C APITAL I MPROVEMENTS P LAN C ITY M ANAGER R ECOMMENDATION October 28, 2014 FY 2016 – FY 2020

2 Uses of CIP Funds Property Acquisition Design, Construction Facility Maintenance/Renovation Vehicle/Apparatus Replacement Technology Investment Sources of Funds Debt Cash Capital – Oper. Budget Cash Capital – Reserve Fund Grants Other

3 City Code requirement Systematic evaluation of capital requests Preservation of capital assets Cooperation and coordination between departments Keep the public informed Relate public and private investment Impact on Operating Budget Capital Financing and Debt Management Policies Strategic Initiatives Respond to Federal and State mandates Address health and safety concerns Rationale

Categories Community Development Environmental Community Facilities Transit Equipment Parks and Recreation Public Buildings Schools Streets and Bridges Public Utilities Sewer Rehabilitations Solid Waste Stormwater Drainage 4 General Fund Projects [GF Revenue Supported] Self-Supporting Funds [User-Fee Supported]

City Manager review and revision of Committee Recommended CIP Final City Manager Recommended CIP submitted to City Council by Nov 1 City Council review of Manager Recommended CIP CIP Work Sessions Revision of CIP document City Council Adoption [January] Schedule 5 Phase 1: July/August Phase 2: September/ October Phase 3: October/ November Phase 4: November/ December/ January CIP Committee evaluates and prioritizes requests Committee Recommended CIP prepared and delivered to City Manager CIP Instructions for upcoming 5-year Plan Departments submit CIP requests

CIP Requests FY 2016 – FY

FY 2016 CIP Requests Total of Project Costs [All Funding Sources] 7

Requests 8 Approved CIP CIP Request

figures in millions Requests 9 Approved CIP CIP Request

Affordability 10

Capital Financing and Debt Management Policies Debt Burden Debt Retirement DS Ratio Cash Capital General Obligation Debt / Taxable Assessed Value Goal: Maximum 3% Status: 2.8% Goal: Minimum 30% in five years and 60% in ten years Projection: 43% in 5 years; 73% in ten years Goal: Maximum GF Debt Service of 9.5% of combined City and School Division Annual Revenue Status: 7.9% Goal: Minimum 20% Status: 22.2% 11

Rating Agency Review 12 Standard & Poor’s Strong local economy Strong budgetary flexibility and liquidity Very strong management, with strong policies and practices in place Positive Moody’s Investors Services Sizeable and increasingly diverse tax base Sound financial management Healthy reserve levels AA+ (upgrade from AA)Aa1

General Obligation Debt Service 13 $62M figures in millions

14 $62M figures in millions General Obligation Debt Service $42m 48m 45m 25m 30m Bond Issuance Plan Jul 2011 Sep 2012 May 2014 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

$25M 15 CIP Requests $25M $30M General Fund G.O. Debt 5-Year Total 5-Year Target Unfunded Requests 332M 140M 192M Requests

16 CIP Requests -$49 -$50 -$17 -$34 -$42 $25M $30M General Fund G.O. Debt 5-Year Total 5-Year Target Unfunded Requests 332M 140M 192M Requests

City Manager Recommended Plan 17

Requests Manager Recommend 18 Approved CIP CIP Request City Manager Recommendation

City Manager Recommended CIP General Fund General Obligation Debt 19 figures in millions

20 City Manager Recommended CIP Total of All Funding Sources (includes Grants and Other)

CIP Composition Total of All Funding Sources – includes grants and other 21

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