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Regular   2.
Regular City Council Meeting
Meeting Date:
12/09/2019
TITLE
Public Hearing and Resolution Approving the FY 2021 Technology and Equipment Replacement Plans and the FY 2021 - FY 2025 Capital Improvement Plan
PRESENTED BY:
Jennifer Duray
Department:
Public Works
Presentation:
Yes

PROBLEM/ISSUE STATEMENT

The Technology Replacement Plan (TRP), Equipment Replacement Plan (ERP), and Capital Improvement Plan (CIP) are financial tools that indicate the City Council's priorities for the physical assets of the City when the City departments prepare their budgets.  The draft of the Fiscal Year (FY) 2021 TRP, the FY 2021 ERP and the FY 2021-2025 CIP were presented to the City Council at the November 18, 2019 work session.  The CIP was again discussed at the December 2, 2019 work session.  The following are the revisions that have been made to the draft CIP that was presented at the November 18, 2019 Council work session:
  • Public Works Department
    • Amend Pedestrian Crossing of Exposition Drive from FY 2021 to FY 2022.
Staff is required to makes multiple revenue assumptions to develop the draft CIP.  Some of these assumptions are dependent on external factors and other assumptions are contingent on future actions by City Council during the budget process.  The primary assumptions that are dependent on external factors are:
  • Private contributions will be received as expected for the Planning and Parks and Recreation departments' projects in the amounts specified on page 18 of the CIP.
  • Grants will be acquired for the Aviation and Transit, Planning, Parks and Recreation, and Public Works departments in the amounts specified in the CIP on pages 19 and 20.
  • Gas Tax/BARSAA revenues are available as estimated by staff.  Gas tax was estimated at the current allocation amount with no escalation and BARSAA was estimated at the current allocation amount with a 3% escalation.
  • A public safety mill levy will be passed to fund the two new fire stations, non-debt portion of the new cityhall, as well as debt service on the new cityhall.  (This is also dependent on Council action).
  • Water user fees will be received as estimated.  While all user fees are dependent on realizing staff estimates, water user fees fluctuate much more than other user fees due to the seasonality component of water use.
The primary assumptions that are dependent on future City Council action are:
  • Bond sales will be approved for New Cityhall project and the South Billings Aquatic/Recreation Center project, as well as for Public Works water, sidewalk, and Special Improvement District (SID) projects in the amounts specified on page 19 of the CIP.
  • Arterial, Storm, and Street Maintenance District Assessments will be increased annually according the construction cost index.
  • Park District 1 assessments are increased by $733,000 in FY 21, $666,000 in FY 22, and $1 million in fiscal years 23 – 25 and inflationary increases are also approved each year.
The CIP is a funding plan and does not appropriate any budget authority.  Both appropriations (legal authorizations to expend money) and revenue increases are accomplished through the budget process.  Thus, if the FY 2021-2025 CIP is approved as recommended and any of these assumptions are not realized, affected projects will need to be delayed or eliminated.  
 
Copies of the TRP, ERP, and CIP are on file in the City Clerk's Office and are posted on the City's website.  Council is being asked to hold a public hearing and consider final adoption of the FY 2021 TRP, the FY 2021 ERP, and the FY 2021 to FY 2025 CIP.

ALTERNATIVES ANALYZED

Council may:
 
  • Hold a public hearing and adopt the TRP, ERP, and CIP as presented; or,
  • Hold a public hearing and take no action which will not allow the items in the TRP, ERP, and CIP to be included in the City’s budget for FY 2021; or,
  • Hold a public hearing, amend the program(s) to include any desired projects and changes, and adopt the TRP, ERP, and CIP as amended; or,
  • Hold a public hearing and defer action to a later Council meeting.

FINANCIAL IMPACT

The proposed FY 2021 TRP would result in expenditures totaling $1,067,954 of which $496,500 is for capital and $571,454 is considered operations and maintenance expenses.  The proposed FY 2021 ERP contains $6,751,357 for replacements and $983,703 in supplemental budget requests for a total of $7,735,060.  $816,117 of this amount will be funded with grants and the remaining uses City funds.  The FY 2021 budget for the proposed CIP would result in expenditures totaling $116,632,621.  The items in each of the programs are identified and proposed by staff. However, Council amendments and the availability of funds in FY 2021 and future years could affect the actual costs of the items in those programs. 

RECOMMENDATION

Staff recommends that Council approve the FY 2021 TRP, the FY 2021 ERP, and the FY 2021 to FY 2025 CIP. 
 

APPROVED BY CITY ADMINISTRATOR