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Home My WebLink AboutWS 2024-11-04 Item 3A - 2025-2026 Biennial Budget - 6-Year Capital Improvement Program (2025-2030)-I. Budget Overview & Capital Planning • Capital Planning and Funding • 2025-26 Capital Project Overview • Key Policy Questions City of Tukwila 2025-26 Budget Development 2 Capital Improvement Program Overview ▪ Six (6) Year Capital Improvement Program (CIP) • priority investments in infrastructure and facilities • Reviewed and updated every 2 years ▪ The CIP is fiscally constrained: projects must have funding identified to be included in the CIP Capital Budget = Reflects the first 2 years of the CIP Revenue sources include grants, impact fees, taxes restricted to capital projects (e.g. Real Estate Excise Tax), and bond proceeds. Very little General Fund revenues (except for debt service repayment) are used to fund capital projects. rirftf,RflrTtlft-ly!-rTF!a-t.Ni-g-v City of Tukwila 2025-26 Budget Development CA) CIP Planning Process 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 City of Tukwila 2025-26 Budget Development 4 What's in a CIP? CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2025 to 2030 STATUS FINANCIAL (in thousands) Project Costs iPro/sot Marta (Staff Tinie/Cost) Design Land (R/W) _Construction Planet, _Construction Contingency Total Project Costs Project Funding Proposed Grant Dedicated/Restricted Rev iFond Balance Utility Revenues Genera) Fund Transfer Total Project Funding 040 2025 2026 2027 2028 2029 2030 Beyond TOTAL 15 600 300 $ 21 $ - $ - $ 1,530 $ 9,960 $ 1,270 ESEESIE111111111EMEN131111111EMIN I 1111 $ 400 $ 8,650 $ 500 $ . $ 15 $ 21 $ - $ - $ 1,690 $ 2,420 EMINIEW511=1111ENESIIMEI $ 36 $ 1,275 $ 300 $ 1,530 $ 9,960 $ 1,270 $ 14,371 9,050 1,175 36 1,690 2,420 $ 14,371 Project design, land acquisition, construction costs and the projected means of financing are integral. components of this ptan. • Estimated overall cost of each project • Estimated operational and maintenance cost for each project • Estimated project timelines • Funding sources • Project prioritization City of Tukwila 2025-26 Budget Development 5 01 Consideration Factors Financial Maintenance Continue Public factors feedback Existing feedback CIP Grant Subject Existing Part of availability; matter projects planning and Fund balance; experts in carry over design process Cost versus the field year-to-year benefit; Sunk everyday costs; Avoided costs; Stewardship Effectiveness Mandates irr..tZt Timing/ Scaling Urgency Alignment Meet new Project Level of with City requirements readiness; Service (LOS); mission and or law (comp linkage to Engineer values plans, etc.) other high availability; priority Right project projects at this time City of Tukwila 2025-26 Budget Development 6 Funding of Capital Projects Impact Fees Franchise fees Real Estate Excise Tax Land Sates Concurrency fees Grants Solid Waste Utility Tax Bonds (dedicated revenues) City of Tukwila 2025-26 Budget Development 7 v 00 6 YEAR CAPITAL IMPROVEMENT PLAN City of Tukwila 2025-26 Budget Development Capital Improvement Program Select Financial Policies • Leverage grants, loans or other external financing options • Avoid relying on General Fund support • Non -transportation capital projects and improvements should be funded by operating revenues, grants or bonds • Residential streets with safety issues, high traffic volumes, high pedestrian activity and poor roadway conditions prioritized higher • REET 1 dedicated to park and open space land acquisition & arterial streets; Public Safety Plan debt service • REET 2 dedicated to Bridges & Arterial Streets • Transportation Impact Fees (TIF) to support growth City of Tukwila 2025-26 Budget Development 9 Principles Informing 6 Year CIP • Pay-as-you-go capital improvement program • Maintain what we have approach • "Growth pays for growth" • Prioritize deferred maintenance and safety needs • Complete Public Safety Plan - Address PW Shop facility needs • Update & pursue ADA Transition Plan improvements City of Tukwila 2025-26 Budget Development 10 6 Year CIP Project Type Summary Arterial Streets (104) • City Facilities (303) • Special Projects (000) • Golf Course (411) Parks & Trails (301) fd New Facilties (306) • Residential Streets (103) • Sewer (402) Surface Water (412) • Water (401) 138 Projects Gilliam Creek Fish Barrier Removal Project .4r7 loft, ,Aiaireft; City of Tukwila 2025-26 Budget Development 11 Project Type Summary Not Asset -Producing 13% New Construction/New Equipment 160/0 Annual Program 16% ajor Improvement of Existing Asset 54% DUWAM1SH PARK I Ste Artotysis4 Cordezt City of Tukwila 2025-26 Budget Development 12 Project Information & New Features • Capital Projects Web Pages City of Tukwila 2025-26 Budget Development Beverly Park `i2ath S Boulevard Park Southern Heights 4 aTc Riverton Park Evansville Foster High line Five Corners Skyway [atone - SeaTac Riverton Heights dth Tukwila Fort Earlington Hill 2 YEAR CAPITAL IMPROVEMENT BUDGET C'ty of Tukwila 2025-26 Budget Development Factors Impacting 2025-26 CIP • Significant planning efforts completed in 2023-24- well positioned for local, state and federal grants • Costing and Sourcing Challenges • Cost escalation/inflation • Sourcing lead times for equipment and materials • World Cup 2026- preparations & mitigating construction impacts on visitors • No dedicated funding source for Facilities • Minimizing impacts on the GF- less reliance on the GF for capital and O&M • Increased cross -departmental alignment in managing green infrastructure- integrating programs and services City of Tukwila 2025-26 Budget Development 16 Funding Characterization 0.838M, 1 ■ Grants Utilities Dedicated Revenues/Fund Balance ■ General Fund Transfer City of Tukwila 2025-26 Budget Development 17 v For Every Million Dollars... KUE NO-KOMILL SO.F. PURPOSE S PE.IVMS SKtikt f,ENTS Grants $426,070 Utility Funds S328,222 5 0 1 8 7 5 1 A Art. -ANT .GA Dedicated Revenues General Fund $235,329 $10,379 *Dedicated Revenues include: Lodging Tax, King County Parks Levy, Transportation Impact Fees, Solid Waste Utility Tax, Real Estate Excise Tax (REET), Impact Fees etc. City of Tukwila 2025-26 Budget Development 18 Project Type Summary Arterial Streets (104) • City Facilities (303) • Golf Course (411) „.„. Parks & Trails (301) New Facilities (306) Residential Streets (103) • Sewer (402) 11 Surface Water (412) • Water (401) City of Tukwila 2025-26 Budget Development 19 Grant Administration $34.4M in potential/awarded grants identified in the next biennium 43% of project costs City of Tukwila 2025-26 Budget Development 20 Project Highlights 2025-26 Capital Improvement Program • Ryan Way Infrastructure Improvements • World Cup Preparations • PW Shops Phase 2 • Facility Roof Replacements • 152nd Avenue Improvements • 42nd Ave Bridge Replacement • Boeing Access Road Bridge Deck • Strander Boulevard Extension • City Hall 16300 Building I TCC • Park & Trail Master Plans • FGL Irrigation System Replacement • Tukwila Pond Improvements City of Tukwila 2025-26 Budget Development 21 2025-26 CIP Preview- Key Issues & Projects Issues/Challenges jit Addressing Deficiencies & Deferred Maintenance/Backlog Less reliance on General Fund support for Capital Advancing ADA Projects & Transition Plan Lack of Dedicated funding For Capital Facilities Increased funding for Annual Overlay Program ARPA Funds Expiring at Year -End City of Tukwila 2025-26 Budget Development 22 N W