FY 2017 Recommended Capital Plan David cooke – city manager AUGUST 2, 2016

FY 2017 Capital Planning Process: Why it is Important We are growing and will continue to grow We own more infrastructure which is aging and needs to be maintained

Fort Worth is a Growing City and an Aging City City Limits have expanded each decade and population will continue to grow Year Population Growth 1980 385,164 1990 448,355 16% 2000 534,694 19% 2010 741,206 38% 2015 833,319 12% 2040 (est.) 1,367,965 64%

Fort Worth History of Annexation 1873-2016 1873 2016 City land area (sq. mi.) 4.2 353 Limited Purpose --- 14 City population 3,000 812,238 ETJ land area (sq. mi.) --- 303

Capital Projects Underway Within the next five years the following projects are already approved and in motion: 6th Patrol Division Two New Libraries (Eastside & Far North) Two New Community Centers (Victory Forest and Como) Two New Fire Stations (Spinks Airport and Walsh Ranch) Expansion of Two Existing Community Centers New Parks Updated and Improved Rockwood Golf Course Renovation and Expansion of Silcox Animal Care Center

Retreat Planning Significant Strategic Challenges & Opportunities Leadership & Engagement Effective Resource Management Sustainable Growth Public Infrastructure Transportation Housing Financial Stability City Service Delivery Education & Workforce Development

Retreat Planning Significant Strategic Challenges & Opportunities City Service Delivery Effective Resource Management Sustainable Growth Public Infrastructure Transportation Housing Financial Stability Education & Workforce Development Leadership & Engagement Improve Processes & Efficiency – Foster Innovation Coordinating Funding Streams to Match Strategic Goals Safe Neighborhoods/Neighborhood Health Increase Infrastructure Maintenance & Investment Effective Transportation Modes

FY 2017 Capital Planning Process: Identify the City’s capital and infrastructure needs Forecast resource requirements Project the operating impact of capital projects Align capital planning with the annual budget process Increase transparency of capital & operating spending with the public

FY 2017 Capital Planning Goals Implement 2014 Bond Program Increase Funding for Infrastructure Maintenance & Investment Create Capacity for Strategies to Improve Neighborhood Safety and Neighborhood Vitality Create Capacity for Technology/Automation Improvements to Assist in Process & Efficiency Gains and Foster Innovation Plan for 2018 Bond Program

Capital Planning & Financing GOAL: Increase funding for infrastructure maintenance & investment Current Funding: Function Rate per $100 % of Rate Operations (O&M) 62.84 ₵ 73.5% Debt & Capital 22.66 ₵ 26.5% Total 85.50 ₵ 100.0%

Capital Planning & Financing Maintain Existing Infrastructure New Capacity & Infrastructure Generally, cash-like revenues that are on- going: Gas Well Revenues Pay As You Go Bonds (Debt) Transportation Impact Fees Park Dedication Fees Grants

Current Tax Rate Allocations Overall $0.8550 O&M $0.6759 Operations $0.6284 Capital $0.0475 Debt $0.1791

FY 2017 Recommended Property Tax Rate Allocations Overall $0.8350 O&M $0.6615 Operations $0.5965 Capital $0.0650 Debt $0.1735

FY 2017 Recommended Property Tax Rate Allocations Function FY 2016 Current FY 2017 Recommended Change Operations (O&M) 62.84 ₵ 59.65 ₵ -3.19 ₵ PAYGO Capital 4.75 ₵ 6.50 ₵ 1.75 ₵ Debt 17.91 ₵ 17.35 ₵ -0.56 ₵ Total 85.50 ₵ 83.50 ₵ -2.00 ₵

FY 2017 Capital Improvement Plan What it is… Projects/capital spending programs are sorted into: General CIP Aviation CIP Public Events CIP Solid Waste CIP Stormwater CIP Water & Sewer CIP Each project/program is funded by various revenue sources within each CIP Each CIP will show the appropriations for each project/program

FY 2017 Capital Plan Capital Plan FY 2017 Recommended General CIP $99,592,593 Aviation CIP $3,759,230 Public Events CIP $204,232,950 Solid Waste CIP $3,431,000 Environmental Management CIP $2,163,000 Stormwater CIP $13,603,400 Water CIP $91,908,000 Total $418,690,173

Recommended FY 2017 General CIP Appropriation Sources FY 2017 Recommended Appropriating 2014 Bond Projects $54,406,514 Appropriating PAYG – Cash: 6.50 cents $33,286,079 Appropriating Unallocated Gas Well Revenues and Gas Well Revenues from Total and Chesapeake Settlement $11,900,000 Total $99,592,593

Recommended FY 2017 General CIP 2014 BONDS FY 2017 Recommended Streets and Bridges $43,883,443 Parks and Recreation $1,450,000 Libraries $2,947,000 Fire Stations $5,826,071 Animal Care and Control $300,000 Total $54,406,514

Recommended FY 2017 General CIP PAYG (Cash) FY 2017 Recommended Streets/Bridges/Transportation – Maintenance and Improvements $24,041,468 Facilities Maintenance and Repair $3,194,234 Automation / Technology $2,560,468 Neighborhood Improvements Community Partnerships / Reserve for Future Projects $929,441 Total $33,286,079

Recommended FY 2017 General CIP GAS WELL REVENUES FY 2017 Recommended Facility Renovations and Improvements: Community Centers and Libraries $900,000 East Side Library $1,400,000 New Trails and Greenways $1,000,000 Sidewalks: Repairs and New Construction $2,000,000 Speed Control Signs $200,000 Customer Relationship Management (CRM) Software Technology $5,400,000 Total $11,900,000

FY 2017 Recommended Property Tax Rate Overall Property Tax Rate Reduction (85.5₵ to 83.5₵) Increase Allocation of Tax Rate to Capital Investment & Maintenance

FY 2017 Capital Planning Goals Implement 2014 Bond Program Increase Funding for Infrastructure Maintenance & Investment Create Capacity for Strategies to Improve Neighborhood Safety and Neighborhood Vitality Create Capacity for Technology/Automation Improvements to Assist in Process & Efficiency Gains and Foster Innovation Plan for 2018 Bond Program

City CIP Planning for 2018 Bond Program Department Project Development Apr – Sep 2016 Prioritize Projects Oct – Nov 2016 City Manager Review of Projects Nov – Dec 2016 Present Bond Schedule/List to City Council December 2016 Individual City Council Meetings/Review Jan – Feb 2017 City Council Workshop on Preliminary Project List April 2017 City Council Approval of Projects for Public Presentation May 2017 Public Meetings Jun – Sep 2017 Final Review and Approval by City Council Oct-Dec 2017 Council Actions to Set May Election Jan-Feb 2018 Public Education Campaign on Bond Election Proposals Apr – May 2018

Next Steps Adopt Capital Project Appropriation Ordinance on September 13, 2016 (Anticipated) Continue to Refine and Update Long-Term Capital and Debt Financial Model and 5-year Capital Improvement Plans Monitor Projects and Report on Status Deliver 2014 Bond Program Continue planning for 2018 Bond Program

Recommended FY 17 Capital Plan Questions/Comments/Conclusion