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Item 4.
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| City Council Work Session | |
| Date: | 11/20/2023 |
| Title: | FY2025-FY2029 Capital Improvement Plan Follow-up |
| Presented by: | Andy Zoeller, Finance Director |
| Department: | Finance |
| Presentation: | Yes |
| Legal Review: | No |
| Project Number: | N/A |
RECOMMENDATION
Staff recommends Council review the FY2025 CIP and make recommendations for modifications before consideration and action at a regular meeting in December.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
City Council received the proposed FY2025-2029 CIP at their 11/6/2023 work session. In the original presentation a significant portion of the Parks, Recreation, and Trails projects were funded through a General Obligation bond. That bond, when presented to voters, was not approved. As such, the FY2025-2029 CIP needs to be adjusted due to lack of available funding. Some decisions need to be made by City Council as to what should be done with these projects, if anything. The City Council Budget and Finance Committee met on November 14, 2023, and recommends the following regarding the Parks, Recreation, and Trails Projects:
Parks Projects (Castle Rock, Centennial, Cottonwood, Coulson, North Park, and Zimmerman Center)
It is recommended that these projects be removed in their entirety from the CIP due to lack of available funds. These projects will only be funded if other funding sources are identified and become available.
Multi-Generational Recreation Center
Much of this project was to be funded with a General Obligation bond ($86 million) with additional funding from South Tax Increment Revenue Bonds ($6.5 million in FY24 & $18.5 million in FY26). With the failure of the bond question, this project will need to be removed in its current status. The question that needs to be answered is what, if anything, will be done in South Billings with the bonding capacity within the South Tax Increment District? How should the FY25 CIP be modified to reflect future plans within the district?
Poly Vista
There have been commitments made to Landon's Legacy Foundation with respect to the City's desire to match their fundraising efforts. It is recommended that the $1.0 million for improvements at Poly Vista remain in the CIP to match the fundraising efforst by Landon's Legacy Foundation.
Westend Reservoir
The Budget and Finance Committee, along with staff, recommend this project be kept in the CIP and placed in FY27 with debt financing as the identified funding source. The City could consider utilizing some of the General Limited Debt Capacity that exists to undertake this or some other smaller project.
Southpark Pool
This project has been identified as one that is in critical need of repair/replacement. The Parks Department is currently undertaking an aquatics facility study to analyze all aquatics facilities in the City, including this pool. Some of the results of this study will include concepts of possible options for replacement. The Budget and Finance Committee, along with staff, are recommending that up to $400K be included in the FY25 CIP for further design work and cost refinement. In addition to this amount, the full current estimate at $10 million is recommended to remain in the CIP with a future debt finance as the identified funding source.
25th Street Bridge Project
This project was planned to be funded with $1.4 million from the Parks, Recreation, and Trails Bond. The City has applied for federal grant funding for this project. It is recommended that this project remain in the CIP, but with modified funding sources showing increased funding from a Federal Grant. If the City is not successful in receiving the Federal Grant, then this project would not occur.
Stagecoach Trail
This project was included in the proposed CIP showing funding of $705k from the bond, $100k from TrailNet, and $4.7 million from Transportation Alternatives Program (TAP). With the failure of the bond, what, if anything, would Council like to do with this project? If the local match is not not identified, the TAP funding will not be available for use on this project. Staff is recommending that this project be consider for inclusion in the FY25 CIP, utilizing General Funds for the local match. There is also a possibility, that if this project remains in the CIP, some of the $705K could be covered by additional funds raised from TrailNet or a State of Montana Trail Stewardship Grant.
Other Trail Projects (5th Ave Corridor, Alkali Creek, Downtown-Coulson Connection, Highway 3 Underpass, N.27th Side Path)
It is recommended that these projects continue to be included in the CIP, but realignment of years will need to occur, due to lack of available funds. These projects will only occur if other funding sources are identified and become available. Because much of these projects rely upon TAP funds, they will need to be realigned to match the anticipated available funds, which may push some of these projects beyond the timeline of the current CIP (2025-2029)
The proposed CIP can be found online at www.billingsmt.gov/cip
Parks Projects (Castle Rock, Centennial, Cottonwood, Coulson, North Park, and Zimmerman Center)
It is recommended that these projects be removed in their entirety from the CIP due to lack of available funds. These projects will only be funded if other funding sources are identified and become available.
Multi-Generational Recreation Center
Much of this project was to be funded with a General Obligation bond ($86 million) with additional funding from South Tax Increment Revenue Bonds ($6.5 million in FY24 & $18.5 million in FY26). With the failure of the bond question, this project will need to be removed in its current status. The question that needs to be answered is what, if anything, will be done in South Billings with the bonding capacity within the South Tax Increment District? How should the FY25 CIP be modified to reflect future plans within the district?
Poly Vista
There have been commitments made to Landon's Legacy Foundation with respect to the City's desire to match their fundraising efforts. It is recommended that the $1.0 million for improvements at Poly Vista remain in the CIP to match the fundraising efforst by Landon's Legacy Foundation.
Westend Reservoir
The Budget and Finance Committee, along with staff, recommend this project be kept in the CIP and placed in FY27 with debt financing as the identified funding source. The City could consider utilizing some of the General Limited Debt Capacity that exists to undertake this or some other smaller project.
Southpark Pool
This project has been identified as one that is in critical need of repair/replacement. The Parks Department is currently undertaking an aquatics facility study to analyze all aquatics facilities in the City, including this pool. Some of the results of this study will include concepts of possible options for replacement. The Budget and Finance Committee, along with staff, are recommending that up to $400K be included in the FY25 CIP for further design work and cost refinement. In addition to this amount, the full current estimate at $10 million is recommended to remain in the CIP with a future debt finance as the identified funding source.
25th Street Bridge Project
This project was planned to be funded with $1.4 million from the Parks, Recreation, and Trails Bond. The City has applied for federal grant funding for this project. It is recommended that this project remain in the CIP, but with modified funding sources showing increased funding from a Federal Grant. If the City is not successful in receiving the Federal Grant, then this project would not occur.
Stagecoach Trail
This project was included in the proposed CIP showing funding of $705k from the bond, $100k from TrailNet, and $4.7 million from Transportation Alternatives Program (TAP). With the failure of the bond, what, if anything, would Council like to do with this project? If the local match is not not identified, the TAP funding will not be available for use on this project. Staff is recommending that this project be consider for inclusion in the FY25 CIP, utilizing General Funds for the local match. There is also a possibility, that if this project remains in the CIP, some of the $705K could be covered by additional funds raised from TrailNet or a State of Montana Trail Stewardship Grant.
Other Trail Projects (5th Ave Corridor, Alkali Creek, Downtown-Coulson Connection, Highway 3 Underpass, N.27th Side Path)
It is recommended that these projects continue to be included in the CIP, but realignment of years will need to occur, due to lack of available funds. These projects will only occur if other funding sources are identified and become available. Because much of these projects rely upon TAP funds, they will need to be realigned to match the anticipated available funds, which may push some of these projects beyond the timeline of the current CIP (2025-2029)
The proposed CIP can be found online at www.billingsmt.gov/cip
ALTERNATIVES
Council may consider recommendations for any and all projects within the CIP, but the majority of the focus should be relating to making decisions regarding those projects that are impacted by the lack of funding from the results of the vote on the Parks and Recreation bond.
FISCAL EFFECTS
There are no immediate fiscal impacts related to the adoption of the CIP. However, decisions made about which projects remain in the CIP will impact future budget and rate decisions to ensure progress is made on project completion.