AGENDA DATE: 7/1/2015
TITLE:
Title
Approval of the FY 16-20 Capital Improvement Plan (CIP)
BODY
SUBJECT/PROPOSAL/REQUEST: Resolution to approve the FY 16-20 Capital Improvement Plan
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Foley, Letteri, Davis, L. Allshouse, Henry, Harris
PRESENTER (S): Trevor Henry
LEGAL REVIEW: Yes
REVIEWED BY: Thomas C. Foley
BACKGROUND: On May 6, 2015, the Board adopted the FY 16 Budget Resolution approving the FY 16 Operating and Capital Budget, and on June 3, 2015, the Board adopted the Annual Resolution of Appropriations approving the FY 16 Operating and Capital appropriations.
The adopted FY 16 Capital Budget represents an approval of the first year of the Five-Year CIP. Although the FY16-20 CIP has been reviewed as part of the Budget Public Hearing and deliberation process, it has not yet been approved by the Board.
On May 13, the Board held a work session on the Recommended FY 16-20 CIP, and on June 3, the Board held a work session on the County’s Fire Rescue Services, which included information regarding the County-wide combined system, the new Fire Rescue Services Fund, and the proposed Pantops Fire Station project. The funding for the design of the Pantops Fire Station is currently included in the approved FY 16 Capital Budget, however, this funding will not be expended until the Board finalizes its decision regarding the timing of the construction of the Station. The Board will further discuss the construction of the Pantops Fire Station on July 1, 2015. After the Board finalizes a decision on this construction project, staff will request approval of the FY 16-20 CIP.
STRATEGIC PLAN: Mission: To enhance the well-being and quality of life for all citizens through the provision of the highest level of public service consistent with the prudent use of public funds.
DISCUSSION: This executive summary includes two options for the Board’s consideration.
Attachment A - Option 1: If the Board approves the design and construction of the Pantops Fire Station as included in the Recommended FY 16-20 CIP, staff recommends approval of the CIP as outlined in Option 1 and summarized in Attachment A, which reflects the CIP that was recommended to the Board on May 13.
Attachment B - Option 2: If the Board decides to not approve the design and construction of the Pantops Fire Station at this time, staff recommends approval of the CIP as outlined in Option 2 and summarized in Attachment B. Option 2 includes the FY 16-20 CIP as recommended to the Board on May 13, less the costs associated with the design and construction of the Pantops Fire Station.
In addition to the issue regarding the Pantops Fire Rescue Station, the Recommended FY 16-20 CIP, proposed for your consideration at Wednesday’s meeting, directs the additional dedicated revenue resulting from a portion of the Calendar Year 2015 tax rate increase ($1.3 Million in FY 16) to be used as cash equity funding, which would reduce the amount of borrowed proceeds planned for the 2016 bond issuance. Applying these funds in FY16 as cash equity would decrease the amount of future debt service payments required as well as reduce the amount of anticipated tax rate increases that would otherwise be required in future years. For FY16 - FY20, the dedicated revenues would become part of the General Fund transfer to the CIP to be used as cash equity for projects or for the payment of debt service.
BUDGET IMPACT: The FY 16-20 Capital Improvement Plan is a long-term financial plan that addresses the capital needs of the County over the next five-year time period.
RECOMMENDATIONS:
Recommendation
1. Staff recommends that, after the Board makes a determination on the design and construction of the Pantops Fire Station, the Board adopt the Resolution to approve the FY 16-20 CIP as described in either Option 1 (Attachment A) or Option 2 (Attachment B).
If the Board decides to not approve the Pantops Fire Station (Option 2), staff will bring an appropriation request to the Board recommending amendment of the FY 16 Capital Budget to de-appropriate the Pantops Fire Station Design funding that’s currently included in the FY 16 CIP Budget.
2. Staff also recommends the Board amend the FY 16 Capital Budget to direct the $1.3 million to be applied as cash equity for projects, thereby reducing the amount of borrowed proceeds planned for the 2016 bond issuance. For FY17 through FY20, the $1.3 million will become part of the General Fund transfer to CIP to be applied as either additional cash equity for projects or towards the payment of debt service.
ATTACHMENTS:
Attachment A - Resolution to Approve Option 1: FY 16-20 CIP - Pantops Fire Station is funded
Attachment B - Resolution to Approve Option 2: FY 16-20 CIP - Pantops Fire Station is not funded