000 50,000 - - 150,000 Downtown Mall Tree Preservation Planning 100,000 - - - - 100,000 Police Entry Canopy and Lobby Renovation - Design - 57,000 - - - 57,000 SUBTOTAL 9,301,914 7,401,255 8,949,151 6,873,144 6,941,236 39,466,700 20

Unfunded: Maintain Maintain Level of Service/Asset Adopted Projected Projected Projected Projected 5 Year Unfunded Requests FY19 FY20 FY21 FY22 FY23 Total School HVAC Critical Backlog 1,700,000 2,000,000 2,400,000 - - 6,100,000 Dairy Road Bridge Replacement 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000 Traffic Signal Infrastructure Replacement 500,000 510,000 520,200 530,604 541,216 2,602,020 Street Reconstruction (Milling and Paving) 422,162 434,827 447,872 461,308 475,148 2,241,317 Parks and Recreation Lump Sum 200,000 200,000 200,000 200,000 200,000 1,000,000 Downtown Mall Infrastructure Repairs 150,000 150,000 150,000 150,000 150,000 750,000 Traffic Sign Retro-Reflective Compliance 130,000 200,000 200,000 - - 530,000 Downtown Mall Tree Active Lifecycle 100,000 100,000 100,000 100,000 100,000 500,000 Police Department Entry /Canopy and Lobby Renovations - - 475,000 - - 475,000 Wayfinding 100,000 50,000 100,000 50,000 100,000 400,000 Onesty Family Aquatic Center Play Structure Replacement - 350,000 - - - 350,000 City Building HVAC Replacement 50,000 57,500 65,225 73,182 81,378 327,285 Crow Rec Center ADA Renovations 150,000 - - - - 150,000 Washington Park Pool Shade Structure Replacement 100,000 - - - - 100,000 SUBTOTAL 4,602,162 5,052,327 5,658,297 2,565,094 2,647,742 20,525,622 21

FY 2019 2023 CIP: Improve Improvement of Current Assets/ Adopted Projected Projected Projected Projected 5 Year Increased Level of Service Funded in FY19-23 CIP FY19 FY20 FY21 FY22 FY23 Total Charlottesville Affordable Housing Fund 3,399,204 3,399,204 3,399,204 3,399,204 3,399,204 16,996,020 CCS Priority Improvement Projects 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000 Undergrounding Utilities 1,300,000 1,700,000 1,430,000 - - 4,430,000 Bicycle Infrastructure 200,000 200,000 200,000 200,000 200,000 1,000,000 Citywide ADA Improvements - Sidewalks and Curbs 150,000 150,000 150,000 150,000 150,000 750,000 City Wide Traffic Engineering Improvements 150,000 150,000 150,000 150,000 150,000 750,000 Neighborhood Drainage Projects 125,000 125,000 125,000 125,000 125,000 625,000 Home Energy Conservation Grant Program 125,000 125,000 125,000 125,000 125,000 625,000 Avon Street Filling Station Replacement 520,000 - - - - 520,000 City and Schools Solar PV Program 100,000 100,000 100,000 100,000 100,000 500,000 Neighborhood Transportation Improvements 50,000 50,000 50,000 50,000 50,000 250,000 NDS Permit Tracking Software Replacement 250,000 - - - - 250,000 Communications Technology Account/Public Access 47,500 47,500 47,500 47,500 47,500 237,500 4th Street Yard Fuel Tank Replacement 200,000 - - - - 200,000 Downtown Pedestrian Intersection Lighting 94,000 94,000 - - - 188,000 Cultural Landscape Study 50,000 - - - - 50,000 SUBTOTAL 7,760,704 7,140,704 6,776,704 5,346,704 5,346,704 32,371,520 22

Unfunded: Improve Improvement of Current Assets/ Adopted Projected Projected Projected Projected 5 Year Increased Level of Service Unfunded Requests FY19 FY20 FY21 FY22 FY23 Total Central Library Renovation - 761,248 11,367,634 - - 12,128,882 CCS Priority Improvement Projects 500,000 1,250,000 1,250,000 900,000 500,000 4,400,000 Citywide ADA Improvements - Sidewalks and Curbs 150,000 150,000 150,000 150,000 150,000 750,000 NDS Fee Schedule Updates 500,000 - - - - 500,000 Parks Lighting Replacement 75,000 75,000 75,000 75,000 75,000 375,000 Green Infrastructure Opportunities 75,000 75,000 75,000 75,000 75,000 375,000 Crow Pool ADA Renovation 30,000 300,000 - - - 330,000 Carver Recreation Center Office Expansion/Renovation - - 300,000 - - 300,000 Traffic Engineering Improvements 53,054 56,145 59,330 62,610 65,514 296,653 Forest Hills Spray Pad Shade Structure - 250,000 - - - 250,000 Key Rec Center Restroom/Locker Room Upgrades - - 250,000 - - 250,000 Meadowcreek Golf Course - Cart Trail Repaving 50,000 50,000 50,000 50,000 50,000 250,000 Meadowcreek Golf Course - Irrigation System Renovations 50,000 50,000 50,000 50,000 50,000 250,000 Meadowcreek Golf Course - Bunker Renovations 200,000 - - - - 200,000 Historic Preservation Program - Historic Surveys 50,000-50,000-50,000 150,000 Meadowcreek Golf Course - Tee Box Leveling 75,000 - - - - 75,000 Meadowcreek Golf Course - Exterior Lighting 75,000 - - - - 75,000 Installation Police Investigation Interview Room Video System 37,000 - - - - 37,000 SUBTOTAL 1,920,054 3,017,393 13,676,964 1,362,610 1,015,514 20,992,535 23

FY 2019 2023 CIP: New New Assets or Services Adopted Projected Projected Projected Projected 5 Year Funded in FY19-23 CIP FY19 FY20 FY21 FY22 FY23 Total West Main Improvements 3,250,000 4,000,000 3,000,000 - - 10,250,000 Parking Structure - - 4,875,000 5,125,000-10,000,000 General District Court - 3,181,014 3,181,014 - - 6,362,028 Bypass Fire Station - 3,700,000 - - - 3,700,000 Public Housing Redevelopment 500,000 500,000 500,000 500,000 500,000 2,500,000 New Sidewalks 380,000 380,000 380,000 380,000 380,000 1,900,000 SIA Immediate Implementation 250,000 250,000 250,000 250,000 250,000 1,250,000 Senior Center at Belvedere 600,000 600,000 - - - 1,200,000 City Wide IT Strategic Infrastructure 100,000 250,000 250,000 250,000 250,000 1,100,000 Tonsler Park Master Plan Implementation 750,000 - - - - 750,000 Economic Development Strategic Initiatives 150,000 150,000 150,000 150,000 150,000 750,000 Trails and Greenway Development 100,000 100,000 100,000 100,000 100,000 500,000 Parkland Acquisition 95,000 95,000 95,000 95,000 95,000 475,000 Small Area Plans 50,000 50,000 50,000 50,000 50,000 250,000 Riverview Park Restroom - 245,000 - - - 245,000 PVCC Advanced Technology Center 64,324 64,324 - - - 128,648 Meadowcreek Valley Trail Railroad Tunnel - Design 50,000 - - - - 50,000 SUBTOTAL 6,339,324 13,565,338 12,831,014 6,900,000 1,775,000 41,410,676 24

Unfunded: New New Assets or Services Adopted Projected Projected Projected Projected 5 Year Unfunded Requests FY19 FY20 FY21 FY22 FY23 Total West Main Street Improvements 1,250,000 6,250,000 5,000,000 5,000,000 5,000,000 22,500,000 Ridge Street Fire Station - Redevelopment - - 785,000 10,100,000-10,885,000 Friendship Court Infrastructure 2,000,000-2,000,000-2,000,000 6,000,000 Washington Park Rec Center Expansion 500,000 4,750,000 150,000 - - 5,400,000 McIntire Park Master Plan Implementation 2,500,000 2,500,000 - - - 5,000,000 SIA Infill Sidewalk Construction 1,700,000-3,200,000 - - 4,900,000 Tonsler Park Master Plan Implementation - 3,000,000 380,000 380,000 380,000 4,140,000 Undergrounding Utilities - 1,670,000 400,000 - - 2,070,000 SIA Property Acquisition 1,500,000 - - - - 1,500,000 Meadowcreek Valley Trail Railroad Tunnel - - 1,000,000 - - 1,050,000 Parkland Acquisition 155,000 155,000 155,000 155,000 155,000 775,000 GIS - Centric Enterprise System 225,000 275,000 175,000 75,000-750,000 Trails and Greenway Development 100,000 100,000 100,000 100,000 100,000 500,000 Yorktown Drive Sidewalk 96,800 96,800 96,800 96,800 96,800 484,000 Blight and Code Enforcement Fund 150,000 50,000-50,000-250,000 Parks Master Planning - 25,000 25,000 25,000 25,000 100,000 SUBTOTAL 10,176,800 18,871,800 13,466,800 15,981,800 7,756,800 66,304,000 25

Details on Authorized but Not Issued The City s currently has $38.5 million in authorized but unissued bonds for projects that have not yet begun These authorized but not issued bonds along with the bonds planned in the current CIP determine the City s existing debt capacity Previously authorized projects may no longer be necessary 26

What are Council s main priorities? Existing CIP projects Affordable Housing/Public Housing Redevelopment $50M to $120M City Schools Capacity $95M to $140M Anything else? 27

www.charlottesville.org/budget Budget Information Access Worksession and Budget Development Information 28

Appendix Financial and Budgetary Policies 29

Bond Funded Projects in the CIP Council designated $75.4 million of projects in the FY19 FY23 CIP as Bondable Projects. The current CIP anticipates the sale of $70.5 million in bonds while funding the remaining bondable projects with cash In addition, the City has previously authorized but not yet issued ( ABNI ) bonds for $38.5 million Authorized But Unissued Adopted FY19 Projected FY20 Projected FY21 Projected FY22 Projected FY23 5-Year CIP Total Total Including ABNI EDUCATION $5,604,288 $2,613,090 $2,661,483 $2,711,327 $2,762,667 $2,815,547 $13,564,114 $19,168,402 FACILITIES CAPITAL PROJECTS 9,667,973 2,065,491 1,345,491 1,845,491 1,345,491 1,345,491 7,947,455 17,615,428 PUBLIC SAFETY & JUSTICE 2,780,560 1,641,207 7,622,918 4,652,987 0 0 13,917,112 16,697,672 TRANSPORTATION & ACCESS 15,188,078 7,141,838 8,339,173 11,898,928 7,769,146 2,695,870 37,844,955 53,033,033 PARKS & RECREATION 5,290,000 1,915,088 20,000 193,370 0 0 2,128,458 7,418,458 TOTAL USES $38,530,899 $15,376,714 $19,989,065 $21,302,103 $11,877,304 $6,856,908 $75,402,094 $113,932,993 30

Key Financial Policies Maintain a debt service to operating expenditures ratio below a ceiling of 10% with a goal of under 9% 15.0% 10.0% General Fund Debt Service as a % of Expenditures Outstanding Debt Ratio 5.0% 0.0% 15.0% 10.0% 5.0% 6.1% 5.7% 5.4% 5.1% 4.8% 4.7% 4.3% 4.0% 3.4% 3.2% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 6.1% 7.2% 7.3% 6.9% Existing City Debt Service Policy Target General Fund Debt Service as a % of Expenditures Including Authorized but Unissued Debt 6.5% 6.3% 5.9% 5.5% 4.9% 4.6% 0.0% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Existing City Debt Service Authorized But Unissued Debt Service Policy Target 31

12.0% 10.0% Projected Debt Ratio with Approved FY19 CIP 8.0% 6.0% 4.0% 2.0% 0.0% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Existing City Debt Service Authorized But Unissued Debt Service CIP Debt Service Policy Target Notes: (1) Authorized But Unissued Debt Service issued on 7/1/18 (FY19) @ 4.0% interest, structured with equal principal payments. (2) CIP projects issued in the Fiscal Year denoted on slide 3 @ 4.0% interest, structured with equal principal payments. (3) Assumes General Fund Budget increases of 1.5% annually. 32

Although the FY19 CIP fits within the City s debt policy limits, it is important to note that once all the planned debt for those projects has been issued, there is almost $8 million that will need to be incorporated into future City budgets to pay the debt service on the projects already approved. Debt Service Impacts of FY19 Approved CIP 20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 Annual Debt Service 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Existing Debt Service New Debt Service 33