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Home My WebLink AboutReg 2022-06-06 Item 7C - Budget - Budget Workshop: Capital ProjectsCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 06/06/22 GL ITEM INFORMATION ITEM No. 7.C. 77 STAFF SPONSOR: HARI PONNEKANTI ORIGINAL AGENDA DATE: 06/06/22 AGENDA ITEM TITLE Budget Workshop: Capital Projects CATEGORY 0 Discussion 06/06/22 ❑ Motion Mtg Date ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date Mtg Date SPONSOR Council ❑Mayor HR DCD Finance Fire TS P&R Police Court IIPUU SPONSOR'S This presentation is a part of the continuing series of budget workships for Council in SUNLMARY preparation for the upcoming budget season. REVIEWED BY ❑ Trans&Infrastructure ❑ CommunitySvs/Safety ❑ Finance Comm. ❑ Planning/Economic Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR/ADMIN. COMMI I IEE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 06/06/22 MTG. DATE ATTACHMENTS 06/06/22 Capital Projects PPT 77 78 BUDGET WORKSHOP -CAPITAL PROJECTS 0 0 WHAT ARE CAPITAL PROJECTS Projects that: Are relatively expensive, have a multi-year useful life, result in capital assets. However, the CIP can also include projects that do not result in a capital asset upon completion but are associated with significant maintenance and repair of existing capital assets. An example of this would be overlay, which the City typically expends in excess of $1 million annually on overlay projects but does not result in a new capital asset. WHAT IS A CAPITAL IMPROVEMENT PROGRAM (CIP) \\\\\\\ \\\ \\ \\ o 0 \ \ \\\\\\\\ \ \ \ , -#‘1=‘\---:- BA Det _ l CIP PLANNING & BUDGETING PROCESS 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 21-22 Budget • 23-24 Budget = m 25-26 Budget PHASES OF A PROJECT FINANCIAL Throu L$rtated (in $000's) 2019 2029 2021 2022 2023 2024 2025 2026 BEYOND TOTAL EXPENSES Egn _ 436 45 4d 50 50 50 676 Land a i 1 , Const. Writ it _ 429 120 1`0E 120 5 50 919 2,419 1.199 1,500 7,009 450 450 6.81 Construction= TOTAL EXPENSES 3,284 1,.265 1.695 1,,170 550 550 [3 0 8.514 FUND SOURCES Awarded Grant 0 PIN Trust Fund 750 150 Mitigation Actual 0 Mitigation Expected 0 t t,trty Revenue 2,53; 1,255 1 695 1,170 550 550 0 0 0 7 764 TOTAL SOURCES 3.284 1,265 1.695 1,170 550 550 0 0 0 8,514 Ak SAMPLE CIP PAGE 111 PROJECT: Macadam Rd S Water Upgrade F-T-Ae. No 74:440105 DESCRIPTION: Desd-, and .s,-ut--.., 4_7511 LF c,-' 1' «trhne n Mazadam Rd 3 from S 144th a t, acK_--,,nw 1.)c JUSTW1CATION: tlor-,ve ,9reftv VA:iff quaky to the -r aCa',- 17-,Aw la Hill. STATUS.: .-ro,,ect now s:heduled The rFFN w,1*<= -mill e5-71:_ ma-_-.Ie-ce tkne - flu .-htlg. the oead end Z --.-,le while inoreasglg w MAW IMPACT: _ .51y COMMENTeoer R .1 i gram 5:4- sedeergls unsweessful in MI 3_1.0th w ftrds um -d m a rnar&-, FENANCIAL Through Estimated 01 SON's) 2419 2 2t121 2422 2023 2Q25 2028 BEYOND TOTAL EXPENSES Design C,,-,st-Lion TOTAL EXPENSES 0 laa MD 650 ...z., KC ,tSt EC kr-C 1,3M 0 XS I_E-,tC 2,4111 rj ND 30 LES Avwdec arant PropoK--d &ant tgatan P--i_Jal Mtgatien Ey-pE---led attyReverr, TOTAL SOURCES ,,,4- 68 0 1 Adopted budget 450 *a) 650 ,tSt 1:302 1,511 0 1 , 01 C 0 1 .--z .3 -3 C5 2_41S 14111 ,r.....0-0 - LO _ — 1 - . . _ . . ' _ 1'41 2---- •! -AA ''''''C ' Financial factors Grant availability; Fund balance; Cost versus benefit OD 01 GENESIS OF CIP PROJECTS FACTORS THAT WE MAY CONSIDER, DEPENDING ON THE PROJECT Maintenance feedback Subject matter experts in the field everyday Continue Existing CIP Existing projects carry over year-to-year Public feedback Part of planning and design process Effectiveness Mandates Alignment with City mission and values Meet new requirements or law (comp plans, etc.) \` Timing/ Urgency Project readiness; linkage to other high priority projects Scaling Level of Service Engineer availability; Right project at this time HOW WE FUND CAPITAL PROJECTS - GENERAL FUND Traffic impacts fees Concurrency fees Solid waste utility tax Franchise fees Land sales Grants Bonds (dedicated revenues) City's General Fund HOW WE FUND CAPITAL PROJECTS - GRANTS Definition of a grant Federal vs. non-federal grants Grant eligibility and restrictions Grant match requirements Types of projects funded by grants in Tukwila H OW WE FUND CAPITAL PROJECTS FACILITY IMPROVEMENTS FUNDS 303, 305, & 306 Voter -approved bonds Councilmanic bonds General fund Grants �x�� FUND CAPITAL PROJECTS �� U� -- ENTERPRISE NTERPRUSE FU UNDS O Utility �Revenue — O Grants o Bonds Section 7. Enterprise Funds a. Utility fund expenditures shall be fully supported by their own nates, fees, and charges and notsubsidized by the General Fund. b. Utility rates should be structured to ensure adequate infrastructure development and replacement. c. Each Enterprise Fund shall be reviewed bi+snnuaUvto ensure a rate structure adequate to meet its opensWono, maintenance, and long-term capital requirements. d. Enterprise Fund rate increases shall be small, applied frequently, and staggered to avoid an overly burdensorne increase and undue impactin any given year. e. Enterprise Fund rate increases of external agencies will be passed through to the customer. f. Infrastru ctu re improvements such as water reu se should considerconservation of resources such as wator and electricity. CIP EXPENDITURES OVER TIME IN BIENNIAL BUDGETS FIRST TWO YEARS OF ADOPTED CIP 202I=2026 CIP 2017-2022 CIP Capital expenditures can vary greatly, depending on funding, needs, & council priorities 7 ential Streets es & Arterial Streets Parks ban Rene- General Government ▪ Public .Safety • City Facilities • Water to • Sewer • -Ice 'der • Foster Golf 2019-2024 CIP 2015-2020 CIP HOW WE FUND CAPITAL PROJECTS - 2021 -2026 C I P ATA -G LAN C E FIRST TWO YEARS OF ADOPTED CIP Residential Streets Bridges & Arterial Streets = Total: $IO.IM Surface Water Parks Public Safety Total: $ 10.7M Water & Sewer Grants "General Fund Enterprise Funds GENERAL FUND VS ENTERPRISE FUND PROJECTS • Residential Streets (103 Fund) • Bridges & Arterial Streets (104 Fund) • Parks & Recreation (301 Fund) • Urban Renewal (302 Fund) • Facility Improvements (303 Fund) • Public Safety Plan (305 & 306 Fund) • Water (401 Fund) • Sewer (402 Fund) • Foster Golf Improvements (411 Fund) • Surface Water (412 Fund) IMPACT ON THE OPERATING BUDGET Projects have ongoing financial impacts New personnel Ongoing maintenance Utility needs For example, if the City were to construct a new park, the operating budget would either increase to accommodate additional staffing and supplies or existing staffing and supplies would remain at the same level but be required to be spread across more parks. TYPES OF PROJECTS Annual projects Studies Design Construction Facility projects QUESTIONS?