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Ord 38-2017 9/19/2017 Ordinance No. 38-2017 Ordinance adopting the Five Year Capital Improvement Plan for the Fiscal Year beginning October 1, 2017 and ending September 30, 2022 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: 1. The 2017-18 to 2021-22 Capital Improvement Plan, which includes budget estimates of the revenues and expenses for completing capital projects outlined in this plan, as submitted to the City Council by the City Manager and outlined in the attached Summary of All Capital Project Costs, is hereby adopted and approved. 2. Project costs and associated funding sources listed in the 2017-18 fiscal year of the Five-Year Capital Improvement Plan formulate the approved capital improvement budget. Project costs and associated funding sources for the remaining fiscal years of the Five-Year Capital Improvement Plan are for planning purposes only, and are not approved for funding by Council adoption of this document. PASSED AND APPROVED this the 19t" day of September, 2017. MAYOR ATTEST: City N rk SPAC IT CITY OF WICHITA FALLS INTER-OFFICE MEMORANDUM TO: Honorable Mayor and Members of the City Council FROM: Barron J. Leiker, City Manager DATE: August 9, 2017 SUBJECT: 2018 to 2022 Capital Improvement Plan The attached document outlines the City's Five-Year Capital Improvement Plan (CIP) for the organization- The purpose of a CIP is to focus on the City's capital budgeting needs over a multi-year basis as opposed to one year at a time, and to identify potential funding sources to finance those projects. In this CIP, capital improvements are defined as tangible equipment items, one-time projects, or large maintenance projects that have a cost exceeding $25,000. Although the 2018-2022 CIP is a separate document from the Annual Operating Budget, it will also be considered for adoption by the City Council in September. It should be noted, however, that Council adoption of this plan does not mean that all of the projects listed in the plan are approved for funding. Only the project costs identified in the 2017-18 fiscal year of the CIP formulate the approved budget for capital improvement projects. The projects listed in the 2017-18 fiscal year have approved funding sources and the City is firmly committed to undertaking these projects within this fiscal year. The projects listed in the outlying fiscal years are for financial planning purposes only- The total cost for all of the projects outlined in the Five-Year CIP is $157.5 million. These projects are identified in the following sections in summary form and by specific project. The 2017-18 fiscal year capital improvement budget totals $39.9 million. With the exception of the proposed Full-Service Hotel and Conference Center Project, funding for projects in Year One of the CIP are incorporated into the City's 2017-18 Annual Operating Budget or approved grant programs- The Hotel and Conference Center Project is reflected in the 2017-18 fiscal year capital improvement budget because both the City Council and the 4B Sales Tax Corporation have approved resolutions expressing their intent to issue debt for the Chv's share of this public/private development. No other projects identified in the 2017-18nequire additional debt to be issued. Of the $157.5 million in project costs, estimated funding sources for the Five-Year C|P are identified in the table below. | should also mention that ofthe $157.5 million, approxinnate|y $1B8.2 million in projects have defined funding sources. However, financing the remaining $48.3 million in projects will require additional funding sources that have not been appnoved, such as increased operating revenues, future bond issues, or grants. Many ofthe projects in theVVaher/Sevver System, Parks Department, &4PEC and Streets will require significant bond issues |f they are ho be undertaken during this five-year period. For example, completion of the Circle Trail ($7.7 million) and Trail Spurs ($13 million), Lake Wichita Development near the boat ramp ($23 million), Lake Kiokopoo Pump Station ($1.6 nni8ion), rehabilitation of the "61" Plant at Cypress Water Plant ($2.6 million), Streets and Parks Floods /$18.4 million), and several facility projects at MPEC ($37 million) remain unfunded. What this means is that some of these projects may be deferred until a later point in time or increased water and sewer rates and/or property taxes will be needed for much of the debt service expenses. Staff plans to undertake on effort later this Fall to study these issues in more detail and develop a financing plan for the highest capital improvement priorities of the organization. In summary, this C|P provides o planning boo[ that in helpful in ascertaining financial needs to accomplish capital improvement goals established by the governing body and city management. | hope that it provides the City Council and the citizens with some valuable information on the capital needs of Wichita Falls over the next five years. Respectfully submitted, [)arronJ. Leiker City Manager City of Wichita Falls, Texas Summary of All Capital Project Costs 2018-2022 Projected Finanelal Plan 171,18 18f19 1 Z8, 1 2021 J 2,112,2,,, Total Project Cost: Bldgs and General Facilities $17,961,281 $ 670,000 $ 250,000 $ 385,000 $ 450,000 $ 19,716,281 Technology $ 329,500 $ 1,420,800 $ 938,300 $ 904,500 $ 404,500 $ 3,997,600 Parks and Library $ 1,075000 $ 3,632,191 $ 4,854,019 $11,768„954 $ 6,400,000 $ 27,730,164 Traffic System $ 371,023 $ 340,800 $ 340,800 $ 340,800 $ 340,800 $ 1,734,223 Fleet Replacements $ 3,970,716 $ 4,034,216 $ 4,184,216 $ 4,334,216 $ 4,484,216 $ 21.007,580 Airports $ 803,400 $ 235,000 $ 200,000 $ 200,000 $ 200,000 $ 1,638,400 Transit System $ 1,545 115 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 3.145,115 Street System $ 2,530,000 $ 6,701,000 $ 6,701,000 $ 6,701,000 $ 6,701,000 $ 29,334,000 Water System $ 4,053,710 $ 3,631,000 $ 6,976,000 $ 3,176,000 $ 3,176,000 $ 21,012,710 Wastewater System $ 3,049 000 $ 1,535,000 $ 1,566,000 $ 1,310,000 $ 1,310,000 $ 8,770,000 Sanitation System $ 600,000 $ 730,000 $ 600,000 $ 600,000 $ 600,000 $ 3,130,000 Drainage System $ 3,590 000 $ 4,500,000 $. 273,655 $ 2,193,694 $ 2,000,000 $ 12,557,349 Multi-Purpose Events Center $ $ 3,230,500 $ 490,000 $ $ $ 3,720,500 Total $39,878 745 $31,060,507 $27 773,990 $32,314,164 $26,466,516 $ 157,493,922 Sources of Funding: General Operating Funds $ 3,342 644 $ 3,872,800 $ 3,200,800 $ 3,335,800 $ 3,400,800 $ 17,152,844 Information Tech Operating Funds $ 329,500 $ 1,420,800 $ 938,300 $ 904,500 $ 404,500 $ 3,997,600 Fleet Operating Funds $ 2,114,216 $ 2,234,216 $ 2,384,216 $ 2,534,216 $ 2,684,216 $ 11,951,080 Sanitation Operating Funds $ 1,956 500 $ 2.530.000 $ 2,400,000 $ 2,400,000 $ 2,400,000 $ 11.686,500 Water/Sewer Operating Funds $ 5,402,710 $ 4,511,000 $ 4,542,000 $ 4,286,000 $ 4,286,000 $ 23,027,710 Stormwater Operating Funds $ 4,090,000 $ 4,500.000 $ 273,655 $ 2,193,694 $ 2,000,000 $ 13,057,349 Water Park Operating Funds $ $ $ $ 1,000,000 $ 400,000 $ 1,400,000 Airport Operating Funds $ $ 57,850 $ 50,000 $ 50,000 $ 50,000 $ 207,850 CDBG Funds $ $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 800,000 FAA Grant Funds $ 723,060 $ 177,150 $. 150,000 $ 150,000 $ 150,000 $ 1,350,210 FTA Grant Funds $ 1,545,115 $ 320,000 $ 320,000 $ 320,000 $ 320,000 $ 2,825,115 4B Sales Tax Revenue Bonds $10,000 000 $ $ $ $ $ 10.000,000 Certificates of Obligation $ 7,600,000 $ $ $ $ $ 7,600,000 Texas Water Development Bond Funds $ 1,700 000 $ $... $ $ $ 1.700,000 Private Funds $ 175,000 $ $ $ $ $ 175,000 Cemetery Perpetual Care Funds $ 900,000 $ 350,000 $ $ $ $ 1,250,000 Undetermined Funds $ $10,886,691 $13,315,019 $14,939,954 $10,171,000 $ 49,312,664 Total $39,878745 $31,060,507 $27773,990 $32,314,164 $26,466,516 $ 157,493,922 Combined 5 Year Estimated Funding Sources Cemetery Perpetual Funds Private Funds 0.79% 0.11/a TWDBBonds 1.08% Undetermined Funds 31.31 I Grants 3.161- "" Operating Revenue �� ` � �` 52.37% �r Certificates of Obligation 4 83% 46 Revenue Bands 6.351