5.
Council Work Session
- Meeting Date:
- 11/16/2020
- TITLE
- Fiscal Year 2022 - 2026 Capital Improvement Plan
- PRESENTED BY:
- Andy Zoeller
- Department:
- Finance
RECOMMENDATION
Staff recommends that City Council review the FY22 Capital Improvement Plan (CIP), discuss projects, and make recommendations to staff for desired changes to the draft CIP. Recommended modifications to the draft CIP are provided in more detail below. Council action to follow at the regular City Council meeting scheduled for 12/14/2020.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
Each year the City of Billings adopts a 5-year Capital Improvement Plan (CIP). This plan identifies capital projects, prioritizes City facility and infrastructure needs, and helps develop sound financial investments into the future to ensure successful completion of projects. Capital projects included in the plan exceed $25,000 and have a useful life of greater than 1 year. Common repairs and maintenance items are not included, unless the improvements significantly lengthen the useful life of the asset.
The CIP contains information on each project, sets a timeline and priority for each project, and identifies a planned funding source. The projects that are identified as FY22 projects will be incorporated into the next City budget and rate recommendations will be made based upon the adopted CIP.
CIP Development Process
The CIP is developed beginning in July, after the budget is adopted. Each department updates the initial list of projects based upon identified needs in the community and potential funding sources. These projects are presented to advisory boards and TIF boards for recommendations, adjustments, and feedback. The culmination of this input provides the information for the draft CIP to be published in early October. The draft plan is made available to the public online at www.billingsmt.gov/cip. Notification of the published plan was provided to City Council and the public via the weekly administrator report, the City's website, and the City's Facebook pages. The public was invited to provide feedback via online form submission or participate in one of the public meetings presenting the CIP. Two public meetings presenting the CIP were held in late October and feedback was provided from the public. Finally, the draft CIP is presented to City Council in November with Council action occurring in December.
Recommended Modifications to the CIP
As indicated above, the CIP is the culmination of much input from a variety of people, boards, and organizations. Based upon the input provided, the staff is recommending that two adjustments be made to the attached CIP.
The CIP contains information on each project, sets a timeline and priority for each project, and identifies a planned funding source. The projects that are identified as FY22 projects will be incorporated into the next City budget and rate recommendations will be made based upon the adopted CIP.
CIP Development Process
The CIP is developed beginning in July, after the budget is adopted. Each department updates the initial list of projects based upon identified needs in the community and potential funding sources. These projects are presented to advisory boards and TIF boards for recommendations, adjustments, and feedback. The culmination of this input provides the information for the draft CIP to be published in early October. The draft plan is made available to the public online at www.billingsmt.gov/cip. Notification of the published plan was provided to City Council and the public via the weekly administrator report, the City's website, and the City's Facebook pages. The public was invited to provide feedback via online form submission or participate in one of the public meetings presenting the CIP. Two public meetings presenting the CIP were held in late October and feedback was provided from the public. Finally, the draft CIP is presented to City Council in November with Council action occurring in December.
Recommended Modifications to the CIP
As indicated above, the CIP is the culmination of much input from a variety of people, boards, and organizations. Based upon the input provided, the staff is recommending that two adjustments be made to the attached CIP.
South Billings Urban Renewal District Unimproved Street Improvements (Public Works Transportation)
The South Billings Urban Renewal Board recommends that the unimproved streets project in south Billings be fully funded with Tax Increment Revenue. The staff recognizes the need for improvements on these neighborhood streets and supports the project. However, to be more consistent with neighborhood road construction across the city, staff recommends that 50% of the project be funded via individual property assessments and 50% tax increment revenue. Typically property owners are assessed 100% of the costs when the City paves gravel streets. In order to be more equitable with the remainder of the city and allow increment dollars to be used for more work, staff is recommending a 50/50 cost share.
Swords Rimrock Park Road and Parking Lot Repairs (Parks and Recreation)
The draft CIP contains almost $9 million in projects to be funded via Park District 1 Assessments. The estimated funds available for capital projects over the next 5 years is closer to $8 million. The Parks Board made recommendations of projects that did not include $1 million in investments at Poly Vista. However, city staff is aware of the fundraising efforts underway by Landon's Legacy to provide dollars for development of a Miracle League Field and an inclusive playground at Poly Vista Park. Because of the significant effort underway by this organization, staff is recommending that the City Council adopt a CIP that includes funding for Poly Vista Park and delay investments at Swords Rimrock Park Road and Parking Lot Repairs until funding is available.
The South Billings Urban Renewal Board recommends that the unimproved streets project in south Billings be fully funded with Tax Increment Revenue. The staff recognizes the need for improvements on these neighborhood streets and supports the project. However, to be more consistent with neighborhood road construction across the city, staff recommends that 50% of the project be funded via individual property assessments and 50% tax increment revenue. Typically property owners are assessed 100% of the costs when the City paves gravel streets. In order to be more equitable with the remainder of the city and allow increment dollars to be used for more work, staff is recommending a 50/50 cost share.
Swords Rimrock Park Road and Parking Lot Repairs (Parks and Recreation)
The draft CIP contains almost $9 million in projects to be funded via Park District 1 Assessments. The estimated funds available for capital projects over the next 5 years is closer to $8 million. The Parks Board made recommendations of projects that did not include $1 million in investments at Poly Vista. However, city staff is aware of the fundraising efforts underway by Landon's Legacy to provide dollars for development of a Miracle League Field and an inclusive playground at Poly Vista Park. Because of the significant effort underway by this organization, staff is recommending that the City Council adopt a CIP that includes funding for Poly Vista Park and delay investments at Swords Rimrock Park Road and Parking Lot Repairs until funding is available.
ALTERNATIVES
City Council may:
- Approve,
- Modify, or;
- Disapprove
FISCAL EFFECTS
The total investment in projects for FY22-FY26 are estimated to cost $424,378,550. Projects are funded through a variety of sources including user fees and charges, debt financing, special assessments, grants, tax revenues, and state revenues. The projects included for FY22 total $163,069,328.
Total projects investments are planned in the following areas over the next 5 years:
Total projects investments are planned in the following areas over the next 5 years:
| Project Category | |
| Airport Projects | 36,072,222 |
| Facilities Projects | 16,200,000 |
| Fire Projects | 3,000,000 |
| MET Transit Projects | 890,000 |
| Parking Projects | 610,000 |
| Park Projects | 8,519,000 |
| Recreation Projects | 27,350,000 |
| Solid Waste Projects | 10,795,000 |
| Storm Projects | 13,200,000 |
| Transportation Projects | 104,842,328 |
| Utilities Projects | 202,900,000 |
| Total 5 Year CIP | $424,378,550 |